Slide 1: Q2 2024 Earnings Conference Call
Q2 2024 Earnings Conference Call NASDAQ EQIX Presented on August 7, 2024 © 2024 Equinix, Inc.
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: Q2 2024 Financial Highlights
Q2 2024 Financial Highlights Revenues Q2 24 Recurring Revenues Non-recurring Revenues Revenues Growth QoQ YoY ($M) $2,110 $2,127 $2,159 $2,019 $2,061 As-reported 2% 7% Normalized and (2) (1) 2% 8% Constant Currency $1,918 $1,961 $1,976 $2,010 $2,024 (1) Normalized MRR 1% 6% Q2 23 Q3 23 Q4 23 Q1 24 Q
Slide 4: Q2 2024 Consolidated Results
Q2 2024 Consolidated Results Q2 24 $M except for AFFO per Share and Non-Financial Metrics Underlying Guidance FX Actual QoQ YoY vs. Mid-Pt. (1) Revenues $2,148 - 2,168 +$7 -$6 $2,159 2% 7% Cash Gross Profit $1,443 2% 11% Cash Gross Margin % 66.9% Cash SG&A $407 -3% 3% Cash SG&A % 0 0 18.9% (2) Adjus
Slide 5: Americas Performance
Americas Performance Revenues ($M) Recurring Revenues Non-recurring Revenues Q2 24 Revenues Growth $966 QoQ YoY $932 $939 $913 As-reported 3% 9% $890 Normalized and (1) 3% 9% Constant Currency $893 $894 $916 Normalized and $854 $872 (2) 3% 8% Constant Currency MRR Adjusted EBITDA Q2 24 Q2 23 Q3 23 Q
Slide 6: EMEA Performance
EMEA Performance Revenues Recurring Revenues Non-recurring Revenues Q2 24 ($M) Revenues Growth $751 $727 QoQ YoY $709 $721 $687 As-reported 1% 5% Normalized and (1)(2) 1% 5% Constant Currency $653 $673 $677 $691 $685 Normalized and (2)(3) 1% 5% Constant Currency MRR Adjusted EBITDA Q2 24 Q2 23 Q3 23
Slide 7: Asia-Pacific Performance
Asia-Pacific Performance Recurring Revenues Non-recurring Revenues Revenues Q2 24 ($M) $472 Revenues Growth $461 QoQ YoY $442 $439 $427 As-reported 2% 7% Normalized and (1) (2) 5% 11% Constant Currency $411 $416 $406 $425 $423 Normalized and (3) 2% 7% Constant Currency MRR Q2 23 Q3 23 Q4 23 Q1 24 (4
Slide 8: Capital Structure
Capital Structure (1) (2) Available Liquidity During the three months ended June 30, 2024, we issued $750M of 5.5% USD Notes due 2034. We swapped this debt to EUR with an effective coupon of approximately 3.9% $6.4B Ratings Baa2 / BBB / BBB+ Net Leverage Ratio(6) (3)(4) Debt Maturity Profile ($M) 3.
Slide 9: Capital Expenditures
Capital Expenditures Recurring Capital Expenditures ($M) 5.0% $105 • Recurring capital expenditures have historically 2.5% 13% trended between 2% and 5% of annual 2.0% 5% 2.1% revenues 1.0% $51 $45 • Maintenance capital expenditures can vary by $40 25% 82% 27% 8% 10% 23% quarter based on maintenance
Slide 10: Stabilized Data Center Growth
Stabilized Data Center Growth (1)(2) Stabilized, Expansion & New Data Centers Stabilized Data Center Profitability ($M) Last Quarter (6) $15,966 $6,261 $4,141 $129 Reported # of Data Centers Q2 FY24 Revenues ($M) $18,000 $16,023 26% annual Cash Gross 10 $16,000 Profit on Gross PP&E Expansion: $440 i
Slide 11: 2024 Financial Guidance
2024 Financial Guidance ($M except AFFO per Share) FY 2024 Q3 2024 (1) (2) Revenues $8,692 - 8,772 $2,190 - 2,210 (3) (4) Adjusted EBITDA $4,066 - 4,126 $1,029 - 1,049 Adjusted EBITDA Margin % ~47% ~47% Recurring Capital Expenditures $227 - 247 $62 - 82 % of revenues ~3% 3 - 4% Non-recurring Capital
Slide 12: FY24 Guidance
FY24 Guidance Revenues ($M) Adjusted EBITDA ($M) On track to deliver full year guidance Raise underlying adjusted EBITDA guidance by $15M As-reported Margin 46.9% Normalized Constant 45.2% Currency growth ex. net power price decreases 7 - 8% (1) Margin excl. Integration 45.4% Costs 47.1% +6 - 7% +10
Slide 13: Q3 24 Guidance
Q3 24 Guidance As-reported Margin Margin excl. Integration costs Revenues ($M) Adjusted EBITDA ($M) 48.0% 47.2% 48.2% 47.5% +$38 +1 - 2% $2,190 - 2,210 $0 $2,162 $1,044 $1,034 - 1,054 $2,159 $1,036 -$5 $1,029 - 1,049 $4 $8 (1) Q2 24 Normalizing Q2 24 (1) Q3 24 Q2 24 Normalizing Q2 24 Q3 24 Guidance
Slide 14: FY24 AFFO and AFFO per Share Guidance
FY24 AFFO and AFFO per Share Guidance (1)(2)(3) Raise underlying AFFO guidance by $15M against FX headwind of $5M; AFFO per share growth of 9 - 11% Share Count (Diluted) AFFO per Share (Diluted) Normalized AFFO Constant Currency 11 - 13% YoY Growth 1 Raise AFFO guidance 94.0M 95.5M 95.5M Prior Full
