Slide 1: Q4 2023 Earnings Conference Call
Q4 2023 Earnings Conference Call NASDAQ: EQIX Presented on February 14, 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: 2023 Financial Highlights
2023 Financial Highlights Revenues Q4 23 FY23 Recurring Revenues Non-recurring Revenues Revenues Growth QoQ YoY YoY ($M) $8,188 $7,263 As-reported 2% 13% 13% $6,636 $5,999 $5,562 Normalized and (1) (2) 3% 15% 15% Constant Currency $7,745 $6,220 $6,871 (1) $5,238 $5,658 Normalized MRR 2% 14% 15% FY19
Slide 4: Q4 2023 Consolidated Results
Q4 2023 Consolidated Results $M except for AFFO per Share and Q4 23 FY23 Non-Financial Metrics Guidance Actual QoQ YoY Guidance Actual YoY (1) Revenues $2,088 - 2,128 $2,110 2% 13% $8,166 - 8,206 $8,188 13% Cash Gross Profit $1,354 1% 10% $5,319 10% Cash Gross Margin % 64.2% 65.0% Cash SG&A $434 9%
Slide 5: Americas Performance
Americas Performance Revenues ($M) Q4 23 Revenues Growth $932 QoQ YoY $914 $882 $890 As-reported 2% 7% $872 Normalized and (1) 2% 6% Constant Currency Normalized and (2) 3% 7% Constant Currency MRR Adjusted EBITDA Q4 23 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Growth QoQ YoY Adjusted EBITDA As-reported 1% 4% A
Slide 6: EMEA Performance
EMEA Performance Revenues Q4 23 ($M) Revenues Growth $751 QoQ YoY $691 $687 $709 $602 As-reported 6% 25% Normalized and (1)(2) 7% 33% Constant Currency Normalized and (3) 2% 27% Constant Currency MRR Adjusted EBITDA Q4 23 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 (4) Growth QoQ YoY Adjusted EBITDA Adjusted EBIT
Slide 7: Asia-Pacific Performance
Asia-Pacific Performance Revenues Q4 23 ($M) $442 $439 Revenues Growth $425 $428 QoQ YoY $397 As-reported 3% 8% Normalized and (1) 1% 8% Constant Currency Normalized and (2) 1% 9% Constant Currency MRR Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Adjusted EBITDA Q4 23 Growth QoQ YoY Adjusted EBITDA As-reported 14%
Slide 8: Capital Structure
Capital Structure (1) (2) Capital Market Updates Available Liquidity • During the three months ended December 31, 2023: $6.5B • We settled outstanding at-the-market (ATM) equity forward shares for approximately $433M Ratings of net proceeds Baa2 / BBB / BBB+ • We sold forward additional shares under
Slide 9: Capital Expenditures
Capital Expenditures Recurring Capital Expenditures ($M) 5.0% 4.3% $105 13% • Recurring capital expenditures have historically $80 5% trended between 2% and 5% of revenues, 2.5% 15% annually 4% 2.0% $52 1.1% $40 24% 82% • Maintenance capital expenditures can vary by 81% 27% 9% quarter based on maint
Slide 10: Stabilized Data Center Growth
(1) (2) Stabilized Data Center Growth Stabilized, Expansion & New Data Centers Stabilized Data Center Profitability ($M) Last Quarter $14,739 $5,928 $4,007 $109 Reported # of Data Centers Q4 FY23 Revenues ($M) $16,000 $15,129 27% annual Cash Gross 13 $14,000 Profit on Gross PP&E Expansion: investmen
Slide 11: 2024 Financial Guidance
2024 Financial Guidance ($M except AFFO per Share) FY 2024 Q1 2024 (1) (2) Revenues $8,793 - 8,893 $2,127 - 2,147 (3) (4) Adjusted EBITDA $4,089 - 4,169 $960 - 980 Adjusted EBITDA Margin % ~47% 45 - 46% Recurring Capital Expenditures $210 - 230 $14 - 34 % of revenues 2 - 3% 1 - 2% Non-recurring Capi
