Summary
Equinix Inc. (EQIX) reported its first quarter 2011 financial results, demonstrating significant year-over-year revenue growth driven by both organic expansion and the impact of the Switch & Data acquisition. Total revenues increased by 46% to $363.0 million, with recurring revenues making up 95% of the total. The company also saw substantial growth in its customer base, up 49% year-over-year, reflecting increased demand for its data center services across its global footprint. Operationally, Equinix highlighted strong performance in its Americas segment, which benefited significantly from the Switch & Data acquisition. All segments, Americas, EMEA, and Asia-Pacific, experienced revenue growth. The company also made strategic investments in its infrastructure, particularly with the acquisition of ALOG Data Centers in Brazil and the development of new IBX data centers. Despite increased interest expenses and capital expenditures related to expansion, Equinix managed its finances effectively, with a healthy cash position and available liquidity to fund its growth initiatives.
Financial Highlights
46 data points| Revenue | $363.03M |
| Cost of Revenue | $194.58M |
| Gross Profit | $167.34M |
| Operating Expenses | $291.72M |
| Operating Income | $71.31M |
| Interest Expense | $37.36M |
| Net Income | $25.14M |
| EPS (Basic) | $0.54 |
| EPS (Diluted) | $0.53 |
| Shares Outstanding (Basic) | 46.45M |
| Shares Outstanding (Diluted) | 47.22M |
Key Highlights
- 1Revenue increased by 46% to $363.0 million for the three months ended March 31, 2011, compared to $248.6 million in the prior year period.
- 2Total customers grew by 49% year-over-year to 4,046 as of March 31, 2011, driven by both acquisitions and organic growth.
- 3The Americas segment showed strong revenue growth of 57% year-over-year, significantly boosted by the Switch & Data acquisition.
- 4Net income increased to $25.1 million ($0.53 per diluted share) from $14.2 million ($0.35 per diluted share) in the same period last year.
- 5Cash flows from operating activities were $117.7 million, an increase from $99.8 million in the prior year period, supporting ongoing investments.
- 6The company completed the acquisition of approximately 90% of ALOG Data Centers do Brasil S.A. (ALOG) in April 2011, expanding its presence in South America.
- 7Capital expenditures increased to $190.1 million in the quarter, reflecting ongoing investments in IBX data center expansions and development.