VNET Group, Inc. · NASDAQ:VNET
VNET — Q4 2024 Earnings Presentation
34 slides from VNET's earnings presentation, Mar 12, 2025
Slide 1: VNET Group, Inc. Earnings Presentation for 4Q24 and FY2024
VNET Group, Inc. Earnings Presentation for 4Q24 and FY2024 March 12, 2025
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by VNET Group, Inc. (the “Company”) solely for informational purposes and has not been independently verified. No representations, warranties or undertakings, express or implied, are made by the Company or any of its affiliates, advisers or representati
Slide 3: Ju Ma, Rotating President of VNET
Ju Ma Rotating President of VNET
Slide 4: 4Q24 and FY2024 Earnings Highlights
4Q24 and FY2024 Earnings Highlights ⚫ Wholesale IDC Business: capacity in service increased to 486MW (+127MW QoQ), capacity utilized increased to 353MW IDC Business Growth (+73MW QoQ) Remained Strong ⚫ Retail IDC Business: remained stable, self-built cabinets increased by 189R quarter over quarter ⚫
Slide 5: 4Q24 and FY2024 IDC Business Highlights
4Q24 and FY2024 IDC Business Highlights Total Wholesale Capacity in Service & Capacity Utilized Total Retail Capacity in Service (MW) (R) +134MW YoY +212R YoY +73MW QoQ +189R QoQ +153MW YoY +127MW QoQ 52,233 52,068 52,177 52,250 52,107 48,493 48,503 48,516 48,516 48,705 486 358 353 332 332 332 279 2
Slide 6: 4Q24 and FY2024 Financial Highlights
4Q24 and FY2024 Financial Highlights Total Revenue and Wholesale IDC Revenue Full Year Total Revenue and Wholesale IDC Revenue (RMB MM) (RMB MM) +125.4% YoY +90.4% YoY +27.2% QoQ +11.4% YoY +18.3% YoY 8,259 +5.9% QoQ 7,412 2,246 1,994 2,121 1,898 1,898 523 665 1,951 295 361 402 1,025 4Q23 1Q24 2Q24
Slide 7: Largest IDC Customer Order Wins
Largest IDC Customer Order Wins Capacity Contracted Signing Time of Region IDC Code Customer Sector Project Type / Under MoU (MW) Contract / MoU Yangtze River Delta E-JS Campus 03 32 4Q24 Internet Wholesale Greater Bay Area GZ03 1.5 4Q24 Intelligent Driving Retail N-OR07 & 08 100 4Q24 Internet Whole
Slide 8: Guidance
Guidance RMB MM FY2024 Actual FY2025 Guidance Implied YoY Revenues 8,259 9,100 - 9,300 10% - 13% Adjusted EBITDA(1) 2,342 (2) 2,700 - 2,760 15% - 18% Capex 4,982 10,000 - 12,000 101% - 141% Delivery Plan (MW) 153 400 - 450 161% - 194% Source: Company data Notes: (1) Adjusted EBITDA is calculated as
Slide 9: DeepSeek Accelerates IDC Business Growth
DeepSeek Accelerates IDC Business Growth Intensifying LLM Competition and Surging Inference Demand are Driving Enthusiasm for AI Investment from Large CSPs to Small and Medium Enterprises Facilitate the growth of Retail IDC Business Beneficial for Wholesale IDC Business ✓ Rising demand from small- a
Slide 10: Data Centers by Region
Data Centers by Region Wholesale Capacity In Service (486MW) Region % Yangtze River Delta 54.9% Greater Beijing Area 45.1% Total 100.0% Wholesale Capacity Under Construction (406MW) Ulanqab Region % BTH Greater Beijing Yangtze River Delta 11.1% Greater Beijing Area 88.9% Area Total 100.0% Xi‘an Whol
Slide 11: Wholesale Data Centers at a Glance - New Growth Driver
Wholesale Data Centers at a Glance - New Growth Driver Total Capacity in Service & Capacity Utilized (MW) Utilization Rate (1) 486 75.9% 78.0% 71.0% 72.6% 65.8% 358 332 332 332 12/31/2023 03/31/2024 06/30/2024 09/30/2024 12/31/2024 353 Mature & Ramp-up Capacity Contribution & Utilization Rate 279 25
Slide 12: Wholesale Data Centers – Backlog Growth
