Slide 1: Q3 2024 Earnings Conference Call
Q3 2024 Earnings Conference Call NASDAQ: EQIX Presented on October 30, 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: Q3 2024 Financial Highlights
Q3 2024 Financial Highlights Revenues Q3 24 Recurring Revenues Non-recurring Revenues Revenues Growth QoQ YoY ($M) $2,159 $2,201 $2,110 $2,127 As-reported 2% 7% $2,061 Normalized and (2) (1) 2% 7% Constant Currency $1,961 $1,976 $2,010 $2,024 $2,059 (1) (3) Normalized MRR 2% 5% Q3 23 Q4 23 Q1 24 Q2
Slide 4: Q3 2024 Consolidated Results
Q3 2024 Consolidated Results Q3 24 $M except for AFFO per Share and Non-Financial Metrics Underlying Guidance FX Actual QoQ YoY vs. Mid-Pt. Revenues (1) $2,190 - 2,210 +$1 -$0 $2,201 2% 7% Cash Gross Profit $1,469 2% 10% Cash Gross Margin % 66.7% Cash SG&A $421 3% 5% Cash SG&A % 0 0 19.1% Adjusted E
Slide 5: Americas Performance
Americas Performance Revenues ($M) Recurring Revenues Non-recurring Revenues Q3 24 Revenues Growth $966 QoQ YoY $958 $932 $939 $913 As-reported 1% 5% Normalized and 0% 6% Constant Currency (1) $893 $894 $916 $914 Normalized and $872 (2) 0% 6% Constant Currency MRR Adjusted EBITDA Q3 24 Q3 23 Q4 23 Q
Slide 6: EMEA Performance
EMEA Performance Revenues Recurring Revenues Non-recurring Revenues Q3 24 ($M) Revenues Growth $751 $727 $743 QoQ YoY $709 $721 As-reported 3% 5% Normalized and (1)(2) 3% 3% Constant Currency $677 $691 $685 $713 $673 Normalized and (3) 4% 4% Constant Currency MRR Adjusted EBITDA Q3 24 Q3 23 Q4 23 Q1
Slide 7: Asia-Pacific Performance
Asia-Pacific Performance Recurring Revenues Non-recurring Revenues Revenues Q3 24 ($M) $500 Revenues Growth QoQ YoY $461 $472 $439 As-reported 6% 14% $427 Normalized and 4% 15% Constant Currency(1)(2) $416 $425 $423 $432 $406 Normalized and (3) 1% 5% Constant Currency MRR Q3 23 Q4 23 Q1 24 Q2 24 Q3
Slide 8: Capital Structure
Capital Structure (1) (3) Available Liquidity During the three months ended September 30, 2024, we issued €600M of 3.650% EUR Green Notes due 2033 and ₣100M of 1.558% CHF Green Notes due 2029 (2) $7.2B Ratings ATM: In Q3, we raised $467M in net proceeds through spot sales and settled outstanding for
Slide 9: Capital Expenditures
Capital Expenditures Recurring Capital Expenditures ($M) 5.0% $105 3.1% • Recurring capital expenditures have historically 2.5% 13% trended between 2% and 5% of revenues, 5% 2.1% $69 annually 1.0% $51 20% $45 12% • Maintenance capital expenditures can vary by 25% 82% 8% 10% 23% quarter based on main
Slide 10: Stabilized Data Center Growth
Stabilized Data Center Growth(1)(2) Stabilized, Expansion & New Data Centers Stabilized Data Center Profitability ($M) Last Quarter $16,023 $6,304 $4,199 $129 Reported # of Data Centers Q3 FY24 Revenues ($M) $18,000 $16,625 26% annual Cash Gross 14 $16,000 Profit on Gross PP&E Expansion: investment(
Slide 11: 2024 Financial Guidance
2024 Financial Guidance ($M except AFFO per Share) FY 2024 Q4 2024 (1) (2) Revenues $8,748 - 8,788 $2,262 - 2,302 (3) (4) Adjusted EBITDA $4,086 - 4,126 $1,010 - 1,050 Adjusted EBITDA Margin % ~47% ~45% Recurring Capital Expenditures $230 - 250 $94 - 114 % of revenues ~3% 4 - 5% Non-recurring Capita
Slide 12: FY24 Guidance
FY24 Guidance Revenues ($M) Adjusted EBITDA ($M) Raise revenues guidance by $36M Raise adjusted EBITDA guidance by $10M As-reported Margin 46.8% Normalized Constant 45.2% Currency growth ex. net power pass-through 7 - 8% (1) Margin excl. Integration 45.4% Costs 47.0%(2) ~7% +10 - 11% $8,748 - 8,788
