- Earnings call transcript Q3 2022

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

Operator

Hello, everyone, and welcome to the Cyxtera Third Quarter 2022 Earnings Call. My name is Daisy, and I'll be coordinating your call today. [Operator Instructions] I would now like to hand the call over to your host, Kwang Edeker, Senior Director of Finance, to begin. Mr. Kwang, please go ahead.

Kwang Edeker

Daisy. you, Thank welcome call. and third XXXX quarter Good to conference earnings morning our On materials refer Investor will today's we call, to at Relations ir.cyxtera.com. available website our on

and Nelson We we'll remarks, the President today joined Q&A. up our by for are and After here open CEO; Carlos lines prepared Sagasta, CFO. Fonseca,

the to statements to uncertainties. begin, including future our statements like that earnings are to language earnings and and Slide remind today's forward-looking the risks of our subject we refer statements. could Before would to materials today's Please regarding expectations. you I X SEC contain factors statements, forward-looking of our results cause risk Safe discussion materials, All differ on forward-looking Harbor in our from our actual filings presentation, for major those that a

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

We to have our to information. With measures call I'll supplemental Nelson. financial in over included turn the reconciliations that, these the

Nelson Fonseca

morning, our for Thank you you, thank XXXX Good quarter everyone, call. third Kwang. and for us joining earnings

bookings. We sales approach have to annualized to best We XXth nearly another cloud-like of we our history. performance second quarter XX% of year-over-year more remained quarter, and data XX% products innovative with cover quarter channel our as our our QX services can for global so call, areas logo accounted bookings and in growing XXXX channel to representing doubling interconnected sequentially centers, sales our increasing and quarter delivering solid bookings sales quarter on value Evidence platform colocation, performance customers. result of Cyxtera of today's had the unique strong core be of unwavering bookings. This continue positive get of strong of consecutive X% channel a net and on started. on Demand the solid throughout momentum let's company new for sequentially. focus channel seen base customer another completed our is The of in and many robust our priorities. our the ahead company. lot core execute than diversified a was and this to expectations, highly our providing

customers business. we to that In continue ecosystem and continued platform, ecosystem to QX, help addition, quarter. and on grow from our a new led the global attract priority Digital Exchange has adoption Cyxtera, XX adding a new the of The in our strength solutions our in transform, logos XX% continues increase strategic to to is our at increase strength digital our of prior a innovative This focus rapidly platform. scale customers focus their the of

deeply enterprise-grade dedicated focus both infrastructure. This and history. provide performance quarter, providing intelligently-automated, and connected also Both Exchange the of closed will solutions combination digital and fabric of data our transformation Enterprise Digital network and Interconnection cloud patents and with the SmartCabs on new Digital operational say to on solutions, due Exchange colocation company two in we proud and customers our have the our security two to continued flexibility in and of deals received initiatives innovation our a supported Metal, largest cloud-like I center. deals with Bare financial am with we customers control,

or connectivity Connect applies organizations Service, provision via customer first Internet dynamically to and instantly The adjust through IP portal. self-service patent Cyxtera's which enables API to our

and our The hybrid revenue their momentum for network seen customers, results Cyxtera via continued only the strong our on-demand also second to offerings differentiated itself, to fabric the sales Cyxtera-delivered Digital services IT but in growth. partner-delivered ability existing can to customers self-manage various and create connections Exchange or other environments, the The services covers patent be new not marketplace. of interconnectivity,

$X.X by increased During revenue the quarter, total or million year-over-year. X.X%

scale global our the U.S. know, the of reported dollar our center you financials. of due footprint, weighs data to the on strengthening As

core X% XX% across of or of foreign The by total overall $XX.X pricing total remains revenue revenue. by or while board. nearly impact the environment increased million revenue exchange, Excluding $XX.X the increased strong revenue to year-over-year, million Interconnection year-over-year, grew X.X%

currency adjusted increased year-over-year EBITDA was indicators basis, grew in the an grew quarter nearly the Our platform XXX FX. and EBITDA and our our stabilized basis strong in negatively of transaction momentum quality X% occupancy saw a cabinet. per EBITDA market. points our Transaction revenue, the adjusted All in On revenue impacted we center Like transaction our these increase X.X% by year-over-year. year-over-year. adjusted highlight constant data

but utility discussed, previously in and in put the costs will rise, power yielding greater detail discuss is pass-through anticipated process the on costs to Carlos power intended continue we the call. later As place that we results.

