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Sep 30, 2020
Equinix Q3 2020 Earnings Report
Equinix achieved revenue and interconnection growth.
Key Takeaways
Equinix reported Q3 2020 results with revenues of $1.520 billion, a 9% increase year-over-year. AFFO was $580 million, a 4% increase over the previous quarter. The company launched Equinix Metal™ and expanded Platform Equinix®.
Revenues increased 9% year-over-year to $1.520 billion.
Operating Income was $288 million with a 19% operating margin.
AFFO reached $580 million, a 4% increase over the previous quarter.
Equinix added 8,500 net interconnections in Q3.
Equinix
Equinix
Equinix Revenue by Segment
Equinix Revenue by Geographic Location
Revenue by Segment
Colocation Revenue
CapyFin.comInterconnection Revenue
CapyFin.comManaged Infrastructure Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia-Pacific Revenue
CapyFin.com Forward Guidance
For Q4 2020, Equinix expects revenues to range between $1.549 and $1.569 billion. Adjusted EBITDA is expected to range between $685 and $705 million.
Positive Outlook
- Revenues are expected to increase 2 - 3% quarter-over-quarter.
- The company anticipates a normalized and constant currency increase of approximately 1 - 2%.
- Guidance includes $4 million negative foreign currency impact compared to Q3 2020.
- Adjusted EBITDA is expected to range between $685 and $705 million.
- Recurring capital expenditures are expected to range between $69 and $79 million.
Challenges Ahead
- Guidance includes a $4 million negative foreign currency impact when compared to the average foreign currency rates in Q3 2020.
- Adjusted EBITDA includes higher repairs and maintenance and utilities expenses.
- Adjusted EBITDA includes certain COVID-19-related one-off costs.
- Adjusted EBITDA includes a $2 million negative foreign currency impact when compared to the average FX rates in Q3 2020.
- Adjusted EBITDA includes $10 million of integration costs from acquisitions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income