Slide 13: Q4 24 Guidance
Q4 24 Guidance As-reported Margin Margin excl. Integration costs Revenues ($M) Adjusted EBITDA ($M) 47.6% 45.2% 47.7% 45.5% +$57 (+3%) $2,262 - 2,302 -$23 $2,225 $1,048 $1,062 $2,201 $24 $14 $1,018 - 1,058 $1,010 - 1,050 -$8 (1) Q3 24 Normalizing Q3 24 (1) Q4 24 Q3 24 Normalizing Q3 24 Q4 24 Guidanc
Slide 14: FY24 AFFO and AFFO per Share Guidance
FY24 AFFO and AFFO per Share Guidance (1)(2)(3) Raise AFFO guidance by $18M; AFFO per share growth of 9 - 10% Share Count (Diluted) AFFO per Share (Diluted) Normalized AFFO Constant Currency 11 - 13% YoY Growth 1 Raise AFFO guidance 94.0M 95.5M 95.9M Prior Full Year Guidance $3,310 - 3,370M $32.11 $
Slide 15: Dividend Outlook
Dividend Outlook Annual Cash Dividend ($M) ~19% +20% ~$1,624 $1,359 $1,137 2024E Cash Dividend of ~$1,624M $1,030 $936 • Cash dividend growth since REIT conversion in 2015 43% 42% 42% 45% ~48% 42% Payout Payout Payout Payout Payout Ratio Ratio Ratio Ratio Ratio • Fourth quarter dividend of $4.26 to
Slide 16: Supplemental Financial and Operating Data
Supplemental Financial and Operating Data Platform Equinix makes digital infrastructure more powerful, accessible and sustainable All the Right All the Right All the Right PLACES PARTNERS POSSIBILITIES Place Infrastructure Connect to Everything Seize Opportunity with Wherever You Need It You Need to
Slide 17: Equinix Overview
Equinix Overview (1) • Global footprint: 268 data centers in 73 metros Unique Portfolio of Data • Network dense: ~2,000 networks; 100% of Tier 1 Network Routes Center Assets • Cloud dense: ~3,000 Cloud & IT service providers • Interconnected ecosystems: 478,000+ Total Interconnections across 4,800+
Slide 18: Pressing Our Advantage in All Markets
Pressing Our Advantage in All Markets Equinix global reach expands to 73 metro areas and 34 countries 6 Continents 34 Countries 73 Metro areas 268 Data centers AMERICAS EMEA ASIA – PACIFIC Platform Equinix • Geographic footprint is 29 Metros 29 Metros 15 Metros 111 Data Centers 98 Data Centers 59 Da
Slide 19: xScale: Amplifying Our Balance Sheet to Extend Cloud Leadership
xScale: Amplifying Our Balance Sheet to Extend Cloud Leadership Phase Phase Phase Cost JV Status Status Capacity Leasing Opening ($M) (MW) (MW) Recent Leasing Activity Milan 7x-2 JV Open Q3 2024 $32 5 5 • Leased 20MW of capacity in APAC since our last earnings Previously Madrid 3x-2 JV Q4 2024 $45 5
Slide 20: Customer Diversity
Customer Diversity Diversified revenues across business size and industry reduces exposure to macro volatility Bubble Size: 3Q24 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 Q3 24 Revenues Mix Top 10 Customers (1) Rank Type of Customer %MRR Region Count IBX Count 1 Cloud & IT 2.6% 3 80 Enterprise EMEA 2 Cloud & IT 2.6% 3 85 37% INT 34% 3 Cloud & IT 2.5% 3 58 19%
Slide 22: Non-Financial Metrics
Non-Financial Metrics (1) FY2023 FY2024 Q3 Q4 Q1 Q2 Q3 QoQ Interconnections Americas 201,900 203,600 207,000 208,600 211,000 2,400 EMEA 161,700 159,800 161,300 162,400 164,100 1,700 Asia-Pacific 96,900 98,800 100,100 101,300 102,900 1,600 Total Interconnections 460,500 462,200 468,400 472,300 478,00
Slide 23: Equinix Announced Retail IBX Expansions
Equinix Announced Retail IBX Expansions Expansion Highlights • We have 57 major builds underway across 35 markets in 22 countries including 13 xScale builds • We had 7 openings in 7 metros – Bordeaux, Istanbul, Johannesburg, Melbourne, Milan, New York and Tokyo • Estimated FY24 ending cabinet equiva
