Equinix, Inc. Q4 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

Overview

  • Equinix reported a strong fourth quarter, achieving its best booking performance ever and ending the year with $6.6 billion in revenue, up 8% year-over-year (normalized and constant currency).
  • Adjusted EBITDA also grew 8% year-over-year, while AFFO per share increased 9% year-over-year.
  • Q4 revenue reached $1.706 billion, up 10% year-over-year.
  • Interconnection revenue grew 12% year-over-year, reflecting strong demand for ecosystem connectivity, with 7,500 net new interconnections added in the quarter.
  • Churn averaged 2.1% for the year, at the low end of the 2%–2.5% target range, and reached 2% in Q4.

Key Business Drivers

  • Global demand for hybrid and multicloud architectures continues to accelerate digital transformation.
  • Equinix Fabric surpassed a $150 million revenue run rate, with one-third of customers now using the service.
  • Equinix Metal showed healthy new logo growth and backlog strength across verticals.
  • xScale momentum remained strong with more than 130 MW of capacity leased to date and major expansions underway globally.
  • Channel sales hit a record, representing 40% of bookings and nearly 60% of new logos.

Geographic Performance

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Operator: Good afternoon, and welcome to the Equinix Fourth Quarter Earnings Conference Call. All lines will be on listen-only until we open for questions. Also today's conference is being recorded. [Operator Instructions] I would now like to turn the call 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'd like to remind everyone that some of the statements we're 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 19, 2021, and 10-Q filed on November 4, 2021. 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 for our disclosure, is Equinix's policy not to comment on the 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

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