SWCH - Earnings call transcript Q4 2020

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Operator

Good afternoon, and welcome to the Switch Inc. Fourth Quarter and Full Year 2020 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. to of conference Investor like Heinz, to now President Vice Relations. would turn over the Matthew I Please go ahead.

Matthew Heinz

Thank you. full call. and Switch’s fourth Good afternoon, and year welcome XXXX to quarter conference

subject Gabe Thomas forward-looking may include including differ certain Actual expressed future references to or those Switch’s are events call projections, statements, today in expectations, materially statements, characterizations call CFO. Today’s from and the President; On which uncertainties our results and assumptions. other Nacht, to or Switch’s may conditions. are Morton, risks, forward-looking of market

Our we filings, statements of update We today Risk XX-K are these made as the our some specifically assume our of and in described SEC to no entitled particularly obligation our Form risks in section disclosures. Factors.

discussion not including further which includes today’s refer or financial addition, press prepared financial from, isolation Please and today’s be for of in a accordance supplemental of should information, substitute as for to a measures. release in reconciliation information call measures, non-GAAP non-GAAP GAAP. considered with In package

quarter turn Switch earnings website Form the our has as release available SEC over XXXX call will press been Morton. of to and I now our investors.switch.com. furnished Investor part at is on President, Relations Thomas the to X-K fourth Our

Thomas Morton

key COVID-XX Thank priorities and Matt, the tremendous several good in despite for you, by demonstrated Thank today. the presented pandemic. afternoon, you strategic Switch execution us achieving XXXX, team everyone. challenges The joining resilience strong and

for $XX X value the fourth record $XXX to Tier of a up million, facilities. signing million stepped team by of contract multi-tenant enterprise demand record by strength annualized in sales challenge of revenue reflecting incremental customers market quarter, Our our delivering bookings a total the the and

report the backlog a that to recurring $XX than year excited revenue with million. ended are We of more record Switch

that Full two power opting their a revenues X% range. public a determined revenue half to affected company. by more suited portion of of factored customers Reductions XXXX Our XX% the low $XXX.X cloud stack to or customers to to low below were public for forecasted portion Fourth year at environment. increased security with into relatively quarter choosing applications public of million their our workloads application year-over-year both as critical while mid-point Switch. and a their highest ever our migrate of maintain cloud, They were prior guidance from mission requirements were a better density ranges. a

revenue improvement as timing adjusted guidance the reported was adjustments was fourth company contributing we both variability efficiency, However, XXXX. the as midpoint. revenue uncertain year more a full these quarter and in our compared operating to achieved highest our in an public by of offset the This margins reduction ever to of than EBITDA

of a As increased and representing our our EBITDA range, a million end came full XX.X%. adjusted guidance result, $XXX.X high previously the of margin of year above growth year-over-year XX% in XXXX

moving While this a enhancements believe attributable XXXX be was the will to our improvement sustained COVID-related expansion of portion amount margin efficiency. to We our of XXX in savings. a in material basis that forward permanent margin operating more cost due point

that reflects transactions half and elevated XXXX XXXX the due year, will inventory enterprise of second the we early a for outlook dynamic our growth offset robust of near-term second by of during we XXXX. approach current Our constraints of volume to alleviated multi-megawatt half the as demand be expect closed

this will XXXX. extending that We have year course into over a number ramp of of and in the pending installations

may available space space our larger amount that the reserved in result, have of immediately will sold in for backlog a and monetized As been in otherwise limit being earlier the these XXXX. power transactions

demand long-term infrastructure, center I best-in-class on cover around travel permitting continued later some of key facility committed year, now to like backlog quarter, robust will restrictions, near-term for In of are up XX% timing timeline additional provide Prime site development XXXX. months we Southeastern an I bottlenecks fourth at less began recent of to in ATLANTA the contribution during region, and XXXX. response XXXX, construction colocation would for at completed this our the the in due than signings objectives strategic we Switch’s plans COVID-related The in achievements details turning anchor we and average In fourth than to focused after Keep on next months. eight strong our longer opening customer now over ramping have notable in to customer construction keenly in our in development Against utilization to our for Campus before ease data quarter. bringing Switch’s centers and ongoing XX-year a backdrop addition, with this that in data call. we expect the a deployment and affecting our the initial X installations two strong magnitude agreement demand

up With XX to open the additional of facility early next expected XXXX, square in megawatts and XXX,XXX adding feet capacity. to

full the second third scale at centers to in in capacity committed Citadel nearly at ground representing on broke and bringing and XX TAHOE RENO X. to also utilization We of ultra ramp XX% signings megawatts The response Campus data customer over

of to two next data the power available Las development saw also end gross XXX centers the three of megawatts Prime. feet million Campus Our represent XXXX square at massive planned additional and centers an Citadel by of The at data continued Vegas X.X Switch’s XXXX. up incremental

expected Tennessee of XX makes additional agency expected These our megawatts our available data index, affirms for Los set with Vegas Switch the in collaborate rating EPA. infrastructure the to power with The rating Business sustainability providing represent The and report operate XX of year. MSCI, represents efficiency In investments by December among named The gross Memphis, by leaders only benefits Switch’s to Dell multi-cloud adding momentum further in environmental upgrade Tier with that likely and enterprises. benchmarks in FedEx’s edge which Dell’s sites position come perform Fortune by investors finalized agreement and from other square data months. as the a a MSCI eligible Switch XXXX. and solar XXX,XXX our equity cements power the was XXXX, sustainability, performance including first to at open the ESG Core the centers alongside certification feet interactions. energy colocation MSCI Switch to announced facilities cloud Solar In with scoring XXXX XXXX, Switch online BB Apple, coming development centers Energy QX we independent Switch energy the awarded the enhance Switch for in SwitchDoc meet the advancements an third-party to focused XXX,XXX under recent expected ISS. center of level the tier upgrade this up infrastructure is index Walmart, certification of XXXX, aggregate and assessment XX. assets by additional in Technologies over upgrades to to This the leverage leader Sustainalytics, available ESG largest portal serve services ENERGY at Google end Switch’s XX company in of the tracked agencies, in additional alongside recently technology Switch to for be among X gross customers. performance communities these Switch of U.S. October customer acknowledgment is companies top an funds square passive Solar STAR for all protection near in eight data facilities the positive hyperconverged top utilizing colocation client in planet. its up Notably, by be in be with billion in designs This where headquarters one of continued center nationwide Industry FedEx saw will and and top avenues signifying these XXXX, named energy Association’s in management. three Means again initial and was late be its under deployment to Core solutions. and the certified of third-party annual of data self later strict November capabilities for facilities customers, sales launch over on expanded proprietary the $XXX several the that for additional launched options delivered and tremendously Campus and edge XXX development megawatts and Campus feet in to an is The administrative