Slide 24: Equinix Announced Retail IBX Expansions
Equinix Announced Retail IBX Expansions EMEA / APAC (1) Sellable cabinet equivalents and capital expenditures are approximate and may change based on final construction details * Subject to long-term ground lease © 2024 Equinix, Inc. 24
Slide 25: Real Estate Ownership and Long-Term Leases
Real Estate Ownership and Long-Term Leases (1) Own 163 of 268 Data Centers, totaling 24.1M of 33.4M 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 15% Owned
Slide 26: Same Store Operating Performance
Same Store Operating Performance(1) Revenues ($M) Cash Cost, Gross Profit and PP&E ($M) Trailing 4-Qtr Inter- Services/ Total Non- Total Cash Cost of Cash Gross Cash Gross Gross Cash Return on Category Colocation connection Other Recurring Recurring Revenues Revenues Profit Margin % PP&E Gross PP&E
Slide 27: Consolidated Portfolio Operating Performance
Consolidated Portfolio Operating Performance(1) Cabinets Billed Q3 24 Revenues ($M) Total Cabinet Owned % of # of Data Cabinet Cabinets Utilization Total Total Category Centers Capacity Billed % Recurring Recurring Americas Owned(2) 69 113,100 89,200 79% $673 Leased 40 31,200 25,700 82% $203 America
Slide 28: Data Center Portfolio Composition
Data Center Portfolio Composition Metro Count Stabilized Expansion New xScale Owned Leased Change Summary (1) Atlanta 5 AT2, AT3, AT4, AT5 AT1 AT4 AT1, AT2, AT3, AT5 Bogota 2 BG1 BG2 BG1, BG2 Boston 1 BO2 BO2 Calgary 3 CL1, CL2 CL3 CL3 CL1, CL2 New IBX Chicago 5 CH1, CH2, CH3, CH4, CH7 CH3, CH7 CH1,
Slide 29: Data Center Portfolio Composition
Data Center Portfolio Composition Metro Count Stabilized Expansion New xScale Owned Leased Abidjan 1 AB1 AB1 Change Summary (1) Abu Dhabi 1 AD1 AD1 Accra 1 AC1 AC1 Amsterdam 9 AM1, AM2, AM3, AM4, AM5, AM6, AM7, AM8, AM11 AM1*, AM2*, AM3*, AM4*, AM5, AM6, AM7* AM8, AM11 Barcelona 1 BA1 BA1 New IBX Bo
Slide 30: Adjusted Corporate NOI
Adjusted Corporate NOI(1) ($M, except # of Data Centers) Calculation Of Adjusted Corp NOI Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 # of Data Centers (1) 248 244 243 243 239 (2) Recurring Revenues $2,009 $1,973 $1,960 $1,930 $1,921 Recurring Cash Cost of Revenues Allocation (626) (616) (619) (663) (63
Slide 31: Adjusted NOI Composition – Organic
Adjusted NOI Composition – Organic(1)(2) Q3 2024 Q3 2024 # of Total Cabinet Recurring Quarterly % of Data Cabinet Cabinets Utilization Revenues Adjusted NOI Total Category Centers Capacity Billed % ($M) ($M) NOI Stabilized Owned 93 172,300 146,600 85% $1,030 $654 53% Leased 87 85,400 69,600 81% $520
Slide 32: Components of Net Asset Value
Components of Net Asset Value Q3 24 Quarterly Adjusted Ownership Reference NOI ($M) Stabilized Owned Adjusted NOI Segments $654 Stabilized Leased Adjusted NOI Segments $314 Expansion Owned Adjusted NOI Segments $190 Expansion Leased Adjusted NOI Segments $65 Other Real Estate Owned Adjusted NOI Segm
Slide 33: Shares Forecast (M)
Shares Forecast (M) Fully Diluted Weighted Average Shares Common Stock Outstanding 96.5 ~96.5 0.5 -1.1 ~95.9 94.9 94.9 1.2 94.5 93.9 0.8 1.8 1.8 1.6 1.6 1.5 94.5 Shares Est. Employee ATM Offering Est. Shares Est. Weighted Est. Weighting Est. Fully Diluted Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Outstanding @
Slide 34: Capital Expenditures Profile
