The following is a summary of the VNET Group, Inc. (VNET) Q4 2023 Earnings Call Transcript:
Financial Performance:
VNET Group reported Q4 net revenues of RMB 1.9 billion, signifying a 0.9% YoY increase. Full-year net revenues also saw growth with a 4.9% increase, reaching RMB 7.41 billion.
The company's adjusted EBITDA for Q4 was RMB 440.2 million reflecting a 3.8% YoY rise, while the full year expanded by 8.9% to RMB 2.04 billion.
VNET ended 2023 with RMB 5.46 billion held in cash and cash equivalents, restricted cash, and short-term investments.
The group saw a 70% YoY increase in their wholesale business revenue accounting for 20% of their IDC revenue.
Business Progress:
In keeping with VNET's dual-core growth agenda, the company built an additional 8,321 cabinets throughout the year, which increased the total cabinets under management to 93,600.
They reported a jump in their overall utilization rate, to 59% up from 55% YoY, along with an increase in utilized cabinets in Q4 by 2,827.
VNET Group secured a 50 megawatts project with a leading cloud service provider, planned to be completed in 2024.
The company expects to experience growing AI-driven demand from various sectors as it aims for renewable energy-driven growth in partnership with Shandong Hi-Speed Holdings Group.
VNET plans to devote all its high power density infrastructure in 2024 to their wholesale customer base.
More details: 21Vianet IR
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