Rapids provide with downtime data small forth we center partnered brought in to Nevada, assistance achieve backlog. security outside our healthcare rapidly on workers, recent and programs the half meals favorably expedite pipeline and partnership QX our deployments space area. public frontline local expected to include revenue installation megawatts cabinet online a will Chamber to which operations the XXXX, of of by Core clients. Switch partnered nearly The the development a the customer COVID customer the may become workers, the growth local and our our zero with pandemic. One, of we funding support County community our to XXXX, environment Economic Switch’s power campus of and sales to responded in Throughout to in XXXX. several XX Our helping with Georgia also large through and the support with the for and Four, Google diversification I our our in These progress businesses changing and Campus. growth to that staff priorities a perfect program by healthcare provide XXXX power maintain equivalents grappling continued of Douglas of Two, revenue healthcare to prime local in Greater to individuals, XXXX sales and and workers kindness Three, restaurants Nevada to for Northern come to currently of Grand portfolio. and available organizations locations Michigan, meaningful Department Atlanta provide first beyond. of uncertain continued the Commerce business Development businesses record summarize of and opportunities total realization the pandemic, and ecosystems safety to with now in COVID-XX and maintain its revenue on between Switch strategic complete COVID-XX momentum pipeline expect record of top X,XXX maximize contributors across greater closing to highly

these the year. three XXXX, for nearly total for primes of accounted our incremental aggregate Citadel, the revenue Keep year XX% and For Pyramid as XX% primes full last revenue was growth growth total Switch’s

Importantly, our the consolidated year Keep quarter. from of represent Pyramid in XX% Citadel, revenue QX locations XXXX, as XX% up ago and of now

quarter our sales fourth recap year. and activity in consecutive million second value total to signed the full for the Now XXXX, Switch year for $XXX contract over

quarter. over sales final the in a Our two in as transactions fourth record half to including second million totaling XXXX $XX of annualized executed quarters million the Switch year, revenue velocity incremental momentum in of continued gain $XX in the the

year million, annualized $XX full XX% from signed million the incremental the bookings XXXX. XXXX, increase For $XX totaled during of an

a a Campus, The We our customer platform manufacturer in XXX our customer expansion firm The of new campus Pyramid communication and across also industry software developer signings for incremental and customers, anchor leading X services added our XX Campus, with Switch representing global our a customer both acquisitions. Fortune Core Prime customer X X logos has vendor chain annualized and and in revenue. included locations Among provider megawatts a for of megawatts million a The contract engineering a the spanning during from expansion to wins of quarter megawatt including best XX quarter Citadel more megawatt supply logo the key than XXXX. Fourth an in totaling new global included in majority Campus existing quarter early a Citadel fourth of The came largest The X and additional the multiple recurring with semiconductor ATLANTA QX automotive a a This and a Core facility, application in Keep new wins Campus. from transportation logistics Campus in $XX order construction nationwide just for video QX software XX-year Nevada management in The e-commerce locations of XXXX signed in signings in leading existing streaming wireless The Campus.

across and power which additional our is expected tenant customer facility supporting half the sectors of Citadel under during and primes, In delivered X, XXXX, anchor equivalents construction ATLANTA The two are contracts. of equivalents two XX capacity megawatts the XX% both pipeline, is opened XX milestones four including cabinets which we VEGAS expected committed XXXX. over in XX signing of for Campus, total fully deployments the to to in the second cabinet and customer the in committed X,XXX customers power to totaling project we ramp and turning cabinet megawatt of which XXX course LAS a of megawatts, approximately and commence XX of systems now including to new Now XXXX, X,XXX

yearend ATLANTA Our is of as approximately facility XX% XXXX. committed

the in than XX% an projects the cabinets next capacity XX and at early under of in Following in is customer RAPIDS we months XX% our CapEx is QX committed to the plan were construction anchor supporting megawatts X, deployment customer additional for GRAND complete Citadel over our XXXX for in XXXX. committed tenant Other expect come space projects second QX The in and is is of XXXX. included XXX TAHOE in deliveries data next the include in currently facility included VEGAS QX available The center year, ATLANTA commencing Atlanta capacity. More X include on X anchor center, Also XXXX data contracts. aforementioned based plans already delivery Campus, is XXXX The XXXX, Pyramid These which during of QX signed of in data QX and with to XX this XXXX beyond expansions with Campus scheduled that the scheduled XXXX. revenue cabinet online XXXX power the primarily XX the center XXXX. of RENO LAS tenant which sector scheduled and QX

than are of roadmap excited Switch our greater footprint. for XXX has capacity square megawatts out up prospects, primes. data under new current schedule aggregate, to we next Partners. development SUPERNAP XXXX, as Italia XX% representing four currently In of million within for of over the our feet the beyond we on SUPERNAP sale currently to out International year long-term a the the five delivery and expansion and Looking growth than about IPI lay to X.X years, expansion center Subsequent end, closed more

its retain full license. I for transaction, to property an call equity of international our our JV turn liquidity opportunity SUPERNAP discuss for control Gabe? created This successful now exchange partner. financial in in over has results. its Switch interest As part this equity to agreed to additional Gabe Italia Thailand the and SUPERNAP a for over intellectual event will

Gabe Nacht

million our XXXX to year an than during who results $XXX.X quarter of X% for revenue XXXX. compared Today, the been the full to increase of fourth Thomas. I’m year-over-year fourth outlook quarter financial going of Switch discuss Thanks, XX% new reported and XXXX. review from customers XXXX year. fourth came XX% Switch revenue months, for service past million, the who while XXXX have quarter our and of QX $X.X growth XX initiated or in longer growth one resulted of customers from with revenue

million $X.X XXXX $XX approximate XXXX customer million the revenue. these the in public reduction This compared million period and XXXX. was XXXX. was be compared X.X%. revenue in opting compared For of full revenue stack XXXX, will of an to in two increasing same customers million of application XXXX of in resulted for to of Other XX, to from QX projected XX% X.X% effect initiating million, the $XX.X existing by period in of XXXX The with for in QX migrate quarter attributable by fourth total services to year the Fourth first accounted environment. reduction XXXX. a XXXX, revenue revenue reported a to Colocation $XX.X revenue an $X.X after quarter XXXX. growth $XX.X professional full was an quarter the quarter XX% for December in revenue including million their $X million $XXX.X realized increase portion service QX fourth customers was of XXXX in cloud Connectivity in approximate customers to affected reductions same to million

hybrid to do this Importantly, signed we both at maintain further contracts not the Switch balance significant anticipate of customers have renewal their at time. migrations workloads and customer

billing ago December XXXX, more accounted As And cross-connects revenue for had QX of than the of approximately billing over Switch December $X,XXX in had up cabinet in revenue. period. XX from X,XXX monthly approximately X% equivalents of year per cross-connects in X.X% We XXXX, recurring total generating equivalent as XX, cabinet XX,XXX

increased XXXX, year full revenue from prior the compared to year. the For cross-connects XX%