Capital Expenditures Profile ($M) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Recurring IBX Maintenance 47 30 9 86 35 Sustaining IT & Network 8 5 2 5 4 Re-configuration Installation 14 11 10 14 13 Subtotal - Recurring 69 45 21 105 51 Non-Recurring IBX Expansion 516 477 532 712 445 (1) IBX Redevelopment
Slide 35: FX Rates, Hedging and Currencies
FX Rates, Hedging and Currencies (2) (3) (4) (1) Blended (2) Guidance Blended % of Currency Hedge Rate Guidance Rate Hedge % Revenues Rate USD 1.00 37% EUR to USD 1.11 1.11 1.11 68% 20% GBP to USD 1.34 1.27 1.28 79% 10% USD to SGD 1.29 9% USD to JPY 144 5% USD to AUD 1.45 5% USD to HKD 7.77 3% USD t
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 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - NON-GAAP PRESENTATION Three Months Ended (unaudited and in milions) September 30, 2024 June 30, 2024 September 30, 2023 We define cash cost of revenues as cost of revenues less depreciation, amortization, accretion and stock-
Slide 41: Non-GAAP Reconciliations
Non-GAAP Reconciliations CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - NON-GAAP PRESENTATION Three Months Ended September June 30, March 31, December 31, September (unaudited and in millions) 30, 2024 2024 2024 2023 30, 2023 The geographic split of our adjusted EBITDA is presented below: America
Slide 42: Non-GAAP Reconciliations
Non-GAAP Reconciliations CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - NON-GAAP PRESENTATION Three Months Ended September June 30, March 31, December 31, September (unaudited and in millions) 30, 2024 2024 2024 2023 30, 2023 Asia-Pacific net income (loss) $ 134 $ 145 $ 142 $ (4) $ 112 Asia-Pacif
Slide 43: Non-GAAP Reconciliations
Non-GAAP Reconciliations CALCULATION OF ADJUSTED EBITDA AND AFFO BY QUARTER Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 (unaudited and in millions) Net income $ 296 $ 301 $ 231 $ 227 $ 276 Adjustments: Income tax expense 54 47 46 43 20 Interest income (35) (29) (24) (28) (23) Interest expense 117 110 10
Slide 44: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in millions, except per share amounts) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Net income $ 296 $ 301 $ 231 $ 227 $ 276 Net loss attributable to non-controlling interests 1 — — — — Net income attributable to common stockholders 297 301 231 227 276 Adjustments:
Slide 45: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands, except per share amounts) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 FFO per share: Basic $ 6.38 $ 6.29 $ 5.84 $ 5.56 $ 6.00 Diluted $ 6.36 $ 6.27 $ 5.81 $ 5.54 $ 5.97 AFFO per share: Basic $ 9.08 $ 9.24 $ 8.91 $ 7.33 $ 8.24 Diluted $ 9.05 $ 9.22 $
Slide 46: Non-GAAP Reconciliations
Non-GAAP Reconciliations Consolidated NOI calculation Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 (unaudited and in millions) Revenues 2,201 2,159 2,127 2,110 2,061 Non-Recurring Revenues (NRR) (1) 83 85 86 83 87 Other Revenues (2) 109 101 81 97 52 Recurring Revenues (1) 2,009 1,973 1,960 1,930 1,921 Co
Slide 47: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in millions) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Income from Operations 425 436 364 346 381 Adjustments: Depreciation, Amortization and Accretion Expense 494 491 525 462 462 Stock-based Compensation Expense 122 124 101 106 98 Transaction Costs 7 3 2 6 (1)
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