Equinix, Inc. Q1 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview & Market Context

  • Equinix delivered strong Q1 results despite COVID-19 headwinds. The company emphasized operational resilience, continued customer demand, and a robust sales pipeline entering Q2.
  • Management highlighted the critical role Equinix plays in digital infrastructure as global remote‑work trends accelerated network traffic and interconnection needs.
  • The company widened the lower end of revenue guidance to reflect potential COVID‑related impacts but reaffirmed AFFO guidance at the midpoint on a constant‑currency basis.

Financial Highlights (Compared to Prior Year Period Unless Stated)

  • Revenue: $1.445 billion, up 7% year‑over‑year; 69th consecutive quarter of revenue growth.
  • Adjusted EBITDA: $684 million, up 5% year‑over‑year and 2% quarter‑over‑quarter.
  • AFFO: $535 million, above expectations due to strong operations and lower‑than‑expected interest and taxes.
  • Interconnection revenue: Up 15% year‑over‑year; now approaching a $1 billion annual run rate.
  • FX impact: Revenue negatively impacted by $15M; adjusted EBITDA negatively impacted by $7M versus prior guidance rates.

Operational & Demand Metrics

  • Interconnections: Over 370,000 total; 6,800 added in Q1, marking the 13th consecutive quarter of outpacing top 10 competitors combined.

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Operator: Good afternoon and welcome to the Equinix First Quarter Earnings Conference Call. All lines will be able to listen-only until we open for questions. Also, today's conference is being recorded. If anyone has any objections, please disconnect at this time. I'd now like to turn the call over to Katrina Rymill, Vice President of Investor Relations. Thank you. Katrina Rymill: Good afternoon, and welcome to today's conference call. Before we get started, I'd like to remind everyone that some of the statements we'll be making today are forward-looking in nature and involve risks and uncertainties. Actual results may vary significantly from those statements and may be affected by the risks we identified in today's press release and those identified in our filings with the SEC, including our most recent Form 10-K filed on February 21, 2020. Equinix assumes no obligation and does not intend to update or comment on forward-looking statements made on this call. In addition, in light of Regulation Fair Disclosure, it's Equinix' policy not to comment on its financial guidance during the quarter, unless it is done through an explicit public disclosure. In addition, we will provide non-GAAP measures on today's conference call. We provide a reconciliation of those measures to the most directly comparable GAAP measures and a list of the reasons why the company uses these measures in today's press release on the Equinix IR page at www.equinix.com. We have made available on the IR page

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