Slide 1: Q1 2024 Earnings Conference Call
Q1 2024 Earnings Conference Call NASDAQ: EQIX Presented on May 8, 2024 © 2024 Equinix, Inc. 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: Q1 2024 Financial Highlights
Q1 2024 Financial Highlights Revenues Q1 24 Recurring Revenues Non-recurring Revenues Revenues Growth QoQ YoY ($M) $2,110 $2,127 $2,019 $2,061 As-reported 1% 6% $1,998 Normalized and (1) 0% 7% Constant Currency $1,918 $1,961 $1,976 $2,010 $1,890 (1) Normalized MRR 1% 7% Q1 23 Q2 23 Q3 23 Q4 23 Q1 24
Slide 4: Q1 2024 Consolidated Results
Q1 2024 Consolidated Results $M except for AFFO per Share and Q1 24 Non-Financial Metrics Guidance Actual QoQ YoY Revenues (1) $2,127 - 2,147 $2,127 1% 6% Cash Gross Profit $1,413 4% 6% Cash Gross Margin % 66.4% Cash SG&A $421 -3% 9% Cash SG&A % 19.8% 0 (2) Adjusted EBITDA $960 - 980 $992 0 8% 0 5%
Slide 5: Americas Performance
Americas Performance Revenues ($M) Recurring Revenues Non-recurring Revenues Q1 24 Revenues Growth $939 QoQ YoY $932 $913 $882 $890 As-reported 1% 6% Normalized and (1) 0% 6% Constant Currency $872 $893 $894 Normalized and $838 $854 (2) 0% 6% Constant Currency MRR Adjusted EBITDA Q1 24 Q1 23 Q2 23 Q
Slide 6: EMEA Performance
EMEA Performance Revenues Recurring Revenues Non-recurring Revenues Q1 24 ($M) Revenues Growth $709 $751 $727 QoQ YoY $691 $687 (4) As-reported 3% 5% Normalized and (4) (1)(2) 5% 6% Constant Currency $645 $653 $673 $677 $691 Normalized and (3) 0% 8% Constant Currency MRR Adjusted EBITDA Q1 24 Q1 23
Slide 7: Asia-Pacific Performance
Asia-Pacific Performance Recurring Revenues Non-recurring Revenues Revenues Q1 24 ($M) $461 Revenues Growth $442 $439 QoQ YoY $425 $427 As-reported 8% 9% Normalized and (1) (2) 6% 12% Constant Currency $407 $411 $416 $406 $425 Normalized and (3) 3% 8% Constant Currency MRR Q1 23 Q2 23 Q3 23 Q4 23 Q1
Slide 8: Capital Structure
Capital Structure (1) (2) Strong balance sheet driven by excellent liquidity, low leverage, and a predominantly fixed Available Liquidity rate debt profile $5.9B Published new Green Finance Framework in March which includes three new use of Ratings proceeds categories Baa2 / BBB / BBB+ Net Leverage
Slide 9: Capital Expenditures
Capital Expenditures Recurring Capital Expenditures ($M) 5.0% $105 13% • Recurring capital expenditures have historically 5% trended between 2% and 5% of revenues, 2.5% annually 2.0% $51 1.1% $40 25% 82% 1.0% • Maintenance capital expenditures can vary by $23 27% 8% quarter based on maintenance sche
Slide 10: Stabilized Data Center Growth
(1) (2) Stabilized Data Center Growth Stabilized, Expansion & New Data Centers Stabilized Data Center Profitability ($M) Last Quarter $15,129 $6,025 $4,032 $125 Reported # of Data Centers Q1 FY24 Revenues ($M) $18,000 $16,121 9 $16,000 26% annual Cash Gross Profit on Gross PP&E Expansion: $443 inves
Slide 11: 2024 Financial Guidance
2024 Financial Guidance ($M except AFFO per Share) FY 2024 Q2 2024 (1) (2) Revenues $8,692 - 8,792 $2,148 - 2,168 (3) (4) Adjusted EBITDA $4,044 - 4,124 $1,019 - 1,039 Adjusted EBITDA Margin % ~47% 47 - 48% Recurring Capital Expenditures $210 - 230 $38 - 58 % of revenues 2 - 3% 2 - 3% Non-recurring