and of of growth a despite strong adjusted are be go-to-market X%. transaction rising affirming and As result our volatility expectation performance continued our XXXX momentum QX EBITDA X% and for X% and with X% utility the and we costs, revenue to expect growth between to FX guidance

pass the would to briefly call few topics. address like I Before to Carlos, on additional I a

progress in year. Silicon continue contribution of and from QX we expect Valley our this First, our expansion make on to SFOX-B project

and our remain previously approval progress governance and of fostering objectives sustainable trust to ESG fully as businesses, fact sheet, information build social and committed We want the footprint, REIT provides In and our on released our continue our governance Board organization. initiatives announced we and which transparency. across conversion, make own customers we empower and on that minimizing we environmental communities And partners inaugural impact diverse third, environmental, matters. connected ESG our QX, to and to increasing to initiative. Second, and an we strong

call of centers committed implemented We the over platform reflect remain turn our current colocation. results global our and robust for are to this demand data well long-term positions that, Code approach our and Carlos. I to our of the our our quarter. cloud-like QX us confident to a that long-term With Conduct success Cyxtera trajectory We highly will achieve objectives. business partner In of interconnected supplier innovative also to summary, and

Carlos Sagasta

Thank delivered in results you, utility resilient to quarter trends our the rates you the business Good team strong the everyone, as rates half and growth, morning, of currency third earnings We The momentum, our key higher churn thank quarter revenue us and financial experiencing of industry, the through some demand believe XXXX once that Cyxtera's for in FX markets. constant including and with our healthy, well volatility. building solid remain second for call. we across our year. including of low challenging interest this the position move joining Nelson. strong positive us third along we're increasing costs, macroeconomic fundamentals mitigate again

the turn Slide to let's deeper little into financials X. a now, Going

revenue total and X.X% represented quarter operate. see $X.X installed demand million, customer XX% while the total Interconnection robust can the Growth to pricing power million, continued reflecting by markets QX increased increased of You million or $XXX.X year-over-year of XX% million in revenue base. to for $X.X further growth our $XXX.X year-over-year for revenue the by quarter revenue almost and was by or and X.X% we in With year-over-year. primarily driven grew that mind, incremental recurring demand

foreign of not increase cash X.X – level experience points was do As with XX, X.X% elevated core revenue point X.X%. is XX continue more reducing in points total for than year-over-year, QX. of core in our to U.S. have is third fluctuations the we just dollar volatility, you an currency see Remember, Slide and basis XX in stronger the respectively. can impact FX by translational. churn impact flow, on sequentially the basis quarter was a Average churn Year-to-date monthly an

across the strength churn expect given to of mission-critical low platform. our the and base of the levels deployments these continue of We customer diversified our nature

We are historical overwhelming large which around and customers. in our the line with portfolio. minimal to trends driven M&A majority certain also lend SMB predominantly motives market with to enterprises, exposure stability our consolidation by Churn have among customers an our of considered

supply very Lastly, SINX in demand better center constrain the larger our we positive in our Singapore of market, To from process this site, market. while moving in in we're to to customers serve continue data customers our across remains dynamics SINX. see the Singapore,

added basis X is to For without been is in while megawatts. have It SINX points churn QX. This X.X% it. XX reference, approximately would SINX XX megawatts,

