EQIX - Earnings call transcript Q2 2024

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Operator

Good afternoon, and welcome to the Equinix Second Quarter Earnings Conference Call. [Operator Instructions] Also, today's conference is being recorded. [Operator Instructions] I would now like to turn the call over to Chip Newcom, Senior Vice -- Senior Director of Investor Relations. Thank you.

You may begin.

Chip Newcom

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

risks our Before recent everyone we risks that started, from I those and will vary XXXX, identified results our to remind would SEC, the filings like involve today's nature some in making statements are we uncertainties. significantly affected recent Form filed release today XX, press Actual may get be forward-looking most most and of and February the XX-K be at may we've and XX-Q. by and with including the in those in Form our identified statements

Equinix on does forward-looking and not comment on made update this call. or assumes no statements intend obligation to

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

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

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

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

Adaire Fox-Martin

for XX,XXX past President welcome to earnings to my of be to today the facilitation as the second call. hosting road to in and Good I Thank I quarter dedicated CEO gratitude call world. proud would lead to warm team X look Equinix over of around optimistic immensely and our to earnings and first Executive more the welcome continued and my you, the months. his smooth like our the Chip. employees a partnership transition with than Equinix. . afternoon, about Chairman, I'm I'm honored forward the entire express I'm and as the role and ahead. Charles excited Charles team of

witnessed of As that a Board I've many member qualities success. the have years, driven unique Equinix' for X durable the past

of years Our now business XX across investment continents. X centers has built XX metros spanning a data XXX in

customer digital is Our It outcomes ecosystems upon a has in as our build CEO. value and focus phenomenal unrivaled industry. created to foundation on interconnected

fully important we the immense a lie opportunities of to for remains cloud time similar some As our in exceptionally marks for decade of growth the capitalize of uniquely positioned to the are a most AI, point customers that critical of ahead. industry. transformation our world, a the will develop. stewards and ago AI pivotal to technologies infrastructure digital priority on the emergence and the take Business

the from particularly demand, are In training term, providers. driving AI near service workloads significant

across This build will portfolio, particularly continues portfolio of demand. xScale Pacific. North our direct our Asia program augmenting complement be this We momentum, Europe robust to xScale to a meaningfully Our extending and beneficiary intend this and in on America.

joint Atlanta. coming xScale venture recently campus and [ in in first months. that We next are We multi-hundred megawatt ] to land excited power and to announcing the details for our this forward look share our of closed project we on xScale

network the of operational AI the spectrum, inference end knows our At workloads.

distribution. and right be Equinix to connectivity customers network the nodes seek location As for as data the preferred cloud, continues solutions ingestion with for

scale which inference also inference over take adjacency, neutrality, require. and Equinix density and the workloads reach beginning will We years. coming performance, deployment will cloud and network deliver workloads We Platform The to accelerate global the shape. of believe see of these implementation can demand the

cloud. already our Alembic we deployment in We enterprise secure run analytics for speed, infrastructure algorithms seeing AI Alembic access ] In in data WWT [ service to and to privacy, enterprise. inference provider serve massive Technologies, with significant an sets partnered Technologies data Equinix ] are and cost, for deployed at interest their QX, predictable proprietary sources platform AI-powered to marketing on [ the capabilities.

XX key AI Paris their a InstaDeep, cluster optimize Nvidia objectives. asset access leading growth network solutions deployed our to their support decision-making at ecosystems, provider [ ] AI of and

Our market will multifaceted deliver the term value medium sustainable believe and created to approach term. it AI growth short the is over we opportunity long in the to and by

provides and and scalable cloud technology our center offering xScale the Our required large-scale for infrastructure massive for expertise operations data customers.

them For and and to scale their technologies our efficiently turnkey operations. enabling customers, AI data introduce they effectively offer business enterprise and mid-market as solutions, into centers we AI-ready

ensuring For the require those it for high-performance edge our generation Edge is who where applications. performance the handle at optimal generated the next solutions inferencing, data of business

And do tenure, simplify embarked work strategy underpin our need our This represent still on my areas accelerate of numerous focus programs and Over execution meeting will opportunity focus of noted complete, [ for ] whilst will our listening have of us months, a the is across the that to more allow we have X I on it to early company quality the outcomes. the our our opportunity in some partners work the and is the to locations, excellence customers, tour we deliver to aspects drive there of that in business. highest a I execution, and with pace of opportunity number still past forward, across I going may less, whilst that employees. will

allows The AFFO ultimately higher us in market-leading and discipline energize foundation efforts valued capital as growth of to demonstrated long-term this financial customers simpler, I returns metric. delight execution. for our opportunity to share, This and has core to partners. focused consistently noted a on our deliver our on go-to-market executing mantra create Building amplify our and company. serves and discipline fuel per should more and the opportunities on underlying the Equinix

With turn I'll in record quarter. We performance. bookings. mind, had second to of great delivered QX our gross this Equinix a all

Our pricing strong. remains

We continue invest industry-leading broadly further to our reach across to the scale our and offerings of enhance platform.

