00:00Day One Data Centers has filed for a U.S. IPO and applied to list on NASDAQ under DODC.
00:07Open its F1 and the same six months show two net losses, $77.2 million and $81.9 million.
00:17Both are correct.
00:19The answer is in the line labels.
00:21Start with consolidated net loss, $77.2 million for the six months ended June 30, 2026.
00:32Next is profit attributable to non-controlling interests, $4.7 million for that period,
00:40belonging to outside partners in subsidiaries Day One Consolidates but does not wholly own.
00:45Then comes loss attributable to ordinary shareholders, $81.9 million for the same period.
00:54The outsider's profit is removed from the group result, making the shareholders' loss larger.
01:00$77.2 million plus $4.7 million makes $81.9 million.
01:08The reading move is simple.
01:10Label first, figure second.
01:13This is an F1 because Day One qualifies as a foreign private issuer under eligibility rules.
01:21Cayman Incorporation alone does not confer that status.
01:25The cover separately claims emerging growth company status.
01:29Its statements use U.S. GAAP.
01:32Later, it reports annually on 20F and furnishes interim disclosure on 6K.
01:38Instead of a domestic filer's quarterly 10Q and current report 8K.
01:44The security matters too.
01:46An ADS represents ordinary shares in the Cayman holding company, not operating subsidiary shares.
01:53First, identify the form, then the reporting regime and security.
01:58First, describe the product.
02:00Across markets outside the United States and China, especially Singapore, Johor in Malaysia, and Batam in Indonesia,
02:09Day One secures powered land and a grid connection.
02:13It builds the shell and cooling, then sells the resulting IT power capacity under long contracts.
02:19Customers pay for available capacity, while power costs are generally passed through based on actual consumption.
02:28That physical chain gives every later capacity and revenue labels something concrete to measure.
02:35Now define Day One's vocabulary as of September 20, 2026.
02:41Bookings are 2,281 megawatts committed under binding contracts.
02:48Billings are the income-generating 953 megawatts.
02:52Backlog is the 1,328 not-yet-income-generating.
02:58Together, they equal bookings.
03:01Capacity in service is separate.
03:04962 megawatts of ready physical plant.
03:07It exceeds billings, so it cannot be another funnel stage.
03:12The company's utilization rate, 99.1%, divides those capacity measures, not revenue.
03:20A significant majority of contracts run 10 to 15 years, with five-year renewal options.
03:26Every contract permits early termination for specified costs and penalties.
03:31After a certain number of years, those are usually below foregone revenue.
03:37Contracted does not mean guaranteed revenue.
03:41Read growth first.
03:43Revenue was $512 million for the six months ended June 30, 2026,
03:49versus $152 million for the same period of 2025.
03:56About 238% growth, by our calculation.
03:59Then distinguish the consolidated loss from the larger loss, attributable to ordinary shareholders.
04:08Finally, Day One's company-defined, non-GAAP adjusted EBITDA, was about $206 million for the first half of 2026,
04:18with a 40.2% margin.
04:21Its reconciliation adds back several items.
04:23The largest was $142 million for the first half of the year.
04:29The cost of revenue-producing buildings and equipment spread across their useful lives.
04:35The adjusted measure changes the lens, not the underlying costs.
04:39costs. Put four labels over the six months ended June 30, 2026. Revenue was $512 million.
04:49Company-defined adjusted EBITDA was about $206 million. Net cash from operating activities
04:57was $14 million. Under investing, payments and prepayments for purchase of property and equipment,
05:05land use rights and deposits related to construction, were about $3.1 billion.
05:12Their gap is the finding. For bookings measured September 20, the company estimates about $11.4
05:20billion to complete them after deducting spending through June 30. The filing says the company
05:27believes available capital resources will suffice. Read that belief beside the operating cash line
05:34while keeping each definition intact. Next ask where the money came from. Net cash from financing
05:42activities was about $4.5 billion for the six months ended June 30, 2026. Within it, net series C
05:52convertible preference share proceeds were about $3.2 billion, while net borrowings contributed about
05:59$1.6 billion. Total borrowings stood at about $4.4 billion as of June 30, 2026. Long-term borrowings
06:10carried a 6.7% weighted average rate. The remaining build is funded through those same two channels,
06:17equity and debt, rather than operating cash. Use one denominator, then change the cut.
06:24For the six months ended June 30, 2026, the largest customer supplied 69.2% of revenue, while Malaysia
06:34supplied 87.0%. These are customer and geographic cuts of the same revenue, so never add them.
06:43The filing does not name the customer. It calls it a global technology company with a leading short-form
06:50video platform, serving a worldwide audience. The summary says bookings come primarily from seven
06:56customers. The business section counts 15 customers as of September 20. Concentration versus total count,
07:05not a contradiction. Follow one payment across sections. Day one, formerly a GDS subsidiary,
07:13reduced GDS's holding through financings, and a share repurchase. Related party disclosures show a $62
07:21million one-time settlement, paid in June 2026 to terminate GDS's customer support fee arrangement.
07:30MD&A identifies that fee as the driver of a jump in selling, general, and administrative expense for the
07:38six months ended June 30, 2026. The adjusted EBITDA reconciliation adds it back under termination
07:47fee. The reusable questions are, who was paid, by whom, and where is the adjustment recorded?
07:54Compare dates before estimates. The August draft estimated $12.1 billion. Bookings measured July 21,
08:032026, less spending through March 31. The September draft estimated $10.5 billion. Bookings measured
08:13August 30, one less spending through June 30. The public F1 estimated $11.4 billion. Bookings measured
08:23September 20, with spending still cut off June 30. First, bookings held near 2.1 gigawatts, while the
08:31spending cutoff moved. Then the cutoff held, while bookings grew to about 2.3 gigawatts. A moving figure
08:39does not prove the underlying cost changed. Identify which variable moved. Inspect the cover for absences.
08:48It leaves blank the number of ADS's, how many ordinary shares each represents, the par value,
08:54the price range, the price per ADS. Day one has applied for NASDAQ ticker DODC, but no offering price is
09:03stated.
09:04The filing lets us analyze the product, contracts, accounts, cash needs, financing, and concentrations.
09:11It cannot tell us what investors are being asked to pay. Missing information is itself a finding.
09:18For the next prospectus, carry seven questions. What does the company actually sell? What is contracted
09:27versus actually operating? What does the income statement really say? What does cash flow reveal
09:35that EBITDA does not? How is growth financed? Where are the concentration risks? What price are
09:43investors being asked to pay? Those questions force labels, periods, cutoff dates, and definitions into
09:51view. They turn a long registration statement into a repeatable reading process. The seventh question
09:59remains open because day one's preliminary cover still contains the blank. This document explains the
10:06business, but not its offering price. When that blank is filled, the next episode reads the pricing
10:13amendment. When day one finally fills in the price, what are investors actually being asked to pay for?