Wholesale Data Centers – Backlog Growth (MW) 1,500 +44 341 Company’s Expansion Pipeline to Support Long-term Growth Held for Future Capacity (Long-term) 1,139 1,145 Held for Future Capacity 1,028 Robust Infrastructure and Operational Capabilities Enabling +75 267 (Short-term) -111 297 Rapid Capacity
Slide 13: Retail Data Centers at a Glance - Solid Foundation
Retail Data Centers at a Glance - Solid Foundation Total Capacity in Service (Cabinet) Utilization Rate (1) 52,233 52,068 52,177 52,250 52,107 3,740 3,565 3,661 3,734 3,402 64.0% 64.0% 63.7% 63.1% 63.5% 48,493 48,503 48,516 48,516 48,705 12/31/2023 03/31/2024 06/30/2024 09/30/2024 12/31/2024 12/31/2
Slide 14: Resource Pipeline for the Next 12 Months
Resource Pipeline for the Next 12 Months FY24 Capacity 1H25 Capacity 2H25 Capacity Next 12M Total Region IDC Code Tenure Status (MW) (MW) (MW) (MW) E-JS Campus 02 D Owned In Service 26 - - - E-JS Campus 02 E Owned In Service 64 - - - Yangtze River Delta E-JS Campus 03 Owned Under Construction - 32 -
Slide 15: Qiyu Wang, Chief Financial Officer of VNET
Qiyu Wang Chief Financial Officer of VNET
Slide 16: 4Q24 and FY2024 Financial Highlights
4Q24 and FY2024 Financial Highlights RMB MM 4Q23 3Q24 4Q24 YoY QoQ FY2023 FY2024 YoY Net revenues 1,898 2,121 2,246 18.3% 5.9% 7,413 8,259 11.4% Gross profit 291 492 505 73.6% 2.7% 1,292 1,832 41.8% Adjusted cash gross profit (1) 742 861 924 24.6% 7.3% 2,977 3,337 12.1% Adjusted cash gross margin 39
Slide 17: Total Net Revenues Breakdown
Total Net Revenues Breakdown (RMB MM) 2,246 2,121 1,994 1,898 1,898 616 622 627 628 613 965 975 965 975 924 665 523 295 361 402 4Q23 1Q24 2Q24 3Q24 4Q24 Wholesale IDC Business (1) Retail IDC Business (1) Non-IDC Business (2) Source: Company data as of December 31, 2024 Notes: (1) IDC business refers
Slide 18: Healthy Margins through Efficiency Enhancement
Healthy Margins through Efficiency Enhancement Adjusted Cash Gross Profit & Margin (1) Adjusted EBITDA & Margin (2) (RMB MM) (RMB MM) 39.1% 40.3% 39.5% 40.6% 41.1% 23.2% 28.4% 28.8% 28.0% 32.1% 721 924 861 574 595 540 766 787 440 742 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q24 3Q24 4Q24 Adjusted Cash Gr
Slide 19: Strong Liquidity Position
Strong Liquidity Position Net Operating Cash Flow Cash Position (1) (RMB MM) (RMB MM) 5,456 2,440 357 US$600 million Credit line availability: 2,063 2,005 Convertible Senior RMB 4,009 MM unused Notes Repurchase 2,989 1,388 5,099 2,081 (2) 1,708 2,989 (2) 2,081 1,708 ~1,800 2021 2022 2023 2024 12/31/
Slide 20: Well Laddered Debt Profile
Well Laddered Debt Profile Total Debt & Net Debt / TTM Adj. EBITDA (1) Debt Breakdown by Maturity (RMB MM) 5,896 6.4x 1,817 5.9x 5.5x 4.6x 3,325 3.9x 5.3x 4.9x 2,408 1,898 4.5x 3.9x 294 1,896 4,079 285 1,316 272 268 2,115 1.8x 1,611 1,155 1,048 2020 2021 2022 2023 2024 2025 end 2026 end 2027 end 202
Slide 21: Capex Paid by Year
Capex Paid by Year Capital Expenditure (1) Highlights (RMB MM) ◼ Within the RMB4.98 billion capex for 2024, majority allocated to the expansion of our wholesale IDC business. 4,982 4,060 3,991 3,578 3,352 ◼ To support our strong delivery plan for 2025, which is expected to be three times greater tha
Slide 22: ESG Initiatives – Commitment to Sustainability
ESG Initiatives – Commitment to Sustainability Commitment to achieve both targets of operational carbon neutrality and 100% renewable energy usage by 2030 Received A rating by MSCI, representing the highest ranking to-date in China’s Internet Services & Infrastructure industry for the third consecut
Slide 23: Appendix
UESIELS; VNET Appendix
