Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| In the third quarter, we continued to deliver solid results with our focus on high-quality revenues |
| Generating solid year-over-year growth with our total net revenues increasing by 4% to RMB1.89 billion and adjusted EBITDA growing by 11.6% to RMB507.9 million |
| As the industry leading player, we are seeing increasing demand for premium IDC services, and we remain a clear choice for customers to ride the wave of digital transformation |
| Our diverse IDC services offerings include a solid IT infrastructure, premium operations and management services and impressive cost-efficient solutions making VNET an outstanding choice for potential customers looking for a trusted partner to support their current and future business development needs |
| This customer reaffirms our compelling value proposition and advanced interconnectivity services capabilities |
| We won the contract based on our flexible computing power resources that can rapidly meet these customers specific demand during peak business hours, underpinning the rapid growth of its metaverse business |
| In summary, our robust third quarter results showcase our ability to effectively address both wholesale and retail business IDC needs backed by timely and strong execution |
| As we mentioned on our last call, in August, we won an extended order of 45 megawatts from the existing internet giant customer, which speaks to our superior wholesale service offerings deal a major competitive landscape |
| Moreover, our company deployment execution has been stellar |
| During the third quarter, we successfully deliver over 2,600 high-power density cabinets in the Yangtze River-Delta region to one wholesale customer and approx 800 high-power density companies in the northern region of China to another wholesale customer |
| Our solid growth in the third quarter reflects our continued focus on high-quality business opportunities |
| Our wholesale data center continues to meet the increasing AI demand, driven by our customer traffic-growing business equipped with high-power density capabilities we sell empowering large language model training and deployment for Internet platforms |
| This execution is a testament to our commitment to timely delivery and top-notch quality, which has earned us a reputation for reliability and customer satisfaction |
| This capability is well supported by our engineering experience and expertise as well as our existing high-power density cabinets which allows us to probably address growing diverse AI demand from retail customers |
| Also, we also try our best to present OpEx management and all positive progress in other funding rising, just you say, including the asset sell minority share and also the REIT |
| It's on other way, this is the signal is that EBIDTA margin and EBITDA is more positive than before |
| We have also attracted a leading Chinese EV automaker for our interconnectivity services throughout our robust data center and network resources nationwide |
| During the third quarter, our full stack one-stop Bare-Metal-As-a-Service solution continued to gain new customers, one of which is a pioneering Unicorn in the VR industry |
| Our net revenue increased by 4% to RMB1.89 billion from the same period last year, mainly driven by the continued growth of our mine [ph] business |
| First, AI is driving increasing demand for computing power and IDC services |
| As a dedicated industry leader, we look forward to meeting this newest wave of demand driven by AI application and our mission, our long-term growth potential |
| The main reason is that the demand for wholesale data center business is growing faster |
| Our core competencies, spending resources and execution capabilities enable us to support our customers involving and sustained business development needs |
| Particularly from existing customers in the industries such as local services, health care, and we are building on this momentum, we expect to attract more retail customers from a wider range of industries such as autonomous driving and AI solutions |
| Our retail customers' AI-driven demand continue to rise |
| Very clearly, the booming market and promote our profit margin |
| Also continue to activity engaging with our CB creditors to find the best way forward |
| I'd also like to highlight our distinctive proficiency in designing and implementing our equipment upgrades for our cabinets to meet existing customer’s high-power density computing needs |
| Cabinet deliveries are progressing smoothly, by the end of the quarter, we had grown our total cabinets under management to approximately 88,900 compared with approximately 82,660 a year ago |
| As always, we remain committed to create sustainable growth for all our stakeholders |
| Statement |
|---|
| So this is the main reason, our reduced the revenue guidance |
| Gross profit was RMB306.5 million in the third quarter of 2023, representing a decrease of 3.2% from the same period of 2022 |
| So I think this is not our business, it's the speed of our business is slowed down |
| I saw a quarter-on-quarter decline on both utilization rate and retail MRR |
| So you can see if you compare the revenue and EBITDA guidance the EBITDA guidance only decreased or very minor around 2% |
| This impact EBITDA is very minor |
| Yang Liu May I follow up with another question on the business update? For the downward revision of the revenue and the EBITDA guidance, where do you see more business come from? Is it from the traditional retail business or more from the wholesale business? Thank you |
| Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations |
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