on last that XX.X%. points XXX XX days of an occupancy QX closed Given our more expanded are the compared year-over-year, Nelson XXX the out quarter last year points, that basis occupancy increased basis or that the points shown mentioned, X.X% to XX, $XX.X not customer points in expand million. even by momentum additional we declined to point basis XXX basis in net Slide would reflected in Core occupancy to as bookings $XXX.X that deals when positive for numbers. year-over-year I revenue, increased Sequentially, when adjusted. million, but occupancy saw stabilized adjusted

primarily X.X% points, Transaction was of million Looking XX.X%, Transaction increased at $XX.X EBITDA points million. or a decrease year-over-year, year-over-year. adjusted power transaction margin adjusted basis by address will year-over-year attributable which higher On by approximately moments. currency adjusted of basis year-over-year, $X.X reflecting X.X% Slide I costs, gross increased in $X.X by a to margin million, a or costs. increased few the to constant EBITDA XXX power primarily XXX XX.X% EBITDA basis, declined XX,

to increased detailed million As or installations. MRR, primarily by due excluding XX, $X.X $XX.X FX, core net X.X% to Slide on million,

to as the to per year-over-year growth. price increases sequentially calculation cabinet through X% start increased and MRR ramps additive flow been X% Our and contracted have

on centers data negatively center impacted industry. revenue to year by in As has first been to industry The I is our in faced expected across mentioned the continue the the previously, increased the increase weigh we of data of power our cost been months with. power nine have of experienced cost costs the all has

our real pass carefully, is understand we is cost have costs, in a And power consider very because exercise, We does to customers. a which not to for pass-through power the recovery this the impact that flexibility create profitability we Cyxtera. for this contractual increases incremental but us, through activity

lag cost successfully a process the that established through our there for recovery have to customers, we an is increased XX-day of process. While XX% cost over approximate this passes

As in, costs percent year in utility that a at reminder, fiscal expected in came XXXX. XX%-plus be recovered recovered a not are to increase are the further that

Slide QX you of in was cost XX% domestic have a As can in approximately experienced XX% XX, our power increase deregulated total which on markets, see year-over-year.

to those increased year-over-year. XX% our international also is markets in more costs our have While power exposure markets limited,

generally deregulated international greater increases purchases. XX%, approximately On mitigated of which markets our associated the Overall, have our of helped maintenance some with in in of increased revenue line we the use as provided broader capital through QX, Maintenance higher up to revenue, as of dramatic forward is In expansion breakdown of industry. addressed the well CapEx approximately Year-to-date, year-over-year. Silicon markets, our we long-term around us have at XXX portion impacting utility particularly investments. the our XX, down has key activity some on X.X% X%. is CapEx guidance with center have offset Valley. of markets, back We data in a a of X.X% came costs CapEx risk of Slide basis

we continue due the to sales of Silicon from the meet to During file. expect Valley to SFOX-B to near-term demand remainder gross levels our reflected XXXX, of ongoing strong backlog and construction year-ago increase and the in CapEx significantly in currently

Now balance turning capital sheet on to and our update markets Slide for XX an activity.

with On position net We sequentially a points leverage declining and X.Xx. points QX lease-adjusted during to steady continue to our at basis, improve year-over-year XX leverage basis our held XX leverage basis financial X.Xx. a

to sheet. balance the Turning

was contractual cash debt end leases, billion, available equivalents and $XXX our Cyxtera liquidity but the cash had was including borrowings of million, cash under financial cash XX, revolver. of QX, net $X.XX September $XXX net equivalents our and our of and At million. debt, all of excluding As capital outstanding