Our share adjusted of per expectations. and delivery ahead of AFFO to EBITDA continues run

approximately the land expected quarter capacity share the Total Slide of XX% last growth was close X, the This in rates revenues can into first announced with than through fourth normalized adding the more X% consecutive XXXX, These we $X.X future Philippines quarter in addition $XXX are up top constant interest in billion, X X% our Adjusted same in July, Interconnection strong with we through. acquisition million AFFO on currency As is center This transaction QX a flow all to up Information year-over-year, opening data represents to EBITDA per year. of data from strong over customers our Johor Management. development. stepped In centers at X,XXX you for Manila In expansion quarter the and XXth May, see growth. revenue our of our footprint. on line to basis. across of valued Malaysian planned new up year-over-year. cabinets announced from were of

FirstDigital, our strategically include our combination of leadership and Singapore hub position the on Philippines, expanding Indonesia Equinix global Customers an capitalize Malaysia, the and telecommunications entries customers digital to our and advantage in our footprint position Southeast Asia help the opportunity into strong region. of expanding provider. in The our fast-growing taking Internet

multi-cloud a significantly Cloud Fabric lowering by Router and with is all FirstDigital total regions. of building X connect Cisco network AWS to ownership to cost across WebEx Equinix

Gross interconnections additions level XXX,XXX were pricing perform in at the favorably. with years continues Our deployed. to continues global interconnection interconnection now franchise X to trend and over total highest

our X,XXX net additions activity, to expect strong and verticals. services grooming adds However, Fabric port from underpinned time. do gigabit was over products. We in by lessen pull-through Equinix other were XXX this interconnection and to digital networking content grooming due growth primarily

from wins, Santiago recent supported interconnection Equinix Paulo. the like an Nuam a and low ecosystem formed existing This Network Exchange. Edge rapid activity from by expansion reach, new with of now experienced integration Stock Sao the Lima customers. and growth participants extended York and continued market benefit markets New include Colombia and connectivity after Exchanges. The company secure can key in latency Capital Nuam's is

program delivered new of company quarter, over channel XX% logos. for Our solid XX% another and accounting new of bookings

Dell, wide range continue We Tech as and and our solution an segments a Pac from business, MSP and Notable wins wins [ of to like Asia see a included Orange across Data industry partner, distribution partner use AT&T, partners with cases. AI via growth ]. Avant, service HPE

high-level learning based co-location partners of combination are an Malaysia. delivering LLM a our Equinix Leveraging Fabric, a for in and institution

from wanted we Now in position an I capital and a Keith, perspective. believe we over access before strength from call that to the I financially balance to recognize both are sheet turn a to of

Our which investment return strategy. our on flexibility invested us capital, a of strategy go-forward gives all strong delivers to execute the

over turn I'll that, from to cover to it Keith With results quarter. the the

Keith Taylor

Adaire. Thanks, Great.

first look to Equinix. And or might to you next are on time the listening who it's call I very afternoon that let of of be phase later. at for of say, exciting Now going the us also a alongside all know I me to and the those forward all journey Equinix good today be

execute had closing against we than bookings, start, plans. customers. quarter as a second . than to our to X,XXX We had deals team more gross continued the X,XXX So with more record great

actions, quarter net trend net of continued We our positive the bookings. ended with we solid and pricing

the remains expectations. ahead delivering pipeline deep, Our the second of year, forward-looking we of expect we're in drive will half momentum which and our profitability

and full share As too, our per a lighthouse year therefore, raising our we're metric. again guidance, AFFO AFFO EBITDA and adjusted result,

I'm plan offering, highlighted, bookings into next to evidenced strong excited lean this Also, We for phase offering seen AI program -- as the our initiatives. we've both our as momentum. cloud demand and Adaire from this xScale this by about as of

with on about xScale we've to through also billion in this a per JV believe invested equity sheet structure continue which drives date, partners value share opportunity, durable program. model significant is to basis. $X.X the We right our this the pursue off-balance the JVs, To

our total $XXX and last to ramped. fully nearly our our earnings call, once XXX XX megawatts megawatts, in leasing of million Silicon leased xScale representing brings than Paris and revenue of annualized Since This more XX are global these billion assets total capacity incremental value assets. contract of $X XX we Valley an

opportunities forward to we our future term. funnel of forward, look strong in near the have partnerships we on JV you additional Looking a xScale updating and

attach MR metrics, driven environment, per currency solid by increasing pricing increasing year-over-year to $X,XXX nonfinancial favorable and For cabinet constant interconnection on and basis X% a prior normalized rising, rates per is cabinet, densities.

