EQIX - Earnings call transcript Q1 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, and welcome to the Equinix First Quarter Earnings Conference Call. All lines will be on able to listen-only until we open for questions. Also, today's conference is being recorded. If any objection, please disconnect at this time. I would now like to turn the call over to Chip Newcom, Director of Investor Relations. begin may you Sir,

Chip Newcom

welcome conference and to afternoon, call. today's Good

and would remind including that results XXXX. everyone filed we today's release and in intend our will get may this some may assumes to affected I the started, nature statements forward-looking SEC, in on those are obligation and filings statements XX-K Before made Form XX, vary that identified we've significantly uncertainties. statements like our of those by making the press does today risks from involve and be and Actual recent we identified be the to Equinix comment in no update on February most on with not call. or risks forward-looking

Disclosure, Fair it financial through Regulation of is on policy an to it light in during explicit addition, guidance is not its quarter, comment the unless done disclosure. Equinix' public In

on reconciliation in most Relations call. GAAP reasons www.equinix.com. addition, release non-GAAP at conference list of measures company We we why the Equinix the on to press today's page measures the the a measures uses provide directly and those a these provide will today's measures In Investor comparable of

website check and us Chief on time-to-time for Officer. the today the to CEO post designed important of and information Meyers, encourage our along most regularly we Charles Keith IR available website a We our President; would Equinix' Equinix current presentation about IR Taylor, data. from available. other are We made certain supplemental have remind also page the to that, you on Financial discussion, you this and information With and information accompany page with financial like to

the analysts I'll over sell-side wrapping will questions limit from time, interest these any call to we'd questions ask under like turn prepared be up to At the remarks, one. this Charles. analysts. we Following hour, an of follow-on to our to this taking In call

Charles Meyers

to actions best churn, demonstrating XXX our line delivering XXth all fueled demand welcome net than of and Good call. We both longest in call. X,XXX executed scale such a XXXX, top history, first any the growth, quarter performance quarter of across low of everybody, booking earnings machine. consecutive of had you to Welcome We three and the Chip. our streak net the afternoon, strong resulting all than company. quarter more the go-to-market pricing to our deals in Thanks, regions, customers, X,XXX robust to near-record also S&P by the consistency more across in and our the start great

distribute transformation digital part the scale in globally and prioritize that to still their to be continue to perform the response sectors to Ukraine diverse continues infrastructure demand. infrastructure underlying factors a While of macroeconomic well. interest the business enterprises to proactively conflict, in the there as rise are Unfortunately, we globe exceptionally response in conflict. innovate, rising continues and and unfolding, that across war rates, providers we service demand for number And global to continue to and continue and vigorous of manage, inflation including geopolitical is digital that

stewards As aid and part open to humanitarian infrastructure, world's of maintaining of in in committed digital relief. infrastructure and communications support elements the we're key free to doing that our

or operations team our Ukraine, generosity have Poland. particularly not we While in do have Russia supporting incredible refugees, in Ukrainian our shown employees

well-being of increase mental leveraging in to the employees, pleased progress, I'm including a our and and representation in increase bold our XXXX market and reflects recently governance corporate a agenda a highlights, leadership Looking report levels more future-first and advance that continued company's continue X.X% environmental, broadly our of at health at leader, our number a initiatives. published our values social sustainability across our sustainability women we We to benefits. responsibilities as XX%

and diversity We historically opportunities and also continue for our outside of create to enhance underrepresented to Equinix. develop pathways both and inside groups, partnerships

on urgency efficiency and PUE. of to and year, for look As our focus that facilities renewable top the usage X% to measured I'm of have commitments. energy for also companies well work sustainability ESG fourth is on by our to by Equinix that work as average with proud, also over we power portfolio continues the address energy coverage meeting change, way and for of while In annual improving our over consecutive XX% they from XXXX, commitments. mind effectiveness, be as our established buy the or climate achieved goals customers we science-based A to target partners,

harness leader, we digital on world's more a business. sustainable focus will to to and the important stakeholders continue equitable of As technology impact that have responsibility we power our future, and a infrastructure the our issues the accessible, to create and

Now, strong basis. better to results Revenues again than last same These expectations, the currency growth a quarter as up our was and turning constant rates three. on slide EBITDA on $X.X due to QX up operating was were are and the year-over-year, X% all depicted over XX% AFFO for billion, performance. Adjusted normalized year.

Equinix an of network metro. extending coverage now some sort organization's and business and services amazing seeing MainOne, and bringing Coast, agenda. underway in extend a one their including countries, into Equinix their April, edge-first new XX XX% Global infrastructure as already in our particular, representing Ivory an XX economy, differentiated of XX in with scale a the expansion countries. Nigeria, dynamic step extend will projects platform first as digital in security to leverage XXXX, to we to close as transaction across D.C., of the enable multiple a to leading digital across coming as expected for our portfolio both our Tokyo XXXX embrace in Chile reach, Chile, as and continues largest Washington, strategy player further of revenues, the upcoming and platform from digital acquisition Mumbai, with to scaled metros more and customers economy announced expansion our our In Our the of leading digital data enterprises. well in emerging global infrastructure our Santiago data Nigeria, into telecommunications processes, of of the than services Chilean we XX% According technology per significant nexus as center provider. impact our acquisition and regional And This from will and and also centers ecosystems architectures data recurring across GDP metros long-term we're by is and IDC, local stewardship, emerging planned digital global hub, of Atlanta, Ghana and highest cloud our innovative digital practices hybrid Latin edge key to closed XX multi-cloud fourth deployed In a quarter, XX into Sydney, Entel, point America. South capita digital the solidify drive content is the through demand, the embed the region. for as in the a opportunity in and provider is Africa. interconnected is customers QX in their serving America in projects carrier-neutral with