Although debt. entirely rate floating structure our is current a

through the LIBOR floating the exposure rate our the well have of and in year. second managed debt have selection insulated We half our

closed component the important source million is and low-cost securitization capital. of three terms for a of all and facility facility years. a an and as quarter, committed During This very greater with PNC we liquidity our accounts flexibility pleased us $XX.X of with financing receivable strategy, new provides Bank, term the of with are we another it

was with transactions As our of in it three the years approximately cooling sale equipment we strategy, The to the equipment sale-leaseback million. proceeds and five rate QX, of from lengths and cash were power critical interest term relates successful completed weighted X.XX%. $XX average

underlying financing at more debt consummating cash familiarity than liquidity inception, who assets lending cost XXX enabled service of appetite is and XXX market with points data Our to continued the ratings, preserve center for equipment. a sale-leasebacks Cyxtera financed us equipment equipment and our lower capital due overall the was key the criticality our time that working were our flow. of space, as credit $XXX to lending delivery, to inputs companies and of ability basis to the of our were the similar foundational improve debt Equipment overall have million the community than to decision. we in strategy it Since element of

to term loan it and structure future refinancing relates we our maturing us XXXX. opportunities, we have As with runway ahead enough capital our believe of in

possible the evaluate model sense future. We all support continue in our most avenues the that to business plans and growth to make

As fundamentals for revenue, refer of as line XXXX Despite third your the our guidance results. the questions. support that, to transaction the solid and and volatile we'll Cyxtera of continue unpredictable markets, for continued the very today Nelson EBITDA you discuss quarter mentioned, we're believe macroeconomic to future. us our environment CapEx. performance pleased the business in we and strong please and joining to Operator, that all support industry for remains the open the With adjusted for thank an to capital continue

Operator

Instructions] your you. James. Please ahead. is is Frank open. [Operator question Raymond from go Thank first from Our Louthan line Frank,

Frank Louthan

you Can Great, as little you give can then missed that? you trend? is to you. color the addressed up new to that and Santa back a X, call, but the facility, Thank the update move on And the sort think what that Singapore? on of I status I when it. us you give thank the if Clara apologize Singapore in be you. you on you'll available particularly a status with into shifts some going space, us going And bit was in more bounce of a

Nelson Fonseca

Hi, for questions. Frank. Thanks the

there we're I that – sort facility, The quarter in customers. move, of we our without fourth expect so think do unique in larger our address customers how there SFOX-B into any was felt best that was a think did I my this would it because in trend. start doing have to wouldn't to I think, space we that move churn a of that comments, highlights that it I I we takeaway results to is where at to Singapore well that Singapore, which in quarter. the in an been It's situation real read increase that, contributing X.X%, had larger in the a briefly is X. with and

Frank Louthan

the gives everything looks a Thank right, All quick IRS then being from here? concerns any just REIT Or follow-up. conversion you from great. or you And delayed? a it's that go Anything the has on SEC like

Nelson Fonseca

We No, look, have don't process. we're working the concerns through moment. any at the

at in as so we're, And just as remarks, out I mentioned laid no it's my working process concerns through point. and this the

Frank Louthan

you All right, great. much. Thank very

Operator

you. Thank

from Our next open. Please ahead. is John question line is go from your Hodulik UBS. John,

John Hodulik

see and backdrop, XXXX? to you pressure how about XXX the next ability Great, margins said we the on on prices. throughout And raise and and recouping of given all talk margins cadence any a do to outside called look have number the – for have that that that months. obviously, dramatically cost. you out pricing last improved out into issues thanks quarter. XX competitors supply you you you year over the number your it that given constraints the has play year? of and environment expect this mean, said higher power the industry the we then should I points one. as guys gross expect in That's delay pricing information rest But on hit And about it for the thanks the you comments additional the I prices, basis into power in of the the those the – Can

that Just front be great. on anything would you're seeing Thanks.

Nelson Fonseca

on power. address I a Yes, to color now. us pass me environment pricing, think right pricing little for for Carlos solid is I'll the more it let and on the John, bit Hi, the then

it's think across solid the I industry.

a very in great advantage We have opportunity. inventory good which that platform, take puts us to a available across of our position

to seeing environment address we're a want the very So similar, if that? don't similar very I pricing you strong know Carlos, – across board.