markets, increasing our expected, last as saw metric in pressure discussed continued billing density call, constraints we key timing power As due cabinets our earnings capacity on net on and certain to churn. of unadjusted

unexpectedly on the cabinet quarter Related average while their per cabinet the liquidation resulting to announced the per XXX June, sold density immediate new churning churn cabinets cabinets prior increased kilowatts in to cabinet. an net quarters. an density cabinet were of at in booked example. StackPath as kilowatts QX at compared X end non-xScale In QX, X X.X an were meaningfully megawatts of density, average

rising strong forward, we sold our bookings as year. the billable yet the cabinets backlog of not given of second but As and half improve in gross we expect cabinets to the look a installed, result,

ways and XX helps become example in initiative new markets to center a of our This including we Paris advance This Paris serve in a the of we our programs portion one sustainability Europe agenda, First Olympics. in integrate includes the that communities IBX, bold implementing is the On will into sustainability continuing heat across aquatic commonplace the at operate. new the innovative export we're believe the we future. the which Americas, Future which front, to heat

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

upper impact constant As Slide the a billion, range revenues. including of charge Global currency recurring were one-off up X, basis, QX X% of on revenues year same the and $X.XX depicted in a quarter last half over on against the guidance our

weaker to in included our $X due and the sequentially Brazilian FX to As leasing Japanese prior real quarter. xScale revenue QX due rates hedges, expected, nonrecurring our guidance the of up the quarter. headwind when revenues, yen net activity the strong stepped to in compared million a

time. year XX% up the last to was $X end our included $X billion profits prior when of a top billion our our of over net range strong Global first million of spend. guidance hedges, FX expectations, same QX-adjusted quarterly at and Relative of ] XX% and was or EBITDA to of $X our [ operating the headwind due costs. threshold guidance quarter FX compared EBITDA million the QX EBITDA, timing integration rates adjusted the revenues, and to above for very $X.XXX adjusted

QX and last expectations churn headwind land rates. up quarter MRR QX of million, AFFO payment strong our Global to the the prior a to build. better QX X.X%. same AFFO XX% included FX due upcoming the timing our related than to $XXX was Global year, compared over lease our Singapore when operating performance guidance $X million X was

the X% churn to remain balance expect of the MRR the we year, guidance For X.X% to quarterly in range.

and respectively. to our X. fastest-growing activity, firm the XX%, York, results, Americas strength medium and regional growing large X%, APAC deals. great in regions highlights, our The a basis, record D.C. was Americas which had Washington, X higher On Turning and particular markets, saw Slides quarter normalized our of including EMEA on region by gross Dallas, Tier footprint through services a covered at region the bookings year-over-year We financial followed New are mix pricing a and at led X strong X% by with

EMEA Asia Dhabi, including in Hong customer The solid an region, with and Tokyo Istanbul team activity, finally, in healthy record intra-region well Pacific largest our Asian markets growth Our Abu metros. did had new including and Kong, strong global into with business interest as emerging and pricing. strong momentum the job as our Warsaw. in Singapore strong in such markets delivered as a quarter exports the bookings our selling with And platform excellent activity a and strong quarter region

driven deploying AI And and capital customers our structure, activity looking Malaysia. please in intra-region X. by Slide refer workloads strong at saw to Japan we both Encouragingly, now

Our balance balance an sheet increased unrestricted of including to approximately $XX billion, cash billion. $X

the operating in flow Our investments cash the balance increased debt strong and to quarter-over-quarter dividend. cash and offset cash due the quarter, growth by raised our

senior these an in U.S. $XXX of swapped and notes we interest notes due XXXX, euros May, into In we rate X.X%. million raised immediately at effective dollar of

X.Xx remains EBITDA. our our to relative of peers leverage Our low net annualized adjusted

debt Our in the is X.X%, rate lowest blended industry. now borrowing our

into to capital As of debt also placing to plan opportunistically rate raise global our nature expand, incremental creating noted but natural given previously, both to the we growth where business, markets. fund we additional in low intend our markets a hedge these capital debt

Slide CapEx to the Turning for recurring expenditures $XX Capital were $XXX million, X of quarter. including million.

xScale projects in XX with in across including including last ], invest XX major Silicon we currently projects XX We scale our across Valley call, XX continue platform X to countries, our earnings markets centers underway new metros, XX and in projects. Since Lusaka Warsaw. opened data Johor, [

X for Helsinki our Madrid X purchased Milan. and Atlanta, also assets We in and development land and Dallas

Revenues XX% our XX% and of retail land recurring expansion be with our more ground own buildings or will on own revenues owned increased of assets to long-term current than leases. from our

the assets year-over-year XX% [ invested. gross as XXX returns recurring Slide XX. basis. strong on currency delivered XX% investments capital constant increased shown ] return Our generated Stabilized by stabilized revenues X% on assets a and cash-on-cash were a on utilized collectively PP

updated refer of and please note constant bridges. on XX are all guidance XX through an and growth XXXX basis. finally, to a for summary Slides normalized rates currency Do And

integration expected our For outlook full growth $XX revenue another our solid in the operating guidance a X% strong the X%. year. XXXX pipeline and year the line underlying costs. and of underlying the to momentum first the XXXX, This performance second million top half maintaining We're to by our raising year we're adjusted of execution of strong to with in EBITDA half drive due lower reflects

