Earnings call transcript Q1 2023

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Operator

Good morning, and welcome to the Iron Mountain First Quarter 2023 Earnings Conference Call. [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to Gillian Tiltman, Senior Vice President and Head of Investor Relations. Please go ahead.

Gillian Tiltman

Sarah. you, Thank welcome call. and first XXXX quarter Good to conference earnings morning, our On materials refer Investor will today's we call, to Relations available website. our on

and Barry We Executive Officer. President joined here by Financial Meaney, are today and Chief Officer; our Hytinen, President and Executive Vice Bill Chief

the materials expectations. and remarks, prepared materials, All today's are to risks earnings forward-looking Please up statements, refer including earnings for Q&A. the statements harbor After forward-looking lines statements uncertainties. to open Today's we'll contain safe regarding our language for on those in from actual and factors our annual quarterly report our report our differ Slide X of in risk -- our on a major cause to on Form the forward-looking could XX-Q statements. that results subject discussion

several measures financial use our non-GAAP presenting results. when In addition, we

the to financial in our included have measures reconciliations supplemental these information. We

turn With call Bill. to over that, I'll the

William Meaney

thank taking today. you, all Thank time us you and to join Gillian, for the

results performance our quarter team resonance unmatched quarter This expectations. portfolio, of and product record delivered customer of team. another our our relationships for the Our reflects our the expanded strength exceeding first dedicated of of the XXXX,

X.X% reported organic EBITDA first basis, in yielding achieved growth we highest revenue quarterly million. a revenue $X.XX of billion, quarter, $XXX ever and of On our the total

to data in digital of organic and businesses. solutions high-teens enabling encouraged Matterhorn, be center our these history. across key commercial of we storage results growth demand to by markets quarter, the our to continue Project for XX% teams in services We our fueling success the as range widest first increased revenue delivered the and both our access customers of services well growth offer our as the company's We organic in rental drove

business our path. highlight underlying this with continues products to United our valued on major us Beginning As Project industrial like we approach across with of we these well trajectory the as accelerate in solutions-based to I the at how with our steady introduced opportunity new serving we new our markets contract and to and as growth would in Mountain take signing year build-out XX last offerings have million. GBP services range. a growth and Matterhorn, management, Kingdom a records significant with customers been company our aerospace global won

of a of conversations, customer Iron team a for locations, bespoke radio Mountain's secure tagging and digitization Following more than to industry-leading cubic the additional the team security thousand into multiple across XX-year feet and storage, working a data of several identification year entered physical experts providing hundred standards. with management agreement, document on-site frequency dedicated secure

could their to I offer solution that am data pleased we allows such business. and their digitize protect customer a comprehensive both the

years countries, now are total, the We million. approximated GBP XX America additional and XX other contract In is in value North potential over with same be customer to discussing opportunities European the Asia.

Another ability Business its a Mountain the as on win society, challenge home customer historical sell which entire to archives whilst the to was differently. Storage highlights for preserving turned Iron Art that involves cultural the state history both our our Fine to and in heritage a of Mountain help to this Crozier expertise underground center, in budget consideration our With our key to think focused innovation solution unique which leveraging is and its costs, for museum. customer, range reducing

webinar XXXX. financial Australia, issues their being in at Policy for needs. deliver quarter, logistics compliance solution a a services Our to a based company a Also combined long-standing of customer we with Mountain back turned enabled team the and met by help art, the information after library, impressed in archives in our to presented Center state's that Iron expertise us the

the auto records, Success personal software, and data reduction storage, auto into of identifiable copy customer capability from platform its value also metadata as archives, stories provide increased to visibility data. with physical of enablement the only selected digital and will digital improving utilize InSight solutions suite as not customers and Our digital highlight but including generation the of moving this such provide information. methods we and to the the

Department and digital was historical win increase that advanced our of has their records combined multiple and Veterans Affairs. work and storage to complete high facility, digital production scanning just customer requested with dispersed an which of need the Another security chain the also the staff The The in Congress documents, of storage. are to to deal. for of winning of the accurate our enhance the fashion, locations. aspects beginning provide key required by across care custody factors of logistics oversight, were U.S. timely records capacity partner the aid the VA digitization to This U.S. veteran a patient in often experienced of medical provided skill the our delivery with facility of driving Pennsylvania Boyers, secure The veteran contributing unique veterans. is

the processing court and a cost of which will time His a BPO and we elements existing Digital automate where room Courts delivered and function. The Also applications on had mailroom digitization have of be Majesty's well-established mail location service, facility. service the will the win a Solutions, we to tribunal solution from indexing classification reduce our key and an in customer with digital

verticals. management, ALM, lifecycle into business we this X or asset to divide Turning

we The from decommissioning business is acquired the first that of hyperscale these ITRenew.

