Equinix Q3 2022 Earnings Report
Key Takeaways
Equinix reported a 10% increase in quarterly revenues year-over-year, reaching $1.8 billion, with interconnection revenues outpacing colocation revenues. The company delivered its sixth consecutive quarter of record channel bookings and launched the Equinix Foundation with a $50 million commitment to advance digital inclusion.
Revenues reached $1.8 billion, a 10% increase over the same quarter last year.
Operating income was $333 million, representing an 18% operating margin.
AFFO was $712 million, or $7.73 per share, driven by strong operating performance and lower income tax.
Equinix launched the Equinix Foundation with an initial financial commitment of $50 million.
Equinix
Equinix
Equinix Revenue by Segment
Equinix Revenue by Geographic Location
Forward Guidance
For the fourth quarter of 2022, Equinix expects revenues to range between $1.848 and $1.868 billion, an increase of approximately 1% over the previous quarter, or a normalized and constant currency increase of 2 - 3%. Adjusted EBITDA is expected to range between $821 and $841 million.
Positive Outlook
- Expected revenue increase of approximately 1% over the previous quarter.
- Normalized and constant currency revenue increase of 2-3%.
- Adjusted EBITDA is expected to range between $821 and $841 million.
- Integration costs from acquisitions are expected to be $6 million.
- Recurring capital expenditures are expected to range between $76 and $86 million.
Challenges Ahead
- Negative $35 million foreign currency impact on revenues compared to Q3 2022 average FX rates.
- Adjusted EBITDA includes an increase in seasonal utility costs.
- Adjusted EBITDA includes an acceleration of discretionary costs into Q4.
- Negative $16 million foreign currency impact on Adjusted EBITDA compared to Q3 2022 average FX rates.
- Unspecified increase in seasonal utility costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income