VNET Group, Inc. (VNET) Q2 2023 Earnings Call Transcript

VNET Group, Inc. (NASDAQ:VNET) Q2 2023 Results Conference Call August 23, 2023 9:00 PM ET

Company Participants

Xinyuan Liu - IRO

Jeff Dong - CEO

Qiyu Wang - CFO

Tim Chen - CSO

Conference Call Participants

Edison Lee - Jefferies

Sara Wang - UBS

Timothy Zhao - Goldman Sachs

Operator

Hello, ladies and gentlemen. Thank you for standing by for the Second Quarter 2023 Earnings Conference Call from VNET Group, Inc. [Operator Instructions]. Participants from our management include Mr. Jeff Dong, Chief Executive Officer; Mr. Qiyu Wang, Chief Financial Officer; Mr. Tim Chen, Chief Strategy Officer; and Ms. Xinyuan Liu, Investor Relations Director of the company. Please note that today's conference call is being recorded.

I will now turn the call over to the first speaker today, Ms. Xinyuan Liu. Please go ahead.

Xinyuan Liu

Thank you, operator. Hello, everyone, and welcome to our second quarter 2023 earnings conference call. Our earnings release was distributed earlier today, and you can find a copy on our site as well as on Newswire services.

Please note that the discussion today will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. For detailed discussions of these risks and uncertainties, please refer to our latest annual report and other documents filed with the SEC. VNET does not undertake any obligations to update any forward-looking statements, except as required under applicable laws.

Please also note that VNET's earnings press release and this conference call include the disclosure of unaudited GAAP financial measures as well as unaudited non-GAAP financial matters. VNET's earnings press release contains a reconciliation of this audited non-GAAP measures to the unaudited GAAP measures. As a reminder, this conference is being recorded. In addition, a webcast of this conference call will also be available on our website at ir.vnet.com.

I will now turn the call over to our CEO, Jeff.

Jeff Dong

Thank you, Xinyuan. Good morning, and good evening, everyone. Thank you for joining our call today. I will start with an overview of our second quarter results. After that, I will turn the call to Tim, our CSO; and Qiyu, our CFO, who will discuss our financial results and outlook in more detail. We are pleased to report a solid second quarter with utilized covenants growing by 2,000 and overall utilization rate, further improving to 59%. Total covenants under management reached approximately 86,900 by the end of the quarter compared with approx 80,800 a year ago.