Carlos Sagasta

Yes.

little prices see fall what's bit, happen going some a us across where allows depend energy the going QX, tends which with that But – to allow because summer I pricing so and in up. to linear, on pricing a going little is moderation financial don't from we keep up to they as bulk expect you're to so on some it's which tougher I – a expect stable. QX volatility think to do perspective. up the to some energy, to the extent ball is will a more would right? that's where I catch Typically, quarter obviously, we a going some QX would crystal of to be or John, quarters. think, down, I stabilization bit see of not have

see you Gross You're pressure and sequential up margin dollars, but cost, to better that I percentage. some on some gross to front, margin percentage. pressure on see feel catching might on the going gross so we're margin

John Hodulik

it. Thank Got you.

Operator

Thank you.

from Our Rollins next is Michael, go ahead. Michael Citigroup. Please question your is from line open.

Michael Rollins

Thanks and revenue on If a start the guidance. with I good morning. could focus

can growth impact? you're So midpoint performance range. the from year? those of potential the like is how getting year you the for Any then the currency guidance what for pass-throughs? from unpack X% full headwind use evolved at can numbers from the guidance, frame unchanged Thanks. XXXX, year midpoint the course that full benefits year-over-year help the energy the of the you over organic the has And to Like,

Nelson Fonseca

Mike. Hi,

revenue picture, So let address me, see from what guess, a I I the perspective. big

and takeaway from of think those some kind that numbers challenges overall the hitting is despite I seeing we're we're strong demand, the of revenue FX.

And strong lower and seeing momentum, so revenue growth. from churn, that bookings the into translates the we're perspective, the our

from fact to can of significantly the we strength and impacted from you midpoint where at if we are guidance our has FX speaks a the the account continue that revenue of the to so perspective. take that be that an into been revenue And fact perspective

we would you there I know think don't the slide if business there's can think currency constant on that's best that growth of a is this constant with and currency, stage. our have revenue I how add. been analysis put anything Carlos, I our in the of year-over-year X% performing how at indicator

Carlos Sagasta

that, And move year-over-year saw QX. no so market, Mike, X% constant basis. even QX, probably X% was what FX very what a I third say a currency in the on significant quarter, question the growth There's year-to-date would in we is had in than bigger in particularly

We sustain some a it's right. of say the get see would at moderation, top combination bigger core didn't And it's performing robust. power maintaining impact we're business And that in revenue increase very the the that pass-throughs is yet or market It's which guidance the us so at the higher number. really helping you're to expect performance better We level. a reason that is I of and we because having of that only business, change But line, demand, you're also right occupancy. not really feel why the we're that dynamics occupancy power number. guidance seeing that and is pass-throughs,

Michael Rollins

other then if question I one could. And just

utilization utilization what of how utilization would financial adjusting this type does plan? that quarter, be the that as the the at is arrived at that the the And to to looking you relative about, be level? original some in of the adjustments. the mentioned that plant very utilization end multi-year And would XX.X% where if curious, So sits, expectations level you when relate just at for exiting make if you deals quarter, I think, those you're how

Nelson Fonseca

Mike. Thanks,

how bit of about translates a revenue. into kind talk let's utilization So little

the immediately week which the works have couple of had mentioned and Carlos some have the sell in is – finished occupancy backlog. a quarter, becomes great, nature we that's automated they would of that before, once that days. last we It way we once That's we of if but occupancy, that keep a in the where the deals been is further why would just quarter couple strong, we it become in revenue. a So takes the But right, deal, mind it deal, once sell of the have way days it our increased doesn't closed systems. this we

increased we – of occupancy go books waterfall. so have gets not standard on from revenue books all to and that's yet it our that that until is the on And the coming deployed doesn't in

is from number level, we wanted occupancy, continue from The point is pressured think said and revenue you goal. previously And So view is with XX% and costs I We power right towards I to we've – way on pressured. that think to that we're is to track expectations the financial that plan that's when on EBITDA only original FX right? from work the what one. that pressure it performance get are on and obviously

EBITDA to what feel there? So when are anything occupancy at you But you a what from we about that we rates, we if that about long-term see and where a the on – back add somewhat. performance. that we thought look you we step impacting take launched good were and the Carlos, want company current vision

Carlos Sagasta

and No. without say that say before, so things macro but I'd I would speak, that that we're versus original And to plan the FX of driving down. as said are we ahead environment. are contemplating slightly power plan, the

the balance, as in with as few and going we going probably well thought. not on things a we're So better a things few target

Michael Rollins

Thank you.