Slide 15: Dividend Outlook
Dividend Outlook Annual Cash Dividend ($M) ~19% +20% ~$1,618 $1,359 $1,137 2024E Cash Dividend of ~$1,618M $1,030 $936 • Nine years of continued cash dividend growth since REIT conversion in 2015 43% 42% 42% 45% ~49% 42% Payout Payout Payout Payout Payout Ratio Ratio Ratio Ratio Ratio • Third quarte
Slide 16: Supplemental Financial and Operating Data
Supplemental Financial and Operating Data Platform Equinix makes digital infrastructure more powerful, accessible and sustainable All the Right All the Right All the Right PLACES PARTNERS POSSIBILITIES Place Infrastructure Connect to Everything Seize Opportunity with Wherever You Need It You Need to
Slide 17: Equinix Overview
Equinix Overview (1) • Global footprint: 264 data centers in 72 metros Unique Portfolio of Data • Network dense: ~2,000 networks; 100% of Tier 1 Network Routes Center Assets • Cloud dense: ~3,000 Cloud & IT service providers • Interconnected ecosystems: 472,000+ Total Interconnections across 4,800+
Slide 18: Pressing Our Advantage in All Markets
Pressing Our Advantage in All Markets Equinix global reach expands to 72 metro areas and 33 countries 6 Continents 33 Countries 72 Metro areas 264 Data centers AMERICAS EMEA ASIA – PACIFIC Platform Equinix • Geographic footprint is 29 Metros 28 Metros 15 Metros 58 Data Centers 110 Data Centers 96 Da
Slide 19: xScale: Amplifying Our Balance Sheet to Extend Cloud Leadership
xScale: Amplifying Our Balance Sheet to Extend Cloud Leadership Phase Phase Phase Cost JV Status Status Capacity Leasing Opening ($M) (MW) (MW) Recent Activity Silicon Valley 12x-1 JV Open Open $272 14 14 AMER Previously Mexico City 3x-1 JV Q2 2025 $61 4 0 • Leased 17MW of capacity since our last ea
Slide 20: Customer Diversity
Customer Diversity Diversified revenues across business size and industry reduces exposure to macro volatility Bubble Size: 2Q24 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 Q2 24 Revenues Mix (1) Top 10 Customers Rank Type of Customer MRR % Region Count IBX Count 1 Cloud & IT 2.6% 3 80 EMEA 2 Cloud & IT 2.6% 3 88 Enterprise 36% 33% 3 Cloud & IT 2.5% 3 56 INT 18%
Slide 22: Non-Financial Metrics
Non-Financial Metrics (1) FY2023 FY2024 Q2 Q3 Q4 Q1 Q2 QoQ Interconnections Americas 199,900 201,900 203,600 207,000 208,600 1,600 EMEA 160,800 161,700 159,800 161,300 162,400 1,100 Asia-Pacific 95,600 96,900 98,800 100,100 101,300 1,200 (2) Total Interconnections 456,300 460,500 462,200 468,400 472
Slide 23: Equinix Announced Retail IBX Expansions
Equinix Announced Retail IBX Expansions Expansion Highlights • We have 54 major builds underway across 36 markets in 24 countries including 15 xScale builds • We had 10 openings in 8 metros – Hamburg, Johor, Munich, New York, Osaka, Silicon Valley, Sydney and Warsaw • Estimated FY24 ending cabinet e
Slide 24: Equinix Announced Retail IBX Expansions
Equinix Announced Retail IBX Expansions EMEA / APAC Cabinet(1) Equivalent 2024 2025 2026 2027 Total Capex(1) Capacity In IBX Data Center Status Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 $US millions Ownership Future Phases HH1 phase 2 (Hamburg) Open 325 $27 Owned - MU4 phase 2 (Munich) Open 750 $22 Own
Slide 25: Real Estate Ownership and Long-Term Leases
Real Estate Ownership and Long-Term Leases (1) Own 161 of 264 Data Centers, totaling 23.7M of 32.8M total gross square feet, including the purchase of HE5 and MD2 Recurring Revenues by Global Lease Portfolio Expiration Waterfall (3) (2) Ownership % Leases Renewing by Square Footage 47% Last Possible
Slide 26: Same Store Operating Performance
Same Store Operating Performance (1) Revenues ($M) Cash Cost, Gross Profit and PP&E ($M) Trailing 4-Qtr Inter- Services/ Total Non- Total Cash Cost Cash Gross Cash Gross Gross Cash Return on Category Colocation connection Other Recurring Recurring Revenues of Revenues Profit Margin % PP&E Gross PP&E
Slide 27: Consolidated Portfolio Operating Performance
