Sep 30, 2021

Equinix Q3 2021 Earnings Report

Equinix demonstrated revenue growth for 75th consecutive quarter, driven by digitization of business models.

Key Takeaways

Equinix reported a 10% increase in quarterly revenues compared to the same quarter last year, reaching $1.675 billion. Net income attributable to Equinix was $152 million, a 123% increase over the previous quarter. The company closed the GPX India acquisition and expanded its xScale program with a new joint venture in Australia.

Revenues increased 10% year over year to $1.675 billion.

Record channel bookings accounted for more than 35% of total bookings.

Interconnection revenues continued to outpace colocation revenues.

Closed the GPX India acquisition and expanded xScale program.

Total Revenue
$1.68B
Previous year: $1.52B
+10.2%
EPS
$6.94
Previous year: $6.48
+7.1%
Worldwide Interconnections
414K
AFFO
$628M
Previous year: $580M
+8.4%
Gross Profit
$790M
Previous year: $752M
+5.0%
Cash and Equivalents
$1.38B
Previous year: $2.65B
-47.9%
Total Assets
$27.8B
Previous year: $26.4B
+5.1%

Equinix

Equinix

Equinix Revenue by Segment

Equinix Revenue by Geographic Location

Forward Guidance

For the fourth quarter of 2021, the Company expects revenues to range between $1.685 and $1.705 billion and Adjusted EBITDA is expected to range between $762 and $782 million.

Positive Outlook

  • Revenues are expected to range between $1.685 and $1.705 billion.
  • Revenue is expected to increase 1 - 2% compared to the prior quarter
  • Expects the largest ever normalized step-up in recurring revenues in Q4
  • Adjusted EBITDA is expected to range between $762 and $782 million.
  • Recurring capital expenditures are expected to range between $75 and $85 million.

Challenges Ahead

  • Includes a $5 million negative foreign currency impact when compared to the average FX rates in Q3 2021.
  • Expects a sequential decrease of non-recurring revenues by approximately $12 million.
  • Adjusted EBITDA includes a $2 million negative foreign currency impact when compared to the average FX rates in Q3 2021
  • Adjusted EBITDA includes $7 million of integration costs from acquisitions.
  • Full impact of the COVID-19 pandemic on the company's financial condition or results of operations remains uncertain

Revenue & Expenses

Visualization of income flow from segment revenue to net income