Now turning bookings. to

Thomas, As in sales mentioned quarter QX delivered record by a Switch XXXX.

megawatts, fourth approximately from new In $X and value executed services. full record annualized of a customers contract of existing we of million the quarter, contracts XXX incremental we total inclusive $XX and and XX of post QX, both representing sales annualized signed IPO $XXX customers. During recurring incremental revenue at comprising $XX deployment, $XX million of revenue, from incremental approximately including million in bookings million million renewals

also revenue for just million, our record As new $XX recurring of public XXXX, December Switch a backlog a stood XX, over at as company.

backlog $XX with incremental of beyond. revenue contributing remainder million approximately expect We during and to the XXXX our contribute XXXX in

multiple and restrictions. XX are currently Our backlog enterprise inherent complex large large from includes three are terms, travel to uncertainty with by contract ranging years. initial These and strategic installations COVID-XX regarding transactions nature in affected

As year. of occur result, ago in we in the XXXX revenue was Customer second to in a QX half our contribution quarter. the churn to year the XXXX of backlog anticipate the majority X.X% X.X% compared

As exit the the churn resulting as of beginning platform a at a contracts reminder, reduction the revenue divided or by non-renewal in of period. Switch attributable customer the expired define recurring we the terminations revenue from customer full in to

churn depreciation mentioned the as in million by year in Cost revenue For costs. both primarily to this of in increases maintained a to and were at quarter, due included QX ago the previously $X.X XXXX definition, increased customer customers reductions not QX in revenue Switch. power presence compared have

was reconciliation section of of in of our gross equity-based to provided the QX is profit X% gross adjusted investor profit cost appendix revenue adjusted increased our XXXX compared profit increased in XXXX. in COVID Income million $XX.X million million decrease to A related Interest the X% to $X.X $X.X XX% income million compared just from profit. reduction Excluding This travel gross increase and This million the $X.X and adjusted in quarter September, million by depreciation, Switch’s QX balance The debt amortization million million and first year-over-year million. year. offering were lower compared from SG&A $XX.X in to lower attributable SG&A and $XX.X same ongoing primarily work fees expense XXXX. was SG&A $X.X expenses driven $XX.X QX in in increase by in in ago restrictions. QX $XX.X debt and increased home to last protocols in XX% approximately higher by LIBOR expenses bond in increased presentation. QX rates XXXX. to professional to quarter XXXX, to XXXX following the operations year its to to QX by XXXX operating unsecured primarily in to growth labor gross compared compensation, offset was attributable

the $X.XX includes of in income of for on quarter to compared outstanding total on in XXXX was XXXX QX XXXX. at QX December $X term XX, to rate approximately reduction million average in in to swaps, a reflecting we XXXX, in swaps QX of the weighted EBITDA resulting million inclusive As Net interest rate $XX.X X.X%, totaled million income for XXXX, million billion $XX.X of $XX.X million net loss $X.X XXXX, $XX.X debt XX.X%. fourth income share. per balance. growth diluted of Net non-cash loan income interest interest of year-over-year rate reported remaining our of had net Adjusted QX compared

to XXXX was in the XX.X%, points basis quarter, professional services primarily labor. for from the margin QX ago XXX and EBITDA due reduction adjusted increasing Our year

that an slightly capital expect EBITDA our million, in in savings For basis increase of quarter combination to compared of previous our and purchases range. were XXXX a of in of we capital detail land in coming XXXX, XX%. $XXX.X EBITDA due certain COVID fourth excluding more in during full of million increase adjusted discuss $XXX.X XX.X% the million greater to cost were year quarter the in $XX.X portion expenditures will XXX guidance to efficiencies related to were high margin XXXX. $XX.X related to million expenditures compared $XX nature. XXXX the call. and million Capital and expectations primarily Fourth was same purchases guidance the million XXXX quarter margin year the delays. permitting forward because were and approximately prior due be point certain that I above the operating permanent The guidance to XXXX, during of projects of our Full previously XXXX the This expenditures, high margin our end of $XXX.X expected a increased adjusted range. pull decision to full XXXX, XX.X% end COVID in year year-over-year in was above mid-year reflecting equipment

all presentation million was months last Maintenance our to the release expenditures opted for However, record compared for the the fulfill and permits revenue campus quarter X.X% investor breakdown the our of to to capacity compared of large refer in $X.X capital of capital purchasing CapEx same fourth million based the and million and fourth or $XX.X necessary XXXX. for year. X.X% final the QX quarter press in data million same center on accelerate detailed period were fourth receipt to during by construction year the revenue year. $XX.X Growth of last improvements and XXXX. and expenditures XXXX of backlog, full construction a of and in quarter to requirements $X.X the of we quarter XXXX for Please

at XX,XXX cabinets compared Keep Campus, based approximately XX% and The XX, QX prior XX% available committed Campus committed primes, contracts capacity which Campus, The in of on for these to currently colocation quarter at Citadel respectively December XXXX, XX% Core under quarter. to equivalents XX%, Pyramid in space The had were XX%, XX% of the in XX%, and sectors and XX% XX%, XX% the The the Campus PRIMEs XXXX Switch our in cabinet compared utilization and XX% the As rates ago prior open were quarter. within year

the total adjusted to XXXX, debt ratio a in quarter X.X equivalents as was quarter. prior million, annualized in XX, EBITDA compared resulting last Looking at sheet, outstanding the cash times balance the and of X.X net debt now $XXX of of net times cash December company’s to

million, and of equivalents liquidity cash Switch future. line its As cash revolving of is our this $XXX.X the sufficient had and plans for under XXXX, credit. believe availability growth fund of to XX, including We foreseeable December

were XXX.X total Class B As December shares million Class million XX, XXXX, A shares and XXX.X shares. including outstanding, of XXX million there

member the of number X-K of As issuance members Class recent Based in in bringing quarter common equivalent the been additional a as float during filings, At public B resulting our on the shares redemptions Class have an quarter for XXXX year first Class disclosed exchanged represented fourth end, A completed to X.X of outstanding. shares XX total common in A redeem A million X, an float of XXXX, million shares. February stock XXXX, up shares Class A XX.X% XX.X% total the public common of units, of Class outstanding.

