Summary
Equinix Inc. (EQIX) reported strong revenue growth for the nine months ended September 30, 2019, with total revenues reaching $4.145 billion, a 10% increase year-over-year. This growth was driven by consistent performance across all geographic segments (Americas, EMEA, Asia-Pacific) and both recurring and non-recurring revenue streams. The company's strategic focus on expanding its global data center footprint and enhancing its service offerings continues to yield positive results. Despite increased operating expenses, particularly in the Americas region due to higher compensation and depreciation, Equinix maintained solid growth in Adjusted EBITDA, reaching $2.01 billion for the nine-month period. The company also successfully raised significant capital through equity offerings, bolstering its liquidity to fund ongoing expansions and strategic initiatives. However, investors should note the ongoing impact of foreign currency fluctuations, particularly the strengthening U.S. dollar against EMEA and Asia-Pacific currencies, which unfavorably impacted reported revenue growth. The company continues to manage these risks through hedging activities, but the impact on reported figures remains a point of attention.
Financial Highlights
55 data points| Revenue | $1.40B |
| Cost of Revenue | $704.34M |
| Gross Profit | $692.47M |
| Operating Expenses | $1.11B |
| Operating Income | $285.37M |
| Interest Expense | $118.67M |
| Net Income | $120.85M |
| EPS (Basic) | $1.42 |
| EPS (Diluted) | $1.41 |
| Shares Outstanding (Basic) | 85.01M |
| Shares Outstanding (Diluted) | 85.57M |
Key Highlights
- 1Total revenues increased by 10% year-over-year to $4.145 billion for the nine months ended September 30, 2019.
- 2Adjusted EBITDA grew by 12% year-over-year to $2.01 billion for the nine months ended September 30, 2019, indicating strong operational performance.
- 3The company successfully raised approximately $1.213 billion in net proceeds from a public equity offering in March 2019.
- 4The adoption of ASC 842 (Leases) significantly impacted the balance sheet with the recognition of new operating lease right-of-use assets and liabilities.
- 5Foreign currency fluctuations, primarily a stronger U.S. dollar against Euro, British Pound, and Swedish Krona, unfavorably impacted EMEA revenues and adjusted EBITDA.
- 6Equinix incurred an impairment charge of $16.0 million related to the New York 12 data center classified as held for sale.
- 7The company continues to expand its global data center footprint, with recent acquisitions and joint venture developments in Europe.