since volumes new more has used strength our this in Our components. customer of down, excess vertical on and the however, existing our grew the reflecting relationships of logos. of both Revenue win record-low market-leading end and the to our year-over-year, is in the ability new market XXXX platform, reflecting seen XX% pricing

our to been XXX,XXX vertical, services Since over see business, greater. existing customers. relationships gratified have never we've the with In ITAD we more across has our wider cross-sell synergies to ITAD our enterprise enterprise customers our with been opportunity

The the manufacturers. last of technology verticals is these

both end-user Here, we servers business, as terms in are winning well of as devices.

and end-user the This OEM setting space product of recent up a the expertise Examples We with state specific corporate wins is solid a opportunity. existing assets. an business success. destruction for in ratio maximizing huge hard in end-user market decommission and ALM have and in relationship company from sales our on-site obtained to disk force asset invested us and indirect center include management value disk to contract data global whilst perform

and risk performance, manager, portal sought the a Continuing global decommission services our large ease management to from use solutions to strong X guidance A with our of of and company centers. and our combination ALM, complete dedicated contributed the win. of data a existing in relationship partial to remarketing ALM capabilities the program including

Data our business. to turn let's Center Finally,

of first for XXXX single new a have X customer with deals to pleased of the signed quarter of signing XX are a megawatts. We finished total hyperscale leases XX with megawatts

You megawatts. for the will year recall is that XX-plus our guidance

quarter So our alone a to our have team. in the is target of least first triumph of over half

sought terms home for disaster recovery wins Manassas, existing we Virginia their In was who options data and campus of loan an co-location meet The customer a with developed to in VAX with center and U.S. quarter, tour expand the selected the needs. our center new Virginia. past one this impressed win the of is our data market customer federal highlight into would I to to like custom solution

our expanded past positive our we've solution with data of data With center at this another experience with bundled sites. services, a renewal their center

the explored to data moving co-location. the center in fleet their team has win company, infrastructure announced years our with internal a quarter, for on-site Also management which

center. to Our our expand hands the data a access, resulted has for internet including relationship of ability and a that a recovery data Jersey at the continuation them connects solution our VAX powerful to in cross potential custom solution center, to in direct provide solution important and smart an disaster New

a is substantial to win leveraging to host center major our the noteworthy and closely customer advantage center environment, their chip who's at solution to our the relationship. customer's of manufacturer site, seeking The a was commercial semiconductor range internal has development partner all work and existing teams Arizona data an a Also sales taking existing with data Mountain cloud offer. deliver

and of are for that with more we ever to premium long-standing with have we with our bearing to co-location Matterhorn relationships their X in our highest to about great source had as strides the the than are these offer customers demonstrating growth trusted solutions All decades. deals ability our To Project wins meet enthusiastic have business innovative I and make towards whom journey. is conclude, needs. our of peaks to ability and climbs customers we fruit, continue team expanded our our customers, noted ever-evolving

turn call With that, I'll the over Barry. to

Barry Hytinen

exceeding Thanks, all-time center our record quarter, deliver us X.X%. We of revenue representing the revenue Bill, Revenue joining quarterly billion, to we last Organically, basis. on and last continued strong and expectations you our RIM provided businesses on data expectations both as to growth the was for a discuss we thank on In Global all reported X% an grew performance, our achieved ahead outperformed. call results. of call. our team first the $X.XX shared our

is the China $XXX with start our more XX%. impact from management, in the revenue service shared our the storage A strong growth lockdowns acceleration impacted revenue or constant year-on-year. Consistent increased an data key on commentary contributions of highlight organic from intense X% million the in commencements trends. basis. of reflects year-on-year Total to ITRenew a on X% This center business. sequentially our positive we revenue both This last and volume and marks quarter currency the call,

growth mix a currency margin XX management year-on-year was strong currency was year-on-year and an X% basis management center. from of key driven drivers. ITRenew, an being million, and on organic constant with improvement revenue Adjusted data was Excluding represents constant service new EBITDA basis by quarter the a up points XX.X%, EBITDA on This and first contributions of revenue XX% revenue basis. record. Adjusted X% $XXX

up of This a ahead the maintenance AFFO first first the shared quarters. well on from partially expectations was of and per second $X.XX, $X.XX timing some quarter CapEx we million items the last on or million our $XX call, last between year. respectively the of basis, the and result of share was $XXX

management growth of volume revenue solutions core business segment organic XX.X%, On revenue to with revenue increase trends. Organic delivered first revenue and the of RIM that year. focus rental $X.XX service performance. growth last from Global quarter, increased reported million on reflects an by of billion, We turning In XX%. our storage digital of an $XX revenue performance solid basis, X.X% organic driven Now our and offerings.

