21Vianet falls 7.2% on weak Q4 guidance

|About: 21Vianet Group (VNET)|By:, SA News Editor

Shares of 21Vianet (VNETfall 7.2% AH on a bottom-line Q3 beat after the company guided for Q4 revenue of $88M-$90M, missing analyst expectations of $93.9M. EBITDA is seen at $16M-$17M.

Revenue growth on a renminbi basis surged 30.9% Y/Y to RMB514M ($84M) on the back of an increased number of cabinets under management and growth in CDN services. Gross profit grew 20.9% to RMB133.4M, representing a fall in margin of 1.9% Y/Y to 26%.

Opex climbed more slowly than revenue, 15.3% Y/Y, to RMB118M,  driven primarily by an expansion in Sales & Marketing expense (+34.6% Y/Y) to RMB38.9M.

PR, conference call at 8pm ET