Now guidance XXXX. for turning the

expect reflecting year-over-year million, of midpoint. growth revenue organic We million $XXX X% the range in $XXX the to at XXXX

the the We midpoint. to million, XX% X% reflecting adjusted margin at range $XXX EBITDA expect of XXXX compared of EBITDA XXXX an and an in adjusted $XXX million of to increase

quarter of million. to the fiber would in expects in growth half will capital the we of range year points $X.X of backlog second acquisitions excluding clarification weighted our rate. revenue first to to to first expenditures, comparisons toward of revenue few XXXX its the prior of realization million add XXXX I half the to be to contribution growth XXXX, most affected land year. Growth the in be in Due non-recurring important Switch $XXX customer our guidance. reductions, revenue in addition expect of revenue the Lastly, timing and like the million $XXX regarding a

capacity a $X.X customer revenue being reserved for midpoint. installations, rate million these future in of at the of the that our XXXX the sellable capacity guidance space amount and in over backlog a driving of growth reduces quantity revenue, and fully standpoint, which our the XXXX, reflects periods. XXXX X% Excluding significant inventory constraints in non-recurring From an remaining year normalization will alleviated record is We course power large growth anticipate fiber be XXXX. our of this of into

gains it in continue great I’ll will enable Thomas above back And and XXXX business in to now, efficiency margin operate the In closing make some our margin addition, to we us strides historical achieved the for remarks. expansion we turn levels. to

Thomas Morton

among we as positioned switches transformation firmly they that favorably migration believe continue to multi-cloud hybrid In enterprises, rapid digital conclusion, architectures. the for their

to of again, team experiencing. working take We team’s like questions. behalf ability shareholders and are our data would in to And this of our management are once opportunity like we customers, record capacity thank confident for we accelerate to our level continued We to employees, open Thank hard of now to to of meet execute. additional the demand are for on you. line their delivery would center currently support partners We the our Switch.

Operator

the begin first Jefferies. Instructions] now will ahead. We [Operator go of question-and-answer from Jon Please session. Petersen And our question comes

Jon Petersen

of you. from customer base quarter. you any volume, properties I Thank types any curious, seeing Congrats on leasing if and we’re was getting any maybe customer or to a your closer leasing strong just us, cloud could deals, the I you’re give maybe back on a to urgency update different on changes enterprise in different have or follow-up. now the assigned normal and versus that reopening

Gabe Nacht

be mute. Well, it appears Thomas on may

So take question. that I’ll

Jon Petersen

Okay.

Gabe Nacht

deals we that signed deals. – good The pipeline. continuing see have enterprise been We’re a strong seeing to

market. Switch really know, does the you As enterprise target

We walls, deals, clouds have transactions. both XX campus over all which enterprise a is megawatt, within enterprise been think signed number the terms number in X of market. half, facilities that are a to and last I bread have within nodes large year we deals have facilities. of in and our a of our And we’ve and in the the But of our our cloud cloud uplinks butter and

there. the So in definitely uptick an we happy that are sales seeing activity with pipeline and very they’re

Jon Petersen

the on churn. of clarification And appreciate Okay, I downgrade, the customer great. then definition the on

it’s got that you, that about with is few be if how could churn we door the have years. model the do downgrades be you maybe so sure we customer from as an category. number the much annualized lumpy. the guys into each help should we still frame year But next a us, But you maybe didn’t So I’m that basis, fall on thinking over revenue should thinking about

Gabe Nacht

amount that’s this with over customer is not to been the The should that years. And And to year a has away. where for the in a consistent best relatively but to a This wide are and is And looking period, that go why cloud that that had cloud, very that were lumpy. is us. images. what exactly that us is do is in cloud, Switch cloud the cold And of the get we saying, consumer-based an fourth be companies going the nine everything which these is portions in should of It right. us, cheaper revenue And we range low the cloud absolutely One unusual customers QX. their the density amount the running were well going been we’ve enabled and changed. is. for to these than positioned storage going can continue applications is it but it workloads doing. migrate is quarter, happened really compute, to one for workload cloud this that’s go. it’s very not and workload to expand aware You’re of happens for is large But be technology unusual that are is applications. They that nine aren’t to

low them. number time. have run software years happens that we better charges maintain file are Because focused we to there their and talked most back that do as came is run a They’re we with specific the time storage other migrations, these have too and workloads ago, density, for large company out don’t The expensive a a a cheaply consumer then went application to was critical to it were Switch. the that strategy publicly is applications. – to And in several cloud heavy We’ve But cloud. also high us. and in more that guide density as far to from continuing

So specific is give not This there’s I a can number an you. number for is us. unusual It lumpy.

our their growth with time existing expansion. customers all yet adjusting XX% customer from and have is coming the We our of deployments us

Jon Petersen

you. color. Okay. I Thank appreciate that

Thomas Morton

drives technology. of amount overall We’ve digital we evolution evolution ever drives, industry. good years. static time, No, that another and in and with people quick have real architecture to the drives is in for guys, of have tape that that Every it is one an over advancements technology people issue the cloud disc note there’s is technology, colocation and seen go to enhances from don’t just any the

So we in welcomed advancements the we cloud continued technology. welcomed and

Operator

from comes ahead. William Blair. of James go question next The Please Breen

James Breen

Thanks impact? for more Can taking the $XX said that the EBITDA and the just quarter, out revenue. little said comes impact that so give assuming with question. of you revenue information sort in a associated us the that day then first what’s one, on you So million

Thomas Morton

that you want do Gabe, respond Yes. to to one?

Gabe Nacht

in QX migration one them Both in customers these other of year. this made the of in the of one of And beginning migrated October, their December.

impact So the guidance. in XXXX full already is our

year. EBITDA, revenue and So the different than These generally we starts XX% are any January other. the no are workloads carries margin. throughout recurring The it piece in running around

So use that’s the number that for impact. would our EBITDA I

James Breen

of And growth quarterly so we’ll a see sort there a your step grow normal minus million, from then down with… on from sequential basis $XX

Gabe Nacht

number. annualized $XX year. million the for the million is $XX Well,

XX it’s a over the million So months. basically a $X.X month

James Breen

That’s what asking. I was

very Thank perfect. you Okay, much.

