Slide 1: Q3 2023 Earnings Conference Call
Q3 2023 Earnings Conference Call NASDAQ: EQIX Presented on October 25, 2023 © 2023 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: Q3 2023 Financial Highlights
Q3 2023 Financial Highlights Revenues Recurring Revenues Non-recurring Revenues Revenues Growth Q3 23 QoQ YoY ($M) $2,018 $2,061 $1,998 $1,871 As-reported 2% 12% $1,841 Normalized and (1) (2) 2% 14% Constant Currency $1,890 $1,918 $1,961 $1,748 $1,773 Normalized and (1) 3% 14% Constant Currency MRR
Slide 4: Q3 2023 Consolidated Results
Q3 2023 Consolidated Results $M except for AFFO per Share and Q3 23 Non-Financial Metrics Guidance Actual QoQ YoY (1) Revenues $2,039 - 2,069 $2,061 2% 12% Cash Gross Profit $1,335 3% 9% Cash Gross Margin % 64.8% Cash SG&A $399 1% 11% Cash SG&A % 19.4% (2) Adjusted EBITDA $908 - 938 $936 4% 7% Adjus
Slide 5: Americas Performance
Americas Performance Revenues ($M) Q3 23 Revenues Growth $914 QoQ YoY $882 $890 $872 As-reported 3% 8% $846 Normalized and (1) 2% 7% Constant Currency Normalized and (2) 2% 8% Constant Currency MRR Adjusted EBITDA Q3 23 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Growth QoQ (3) YoY Adjusted EBITDA As-reported 3%
Slide 6: EMEA Performance
EMEA Performance Revenues Q3 23 ($M) Revenues Growth $691 $687 $709 QoQ YoY $592 $602 As-reported 3% 20% Normalized and (1)(2) 4% 26% Constant Currency Normalized and (3) 4% 27% Constant Currency MRR Adjusted EBITDA Q3 23 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Growth QoQ YoY Adjusted EBITDA Adjusted EBITDA A
Slide 7: Asia-Pacific Performance
Asia-Pacific Performance Revenues Q3 23 ($M) $442 $439 Revenues Growth $425 QoQ YoY $403 $397 As-reported 1% 9% Normalized and (1) 1% 10% Constant Currency Normalized and (2) 2% 10% Constant Currency MRR Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Adjusted EBITDA Q3 23 Growth QoQ YoY Adjusted EBITDA As-reported 3
Slide 8: Capital Structure
Capital Structure (1)(2) Capital Market Updates Available Liquidity • During the three months ended September 30, 2023: $6.7B • We issued CHF300 million (~$328M)(1) of 2.875% Senior Unsecured Notes due 2028 Ratings • We sold forward shares under our ATM program with a future net settlement value of
Slide 9: Capital Expenditures
Capital Expenditures Recurring Capital Expenditures ($M) 4.3% • Recurring capital expenditures have historically 2.7% $80 trended between 2% and 5% of revenues, 15% 2.5% 4% annually 2.0% $50 $52 16% 1.1% $40 24% • Maintenance capital expenditures can vary by 36% 27% 9% quarter based on maintenance s
Slide 10: Stabilized Data Center Growth
(1) (2) Stabilized Data Center Growth Stabilized, Expansion & New Data Centers Stabilized Data Center Profitability ($M) Last Quarter $14,827 $5,821 $3,971 $99 Reported # of Data Centers Q3 23 Revenues ($M) $16,000 $14,739 $14,000 27% annual Cash Gross 9 Profit on Gross PP&E Expansion: investment (5
Slide 11: 2023 Financial Guidance
2023 Financial Guidance ($M except AFFO per Share) FY 2023 Q4 2023 (1) (2) Revenues $8,166 - 8,206 $2,088 - 2,128 (3) (4) Adjusted EBITDA $3,680 - 3,710 $899 - 929 Adjusted EBITDA Margin % ~45% 43-44% Recurring Capital Expenditures $213 - 233 $100 - 120 % of revenues ~3% 5-6% Non-recurring Capital E
Slide 12: FY23 Guidance
FY23 Guidance Revenues ($M) Adjusted EBITDA ($M) Hold underlying revenues guidance against FX headwind of $25M Raise adjusted EBITDA guidance by $17M against FX headwind of $12M Normalized Constant Currency 14 - 15% (1) 44.9% As-reported Margin 45.1% YoY Growth Margin excl. Integration Normalized Co
Slide 13: Q4 23 Guidance
Q4 23 Guidance As-reported Margin Margin ex. Integration costs Revenues ($M) Adjusted EBITDA ($M) 45.4% 43.3% 45.5% 43.6% 3 - 4% $2,088 - 2,128 $936 (2) - 1% -$11 $925 $904 - 934 $2,061 -$5 $899 - 929 -$26 $2,035 (1) Q3 23 Normalizing Q3 23 Q4 23 Q3 23 Normalizing Q3 23 (3) Q4 23 Guidance Integratio
Slide 14: FY23 AFFO and AFFO per Share Guidance
FY23 AFFO and AFFO per Share Guidance (1)(2) Raise AFFO guidance by $27M against FX headwind of $9M; AFFO per share growth of 10 - 11%(3) Share Count (Diluted) (4) AFFO per Share (Diluted) Normalized AFFO Constant Currency 12 - 14% YoY Growth 1 Raise AFFO guidance 91.8M 94.0M 94.0M Prior Full Year G