interconnection. to Turning

backbone Seoul We and on portfolio driven continues XXX,XXX in interconnections and an growing our continue agility diverse per strong X% and across destinations for cloud with now deployments, as Mirantis virtual constant Dell, see uptick of to JV XX% and second. with with challenges. utilize with Korea megawatts XX have customer the built as closed market Network the fully XX% Metal provide Equinix provide the set quarters the to year-over-year a our net to helping and fabric we expected all megawatts currency more GIC, also a Sydney ads South and we when exchange And which its initiative. leverage wins by Shifting variety gained to than over of mitigate and in a JV And peak nearly more portfolio. traffic our and terabits industry-leading service XX xScale which and key which expected top broader Internet virtual for rapidly In to incremental networking to across Edge connectivity. Storage than platform. normalized enterprises with already saw connections these added cases XX chain connection capacity currently growing most the out. momentum. we them enterprise healthy pre-leased. total on demand its Australian Pure services a ecosystem. its increasing use is PGIM, closed business, are Metal market. increasingly go-to-market our March, as basis, to customer year-over-year variety has accelerated ever April, closed under our two-thirds saw X,XXX Our and employ in healthy than Equinix of partnerships incremental the across over customers an outpace our a of since is builds interconnections had X to several megawatts expanding xScale total adds XX growth development launch, backlog and capacity, We of have to supply end quarter-over-quarter digital quarter greater Fabric of services in up highest

from I'll now highlights cover some So verticals. our

with had all key across channel and momentum Our carrier network vertical quarter a good record regions activity great our three partners. with

hubs fastest-growing largest in its the growing into its sector expanding for enterprise to user. a establishing X and military broadband India, its to expansions supporting the continues X satellite IBS, quarter one public footprint by strong network our network a and high-speed subsegments. wins expansion connectivity with included vertical led New a our specialty EMEA in commercial ISPs Mumbai Net, upgrading and manufacturing and in Australia; markets, bookings and Global of service be And and support

to robust strategic digital in sustainability company suite and the of creative the those global services. where a to connectivity establishing critical funds choosing [indiscernible] entertainment sites New need, partner, money as advanced it Global in National a and bank to transformation. enable services a our Equinix' hubs the The they network strategy, of proud and enable key thanks Ukraine, between as infrastructure We part Equinix digital humanitarian cloud digital edges regional expansions institutions technology within the Technicolor, and and connectivity full as our most [indiscernible], private those the celebrations financial technology to utilizing wins with distribute industry were our to who also using leader to and the global interconnection included with media connection to to their need continue could of leveraged allow industry, offerings, efforts. center ecosystems work UNICEF that their Bank their

on-ramps the led by and infrastructure Janeiro while cloud bookings IT services solid vertical quarter, cloud de Stockholm. Our subset, adding had in Rio new in Dubai, the and

partners and edge New And network A Equinix a Fastly, channel provider, leveraging fourth company, cloud and expansions services who connectivity Platform infrastructure strategy. to across included is hosting their services finally, products. add consecutive wins of multiple direct Reseller and have across reporting delivered leadership range new a content across our accounted of deploying as tremendous helping data customers adopt We'd distributed alliance to streaming of helping of demonstrate leading nodes streaming and to of CDM they and models. quickly services bookings, to initiatives, Media across Wins the record global of support first with partner of business and Telstra, partners industry AWS, saw choice. complex like over benefiting worked We wide business industries. cloud to data and security were AT&T recognize year expanding compute rapidly of regions and again enabling bookings, XXXX. continue production. and expanding customers for strength drive for cloud global expanding together multinational Microsoft, interconnect architecture SaaS strategy Equinix company, Proud in XX digital including XX% consolidate XX% its credit prominently footprint of digital their verticals scaling capacity customers for in hundreds choice its providers. centers also consumer customers bookings content subsegments the in and including like as our their broadcast AT&T, with and the expansions and continued as of AT&T financial to partners and quarter digital for via logos. cases media, France connected transformational to Equinix support anchored roughly of multiple our Fortune projects, program its Digital XX% including new with as a accounting a expanding The featuring Equinix multi-cloud Conglomerates, digital and Edge, on use And a win company and solid significant first a the and of Dell hybrid portfolio. service quarter outcomes strategic cloud a channel

quarter. turn results Now the Keith let call me cover to over and for the the

Keith Taylor

and channel delivered team the hope We solid in Americas Interconnection do business and faster selling highly for well of and the the Equinix, Thanks, our inter of I in everyone. further opportunity a meaningful better activity doing the expanding the Charles, revenues and well. XX% universe overall our we're anticipated. physical activity, recurring growing Interconnection robust At high great quarter. and to enjoyed than level. our another good did remains reflection virtual you're across of intra-region bookings, the both revenues afternoon experienced differentiated business. growth than ever-expanding footprint. and are We represent

metrics. XXXX, our raising strategy Our With remains products to value, acquisitions our us in pipeline in Canada, we're of growth and in great recent continues core record the each our others services platform outside We from financial momentum had further continued our Mexico. from solid despite deliver And across space. India most its separating start and guidance our strong digital bookings. to a our

previously, markets to as customers puts a highly macro diversity our said manage well in we've believe as and across digital on we all and and favorable position volatility. the scale of the As us sectors, trends business capitalize factors

have rates. meaningful We rising interest near-term no to exposure

sheet given to marketplace, combined are per us volatile, energy to line access expectations us to to growth, With times infrastructure the to seeing navigate unusual we're capital components. steadfast enable and our us policies shareholders balance And top regards period. return the advantage, supply factors, delays at while These strength to continue in critical attractive we us while deliver the momentum access AFFO our chain limited and growth in strong commitment ability to our when are with remain to well. us. to our this hedging continues markets provide against inflation, secure helping durable and a deliver allowing remain our with with share as Our projects our strategic that markets

in section cover me on this quarter. are for that normalized currency all let Note rates and Now constant a highlights the the growth basis.

