Equinix Posts Steady Q3 Results: Ups Annual Revenue Guidance

SV10 Silicon Valley data center (PRNewsfoto/Equinix, Inc.)

Equinix, one of the leading digital infrastructure providers has reported a steady set of quarterly numbers for the quarter ended September 30, 2022.

In the third quarter of 2022, Equinix reported revenues of $1.8 billion, a 1% increase over the previous quarter (Q2). This included a $17 million reduction in non-recurring revenues and a negative $9 million foreign currency impact when compared to prior guidance rates, the company said.

Charles Meyers, President and CEO, Equinix said:

“We had another record quarter as global demand for digital infrastructure continues to grow and customer preferences trend convincingly toward architectures that are highly distributed, persistently hybrid, deeply cloud-connected, and increasingly on-demand — all factors fueling our position as a trusted partner in digital transformation. Even in a complex and challenging macro environment, our expansive global reach and robust interconnected ecosystems continue to attract a wide and diverse customer set, as businesses prioritize digital investments and embrace Platform Equinix as a point of nexus to support hybrid and multicloud.”

Operating Income came in at $333 million, a 5% increase over the previous quarter, an operating margin of 18%. Net Income and Net Income per Share attributable to Equinix was $212 million, a 2% decrease from the previous quarter, primarily due to lower non-recurring xScale fees, a Q2 favorable tax settlement, partially offset by higher income from operations from strong operating performance and lower net interest expense, Equinix said.

Adjusted EBITDA for the quarter was $871 million, a 1% increase over the previous quarter, an adjusted EBITDA margin of 47%, which includes a negative $5 million foreign currency impact when compared to prior guidance rates. It also includes $4 million of integration costs

Annual Guidance

As a part of its annual guidance, revenues are expected in the range of $7.240 – $7.260 billion, an increase of 9% over the previous year, or a normalized and constant currency increase of 10 – 11%. This is an increase of $15 million compared to prior guidance, offset by a $44 million foreign currency impact compared to prior guidance rates.

Adjusted EBITDA for the year is expected to be in the range of $3.352 – $3.372 billion, a 46% adjusted EBITDA margin. This is an increase of $46 million compared to prior guidance including integration costs, offset by a $22 million foreign currency impact compared to prior guidance rates.

This increase assumes $20 million of integration costs. Equinix continued to expand its data center services with 46 major builds underway in 31 markets, across 21 countries.

This included a $74 million expansion to Indonesia with plans for an International Business Exchange (IBX) data center in the heart of Jakarta, scheduled to open by the second half of 2024. Additionally, in Q3, Equinix approved addition of six projects in Barcelona, Milan, Montreal, Jakarta, Silicon Valley and Tokyo.

Equinix continues to extend its leadership as the most interconnected platform with four cloud on-ramp wins this quarter bringing Equinix’s portfolio to more than 200 on-ramps across 44 markets. Equinix now has 11 metros enabled with five or more on-ramps to the largest cloud players.

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