Slide 1: Q4 2022 Earnings Conference Call
Q4 2022 Earnings Conference Call NASDAQ: EQIX Presented on February 15, 2023 © 2023 Equinix.com 1
Slide 2: Public Disclosure Statement
Public Disclosure Statement Forward-Looking Statements Except for historical information, this presentation contains forward-looking statements which include words such as “believe,” “anticipate,” and “expect”. These forward-looking statements involve risks and uncertainties that may cause Equinix’s
Slide 3: 2022 Financial Highlights
2022 Financial Highlights Revenues Recurring Revenues Non-recurring Revenues Revenues Growth Q4 22 FY22 QoQ YoY YoY ($M) $7,263 $6,636 As-reported 2% 10% 9% $5,999 Revenues from Acquisitions: $5,562 $5,072 Entel: $30M MainOne: $60M Normalized and (1) 3% 11% 11% $6,871 Constant Currency $5,658 $6,220
Slide 4: Q4 2022 Consolidated Results
Q4 2022 Consolidated Results $M except for AFFO per Share and Q4 22 FY22 Non-Financial Metrics Guidance Actual QoQ YoY Guidance Actual YoY (1) Revenues $1,848 - 1,868 $1,871 2% 10% $7,240 - 7,260 $7,263 9% Cash Gross Profit $1,229 0% 9% $4,827 9% Cash Gross Margin % 65.7% 66.5% Cash SG&A $390 9% 14%
Slide 5: Americas Performance
Americas Performance Revenues ($M) Q4 22 Revenues Growth $872 QoQ YoY $831 $846 $782 $800 As-reported 3% 11% Normalized and (1) 3% 10% Constant Currency (2) Normalized MRR 3% 11% Adjusted EBITDA Q4 22 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Growth QoQ YoY Adjusted EBITDA As-reported 0% 18% Adjusted EBITDA Adj
Slide 6: EMEA Performance
EMEA Performance Revenues Revenues Q4 22 ($M) Growth QoQ YoY $599 $592 $602 $553 $550 As-reported 2% 9% Normalized and (1) 3% 9% Constant Currency (2) Normalized MRR 2% 10% Adjusted EBITDA Q4 22 (3) Growth QoQ YoY Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Adjusted EBITDA As-reported 5% 4% Adjusted EBITDA Adjust
Slide 7: Asia-Pacific Performance
Asia-Pacific Performance Revenues Revenues Q4 22 ($M) Growth QoQ YoY $403 $397 $384 $387 $371 As-reported 1% 7% Normalized and (1) 1% 17% Constant Currency (2) Normalized MRR 1% 16% Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Adjusted EBITDA Q4 22 (3) (3) Growth QoQ YoY Adjusted EBITDA As-reported 9% 10% Adjusted
Slide 8: Capital Structure
Capital Structure (1)(2) Available Liquidity Capital Market Updates $5.8B • During the three months ended December 31, 2022, we sold forward shares under our ATM programs with a future gross settlement value of approximately $300 million. No such forward sales have been settled as of Ratings Decembe
Slide 9: Capital Expenditures
Capital Expenditures Recurring Capital Expenditures 5.0% ($M) 4.3% $86 $80 5% 8% 2.7% • Recurring capital expenditures have 15% 1.9% 4% historically trended between 2% and 5% of $50 revenues, annually 1.4% 16% $35 87% $24 22% 36% 81% • Maintenance capital expenditures can vary by 16% quarter based o
Slide 10: Stabilized Data Center Growth
(1) (2) Stabilized Data Center Growth Stabilized, Expansion & New Data Centers Stabilized Data Center Profitability ($M) Last Quarter $12,788 $5,316 $3,674 $98 Reported # of Data Centers Q4 22 Revenues ($M) 27% annual Cash Gross Profit on Gross PP&E Expansion: investment (5) (3) 24% Stabilized: Grow
Slide 11: 2023 Financial Guidance
(1) 2023 Financial Guidance ($M except AFFO per Share) FY 2023 Q1 2023 (2) (3) Revenues $8,145 - 8,245 $1,965 - 1,995 (4) (5) Adjusted EBITDA $3,615 - 3,695 $891 - 921 Adjusted EBITDA Margin % 44 - 45% 45 - 46% Recurring Capital Expenditures $197 - 217 $18 - 28 % of revenues 2 - 3% ~1% Non-recurring
Slide 12: FY23 Revenues Guidance
FY23 Revenues Guidance Accelerating growth of 14 - 15%, ahead of long-term targets due to strength of net bookings and power pass-through Normalized Constant Currency +12 - 14% ($M) YoY Growth $8,145 - 8,245 Normalized Constant Currency growth ex. Power Pass-through +9% $7,263 (2) +11% 14 - 15% $6,6
