Croissance record pour Equinix au deuxième trimestre 2022

Croissance record : les entreprises continuent de donner la priorité aux infrastructures numériques malgré une situation macroéconomique difficile.

Le chiffre d’affaires trimestriel enregistré par Equinix a augmenté de 10 % par rapport au même trimestre de l’année précédente, atteignant les 1,8 milliard de dollars en données brutes et à taux de change fixe, soit le 78e trimestre consécutif de croissance des revenus de l’entreprise, la plus longue série parmi les sociétés du S&P 500.

• Les réservations brutes et nettes trimestrielles ont atteint un niveau record, notamment dans les régions Amériques et EMEA, dépassant largement le pic précédent.
• Un nombre record de réservations a été atteint au deuxième trimestre, représentant plus de 35 % du total des réservations.
• Plus de 435 000 interconnexions ont été enregistrées, ce qui souligne le rôle essentiel de la société dans l’infrastructure numérique des entreprises d’aujourd’hui.

Charles Meyer, CEO d’Equinix, se félicite des excellents résultats de ce trimestre : « Avec des réservations brutes record au T2 qui ont largement dépassé le pic précédent, Equinix a connu un premier semestre 2022 exceptionnel, et notre entreprise a continué à fournir des résultats solides et cohérents. Malgré un paysage macroéconomique et politique mondial complexe, nous maintenons le cap et permettons aux leaders du numérique d’être accompagnés dans leur transformation digitale. »

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Communiqué original Equinix Reports Second Quarter 2022 Results

Record Growth as Businesses Continue to Prioritize Digital Infrastructure Despite Macroeconomic Conditions

Quarterly revenues increased 10% on both an as-reported and normalized and constant currency basis over the same quarter last year to $1.8 billion, representing the company’s 78th consecutive quarter of revenue growth—the longest streak of any S&P 500 company.

• Delivered record quarterly gross and net bookings led by the Americas and EMEA regions— sizably surpassing the prior peak
• Achieved record channel bookings in Q2, accounting for more than 35% of total bookings
• Exceeded 435,000 interconnections in Q2, highlighting the company’s critical role in the digital infrastructure of today’s businesses

Equinix, the world’s digital infrastructure company, today reported results for the quarter ended June 30, 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.

Second Quarter 2022 Results Summary

Revenues

• $1.8 billion, a 5% increase over the previous quarter
• Includes a negative $20 million foreign currency impact when compared to prior guidance rates
  Operating Income
• $318 million, a 19% increase over the previous quarter and an operating margin of 17%
  Net Income and Net Income per Share attributable to Equinix
• $216 million, a 47% increase over the previous quarter, primarily due to strong operating performance and a favorable tax settlement
• $2.37 per share, a 46% increase over the previous quarter
  Adjusted EBITDA
• $860 million, an 8% increase over the previous quarter and an adjusted EBITDA margin of 47%
• Includes a negative $10 million foreign currency impact when compared to prior guidance rates
• Includes $4 million of integration costs
  AFFO and AFFO per Share
• $691 million, a 6% increase over the previous quarter, primarily due to strong operating performance, partially offset by higher taxes due to increased profitability
• $7.58 per share, a 6% increase over the previous quarter
• Includes $4 million of integration costs
  2022 Annual Guidance Summary

Revenues

• $7.259 – $7.299 billion, an increase of 9 – 10% over the previous year, or a normalized and constant currency increase of 10 – 11%
• An increase of $65 million compared to prior guidance, offset by a $102 million foreign currency impact compared to prior guidance rates
  Adjusted EBITDA
• $3.323 – $3.353 billion, a 46% adjusted EBITDA margin
• An increase of $33 million compared to prior guidance excluding integration costs, offset by a $49 million foreign currency impact compared to prior guidance rates
• Assumes $30 million of integration costs
  AFFO and AFFO per Share
• $2.636 – $2.666 billion, an increase of 8 – 9% over the previous year, or a normalized and constant currency increase of 8 – 10%
• An increase of $33 million compared to prior guidance, offset by a $42 million foreign currency impact compared to prior guidance rates
• $28.77 – $29.10 per share, an increase of 6 – 7% over the previous year, or 8 – 9% on a normalized and constant currency basis
• Assumes $30 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, President and CEO, Equinix : « With record Q2 gross bookings that sizably surpassed the prior peak, Equinix had an outstanding first half of 2022, and our business continued to deliver strong and consistent results. The demand environment and our pipeline remain robust despite a complex global macroeconomic and political landscape, as we continue to enable digital leaders on their transformation journey.« 

Business Highlights

As customers continue to embrace Equinix as the best manifestation of the interconnected digital edge, the company continues to invest in the expansion of its global platform:

49 major projects are currently underway across 34 metros in 21 countries, including new data center builds in Dublin, Montréal, New York, Paris, Warsaw and the company’s first build in Chennai, India.
In May, Equinix closed the acquisition of four data centers from Empresa Nacional De Telecomunicaciones S.A. (« Entel »), a leading Chilean telecommunications provider (the « Entel Chile Acquisition »), extending Platform Equinix® into Chile and bringing its global footprint to 70 metros across 31 countries.
Equinix expects to close on the acquisition of one additional data center from Entel to enter Lima, Peru, in Q3.

• Equinix continued to strengthen its leadership position in the cloud ecosystem through the company’s xScaleTM program, which experienced strong leasing activity from top hyperscalers in Q2. The xScale portfolio has now leased more than 170 megawatts globally, with 11 xScale builds currently under development, of which more than 80% is pre-leased.