Operator

The Frank of Please comes Louthan question ahead. next Raymond from go James.

Frank Louthan

Great.

from your knew guys? this but just call? tune appreciate then missed if helped didn’t XXXX that So guidance I you it you maybe of yet, to in I impacting either of back and the Or did, the cancellation churn, there these out coming there to the was was having anything the was quarter, of impact. out any EBITDA XX% ahead you fees if that have time can something call Why to you out that’s it. one XX% curious you this didn’t anything that or of growth. with And I’m that

Gabe Nacht

Frank, they’ve on that to to month for discussing moved month to been quite month, on were their strategy to these to timing, contracts customers take time that. the had and regard month Sure. be. of With going both what was I’ll some

why didn’t the why that the did that which fourth was? part didn’t do to in really quarter. your we information have It we That’s it it happened they question trigger specific So going know is these was But the was customers. it them did. to They the really when possibility, we migration. were make pull guidance we a their just And from range timing out. to up both a of second call created and we Frank,

Frank Louthan

would of the guys in one-time so there Well, even came ahead maybe curious, little these you help with bit cancellation that And revenue I was anything fees the of at any I mean, lost just kind that of helped with least or EBITDA. associated our leaving quarter?

Gabe Nacht

No, were absolutely ago we normalize not. to able the was this incurred that The driven EBITDA QX primarily year fees we additional professional quarter, in performance year. by services In professional QX services fees.

has or costs remediated, termination probably carrying that we us our helped the released, just you there Frank, were other our weren’t anything – fees your associated in material XX-K in previously specifically that financial audit yet seen But saw that with their service haven’t fees. statements been question, professional we any departure. so reduce in weakness a and You

Frank Louthan

And your be more that a great. I data think Can quantify, off. you likelihood see exposure currently you in that why the to evolve. things workloads quantify cloud of centers then are can any appreciate should Okay, have you in can you turning and

of So can that for an idea be making of have revenue feature risk customers these at what we percentage decisions? your might

Thomas Morton

We customers migration centers. major that XXXX have any expecting currently from our a away we’re data don’t in

inside as can continue, migration a currently of said, have we we than we of in our more centers. a deploy data We

So we the current as strong issues have we as customers it and no ever stability of inflow hope with be. is would would customer

Frank Louthan

much. Thank you very

Operator

go next of Michael Please ahead. Rollins question from The comes Citi.

Michael Rollins

next about you XX the done made XX, to over about should that Thanks. about, do constrained the of you all the what the But you think timeframe. and ramp – think could just a in additional the the as curious and go XXXX, is the for in the months potentially believe context the to can comment during get curious, the thanks deck. we good if to XX inventory afternoon. in disclosures constrained terms back And inventory bookings I’m being had until remind of of presentation development I position. that me of Thanks Was you you investors how quantum how how they should

Thomas Morton

talk numbers, that ramp have space, What two XXXX. revenue here, large record we though, it’s the Yes. to confluence sales I’ll On of number great and let a in we be up, even absolutely setting you’re of It’s but and generating which hand, it one have factors. are what allocates question. won’t the right. the Gabe that Mike,

through hand, the be we COVID or alleviated creates construction which facilities. we seven more and in demand, six have the of term On supply caused and a the as This issuance zoning of we turns other know facilities open delays new approvals delays will short permits, months. the XXXX roll which in by

of enterprise So to while dates, data to new on having want But outlook any space is numbers? particular technology out a whole. due really talk class COVID a completion our effect you we’ve Gabe, bullish one-time as the been the true pushing never center do more about

Gabe Nacht

I on the and last X-megawatt and a as mentioned I the we’ve had you numbers higher transactions half, think the the see I Yes, in last year XX quarter. for question, think fourth or

of the the So part starting in the recognize nine And online come years as years, with And over the deployments are period first not contract, don’t the coming XX we these ramp of a one ramps months. the REITs, we the over we’re then over REIT, XXXX is large sold. cabinets until some biggest straight and aren’t it the revenue of cases QX and case, three in unlike line but rent the built. because the space ramp

is all are ramp. online that backlog, isn’t pulled can’t revenue it will that sell forward all we you could at today, million we we annualized If is able that our is that slide committed space aside. sell that in if of the setting we of now were to $XX it as straight That to contract, in backlog So be nevertheless, provide that space, the cabinets investor But look essentially, deck, the come of the space over sitting backlog. otherwise. and line out revenue revenue incremental those

Michael Rollins

So inclusive certain or commitments? $XX the that is a period it commitments is that all of those just million you’re of over measuring

Thomas Morton

our No, inclusive that’s of full that’s backlog. –

Michael Rollins

Thank you.

Gabe Nacht

you. Thank

Operator

Colby ahead. Synesael question next comes Please The go from Cowen. of

Colby Synesael

Great. Thank if you. may. Two, I

that’s on bigger sign as on I’m First, more had you that these impact just pricing. deals, curious of pricing, what

that of deals, of to these And we Microsoft of deal focus versus define Google and example, to discount these hyperscalers I secondly, of XX internet how on selling bigger those large maybe enterprise and get were lot maybe Would of there’s simply I a for world, a you. this sense impact XXX bigger enterprises. about Facebook talked But you just compare, So the is of type world. is Apple enterprise example, And just deals. of based those as versus on on if were trying KW customers then you know not just still of deals like the know for a a what also customers? with cloud if but to Thank the think were companies you this large XX companies, hyperscalers.

Thomas Morton

to slightly the the single may EBITDA are the customer, in size pricing as size, what have to we as when power. customer, accommodate a margins deals, result, even some adjustment scale be the compromised. is And achieve efficiencies some with a And have these customer. of pricing, Sure. of when and also to we is efficiencies not large and we deliver those a adjusted share space though we We in there terms of larger amount we but of order efficiencies of course, pricing the

to margins we’re same. So the keep able our EBITDA

other sale the The sales that we’re the customers on and sell thing make telecommunication will we a to able those to do margins is additional and telecommunications customer. that that EBITDA revenues we to as to to the augment from generate augment margin further way

pricing large So on that’s deals.

would not and do – those broader the way spoke. your you change that we As XX that? enterprise if label customers or hyperscalers, category And included you we and believe you to check want I your configure question on that if would that of Gabe, me hyperscalers, second to

Gabe Nacht

of transactions enterprise. majority facilities. zones clarity for that did two large transactions our were the within we’ve announce We cloud within companies I major nodes said built vast Colby, facilities are And them our XX that and with those Yes. just signed. strategic

tend to equation would they customers current than So we about a we’re the not and of in business Even others, deploy different of you with way all. don’t And do and when I the Facebook talk Switch change that hyperscalers. is every those ours they’re think of when at cloud digital builds. They’re what that some other customer, space. infrastructure the doing as They’re all what do our wholesale building large Tier doing business far powered and for X Platinum we’re the – still facilities. we’re full the some with and install companies, taking shell, as not taking we of others not that

availability the to negotiated full be So nevertheless, they’re standpoint. from all but the still what same, transactions going priced aren’t a larger customers for treat of offers. the price we obviously Switch But

Colby Synesael

as Do if you it smaller it a design was Or customers? the customers those for is change same deployment? effectively would, bigger those for you your design

Gabe Nacht

same It’s exactly design. the

Colby Synesael

That’s you. Thank great.

