Equinix revenues up 6% in January-March 2024 to $2.1 bn

Equinix said revenues increased 6 percent in January-March 2024 to $2.1 billion as it closed 3,800 deals across more than 3,100 customers in Q1.
Equinix at Oracle OpenWorld 2017Equinix reported Operating Income of $364 million, a 5 percent increase over the previous quarter, due to strong operating performance and an operating margin of 17 percent

Equinix posted Net Income of $231 million, a 2 percent increase over the previous quarter, primarily due to higher income from operations.

Equinix has 50 major projects underway in 34 markets, across 21 countries. This includes 14 xScale builds, representing more than 16,000 cabinets of retail capacity and more than 50 megawatts of xScale capacity through the end of 2024. More than 90 percent of current retail expansion capital expenditures are related to owned land or owned buildings with long-term ground leases.

In Q1, Equinix added projects in Frankfurt, Madrid, Osaka and Silicon Valley. Since the Q4 2023 earnings call, Equinix opened three retail projects in Mexico City, Mumbai and Paris. Additionally, Equinix purchased the company’s Dublin 2, Mumbai 2 and Stockholm 3 International Business Exchange (IBX) facilities resulting in recurring revenues from owned assets increasing to 67 percent for Q1.

Since the last earnings call, Equinix has pre-leased an incremental 48 megawatts of capacity across its Frankfurt 10, Osaka 4 and Osaka 5 assets, including approximately 34 megawatts leased in mid-April. This brings total xScale leasing to nearly 350 megawatts globally with nearly 90 percent of both operational and under-construction capacity.

In addition, in mid-April, Equinix announced its first U.S. xScale joint venture with PGIM Real Estate for the SV12x asset in Silicon Valley. When combined with its existing joint ventures in Asia-Pacific, Europe and Latin America, this new joint venture will bring the expected global xScale portfolio to more than $8 billion of investment across more than 35 facilities and greater than 725 megawatts of power capacity when completed.

Equinix’s Channel program delivered another solid quarter, accounting for over 60 percent of new logos. It experienced growth from partners such as AT&T, Avant, Dell, Kyndryl and Zenlaver, with wins across a range of industry verticals and a broad mix of Equinix services.

OUTLOOK

Equinix expects revenues of $2.148 – $2.168 billion, an increase of approximately 1 – 2 percent over the previous quarter, for the second quarter of 2024.

Recurring capital expenditures are expected to range between $38 and $58 million.

Equinix expects revenues of $8.692 – $8.792 billion, a 6 – 7 percent increase over the previous year, for the full year of 2024.

Equinix expects capital expenditures of $2.780 – $3.030 billion in 2024. Equinix expects non-recurring capital expenditures, including xScale-related capital expenditures, of $2.570 – $2.800 billion, and recurring capital expenditures of $210 – $230 million.

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