Equinix Reports Fourth-Quarter and Full-Year 2022 Results

Exceeds $7 Billion in Revenue with 80th Consecutive Quarter of Revenue Growth--the Longest Streak of Any S&P 500 Company

REDWOOD CITY, Calif., Feb. 15, 2023 /PRNewswire/ --

  • 2022 annual revenues increased 9% year-over-year on an as-reported basis and 11% on a normalized and constant currency basis to $7.3 billion
  • Delivered seventh consecutive quarter of record channel bookings, accounting for nearly 40% of total bookings and approximately 60% of new logos
  • Closed over 17,000 deals across more than 6,000 customers in 2022
  • 2023 financial outlook at or above company's previously disclosed long-term targets shared at the June 2021 Analyst Day
  • Increases quarterly cash dividend by 10% to $3.41 per share on its common stock due to strong operating performance

Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure companyTM, today reported results for the quarter and year ended December 31, 2022. Equinix uses certain non-GAAP financial measures, which are described further below and reconciled to the most comparable GAAP financial measures after the presentation of our GAAP financial statements. All per-share results are presented on a fully diluted basis. 

2022 Results Summary

  • Revenues
    • $7.263 billion, a 9% increase over the previous year on an as-reported basis or 11% on a normalized and constant currency basis
  • Operating Income
    • $1.201 billion, an 8% increase over the previous year, and an operating margin of 17%, largely due to strong operating performance offset in part by increased investments to support the expanded scale and reach of the business
  • Net Income and Net Income per Share attributable to Equinix
    • $705 million, a 41% increase over the previous year, primarily due to operating performance strength and loss on debt extinguishment in 2021; partially offset by higher income taxes
    • $7.67 per share, a 39% increase over the previous year
  • Adjusted EBITDA
    • $3.370 billion, a 46% adjusted EBITDA margin
    • Includes $20 million of integration costs
  • AFFO and AFFO per Share
    • $2.714 billion, an 11% increase over the previous year on both an as-reported and normalized and constant currency basis
    • $29.55 per share, a 9% increase over the previous year or a normalized and constant currency increase of 11%
    • Includes $20 million of integration costs

2023 Annual Guidance Summary

  • Revenues
    • $8.145 - $8.245 billion, a 12 - 14% increase over the previous year or a normalized and constant currency increase of 14 - 15%
  • Adjusted EBITDA
    • $3.615 - $3.695 billion, a 45% adjusted EBITDA margin after taking into consideration power price increases to revenues and corresponding power cost increases
    • Assumes $35 million of integration costs
  • AFFO and AFFO per Share
    • $2.883 - $2.963 billion, an increase of 6 - 9% over the previous year or a normalized and constant currency increase of 9 - 12%
    • $30.79 - $31.64 per share, an increase of 4 - 7% over the previous year or a normalized and constant currency increase of 8 - 10%. This guidance excludes any capital market activities the company may undertake in the future
    • Assumes $35 million of integration costs

Equinix does not provide forward-looking guidance for certain financial data, such as depreciation, amortization, accretion, stock-based compensation, net income (loss) from operations, cash generated from operating activities and cash used in investing activities, and as a result, is not able to provide a reconciliation of GAAP to non-GAAP financial measures for forward-looking data without unreasonable effort. The impact of such adjustments could be significant.

Equinix Quote
Charles Meyers, CEO and President, Equinix:

"With IDC forecasting digital technology spend to grow eight times faster than the broader economy in 2023,1 today's businesses are seeking the right infrastructure partner to support their specific digital transformation needs, especially in the current environment where operational efficiency and the need to create lasting business differentiation are strategic drivers. Our customers are validating the increasing demand for comprehensive solutions that offer 'the right cloud for them' with flexibility to place their workloads across multiple public clouds, private clouds and on-prem—and they are finding Equinix's global platform and interconnected ecosystems a unique environment to architect this customizable infrastructure."

Business Highlights

  • As Equinix continues to extend its comprehensive platform to offer businesses a rich mix of physical and virtual solutions to access its interconnected ecosystem, the company made progress on digital services initiatives in Q4 that included:
    • The November announcement with VMware of VMware Cloud on Equinix Metal®, which combines VMware-managed and supported cloud Infrastructure as a Service with Equinix's interconnected, global Bare Metal as a Service offering. The solution is aimed at offering customers a combination of on-premises security and control with high performance, data locality, and low overall total cost of ownership.
    • An outline for the extension of its entire digital services portfolio to seven new metros. This 2023 plan includes launching Equinix Metal in Dublin, Manchester, Mexico City, Miami and Milan, and bringing Network Edge to Atlanta, Manchester, Mexico City and Seoul.
  • Equinix further invested in the expansion of its global platform, which now encompasses more than 245 data centers across 71 metros in 32 countries:
    • The 49 major projects currently underway across 35 metros and 23 countries represent the largest new-build pipeline in company history.
    • In Q4, Equinix announced its first builds in Johannesburg, South Africa, and Johor, Malaysia. The new Johannesburg facility will augment Equinix's current African footprint in Nigeria, Ghana and Côte d'Ivoire by entering the largest and most digitally developed nation on the continent. The Johor expansion represents Equinix's entry into one of the most-requested markets in Asia-Pacific by global customers.
  • In Q4, Equinix advanced its environmental sustainability commitments by becoming the first colocation data center operator to commit to more efficient temperature and humidity standards that will enable the company to reduce its overall power use by increasing operating temperature ranges within its data centers. By "adjusting the thermostat" to optimize data center energy use, Equinix is leading the industry and is expected to enable thousands of customers to reduce the Scope 3 carbon emissions associated with their data center operations, as supply chain sustainability becomes an increasingly important part of the overall environmental initiatives of today's businesses.

 

__________________________________________

1 "IDC FutureScape: Worldwide Digital Business Strategies 2023 Predictions," Doc #CA49743822, October 2022.