Slide 13: FY23 Adjusted EBITDA Guidance
FY23 Adjusted EBITDA Guidance Operating leverage offset by continued power headwinds and strategic investments 46.4% As-reported Margin 44.6% (1) (2) ($M) 46.7% Margin ex. Integration Costs 45.0% (1) Margin ex. Power headwind (2) 47.8% & Integration Costs 47.9% 7 - 10% $3,650 - 3,730 $3,615 - 3,695
Slide 14: Q1 23 Guidance
Q1 23 Guidance Revenues Adjusted EBITDA As-reported Margin 44.8% 45.3% 46.1% 45.8% ($M) 5 - 6% $1,965 - 1,995 5 - 9% $897 - 927 $891 - 921 $850 -$6 $838 $12 $1,871 $1,878 $7 (1) Q4 22 Normalizing (1) Q4 22 Q1 23 Q4 22 Normalizing (2) Q4 22 Q1 23 (4) Integration Q1 23 Reported Normalized Guidance Rep
Slide 15: FY23 AFFO and AFFO per Share Guidance
(1) FY23 AFFO and AFFO per Share Guidance Normalized AFFO growth of 9 - 12% and AFFO per share growth of 8 - 10% Share Count (Diluted) ($M except AFFO per Share) AFFO per Share (Diluted) AFFO (2) 9 - 12% Normalized Constant Currency YoY Growth 88.4M 90.4M 91.8M 93.6M 93.6M $24.76 $27.11 $29.55 $31.1
Slide 16: Dividend Outlook
Dividend Outlook Annual Cash Dividend ($M) ~12% +10% ~$1,270 $1,137 $1,030 $936 $826 2023E Cash Dividend of ~$1,270M • Eight years of continued cash dividend growth since REIT conversion in 2015 43% 43% 42% 42% ~43% 42% Payout Payout Payout Payout Payout Ratio Ratio Ratio Ratio Ratio • First quarter
Slide 17: Supplemental Financial and Operating Data
Supplemental Financial and Operating Data All the Right All the Right All the Right PLACES PARTNERS POSSIBILITIES Place Infrastructure Connect to Everything Seize Opportunity with Wherever You Need It You Need to Succeed Agility, Speed and Confidence Global Footprint Global Ecosystem Experience 248
Slide 18: Equinix Overview
Equinix Overview (1) • Global footprint: 248 data centers in 71 metros Unique Portfolio of Data • Network dense: ~2,100 networks; 100% of Tier 1 Network Routes Center Assets • Cloud dense: 3,000+ Cloud & IT service providers • Interconnected ecosystems: 446,000+ Total Interconnections • 2023 expecte
Slide 19: Pressing Our Advantage in All Markets
Pressing Our Advantage in All Markets Equinix global reach expands to 71 metro areas and 32 countries 6 Continents 32 Countries 71 Metro areas 248 Data centers AMERICAS EMEA ASIA-PACIFIC 29 Metros 29 Metros 13 Metros % of Customers in Platform Equinix • Geographic footprint is 107 Data Centers 90 Da
Slide 20: xScale: Amplifying Our Balance Sheet to Extend Cloud Leadership
xScale: Amplifying Our Balance Sheet to Extend Cloud Leadership Phase Phase Phase Cost JV Status Capacity Leasing Opening ($M) (MW) (MW) Recent Leasing Activity São Paulo 5x-2 JV Open $13 2 2 AMER • Leased approximately 8MW across Osaka 2x and Tokyo12x Mexico City 3x-1 JV Ready Q4 2023 $61 4 0 Dubli
Slide 21: Customer Diversity
Customer Diversity Diversified revenues across business size and industry reduces exposure to macro volatility Bubble Size: 4Q22 MRR with Equinix Large, established businesses Customers come from a Majority of revenue comes from constitute majority of revenue diverse set of Industries… customers dep
Slide 22: Customer Revenues Mix
Customer Revenues Mix Diversified Revenues across Customer, Region and Industry segments Customers and Churn (1) Q4 22 Revenues Mix Top 10 Customers Rank Type of Customer %MRR Region Count IBX Count 1 Cloud & IT 2.6% 3 77 2 Cloud & IT 2.5% 3 74 EMEA 3 Cloud & IT 2.3% 3 60 Enterprise 32% 35% INT 4 Ne
Slide 23: Non-Financial Metrics
Non-Financial Metrics (1) FY 2021 FY 2022 Organic Annual (2) Total Underlying Acquisitions & Q4 Q1 Q2 Q3 Q4 Q4 QoQ Reconciliation Interconnections Americas 185,400 189,400 192,100 194,600 196,600 - 196,600 2,000 EMEA 151,500 154,300 157,200 160,700 162,400 (4,700) 157,700 1,700 Asia-Pacific 82,300 8
Slide 24: Equinix Announced Retail IBX Expansions AMER / APAC