Consolidated Portfolio Operating Performance (1) Cabinets Billed Q2 24 Revenues ($M) Total Cabinet Owned % of # of Data Cabinet Cabinets Utilization Total Total Category Centers Capacity Billed % Recurring Recurring Americas Owned(2) 68 114,300 87,600 77% $671 Leased 40 31,800 26,300 83% $204 Americ
Slide 28: Data Center Portfolio Composition
Data Center Portfolio Composition Metro Count Stabilized Expansion New xScale Owned Leased Change Summary (1) Atlanta 5 AT2, AT3, AT4, AT5 AT1 AT4 AT1, AT2, AT3, AT5 Bogota 2 BG1 BG2 BG1, BG2 Boston 1 BO2 BO2 Calgary 3 CL1, CL2 CL3 CL3 CL1, CL2 New xScale Chicago 5 CH1, CH2, CH3, CH4, CH7 CH3, CH7 C
Slide 29: Data Center Portfolio Composition
Data Center Portfolio Composition Metro Count Stabilized Expansion New xScale Owned Leased Abidjan 1 AB1 AB1 Change Summary (1) Abu Dhabi 1 AD1 AD1 Accra 1 AC1 AC1 Amsterdam 9 AM1, AM2, AM3, AM4, AM5, AM6, AM7, AM8, AM11 AM1*, AM2*, AM3*, AM4*, AM5, AM6, AM7* AM8, AM11 New IBX Barcelona 1 BA1 BA1 JH
Slide 30: Adjusted Corporate NOI
(1) Adjusted Corporate NOI ($M, except # of Data Centers) Calculation Of Adjusted Corp NOI Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 # of Data Centers 244 243 243 239 238 (2) Recurring Revenues $1,973 $1,960 $1,930 $1,921 $1,878 Recurring Cash Cost of Revenues Allocation (616) (619) (663) (639) (634)
Slide 31: Adjusted NOI Composition – Organic
Adjusted NOI Composition – Organic (1)(2) Q2 2024 Q2 2024 # of Total Cabinet Recurring Quarterly Data Cabinet Cabinets Utilization Revenues Adjusted NOI Category Centers Capacity Billed % ($M) ($M) % NOI Stabilized Owned 93 173,200 145,900 84% $1,016 $645 53% Leased 87 86,400 70,300 81% $517 $318 26
Slide 32: Components of Net Asset Value
Components of Net Asset Value Q2 24 Quarterly Ownership Reference Adjusted NOI ($M) Stabilized Owned Adjusted NOI Segments $645 Stabilized Leased Adjusted NOI Segments $318 Expansion Owned Adjusted NOI Segments $186 Expansion Leased Adjusted NOI Segments $53 Other Real Estate Owned Adjusted NOI Segm
Slide 33: Shares Forecast (M)
Shares Forecast (M) Fully Diluted Weighted Average Shares Common Stock Outstanding 94.9 94.9 -0.3 ~95.5 94.5 0.5 ~95.3 93.9 93.6 0.8 1.8 1.8 1.8 1.6 1.6 94.5 Shares Est. Employee Est. Shares Est. Weighted Est. Weighting Est. Fully Diluted Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Outstanding @ Equity Awards Out
Slide 34: Capital Expenditures Profile
Capital Expenditures Profile ($M) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Recurring IBX Maintenance 30 9 86 35 25 Sustaining IT & Network 5 2 5 4 4 Re-configuration Installation 11 10 14 13 11 Subtotal - Recurring 45 21 105 51 40 Non-Recurring IBX Expansion 477 532 712 445 464 (1) IBX Redevelopment
Slide 35: FX Rates, Hedging and Currencies
FX Rates, Hedging and Currencies Revenue FX Rates (1) Blended (2) (3) (4) Guidance (2) Blended % of Currency Hedge Rate Guidance Rate Hedge % Revenues Rate USD 1.00 38% EUR to USD 1.09 1.11 1.10 69% 20% GBP to USD 1.28 1.27 1.27 76% 9% USD to SGD 1.33 8% USD to JPY 147 6% USD to AUD 1.54 4% USD to H
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 Digital Infrastructure • IDC MarketScape - Asia/Pacific Datacenter Operations and Management 2023 Vendor Assessment – IDC, 11/23 • IDC Marketscape - WW Datacenter Services 2023 Vendor Assessment – IDC, 10/23 • Coping with Multicloud: How networking
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 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 (unaudited and in millions) Revenues 2,159 2,127 2,110 2,061 2,018 Non-Recurring Revenues (NRR) (1) 85 86 83 87 84 Other Revenues (2) 101 81 97 52 57 (1) Recurring Revenues 1,973 1,960 1,930 1,921 1,878 Cos
Slide 47: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in millions) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Income from Operations 436 364 346 381 332 Adjustments: Depreciation, Amortization and Accretion Expense 491 525 462 462 461 Stock-based Compensation Expense 124 101 106 98 104 Transaction Costs 3 2 6 (1) 6
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