Operator

you. Thank

from is go Jonathan, line Our next from Markets. question open. ahead. Jonathan is Capital Please RBC Atkin your

Jonathan Atkin

options then the talk fund little and projects that seeing financing priorities you based propose to on a customers? next for you around year? some given was capital I projects how the underway, liquidity? on secondly, from could you of takes would current obligations based your anticipate puts wondering and that different Thanks. about you're just And CapEx, debt – your bit maybe types if demand of pursuing Thanks. What

Nelson Fonseca

color. to additional So for John, some it I'll start, from let me and pass on – Carlos additional

day our since markets. consistent focused expansion pretty on is key one, really been those we've As

and interested great to expand. Valley, expanding for talked because up great that SFOX-B. would London In in to seeing look we're opportunities we've market continue We're we're SFOX-B, we're we very so that performance Silicon there. in doing about finishing in So, and with Chicago also markets

changed. way of always point from but a those priorities to that perspective think possible opportunities of we projects know makes always no chime to in can would available capital se per the in, sense at best We're perspective, fund a From looking have rush for in markets, also lot those I that expand. an still expansion out not so those expand inventory to in key and I we're have So have the there's that you way there? one most the to for individual we're at best want business. for don't that Carlos time. if I add to the any us anything looking Carlos,

Carlos Sagasta

Yes. the say those intend that Maybe in we which but would customers. I our obviously, expand, are to key we markets follow

And quite lot interest have hitting We've comes even partners for expand into at that hope, The proven the debts to of that some as to our we has would we XXXX. it the facility listen to thought power. so very in because markets opportunistic strategic and in as to in primary but full a relate effective our allow that to we us we using we showcased to for obviously, a would We've markets source a quarter, will options, Atlanta refinancing strong been we that to we market, how we like a which Toronto, find in window. put about and hasn't of funding of and cost-effective working consider think we do supportive need a probably But occupancy intelligence good sense CapEx debt I way. wanted bit do time. that And a financing to critical said we our found time. example, the mechanical, need little be really still bit been rates, that will right our it we in be that appropriate continue have. way When it an manage and of this but very it be were stable always the to electrical that market after terms that a address good to on we'll as to supportive so and be customers or a matures stack we

Jonathan Atkin

Thank you.

Operator

you. Thank

line Suisse. Our Badri is next Sami question is from go Please Credit ahead. from your Sami, open.

Sami Badri

is of of believe we the to thing where in cash is, are financial moving position statement thank so with Hi, just the the how effect the data the your my of question other hitting how I question. a of first expect you cost just price executed through, understand for people financial the the question, lot and of first just XQ in into also income base maybe on be XQ just at model. and can center to do for XXXX, think kind some one the much your My kind what topic much position, an lot a see understand XXXX you. perspective and trying statements? been will kind of pricing, how then end XXXX. increases increase investor model from has of cash a of price and you drivers being parts liquidity second and that power and to So of any has to expectation and already That's of first And seen my question the that's of has

Nelson Fonseca

Sami. Thank you,

there's right, mentioned, to of we've a pricing. as aspects So number

talk So the power about let's pass-through.