continue increase year. expected top underlying XX% is X% XX% grow raising guidance million, per AFFO over AFFO or and to our an previous between above to $XX the the at We're XX% XXXX by share we to is finally, value CapEx of our long-term expected And between billion, compound to shareholders. XXXX our for recurring and as $X.X of CapEx. billion million range $X.X including end $XXX plan about

here. stop to back I So the let turn Adaire. call me will

Adaire Fox-Martin

of footprint This to to Thank the address integrating a you, discipline, in and stand positions from believe focus. the Combined infrastructure. of to service had We opportunities XXXX. training apart to seamlessly value the broader base. also needs providers strong customer to address needs and demands wide our amplified a allows first of our . It cutting-edge enterprise us here customers. our we'll effectively customers, partners open Keith. closing, by the simplicity of questions. In and up the competitors our growth global our of era us continue With it continue we employees, to business I'll unwavering drive effectively AI set go-to-market commitment to range stop of with half and higher our of deliver the from efforts, We for that, shareholders. with

Operator

Simon Instructions] from Our Stanley. Flannery comes [Operator first from Morgan question

Simon Flannery

the your Obviously, from on the where you take thank Google, And what you Listening them Adaire, high-level see you the led the worked at at you've your perspective I'd Tour. opportunities. but love role before position. on on comments SAP that. you from get new came for congratulations to you the Equinix. to known Board, And

cloud a on opportunity. the needs So great you've the the hyperscalers, of got perspective AI

be you So you of on great being for if positioned it'd of that where AI? Equinix just particularly inference the wave into put for could context the training, see all but

Adaire Fox-Martin

heard thank opportunity words. for position Simon, much for and and the I the sessions. weeks and positive the I ahead. the lot since have exceptionally kind It's to a certainly remain I a very formally whirlwind and the took Thanks listening XX of question, being understood learning that say you during I've about

reasons one with Equinix took and reasons understanding reasons obviously the unique the strategy the of the or role of many in of the company its is main One the I or the of one why ecosystem. position actually

services platforms. and a demand I uniquely on capitalize think And more the than so positioned many of that occur. customers opportunities they and ease beginning customers to offer to workload-based various different decisions broader about the our needs, presented as multi-cloud. for technology have become significant much more is the to actually Many portfolio. AI as enabling a Equinix customers our at cloud of hybrid When very customer made actually by our is we it technology to that I believe can see can range a paradigm, commitment with

where best workloads are about suited. decisions So particular

in But the that globally. of initial performance context customers, the the many And expand to to ensure into at our demand, are that And to business. is their looking and we concept demand in the this look are AI we coming see from you indeed xScale an short-term the xScale something evolve we're As beyond business during funnel service our CIOs enterprise cloud providers. AI proof training to at this early and days reflected that AI systems. as beginning that in like strategy And heard is and in remarks, bookings the of beginnings the this I enterprise in as we've is seen of look production working strategy. and into they looking have looking that of

said, the I the of xScale proof this demand in company cases much is more that our a era this offering also in move through meaningful is use will looking balanced of customers exciting. and course, broader and journey. approach to into from I leading from As And business There our of long-term the Equinix I concepts something a the the represented from of broader as these that's extremely on cloud side lot AI both context in here, course, but is, unique demand I'm think to of opportunity upside retail to the forward house. think have a retail production.

Operator

to line from go MoffettNathanson. Del we'll the of Nick Deo Next,

Nicholas Del Deo

the taking on Adaire Congratulations, helm.

bit focus see expand areas things I go-to-market might the you simplification the initially. in little years? that to of guess, and you you what interesting amplifying some that on mentioned seemed front a on saw can had You and coming as you

Adaire Fox-Martin

for For again the I sure. Thank you Nick. that. appreciate very much congrats

that always lens success First outside-in it of success creating in and have it all, to when customer that I perspective equal customer translates ensuring I Equinix is value, an overall take, will a many regards. look at approach the about is and will

how at we partnerships we looking to at at evolve and look so the continue the drive to continue go-to-market digital the how center ecosystem that engine. this means evolve our enhance continue to this, and I product When how critical of portfolio, we we're

be few cycle with opportunity bring me core. is on simplification. processes their a can response life you and core agile of and accelerate have areas specifically things see exhaustive, notion whilst Let your simplifies, the our of business. pick you the cycle. ways to simplify systematize in us very elements like continue quote-to-cash back When one there we underpinning to you the this are list helps This up and our like that their to we to evolve the pace enables life to process, And journey customer throughout I definitely that and process customer's some not

but and core in processes of help enterprise-grade retail, is do and not help of is it business, we where the core, needs invest to look transact to evolve a to focus about our and I our both system look friction that's customers of footprint also our meet to how that type our physical where point may at on understanding us in remove environments When continue that. they the footprint deliver within These and simplicity. agility view, operate in this from not grow the will xScale enables And global we just how themselves pace, customers. it need the in infrastructure our but business to at

an the have where exists our lead. in through we to customers is have core to that is portfolio the when augmenting we important us core we at the would point This point world. footprint center this and I expect where the a where functionality also right have win Equinix of adjacency, that of focus that we and services that think of digital look some consider lens data

this in in where product aspects continue of highest to important to we're order focus perhaps our on instance, interconnections certain growth level ensure returns. our our fabric business, I the And the that us we of investing underpinning that look at how to can can have portfolio portfolio. we be And evolve look so virtual enables for to in as