Global RIM increase adjusted of $XX $XXX was million EBITDA an year-on-year. million,

an a revenue increase Organic pricing. by growth data global at achieved delivered to an particularly organic revenue year-on-year. $XX improved revenue XX%, and We $XXX million, From driven strong Turning our perspective, total of commencements on was XX% storage growth business. we of million basis. center

$XX were As last adjusted we fit-out EBITDA XX% year. center we in performing first Data were representing year-on-year projected, was data the down work center growth. given services million, half the of

these Later contract. Turning to with we megawatts. renewal XX-megawatt strong have an the business a deals initial key multiple signed our team Phoenix, signing within in relationship X in London. a cross-selling wins very term with customer our and extended data logos quarter, with our with new another options. and of We we with quarter XX Both the Scottsdale, In signed total, Frankfurt portfolio relationship strong had further years new activity. X this with expanded of expansion center leasing. with long-standing XX across We megawatts. We new a

our Turning first In pricing the volume lifecycle quarter, significantly component expectations, while down asset was management. to of ALM was year-on-year. ahead

Importantly, pricing stabilizing. for now we are seeing components

driven the quarter improving Given of bookings. positioned we for ALM And we the the the seeing, well are volume for be year, environment with quarter. second half activity planning the trends we back Bill consistent first the in with that and revenue are new described, current are by in to pipeline

team and In wins. delivering our is particular, key business the well growing OEM new with developing our pipeline

we needs to manufacturers decommissioning device with of technology example, recently them partner the of customers. For largest signed one with deal the end-user their a in

the In million of growth million capital. first which $XX was invested recurring. million, to Turning $XXX and $XXX we quarter, was

X.Xx, Turning we adjusted EBITDA last with ended With improvement marks from balance quarter lowest lease to of sheet. significant reflecting a net strong leverage year, since this level the the performance, leverage XXXX. our

within operate to is leverage target X.Xx. to expect our X.X We range, which

ratio quarterly of to to is X-quarter now range mid-XXs in declared be low into July. dividend XX%, per trailing Directors settling our On $X.XX long-term target share a payout our paid percent. basis, Board early Our our of of

to turning outlook. Now our

reiterate are With strong to guidance. our the pleased for performance track we well in year quarter, full the on year, we and are

Matterhorn approximately approximately of the quarter, million approximately expect growth we our summary, AFFO per of second AFFO executing $X.XX of of well million, billion, share $XXX team EBITDA our For revenue adjusted is In and $XXX $X.XX. initiatives. on approximately

in We on cross-selling We increased are our driving expectations of investing exceeding levels and of business. focused our the remain customers.

commitment like to thank would our dedication this I for Mountain team customers. and and continued take to their to our opportunity Iron entire

open please you would the operator, line that, for With Q&A.

Operator

[Operator Instructions].

Our Sachs. first Tong George question comes with from Goldman

George Tong

the the coming decelerated for re-acceleration that in organic Can in growth behind services in revenue businesses elaborate growth? initiatives revenue quarters? deceleration Organic the discuss growth you in a could or X% And factors the factors on quarter. drive services to the

William Meaney

the thanks for George, question.

think So our if overall, think strong. traditional quite areas, about yes, I it the was you service growth in revenue

look Global our at at organic just you Organic in If RIM RIM currency XX%, again an basis. grew constant and is services the business on

strong very very, So growth.

If where you ALM which I've side, is XX% see this in was volume in you downdraft look it year-over-year. my the comments, as on up is, is the said quarter some

the So have OEM we we're as signed a and synergies actually just as we commercial synergies as new a -- Barry that seeing the well. customer company mentioned,

components seen the in on are the XX%. side. electronics But really pricing if on some have you down industry, side, the volume we of probably the So traction see good

margins whilst we've across positive been business, in still So gross impacted record-low industry revenue that by have the what seeing terms is pricing. on heavily the we of semiconductor is

that think two I a world. really So it's

So even ALM RIM, good say, is has teens, a as shown the the revenue. from traditional a if it basis we I would business service digital our But of downdraft I in up we're look the say, in also, high really a services, terms of overall year-over-year also but areas, terms -- in at on progression. traction, volume