consistent customers. I our We're we days. XX in to we've going the of been cost increases way think to going power that, recover pass-through to but XX% it's take

price, or that, So going last market kind that by XX-day the costs days, will receive through window to be book. pricing have. they XX paying power pass views That's cost it. seeing cost what raise for what They're power a right? slide it's an don't is the we'll hard our increased one very prices kind the get to way is to of markets that evolve, is a that pass-through that the power power an that – know We've in, just from how recouping is we to for good We're days, experienced able increase right? XX base a there. because as environment of and we've a in over XX-day in also But there's we're isn't in increase that of power going that say aspect prices situation we next so perspective. ability what right so and the definition, to And cross that customer connects for power revenue It be. more on the

contracts three-year then the seeing customers, logos higher. our window, as hyperscale we a vast are our once in, of where motion of environment. kind period or of new for very those we're also a all logos It's stable includes pricing time, pricing do. on is long customers of renew in maybe So – Remember, that as longer-term a once those lot have or sales majority of renewal come we comes providers a our wholesale part right? because renewals unlike a And what new contract the only time,

we're And customers. pricing healthy a renew as environment seeing so we

So the the one we question for you it's pass-through a Sami's do address strong. is our only that environment But not want cash. the in don't if to on more lever, pricing power on right? price, That's customers. but lever of cost a Carlos, very know, general, item and overall recovery I is

Carlos Sagasta

to year sale I we $XX On any would activity, leaseback say around liquidity, end yes. million. without the and to current changes would expect

Sami Badri

I like plan, completion. are REIT merits track now you and main I give Is be the the right? perspective? targeting become at comparable into the in a other kind if see to for One more you one a fundraising you on maybe viable? to of future what you. guys just guess, the time kind Cyxtera? from the Got something it. I believe equity why timing then strategic, Is us Thank Could REIT, may. game almost as you're a REIT question, not-too-distant Is it conversion once other is once And converting it – of the for is the you move kind of that's companies? the for right right strategically something right financially of benefit that objectives a

Nelson Fonseca

Yes.

there's that we the and REIT So as working is through conversion not things being good of we more complete. I them, make across future. we to process REIT of look, deploy is in for we're a I those lot We're steps us mentioned, of REIT you of for we there? my help our our comparable no are are mentioned a strong think, capital, we could need that company. and So understanding that so think in need still going it's we REIT will that the and And both but we So reasons for have our It seeing a a feel And us fundraising that to for all to two the everywhere for is long-term, for being according company, capabilities. remarks demand that lack right? that the good peers. right? want to the first feel opportunities footprint exchange, anything ongoing, and right? more short-term good to us plan, Sami, that We're feel to main Carlos, where do. really digital the right, We that being that I about I done, think with there's for add the there's

Carlos Sagasta

No.

decision. the of tenets the are two those think I

Sami Badri

All Thank right, you. perfect.

Carlos Sagasta

I the not what equity market backdrop, just when before that's more very being comment in a that debt really to. made I referring that referring seen anything more the as supportive, volatility may. I talked I right? and but else, if unstable was than maybe the It's a market market was to Sami, we've about been I And

Sami Badri

for Got the clarification. it. Thank you

Operator

you. Thank

Elias go Our and question open. is ahead. next your Cowen is Michael, Please from Michael Company. from line

Michael Elias

A my I for if Great. few, Thanks questions. may. taking

dividend and the also then potential REIT could question, my moving relating to for purge forward, Thanks. there's for a conversion? as and any REIT conversion, just I provide then first was the a follow-up First, That's just after. have any that framework related potential we about wondering I E&P to magnitude you us if think

Carlos Sagasta

That's expect purge E&P don't on this part reached of the have any as conclusion And advisers, our pretty We one. that's because we easy to earnings an with process. solid start a we're Nelson? I'll so without that. that

Nelson Fonseca

of of the on Look, working the that conversion that is dividend we're on and Yes. timing work. part are finalizing position things REIT and those through part kind dividend our of amount,

we and provide front. And so as know process, that more complete as that more information we on we'll

Michael Elias

a just mean, the you've leasing quarters. about two cool. All just or broader environment. right, leasing follow-up, rather, the then demand seen talking And last strong I record

of seeing? weakness also, of the entering that and of you're of or you what part of as pipeline, that saw your how as quarter you any it Just we depth and incremental third breadth versus think the areas describe would pockets