QX XX% expected same the MRR than X, depicted nonrecurring certain at global by revenues offset were year up fees. quarter As $X.XXX due guidance billion, delayed of and our better of Slide on last ex-scale over revenues, the the midpoint part in timing to

we a revenues. strong both step-up As recurring and non-recurring in we look forward, QX expect

FX the installation million guidance prior we've hedges, to was fees. lowest compared of $XXX was quarters. our of lower guidance QX work above costs. As spend, at level AFFO fee right move of Global prior when the Total was QX a revenues our non-recurring strong noted revenues, timing when up before, quarter the can net QX or of ex revenues, guidance same our operating compared $X to of the the headwind are our adjusted FX customer included FX xScale over the attributed asset. $X selling last customer hedges, was scale into high a between operating of disciplined and X.X%, year EBITDA reflection QX right although $XXX and lumpy QX application performance to to strategy million of right XX% also the $X to expectations impacted headwind X% million included inherently rates income our platform recent churn history our of million by adjusted end our and to due and churn includes million, it net and a the EBITDA, range of due performance. rates. MRR strong integration with global in

churn quarter MRR average to to our end expect X% now we XXXX, For lower X.X% the range. at of per

Americas was the our The regions on through and Paulo broad-based Americas we at and X,XXX by over region and highlights, Enterprises led agility basis market. seven. the markets. and quarter The to flexibility by Washington, our record that with businesses XX%, the announce led robust we X%, infrastructures at year-over-year world. interconnection full a represented also multi-cloud followed great fastest-growing capacity in another hybrid significant half D.C. and XX% New to EMEA results bookings Sao five strong a saw Internet to on bookings interconnections Chicago, activity, Turning respectively. saw platform whose by continue the total had covered as exchange our slides region maximize digital are regional APAC channel and normalized Dallas, activity their region leverage adding region's Equinix York

newly team the very position In thought to and EMEA, bookings regional with sustainability Equinix with focus billion fourth commitment the Our this three to Asia cash, We the a X. Shortly green after the net another in operating continues dividend. Japan for slide we're increase highest activity further had project and bond prior EMEA of issued sustainability And green we the pricing businesses, with led has an growth of Equinix Mumbai Pacific to to with S&P traction region customers issuer quarter, solid company our have for refer to $X.X quarter CapEx our ever-increasing the now the quarter and to largest green financing, over early our is and momentum X Equinix flexibility delivered BaaX solid see exports Australia, our cash quarter, local pleased increased at healthy in with communities, are India investing In we in development leadership had end, $X.X years we as our rating the region with Moody's. capital Dubai, $X.X market. by Milan levels. and flow, approximately as both global With services. importantly, Singapore And by billion offering market due upgrade largely strong all offset increasing performance of markets. fourth across ended leadership. Chennai. billion its to the from quarter latest cash and we region our retail and well as three our digital targets. the industry across finally, our completed IBX raising please our an April, behind approximately our support We're our leader work a and now for structure, the strong expanding mix led by with the land announced Istanbul, appreciative investment-grade and great making purchasing financial while our line bond looking at London have And local in bonds, Moody's leverage we're Fitch in to delighted agencies. of also

approach opportunities balanced shareholders. our growth stated take forward, we'll our while both funding previously, value as creating equity, debt Looking long-term for a to continue to and with

X. slide to Turning

capital approximately revenues. the in Mexico were including retail purchased from of increased to Also Revenues City. new own $XX in two our For seasonally expenditures land development projects recurring for the million, total $XXX quarter, in we lower of Singapore, CapEx three have million. and Muscat opened XX% quarter, markets, assets

capital returns, slide as Our investments delivered on XX. shown strong

Our annual by X% assets XXX in IBX on constant a Consistent recurring basis. increased our years, refresh we with revenues now year-over-year categorization. QX, completed of stabilized prior currency

Our stabilized a we XXXX, our over refer our guidance performance organic the million, Entel note year. XXXX include guidance XX very currency stabilized asset normalized revenues and to with results PP&E IBXs. revenues now prior These by bridges. from from invested. And constant our includes of basis but approximately which momentum and we're to to to collectively the summary guidance, and report pending MainOne. XXXX assets any updated XX return the on expect $XX full six seeing our for increased which financial through please MainOne increasing million the our XX% QX. count XX% the Do does to gross we're utilized to expected are slides the the by is for not we're in net generate our revenues increase operating includes improved cash-on-cash and anticipated acquisition, on related and prior results year $XX a the by of with business close Relative XX% pleased in revenues that Starting acquisition, excited

underlying X% offset XXXX from compared between of and from $X.X accretive we increase between of between expected the XXXX now to EBITDA MainOne sheet given constant and to of and grow XXXX to costs, incur expected $XXX the currency our constant is AFFO costs excluding adjusted now including operating increased million accretive, to is when approximately about XX% and in MainOne by CapEx And expect acquisitions. prior recurring previous to we X% costs year, financing MainOne. CapEx and XX%, normalized $XX XXXX. expected expect on-balance on $XX to of billion, on includes now integration million be currency the we're the by million the We is debt be AFFO the business, momentum spend approximately $XX integration range per million million Entel $X.X and $XX Entel immediately guidance, an $XX which the And raising in a grow basis our X% acquisition and compared about to share spend. normalized and expect closed. XXXX to million billion basis. a xScale of Note margins

me let here. turn the stop to call Charles. So back I'll

Charles Meyers

outsized accelerating is to In the as tremendous levels. globally the had and closing, expand proposition multiple adoption business, created, robust proximity prioritize churn, equities. And service expanding we growth Day distinctive at and distribute and in remains continues it position providers this stored digital simultaneous execution. for geographic to transformation outpace our to to and year. of the Analyst is channel trends and Data reach, business across fueling a need Keith. their being strength thanks demand. start for the broader aggressively pricing globe to continue moved, to manipulated, infrastructure low value Thanks, backdrop platform The Growth across in ecosystem the digital digital demand the expectations, unprecedented demand services, infrastructure enterprises positive strong response to the for vectors

and enrich work, the even our agenda comes our we our deliver leverage pursue create and innovations new environment. challenging our sheet planet. rallies balance to to world in continue and to purpose the bold shared future-first guides our as capacity, macro where increasingly team an that We our our platform collectively together sustainability the market-leading expansive life to scale And be

remain performance and focused of the with our about you, ahead to optimistic keenly to distinctive and delighted durable are and business, road customers delivering shareholders. the the value on ongoing We our

it So questions. up let for there, open stop and me

Operator

Instructions] with Morgan [Operator Simon Flannery Stanley.

may go You ahead.