Slide 12: FY24 Guidance
FY24 Guidance Revenues ($M) Adjusted EBITDA ($M) 2024 YoY as-reported growth of 7 - 9% 160 bps margin expansion from operating leverage and power price decreases Normalized Constant (1) Currency growth ex. 7 - 8% 45.2% As-reported Margin 46.7% Power Pass-through 45.4%(2) Margin excl. Integration Cos
Slide 13: Q1 24 Guidance
Q1 24 Guidance As-reported Margin Margin excl. Integration costs Revenues ($M) Adjusted EBITDA ($M) Q4 includes $40M of EMEA xScale NRR fees associated with 43.6% 45.4% leasing activity 43.8% 45.6% $26 -$7 1 - 2% ~0% $50 $2,144 5% $2,127 - 2,147 $32 $33 3% $965 - 985 $960 - 980 $2,110 -$5 $943 $920
Slide 14: FY24 AFFO and AFFO per Share Guidance
FY24 AFFO and AFFO per Share Guidance (1)(2) Normalized AFFO growth of 9 - 12% and AFFO per share growth of 8 - 10%, driving shareholder value Share Count (Diluted) ($M except AFFO per Share) AFFO per Share (Diluted) 90.4M 91.8M 94.0M 95.6M 95.6M Normalized Constant Currency YoY Growth $27.11 $29.55
Slide 15: Dividend Outlook
Dividend Outlook Annual Cash Dividend ($M) ~19% +20% ~$1,619 $1,359 $1,137 2024E Cash Dividend of ~$1,619M $1,030 $936 • Nine years of continued cash dividend growth since REIT conversion in 2015 43% 42% 42% 45% ~48% 42% Payout Payout Payout Payout Payout Ratio Ratio Ratio Ratio Ratio • First quarte
Slide 16: Supplemental Financial and Operating Data
Supplemental Financial and Operating Data All the Right All the Right All the Right PLACES PARTNERS POSSIBILITIES Place Infrastructure Connect to Everything Seize Opportunity with Wherever You Need It You Need to Succeed Agility, Speed and Confidence Global Footprint Global Ecosystem Experience 260
Slide 17: Equinix Overview
Equinix Overview (1) • Global footprint: 260 data centers in 71 metros Unique Portfolio of Data • Network dense: 2,000+ networks; 100% of Tier 1 Network Routes Center Assets • Cloud dense: 3,000+ Cloud & IT service providers • Interconnected ecosystems: 462,000+ Total Interconnections • 2024 expecte
Slide 18: Pressing Our Advantage in All Markets
Pressing Our Advantage in All Markets Equinix global reach expands to 71 metro areas and 33 countries 6 Continents 33 Countries 71 Metro areas 260 Data centers AMERICAS EMEA ASIA-PACIFIC Platform Equinix 14 Metros % of Customers in • Geographic footprint is 29 Metros 28 Metros 109 Data Centers 96 Da
Slide 19: xScale: Amplifying Our Balance Sheet to Extend Cloud Leadership
xScale: Amplifying Our Balance Sheet to Extend Cloud Leadership Phase Phase Phase Cost JV Status Capacity Leasing Opening ($M) (MW) (MW) Recent Leasing Activity São Paulo 5x-3 JV Open $36 5 0 AMER Silicon Valley 12x-1 JV Ready Q1 2024 $293 14 5 • Leased 90MW of capacity since our last earnings call
Slide 20: Customer Diversity
Customer Diversity Diversified revenues across business size and industry reduces exposure to macro volatility Bubble Size: 4Q23 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 Q4 23 Revenues Mix Top 10 Customers (1) Rank Type of Customer %MRR Region Count IBX Count 1 Cloud & IT 2.8% 3 74 2 Cloud & IT 2.7% 3 77 Enterprise EMEA 3 Cloud & IT 2.7% 3 56 36% 36% INT 4 Cl
Slide 22: Non-Financial Metrics
