Slide 1: Q2 2023 Earnings Conference Call
Q2 2023 Earnings Conference Call NASDAQ: EQIX Presented on August 2, 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: Q2 2023 Financial Highlights
Q2 2023 Financial Highlights Revenues Recurring Revenues Non-recurring Revenues Revenues Growth Q2 23 QoQ YoY ($M) $1,998 $2,018 $1,817 $1,841 $1,871 As-reported 1% 11% Normalized and (1) 2% 14% Constant Currency $1,890 $1,918 $1,707 $1,748 $1,773 Normalized and (1) 2% 15% Constant Currency MRR Q2 2
Slide 4: Q2 2023 Consolidated Results
Q2 2023 Consolidated Results $M except for AFFO per Share and Q2 23 Non-Financial Metrics Guidance Actual QoQ YoY (1) Revenues $1,995 - 2,025 $2,018 1% 11% Cash Gross Profit $1,298 -3% 7% Cash Gross Margin % 64.3% Cash SG&A $396 2% 11% Cash SG&A % 19.6% (2) Adjusted EBITDA $881 - 911 $901 -5% 5% Adj
Slide 5: Americas Performance
Americas Performance Revenues ($M) Q2 23 Revenues Growth $890 QoQ YoY $872 $882 $846 As-reported 1% 7% $831 Normalized and (1) 1% 7% Constant Currency Normalized and (2) 2% 8% Constant Currency MRR Adjusted EBITDA Q2 23 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Growth QoQ (3) YoY Adjusted EBITDA As-reported 3%
Slide 6: EMEA Performance
EMEA Performance Revenues Q2 23 ($M) Revenues Growth $691 $687 QoQ YoY $599 $592 $602 As-reported 1% 15% Normalized and (1)(2) 1% 21% Constant Currency Normalized and (3) 3% 26% Constant Currency MRR Adjusted EBITDA Q2 23 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 (4) Growth QoQ YoY Adjusted EBITDA Adjusted EBIT
Slide 7: Asia-Pacific Performance
Asia-Pacific Performance Revenues Q2 23 ($M) $442 Revenues Growth $425 QoQ YoY $403 $397 $387 As-reported 4% 14% Normalized and (1)(2) 6% 16% Constant Currency Normalized and (3) 3% 15% Constant Currency MRR Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Adjusted EBITDA Q2 23 Growth QoQ YoY Adjusted EBITDA As-report
Slide 8: Capital Structure
Capital Structure (1)(2) Capital Market Updates Available Liquidity • During the three months ended June 30, 2023, we sold forward shares under our ATM program $6.5B with a future net settlement value of approximately $200 million. None of such forward sales have Ratings been settled Baa2 / BBB / BB
Slide 9: Capital Expenditures
Capital Expenditures Recurring Capital Expenditures ($M) 4.3% • Recurring capital expenditures have historically 2.7% $80 trended between 2% and 5% of revenues, 15% annually 1.9% 4% 2.0% $50 16% 1.1% $40 • Maintenance capital expenditures can vary by $35 22% 36% 81% 27% quarter based on maintenance
Slide 10: Stabilized Data Center Growth
(1) (2) Stabilized Data Center Growth Stabilized, Expansion & New Data Centers Stabilized Data Center Profitability ($M) Last Quarter $14,549 $5,598 $3,860 $96 Reported # of Data Centers Q2 23 Revenues ($M) 27% annual Cash Gross Profit on Gross PP&E Expansion: investment (5) (3) $441 29% Stabilized:
Slide 11: 2023 Financial Guidance
2023 Financial Guidance (1) ($M except AFFO per Share) FY 2023 Q3 2023 (2) (3) Revenues $8,171 - 8,251 $2,039 - 2,069 (4) (5) Adjusted EBITDA $3,660 - 3,720 $908 - 938 Adjusted EBITDA Margin % ~45% ~45% Recurring Capital Expenditures $208 - 228 $58 - 68 % of revenues ~3% ~3% Non-recurring Capital Ex