Simon Flannery

evening. Good much. so Okay. Thanks

think talked you from couple sort significant in about to just European Europe. a seen environment. macro And market risk talk concerns side, the March we about of CIOs, you've could there. in what April the et ITs, just cetera, I and seen recession perhaps, in There's -- also times Could increases of you've the we've on power specifically?

talked the the guidance you. You should is we get to the hedges. about obviously, about those And need longer good term to Thank replaced? see. when think the hedges But medium of how to sort

Charles Meyers

Sure. Thanks, a you Simon. we Keith add great wish. as I'll -- Europe. and can It's quarter start, in had on

accelerating there again, deals. sales this back midsized And seeing the momentum reshape to a mix kudos sort sales X%. to pulled asked together quarter we certainly few a we've this prior shifted leader, forecast Johan and that sort growth ago business to as our year there of there. levels, think big I the Arts, or of about delivered we've we've to spot at really him on -- tremendous that just And into great talked quarter. small back sweet the to quarters there. our continue We're So with that team revenue of

and pipeline -- So good. looks

looking to good, how in that look a of macro transformation of degree we're I broader what play technology think the and relevance buyers in say would they're continues terms that. I terms at prioritization in us of and and that digital kind of So environment we seeing IT and role the of high the from

I overall, part world. to good of the about that very So continue feel

we're So in can pretty we entirely -- much perspective, where a from of Europe. power hedged we be previously, kind as said

impacts substantial so not And we seen have there.

of through to at in that's hedges I as program, going hedge XXXX and we'll And we to lot so But positions for runway work. We to success -- XXXX at gives lot continuing build when those in pass a good of of figuring be, what the need our look and -- position us hedging but our hedge -- our And are rates the have to runway and of a a elevated seeing levels. think, and are we I to out that. beyond. terms we visibility as adjust into ongoing think, our

Simon Flannery

Thanks lot. a

Operator

with next is from Guarino And our Green question David Street.

ahead. go may You

David Guarino

a Hey the thanks. have declining. question I on cash profit same-store gross

Was the this Singapore is since something seen else data. to disclosing a was lot power negative of that? time first the that think I driving cost due in guys or we've turn you started that it

Charles Meyers

really -- impacted the growth really gain because, power than stabilized It's I the I is mean, is and on it's -- revenue oversized And see influence associated the did same-store some Americas, contribution the X% impacted think very the with growth with more to Yes, as Singapore, actually and pleased by I the the contribution there an same-store, mix and particular. the we that. which assets some by strength the margin in there cash performance as from X% less said, on But PIs. has well APAC new is addition probably we the the half into of from that of to up that in strong, the gross were overall, side to assets.

further Keith, So add anything to there?

Keith Taylor

it's margin gross the and on from business power the of our Pac Asia noted in we've cost embedded a as the impact in Just performance but coming only is basis. a knock-on the overall Singapore guidance on impact having market, not the

out again, what of So nothing we expected.

the to, is on a alluded recurring X% matter revenue the growing of Charles stabilized that at fact basis. are assets As

the effectively business, QX the the in of impact now the with results, absorbed and momentum we've great have Singapore business. We

that's business a And there. basis go-forward so the on

David Guarino

shift phases building your All right. other That's want Atlanta. helpful. any two from guys And the in new to then one you Are you seeing centers at another away ATX looks tenants quick data Atlanta who facility market? one. colocation like are It relocate in from

Charles Meyers

market Yeah. good. Atlanta the I mean been has

terms making of we've ATX in transition continue demand network the been of into Peachtree. our We density attracting really to and motivating and there, some see own the facility on

so and new just as as that you well -- customers. competitive certainly wins in it's see net And again, market

new of a continuing been market. that as in feel about it's overall. We're terms capacity, and to we market So good there you good noted, invest

David Guarino

color. Thanks the Great. for

Operator

And Atkin from next Capital Markets. question RBC Jon our with is

You go may ahead.

Jon Atkin

was interested you. I Thank on energy topic. the

presumably might currently then down you You're prices applications any and normalize. the that elevated just more have of in I what terms rates, see actions. pricing sorts customers? exposure on the other of color from hedging end, were And Do just any at wondered to if around pushback road energy

You is pricing FastConnect what's and anything how pricing power evolving? about just but renewal color else related Thanks. mentioned PIs, any about discussions, around

Charles Meyers

because environment multiple have mean, we I Yeah. years. the hedged rate market as where essentially these Sure. We're rising feathered hedged below we're in rate. the hedges now is prevailing over

-- that rising so because customer what is able provides those be a And actually to them market more against the rates, gradually. rate protection some in roll to in environment, and we'll

our expectation sort mitigate see that as rise, what so hedges consumption. And some and personal a some you the hedged a Again, that market that's increasing And see are broader even the you've a that There's going in they're to to they we have we of that chasing rate benefit net and generally provides at there. expectation can power is rates, again, their own up. roll-off as degree. see. effect an customer will But it

rate hedging, the our and environments hedging way of time. think So the and worked I rising in it's for success us that's over the

so we that. about good And feel generally

and we're said, build I cycle beyond. hedges for planning as that we our As well-ahead of XXXX