Slide 12: FY24 Guidance
FY24 Guidance Revenues ($M) Adjusted EBITDA ($M) On track to deliver full year guidance Raise underlying adjusted EBITDA guidance by $5M As-reported Margin 46.7% Normalized Constant 45.2% Currency growth ex. net power price decreases 7 - 8% (1) Margin excl. Integration 45.4% Costs 46.9% +6 - 8% +9 -
Slide 13: Q2 24 Guidance
Q2 24 Guidance As-reported Margin Margin excl. Integration costs Revenues ($M) Adjusted EBITDA ($M) 46.6% 47.7% 46.7% 48.0% +$48 +2 - 3% $2,148 - 2,168 +$47 +4 - 6% $2,127 $1,025 - 1,045 -$17 $2,110 $1,019 - 1,039 -$6 $992 $988 -$4 (1) Q1 24 Normalizing Q1 24 (1) Q2 24 Q1 24 Normalizing Q1 24 Q2 24
Slide 14: FY24 AFFO and AFFO per Share Guidance
FY24 AFFO and AFFO per Share Guidance (1)(2)(3) Raise underlying AFFO guidance by $25M against FX headwind of $36M; AFFO per share growth of 8 - 11% Share Count (Diluted) AFFO per Share (Diluted) Normalized AFFO Constant Currency 10 - 13% YoY Growth 1 Raise AFFO guidance 94.0M 95.6M 95.5M Prior Full
Slide 15: Dividend Outlook
Dividend Outlook Annual Cash Dividend ($M) ~19% +20% ~$1,618 $1,359 $1,137 2024E Cash Dividend of ~$1,618M $1,030 $936 • Nine years of continued cash dividend growth since REIT conversion in 2015 43% 42% 42% 45% ~49% 42% Payout Payout Payout Payout Payout Ratio Ratio Ratio Ratio Ratio • Second quart
Slide 16: Supplemental Financial and Operating Data
Supplemental Financial and Operating Data All the Right All the Right All the Right PLACES PARTNERS POSSIBILITIES Place Infrastructure Connect to Everything Seize Opportunity with Wherever You Need It You Need to Succeed Agility, Speed and Confidence Global Footprint Global Ecosystem Experience 260
Slide 17: Equinix Overview
Equinix Overview (1) • Global footprint: 260 data centers in 71 metros Unique Portfolio of Data • Network dense: 2,000+ networks; 100% of Tier 1 Network Routes Center Assets • Cloud dense: 3,000+ Cloud & IT service providers • Interconnected ecosystems: 468,000+ Total Interconnections • 2024 expecte
Slide 18: Pressing Our Advantage in All Markets
Pressing Our Advantage in All Markets Equinix global reach expands to 71 metro areas and 33 countries 6 Continents 33 Countries 71 Metro areas 260 Data centers AMERICAS EMEA ASIA-PACIFIC Platform Equinix 14 Metros % of Customers in • Geographic footprint is 29 Metros 28 Metros 109 Data Centers 96 Da
Slide 19: xScale: Amplifying Our Balance Sheet to Extend Cloud Leadership
xScale: Amplifying Our Balance Sheet to Extend Cloud Leadership Phase Phase Phase Cost JV Status Capacity Leasing Opening ($M) (MW) (MW) Recent Leasing Activity Silicon Valley 12x-1 JV Q2 2024 $293 14 5 AMER • Leased 48MW of capacity since our last earnings call Mexico City 3x-1 JV Q1 2025 $61 4 0 i
Slide 20: Customer Diversity
Customer Diversity Diversified revenues across business size and industry reduces exposure to macro volatility Bubble Size: 1Q24 MRR1 with Equinix Large, established businesses Customers come from a diverse Majority of revenue comes from constitute majority of revenue… set of Industries… customers d