Slide 12: FY23 Guidance
FY23 Guidance Revenues ($M) Adjusted EBITDA ($M) Maintain underlying revenues guidance; update for FX headwind of $14M Raising adjusted EBITDA guidance by $20M against FX headwind of $5M Normalized Constant Currency 14 - 15% (1) YoY Growth 44.7% As-reported Margin 44.9% Excluding Power (1) Margin ex
Slide 13: Q3 23 Guidance
Q3 23 Guidance As-reported Margin Margin ex. Integration costs Revenues ($M) Adjusted EBITDA ($M) 44.6% 44.9% 44.8% 45.3% +$39 (+2%) +$29 $2,039 - 2,069 (+3%) $915 - 945 -$7 $908 - 938 $901 $901 $0 $2,018 -$4 $2,015 (1) Q2 23 Normalizing Q2 23 Q3 23 Q2 23 Normalizing Q2 23 (2) Q323 Guidance Integrat
Slide 14: FY23 AFFO and AFFO per Share Guidance
FY23 AFFO and AFFO per Share Guidance (1)(2) Raising AFFO by $28M against FX headwind of $2M; AFFO per share growth of 9 - 11%(3) Share Count (Diluted) Normalized (4) AFFO per Share (Diluted) AFFO Constant Currency YoY Growth 11 - 14% 1 Raise AFFO guidance 91.8M 94.0M 94.0M $31.15 - 32.00 $31.51 - 3
Slide 15: Dividend Outlook
Dividend Outlook Annual Cash Dividend ($M) ~12% +10% ~$1,277 $1,137 $936 $1,030 2023E Cash Dividend of ~$1,277M $826 • Eight years of continued cash dividend growth since REIT conversion in 2015 43% 43% 42% 42% ~43% 42% Payout Payout Payout Payout Payout Ratio Ratio Ratio Ratio Ratio • Third quarter
Slide 16: Supplemental Financial and Operating Data
Supplemental Financial and Operating Data All the Right All the Right All the Right PLACES POSSIBILITIES PARTNERS Place Infrastructure Seize Opportunity with Connect to Everything Wherever You Need It Agility, Speed and Confidence You Need to Succeed Global Footprint Experience 250 data centers acro
Slide 17: Equinix Overview
Equinix Overview (1) • Global footprint: 250 data centers in 71 metros Unique Portfolio of Data • Network dense: 2,000+ networks; 100% of Tier 1 Network Routes Center Assets • Cloud dense: 3,000+ Cloud & IT service providers • Interconnected ecosystems: 456,000+ Total Interconnections • 2023 expecte
Slide 18: Pressing Our Advantage in All Markets
Pressing Our Advantage in All Markets Equinix global reach expands to 71 metro areas and 32 countries 6 Continents 32 Countries 71 Metro areas 250 Data centers AMERICAS EMEA ASIA-PACIFIC Platform Equinix 13 Metros % of Customers in • Geographic footprint is 29 Metros 29 Metros 107 Data Centers 91 Da
Slide 19: xScale: Amplifying Our Balance Sheet to Extend Cloud Leadership
xScale: Amplifying Our Balance Sheet to Extend Cloud Leadership Phase Phase Phase Cost JV Status Capacity Leasing Opening ($M) (MW) (MW) Recent Leasing Activity Mexico City 3x-1 JV Q4 2023 $61 4 0 AMER • Leased 10MW in OS2x São Paulo 5x-3 JV Q4 2023 $36 5 0 Frankfurt 11x-2 JV Open $90 14 14 Overview
Slide 20: Customer Diversity
Customer Diversity Diversified revenues across business size and industry reduces exposure to macro volatility Bubble Size: 2Q23 MRR with Equinix Large, established businesses Customers come from a diverse set Majority of revenue comes from constitute majority of revenue… of Industries… customers de
Slide 21: Customer Revenues Mix