• Equinix’s Future First sustainability strategy was recently recognized by Sustainalytics as among the best large-cap REITs for ESG. Equinix was also ranked seventh on the U.S. Environmental Protection Agency’s National Top 100 list of the largest green power users.

• Equinix continued the growth of its indirect selling initiatives, with channel sales delivering a fifth consecutive quarter of record bookings, accounting for over 35% of Q2 bookings and nearly 60% of new logos in the quarter. Wins were across a wide range of industry verticals and use cases, with continued strength from strategic partners including AT&T, Cisco, Dell, Google, Microsoft and Orange Business Services. In Q2, Equinix was recognized as HPE GreenLake’s Momentum Partner of the Year for 2022 as the two companies work together to deliver a consistent hybrid multicloud experience for joint customers.

Business Outlook

For the third quarter of 2022, the Company expects revenues to range between $1.827 and $1.847 billion, a 1 – 2% increase over the prior quarter on both an as-reported and normalized and constant currency basis. This guidance includes a negative $12 million foreign currency impact when compared to the average FX rates in Q2 2022. Adjusted EBITDA is expected to range between $831 and $851 million. Adjusted EBITDA includes a negative $5 million foreign currency impact when compared to the average FX rates in Q2 2022 and $9 million of integration costs from acquisitions. Recurring capital expenditures are expected to range between $42 and $52 million.

For the full year of 2022, total revenues are expected to range between $7.259 and $7.299 billion, a 9 – 10% increase over the previous year, or a normalized and constant currency increase of 10 – 11%. This updated full-year guidance includes an underlying raise of $35 million from better-than-expected business performance, $30 million from the Entel Chile Acquisition and a negative $102 million foreign currency impact when compared to the prior guidance rates. Adjusted EBITDA is expected to range between $3.323 and $3.353 billion, an adjusted EBITDA margin of 46%. This updated full-year guidance includes an underlying raise of $25 million from better-than-expected business performance excluding integration costs, $18 million from the Entel Chile Acquisition, offset by $10 million due to a lease accounting classification change and a negative $49 million foreign currency impact when compared to the prior guidance rates. For the year, the Company now expects to incur $30 million in integration costs related to acquisitions. AFFO is expected to range between $2.636 and $2.666 billion, an increase of 8 – 9% over the previous year, or a normalized and constant currency increase of 8 – 10%. This updated AFFO guidance excluding integration costs includes an underlying raise of $17 million, a $3 million net benefit due to a lease accounting classification change, $13 million from the Entel Chile Acquisition and a negative $42 million foreign currency impact when compared to the prior guidance rates. AFFO per share is expected to range between $28.77 and $29.10, an increase of 6 – 7% over the previous year on an as-reported basis, or 8 – 9% on a normalized and constant currency basis. Total capital expenditures are expected to range between $2.313 and $2.563 billion. Non-recurring capital expenditures, including xScale-related capital expenditures, are expected to range between $2.133 and $2.373 billion, and recurring capital expenditures are expected to range between $180 and $190 million. xScale-related on-balance sheet capital expenditures are expected to range between $85 and $135 million, which we anticipate will be reimbursed to Equinix from both the current and future xScale JVs.

The U.S. dollar exchange rates used for 2022 guidance, taking into consideration the impact of our current foreign currency hedges, have been updated to $1.14 to the Euro, $1.31 to the Pound, S$1.39 to the U.S. Dollar, ¥136 to the U.S. Dollar, A$1.45 to the U.S. Dollar, HK$7.85 to the U.S. Dollar, R$5.20 to the U.S. Dollar and C$1.29 to the U.S. Dollar. The Q2 2022 global revenue breakdown by currency for the Euro, British Pound, Singapore Dollar, Japanese Yen, Australian Dollar, Hong Kong Dollar, Brazilian Real and Canadian Dollar is 19%, 9%, 8%, 6%, 4%, 3%, 3% and 3%, respectively.

The adjusted EBITDA guidance is based on the revenue guidance less our expectations of cash cost of revenues and cash operating expenses. The AFFO guidance is based on the adjusted EBITDA guidance less our expectations of net interest expense, an installation revenue adjustment, a straight-line rent expense adjustment, a contract cost adjustment, amortization of deferred financing costs and debt discounts and premiums, income tax expense, an income tax expense adjustment, recurring capital expenditures, other income (expense), (gains) losses on disposition of real estate property, and adjustments for unconsolidated joint ventures’ and non-controlling interests’ share of these items.

Q2 2022 Results Conference Call and Replay Information

Equinix will discuss its quarterly results for the period ended June 30, 2022, along with its future outlook, in its quarterly conference call on Wednesday, July 27, 2022, at 5:30 p.m. ET (2:30 p.m. PT). A simultaneous live webcast of the call will be available on the company’s Investor Relations website at equinix.com/investors. To hear the conference call live, please dial 1-517-308-9482 (domestic and international) and reference the passcode EQIX.

A replay of the call will be available one hour after the call through Wednesday, October 26, 2022, by dialing 1-866-363-4001 and referencing the passcode 2022. In addition, the webcast will be available at equinix.com/investors (no password required).

Investor Presentation and Supplemental Financial Information

Equinix has made available on its website a presentation designed to accompany the discussion of Equinix’s results and future outlook, along with certain supplemental financial information and other data. Interested parties may access this information through the Equinix Investor Relations website at equinix.com/investors.