Barry Hytinen

Bill's really the for Yes, And about, to up And at phenomenally business would team, on I add only is there question. respect rate spoke services growth you George, again of is XX% at -- our is look think that masking I I I of the that of that is a Global doing terms only because, couple our some it's things the Thanks thing way that's RIM Barry. I comps. the well. think point happening to course, ALM to Bill total growth would against in the with core. the big would The what's point

mean, and as digital I other well it's the point it's offerings, driven So are growing is strong the by -- all for it as made, us. performance, a that he core very solutions which

services but I'd first it's small doing year. of the The of completed out a is in second that other last center you fit-out in the we call We quarter. were half kind know, as thing data factor, in

as And we explained so would that hard makes comp it the just year-on-year be.

were rate on services to. weighing pointing total that's factor another is that So that growth that you

into ALM us half, with get you'll we I really Thanks and think as the back two the in Bill getting speaking respect about for and to the services growth rate center the that into see pipeline you accelerating move that the beyond comes question. through first to get fruition also as and see data -- comp was get meaningfully we challenges beyond the then quarters. that

Operator

from Kevin Our with next Credit comes Suisse. question McVeigh

Kevin McVeigh

the lift it fair, X going last last it QX sequential Barry, I'm But you like not to so and momentum. million, like off X going the can looks on been $XX in to the about $XX the be me maybe million. EBITDA $XX million it's this. is have with Congratulations looks typically, the just help years, years

right. we a about takes and the year, if reaffirm Matterhorn when thinking seasonality help more of EBITDA you that I'm allows the is the that back Is about that Maybe better benefit understand So it pricing? little the guidance? just project think in puts half to bit us from

Barry Hytinen

Appreciate Kevin. about Thanks, very trending. Yes. feel the where question. good we're We

and down quarter putting you quarter numbers adjusted right is not despite the some bit projecting the that that expectations for because a came in fact quarter guidance expecting -- than is what that In we're the we're we we're the we've reason things fact, second for confidence second second pointed better our in the ALM able And in back out. little in our for couple of the a is our first that in second line, to and if were achieve in quarter. up similarly the the the just half of

We in are seeing the even management better projections business. revenue

our rental year-on-year. strong and growth an we as an X.X%, have, RIM in marked organic sequentially Global which have seen very basis, business, We storage acceleration you've almost on

XX%, rental storage organic growth was strong. total was also very Our over which

And tell to see move more the you and passing light that recently that through pricing I passed in improve, of we've are management second center to continues the year, we'll fact quarter, together as that's we activities in the industry that will revenue some here going phenomenon. more be we with fact the even data an and

half. our the with together that, in will back very strong You see, are commencements

So as you data accelerating very into center And visibility strong on that half. we know, be the get will business. there's back as

there. confidence making So I'm it's a high that point

we where we feel very good about are. So

of specifics In the that quarter FX the versus was terms said timing half. on a in the the and around In light mentioned second the of tailwind that reiterate, -- back I'll headwind quarter, second note in -- U.S. even we quarter. the fact, be more have first topline. of still we the dollar million just much slight last in may muted, an almost I'll $XX in becomes second versus you the strength, that of call, But half. as

We few first also get are the through standpoint. an a from in EBITDA half that items

we last over we and sale As and additional comp with we the half get initiatives back did investments and half comp those from commercial as well. as move know, our into leasebacks more productivity you favorable back the some we to in we've those year a made,

expectations I'll even ALM. about accelerating we well you, muted with business Kevin, more around positioned So tell feel very

Operator

Jon Atkin Our with next comes question from Markets. Capital RBC

Jonathan Atkin

a then more compared color And to around of and the a get extent but these discussion competitive government discussion, and sales deals of was the to on faced with accustomed with enterprise? dynamics about you're the and that little tone cycle a with to? both agencies curious of kind sales I bit helpful go really of is set what would And just to and government what's you forth. faced be maybe those that bake-offs a you kind cycle bit pointed you number of beginning, wins you the large so enterprises decision or Towards the maybe for with more little to competitive the bilateral out

William Meaney

for question. thanks, Jon, Well, Okay. the

about decades, involved a could over and them. that for -- it's so talking cycles, company it you want couple work different. give bits a is was able of more on been this vendor color a full of to probably was that So I but actually an we well, right? The company sales And in-house these, actually they of the range the we've I this that doing start wasn't instance, natural talked aerospace like for case, So something a year, but do had of conversation they for services. that to company actually of about, speaks do part they the in

of said, sensitive, outsourcing I were get the they to full right? for missing, they're takeover As one Because really someone these things of world and if looking goes around very grounded. aircraft

sensitive So the reliability the their security of they very, very and about were vendor.