Slide 15: Dividend Outlook
Dividend Outlook Annual Cash Dividend ($M) ~19% +10% ~$1,357 $1,137 $1,030 2023E Cash Dividend of ~$1,357M $936 $826 • Eight years of continued cash dividend growth since REIT conversion in 2015 43% 43% 42% 42% ~45% 42% Payout Payout Payout Payout Payout • Fourth quarter dividend of $4.26 to be paid
Slide 16: Supplemental Financial and Operating Data
Supplemental Financial and Operating Data All the Right All the Right All the Right PLACES POSSIBILITIES PARTNERS Place Infrastructure Seize Opportunity with Connect to Everything Wherever You Need It Agility, Speed and Confidence You Need to Succeed Global Footprint Experience 251 data centers acro
Slide 17: Equinix Overview
Equinix Overview (1) • Global footprint: 251 data centers in 70 metros Unique Portfolio of Data • Network dense: 2,000+ networks; 100% of Tier 1 Network Routes Center Assets • Cloud dense: 3,000+ Cloud & IT service providers • Interconnected ecosystems: 460,000+ Total Interconnections • 2023 expecte
Slide 18: Pressing Our Advantage in All Markets
Pressing Our Advantage in All Markets Equinix global reach expands to 70 metro areas and 32 countries 6 Continents 32 Countries 70 Metro areas 251 Data centers AMERICAS EMEA ASIA-PACIFIC Platform Equinix 13 Metros % of Customers in • Geographic footprint is 29 Metros 28 Metros 108 Data Centers 91 Da
Slide 19: xScale: Amplifying Our Balance Sheet to Extend Cloud Leadership
xScale: Amplifying Our Balance Sheet to Extend Cloud Leadership Phase Phase Phase Cost JV Status Capacity Leasing Opening ($M) (MW) (MW) Overview São Paulo 5x-3 JV Q4 2023 $36 5 0 AMER • Equinix owns 20% of the JVs while receiving fees for Silicon Valley 12x-1 JV Ready Q1 2024 $293 14 5 managing and
Slide 20: Customer Diversity
Customer Diversity Diversified revenues across business size and industry reduces exposure to macro volatility Bubble Size: 3Q23 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 (1) Q3 23 Revenues Mix Top 10 Customers Rank Type of Customer %MRR Region Count IBX Count 1 Cloud & IT 2.9% 3 74 2 Cloud & IT 2.8% 3 59 EMEA 3 Cloud & IT 2.8% 3 77 Enterprise 35% 35% INT 4 Cl
Slide 22: Non-Financial Metrics
Non-Financial Metrics (1) FY 2022 FY2023 Q3 Q4 Q1 Q2 Q3 QoQ Interconnections Americas 194,600 196,600 198,500 199,900 201,900 2,000 EMEA 160,700 157,700 159,600 160,800 161,700 900 Asia-Pacific 87,800 92,600 94,100 95,600 96,900 1,300 Total Interconnections 443,100 446,900 452,200 456,300 460,500 4,
Slide 23: Expansion Highlights
Equinix Announced Retail IBX Expansions Expansion Highlights • We have 56 major builds underway across 39 markets in 23 countries including 14 xScale builds • We had 6 openings in 6 metros – Dallas, Dubai, Kamloops, Montreal, Silicon Valley and Washington, D.C. • Estimated FY23 ending cabinet equiva
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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 $US millions Ownership Future Phases DX3 phase 1 (Dubai) Open 850 $62 Owned* 900 MD6 phase 1 (Madrid) Open 575 $5 Leased
Slide 25: Real Estate Ownership and Long-Term Leases
Real Estate Ownership and Long-Term Leases (1) Own 144 of 251 Data Centers, totaling 20.8M of 30.2M total gross square feet Recurring Revenues by Global Lease Portfolio Expiration Waterfall (3) (2) Ownership % Leases Renewing by Square Footage Last Possible Expiration Date 62% Lease Owned >=2038 64%
Slide 26: Same Store Operating Performance
Same Store Operating Performance (1) Revenues ($M) Cash Cost, Gross Profit and PP&E ($M) Trailing 4-Qtr Inter- Services/ Total Non- Total Cash Cost Cash Gross Cash Gross Gross Cash Return on Category Colocation connection Other Recurring recurring Revenues of Revenues Profit Margin % PP&E Gross PP&E
Slide 27: Consolidated Portfolio Operating Performance
Consolidated Portfolio Operating Performance (1) Cabinets Billed Q3 23 Revenues ($M) Total Cabinet Owned % of # of Data Cabinet Cabinets Utilization Total Total Category Centers Capacity Billed % Recurring Recurring Americas Owned 67 107,600 82,600 77% $633 (2)(3) Leased 40 32,300 26,900 83% $204 Am
Slide 28: Data Center Portfolio Composition
