What happened 

Shares of GDS Holdings (GDS -0.73%), a Chinese data center company, skyrocketed today after the company reported its first-quarter results. GDS fell short of analysts' expectations for earnings, but the company's revenue outpaced Wall Street's estimates. 

The tech stock was up by 14.4% as of 3:22 p.m. ET. 

So what 

GDS reported a diluted earnings loss of $0.50 per share, which was worse than analysts' consensus estimate of a loss of $0.25 per share. But investors were more than happy to ignore the company's earnings miss and instead focused their attention on GDS' revenue gains. 

A man smiling while looking at his phone.

Image source: Getty Images.

The company's Q1 sales increased by 31.5% from the year-ago quarter to $353.9 million and surpassed Wall Street's expectation of $339.9 million for the quarter.

Investors may have also been happy to see the company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased nearly 29% from the year-ago quarter to $165.8 million. 

GDS' CEO William Huang said that his company had a solid Q1 and noted that GDS "secured over 18,000 sqm of new bookings" in the quarter, helping the company maintain its "leading position in China's Tier 1 markets..." 

Now what 

GDS' management confirmed its previous full-year revenue guidance that ranges from $1.3 billion to $1.4 billion. 

Investors should be pleased with the company's latest results, but GDS' share price is still down about 60% over the past 12 months. While GDS is based in China, the company's stock has fallen along with many other tech stocks in the U.S. over the past year.

And with inflation running at nearly a 40-year high, along with the potential for an economic slowdown, GDS investors should brace themselves for more share-price volatility in the short term.