And we go-to-market in side, go-to-market our our on team. have leadership new

very manage a high-touch business us customers segmentation think in I likewise, us to with very who a in a that space. to highest to revenue our have to our more to aspect through go-to-market strategy enable the of SME underpin important perspective customers distribution customers identify it's environment those processes general those our clear for allows us but type extend channels reach are and to and business that effectively

So I hope that's for augmentation the you given you a focus little Nick bit the go-to-market. of and Thank question, our amplification on actual simplicity, of

Nicholas Del Deo

Can Yes. up X terrific they That detail. sequentially. bit dropped interconnection on quite was follow I with adds. Obviously, a

but I noted optimization, that, adds and drivers grooming just and should and more as you about networking think takes content how those back getting expand on and the level? healthier think we path a to adds. Maybe puts a of can to bit sustainable and out you strong little called also interconnection

Adaire Fox-Martin

anything they of on any comment can I need here to if to commentary. to that my my ask that, there's colleagues to happy would us and I'm add

So all, we had, we as us first negatively in of as the StackPath his We mentioned which adds. XXX. had Keith net X,XXX noted, liquidation, impacted comments,

And had have would X,XXX we so that, adds. without

some build unpack you, your just me of the on Nick, let question. for trends Now to

numbers, level adds, year-to-date, way and connections this the actually in In First, unique the is our pandemic peak seen in companies the it's I side. When at highest absolute obviously gross demand this X we A-to-Z a And increase, this on levels. value to speaks And interconnection this between the relationships is look the define to Equinix. back years. positive quarter-over-quarter. I think that metro. truly we've really of continue And to

Z the that fact think we're of very the I things A levels, increase. to together, they pandemic a The future to momentum. number gross good adds, at peak those coupled absolute So of continuing indicators are

Pricing trending is favorably. very also

churn normalized new see We between And constant and X% to a year-on-year up revenue and additions. basis. currency you on have XX% spread

number we look So a positives interconnection of at as lens. the

worsen and in the . was 'XX we continued 'XX this elevated in early of churn in especially the operation. And On theater to the side, churn EMEA up saw

environment, our the most and customers. to that I industry think networks of segment have operating in continuing pressure had toughest see we're

connects, us M&A that say unpaid where for also those cross and often replacing intercompany indicating the rate XX the to through. would to M&A we can churning see this in paid some some have work churn top trajectory, an past. time But I have but that takes been affects data cross in relates who EMEA, as we connects and specifically, decelerating this it the from

again to me that trajectory focus we'll of over that is can of an So and gives believe move as the we say me quarter. I confidence on for here, forward the positive a area forward this move course this

Operator

Next, we'll go Barden David to the from Bank America. of line of

David Barden

I be to the guess I have to ask. one

conversation continue DOJ, the the kind of of obviously, So subject company. to be SEC [indiscernible] around

kind the with any conducted aftermath you quarter this past external to of changes be on in Also, what any to review put respect that that So have or guys an bed Board. we'll great. kind reporting. I guess are and a follow-up in by if you the could of made give internal of to the that us independent of update there the conclusion on is we where Were to take

last you could, if the then the Keith, referenced And one, I unadjusted cabinets.

or or we are around? release quarter in up up first when cabinet expectations. of adjustment represents it's this they with fourth that living of to the read per the We about language the in why the to where the time think talk kind better I a is that cabinets coming row. investors you see the had think densities and And third volume to because are terms need revenue some

Adaire Fox-Martin

can Keith with Maybe the kind Okay. to we'll scenario. muted start -- David, of and words throw I'll status. thank the that cabinet of very the investigation the on comment you perhaps for welcome. much then growth he

Keith Taylor

David.

the foremost, as an and to of we focus. cabinet look, first billings continue area So net high see

unadjusted. the the is churn, to and end that of course, be of have remarks, things impact of quarter. But there's to related then there's an as announced StackPath for refer we cabinets a one are on And of billing say said, factor. of I pull liquidation constraints, sort a of impacting. of . The an the them capacity their continues continued aside, roughly As timing and of cabinets at you. two in the I'll has why those obvious statement. things which base I to And prepared number net density out to wanted said to XXX we increasing the Put that

but remarks, As I to its in said the context. in that it's make sure prepared understood want fullest I

foremost, First record had bookings. we gross and

there. volume it the So sense gives that in businesses is the a you

the me bookings gives great Americas we specifically. that theater more So confidence, and in record had gross

that to we net tells in xScale and in about that the space. add quarters. X that billing best I'm retail, the last had in megawatts talking You the not retail