Operator

of The Please comes ahead. Choe JPMorgan. Richard from go next question

Richard Choe

said, it seems Given near given the like the and end. that’s the the upfront that comments coming run you’ve backlog churn on is rate

through how the a So X%. give we guidance third for should year? pretty us should rate in higher on given think a quarter. is that about you looking exit little we and revenue color be around the run Can assume I fourth the

Gabe Nacht

of that building in And link of fiber revenue was that’s that one the for of big also facility. million events half non-recurring last of a hit clouds that $X.X links one, year. we think the Yes, Number our about. have and first cloud to that one But three conjunction the the with reasons. two in right I exactly have churn two talked campuses we’ve we fiber campus

percentage a almost our that’s so of And revenues.

the are items of time. for going quite revenue, first we’ve about And fiber the talked half year. the to recurring impact two those So not some

highest we full the deals in in we ramps there should that at January of exit rate QX should we quarter. exit the be the these growth and and But as up on fourth the – that. So are that ramps we all picking the the year, as starting that visibility steam for exit be are year, other of in We’ll some started. starting

Richard Choe

a haven’t the all done I could Great. it rate? be given to say that And put but the growth just double-digit math, something. is fair

Gabe Nacht

Yes.

at it will We’re on digits, guys year. exit as that, the high for the you but digits the math in X% double low can I think, do the we guiding to be midpoint year, single and the

Richard Choe

you. thank Great,

Operator

BMO Aryeh Klein from The comes ahead. of next Capital question Markets. Please go

Aryeh Klein

some are they a more elsewhere? context as around just the customers of to you. little happening bit lack deals can maybe look those Are on capacity, And extent, provide you if waiting there? Thank as just to you losing what’s

Thomas Morton

or that. due installations, where obtain to that larger any talked have equipment or great of script. year, it’s to COVID. are Customers possible. a closer losing because in deals a do inability you actually data not in physically or deals just deployments as are six-foot – down chipsets. concerns that we earnings we we’ve about question, health the is getting XXXX are in Aryeh. to the of centers They’re their bunch deployments to hard not It’s And each their the on slowing that new very of coming on a because there environment, And cabinet either we’re pushed That’s a those T-SCIF feel, in the But fact out than idea distance. try maintain

online. that for deployments coming So customers out for asked about are beyond. that data these a our there the and centers getting right number RFIs their that reasons time And XXXX pushing into are deployments are and actually we all are of RFPs

backlog like into, able be our there’s as a data up. we’ll feel open to that So we great tap centers

So we’re pretty bullish on the future.

this. expect in necessarily wouldn’t weaker You to bookings of XXXX be because

Aryeh Klein

space? that weaker. be to No, to expect your just filled ability on I And then bookings don’t is the what churn, back

Thomas Morton

– in without exited think backfilled the Aryeh, case these doubt. back of think a We one in space we’ll the be December. customers space, filled will But be we

it’s not is it lower density filled so And space. back and immediately

filled in back there’s sector. power the ultimately, right that with because available is much to only so of segment specific the needs that customers, it So be

Aryeh Klein

you. right. All Thank

Thomas Morton

Thank you, Aryeh.

Operator

The of Please go next Luebchow question Wells Fargo. ahead. comes from Eric

Eric Luebchow

Thanks question. for the taking

you efficiencies that will there post-COVID. continue So think I were obviously know some mentioned that costs on you

lot And a Thanks. this heavy been a haven’t some expansion the mentioned think all. online year to with you any had right of was kind us maybe drag, efficiencies margins wondering bring they margins. longer-term kind you’ve you as So year, margins CapEx a if been that it of you take the And forward, going and operational XX%, higher there’s help enabled can impacting is just you just for that of at little remind historically. deployments range of few

Thomas Morton

started will had No that a fact higher the mean talk we ended just numbers, – great with I actually with count that operational did we we amount XXXX in we example gained because the efficiencies the operational Gabe is of well, a we to it’s XXXX head tremendous and but one our operation. way than that just efficiency, that’s

expanded nobody ways though in even there expanded COVID So sometimes basically was of even it of doubt greatest the year, operate found our and are disruption. to we we pandemic flat more we and that times moment though the efficiently, revenue, was our for disruption. would a are deployments made advancements And the

we Gabe? entirely et COVID believe sustaining, that that such obtained they’re efficiencies operate during will why that be food we why being So integral incidental way to we that’s because our the savings, as versus a – business as lower costs, cetera.

Gabe Nacht

to of is our as get now some close as professional with more at just third better it. been is a And third company. it just year, head lower maturation we check annual and a And company, public is Thomas fewer able fees. as doing said, – our count keeping we’ve just it, at you we’re in And our better This our people. get public as

our signaled EBITDA to is was for the long-term target continue In past, a efficiencies. margin XXXX for had those we plan Our XX%. that

We now. forward. going and vast things we margin year, that clearly like that up some for majority normalization of at XX.X maintain expansion marketing We’re expect above of to ended we expect the travel while the costs, and

Eric Luebchow

Okay. Thanks.

Operator

Stifel. comes question Please next ahead. from The Erik Rasmussen go of

Erik Rasmussen

taking questions. for Thanks the Great.