Equinix Announced Retail IBX Expansions AMER / APAC Expansion Highlights • We have 49 major builds underway across 35 markets in 23 countries including 9 xScale builds • We had 9 openings in 8 metros – Dublin, Geneva, Los Angeles, Osaka, São Paulo, Singapore, Washington D.C. and Zurich in the quarte
Slide 25: Equinix Announced Retail IBX Expansions EMEA
Equinix Announced Retail IBX Expansions EMEA Cabinet(1) Equivalent 2022 2023 2024 Total Capex(1) Capacity In IBX Data Center Status Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 $US millions Ownership Future Phases ZH5 phase 4 (Zurich) Open 250 $42 Owned 700 GV2 phase 3 (Geneva) Open 225 $30 Leased - FR5 phase 5 (Fran
Slide 26: Real Estate Ownership and Long-Term Leases
Real Estate Ownership and Long-Term Leases (1) Own 138 of 248 Data Centers, totaling 19.7M of 29.4M total gross square feet Recurring Revenues by Global Lease Portfolio Expiration Waterfall (3) Ownership (2) % Leases Renewing by Square Footage Last Possible Expiration Date 61% Owned Lease 63% >=2038
Slide 27: Same Store Operating Performance
Same Store Operating Performance (1) Revenues ($M) Cash Cost, Gross Profit and PP&E ($M) Cash Cost Trailing 4-Qtr Inter- Services/ Total Non- Total of Cash Gross Cash Gross Gross Cash Return on Category Colocation connection Other Recurring recurring Revenues Revenues Profit Margin % PP&E Gross PP&E
Slide 28: Consolidated Portfolio Operating Performance
Consolidated Portfolio Operating Performance (1) Cabinets Billed Q4 22 Revenues ($M) Total Cabinet Owned % of # of Data Cabinet Cabinets Utilization Total Total Category Centers Capacity Billed % Recurring Recurring Americas Owned (2) 59 100,600 79,300 79% $574 Leased 42 34,300 28,900 84% $207 Ameri
Slide 29: Data Center Portfolio Composition
Data Center Portfolio Composition Metro Count Stabilized Expansion New Acquisition xScale Owned Leased Atlanta 5 AT2, AT3, AT4, AT5 AT1 AT4 AT1, AT2, AT3, AT5 Change Summary (1) (2) Bogota 1 BG1 BG1 Boston 1 BO2 BO2 Calgary 3 CL1, CL2 CL3 CL3 CL1, CL2 Leased to Owned Chicago 5 CH1, CH2, CH4, CH7, CH
Slide 30: Data Center Portfolio Composition
Data Center Portfolio Composition Metro Count Stabilized Expansion New Acquisition xScale Owned Leased Abidjan 1 Abidjan 1 Abidjan 1 Abu Dhabi 1 AD1 AD1 Accra 1 Accra 1 Accra 1 Change Summary (1) (2) (3 (4) Amsterdam 9 AM1, AM2, AM3, AM5, AM6, AM8 AM4, AM7, AM11 AM1*, AM2*, AM3*, AM4*, AM5, AM6, AM7
Slide 31: Adjusted Corporate NOI
(1) Adjusted Corporate NOI ($M, except # of Data Centers) Calculation Of Adjusted Corp NOI Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 # of Data Centers (1) 237 239 238 232 232 Recurring Revenues (2) $1,733 $1,713 $1,676 $1,618 $1,581 Recurring Cash Cost of Revenues Allocation (550) (524) (516) (508) (4
Slide 32: Adjusted NOI Composition – Organic
Adjusted NOI Composition – Organic (1) Q4 2022 Q4 2022 # of Total Cabinet Recurring Quarterly Data Cabinet Cabinets Utilization Revenues Adjusted NOI Category Centers Capacity Billed % ($M) ($M) % NOI Stabilized Owned (2) 70 140,400 123,300 88% $761 $496 49% Leased 88 91,400 79,100 87% $525 $302 30%
Slide 33: Components of Net Asset Value
Components of Net Asset Value Q4 22 Quarterly Ownership Reference Adjusted NOI ($M) Stabilized Owned Adjusted NOI Segments $496 Stabilized Leased Adjusted NOI Segments $302 Expansion Owned Adjusted NOI Segments $140 Expansion Leased Adjusted NOI Segments $59 Other Real Estate Owned Adjusted NOI Segm
Slide 34: Shares Forecast
Shares Forecast (M) Fully Diluted Weighted Average Shares Common Stock Outstanding 92.5 92.6 -0.3 ~93.6 0.5 ~93.4 91.0 91.1 90.6 0.8 1.7 1.7 1.4 1.4 1.4 92.6 Shares Est. Employee Est. Shares Est. Weighted Est. Weighting Est. Fully Diluted Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Outstanding @ Equity Awards Out
Slide 35: Capital Expenditures Profile
