VNET Group, Inc. Sponsored ADR (VNET.US) Q4 revenue increased by 18.3% year-on-year, exceeding expectations for the full year performance.

Before the U.S. stock market opened on Wednesday, VNET Group, Inc. Sponsored ADR (VNET.US) announced its performance for the fourth quarter of 2024. The financial report shows that VNET Group, Inc. Sponsored ADRQ4 revenue was 2.25 billion yuan, an increase of 18.3% year-on-year; net profit was 3.5 million yuan, turning from a loss to a profit. VNET Group, Inc. Sponsored ADRQ4 adjusted EBITDA was 721.3 million yuan, an increase of 63.8% year-on-year. The adjusted EBITDA profit margin was 32.1%, compared to 23.2% in the same period in 2023. For the full year of 2024, the company's revenue was 8.26 billion yuan, an increase of 11.4% year-on-year; net profit was 248 million yuan, turning from a loss to a profit; diluted earnings per share were 0.02 yuan, and earnings per ADS were 0.12 yuan. The company's CFO said, "Our full-year performance in 2024 exceeded expectations, with a strong performance in the fourth quarter. Wholesale business income remains the main growth driver, reaching a historical high of 665.2 million yuan in the fourth quarter, an increase of 125.4% year-on-year." As of December 31, 2024, the company's total cash and cash equivalents and restricted cash amounted to 2.08 billion yuan. Performance guidance Looking ahead, VNET Group, Inc. Sponsored ADR expects revenue for 2025 to be between 9.1 billion and 9.3 billion yuan, an increase of 10% to 13% year-on-year; adjusted EBITDA is expected to be between 2.7 billion and 2.76 billion yuan, an increase of 11% to 14% year-on-year. If the disposal income of 87.7 million yuan from the E-JS02 data center in 2024 is excluded from the calculation of adjusted EBITDA, the year-on-year growth will reach 15% to 18%.