Business Outlook

For the first quarter of 2023, Equinix expects revenues to range between $1.965 and $1.995 billion, an increase of 5 - 7% over the previous quarter, or a normalized and constant currency increase of 5 - 6%. This guidance includes power price increases in EMEA, and a negative foreign currency impact of $24 million when compared to the average FX rates in Q4 2022. Adjusted EBITDA is expected to range between $891 and $921 million, which includes a negative foreign currency impact of $9 million when compared to the average FX rates in Q4 2022, a step-down in repairs & maintenance costs incurred in the quarter, although offset in part by increased seasonal salary and benefit costs of $17 million attributed to the FICA reset. Adjusted EBITDA includes $6 million of integration costs related to acquisitions. Recurring capital expenditures are expected to range between $18 and $28 million.

For the full year of 2023, total revenues are expected to range between $8.145 and $8.245 billion, a 12 - 14% increase over the previous year on an as-reported basis, or a 14 - 15% increase on a normalized and constant currency basis, and includes a foreign currency benefit of $267 million when compared to the prior Equinix guidance FX rates. Excluding the impact of power price increases, this guidance represents a 9 - 10% increase on a normalized and constant currency basis. Adjusted EBITDA is expected to range between $3.615 and $3.695 billion, an adjusted EBITDA margin of 45%. This adjusted EBITDA includes approximately 290 basis points of cumulative negative margin impact due to inflated power rates across EMEA and APAC markets and a foreign currency benefit of $123 million when compared to the prior Equinix guidance FX rates.  For the year, the company expects to incur $35 million in integration costs related to acquisitions. AFFO is expected to range between $2.883 and $2.963 billion, a 6 - 9% increase over the previous year on an as-reported basis, or a 9 - 12% increase on a normalized and constant currency basis. This AFFO guidance includes $35 million in integration costs related to acquisitions. AFFO per share is expected to range between $30.79 and $31.64, a 4 - 7% increase over the previous year on an as-reported basis, or an 8 - 10% increase on a normalized and constant currency basis. This guidance excludes any capital market activities the company may undertake in the future. Non-recurring capital expenditures, including xScale®-related costs, are expected to range between $2.511 and $2.741 billion, and recurring capital expenditures are expected to range between $197 and $217 million. xScale-related on-balance sheet capital expenditures are expected to range between $131 and $181 million, which we anticipate will be reimbursed from both the current and future xScale JVs.

The U.S. dollar exchange rates used for 2023 guidance, taking into consideration the impact of our current foreign currency hedges, have been updated to $1.10 to the Euro, $1.23 to the Pound, S$1.34 to the U.S. dollar, ¥131 to the U.S. dollar and R$5.29 to the U.S. dollar. The Q4 2022 global revenue breakdown by currency for the Euro, British Pound, Singapore Dollar, Japanese Yen and Brazilian Real is 17%, 9%, 8%, 6% and 3%, respectively.

The adjusted EBITDA guidance is based on the revenue guidance less our expectations of cash cost of revenues and cash operating expenses. The AFFO guidance is based on the adjusted EBITDA guidance less our expectations of net interest expense, an installation revenue adjustment, a straight-line rent expense adjustment, a contract cost adjustment, amortization of deferred financing costs and debt discounts and premiums, income tax expense, an income tax expense adjustment, recurring capital expenditures, other income (expense), (gains) losses on disposition of real estate property, and adjustments for unconsolidated joint ventures' and non-controlling interests' share of these items.

Q4 2022 Results Conference Call and Replay Information

Equinix will discuss its quarterly results for the period ended December 31, 2022, along with its future outlook, in its quarterly conference call on Wednesday, February 15, 2023, at 5:30 p.m. ET (2:30 p.m. PT). A simultaneous live webcast of the call will be available on the company's Investor Relations website at www.equinix.com/investors. To hear the conference call live, please dial 1-517-308-9482 (domestic and international) and reference the passcode EQIX.

A replay of the call will be available one hour after the call through Wednesday, April 26, 2023, by dialing 1-888-293-8912 and referencing the passcode 2023. In addition, the webcast will be available at www.equinix.com/investors (no password required).

Investor Presentation and Supplemental Financial Information

Equinix has made available on its website a presentation designed to accompany the discussion of Equinix's results and future outlook, along with certain supplemental financial information and other data. Interested parties may access this information through the Equinix Investor Relations website at www.equinix.com/investors.

Additional Resources

About Equinix

Equinix (Nasdaq: EQIX) is the world's digital infrastructure company, enabling digital leaders to harness a trusted platform to bring together and interconnect the foundational infrastructure that powers their success. Equinix enables today's businesses to access all the right places, partners and possibilities they need to accelerate advantage. With Equinix, they can scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value.

Non-GAAP Financial Measures

Equinix provides all information required in accordance with generally accepted accounting principles ("GAAP"), but it believes that evaluating its ongoing operating results may be difficult if limited to reviewing only GAAP financial measures. Accordingly, Equinix uses non-GAAP financial measures to evaluate its operations.

Equinix provides normalized and constant currency growth rates, which are calculated to adjust for acquisitions, dispositions, integration costs, changes in accounting principles and foreign currency.

Equinix presents adjusted EBITDA, which is a non-GAAP financial measure. Adjusted EBITDA represents net income excluding income tax expense, interest income, interest expense, other income or expense, gain or loss on debt extinguishment, depreciation, amortization, accretion, stock-based compensation expense, restructuring charges, impairment charges, transaction costs and gain or loss on asset sales.