Capital Expenditures Profile Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 ($M) Recurring IBX Maintenance 65 24 21 10 75 Sustaining IT & Network 3 18 6 6 4 Re-configuration Installation 12 8 8 8 7 Subtotal - Recurring 80 50 35 24 86 Non-Recurring IBX Expansion 565 377 325 256 520 Transform IT, Network & O
Slide 36: FX Rates, Hedging and Currencies
FX Rates, Hedging and Currencies (4) Currency % of Revenues Revenue FX Rates (2) Blended (4) (4) CHF Guidance Blended % of GBP Currency Hedge Rate Guidance (3) (4) 1% Rate (1) Hedge % Revenues EUR 9% Rate (2) HKD USD 1.00 41% 17% 3% AUD EUR to USD 1.07 1.11 1.10 65% 17% 4% GBP to USD 1.21 1.25 1.23
Slide 37: The Three Pillars of ESG
(1) The Three Pillars of ESG Our Future First sustainability strategy inspires us to dream of a better future. Environment Social Governance Do more for each Do what it takes to Do what’s right to other to unleash protect the planet lead the way potential ▪ First data center to set a ▪ Building a Di
Slide 38: Industry Analyst Reports
Industry Analyst Reports Solution Category Reports • EQIX Vendor Profile: Datacenter and Digital Infrastructure Services – IDC, 12/22 Digital Infrastructure • Digital Services Total Economic Impact (TEI) – Forrester, 9/22 • How to evolve your physical data center to a modern operating model – Gartne
Slide 39: Equinix Leadership and Investor Relations
Equinix Leadership and Investor Relations Executive Team Equinix Investor Relations Contacts Equity Research Analysts Katrina Rymill Bank of America David Barden SVP, Corporate Finance and Sustainability Barclays Brendan Lynch 650-598-6583 BMO Capital Markets Ari Klein krymill@equinix.com BNP Pariba
Slide 40: Appendix: Non-GAAP Financial Reconciliations & Definitions
Appendix: Non-GAAP Financial Reconciliations & Definitions © 2023 Equinix.com 40
Slide 41: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2023 Equinix.com 41
Slide 42: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2023 Equinix.com 42
Slide 43: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2023 Equinix.com 43
Slide 44: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2023 Equinix.com 44
Slide 45: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2023 Equinix.com 45
Slide 46: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2023 Equinix.com 46
Slide 47: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2023 Equinix.com 47
Slide 48: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2023 Equinix.com 48
Slide 49: Non-GAAP Reconciliations
Non-GAAP Reconciliations Consolidated NOI calculation Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 (unaudited and in thousands) Revenues $ 1,870,845 $ 1,840,659 $ 1,817,154 $ 1,734,447 $ 1,706,378 (1) Non-Recurring Revenues (NRR) 86,434 85,014 82,987 83,844 85,766 Other Revenues (2) 51,807 43,096 58,579
Slide 50: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands) Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Income from Operations $ 282,200 $ 333,159 $ 317,853 $ 267,316 $ 249,725 Adjustments: Depreciation, Amortization and Accretion Expense 438,492 431,668 432,828 436,386 428,764 Stock-based Compensation Expens
Slide 51: Non-GAAP Reconciliations
Non-GAAP Reconciliations NAREIT Funds From Operations (NAREIT FFO) - We calculate Funds From Operations in accordance with the standards established by the National Association of Real Estate Investment Trusts (“NAREIT”). NAREIT FFO represents net income (loss), excluding gains (or losses) from disp
Slide 52: Definitions: Non-financial Metrics, Data Center growth, REIT and Capital Expenditures
Definitions: Non-financial Metrics, Data Center growth, REIT and Capital Expenditures Non-Financial Metrics MRR per Cab: Monthly recurring revenues per billed cabinet: (current quarter recurring revenues / 3) divided by ((quarter end cabinets billing prior quarter + quarter end cabinets billing curr
Slide 53: © 2023 Equinix.com
ull FQUINIX WHERE OPPORTUNITY CONNECTS