Slide 24: Differentiated Business Model with Comprehensive Offerings
Differentiated Business Model with Comprehensive Offerings Managed Hosting Services Cloud Services VPN Services (1) (IDC) • Co-location • Multi-protocol Label Switching (MPLS) & • Interconnectivity Software-defined Wide Area Network (SD-WAN) • Hybrid IT Services • Internet Access & Network Security
Slide 25: Dual-Core Growth Strategy of IDC Business
Dual-Core Growth Strategy of IDC Business Wholesale Retail Hyperscale IDC Interconnectivity Services Retail Colocation Full-stack Services Targeting hyperscalers which require huge amount of space and power to Covering large and loyalty customer base across verticals including: financial services, s
Slide 26: Wholesale Capacity in Service – Yangtze River Delta
Wholesale Capacity in Service – Yangtze River Delta Capacity in Service Capacity Utilized Total Capacity Region IDC Code Tenure Utilization Rate (2) Commitment Rate (3) (MW) (MW) Committed (1) (MW) E-JS Campus 01 Phase 1 Owned 28 26 28 91.4% 99.7% E-JS Campus 01 Phase 2 Owned 16 8 12 48.8% 75.2% E-J
Slide 27: Wholesale Capacity in Service – Greater Beijing Area
Wholesale Capacity in Service – Greater Beijing Area Capacity in Service Capacity Utilized Total Capacity Region IDC Code Tenure Utilization Rate (2) Commitment Rate (3) (MW) (MW) Committed (1) (MW) BJ15 Owned 9 3 7 27.2% 77.7% N-HB02 Phase 1 Owned 28 28 28 98.9% 99.3% N-HB Campus 01 B Owned 36 5 36
Slide 28: Wholesale Capacity Under Construction & Held for Future Development
Wholesale Capacity Under Construction & Held for Future Development Under Construction Capacity Under Total Capacity Region IDC Code Tenure Pre-commitment rate (2) Ready for Service Construction (MW) Pre-committed (MW) (1) E-JS Campus 03 Owned 32 32 (1) 100.0% 1H25 Yangtze River Delta (2) E-JS04 Lea
Slide 29: Key P&L Items
Key P&L Items Three months ended Twelve months ended Amount in thousands December 31, 2023 September 30, 2024 December 31, 2024 December 31, 2023 December 31, 2024 RMB RMB RMB US$ RMB RMB US$ Net revenues 1,898,480 2,120,794 2,246,389 307,754 7,412,930 8,259,069 1,131,488 Cost of revenues (1,607,602
Slide 30: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Three months ended Twelve months ended Amount in thousands December 31, 2023 September 30, 2024 December 31, 2024 December 31, 2023 December 31, 2024 RMB RMB RMB US$ RMB RMB US$ Gross profit 290,878 491,683 504,856 69,165 1,292,485 1,832,155 251,004 Plus: depreciatio
Slide 31: Key Balance Sheet Items
Key Balance Sheet Items As of As of Amount in thousands December 31, 2023 December 31, 2024 RMB RMB US$ Cash, cash equivalents and Restricted cash 5,098,987 2,081,073 285,106 Accounts and notes receivable, net 1,715,975 1,655,984 226,869 Property and equipment, net 13,024,393 17,216,635 2,358,669 La
Slide 32: Key Cash Flow Items
Key Cash Flow Items Three months ended Amount in thousands December 31, 2023 September 30, 2024 December 31, 2024 RMB RMB RMB US$ Net cash generated from operating activities 730,680 760,366 572,236 78,397 Net cash used in investing activities (1,401,935) (1,336,510) (1,376,160) (188,533) Net cash (
Slide 33: Definitions
Definitions Term Definition IDC business refers to managed hosting services, consisting of the wholesale IDC business and the retail IDC business. Beginning in the first quarter of 2024, our IDC business was IDC Business subdivided into wholesale IDC business and retail IDC business according to the
Slide 34: THANKS!
http://ir.vnet.com THANKS! Email: ir@vnet.com IR Contact: Xinyuan Liu