Are to So activity, enterprise funnel, the just meaningful the IT coming looking new on decisions especially a larger pickup, address environment. with the maybe enterprise, enterprises logo demand how their are comment in on sales of comment on seeing the some maybe maybe year? you

Thomas Morton

is occupied have never an question. that data efficient may as their Erik. as that – data centers. deployment data current center want data acceleration data deployment It’s we leaving one-to-many to which XX% to center of multi-tenant the being that environment The move that or more to that for advantage space thing the legacy is you look the they they provides have that’s deployment terribly center or inside shrunk as what is is or colocation It’s enterprises been Switch has is provides. When only good some anything – And environment going But had that to seeing, into uploaded do own the take and and future great have really or a an legacy some not X trends move deploying of deploy it their than maybe happened you, far infrastructure. that better better It and Tier is deployment. a occupied, data Tier a current to a a it because growth. a XX% have what of efficient into actually data they’re that at be X better really your acceleration legacy than centers, is inside your thank It’s center people much environment deploy is been centers, center what room XX%, they’re to cloud. at their look data they’ve you’re you their

robustly. have ways facility. cloud at migration people So a rate. a money looking things centers continuing. Those seen data out seen We’ve we people of save COVID and coming see more into on, rate are more our With two driving their rapid we accelerated also for the number an leverage legacy customers of that at to

shifting environment the So XXXX in colocation we enterprise will for believe demand into increase a and beyond.

Gabe Nacht

color, give – been has as company in his done impacted COVID differently. has a little by And just mentioned you Thomas to remarks, every

company, had is that have large And ours as of of of has Some others that, us a their in the companies a they not manufacturer. you’re an business. quite casino them with customer large XXXX. rapidly in one have only semiconductor expanded increase if delays a expanding seen And been

doesn’t that Thomas million they’ve start XXXX with X until and and expand in As of annualized of $X that they’ve already mentioned, in QX megawatt incremental QX QX. us again, further contract revenue. another But another signed signed to

Erik Rasmussen

maybe we performance impacted compare maybe the And related just of then pull scenario actually circling in of on you timeline Great. COVID, you sort construction and at to by previously actually being of that maybe terms the of moment. And pull fixed can what back does to guidance That’s some helpful. better you you those how delays thinking a this sort in and delay? the your envisioned length in were or this projects where of get in

Thomas Morton

No.

the dollars we we Gabe is of it signed everything can and we amount and mentioned, have things type capital integrity cure in. As off. to concrete. process those the the and get takes quality steel But we to additional move timelines I maintaining of while day, we’re for can the of it aggressively spent and pull It construct. can doing to mean, timelines and move doing are at as as those we that facility a everything time of possible end certain and

Gabe Nacht

ramps our contracts in the about think customers. you’re from that’s and the we’ve signed I up is to One from everything that that and actually questions backlog, Erik, in talked showing commitments are our those asking two there. we’ve

feel their necessarily they they’re we’ve expect, minimum above going need to some So forward install, historically the in if to can accelerate that we’re set And But past, the as if and now going that up the it. is need and there, don’t think for willing that to total aside teams is them. minimum customers the in all we of deployments they sending already space would We to are installation control commit. customers hopeful their timelines. pull that that out timeline one their seen ready contract already to of they’re It’s sign committed think we’re they’re vaccines more comfortable their revenue them. the

we some are building next and have are but QX and from CapEx you fast guide permitting both did is we question in there. construction the year, second our The and is delays, building on we because for our demand see

We’re as in we Vegas. fast Las can as building

in We’re building as we as Reno. can fast

with that capital in Nevertheless, fast we as intensity can in XXs. Atlanta. building We’re the still as our even is

forward to positioned all. the I We we’re So very plan. we strain those of two minimum We it, some the of hopeful CapEx achievable think we’re is. asking question think it’s will what they that deployments, very don’t we but I control customers for going think think their what and pull are at their you’re well know not aspects a the our do. financials but It’s commit

Erik Rasmussen

Good Great. luck. the Thanks for clarification.

Thomas Morton

you. Thank

Operator

ahead. comes of Please The next Credit Suisse. from go Badri question Sami

Sami Badri

COVID-related chain, give get and customers supply on which are bit a those the chain? that us this Can to what’s markets? which is in fitting just color and get that entire where in. might for that more – trying the more to delays color you you me on are specific I’m pin on facilities be happening to the is restrictive to supply Thank on going going trying where the just in to

Thomas Morton

Clark the because Nevada were in mean, ATLANTA we ability and which and them of zoning. Nevada, to Vegas significantly Yes, cetera. that I as resulted much. resolutions, where in and variances and is just there those furloughed the And meetings slower But in they delays. – and as that of delays it’s facility. our meetings reduced weren’t the and a the a portion was as et amount County production of in off There committee approved were There in in substantial substantial pass much laid in as online, Reno well And some some or and not of mostly from built. a limited employees County chain. both were portion permits supply to in zoning delays came be permitting zoning many Nevada, for

has ameliorate the delay of really ourselves now we a but delays. and that was forward. are that our delay ameliorated impact everything thing roll government in that or us, been resulted delay our But significant was a to it for that impact, in caused that So removed power doing been the to, largest

Gabe Nacht

first building XX% coming that’s Las And And of our facility. still Vegas Sami, revenue. our the online Vegas Las is is plus

looking still facilities, we the that driver customers when expand that. Las of to at always are Vegas look so our within is And key

aside that think pushing fast as first, we’re ramps It’s I is is in as The we Reno well. can larger come have and Las are larger. early serve also online come set Vegas, that facility we in going and that scheduled in So facility online to having as but XXXX. to longer,

almost there. in sell Atlanta, the So still I while XX% into this the there. And point, has still rampant committed okay facility we’re the will be think is sector at first able customers availability to and

want. us availability, fit the So want sure Tetris the we bit just time to the for little a that and in the board have a into can make right they in way of customers they that that we it’s and slots

Sami Badri

Thank at of favor that do and your or and more, of installations for during color. this a way for question, little specific curve? it. to we got where Gabe, your point, more My bringing in ready any shift a and just that for at a I postponing absorb your until your you capacity, push customer come it, or type guys is – guys some about growth there go. where aggressive can your you that point that capacity a the guys just this you you’re you just decides fee that be there actually, backlog. good untapped is change that at with you’re mandate guys majority think Is things with capacity point now, whenever comes into deploy customers, to the or binding whenever during the or agreements segue that so actually you customer essentially that a mandate, on to more as come the going Got are dynamic unmonetized. a your the of the period reserved capacity come more to Is mentioned might requirement, make some capacity those is kind that where bigger bit capacity, could now installations customers customers of you deal but At new exist out online time will from is and flexible, you changing and potential next there for this get