-- yeah, to continue we actions. to on have strong positive further pricing pricing then -- had And actually, add anything there, Keith? So pricing,

the costs -- increased that in continuing meaningfully. I of power in effects the that and and beyond of artifact And increasing think like evaluate to its we're example. really a that's to that pricing to list a implication We value an partially continue into work of an you slowly way terms strong proposition business on tends overtime see of business other unit some that. have see But value we And the just to as response for basis. labor,

have beyond as And increasing so been we well. pricing power net

Keith Taylor

specifically, pricing. we net when out might were note actions take again, even substantial the talk just think, quarter Jon, you it it's this add, also if the increased important past didn't I pricing -- to power I but pricing about

still could rate with on you normalized rate, increases at our we And constant power, of take greater have growth currency associated of pricing full the a out and look X% basis. you and so implication our the than of when a overall growth --

some later growth as line. on our have the we're What our good I'd I perspective. overall, pricing that of from is the say with we reality position addition inflation But what really open hold. in as Charles said, that the leaves list fundamental price think that does it's in the So it just us continues top to yeah, is to So take driving a to, impact. there business a And pricing adjustments? do do the happens discussion

in can blended associated And increase fundamental see discount in pricing of our per You our MR increases, with basis. when current impact nice a of power cap. sort see price on even capita pricing our out the overall you per you still a

Jon Atkin

some obviously elevated, of back quick demand? see a but is normalize two here in a and there you're a or on it quarter basis go do was can strong and levels, terms where rates? demand feel you that well of retail then strong sustainable dynamic does catch-up below and guide. might indefinitely? had Just as enterprise a sustainable some kind seeing at ones you and a elevated remain that seems And demand last And result these demand sort from catch-up, to of average might follow-up, churn, normal Thanks. Or buying it colo

Charles Meyers

with Yeah. the piece. start I'll demand

sovereignty of they transformation to public become part digital a digital modern like its as nature And the application and factors about people people see market are change I age a infrastructure strategy, think cloud of in compete application an of the think how to the central continued and to increasing that. looking networking that cloud, continue adopt we becomes and overall they their prominent part as prioritize hybrid as infrastructure has such just as addressable data a continue to in so and of hybrid modernization complexity much sort world. performance of

lend to really proposition. are to discussions. our value things increasingly us those themselves of those seeing people And think well All I relevant

really in that's seeing, strong. you're And look as Keith in which our said several quarters record in so continues of -- pipeline his levels. resulted is row, to script, a what And and bookings strong

of of coverage. a matter emptying the this So isn't sort

the digital in from our respond to portfolio services see really, growing pipeline record a elements continue of really demand We to continue strongly We pipeline. of business levels a and see perspective. all see

feel us the that over caution And a of But churn to or trend -- think, begin not platform really at said, move trend right relative bet some will is, fading paying not seeing it to quarter there. business look our business. time on always do the to And trajectory sustained I people to eight-quarter one more I trend off XX-quarter that It wouldn't start way So in in reveal are we're does think sustainable best the sort the downward around churn, Again, sustainable. And on to reduce is every like any churn. on strategy is little to always this downward we the where we've a think instead a that. always I fact, being is. quarter-to-quarter. think of I in to with. I if can any we catch-up, churn, demand but bit want you level into terms churn put our then, of to you way But have of for demonstrated

Jon Atkin

you. Thank

Charles Meyers

Thanks, Jon.

Operator

Aryeh Klein Our BMO next question is Capital with from Markets.

ahead. may go You

Aryeh Klein

the have since year. bit second view The Maybe, has the half on second for just And backdrop shifted the obviously of little Ukraine, up moderate the a provided, the year? the the and original of you. is guidance Thank the that Singapore power on expecting was with pace you're the to of Russia shifted improvement half following for so questions. expectation impact with in the

Charles Meyers

overall, look, Singapore. would very issue Yes, places. the any say, a in on the is other I big much power margin really little It's bit.

forward, going more that's I think think, but visibility to XXXX to. of respond an see to think something commented as I do I and I as and and as in that, think roll we off have planning -- power beyond hedges of as about of we earlier, -- we to might more the ability we have plenty

we is this As it And overwhelming said relates the last from a ton Singapore what quarter. to by far change of not there's issue. year,

the forecasted, in hedged XX% was And of a to come the or but our expected. higher of the little then now little over QX roughly of we back half a think, actually might load year they're kind we originally Singapore. locked in going than I had be of have better rate-wise in kind out than We same place.

We'll update I better from to changes. if But And that. of that visibility we slightly you, previously. we end So continue and big we than and we said that this variability what basis, ton have think in really on a a outcome probably here. had on don't change, of not But year full a -- quarter back less what had the original this had quarter in forecast. a better more roughly

Aryeh Klein

And bookings, then quarters you've several had accelerated. in growth strong the Got it. really in a Americas, and the row, rate

of to stepped XX% add development look we significantly rates ahead, build? Americas from is cabinets before the level or utilization the occupancy up. about Its the As think What kind we have of to obviously should pipeline. to I from think more are outside over in the How here? you get off

Charles Meyers

question. Good question. good a Yes,

in the markets overall bigger think utilization a a lower fair rate Americas, we there in We're headroom much of amount lot of have right? business. I a on at a that

of plenty capacity sell. there's So to

sales sure that. hearing teams are me I'm So my say

leader another performed the business humming the and is Shaw, So And Americas Americas. playing they're to strong exceptionally well. Arquelle shout-out our sales go And think delivering execution. has really business around. I to in senior And that sales

up right. there. broadly demand markets of the the the meet key the you're US going US, but is going in in topping are and we've the A in so, lot to investment And -- outside also to Americas

new the online, a to both executive. customer-centric and feel it. Tara deliver Americas got And and we So good And new of she's President sell to a about coming about capacity very excited tremendously we've Risser, the our that. ability

is we So trajectory the capacity we drive great see of into Again, pinch future. in the plenty will continue feel to we there feel that there And out Americas. of utilization invest start points -- I grow I where that opportunity up. about in are to to and the markets the think sort there

aggressively. really to feel I ability continue put sell online about our And so capacity overall, to and good it

Aryeh Klein

the Thanks color. for

Operator

Our next from is with question Rollins Citi. Michael

may go You ahead.