in visualize it, in In could storage, are in that range do the decades other to do, for services a the they sensitive do very that different tools and able able words, that the physically world. also a full were not that to what of them just areas we're was both other stored side could just the consolidated then And digitized basis. but they obviously, and anywhere And what could bring digitization, us see that they not they've and was known give of that to to we the them.

huge that win a them. So for was

sales year. the say was like a can over cycle you Now

the year and at been we've ongoing visiting decades XXX,XXX a the that's part of over having been the that had sales for of an but think it's power relationship. conversation, customers decades and I've team I with of customer

with was which government. one government States -- I one, mentioned, X -- The U.K. in one which the and of in United them, the was the

long certain as quite been of Iron Mountain. customers beginning sector government I'm sure government some about lead folks for was time, contracts, slow-going been we've have very For huge talking the potential because the times. at actually aware, normal But a you're X But investment, more company the And those both the have for as both again, that or say, VA the there we've I last been was our being it of now we have years ago that for X, following been starting the -- working British years segments. become the that's and big starting with with were -- X course. again a X to government so with would in

started short of do with a to months' business years as is things already as level they one X because So we lead a a work track and these of of some X record, that. the we're X now are that or ago, regular just up it's statement and course but able time where have come conversation

Operator

Next with question comes Rosenbaum Stifel. from Shlomo

Shlomo Rosenbaum

a revenue had color management year. Is now? kind the little some you expect revenue on Barry, about in management what very and a going revenue last Maybe what investors you was Can good there. able you to quarter the times to being on? few bit raise favorable should management and management. is call the prices just of guys improving little lift a talk there for give alluded mix XXXX? more could you pricing And out revenue the straight Or good

Barry Hytinen

Okay.

for So question. thanks that

good job RIM volume that on It I at terms real was phenomenal growth basis. been standout. solid When trailing on X.X%. we as a a saw know, XX-month million trends. a about rental Global organic think storage $X.X team doing up is you you was revenue almost cube a with its our of management. in look It's And

total rate course, commencements what which is, the on we center terms in the that, So you data the gather benefited I'll vast can tell was center we commencements year. by with from year. of management. of of And majority that in XX%, that by of the And growth rental the very of well driven the storage we terms see up through you revenue importantly, data growth feel remainder whole put as positioned

that the going storage market in into feel with continue company few have see total months, already XX%. order, put to to X%, that think, activities of I very additional place next over revenue growth this the and are management I rental confident we Together going XX%, we we've organic

that management continues to environment the And for be revenue strong.

this we're last revenue than relatively what last as We of as from both more have activities year. factor did wrapping Shlomo, we've will year, had this year And is management year. well that the we a in

excellent we continue see Importantly, retention, to we I that demonstrates in are our very and bringing think significant clients for these areas. that customer value forward just

terms we In of just storage. management beyond mix, talked program before, I to would say about as we continue, the revenue expand

So trajectory, services, in you that's we feel seeing service are management our on across and like generally improving right so offerings trends it's revenue our line and core Shlomo. in the all

Operator

next Our Crossett Nate Paribas. BNP comes with question from

Unidentified Analyst

is dividend updated development funding on lowest the the does this your needed? financing? Maybe Would I wanted can And for pricing remind look level while. you payout, on it's plan the like What for . you then thoughts in just any asset us with been debt here or also year? the This company the do a

William Meaney

question. the appreciate I

Let me on comment about a dividend, question on Barry -- last more. when fully take plan Day, plan. on funded you And know, Barry let Investor your but funding plan, let we talked I'll I'll it's the and then from the our that comment as

a forcing natural our we is kind of for right to increasing when function we which to On becomes are mid said zone that low in out the XX% payout now point you're dividend. ratio, dividend,

now starting into something that to that range. settle that's So we're

force get just it natural events range, become to course a expect will can increase just the which you dividend. So as that as on rules that a REIT guidance payout natural of in the we

that think in area. now So I we're

we back to start XXs, of expect start just into can when So the half you I the low I getting then down think think dividend. in year, the the progression drifting natural and we a

