10-QPeriod: Q2 FY2019

EQUINIX INC Quarterly Report for Q2 Ended Jun 30, 2019

Filed August 2, 2019For Securities:EQIX

Summary

Equinix Inc. (EQIX) reported its second-quarter and first-half 2019 financial results, demonstrating robust revenue growth and operational improvements. For the quarter ended June 30, 2019, total revenues increased by 10% year-over-year to $1.385 billion, with recurring revenues forming 94% of this total. Net income attributable to Equinix grew significantly to $143.5 million, or $1.69 per diluted share. The company's adjusted EBITDA also saw a healthy increase of 12% year-over-year to $677.0 million, highlighting strong operational performance across all regions. For the first six months of 2019, total revenues reached $2.75 billion, a 11% increase compared to the same period in 2018. Net income attributable to Equinix was $261.6 million, or $3.13 per diluted share. The company's strategic acquisitions and expansion projects continue to drive growth, with a strong focus on expanding its global data center footprint to meet increasing customer demand.

Financial Highlights

54 data points
Beta

Revenue

$1.38B

49.6% Gross Margin

Net Income

$143.53M

10.4% Net Margin

EPS (Diluted)

$1.69

Total Assets

$22.89B

Cash & Equivalents

$1.64B

Free Cash Flow

$542.92M

Financial Statements
Beta
Revenue$1.38B
Cost of Revenue$698.18M
Gross Profit$686.80M
Operating Expenses$1.09B
Operating Income$291.78M
Interest Expense$120.55M
Net Income$143.53M
EPS (Basic)$1.70
EPS (Diluted)$1.69
Shares Outstanding (Basic)84.40M
Shares Outstanding (Diluted)84.77M

Key Highlights

  • 1Total revenues for the three months ended June 30, 2019, increased by 10% year-over-year to $1.385 billion.
  • 2Net income attributable to Equinix for the three months ended June 30, 2019, was $143.5 million, or $1.69 per diluted share, a significant increase from the prior year.
  • 3Adjusted EBITDA for the three months ended June 30, 2019, rose by 12% year-over-year to $677.0 million, reflecting solid operational performance.
  • 4Total revenues for the six months ended June 30, 2019, were $2.75 billion, up 11% from the same period in 2018.
  • 5The company completed the acquisition of Switch Datacenters' AMS1 data center business in Amsterdam, Netherlands in April 2019.
  • 6Equinix formed a joint venture with GIC to develop and operate data centers in Europe, agreeing to sell certain data centers to the JV.
  • 7The company continued to strengthen its balance sheet, raising approximately $1.213 billion in net proceeds from a public equity offering in March 2019.

Frequently Asked Questions

Equinix reported total revenues of $1.385 billion for the three months ended June 30, 2019, representing a 10% increase compared to the same period in 2018. Recurring revenues accounted for 94% of the total.

Net income attributable to Equinix for the second quarter of 2019 was $143.5 million, or $1.69 per diluted share. This is a substantial increase from $67.6 million, or $0.85 per diluted share, in the second quarter of 2018.

Revenue growth was driven by a combination of factors including revenues from recently opened IBX data centers and expansions, an increase in orders from both existing and new customers across all geographic regions (Americas, EMEA, and Asia-Pacific), and strategic acquisitions. The company's recurring revenue model continues to be a strong contributor.

Key activities included the acquisition of Switch Datacenters' AMS1 data center in Amsterdam, the formation of a joint venture with GIC for European data centers, the sale of certain assets to this joint venture, and a successful public equity offering that raised approximately $1.213 billion in net proceeds.