Customer Revenues Mix Diversified Revenues across Customer, Region and Industry segments Customers and Churn (1) (2) Q2 23 Revenues Mix Top 10 Customers Rank Type of Customer %MRR Region Count IBX Count 1 Cloud & IT 2.7% 3 77 2 Cloud & IT 2.7% 3 59 Enterprise EMEA 3 Cloud & IT 2.6% 3 74 35% 34% INT
Slide 22: Non-Financial Metrics
Non-Financial Metrics (1) FY 2022 FY2023 Q2 Q3 Q4 Q1 Q2 QoQ Interconnections Americas 192,100 194,600 196,600 198,500 199,900 1,400 EMEA 157,200 160,700 157,700 159,600 160,800 1,200 Asia-Pacific 86,500 87,800 92,600 94,100 95,600 1,500 Total Interconnections 435,800 443,100 446,900 452,200 456,300
Slide 23: Expansion Highlights
Equinix Announced Retail IBX Expansions Expansion Highlights • We have 53 major builds underway across 40 markets in 24 countries including 11 xScale builds • We had 9 openings in 9 metros – Atlanta, Bogotá, Calgary, Frankfurt, London, Madrid, Milan, Sofia and Tokyo in the quarter • Estimated FY23 e
Slide 24: Equinix Announced Retail IBX Expansions
Equinix Announced Retail IBX Expansions EMEA / APAC (1) Cabinet Equivalent 2023 2024 2025 Total Capex(1) Capacity In IBX Data Center Status Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 $US millions Ownership Future Phases LD8 phase 4 (London) Open 550 $39 Leased - ML5 phase 3 (Milan) Open 500 $9 Owned - SO2 pha
Slide 25: Real Estate Ownership and Long-Term Leases
Real Estate Ownership and Long-Term Leases (1) Own 140 of 250 Data Centers, totaling 19.8M of 29.5M total gross square feet Recurring Revenues by Global Data Center Lease Portfolio Expiration Waterfall (3) (2) Ownership % Leases Renewing by Square Footage Last Possible Expiration Date 63% Lease Owne
Slide 26: Same Store Operating Performance
Same Store Operating Performance (1) Revenues ($M) Cash Cost, Gross Profit and PP&E ($M) Trailing 4-Qtr Inter- Services/ Total Non- Total Cash Cost Cash Gross Cash Gross Gross Cash Return on Category Colocation connection Other Recurring recurring Revenues of Revenues Profit Margin % PP&E Gross PP&E
Slide 27: Consolidated Portfolio Operating Performance
Consolidated Portfolio Operating Performance (1) Cabinets Billed Q2 23 Revenues ($M) Total Cabinet Owned % # of Data Cabinet Cabinets Utilization Total of Total Category Centers Capacity Billed % Recurring Recurring Americas Owned(2)(3) 64 100,600 80,900 80% $607 Leased 41 34,100 28,500 84% $210 Ame
Slide 28: Data Center Portfolio Composition
Data Center Portfolio Composition Metro Count Stabilized Expansion New Acquisition xScale Owned Leased Atlanta 5 AT2, AT3, AT4, AT5 AT1 AT4 AT1, AT2, AT3, AT5 Change Summary (1)(2)(3) Bogota 2 BG1 BG2 BG1, BG2 Boston 1 BO2 BO2 Calgary 3 CL1, CL2 CL3 CL3 CL1, CL2 Chicago 5 CH1, CH2, CH4, CH7, CH3 CH3
Slide 29: Data Center Portfolio Composition
Data Center Portfolio Composition Metro Count Stabilized Expansion New Acquisition xScale Owned Leased Abidjan 1 AB1 AB1 Abu Dhabi 1 AD1 AD1 Accra 1 AC1 AC1 Change Summary (1)(2)(3) Amsterdam 9 AM1, AM2, AM3, AM4, AM5, AM6, AM7, AM8, AM11 AM1*, AM2*, AM3*, AM4*, AM5, AM6, AM7* AM8, AM11 Barcelona 1
Slide 30: Adjusted Corporate NOI