X done had this meaningfully we prior, than So quarters is better we've before. done

tells underlying it was sort into Adaire and So gross health about the about the you really interconnects. talking it of what ties on of business the

But density, different whole of a when at things says, of we which density higher because churn. how number the There's certain sort you, there's turn just basically there. of X,XXX can be of there's element a to well, and cabinets out. We of apply -- the factors we're do of that that it for a dealing do the basically density. you I with this when a level again. timing out level are is So on roughly that math the you But talk with of you're volume both the we forecasting you know, knew timing about would quarter negative -- of as business probably unadjusted QX

And unadjusted. so say we the that's why

an economic great most the that's given look, been climate talking think in sense the we business. good quarters now, churn coming seeing gross element that and the the But which momentum thing Yes, the gives momentum we've a We've in that see for you're business, you is in values. important we that, overall, what with We're about many the great the depth business. pipeline of see through there's operate. of there's of us I that going our confidence abate. to that's

do substantial. you larger-sized interval, we therefore, as is seen medium get just long backlog been And that, level deployments a last of to then you and implementation. we've as have because has when in creep the configure work them it's of more to and to part into backlog period the deals the in some and high would we did I does say in time the very quarter. extension those surprise, up largely Not the a And book-to-bill as

let answers DOJ. going continuing go the work me me DOJ, working through I to process. that think and to was the that which process. then question. that to We're We're Adaire It's SEC the to a hopefully, you. over just And pass no surprise So with anyway, to

like confident great draw you file process we're quarter, to we and filed that only but XX-Q feel to would XX-Q that continue We comfort the in to our we not our I responding it. today. very from fact how today, last did

to is Audit reinforcement have draw about it to you and from it. a of that from we and report anything, think DOJ, the respond short got And and comfort great SEC should you when But it comes so out like subpoenas following the therefore, from Committee's we the process. seller financials, our the investigation the as with came it

to there an you look important did at it didn't In is very Restatements any fact restatements we about anything -- that was of do not have we but want clear May, Adjustment not think what that your only differently? have when what adjustment. adjustments. we any we we came to in announced is I out question a was were materiality.

as system great. which so should, working it is And is the

controls, We team the work. the have about confident feel And overall, we it. the does very

other we that you're that going that anything, are and to different. do reflect back things always step like could are But are there

and And that type do do we looking team, disclosures. so different the do we of things at all that's they're saying, where the

very advance us You for already and make redevelopment the which been appropriate of we it augmentation the planning disclosure, of seller but that was kind report, disclosure, talk thought the we important recently a those in about just short one of had CapEx, we things there's we that -- saw policy sure are

always drawing every to looking says we're never be my to never we're we friends, us from always And it there's that because co-CFO one I'm adjustments? The things done. a relating in And line much think any better. better, of position. going quarter. better I we done answer better, do no. But But think do he is there puts can single of always a is And to, better

But anything back in take very we'll and advice and I both So our and get better. feel financial comes SEC, from comfortable whether guidance the overall, council the from DOJ disclosures. we'll and

Operator

Sachs. go line Goldman to Schneider Next, we'll from the Jim of

Unknown Analyst

demand I enterprise was material conventional wondering directly workloads earlier AI sort to on retail do believe about be on providers on service if comments your to enterprise. you can Equinix how before will more long expand maybe side moving it the becomes vantage that from From your of the AI point, side? you

Adaire Fox-Martin

welcome. and words Jim, your much, very of thanks and question Thanks for your

how term, loads. is we customer partners various driven xScale enterprise represented in cloud retail have the And the is we is seeing and many is business. and we're mentioned, have. our as think based work absolutely I short . In to ready of demand training primarily the in near-term centers, term technology I've the take is that different in AI-ready mid-market that the business, being data our this pipeline workloads. this, by beneficiary short instances for the This primarily

We workload already we where running training AI-based of enterprise-based world have a transactions customers. in for the smaller, closed scenarios are number

cost available have last companies that who offering we the 'XX. data Equinix cloud like centers that announced in capabilities and We are so. strategy Equinix in have AI our into course, as of in and, and Lambda working a to partners to 'XX, look business And as it their our ecosystem DGX relates many they're private CIOs manage to AI support whilst their AI, NVIDIA almost integrate year announced magnetism some of CoreWeave they doing their with created also course, of late we of around today

of have very All work these active pipelines.

system of users them have of making this Some are use now. active who

data the seeing to So our over I'd longer workloads say that grow to traction inference medium type we're we'll that center and and that occur the in term. enterprise level early extrapolate something see beginning in environment. is But

Unknown Analyst

outlined capacity. center both modernize as And your expand for you to DCX last follow-up, then your data a plan and quarter,

to you portfolio, facilities? opportunity look do across foresee your you the As do this more more across broadly

Keith Taylor

Yes.

