Equinix Reports Fourth-Quarter and Full-Year 2022 Results

Exceeds $7 Billion in Revenue with 80th Consecutive Quarter of Revenue Growth–the Longest Streak of Any S&P 500 Company

• 2022 annual revenues increased 9% year-over-year on an as-reported basis and 11% on a normalized and constant currency basis to $7.3 billion
• Delivered seventh consecutive quarter of record channel bookings, accounting for nearly 40% of total bookings and approximately 60% of new logos
• Closed over 17,000 deals across more than 6,000 customers in 2022
• 2023 financial outlook at or above company’s previously disclosed long-term targets shared at the June 2021 Analyst Day
• Increases quarterly cash dividend by 10% to $3.41 per share on its common stock due to strong operating performance

Equinix, Inc. , the world’s digital infrastructure company^TM, today reported results for the quarter and year ended December 31, 2022. Equinix uses certain non-GAAP financial measures, which are described further below and reconciled to the most comparable GAAP financial measures after the presentation of our GAAP financial statements. All per-share results are presented on a fully diluted basis.

2022 Results Summary

• Revenues
  • $7.263 billion, a 9% increase over the previous year on an as-reported basis or 11% on a normalized and constant currency basis

• Operating Income
  • $1.201 billion, an 8% increase over the previous year, and an operating margin of 17%, largely due to strong operating performance offset in part by increased investments to support the expanded scale and reach of the business

• Net Income and Net Income per Share attributable to Equinix
  • $705 million, a 41% increase over the previous year, primarily due to operating performance strength and loss on debt extinguishment in 2021; partially offset by higher income taxes
  • $7.67 per share, a 39% increase over the previous year

• Adjusted EBITDA
  • $3.370 billion, a 46% adjusted EBITDA margin
  • Includes $20 million of integration costs

• AFFO and AFFO per Share
  • $2.714 billion, an 11% increase over the previous year on both an as-reported and normalized and constant currency basis
  • $29.55 per share, a 9% increase over the previous year or a normalized and constant currency increase of 11%
  • Includes $20 million of integration costs

2023 Annual Guidance Summary

• Revenues
  • $8.145 – $8.245 billion, a 12 – 14% increase over the previous year or a normalized and constant currency increase of 14 – 15%

• Adjusted EBITDA
  • $3.615 – $3.695 billion, a 45% adjusted EBITDA margin after taking into consideration power price increases to revenues and corresponding power cost increases
  • Assumes $35 million of integration costs

• AFFO and AFFO per Share
  • $2.883 – $2.963 billion, an increase of 6 – 9% over the previous year or a normalized and constant currency increase of 9 – 12%
  • $30.79 – $31.64 per share, an increase of 4 – 7% over the previous year or a normalized and constant currency increase of 8 – 10%. This guidance excludes any capital market activities the company may undertake in the future
  • Assumes $35 million of integration costs

Equinix does not provide forward-looking guidance for certain financial data, such as depreciation, amortization, accretion, stock-based compensation, net income (loss) from operations, cash generated from operating activities and cash used in investing activities, and as a result, is not able to provide a reconciliation of GAAP to non-GAAP financial measures for forward-looking data without unreasonable effort. The impact of such adjustments could be significant.

Equinix Quote:
Charles Meyers, CEO and President, Equinix:

“With IDC forecasting digital technology spend to grow eight times faster than the broader economy in 2023,¹ today’s businesses are seeking the right infrastructure partner to support their specific digital transformation needs, especially in the current environment where operational efficiency and the need to create lasting business differentiation are strategic drivers. Our customers are validating the increasing demand for comprehensive solutions that offer ‘the right cloud for them’ with flexibility to place their workloads across multiple public clouds, private clouds and on-prem—and they are finding Equinix’s global platform and interconnected ecosystems a unique environment to architect this customizable infrastructure.”

Business Highlights

• As Equinix continues to extend its comprehensive platform to offer businesses a rich mix of physical and virtual solutions to access its interconnected ecosystem, the company made progress on digital services initiatives in Q4 that included:

• • The November announcement with VMware of VMware Cloud on Equinix Metal^®, which combines VMware-managed and supported cloud Infrastructure as a Service with Equinix’s interconnected, global Bare Metal as a Service offering. The solution is aimed at offering customers a combination of on-premises security and control with high performance, data locality, and low overall total cost of ownership.
  • An outline for the extension of its entire digital services portfolio to seven new metros. This 2023 plan includes launching Equinix Metal in Dublin, Manchester, Mexico City, Miami and Milan, and bringing Network Edge to Atlanta, Manchester, Mexico City and Seoul.
• Equinix further invested in the expansion of its global platform, which now encompasses more than 245 data centers across 71 metros in 32 countries:

• The 49 major projects currently underway across 35 metros and 23 countries represent the largest new-build pipeline in company history.
• In Q4, Equinix announced its first builds in Johannesburg, South Africa, and Johor, Malaysia. The new Johannesburg facility will augment Equinix’s current African footprint in Nigeria, Ghana and Côte d’Ivoire by entering the largest and most digitally developed nation on the continent. The Johor expansion represents Equinix’s entry into one of the most-requested markets in Asia-Pacific by global customers.

In Q4, Equinix advanced its environmental sustainability commitments by becoming the first colocation data center operator to commit to more efficient temperature and humidity standards that will enable the company to reduce its overall power use by increasing operating temperature ranges within its data centers. By “adjusting the thermostat” to optimize data center energy use, Equinix is leading the industry and is expected to enable thousands of customers to reduce the Scope 3 carbon emissions associated with their data center operations, as supply chain sustainability becomes an increasingly important part of the overall environmental initiatives of today’s businesses.