Slide 21: Customer Revenues Mix
Customer Revenues Mix Diversified Revenues across Customer, Region and Industry segments Customers and Churn Q1 24 Revenues Mix (1) Top 10 Customers Rank Type of Customer %MRR Region Count IBX Count 1 Cloud & IT 2.7% 3 79 2 Cloud & IT 2.6% 3 56 EMEA Enterprise 3 Cloud & IT 2.6% 3 77 36% 34% INT 18%
Slide 22: Non-Financial Metrics
Non-Financial Metrics (1) FY2023 FY2024 Q1 Q2 Q3 Q4 Q1 QoQ Interconnections Americas 198,500 199,900 201,900 203,600 207,000 3,400 EMEA 159,600 160,800 161,700 159,800 161,300 1,500 Asia-Pacific 94,100 95,600 96,900 98,800 100,100 1,300 Total Interconnections 452,200 456,300 460,500 462,200 468,400
Slide 23: Equinix Announced Retail IBX Expansions
Equinix Announced Retail IBX Expansions Expansion Highlights • We have 50 major builds underway across 34 markets in 21 countries including 14 xScale builds • We had 3 openings in 3 metros – Mexico City, Mumbai and Paris • Estimated FY24 ending cabinet equivalent capacity of ~382,000 AMER Cabinet(1)
Slide 24: Equinix Announced Retail IBX Expansions
Equinix Announced Retail IBX Expansions EMEA / APAC (1) Cabinet Equivalent (1) 2024 2025 2026 Total Capex Capacity In IBX Data Center Status Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 $US millions Ownership Future Phases PA10 phase 2 (Paris) Open 700 $32 Owned - HH1 phase 2 (Hamburg) Previously Announced 325
Slide 25: Real Estate Ownership and Long-Term Leases
Real Estate Ownership and Long-Term Leases (1) Own 155 of 260 Data Centers, totaling 22.3M of 31.5M total gross square feet Recurring Revenues by Global Lease Portfolio Expiration Waterfall (3) (2) Ownership % Leases Renewing by Square Footage Last Possible Expiration Date 49% Lease >=2039 16% Owned
Slide 26: Same Store Operating Performance
Same Store Operating Performance (1) Revenues ($M) Cash Cost, Gross Profit and PP&E ($M) Cash Cost Trailing 4-Qtr Inter- Services/ Total Non- Total of Cash Gross Cash Gross Gross Cash Return on Category Colocation connection Other Recurring Recurring Revenues Revenues Profit Margin % PP&E Gross PP&E
Slide 27: Consolidated Portfolio Operating Performance
Consolidated Portfolio Operating Performance (1) Cabinets Billed Q1 24 Revenues ($M) Total Cabinet Owned % of # of Data Cabinet Cabinets Utilization Total Total Category Centers Capacity Billed % Recurring Recurring Americas Owned (2) 68 113,600 87,600 77% $653 Leased 40 32,000 26,400 83% $202 Ameri
Slide 28: Data Center Portfolio Composition
Data Center Portfolio Composition Metro Count Stabilized Expansion New xScale Owned Leased Change Summary (1) Atlanta 5 AT2, AT3, AT4, AT5 AT1 AT4 AT1, AT2, AT3, AT5 Bogota 2 BG1 BG2 BG1, BG2 Boston 1 BO2 BO2 Calgary 3 CL1, CL2 CL3 CL3 CL1, CL2 Expansion to Stabilized Chicago 5 CH1, CH2, CH3, CH4, C
Slide 29: Data Center Portfolio Composition
Data Center Portfolio Composition Change Summary (1) New IBX MB4 Expansion to Stabilized AC1 GV2 IL2 LD7 MD2 ME4 SK1 SK2 New to Expansion GN1 MA5 MU4 PA10 PE3 Stabilized to Expansion GV1 Leased to Owned DB2 MB2 SK3 Closed IBX MA2 Status Change * Subject to long-term ground lease © 2024 Equinix, Inc.