Non-Financial Metrics (1) FY 2022 FY2023 Organic Annual Total Underlying Acquisitions & Q4 Q1 Q2 Q3 Q4 Reconciliation Q4 QoQ Interconnections Americas 196,600 198,500 199,900 201,900 203,300 300 203,600 1,400 EMEA 162,400 159,600 160,800 161,700 162,700 (2,900) 159,800 1,000 Asia-Pacific 88,600 94,1
Slide 23: Equinix Announced Retail IBX Expansions
Equinix Announced Retail IBX Expansions Expansion Highlights • We have 49 major builds underway across 35 markets in 21 countries including 11 xScale builds • We had 14 openings in 12 metros – Dublin, Frankfurt, Kuala Lumpur, Madrid, Milan, Montreal, Paris, São Paulo, Seattle, Seoul, Tokyo and Washi
Slide 24: Equinix Announced Retail IBX Expansions
Equinix Announced Retail IBX Expansions EMEA / APAC (1) Cabinet Equivalent (1) 2023 2024 2025 2026 Total Capex Capacity In IBX Data Center Status Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 $US millions Ownership Future Phases FR13 phase 1 (Frankfurt) Open 1,125 $104 Owned 550 LG2 phase 2 (Lagos) Previously Annou
Slide 25: Real Estate Ownership and Long-Term Leases
Real Estate Ownership and Long-Term Leases (1) Own 152 of 260 Data Centers, including recent acquisition of LD8 Recurring Revenues by Global Lease Portfolio Expiration Waterfall (3) (2) Ownership % Leases Renewing by Square Footage Last Possible Expiration Date 48% Lease >=2039 Owned 16% 66% 14% 11%
Slide 26: Same Store Operating Performance
Same Store Operating Performance (1) Revenues ($M) Cash Cost, Gross Profit and PP&E ($M) Trailing 4-Qtr Inter- Services/ Total Non- Total Cash Cost Cash Gross Cash Gross Gross Cash Return on Category Colocation connection Other Recurring Recurring Revenues of Revenues Profit Margin % PP&E Gross PP&E
Slide 27: Consolidated Portfolio Operating Performance
Consolidated Portfolio Operating Performance (1) Cabinets Billed Q4 23 Revenues ($M) Total Cabinet Owned % of # of Data Cabinet Cabinets Utilization Total Total Category Centers Capacity Billed % Recurring Recurring Americas Owned (2) 68 113,300 86,300 76% $648 Leased 40 32,100 26,600 83% $205 Ameri
Slide 28: Data Center Portfolio Composition
Data Center Portfolio Composition Metro Count Stabilized Expansion New xScale Owned Leased Change Summary (1) Atlanta 5 AT2, AT3, AT4, AT5 AT1 AT4 AT1, AT2, AT3, AT5 Bogota 2 BG1 BG2 BG1, BG2 Boston 1 BO2 BO2 Calgary 3 CL1, CL2 CL3 CL3 CL1, CL2 New IBX Chicago 5 CH1, CH2, CH3, CH4, CH7 CH3, CH7 CH1,
Slide 29: Data Center Portfolio Composition
Data Center Portfolio Composition Metro Count Stabilized Expansion New xScale Owned Leased Abidjan 1 AB1 AB1 Abu Dhabi 1 AD1 AD1 Change Summary (1) Accra 1 AC1 AC1 Amsterdam 9 AM1, AM2, AM3, AM4, AM5, AM6, AM7, AM8, AM11 AM1*, AM2*, AM3*, AM4*, AM5, AM6, AM7* AM8, AM11 Barcelona 1 BA1 BA1 New IBX Bo
Slide 30: Adjusted Corporate NOI
Adjusted Corporate NOI (1) ($M, except # of Data Centers) Calculation Of Adjusted Corp NOI Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 # of Data Centers (1) 243 239 238 237 237 Recurring Revenues (2) $1,930 $1,921 $1,878 $1,843 $1,733 Recurring Cash Cost of Revenues Allocation (663) (639) (634) (579) (5
Slide 31: Adjusted NOI Composition – Organic