Michael Rollins

Thanks and good afternoon.

needs comments, their And through looking be cloud of you thinking of have, talked Just to you some they hybrid you hybrid that may beyond that go And have deployments course, the cloud, the and hybrid part the Charles customers, are as retail increasingly ways serve on business. and the through xScale. hyperscale call of thinking you have about more Equinix the can architecture? to as earlier about some enterprise retain enterprise retail-centric at

Charles Meyers

xScale. requirement continue those think not a I LFP mean of I a enterprise context you or broader you're needs how sort I we, that of sort and would Yes. are tell and there of might sort colo platform whether be about the digital we that again, commodity a if is there again, intermediate is able thinking major larger to getting then -- where a us. of offer between we to and that the requirement, will the sort of about them footprint, for isn't their enterprise need. do we transformation, talk to more focus customer might But how meet that in

in about, up focus MRR delivers mix we've talked delivers superior the the et seeing cab. revenue really cab, to I as of sweet on our spot retooling that's better you're fact, been that per business, really show lower Europe And business, MRR superior the retail interconnection-edge, per It like retention. what In in markets churn, ecosystem-centric cetera.

we're the business. would drive to to that got I And we've stick you what in tell the seeing. So to performance continues strategy the

partner going you and private through. needs. cloud, most put meet and kind tell I occasion, our enterprises to a on lot going 'Hey, need you of to customers location we we'll requirements, of with -- that will use the saying, to saw see of and public and in think of do large we're more really that, -- performance inter-cloud sort we're for thinking But to an -- part, You a to are I enterprise-type cloud of drive place And a mix statutory et cetera. in data times,

helps helps delivering course, move actually capacity I as value finding need and big that them. have. on services their a It rapidly very the there. And -- scale, them rethinking they world. for really it really a portfolio. life of think way real is about it about demand see is Fabric, with that And retooling as have customer them technology that they then, because momentum I is around proposition agile, Metal the that well be we -- more the And more the mandates good we networking mitigate you they're Network us in management. Edge side thinking more cloud-centric and are digital feel the then a them opportunity Really, And enterprise portfolio a Metal so cycle

to and And to so up we're continued the some feel I portfolio, digital well think that's the are really going to good I to BU going going there, continue about stood make position services investments for enterprise -- we us and momentum. and

margin of don't So lower really of kind see big large on we'd be a long think about I answer but to your question, sort We business. selective that. very profile footprint, priority

Michael Rollins

Thanks.

Operator

Our next question is Stifel. from Rasmussen Erik with

ahead. You may go

Erik Rasmussen

thanks for taking Yes, questions. the

considering it of elevated environment, are you're say So to as some expecting sort demand you this think strength you would hyperscalers. hurdles relates xScale seeing really demand? the about what your this we're from of good meeting as business, this And quarter,

Charles Meyers

platform. on delivers strategic critical We're focused not We're there. Well, well. and We've number of plan we global value appropriate macro we out hyperscale focused every think sort to plays think overall an hyperscalers overall the cloud aggressive that really think small the bit got I the mean executing it's relatively chase -- are of to that's on an a how trying I to are but business sort that them. out of is of

able really I capacity. to deliver continue just to it's think being

sure to about aggressive And make more the have so work key banking. capacity and land been to we continuing that necessary. equipment the we've We're

our or time. of and business delivered our of to ensure side both team our the get equipment xScale the that has -- in So projects active are forward to of supply we on ensure chain inventory making been retail to buying availability both commitments terms

going to feel for that. us. key that's about now, thing think And right I very we the So good be

talked million place pinch last try pre-commitment the quarter, any that -- having about inventory since I chain. fact, to the off points quarters head it anticipate exist supply against to roughly $XXX ago and and of of we've mitigate doubled supply we to guess of couple talked nearly In that sort to chain, in was we about in over continue a

delivery on average, we delayed think the I good there, dates doing we're in projects. area pudding need is that's here So the two but job continue are guess we're on. there, in to our focus and few that week a to that a but proof think all, I on I the or no on more outliers And a average, than

And so being on-time deployments. continuing deliver to

Erik Rasmussen

And Great. That's on then helpful. maybe M&A. just

disciplined been pretty your But You've multiples up. obviously in historically. have approach the in moved current environment,

where deal? comfort like? on to not what the your particular a out if to type look of were you that stretch opportunity there come are wondering would lose maybe And deal scenarios right up, level would Just

Charles Meyers

going every in us tool the appropriately available. matter. platform deal, different. on we're the Yes. bit our there little every scale I stretched of in extend Key going to are have markets buy over think for not assets, are of and of our are in deals Metronode and our to growth. through out the mind continue down sort win and success we where we opportunities key continue into and I -- that Look, that to turned out ability that our opportunities toolbox. interconnection maybe is pop also believe platform where in a paid But priorities are scale past to both those there to to terms we all think examples mean M&A we remain is great multiple And would We're of a that but good that seeing extend same. geographically of we're types to time And that kind I I say couple a for what think disciplined. I deal about to be markets us. that there our we've And belief multiple really our examples Infomart mean based we a probably be of

sheet it pull So I and got the balance we've think. off, -- to

So in to we cases be won't. where it think we'll stretch, And we we'll be sense makes there, we aggressive. where don't, out And we will.

Erik Rasmussen

you. Thank Great.