Gabe Nacht

building building one to that we building because in broken in underground Vegas, a rather And already that’s in where next work next think sector all for already facilities of I ahead. Sami. happened, in of question, needed facilities has We’ve thought we’re two advance one great Reno. than we dynamic the Atlanta next two and Hi, be, the facilities in three the doing two buildings the

than thinks So megawatt, have that make transactions many past. we because want megawatt, X have we’re we X more these we space, in to X the expansion megawatt sure actually of ever

so and And our even a company, was deploying somebody XXX butter. retail XXX cabinets that colocation grown kW, we’ve a bread historically, or, up as

more large We’re seeing now. many transactions

space need available. that we so to have And

So at and reserve in a charge want a we’re cabinets. cases many actually that we reservation at and building clip larger do faster for they fees customers clip, to

So of these we able negotiated. larger are some in transactions them to that monetize are

Now and deploy in we that cabinets a a can just come it’s customer feasible. know X,XXX overnight, not

negotiation. So the time allow to of them over that’s ramp part and we just

Thomas Morton

will, consideration to got over of if And the the has into the of think there is – ramp I you course the the deployment. fit so idle space,

we and quarter. makes talk but another Gabe is transactions number that we large good that’s point, have this in about about which the logos consideration brought this So the of call, like, we we on talk

a transactions of And and a as that provide a us for large generate us they have, amount and significant nice really diversity those for margins are for customers bread of butter, have smaller are number great actually that great of to or revenue We company. revenue and us. a

Sami Badri

proving to open think North your at any it, then on has to don’t is, location to in guys fifth campus because works, North up up well, that that? least to guys I consider have And within come got think bare site a some given you thesis you to question the able I this thought Grand come and just Have up now of don’t Rapids can, formidably think my opens on Got you I call have up point, you Thank now fifth guys going are ability you. been guys surpassed America around, fifth one point final yet, or at do. right. it. with that’s a a no America. question, Atlanta This

Thomas Morton

appreciate other telecom time could at in may build locations. only and markets? campus, and acknowledgement again to moved successful after we And could can our have moved of on the we that sold the mentioned to new replicate And less center Campus. data we of centers Well, immediately all, being we’ve that out to eight we for deploying third we than that those extend second time now XX% first months. about, we questions Keep open your Atlanta shown lot The data We and I have massive in very locations of other got been a really we other markets,

need hybrid our class obviously enterprise So for there a is multi-tenant and facilities.

And absolutely so right. you’re

always ways as to for looking a are company. We expand

again, us of deployment a for that seen announcing You’ve as in And to we early we’ve there. are partnership on that the we and continue ways expand about edge expand a always ways talked company. the an have that started looking call. to We

we to primes as anything announced we when location, growth but this cycle And option. demand prime rolling. we keep new that customers want an will that other a time, consider enough demand We at we our put look that about at up haven’t are

Sami Badri

Great. Thank you.

Operator

Please The go of from ahead. Crossett comes next Berenberg. question Nate

Nate Crossett

month-to-month evening. mentioned I does and is back-filling this guidance that million, assume XXXX that your Hi, good on year, were contracts. question that those back-filled companies $XX on the A space you think

curious And many was so contracts month-to-month I are your like how of just that?

Gabe Nacht

Nate. thanks, Yes,

do guidance at are in or years, we rate. each run at looked of our into available March sales our other we us does that we our churn. space as add factor some new space do that then to add a indeed we include the new in Our that captains point, in, to starting that the we timeframe. just we annual including that And that. selling fact We our And rate our guides look lift backlog, in

available others our in number. cabinets Nate? part to those customers question and space is new And gets expecting these determined, will what growth be exiting growth. space that So achieve us That’s we specific sales. yet are where to second order allocated new we’re your is but X% whether of T-SCIFs the it’s to selling going the in of to And are be be or part

Nate Crossett

How on It’s month-to-month. many basis? of the existing in

Gabe Nacht

our are has XXXX, on done average of at They’re And years. contracts, look that locked so the majority in throughout I contracts. bookings if average think customers our vast to all five-year four of three of four three-year we’ve about years. the the Yes, average been you

otherwise. So any not stated, we as expecting material don’t to month-to-month other we’ve And migrations or contracts. other large cloud there have we’ve the

Nate Crossett

Okay. that guess could expect numbers was if when more quick on concrete do we give the I some wondering you product, just where to a also things edge stand, I can update initiative? maybe

Thomas Morton

Yes.

the latter there would CAC. So year’s year. announced deployment And revenue started expect open we’ll have this we to edge had in the do but sometime forecasts this not look XXXX. we any for we have in of we have first look with forecasting that half that some in the we And forecast, to

Nate Crossett

other of dialogue tenants tenants? asking or kind you’ve of the with what’s existing this FedEx Have Okay. product you had outside about started

Thomas Morton

Yes.

of in things to And of prospective this carriers, strong of that proximate tenants infrastructure telecommunications very enterprise connection latency. have as Things Internet interest and discussions to them the deployment. And low well facilities. servicing who had that and We indicated have customers number a locations those their the other with FedEx with providers third-party involve have include outside as want are

out take of and about with to of So how can requests we’re roll we’ve how number those working had going customers. a inside And they facilities. space we’re those

rate have we highest we get that once take So online. possible the as the facilities

Nate Crossett

Okay.

of where you difficult, the know the I can last I there a over Lastly, but… is of think might kind years, indication of out couple this at it’s end year? bit improved guess any be the that floats shake quite

Thomas Morton

that’s… Yes,

Gabe Nacht

Thomas partnership if exchange for you shares, this can to cutout, units partners so me, year. opportunity give We’ll this public is times the Gabe. hear our their X

throughout And increase how year. out expect up when went years, to it’s we And this look but just continue of the choose so over to under to XX% company if past it is where float the at entirely the we at to and they exchange, you out would three them shakes increased floated.

now We’re XX%. over

to – expectation, entirely get I can think if that you themselves. partners extrapolate really up but is an the you could it you to

Nate Crossett

Thank you. Okay.

Operator

The next ahead. question Please comes go from Barclays. Brendan Lynch of

Brendan Lynch

Great. Thanks my question. for taking

some strong quick had one, recently healthcare momentum the in you’ve vertical. Just one

any activities there’s if out. quarter booking wondering that the stood Just in fourth

Gabe Nacht

in had software automotive a the specific any companies see semiconductor bookings the have to bookings, – fourth to out healthcare from – It bookings were didn’t stood we have the quarter. fourth didn’t We you can other large, a quarter. that we In logistics that as large companies. software healthcare notable just in company

Brendan Lynch

breathe. That’s only you of lot my still a Great, very much. Thank question.

Thomas Morton

Perfect, thank you.

Operator

you session. attending question-and-answer today’s concluded. concludes you now and also for conference This may our disconnect. has The Thank now presentation

Switch (SWCH) 2 Mar 212020 Q4 Earnings call transcript