In presenting non-GAAP financial measures, such as adjusted EBITDA, cash cost of revenues, cash gross margins, cash operating expenses (also known as cash selling, general and administrative expenses or cash SG&A), adjusted EBITDA margins, free cash flow and adjusted free cash flow, Equinix excludes certain items that it believes are not good indicators of Equinix's current or future operating performance. These items are depreciation, amortization, accretion of asset retirement obligations and accrued restructuring charges, stock-based compensation, restructuring charges, impairment charges, transaction costs and gain or loss on asset sales. Equinix excludes these items in order for its lenders, investors and the industry analysts who review and report on Equinix to better evaluate Equinix's operating performance and cash spending levels relative to its industry sector and competitors.

Equinix excludes depreciation expense as these charges primarily relate to the initial construction costs of a data center, and do not reflect its current or future cash spending levels to support its business. Its data centers are long-lived assets, and have an economic life greater than 10 years. The construction costs of a data center do not recur with respect to such data center, although Equinix may incur initial construction costs in future periods with respect to additional data centers, and future capital expenditures remain minor relative to the initial investment. This is a trend it expects to continue. In addition, depreciation is also based on the estimated useful lives of the data centers. These estimates could vary from actual performance of the asset, are based on historic costs incurred to build out our data centers and are not indicative of current or expected future capital expenditures. Therefore, Equinix excludes depreciation from its operating results when evaluating its operations.

In addition, in presenting the non-GAAP financial measures, Equinix also excludes amortization expense related to acquired intangible assets. Amortization expense is significantly affected by the timing and magnitude of acquisitions, and these charges may vary in amount from period to period. We exclude amortization expense to facilitate a more meaningful evaluation of our current operating performance and comparisons to our prior periods. Equinix excludes accretion expense, both as it relates to its asset retirement obligations as well as its accrued restructuring charges, as these expenses represent costs which Equinix also believes are not meaningful in evaluating Equinix's current operations. Equinix excludes stock-based compensation expense, as it can vary significantly from period to period based on share price and the timing, size and nature of equity awards. As such, Equinix and many investors and analysts exclude stock-based compensation expense to compare its operating results with those of other companies. Equinix excludes restructuring charges from its non-GAAP financial measures. The restructuring charges relate to Equinix's decision to exit leases for excess space adjacent to several of its IBX® data centers, which it did not intend to build out, or its decision to reverse such restructuring charges. Equinix also excludes impairment charges generally related to certain long-lived assets. The impairment charges are related to expense recognized whenever events or changes in circumstances indicate that the carrying amount of assets are not recoverable. Equinix also excludes gain or loss on asset sales as it represents profit or loss that is not meaningful in evaluating the current or future operating performance. Finally, Equinix excludes transaction costs from its non-GAAP financial measures to allow more comparable comparisons of the financial results to the historical operations. The transaction costs relate to costs Equinix incurs in connection with business combinations and formation of joint ventures, including advisory, legal, accounting, valuation and other professional or consulting fees. Such charges generally are not relevant to assessing the long-term performance of Equinix. In addition, the frequency and amount of such charges vary significantly based on the size and timing of the transactions. Management believes items such as restructuring charges, impairment charges, transaction costs and gain or loss on asset sales are non-core transactions; however, these types of costs may occur in future periods.

Equinix also presents funds from operations ("FFO") and adjusted funds from operations ("AFFO"), both commonly used in the REIT industry, as supplemental performance measures. Additionally, Equinix presents AFFO per share, which is also commonly used in the REIT industry. AFFO per share offers investors and industry analysts a perspective of Equinix's underlying operating performance when compared to other REIT companies. FFO is calculated in accordance with the definition established by the National Association of Real Estate Investment Trusts ("NAREIT"). FFO represents net income or loss, excluding gain or loss from the disposition of real estate assets, depreciation and amortization on real estate assets and adjustments for unconsolidated joint ventures' and non-controlling interests' share of these items. AFFO represents FFO, excluding depreciation and amortization expense on non-real estate assets, accretion, stock-based compensation, stock-based charitable contributions, restructuring charges, impairment charges, transaction costs, an installation revenue adjustment, a straight-line rent expense adjustment, a contract cost adjustment, amortization of deferred financing costs and debt discounts and premiums, gain or loss on debt extinguishment, an income tax expense adjustment, recurring capital expenditures, net income or loss from discontinued operations, net of tax and adjustments from FFO to AFFO for unconsolidated joint ventures' and non-controlling interests' share of these items. Equinix excludes depreciation expense, amortization expense, accretion, stock-based compensation, restructuring charges, impairment charges and transaction costs for the same reasons that they are excluded from the other non-GAAP financial measures mentioned above.

Equinix includes an adjustment for revenues from installation fees, since installation fees are deferred and recognized ratably over the period of contract term, although the fees are generally paid in a lump sum upon installation. Equinix includes an adjustment for straight-line rent expense on its operating leases, since the total minimum lease payments are recognized ratably over the lease term, although the lease payments generally increase over the lease term. Equinix also includes an adjustment to contract costs incurred to obtain contracts, since contract costs are capitalized and amortized over the estimated period of benefit on a straight-line basis, although costs of obtaining contracts are generally incurred and paid during the period of obtaining the contracts. The adjustments for installation revenues, straight-line rent expense and contract costs are intended to isolate the cash activity included within the straight-lined or amortized results in the consolidated statement of operations. Equinix excludes the amortization of deferred financing costs and debt discounts and premiums as these expenses relate to the initial costs incurred in connection with its debt financings that have no current or future cash obligations. Equinix excludes gain or loss on debt extinguishment since it represents a cost that is not a good indicator of Equinix's current or future operating performance. Equinix includes an income tax expense adjustment, which represents the non-cash tax impact due to changes in valuation allowances and uncertain tax positions that do not relate to the current period's operations. Equinix excludes recurring capital expenditures, which represent expenditures to extend the useful life of its IBX and xScale data centers or other assets that are required to support current revenues. Equinix also excludes net income or loss from discontinued operations, net of tax, which represents results that are not a good indicator of our current or future operating performance.

