Equinix, Inc. Q3 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

Overall Performance

  • Q3 revenue reached $1.84 billion, up 11% year-over-year (constant currency), marking the company’s 79th consecutive quarter of revenue growth.
  • Adjusted EBITDA grew 11% year-over-year to $871 million, exceeding the top end of guidance due to strong revenue and lower operating costs.
  • AFFO reached $712 million, above expectations, driven by strong performance and lower net interest expense.
  • MRR churn remained low at 1.9%, below the typical 2%–2.5% range.

Key Growth Drivers

  • Strong global demand for hybrid and multi-cloud infrastructure continues to support record gross and net bookings.
  • Interconnection revenue grew 13% year-over-year; Equinix added 7,300 new interconnections, reaching over 443,000 total.
  • Channel partnerships drove 37% of bookings and ~60% of new logos, marking the sixth consecutive record channel quarter.
  • Digital services offerings (including Equinix Metal, Network Edge, and Equinix Fabric) continued to grow at multiples of the core business.

Regional Highlights

  • APAC was the fastest-growing region at 19% year-over-year normalized MRR growth.
  • Americas grew 11%, supported by strong pricing and lower churn.
  • EMEA grew 10%, delivering record bookings with leadership in Amsterdam, Dublin, and Frankfurt.

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Operator: Good afternoon, and welcome to the Equinix Third Quarter Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Katrina Rymill, Senior Vice President of Corporate Finance and Sustainability You may begin. Katrina Rymill: Good afternoon, and welcome to today's conference call. Before we get started, I would like to remind everyone that some of the statements 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 have 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 and 10-Q filed on July 29, 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 to not comment on 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 of our website a presentation designed to accompany this discussion, a

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