Barry Hytinen

issuer, the I routine we last a compared couple a where and favorable for improved become from been see work with generally while plan be of think over I for it's will we of as the mentioned, was forward. Bill rate the funded years you a in of couple this has last from know, year When our last fully of to at and as Day, that's we we clearly where going a market question. guidance, standpoint much as moves, discussed outlook Fed moved through you the debt And -- Investor up the more as terms we the Thanks couple quarters, could some it improved standpoint quarters. say it's issue of market of would a versus over an issuance. and today, And the have

there's otherwise. point, be asset-level it your or financing, construction of interest lot in to And for whether a

data are from there because of sure couple very improvements. a a years basis. as see, and looking see and we we're Clearly, I and little want to out we plan partly center see have we continued that to where what's at so something but a But on see market to higher rates options And were lift all but attractive continue still liquidity, those of routine making not a that perspective. than plenty we bit of to we have continued kind they in do, has them being just you ago, pricing issuer it's should our the shareholders. best for have to you us expect an be

of In fact, up trending year-on-year, new year, that's retail-type the XX%, about seeing we're end be center much to entire year net and next the by I our early like data more portfolio, going toward, deals like think, consistently XX%. pretty across

is move. And pretty significant so that a

even seeing generally cash-on-cash unlevered mid-Xs, stuff moving not I industry a higher. on writing I whole of where that's Xs folks And think I'm think lot something if up, a in like returns of is lot the or Xs, hyperscale importantly, side, in then were the seeing the high

and trajectory supports And so I point the was industry. that earlier. the I think good making it that's healthy for It's a

good. really feel we So

Operator

with Our Steinerman Andrew comes next question from JPMorgan.

Alex Hess

wanted Alex ask Andrew This about Hess is briefly ITRenew callout. to I Steinerman. on for the

end growth implies math services Could sharp into will driven that if that markets? maybe You sort versus you is XX% what into ITRenew, in was degree a give eventually any that that, out that right. deterioration my which ability been recover? you And dynamics by would year-on-year confidence other pricing revenue through business, sell excluding and organic, have of break that that to highlighted pretty quarter-on-quarter

William Meaney

to start, go the really for as Hess I'll year. Barry the ask talk and and about Thanks forward comment trending see then question. I'll how that into kind we of we

So very we been comments, quite great in because constant, at progress that we that hyperscale. you at at enterprise. really just as actually, our QX segment ITRenew, for focused is, the terms my And as volume pricing acquired on asset in we look if frankly, alone, of I the portfolio if year expanding we good have the customer said know, ITRenew holding mean, made would looked across was a I

we which look the year-over-year. ITRenew at hyperscale, percent XX-plus volume if was is is But up just asset

volume So good. really was growth the

However et the seeing -- some area. anything companies seeing sure has probably you the is that chip other this memory that I'm down touches happened what's cetera, the start that to follow, when electronics in and of pricing in substantially you're manufacturers, manufacturers, the industry you gone the

about components XX%. over for down we're So number talking of a

are even or we on the even portion the hyperscale point right business at out, volumes look we year-over-year. of the absent fact spite drop up is to -- if sequentially have the seen in ITRenew XX% a QX that you're to of So QX of revenue portion business the -- of

see out we prices, manufacturers, and CPU So the manufacturers that the starting which taking memory now we prices, gives and seen of do further of confidence those them stabilization chip February we've number of on stabilization see the we've we March. capacity a which going seen, kind a towards good is manufacturers, news see I us into say, of that would the of end the market,

down going further. see to So are the that now we go right prices don't

that's going to CPU say, news. the early -- we the really chip/memory next we the So of firming expect don't year. the until market I good that But is would get start Barry? up parts But into

Barry Hytinen

in which Alex, give of could you I I'll the find bit a appreciate filings. more question. the our little you detail,

business So in ALM in million. quarter, our was year, first quarter about And the of was fourth $XX total the million. it last $XX

$XX last so against And and million that -- year. compares

the of pricing quarter trends our revenue of year. for light for talked at of the business second of in that quarter with by our timing first the We've I as million second end Now the was the consistent the quarter is the peak assumed about second year last and in $XX of revenue. was guidance this lockdowns the quarter ALM previously, year,

that services first on, in of quarter, So the again growth the a and the quarter. will rate it in drag be course, is second

flat that if going you just the at the tell would it the -- but I At is seeing anticipate But you happening did of this guidance, end. would low the this just trends conservative we very at the don't for to sort we're of I business. sensitize we in see low have in range, which opportunities at really level the that revenue strong the year. I light assume our our to for whole is posture what's in the of end wanted pipeline that's end, low not happen, of