Equinix presents constant currency results of operations, which is a non-GAAP financial measure and is not meant to be considered in isolation or as an alternative to GAAP results of operations. However, Equinix has presented this non-GAAP financial measure to provide investors with an additional tool to evaluate its operating results without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of Equinix's business performance. To present this information, Equinix's current and comparative prior period revenues and certain operating expenses from entities with functional currencies other than the U.S. dollar are converted into U.S. dollars at a consistent exchange rate for purposes of each result being compared.

Non-GAAP financial measures are not a substitute for financial information prepared in accordance with GAAP. Non-GAAP financial measures should not be considered in isolation, but should be considered together with the most directly comparable GAAP financial measures and the reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures. Equinix presents such non-GAAP financial measures to provide investors with an additional tool to evaluate its operating results in a manner that focuses on what management believes to be its core, ongoing business operations. Management believes that the inclusion of these non-GAAP financial measures provides consistency and comparability with past reports and provides a better understanding of the overall performance of the business and its ability to perform in subsequent periods. Equinix believes that if it did not provide such non-GAAP financial information, investors would not have all the necessary data to analyze Equinix effectively.

Investors should note that the non-GAAP financial measures used by Equinix may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as those of other companies. Investors should, therefore, exercise caution when comparing non-GAAP financial measures used by us to similarly titled non-GAAP financial measures of other companies. Equinix does not provide forward-looking guidance for certain financial data, such as depreciation, amortization, accretion, stock-based compensation, net income or loss from operations, cash generated from operating activities and cash used in investing activities, and as a result, is not able to provide a reconciliation of GAAP to non-GAAP financial measures for forward-looking data without unreasonable effort. The impact of such adjustments could be significant. Equinix intends to calculate the various non-GAAP financial measures in future periods consistent with how they were calculated for the periods presented within this press release.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, risks to our business and operating results related to the COVID-19 pandemic; the current inflationary environment; foreign currency exchange rate fluctuations; increased costs to procure power and the general volatility in the global energy market; the challenges of acquiring, operating and constructing IBX and xScale data centers and developing, deploying and delivering Equinix products and solutions; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenues from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; risks related to our taxation as a REIT and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent and upcoming Equinix quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.

 

EQUINIX, INC.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

Three Months Ended

Twelve Months Ended

December 31,
2022

September 30,
2022

December 31,
2021

December 31,
2022

December 31,
2021

Recurring revenues

$      1,773,380

$      1,748,132

$      1,603,474

$      6,871,287

$      6,220,485

Non-recurring revenues

97,465

92,527

102,904

391,818

415,052

Revenues

1,870,845

1,840,659

1,706,378

7,263,105

6,635,537

Cost of revenues

970,700

934,669

910,435

3,751,501

3,472,422

Gross profit

900,145

905,990

795,943

3,511,604

3,163,115

Operating expenses:

Sales and marketing

207,233

193,089

189,798

786,560

741,232

General and administrative

400,183

375,483

343,711

1,498,701

1,301,797

Transaction costs

10,529

2,007

9,405

21,839

22,769

(Gain) loss on asset sales

2,252

3,304

3,976

(10,845)

Total operating expenses

617,945

572,831

546,218

2,311,076

2,054,953

Income from operations

282,200

333,159

249,725

1,200,528

1,108,162

Interest and other income (expense):

Interest income

18,462

11,192

1,130

36,268

2,644

Interest expense

(94,200)

(91,346)

(80,227)

(356,337)

(336,082)

Other expense

(28,895)

(6,735)

(5,802)

(51,417)

(50,647)

Gain (loss) on debt extinguishment

143

75

214

327

(115,125)

Total interest and other, net

(104,490)

(86,814)

(84,685)

(371,159)

(499,210)

Income before income taxes

177,710

246,345

165,040

829,369

608,952

Income tax expense

(48,807)

(34,606)

(41,899)

(124,792)

(109,224)

Net income

128,903

211,739

123,141

704,577

499,728

Net (income) loss attributable to non-controlling interests

(140)

68

133

(232)

463

Net income attributable to Equinix

$         128,763

$         211,807

$         123,274

$         704,345

$         500,191

Net income per share attributable to Equinix:

Basic net income per share

$               1.39

$               2.30

$               1.37

$               7.69

$               5.57

Diluted net income per share

$               1.39

$               2.30

$               1.36

$               7.67

$               5.53

Shares used in computing basic net income per share

92,573

91,896

90,240

91,569

89,772

Shares used in computing diluted net income per share

92,752

92,135

90,752

91,828

90,409

 

EQUINIX, INC.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(in thousands)

(unaudited)

Three Months Ended

Twelve Months Ended

December 31,
2022

September 30,
2022

December 31,
2021

December 31,
2022

December 31,
2021

Net income

$       128,903

$       211,739

$       123,141

$       704,577

$       499,728

Other comprehensive income (loss), net of tax:

Foreign currency translation adjustment ("CTA") gain (loss)

796,716

(703,640)

(115,278)

(769,886)

(559,969)

Unrealized gain (loss) on cash flow hedges

(50,231)

6,120

8,514

40,543

60,562

Net investment hedge CTA gain (loss)

(379,960)

360,350

62,763

425,701

326,982

Net actuarial gain (loss) on defined benefit plans

(42)

(19)

16

(101)

57

Total other comprehensive income (loss), net of tax

366,483

(337,189)

(43,985)

(303,743)

(172,368)

Comprehensive income (loss), net of tax

495,386

(125,450)

79,156

400,834

327,360

Net (income) loss attributable to non-controlling interests

(140)

68

133

(232)

463

Other comprehensive (income) loss attributable to non-controlling interests

(12)

28

(5)

48

(15)

Comprehensive income (loss) attributable to Equinix

$       495,234

$     (125,354)

$         79,284

$       400,650

$       327,808

 