Jim, think, redevelopment, not our DCX mistaken. I referring I'm you're if to

Unknown Analyst

me. excuse DCX,

Keith Taylor

strategic, more capacity center into is a a that value just are the of get element only redevelopments the importance. highly doing good not they They're is redevelopment, want I We connected We're and aspect they And those we and have think of it, the to good of it. which because X redevelopment scale, enhancement like great but projects size data return, get sure. of call X-ish. we of type what that universe return make create of that to also to introduce on both of the

universe massive. the overall, so And isn't

data XXX we'll Adaire is alluded have throughout think do to, strewn strategic centers, the too. X We we as X to that assets that, world .

Operator

TD Elias Next, of we'll Cowen. go to from the line Michael

Michael Elias

between helm. differential congratulations Maybe we've densities on that one off, things taking the the kick the coming being in. noticed what's and churned adaire, of in things is to what's

that increasing Thus, X now, cabinet at my think structural represents it first As an or in Do seems I through could there's X an you there. a as this per power like cabinets you number. and talking that's X of this to quarters about view cab we kind in i.e., trend, chip X. question. headwind level, guess the acceleration the evolution consumption be at taking I kW at churning from

is become get Just a and going headwind? a greater to this greater trying around sense to

Adaire Fox-Martin

in. weeks XX Yes.

areas Keith I've increasing the cabs those business. And So churning click double highlighted dynamics are there that absolutely of that in here. this see you And are the done on that as pointed, a the can churning power are this of is that a out. certainly in shifting versus, in certainly density one I little bit some

when perhaps, something we're times us, as And is think kilowatts cabs past. cleaner growth we a the this that have our more measure, perhaps, point. towards is for P tied right on. a I versus from though seen where we we've xScale look is growth to our billable cabin is cabin this cabs in If that, retail, billable it that's I would cab to business, think that our as reflecting revenue something see metric. and MRR being math think tightly probably the But per as maybe yield weighted probably not at count about the And now, the about Q it the I even

insights our business to continue capabilities supplement and we that can seeing evolves we're continue think that quarterly into the with centers I to density evolve. how evolve our data as And as within the

process something whole So a [ it's certainly us for that's here. ]

improve think to of the installed leading as indicators the number mentioned, think this not strong very in I indicator will reiterate, those cabinets gross sold, just we on second I Keith plus are yet bookings half. that

Keith Taylor

to just said. on I can add And if what Michael, maybe, Adaire

way earlier on think a and in we asked I on, have. that the respond you be question keep absolutely as all looking least, important, density. the same so of makes have give Adaire to that to said, got statistics can it's dynamics David to wanted the the at sense it and you at shifting we is to we Clearly, view sort more look, able

up is MR the the fee crux and ] those XX% So to to are we also come ARPU that return you IRRs unit per is -- looking on more XX% if a no going we're when per you're seeing here, business, what's or in I density, think in that have really But going price your the to of capital [ But at But that's the surprise investment. you positive. targeted look to we're what invest you, monetize -- cabinet. we that the leverage. a

so center keep makes components seeing I And of to expectations. feels retail multi-tenant to But changing bias shifts density yield so other you you cash-on-cash again, But deliver. player, still the we're that more But really the where core to that like really it's, need what's on on give the to you you're business. tracking. metric something the in underlying that in is value deal one full going is with going how data and sense that's the think customer get have --

thrives propensity you tells shifting a a different aisle is really taking like an and are there a environment, it live that one centers, go data you that, difference true a feel with may in that you aisle versus -- be to into density. get the place increase something for of ecosystem our when in good something X in and between And real dynamics that

Michael Elias

down believe the you medium still deployments? part in. at give And And half. churn in for among as to seeing the one if of a churn was just for that us that, squeeze could I Is Great. expectation the your small-sized more that and could sense the you're I year . of step maybe beginning back expectation? the

Adaire Fox-Martin

Yes. can this, the is add. on to that to is range of Keith, I free we the feel range that manage continue X.X%, in perhaps, which we then I'll seeing comment certainly, that to we're to churn X% something and our mean, to. guided

terms I we if think landed. quarter, than we slightly in that expectations this in better been have where we'd StackPath our of normalized for

a have trajectory which supply positive the very a market, has on and pricing. in also situation demand We

there's dynamics the with to to to So less see more half give thoughtful have we churn outcome dynamic first the that maybe that the will tangent. on are customers segments across definitely does in need industry us number the some gives yields the that still less. them so that here. it customers at opportunity do in a of a they're selectively and with be industry. the our tougher about And this of us proactive are terms of environment macro who level. customers use operating I all churn and we because overall industry help do Optimization the looking to of that exist that is in drive challenges we still for managing our something some could more that had There's certainly improve in

within quite we full from incoming a in we be the per the will That managing to being guess, the said, is ranges just that see process. this, thought year I cloud, set. of this And that then process to a we usual as our world guide

in to enhancements and there to intention look relates their some management use profile us us opportunity terms at as that for think customer it engaged some management early to is on churn. an proactive our of -- and of to I with

the lean much I earlier thus in doing think support churn-type potential And and been discussions to customers for process so us than to optimize is there in engage as we've far. they a in and our