already little the quarter probably in to will And to is you. is to is be third year-on-year. running for happen think giving the way the half, essentially in projection second the planning sequentially. the bit here we slightly flat of we be ahead up What we're a then second I'm going We're quarter slight --

devices But do on X will maybe called a we're of So fourth the This and the is little remarks a in in a implies out OEM, And lift give you another the lift strong I color. -- and largest around in one we have prepared that pretty bit a our confidence of ability manufacturers situation that tell the that. more with quarter. world. I'll little where dealing you in bit deal of I to

several them sorts on and be a with we're standards that similar the core they'd very the on These looking them of asset nature. services a things finding in management, Ultimately, know, large of companies to and they're storage, data is markets for IT around enterprise can specific things basis, them our clients. to with consistency, a things with asset currently and provide like point as do local multinationals of like are we're working because They're what everywhere and all we'll There tracking them using recycling, you remarketing. more all for [indiscernible], like have uniform and we looking players lot they of partner those, world. work very approaching business can of are who with

another we this low through over time. ALM confidence. very the which market opportunity. working pricing. think continuing huge now, bolsters -- example the space. right team good It's is is very like business just of what feel is to a So ALM. good share tremendous position we're it and industry about it's through everyone in working our and And component reiterate, really grow in pretty We is of to how take our a We're to the our diversify a and We fragmented, amount

Operator

[Operator Instructions].

Wells Our from Eric next Luebchow question with comes Fargo.

Eric Luebchow

So to touch center data I the wanted demand. on

year. for portfolios So leasing if you're like it so a towards up. really look full looks highly start more your leased in-place goal the are strong year, And development -- than you your to the and pretty XX%

leasing of demand, talk maybe land So high what future development your beyond initially then whether year to? some holdings, accelerate at a to accommodate And level, data you your about ability continues additional you of this your you additional if could expansions? guided could center through CapEx to trend

William Meaney

hyperscale, is control. especially good I'll And your more side. think start, the as had talk full the on reiterated we've CapEx how megawatts with the a Eric. even because the We we think really XX being year. about -- about appreciate, the a point ask for generally, bit or little plus flexible out of we've timing though Thanks, that as that quarter fully never can yes, you year, I Barry in achieved than first responsive half think you the I But under to there's

say we So in -- of we that things we that new were QX. signed expected that some the in -- leases I QX would that

it especially for halves So rather when in as up I megawatts. quarter client signed think kind that than the we XX by of just X hyperscale and of QX different about in quarter, of year X contracts had clients hyperscale X talking you're

for is progress. of which megawatts up year land, In like to see XXX you ago, really a good terms making were where are we but we're we of enough holding expansion, further having capacity a big from uptick

So we're regard. we're in that standing -- still not constantly

our last beginning a done Northern just with with Indian trips both X customer team Virginia couple I I the our potential campus months, mean in of the now since visited and year. the of

quarters develop. So just that we're And we both standing think can and we capacity number the we still if of making But those think to the bank the Barry, not sitting good land that on flexibility to about sure accommodate in is have that want more for markets the demand. feel about meet megawatts year-on-year, have more that about XXX of that the and we terms CapEx. might we continue in our uptick next growth. But talk you of we land to have you how around

Barry Hytinen

I talk is kind and Thanks, and also Eric. signings obviously, strength We to you center team in in terms strength really this good data performance of to continuing -- the and morning. words. It's those our business. new well appreciate margin doing

hats team to our off So there.

put of to of with capital, you into data data year, quarter. vast majority In deploy the $XXX terms to penciled center center. CapEx we first the of we going of data a million Year-on-year, and center that as this incremental about amount had CapEx in growth considerable know,

to so we of problem, plans. a continues that, much ramping over think do through team conceivable a pipeline to continue to of me center data sell it's that and our our benefit and is sell team be, the pre-leased it speak, to the being for CapEx time, bit high-class yes, we of have the will as I so sort

to So deploying this standpoint, always half we to relatively first so capacity spend additional terms year capital. We do than the did we in planning CapEx, more of year. in from were last a speaking, ample have timing

terms deployment first how data pipeline this additional a year, towards the bit we amount the deploying note, As And quite here after center shaped more through get in at that you considerable the quarter. looks, recall, see continue in and where half, strong, little midyear a time. we'll last in it trend was I'll of back which second half the is

development at see driven rates commencements. little about we high As a is may talk midyear, in of we of be levels by really growth positive terms bit but to that more, continuing would see very to a organic how that you