EQUINIX, INC.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

December 31, 2022

December 31, 2021

Assets

Cash and cash equivalents

$               1,906,421

$               1,536,358

Accounts receivable, net

855,380

681,809

Other current assets

459,138

462,739

Assets held for sale

84,316

276,195

Total current assets

3,305,255

2,957,101

Property, plant and equipment, net

16,649,534

15,445,775

Operating lease right-of-use assets

1,427,950

1,282,418

Goodwill

5,654,217

5,372,071

Intangible assets, net

1,897,649

1,935,267

Other assets

1,376,137

926,066

Total assets

$             30,310,742

$             27,918,698

Liabilities and Stockholders' Equity

Accounts payable and accrued expenses

$               1,004,800

$                  879,144

Accrued property, plant and equipment

281,347

187,334

Current portion of operating lease liabilities

139,538

144,029

Current portion of finance lease liabilities

151,420

147,841

Current portion of mortgage and loans payable

9,847

33,087

Other current liabilities

251,346

214,519

Total current liabilities

1,838,298

1,605,954

Operating lease liabilities, less current portion

1,272,812

1,107,180

Finance lease liabilities, less current portion

2,143,690

1,989,668

Mortgage and loans payable, less current portion

642,708

586,577

Senior notes, less current portion

12,109,539

10,984,144

Other liabilities

797,863

763,411

Total liabilities

18,804,910

17,036,934

Common stock

93

91

Additional paid-in capital

17,320,017

15,984,597

Treasury stock

(71,966)

(112,208)

Accumulated dividends

(7,317,570)

(6,165,140)

Accumulated other comprehensive loss

(1,389,446)

(1,085,751)

Retained earnings

2,964,838

2,260,493

Total Equinix stockholders' equity

11,505,966

10,882,082

Non-controlling interests

(134)

(318)

Total stockholders' equity

11,505,832

10,881,764

Total liabilities and stockholders' equity

$             30,310,742

$             27,918,698

Ending headcount by geographic region is as follows:

Americas headcount

5,493

5,056

EMEA headcount

3,936

3,611

Asia-Pacific headcount

2,668

2,277

Total headcount

12,097

10,944

 

EQUINIX, INC.

Summary of Debt Principal Outstanding

(in thousands)

(unaudited)

December 31, 2022

December 31, 2021

Finance lease liabilities

$                         2,295,110

$                          2,137,509

Term loans

618,028

549,343

Mortgage payable and other loans payable

34,527

70,321

Plus (minus): mortgage premium, debt discount and issuance costs, net

1,062

(1,276)

Total mortgage and loans payable principal

653,617

618,388

Senior notes

12,109,539

10,984,144

Plus: debt discount and issuance costs

117,351

117,986

Less: debt premium

Total senior notes principal

12,226,890

11,102,130

Total debt principal outstanding

$                       15,175,617

$                        13,858,027

 

EQUINIX, INC.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Three Months Ended

Twelve Months Ended

December 31,
2022

September 30,
2022

December 31,
2021

December 31,
2022

December 31,
2021

Cash flows from operating activities:

Net income

$       128,903

$       211,739

$       123,141

$       704,577

$       499,728

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, amortization and accretion

438,492

431,668

428,764

1,739,374

1,660,524

Stock-based compensation

107,519

101,830

96,379

403,983

363,774

Amortization of debt issuance costs and debt discounts and premiums

4,553

4,533

4,375

17,826

17,135

(Gain) loss on debt extinguishment

(143)

(75)

(214)

(327)

115,125

Loss (gain) on asset sales

2,252

3,304

3,976

(10,845)

Other items

44,880

10,536

6,089

67,298

34,499

Changes in operating assets and liabilities:

Accounts receivable

(56,209)

29,823

109,440

(153,415)

(1,873)

Income taxes, net

(17,701)

29,656

27,598

(7,827)

(16,602)

Accounts payable and accrued expenses

31,511

103,941

54,628

114,600

64,596

Operating lease right-of-use assets

36,171

38,684

37,862

149,094

140,590

Operating lease liabilities

(34,586)

(31,873)

(39,782)

(132,831)

(177,533)

Other assets and liabilities

76,799

(112,425)

40,521

56,854

(141,912)

Net cash provided by operating activities

760,189

820,289

892,105

2,963,182

2,547,206

Cash flows from investing activities:

Purchases, sales and maturities of investments, net

(35,222)

(22,398)

(30,394)

(122,569)

(103,476)

Business acquisitions, net of cash and restricted cash acquired

(80,342)

(964,010)

(158,498)

Real estate acquisitions

(208,377)

(6,568)

(6,988)

(248,276)

(201,837)

Purchases of other property, plant and equipment

(827,927)

(552,729)

(817,405)

(2,278,004)

(2,751,512)

Proceeds from asset sales

(1,509)

34,091

249,906

208,585

Net cash used in investing activities

(1,071,526)

(663,546)

(820,696)

(3,362,953)

(3,006,738)

Cash flows from financing activities:

Proceeds from employee equity awards

37,667

81,543

77,628

Payment of dividend distributions

(287,573)

(291,169)

(259,455)

(1,151,459)

(1,042,909)

Proceeds from public offering of common stock, net of offering costs

796,018

398,271

796,018

497,870

Proceeds from mortgage and loans payable

676,850

Proceeds from senior notes, net of debt discounts

1,193,688

3,878,662

Repayment of finance lease liabilities

(36,394)

(28,252)

(35,410)

(134,202)

(165,539)

Repayment of mortgage and loans payable

(1,714)

(25,195)

(10,584)

(587,941)

(717,010)

Repayment of senior notes

(1,990,650)

Debt extinguishment costs

(99,185)

Debt issuance costs

(17,731)

(25,102)

Net cash provided by (used in) financing activities

(325,681)

489,069

92,822

856,766

413,765

Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash

37,398

(39,063)

