3Q23 adjusted EBITDA grew 11%, in line; management expects adjusted EBITDA to grow by 9% in FY23
- Revenue increased 18% y-o-y to US$1.4bn in 3Q23, with rental rate increased by 7% on a cash basis
- Adjusted EBITDA increased 11% y-o-y to US$686m, in line with market expectations
- Management maintained its FY23 adjusted EBITDA target, with mid-point implying 9% y-o-y growth
3Q23 adjusted EBITDA increased 11% y-o-y, in line. Revenue increased 18% y-o-y to US$1.4bn in 3Q23, in line with market expectations. Customer churn remained low at 1.1%, and rental rate increased by 7% on a cash basis. Adjusted EBITDA increased 11% y-o-y to US$686m, also in line with consensus estimates. The company continued to demonstrate its ability to acquire new customers, adding 117 new customers during 3Q23 and maintaining its streak of acquiring more than 100 new logos per quarter for 3.5 years.
Management reiterates the FY23 adjusted EBITDA guidance. The company expects its FY23 adjusted EBITDA to grow by 9% y-o-y to c.US$2,700m. Management also expects pricing environment to further improve, as they expect rental renewal rate to increase by at least 5% (from at least 4% mentioned in previous guidance). We maintain a positive outlook on the company’s growth, as it is engaged in 49 projects across 26 global metropolitan areas, with a c.59% pre-lease rate.