Adjusted Corporate NOI (1) ($M, except # of Data Centers) Calculation Of Adjusted Corp NOI Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 # of Data Centers (1) 238 237 237 239 238 Recurring Revenues (2) $1,878 $1,843 $1,733 $1,713 $1,676 Recurring Cash Cost of Revenues Allocation (634) (579) (550) (524) (5
Slide 31: Adjusted NOI Composition – Organic
Adjusted NOI Composition – Organic (1) Q2 2023 # of Total Cabinet Q2 2023 Quarterly Data Cabinet Cabinets Utilization Recurring Adjusted NOI Category Centers Capacity Billed % Revenues ($M) ($M) % NOI Stabilized Owned (2) 80 155,800 133,300 86% $907 $559 51% Leased 94 90,100 76,000 84% $539 $318 29%
Slide 32: Components of Net Asset Value
Components of Net Asset Value Q2 23 Quarterly Ownership Reference Adjusted NOI ($M) Stabilized Owned Adjusted NOI Segments $559 Stabilized Leased Adjusted NOI Segments $318 Expansion Owned Adjusted NOI Segments $143 Expansion Leased Adjusted NOI Segments $70 Other Real Estate Owned Adjusted NOI Segm
Slide 33: Shares Forecast (M)
Shares Forecast (M) Fully Diluted Weighted Average Shares Common Stock Outstanding 93.5 93.6 -0.4 ~94.0 0.5 ~93.9 92.5 92.6 0.5 91.1 0.8 1.9 1.7 1.8 92.6 1.4 1.4 Shares Est. Employee ATM Offering Est. Shares Est. Weighted Est. Weighting Est. Fully Diluted Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Outstanding @
Slide 34: Capital Expenditures Profile
Capital Expenditures Profile Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 ($M) Recurring IBX Maintenance 25 11 65 24 21 Sustaining IT & Network 4 2 3 18 6 Re-configuration Installation 11 9 12 8 8 Subtotal - Recurring 40 22 80 50 35 Non-Recurring IBX Expansion 464 370 565 377 325 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) (3) (4) (4) CHF Guidance Blended % of GBP Currency Hedge Rate Guidance 1% Rate Hedge % Revenues 10% Rate EUR HKD USD 1.00 37% 20% 3% AUD EUR to USD 1.09 1.10 1.09 62% 20% 4% GBP to USD 1.27 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 (unaudited and in thousands, except per share amounts) Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Net income $ 207,013 $ 258,730 $ 128,903 $ 211,739 $ 216,242 Net (income) loss attributable to non-controlling interests 17 56 (140) 68 80 Net income attributable to Equinix 207,03
Slide 45: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands, except per share amounts) Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 FFO per share: Basic $ 5.29 $ 5.90 $ 4.40 $ 5.31 $ 5.47 Diluted $ 5.28 $ 5.87 $ 4.39 $ 5.30 $ 5.46 AFFO per share: Basic $ 8.06 $ 8.62 $ 7.11 $ 7.75 $ 7.59 Diluted $ 8.04 $ 8.59 $
Slide 46: Non-GAAP Reconciliations
Non-GAAP Reconciliations Consolidated NOI calculation Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 (unaudited and in thousands) Revenues $ 2,018,408 $ 1,998,209 $ 1,870,845 $ 1,840,659 $ 1,817,154 (1) Non-Recurring Revenues (NRR) 83,853 88,349 86,434 85,014 82,987 Other Revenues (2) 56,642 67,010 51,807
Slide 47: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands) Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Income from Operations $ 332,386 $ 384,121 $ 282,200 $ 333,159 $ 317,853 Adjustments: Depreciation, Amortization and Accretion Expense 460,461 458,995 438,492 431,668 432,828 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