Keith Taylor

to activity Adaire's I'll to maybe comments. gross the the Through is X additional second deep. see, given really just continuing add obviously, year, just Michael, up. pipeline the go underlying thing -- I our expectation The of is booking on half

expect already We fourth them we've vacate we're which consistent we're is in of be sort working the with customer premises. working with with we've size. quarter, the to that coming one telegraphed how That is is -- to important. guided, previously then Singapore we're going And in in churn asking

We will we the update third quarter. you on that by back the of time the end to get

should valuable sometime the we'd our I use would Singapore in one probably I late it's to until to area So but the by up like to year 'XX, gives that back on available the guide. built the into and that's a be very and said, And Singapore happen as October capacity by was in that end think to that asset running. it going call, have us the put is and our X some time isn't churn. our [indiscernible] It of

Operator

we'll Rollins Michael from of the line to Next, go Citi.

Michael Rollins

center congratulations on the get maybe slightly the I'd addressable like way. for your in thoughts retail new market role. Adaire, different services your data on to a

And over enterprises, Keith, half When to think the the opportunity last like just I from you roughly bookings X for I service revenue do relative we have. X% environment, target few networks, increase about cloud which how room growth from second IT X,XXX the take these PPI customers So constant then comments, X% high grow half just at of a X,XXX then presentation at cites the a for much that future providers. you and the your growth, when the X,XXX on look was verticals quarters, at follow-up, average I the think, spend the the X%, year. have the about it normalized ex to have well. if currency, deck more the following opportunity is and curious end comments about that influences. gross made as a pipeline. times to deck now the you customers of . And each -- seems you in could, for the to first the up the And you revenue look

of to in happening you . the back a can annual bit that more X% meeting year the So half at the range that's X% share what's of

Adaire Fox-Martin

You want to take that first, Keith?

Keith Taylor

will sure. Yes, first one. I do the

Adaire Fox-Martin

go Yes, or I'll take you first. first

Keith Taylor

all been of one the Let sure is take has Why Look, The thing the on it's the year, if we're you, tough guide, [ that element with look all churn, performing Michael, . it? fourth into it quarter-over-quarter -- don't won't We've of comfortable that the I particular take second repeat to has the been those when momentum high, into XXXX. the you a them. persistently other given ability XXXX, lost of well. numbers. first, said, that may. range That and is ], although I there's listeners at business movement. persistent an quarter, translates we you not in XX.XX currency I'm our this me half I and all quarter and had

We also felt energy. the drag related to

-- power our As price it's you the quarter. that, you, large booked we know, this revenues for To we to charge through have one-off in we decreases. that we're it going had million. size $X roughly Then recurring

sort in variability so on affected you a things the There's on. side We'll great And of And each nonrecurring. it. have quarter movement what's the of on to of quarter-over-quarter. number that's the sequential do best recurring going that our there's guide

we'll reconcile in for sense performing. of can and the with and truly out year created Suffice is you business the has as just get success volatility say, next that business the nonrecurring the it so well, how underlying it to xScale normalize some

our have second said, accelerate. the down level highest would in the So we of year would The is in pipeline our half slow we seen that bookings business. that churn said the all and ever at

good churn. that's So

think, seeing have, you the momentum as good you're a I the that see We should to. business. in And result, visibility that's

got speed remain well just And said, that tough know aren't economic they it companies as And out continue a out wall so conditions, an the But StackPath gives environment. Adaire there. the liquidate, despite when to hit they're and there. like Companies sense evolving macroeconomic confident. we you we some you've at full doing

the constrained. Equinix, get going to continue to the friendly and environment to very digital know relevance. We our more we supply environment We is is know know

share is metric know on year So and also our we do intention. that the we optimism a exit how combination with you top what basis. we again, give we only value of continues to believe ourselves us of is, for That lighthouse all management good line position per how both in whole fiscal is But the that can not but we have, our driving growth. that XXXX

you gives for. the that that hopefully, So answer you're looking

Adaire Fox-Martin

and cohort and of customers. have we And perhaps, positive our the feel like in commenced a just from refresh we at part is only deep the elements installed to something undertaken Not our But already model market very of of building have rinse-and-repeat of opportunity we around scenarios This in that new and sales about. or the of on address those segmentation context I looked the base that very very, that, that first our create place question a selling customer base. us opportunities. into have each a how almost can a perspective allow to of

So as some bring Equinix to of we family will installed opportunity way of and upsell base, very our customers. to about the them excited outcomes a programs the and coverage in result the reach segmentation exercise further prospects that about the define as but also model those us of the enable to into our

and underway, of a that's piece of I'm that confident and outcome about So very the work. work prognosis

Chip Newcom

QX call our Thank call. today. concludes you, joining This for everyone, our

Operator

the you great have conference. Conference of Quarter this today's Thank Equinix in Call. rest Please at for your day. Second disconnect participating Earnings all That concludes time, and

Equinix (EQIX) 7 Aug 242024 Q2 Earnings call transcript