you in we're terms As pre-leased very our of underdevelopment. know,

of I XX% of pre-leased in think we're now under construction. in terms pressing over what's terms

it's be. So place a good to

relatively The thing and only has out been we call it expect the be I'll guess low to relatively I to churn is that for low, continue year. other full

questions. your Eric, you, thank So for

Operator

question from Lynch Barclays. Brendan Next with comes

Brendan Lynch

a still early mix how wondering in contract expect called it's wins. multi-vertical about trend I'm which some gains revenue to I over the see more of more large kind vertical days, customer a to wanted momentum. to of long very but Project discuss revenue base? have multiple been of to Project Matterhorn as little bit you might lot wins I Matterhorn. you out your type expect that the mix, Do term more of large these legacy relative fragmented understand you a

William Meaney

has Project Thanks, really -- foremost, No. Brendan. first and It being Matterhorn is customer-centric.

And component do is sense some a to storage. Mountain service to also physical full range around is of especially picked side. in to, have our sure on these there range we make customers. a it's of that wins, digital a if is try services up co-location we of big bring and the big you we what So probably got But

the from is times almost company think also of of assets. aerospace even -- couple and physical the to it's referenced Q&A in about everything storage So to my I've you in digitization remarks, their there a if that is visualization

solutions So of it's -- breadth is types different a full there storage a we of have. the

bit, I we storage can as that from our physical of X.X% of is, XX%, rental from a part came well. storage like traditionalized of if said, big you that look rate you our growth organic of part that -- think our data a and business But as expect came even but a physical center growth our at growth revenue

of see We part part other of kind storage. see center the frankly, quite But which even still it's their business. center of us business. most a It's the hybrid that still a or solve types we deal. physical customer, differentiates physical of when go to storage usually driving the it's on customers and profitable a physical storage about a we solutions, our of growth big set of the we and talk or document a problem, data storage of data -- helping So see one storage it's then actually when deal -- a really whether

one-stop rather that what be someone Mountain that can to they're a than we're the Iron to few see to stops solve trying sell. shopper relatively really They actually solve trying as problem

Barry Hytinen

Brendan, center in quarter XXX,XXX I'll in team XX mentioned within one before, basis, talked XX% prepared go when remarks was clients. you of within logos megawatt as base, if key from and the what client the and And cross-sell our existing center those new our I data data that about Matterhorn signed add, that cross-selling. on we to segment initiatives just we is back a of our

a drive trying indicator that's good think cross-selling. of Matterhorn I So to our what are we initiatives with around

Operator

from Stifel. Shlomo is Our next Rosenbaum a with question follow-up

Shlomo Rosenbaum

Bill, I underlying about missed had RIM. thought you the ask I you volumes don't if it in

the businesses, out consumer developed So to and on playing underlying you ask if emerging the provide like markets you I'm more versus a now other, color how little going as RIM adjacent talk well? and are markets maybe of little factors can a bit breakout about bit just

William Meaney

coming on. you appreciate I Thanks, back

same we've trend that seen. so no, it's So the pretty much

think about kind is that single world record is it's new, the positive combination customers. continued the storage at some what the document our same on emerging as the as you continuing Latin our like volume. are Eastern areas places business new facilities. say, and well of storage mature, it's around it's as we before, maturing Asia come America, But markets. I've it's Europe us into areas, customer And Europe, the to every to Pacific you about But Eastern and in I is North America on for flat of the would would if the as down our about, growth terms time, talked volume discussed whether that slightly that So side we're markets, some really of trend. the in we've I call, of in is, as doing of send

So around what storage. are expanding physical needs their

that volume. as positive business, is continue the build -- you to noticed, So

to continue real footprint. industrial We high across very estate our utilization have

Even point what to which off key for is customers a storage, they're provide platform that around is keep that a of we weren't and physical seamlessly storage new digitization continuing in secure storage our referring them, was across with had really to United I do of before we the big for those our and solution a the providing assets, really that, need Even team because a have key our So but whole bundled part in industry. around hats documents company facilities them. the physical to those aerospace of the can it doing for some end-to-end opportunities. solution their unlocked the mature we Kingdom information a of storing management by customers pain market that as or like

part now forward. it of of kind really it's the of you can our range a So customers. broader have numbers, see to conversation with the move And continues Mountain we that

So question. the thanks for

Operator

First Quarter in today's question-and-answer Mountain concludes This you Iron attending Earnings the Conference XXXX for presentation. Call. our session Thank

now disconnect. may You

Iron Mountain (IRM) 4 May 232023 Q1 Earnings call transcript