(6,335)

(98,201)

(30,474)

Net increase (decrease) in cash, cash equivalents and restricted cash

(599,620)

606,749

157,896

358,794

(76,241)

Cash, cash equivalents and restricted cash at beginning of period

2,507,868

1,901,119

1,391,558

1,549,454

1,625,695

Cash, cash equivalents and restricted cash at end of period

$    1,908,248

$    2,507,868

$    1,549,454

$    1,908,248

$    1,549,454

Supplemental cash flow information:

Cash paid for taxes

$         44,091

$         22,462

$         16,019

$       140,312

$       134,411

Cash paid for interest

$       128,511

$         91,406

$       110,282

$       430,217

$       426,439

Free cash flow (negative free cash flow)(1)

$     (276,115)

$       179,141

$       101,803

$     (277,202)

$     (356,056)

Adjusted free cash flow (2)

$        (67,738)

$       266,051

$       108,791

$       935,084

$            4,279

(1)

We define free cash flow (negative free cash flow) as net cash provided by operating activities plus net cash provided by (used in) investing activities (excluding the net purchases, sales and maturities of investments) as presented below:

Net cash provided by operating activities as presented above

$       760,189

$       820,289

$       892,105

$    2,963,182

$    2,547,206

Net cash used in investing activities as presented above

(1,071,526)

(663,546)

(820,696)

(3,362,953)

(3,006,738)

Purchases, sales and maturities of investments, net

35,222

22,398

30,394

122,569

103,476

Free cash flow (negative free cash flow)

$     (276,115)

$       179,141

$       101,803

$     (277,202)

$     (356,056)

(2)

We define adjusted free cash flow as free cash flow (negative free cash flow) as defined above, excluding any real estate and business acquisitions, net of cash and restricted cash acquired as presented below:

Free cash flow (negative free cash flow) as defined above

$     (276,115)

$       179,141

$       101,803

$     (277,202)

$     (356,056)

Less business acquisitions, net of cash and restricted cash acquired

80,342

964,010

158,498

Less real estate acquisitions

208,377

6,568

6,988

248,276

201,837

Adjusted free cash flow

$        (67,738)

$       266,051

$       108,791

$       935,084

$            4,279

 

EQUINIX, INC.

Non-GAAP Measures and Other Supplemental Data

(in thousands)

(unaudited)

Three Months Ended

Twelve Months Ended

December
31, 2022

September
30, 2022

December
31, 2021

December
31, 2022

December
31, 2021

Recurring revenues

$ 1,773,380

$ 1,748,132

$ 1,603,474

$ 6,871,287

$ 6,220,485

Non-recurring revenues

97,465

92,527

102,904

391,818

415,052

Revenues (1)

1,870,845

1,840,659

1,706,378

7,263,105

6,635,537

Cash cost of revenues (2)

642,176

610,827

577,991

2,436,074

2,197,496

Cash gross profit (3)

1,228,669

1,229,832

1,128,387

4,827,031

4,438,041

Cash operating expenses (4)(7):

Cash sales and marketing expenses (5)

140,697

120,467

121,637

506,609

464,084

Cash general and administrative

    expenses (6)

249,232

238,449

219,173

950,722

829,573

Total cash operating expenses (4)(7)

389,929

358,916

340,810

1,457,331

1,293,657

Adjusted EBITDA (8)

$    838,740

$    870,916

$    787,577

$ 3,369,700

$ 3,144,384

Cash gross margins (9)

66 %

67 %

66 %

66 %

67 %

Adjusted EBITDA

    margins (10)

45 %

47 %

46 %

46 %

47 %

Adjusted EBITDA flow-through rate (11)

(107) %

45 %

4 %

36 %

46 %

FFO (12)

$    406,945

$    488,396

$    406,880

$ 1,826,334

$ 1,572,997

AFFO (13) (14)

$    657,818

$    712,036

$    564,194

$ 2,713,878

$ 2,451,229

Basic FFO per share (15)

$           4.40

$           5.31

$           4.51

$         19.94

$         17.52

Diluted FFO per share (15)

$           4.39

$           5.30

$           4.48

$         19.89

$         17.40

Basic AFFO per share (15)

$           7.11

$           7.75

$           6.25

$         29.64

$         27.31

Diluted AFFO per share(15)

$           7.09

$           7.73

$           6.22

$         29.55

$         27.11

(1)

The geographic split of our revenues on a services basis is presented below:

Americas Revenues:

Colocation

$    568,240

$    555,352

$    512,424

$ 2,187,751

$ 2,002,253

Interconnection

197,337

190,283

177,661

756,214

678,677

Managed infrastructure

59,244

54,704

46,045

218,499

168,577

Other

4,885

5,127

5,184

20,727

12,430

Recurring revenues

829,706

805,466

741,314

3,183,191

2,861,937

Non-recurring revenues

42,065

40,695

40,801

166,026

159,814

Revenues

$    871,771

$    846,161

$    782,115

$ 3,349,217

$ 3,021,751

EMEA Revenues:

Colocation

$    450,480

$    445,733

$    410,457

$ 1,744,121

$ 1,597,830

Interconnection

66,710

66,703

66,821

268,398

259,538

Managed infrastructure

29,431

28,493

30,205

119,361

124,937

Other

23,882

23,105

5,259

75,449

19,626

Recurring revenues

570,503

564,034

512,742

2,207,329

2,001,931

Non-recurring revenues

31,208

27,778

40,601

135,875

153,285

Revenues

$    601,711

$    591,812

$    553,343

$ 2,343,204

$ 2,155,216

Asia-Pacific Revenues:

Colocation

$    291,480

$    295,008

$    268,908

$ 1,150,738

$ 1,042,131

Interconnection

61,572

61,264

58,418

243,664

223,287

Managed infrastructure

17,819

19,269

20,928

77,646

87,343

Other

2,300

3,091

1,164

8,719

3,856

Recurring revenues

373,171

378,632

349,418

1,480,767

1,356,617

Non-recurring revenues

24,192

24,054

21,502

89,917

101,953

Revenues

$    397,363

$    402,686

$    370,920

$ 1,570,684

$ 1,458,570

Worldwide Revenues:

Colocation

$ 1,310,200

$ 1,296,093

$ 1,191,789

$ 5,082,610

$ 4,642,214

Interconnection

325,619

318,250

302,900

1,268,276

1,161,502

Managed infrastructure

106,494

102,466

97,178

415,506

380,857

Other

31,067

31,323

11,607

104,895

35,912

Recurring revenues

1,773,380

1,748,132

1,603,474

6,871,287

6,220,485

Non-recurring revenues

97,465

92,527

102,904

391,818

415,052

Revenues

$ 1,870,845

$ 1,840,659

$ 1,706,378

$ 7,263,105

$ 6,635,537

(2)

We define cash cost of revenues as cost of revenues less depreciation, amortization, accretion and stock-based compensation as presented below:

Cost of revenues

$    970,700

$    934,669

$    910,435

$ 3,751,501

$ 3,472,422

Depreciation, amortization and accretion expense

(316,549)

(313,110)

(322,194)

(1,270,399)

(1,236,488)

Stock-based compensation expense

(11,975)

(10,732)

(10,250)

(45,028)

(38,438)

Cash cost of revenues

$    642,176

$    610,827

$    577,991

$ 2,436,074

$ 2,197,496

The geographic split of our cash cost of revenues is presented below:

Americas cash cost of revenues

$    263,374

$    247,976

$    244,245

$    994,389

$    911,556

EMEA cash cost of revenues

226,574

220,887

208,569

866,292

808,587

Asia-Pacific cash cost of revenues

152,228

141,964

125,177

575,393

477,353

Cash cost of revenues

$    642,176

$    610,827

$    577,991

$ 2,436,074

$ 2,197,496

(3)

We define cash gross profit as revenues less cash cost of revenues (as defined above).

(4)

We define cash operating expense as selling, general, and administrative expense less depreciation, amortization, and stock-based compensation. We also refer to cash operating expense as cash selling, general and administrative expense or "cash SG&A".

Selling, general, and administrative expense

$    607,416

$    568,572

$    533,509

$ 2,285,261

$ 2,043,029

Depreciation and amortization expense

(121,943)

(118,558)

(106,570)

(468,975)

(424,036)

Stock-based compensation expense

(95,544)

(91,098)

(86,129)

(358,955)

(325,336)

Cash operating expense

$    389,929

$    358,916

$    340,810

$ 1,457,331

$ 1,293,657

(5)

We define cash sales and marketing expense as sales and marketing expense less depreciation, amortization and stock-based compensation as presented below:

Sales and marketing expense

$    207,233

$    193,089

$    189,798

$    786,560

$    741,232

Depreciation and amortization expense

(49,604)

(50,115)

(48,064)

(197,157)

(198,004)

Stock-based compensation expense

(16,932)

(22,507)

(20,097)

(82,794)

(79,144)

Cash sales and marketing expense

$    140,697

$    120,467

$    121,637

$    506,609

$    464,084

(6)

We define cash general and administrative expense as general and administrative expense less depreciation, amortization and stock-based compensation as presented below:

General and administrative expense

$    400,183

$    375,483

$    343,711

$ 1,498,701

$ 1,301,797

Depreciation and amortization expense

(72,339)

(68,443)

(58,506)

(271,818)

(226,032)

Stock-based compensation expense

(78,612)

(68,591)

(66,032)

(276,161)

(246,192)

Cash general and administrative expense

$    249,232

$    238,449

$    219,173

$    950,722

$    829,573

(7)

The geographic split of our cash operating expense, or cash SG&A, as defined above, is presented below:

Americas cash SG&A

$    214,560

$    203,026

$    203,594

$    833,053

$    783,735

EMEA cash SG&A

104,648

87,639

85,083

367,410

313,296

Asia-Pacific cash SG&A

70,721

68,251

52,133

256,868

196,626

Cash SG&A

$    389,929

$    358,916

$    340,810

$ 1,457,331

$ 1,293,657

(8)

We define adjusted EBITDA as income from operations excluding depreciation, amortization, accretion, stock-based compensation, restructuring charges, impairment charges, transaction costs and gain or loss on asset sales as presented below:

Net income

$    128,903

$    211,739

$    123,141

$    704,577

$    499,728

Income tax expense

48,807

34,606

41,899

124,792

109,224

Interest income

(18,462)

(11,192)

(1,130)

(36,268)

(2,644)

Interest expense

94,200

91,346

80,227

356,337

336,082

Other expense

28,895

6,735

5,802

51,417

50,647

(Gain) loss on debt extinguishment

(143)

(75)

(214)

(327)

115,125

Depreciation, amortization and accretion expense

438,492

431,668

428,764

1,739,374

1,660,524

Stock-based compensation expense

107,519

101,830

96,379

403,983

363,774

Transaction costs

10,529

2,007

9,405

21,839

22,769

(Gain) loss on asset sales

2,252

3,304

3,976

(10,845)

Adjusted EBITDA

$    838,740

$    870,916

$    787,577

$ 3,369,700

$ 3,144,384

The geographic split of our adjusted EBITDA is presented below:

Americas net income (loss)

$   (67,580)

$       48,369

$       73,523

$         (584)

$ (189,187)

Americas income tax expense (benefit)

(33,279)

34,606

(65,413)

42,587

1,535

Americas interest income

(16,259)

(10,374)

(912)

(32,265)

(1,993)

Americas interest expense

83,363

80,681

70,973

316,934

298,376

Americas other expense (income)

104,539

(68,241)

