Equinix, Inc. Q1 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Equinix delivered its strongest net booking performance in company history, marking its 77th consecutive quarter of revenue growth.
  • Q1 revenue was 1.734 billion dollars, up 10 percent year-over-year on a normalized and constant currency basis, driven by robust recurring revenue and low churn.
  • Adjusted EBITDA reached 800 million dollars, up 5 percent year-over-year and at the high end of guidance.
  • AFFO was 653 million dollars, ahead of expectations due to strong operating performance.
  • MRR churn was 1.8 percent, the lowest level in recent history (compared to their typical quarterly range of 2 to 2.5 percent).

Key Business Drivers

  • Strong global demand for digital transformation continues across enterprises and service providers.
  • Interconnection revenue grew 12 percent year-over-year; the company now operates more than 428,000 total interconnections.
  • Digital services products (Equinix Metal, Network Edge, and Equinix Fabric) posted strong growth with record virtual connection additions.
  • xScale Hyperscale initiative expanded JVs in Australia and South Korea, with nine projects under development totaling 80 megawatts, two-thirds already pre-leased.

Market and Regional Performance

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Operator: Good afternoon, and welcome to the Equinix First Quarter Earnings Conference Call. All lines will be on able to listen-only until we open for questions. Also, today's conference is being recorded. If any objection, please disconnect at this time. I would now like to turn the call over to Chip Newcom, Director of Investor Relations. Sir, you may begin Chip Newcom: Good afternoon, and welcome to today's conference call. Before we get started, I would like to remind everyone that some of the statements that we will 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've 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 18, 2022. 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 is 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 Investor Relations page at www.equinix.com. We have made a

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