Adjusted NOI Composition – Organic (1) Q4 2023 Q4 2023 # of Total Cabinet Recurring Quarterly Data Cabinet Cabinets Utilization Revenues Adjusted NOI Category Centers Capacity Billed % ($M) ($M) % NOI Stabilized Owned (2) 82 156,800 135,300 86% $925 $572 52% Leased 92 89,400 74,600 83% $533 $299 27%
Slide 32: Components of Net Asset Value
Components of Net Asset Value Q4 23 Quarterly Ownership Reference Adjusted NOI ($M) Stabilized Owned Adjusted NOI Segments $572 Stabilized Leased Adjusted NOI Segments $299 Expansion Owned Adjusted NOI Segments $171 Expansion Leased Adjusted NOI Segments $59 Other Real Estate Owned Adjusted NOI Segm
Slide 33: Shares Forecast (M)
Shares Forecast (M) Fully Diluted Weighted Average Shares Common Stock Outstanding 94.5 -0.3 ~95.6 0.6 93.9 93.5 93.6 ~95.3 92.6 0.9 1.9 1.8 1.4 1.6 1.6 94.5 Shares Est. Employee Est. Shares Est. Weighted Est. Weighting Est. Fully Diluted Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Outstanding @ Equity Awards Out
Slide 34: Capital Expenditures Profile
Capital Expenditures Profile Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 ($M) Recurring IBX Maintenance 86 35 25 11 65 Sustaining IT & Network 5 4 4 2 3 Re-configuration Installation 14 13 11 9 12 Subtotal - Recurring 105 52 40 22 80 Non-Recurring IBX Expansion 712 445 464 370 565 Transform IT, Network
Slide 35: FX Rates, Hedging and Currencies
FX Rates, Hedging and Currencies (4) Currency % of Revenues Revenue FX Rates Blended (2) Guidance (1) (2) Blended (3) % of (4) Currency Hedge Rate Guidance 1% Rate Hedge % Revenues CLP AUD Rate 10% SEK JPY USD 1.00 37% 21% 3% Other SGD EUR to USD 1.10 1.10 1.10 66% 21% 3% EUR BRL GBP to USD 1.27 1.2
Slide 36: 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 Awards and recognition In 2022, we received recognition for our sustainable Do what it takes to protect the Do more for each other to Do what’s right to operat
Slide 37: Industry Analyst Reports
Industry Analyst Reports Solution Category Reports • The Benefits of Hybrid Multicloud Digital Infrastructure – IDC, 10/23 • Coping with Multicloud: How networking teams enable modern business – Enterprise Strategy Group, 10/23 • Streamline Multicloud Networking on a global platform with ondemand di
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 © 2024 Equinix, Inc. 46
Slide 47: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2024 Equinix, Inc. 47
Slide 48: Non-GAAP Reconciliations
Non-GAAP Reconciliations Consolidated NOI calculation Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 (unaudited and in thousands) Revenues $ 2,110,489 $ 2,061,030 $ 2,018,408 $ 1,998,209 $ 1,870,845 (1) Non-Recurring Revenues (NRR) 82,976 87,453 83,853 88,349 86,434 Other Revenues (2) 97,430 52,175 56,642
Slide 49: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands) Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Income from Operations $ 346,416 $ 380,351 $ 332,386 $ 384,121 $ 282,200 Adjustments: Depreciation, Amortization and Accretion Expense 462,367 461,842 460,461 458,995 438,492 Stock-based Compensation Expens
Slide 50: 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 51: 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 52: © 2024 Equinix, Inc.
ull EQUINIX WHERE OPPORTUNITY CONNECTS