Data Center Portfolio Composition Metro Count Stabilized Expansion New xScale Owned Leased Atlanta 5 AT2, AT3, AT4, AT5 AT1 AT4 AT1, AT2, AT3, AT5 Change Summary (1)(2)(3) Bogota 2 BG1 BG2 BG1, BG2 Boston 1 BO2 BO2 Calgary 3 CL1, CL2 CL3 CL3 CL1, CL2 New IBX Chicago 5 CH1, CH2, CH4, CH7, CH3 CH3, CH
Slide 29: Data Center Portfolio Composition
Data Center Portfolio Composition Metro Count Stabilized Expansion New xScale Owned Leased Abidjan 1 AB1 AB1 Abu Dhabi 1 AD1 AD1 Accra 1 AC1 AC1 Change Summary (1)(2)(3)(4) Amsterdam 9 AM1, AM2, AM3, AM4, AM5, AM6, AM7, AM8, AM11 AM1*, AM2*, AM3*, AM4*, AM5, AM6, AM7* AM8, AM11 Barcelona 1 BA1 BA1 N
Slide 30: Adjusted Corporate NOI
Adjusted Corporate NOI (1) ($M, except # of Data Centers) Calculation Of Adjusted Corp NOI Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 # of Data Centers (1) 239 238 237 237 239 Recurring Revenues (2) $1,921 $1,878 $1,843 $1,733 $1,713 Recurring Cash Cost of Revenues Allocation (639) (634) (579) (550) (5
Slide 31: Adjusted NOI Composition – Organic
Adjusted NOI Composition – Organic (1) Q3 2023 Q3 2023 # of Total Cabinet Recurring Quarterly Data Cabinet Cabinets Utilization Revenues Adjusted NOI Category Centers Capacity Billed % ($M) ($M) % NOI Stabilized Owned (2) 82 155,500 132,600 85% $926 $582 51% Leased 92 89,500 75,400 84% $533 $316 28%
Slide 32: Components of Net Asset Value
Components of Net Asset Value Q3 23 Quarterly Ownership Reference Adjusted NOI ($M) Stabilized Owned Adjusted NOI Segments $582 Stabilized Leased Adjusted NOI Segments $316 Expansion Owned Adjusted NOI Segments $159 Expansion Leased Adjusted NOI Segments $74 Other Real Estate Owned Adjusted NOI Segm
Slide 33: Shares Forecast (M)
Shares Forecast (M) Fully Diluted Weighted Average Shares Common Stock Outstanding 93.9 0.5 -0.4 ~94.0 93.5 93.6 ~93.9 0.5 92.5 92.6 1.9 1.8 0.8 1.4 1.4 1.6 92.6 Shares Est. Employee ATM Offering Est. Shares Est. Weighted Est. Weighting Est. Fully Diluted Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Outstanding @
Slide 34: Capital Expenditures Profile
Capital Expenditures Profile Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 ($M) Recurring IBX Maintenance 35 25 11 65 24 Sustaining IT & Network 4 4 2 3 18 Re-configuration Installation 13 11 9 12 8 Subtotal - Recurring 52 40 22 80 50 Non-Recurring IBX Expansion 445 464 370 565 377 Transform IT, Network &
Slide 35: FX Rates, Hedging and Currencies
FX Rates, Hedging and Currencies (4) Currency % of Revenues Revenue FX Rates (1) (2) Blended (2) Guidance Blended (3) % of (4) (4) CHF GBP Currency Hedge Rate Guidance 1% Rate Hedge % Revenues 11% Rate EUR HKD USD 1.00 37% 20% 3% AUD EUR to USD 1.06 1.10 1.09 62% 20% 4% GBP to USD 1.22 1.14 1.19 58%
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 • EQIX Vendor Profile: Datacenter and Digital Infrastructure Services – IDC, 12/22 • Digital Services Total Economic Impact (TEI) – Forrester, 9/22 Digital Infrastructure • How to evolve your physical data center to a modern operating model – Gartne
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 © 2023 Equinix, Inc. 39
Slide 40: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2023 Equinix, Inc. 40
Slide 41: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2023 Equinix, Inc. 41
Slide 42: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2023 Equinix, Inc. 42
Slide 43: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2023 Equinix, Inc. 43
Slide 44: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2023 Equinix, Inc. 44
Slide 45: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2023 Equinix, Inc. 45
Slide 46: Non-GAAP Reconciliations
Non-GAAP Reconciliations Consolidated NOI calculation Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 (unaudited and in thousands) Revenues $ 2,061,030 $ 2,018,408 $ 1,998,209 $ 1,870,845 $ 1,840,659 (1) Non-Recurring Revenues (NRR) 87,453 83,853 88,349 86,434 85,014 Other Revenues (2) 52,175 56,642 67,010
Slide 47: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands) Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Income from Operations $ 380,351 $ 332,386 $ 384,121 $ 282,200 $ 333,159 Adjustments: Depreciation, Amortization and Accretion Expense 461,842 460,461 458,995 438,492 431,668 Stock-based Compensation Expens
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