Slide 30: Adjusted Corporate NOI
Adjusted Corporate NOI (1) ($M, except # of Data Centers) Calculation Of Adjusted Corp NOI Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 # of Data Centers (1) 243 243 239 238 237 (2) Recurring Revenues $1,960 $1,930 $1,921 $1,878 $1,843 Recurring Cash Cost of Revenues Allocation (619) (663) (639) (634) (5
Slide 31: Adjusted NOI Composition – Organic
Adjusted NOI Composition – Organic (1) Q1 2024 Q1 2024 # of Total Cabinet Recurring Quarterly Data Cabinet Cabinets Utilization Revenues Adjusted NOI Category Centers Capacity Billed % ($M) ($M) % NOI Stabilized (2) Owned 91 170,900 145,100 85% $990 $630 53% Leased 89 89,900 73,800 82% $538 $332 28%
Slide 32: Components of Net Asset Value
Components of Net Asset Value Q1 24 Quarterly Ownership Reference Adjusted NOI ($M) Stabilized Owned Adjusted NOI Segments $630 Stabilized Leased Adjusted NOI Segments $332 Expansion Owned Adjusted NOI Segments $179 Expansion Leased Adjusted NOI Segments $55 Other Real Estate Owned Adjusted NOI Segm
Slide 33: Shares Forecast (M)
Shares Forecast (M) Fully Diluted Weighted Average Shares Common Stock Outstanding 94.9 -0.3 ~95.5 94.5 0.5 ~95.3 93.9 93.5 93.6 0.8 1.9 1.8 1.8 1.6 1.6 94.5 Shares Est. Employee Est. Shares Est. Weighted Est. Weighting Est. Fully Diluted Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Outstanding @ Equity Awards Out
Slide 34: Capital Expenditures Profile
Capital Expenditures Profile ($M) Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Recurring IBX Maintenance 9 86 35 25 11 Sustaining IT & Network 2 5 4 4 2 Re-configuration Installation 10 14 13 11 9 Subtotal - Recurring 21 105 51 40 23 Non-Recurring IBX Expansion 532 712 445 464 370 (1) IBX Redevelopment 1
Slide 35: FX Rates, Hedging and Currencies
FX Rates, Hedging and Currencies (4) Revenue FX Rates Currency % of Revenues Blended (2) Guidance (1) (2) Blended (3) % of (4) Currency Hedge Rate Guidance Rate Hedge % Revenues Rate 1% CLP AUD 10% USD 1.00 37% SEK JPY 20% 3% Other SGD EUR to USD 1.08 1.10 1.10 66% 20% 4% EUR BRL GBP to USD 1.26 1.2
Slide 36: The Three Pillars of ESG
The Three Pillars of ESG (1) Our Future First sustainability strategy inspires us to dream of a better future Environment Social Governance Awards and recognition In 2023, we received recognition for our Do what it takes Do more for each other Do what’s right sustainable operations, innovations and
Slide 37: Industry Analyst Reports
Industry Analyst Reports Solution Category Reports • Equinix Advances Private AI Infrastructure and Liquid Cooling Technologies – IDC, 12/23 • Analyzing the Economics of Equinix Cloud Adjacent Storage – Enterprise Strategy Group, 2/24 • Coping with Multicloud: How networking teams enable modern busi
Slide 38: 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 39: Appendix: Non-GAAP Financial Reconciliations & Definitions
Appendix: Non-GAAP Financial Reconciliations & Definitions © 2024 Equinix, Inc. 39
Slide 40: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2024 Equinix, Inc. 40
Slide 41: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2024 Equinix, Inc. 41
Slide 42: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2024 Equinix, Inc. 42
Slide 43: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2024 Equinix, Inc. 43
Slide 44: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2024 Equinix, Inc. 44
Slide 45: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2024 Equinix, Inc. 45
Slide 46: Non-GAAP Reconciliations
Non-GAAP Reconciliations Consolidated NOI calculation Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 (unaudited and in millions) Revenues 2,127 2,110 2,061 2,018 1,998 Non-Recurring Revenues (NRR) (1) 86 83 87 84 88 Other Revenues (2) 81 97 52 57 67 (1) Recurring Revenues 1,960 1,930 1,921 1,878 1,843 Cost
Slide 47: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in millions) Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Income from Operations 364 346 381 332 384 Adjustments: Depreciation, Amortization and Accretion Expense 525 462 462 461 459 Stock-based Compensation Expense 101 106 98 104 99 Transaction Costs 2 6 (1) 6 2 (
Slide 48: 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 49: 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 50: Equinix - Where Opportunity Connects
ull EQUINIX WHERE OPPORTUNITY CONNECTS