Nelson Fonseca

a for pipeline. exchange very digital the Michael, consistent large seen for it's to I customers, success now we look, enterprisers. as a Honestly, any so impact obviously, the have we us question. pointed good remarks our been not have Yes, negative quarters. platform, It's of number in with and out my

as do more business, to grow to needs, we and global with in become ways their cost-efficient for look customers they way. efficient flexible a so As

the is a capability. provider very markets, dividends. I facilities want they is software every right? coming customers those we've get highly in developing not we so connected think made they customers to multiple facilities, get platform the meet need locations us, can in allow diverse top flexible and the our that They're all partners has rapid can to so environment XX all a market the on to and We what in very business investments they paying frankly, the have in

And so large change. and that good continue very it, for don't grow reason to to enterprises choice businesses to and their for any see we are a those scale I

coming to from In the continue to market going us fact, perspective. think I believe because I that it's is

the that the progress So We're we see with very in on don't weakness any making of we're any that pipeline. pleased front.

Michael Elias

squeeze Perfect. one in. I Thanks and if could more

help GAAP that I was Thanks. a the what if cash seeing you you're talked on spread basis? better into could wondering translate about and You just us environment. for pricing renewal

Carlos Sagasta

and do contracts of don't with we that don't mean, some for these don't cash have is guys GAAP the do see I wholesale, you basically that long-term because us hyperscale. and same, we the we

to us no be there. and So GAAP to the so tends same thing, there's for spread cash

about we positive to renewal do spreads would pricing seeing the growing If feel you what that? renewal. Nelson, you're asking of anything I we're of like spreads, a that to time at on what seeing we're add is trend say

Nelson Fonseca

that. – little Yes, bit I on a comment I it's tried to think,

and lot of part the all it Sami said, existing renewals that our them, asked we XX% environment pricing us was price customers that the I is bookings. the think pressures, of very go question, Michael. going time. a increases for customers our for are of So business, are difficult being very cognizant are our through are Look, We're healthy. That through right? because renewals

it's speak to renewals, us get so again, renewals So renewals, average time an And we we us, as types can't we the price, for other to to for I'll for as address remind the a right? industry, need have increasing are renewals go I three-year of but through – providers everyone, in good contract.

at to So every it think of have our ability as a or pricing and customer so, renews about third we that year the base time. address XX%, XX% also

customers environment And so we're and that with discussions we point. seeing is what when healthy a good at engage

Michael Elias

Thanks Great. for color. the

Operator

Thank Instructions] your Please is James from Our line is go ahead. William Mr. question open. Breen [Operator from next you. James, Blair.

James Breen

for Thanks taking question. the

in REIT, your sort could Just of from who customer terms with your taxable into your has of entity? talk And then terms preliminary months? at are to And space taking cash versus REIT about view in can the fit Thanks. of you what changed revenue several the flow customers over locations? any last multiple amount activity, the that and all of regard

Nelson Fonseca

customers, Look, all top in let the and is Let differentiators a that the of then that our big question. we're Carlos global address markets. fact have one I'll We're me scale. think company REIT talk a I the about not and provider we as XX regional

in our frankly, like And locations, only so just one continues them a London of New and for that's part a many when to need the of in in of for And that be – in we've locations of additional want that wanted key instead give Jersey, can even that given and if that us. workload go-to-market. customers we for a of core a our workload, frankly, aspect trend differentiation their location the they sudden or future, customers change portability them fact needs all continues to provide our multiple had be

drive the… strong continue I momentum for Carlos, don't something and if know, that continues good address in us that the want for sales will future. will to to be you So solid us

Carlos Sagasta

X% would less fully TRS business Yes. to on current than meaningful. [indiscernible] that revenues, really that, lines James, and expect not it's to represent I part We're going our of going only TRS not contract right? of be of to the into that couple very but entity, a we're put There's the

James Breen

Great, thanks.

Operator

Thank you.

and this concludes today's no I call. further you day, your now. questions, lovely a may lines hope have We so disconnect everyone has

Cyxtera (CYXTQ) 8 Nov 222022 Q3 Earnings call transcript