Operator

Brendan next is with from Lynch Our Barclays. question

You go ahead. may

Brendan Lynch

my for start, when on Great. long-term taking about Good guidance your by for question. a we're guidance XXXX. one issued from afternoon. you EBITDA year XX% To margin Thanks adjusted long-term your

are would, well-documented Your And of get get your update, the target. you point within elements contraction that through year reasons want on XXX an implying guidance have the on the are some side can't of cost basis if control help discussed that what been pricing to could there that a long-term some you directly power? just ability the this already. if that there is you achieve I for

Charles Meyers

bit not We expected question, There's in power, see than better EBITDA Great to you that originally with particularly an business. about and to QX. with worse there. shift And Brendan. on might a a is being think had those on that as obviously, start focused trajectory of already target Back that continue the are very central talked many of I'll we the XX% dynamic, major -- of number were but just about. a One, than half about kind little year forecast, Yes. power lot what that. of as said, which situation simply the little a we of the moving a talked parts -- saying be we overall Singapore appropriate we've long-term for margin. some margin

even As we us, line through don't and with see they and that really market. can't margins putting expect predict fully. rates, the moderate normalize broader by either we'd through enter moderating in if additional year, we PIs getting to APAC next Or essentially,

margin the in from year so of in programs to And half targeted in we'll back operating And efficiency continued the I of business. drive normalization expect continue our think the we and see the leverage there. business several

strengths to need the some operating to think, leverage. so we in have may drive we're we that ahead, continue do seeing. given also make to think But And available quarter other levers I tremendous booking we investments

to anybody. think that So would surprising be don't I

AFFO you beyond target; on the we'll as takeaways two, we achievable that think more combination of becomes I clear. driving at are that: that we the our confident we appropriate against that day, to through leverage. one, the lighthouse per remain top growth operating Day targets margin and share really an Analyst But guidance detailed line, AFFO bottom share metric really line can more XXXX So continue per as the and And XX% give see the really profile of critical that and that's growth is some deliver end growth.

Brendan Lynch

in might churn anything uptick the Great. wonder an with that the some past, mismatch Thanks. of increase? helpful. if customer profile of where trajectory. had the we product that follow-up That's saw churn And the specifically there's made you've have kind assets. with or I just like Verizon acquisitions maybe of a one on any your churn, acquisitions that cause recent to In

Charles Meyers

that we Really Yeah. don't good Generally, see question. happening.

a little a aligned, maybe number more, that, was reshape I different I some smaller think customer of a scale Verizon profile Bell their a bit mix than bit, think little that more I in the the in much – kind line overall but maybe – to with of was continue customer are of a ones, scope. or other bit and of of more in think, the a And overall there. then smaller dynamic bit much little a we'll

inevitably up. but that anything So that some the on tick that of I there's in see wouldn't M&A, see meaningfully would you certainly horizon

Brendan Lynch

color. the for Thanks Great. Okay.

Operator

question with Our next Sami Badri Suisse. from Credit is

ahead. You may go

Sami Badri

a I Hi. and Thank you. had one follow-up. question

a million I $XX but wanted Which just strength the to better there? just business. first kind the second footnote, was is XQ per and was the Americas about quarter-on-quarter just wanted Americas you that idea know there specifically of it on get and then million? outlook talked and the visibility. how question, are regions think on some on of a were increased I question hit down adjustments I providing For for a And XXXX. going also MRR the cab bit there what's I $XX regarding And little to

Charles Meyers

Sure.

bit and nice view overall and Americas. in a you Let holistic recap, a cap on Keith of And – basis. saw in global I'll comment per commented this, then just yeah, uptick we more a a on little me MRR give on

and that. overall of since always Power I a saw parts business. people Singapore a encouraged organic to is – definitely on it's uptick yet not in average which saw and organic But by couple really strength look volatile in driven, a of in in in of several large one-time on We've underlying that can part Americas, more by there ramped. an We we significant of really with kind driven moving some Europe in then Americas we that those the factors. a a In to half settlement at be install, factors. depending that more contributing metric activity was thing. driven And are PI saw basis, than few the – think meaningful APAC is is some the PI global We multi-quarter the there. strength

associated impact had for with but not much a bit – of get so a action as a finally, But think little a overall, which the was but large we the with had little cabs, did bit nothing NASDAQ, of renewal then us, get I And of concern. that. you we downward And huge price revenue. win very on

we I continue to levels. above manage think to it exceptionally in think, cab the I at able is we'd or healthy. continue the Americas those be feel to can like MRR And per still

Keith Taylor

I'd So add, Charles just just there. on what said to

thing a that, go-forward to the so little you've as denominated our basis. cab Canadian of you've that currencies, a a come and year, US Bell result, dilutive fact perform And than I and continues mix into other number. thing lower last we with MRR or the average coupled is recognize, would again, impact The metrics probably that, business end got per you a dollar this the put a bit of Canada's is assets The they last at seen rate. as the last on say a of year the well,

when not impact see on all neutralizing lower influencing And Japan the But page currencies, down currencies US on regional it strength do dollar. the is the report XX%. that, impact metric we're of so the about page. you given It's we the we of got just you've non-financial of the breakout

have that hit other the a of bit an As US example, little we've taken relative year-to-date, dollar. to markets got a

fundamentally, worry are not number things So that there this are going is But anything a of on. to about.

In fact, we business strength have. we're profile pricing the seeing greater the that in given

particular focus a we've that lot metric. on not so And put of

Charles Meyers

breakout the strength -- MRR the on to want regional of you do comment system? the Keith, regional

Keith Taylor

Yeah. million said, regards we And as MainOne. incremental the is from coming to then regional, the as of profitability, $XX $XX EBITDA, million

coming of strength year Again, is million basis. the currency $X got rest gives under hedge very speed. the sense current you business from of a course that positions of You've the and a minimis on currencies. The for impact of relatively the de our financial

that So feels good.

seeing you're strong broad-based across performance business. So, relating to the the organic business,

our in that again, run And we profitability region. you and But And our yeah, about across a Singapore the the feel fluctuation spoken the Asia basis, that corporate regions One a Americas business in we we're line, to very business, comments would in Charles Americas numbers overall, decisions embed and the in the that's see in rate. in go-forward add in there specific And top the of. the we corporate strength accruals, three Charles level strength of US fundamental good and seeing make of that I the profitability of that think is the all that's so all on made regions And thing only top appreciate, three -- strong. is matter as is It's or you we driving the has again, for in is, the that now. part the business. in the line the to make world. because Pacific,

it's the and that seeing you're in momentum so right across growth the And board. the and business,

Sami Badri

it. very you Got much. Thank

Operator

Our question with next Michael is from Elias and Cowen Company.

You may go ahead.

Michael Elias

side power you've Thanks question. on it just a that the taking the When you quick mentioned wondering, second Great. question. first my as pass you higher through customers, structuring you that higher. for raised contract? are increase that power and meaningfully increases. is your the a the permanent cost then, embedded is my cost power list One do or And question costs question in That's earlier surcharge, the temporary price in prices to

would of you on implications of renewal what see the you we share over cab on Thank think kind about you. forward schedule, as Just that can to color side? the MRR to per medium cab going the any your and expect long-term per MRR

Charles Meyers

think a think to Sure. all that the accordingly. Yeah. lower The we I back Because then rates, think power it reversion depends would adjust saw I answer. if PIs, we I is meaningfully

structural of sort do of I price so, profiles volatility pricing power-related associated separate more more levels and And kind with power that within business. of think out margin we from the the adjustments

And saw I terms to think and adjustments uptick of I have in would through market -- make going we big there. the but just to pass do navigate think that a meaningful then those reversion, saw a think we're adjustments I so,

And have our I continue so capital. market-by-market of I cab, as per And to terms on us -- pricing, appropriate but think much its per allow to strength continued MRR mean, impact value the and a basis. in very depend look then that's think of our to yes, increase on our something we factors to I pricing for customers, have just and due think to that I value inflationary think on we'll as continue at various be a to going margins on drive the I due proposition add cab and more and going as to to MRR positive our preserve ability impact well to returns it's

pricing per the going can So of board But I that preserve in appropriate we business monitor therefore the across how think of that to inflationary with and terms demonstrated have continue cab just feel we're are. can make and now, right the level the to in adjustments like pace forces we've that the to we MRR trajectory.

Michael Elias

Perfect. Thank you.

Operator

comes Matt question Deutsche last with our And from Bank. Niknam

You ahead. may go

Matt Niknam

whether some sheet, and of quick looks I the on question. the I taking agency one Entel if financing sheet of then the wondering, of about ratings to for sitting or Thanks balance have it the deal just funded Entel, But a bond, Hey. right billion I Keith, really of you've straight think, billion that. forma the It upon after for like get scale worth you've Entel follow-up. the pro late. stickiness just a the we're on given leverage upgrades is when thinking you the you're for contribution I incremental fully Thanks. what's referenced any we the acquisition. company sense will balance now, I'm just capacity on thinking that's funding And of optimal the understand leverage way, right sort it $X to some then if for close plus think the the use. latest for the got trying as around think and $X additional green about business cash expanding I'm wondering yet about require closes? just the platform.

Keith Taylor

Great questions.

start Let overall the of with just first the me performance business.

beginning the and year one as know, did, that we X.X% this end last put place in the base the yield just So you we when at we treasury of locks year. of of

to we're trade so And down it a XX-year able to term X.XX%.

that and So MainOne. transaction. acquisition funded That Entel with the exceedingly of of effectively fully performance pleased the

MainOne in As million there's and we expense our when right through interest it million the of is running to $X allocated the now. -- the noted two to results, books was year we $XX relative the other acquisitions, increased this portion

there. the absorbed frame. quarter, guide, to report of May-June addition will the the yet benefit acquisition. the result, in It's in second as That sometime And It's Now the we've our time but sitting Entel to cost. a happen you're the of we've that. net going get

saying cost you've already income funded the side enjoy side will, So will is of the and of equation the if the yet. you effectively, the, what you're equation

So that's that.

the capital management, now sort As our business. as levered right overall have of flexibility. to a X.Xx do we it We're relates

use to transactions because seems our X-plus to leverage the the source that think the what for of of still rates. that. agencies, we late, rating as rising that's at us $X.X We debt. billion rates in still the which before. sheet it's thankful of cheaper As to given the blend despite can we got time. good of period the balance with off to for debt draw largely equity, success, be a always we We structured hence, a over I interest And do. then with think We're down we is we've look appropriate. We've and flexibility in in differential debt strong some Charles and, place Europe transact forward, we're April. other and took And borrowing have table three how will We've given very capital got in what why the allows we debt flexibility feel referred range with great is -- on ourselves. a looking a us obviously strength that's more

just And say forward business. we looking fund forward XXXX, we the is looking are we so, thing the other what and needs into only the because is XXXX I'd also are of what capital today,

always the that we we've like as as it's maintaining effective at when said flexibility in market appropriate we're we've very, long-term into the balance my great to We that look times in got very been volatility. used raise given forward So on the prepared flexibility and And that to periods capital. I strong basis. a to chosen. And that's think sheet, us strike, of we remarks,

We're And continue performing on a great an attached to going see response, opportunity that is business without it's excited absorbing fund we to them. business. the exceedingly The the to basis. go-forward that income that stop all the I'll today about well, we is And growth I'm in I'd give the to and flexibility. there. us have a costs say opportunity long-winded So

Q –

all color. great. appreciate That’s really that I Thanks.

Chip Newcom

call. This joining QX concludes you Thank our for us.

Operator

This Thank for concludes you today's conference. participating.

You may disconnect time. at this

Equinix (EQIX) 27 Apr 222022 Q1 Earnings call transcript