(48,621)

(42,895)

(59,019)

Americas loss on debt extinguishment

39

198

115,668

Americas depreciation, amortization and accretion expense

237,919

234,788

221,814

932,892

866,039

Americas stock-based compensation expense

76,131

69,272

71,652

282,997

270,391

Americas transaction costs

9,003

3,241

6,372

17,950

17,328

Americas loss on asset sales

2,778

4,888

3,961

7,322

Americas adjusted EBITDA

$    393,837

$    395,159

$    334,276

$ 1,521,775

$ 1,326,460

EMEA net income

$    195,224

$       82,558

$       35,116

$    477,808

$    385,086

EMEA income tax expense

16,531

68,786

16,650

69,162

EMEA interest income

(1,251)

(487)

(100)

(2,530)

(166)

EMEA interest expense

2,675

2,219

1,059

5,698

4,891

EMEA other expense (income)

(77,880)

69,245

21,660

77,705

71,915

EMEA depreciation, amortization and accretion expense

116,097

112,065

116,813

459,098

458,754

EMEA stock-based compensation expense

18,840

19,174

15,312

73,294

57,578

EMEA transaction costs

253

(1,488)

2,629

2,016

4,280

EMEA gain on asset sales

(1,584)

(237)

(18,167)

EMEA adjusted EBITDA

$    270,489

$    283,286

$    259,691

$ 1,109,502

$ 1,033,333

Asia-Pacific net income

$         1,259

$       80,812

$       14,502

$    227,353

$    303,829

Asia-Pacific income tax expense

65,555

38,526

65,555

38,527

Asia-Pacific interest income

(952)

(331)

(118)

(1,473)

(485)

Asia-Pacific interest expense

8,162

8,446

8,195

33,705

32,815

Asia-Pacific other expense

2,236

5,731

32,763

16,607

37,751

Asia-Pacific gain on debt extinguishment

(143)

(114)

(214)

(525)

(543)

Asia-Pacific depreciation, amortization and accretion expense

84,476

84,815

90,137

347,384

335,731

Asia-Pacific stock-based compensation expense

12,548

13,384

9,415

47,692

35,805

Asia-Pacific transaction costs

1,273

254

404

1,873

1,161

Asia-Pacific (gain) loss on asset sales

(526)

252

Asia-Pacific adjusted EBITDA

$    174,414

$    192,471

$    193,610

$    738,423

$    784,591

(9)

We define cash gross margins as cash gross profit divided by revenues.

Our cash gross margins by geographic region is presented below:

Americas cash gross margins

70 %

71 %

69 %

70 %

70 %

EMEA cash gross margins

62 %

63 %

62 %

63 %

62 %

Asia-Pacific cash gross margins

62 %

65 %

66 %

63 %

67 %

(10)

We define adjusted EBITDA margins as adjusted EBITDA divided by revenues.

Americas adjusted EBITDA margins

45 %

47 %

43 %

45 %

44 %

EMEA adjusted EBITDA margins

45 %

48 %

47 %

47 %

48 %

Asia-Pacific adjusted EBITDA margins

44 %

48 %

52 %

47 %

54 %

(11)

We define adjusted EBITDA flow-through rate as incremental adjusted EBITDA growth divided by incremental revenue growth as follows:

Adjusted EBITDA - current period

$    838,740

$    870,916

$    787,577

$ 3,369,700

$ 3,144,384

Less adjusted EBITDA - prior period

(870,916)

(860,332)

(786,298)

(3,144,384)

(2,852,898)

Adjusted EBITDA growth

$   (32,176)

$       10,584

$         1,279

$    225,316

$    291,486

Revenues - current period

$ 1,870,845

$ 1,840,659

$ 1,706,378

$ 7,263,105

$ 6,635,537

Less revenues - prior period

(1,840,659)

(1,817,154)

(1,675,176)

(6,635,537)

(5,998,545)

Revenue growth

$       30,186

$       23,505

$       31,202

$    627,568

$    636,992

Adjusted EBITDA flow-through rate

(107) %

45 %

4 %

36 %

46 %

(12)

FFO is defined as net income or loss, excluding gain or loss from the disposition of real estate assets, depreciation and amortization on real estate assets and adjustments for unconsolidated joint ventures' and non-controlling interests' share of these items.

Net income

$    128,903

$    211,739

$    123,141

$    704,577

$    499,728

Net (income) loss attributable to non-controlling interests

(140)

68

133

(232)

463

Net income attributable to Equinix

128,763

211,807

123,274

704,345

500,191

Adjustments:

Real estate depreciation

274,625

271,920

277,031

1,104,787

1,073,148

(Gain) loss on disposition of real estate property

437

2,002

4,693

7,134

(6,439)

Adjustments for FFO from unconsolidated joint ventures

3,120

2,667

1,882

10,068

6,097

FFO attributable to common shareholders

$    406,945

$    488,396

$    406,880

$ 1,826,334

$ 1,572,997

(13)

AFFO is defined as FFO, excluding depreciation and amortization expense on non-real estate assets, accretion, stock-based compensation, stock-based charitable contributions, restructuring charges, impairment charges, transaction costs, an installation revenue adjustment, a straight-line rent expense adjustment, a contract cost adjustment, amortization of deferred financing costs and debt discounts and premiums, gain or loss on debt extinguishment, an income tax expense adjustment, net income or loss from discontinued operations, net of tax, recurring capital expenditures and adjustments from FFO to AFFO for unconsolidated joint ventures' and non-controlling interests' share of these items.

FFO attributable to common shareholders

$    406,945

$    488,396

$    406,880

$ 1,826,334

$ 1,572,997

Adjustments:

Installation revenue adjustment

6,975

9,959

5,767

17,745

27,928

Straight-line rent expense adjustment

1,585

6,811

(1,920)

16,263

9,677

Amortization of deferred financing costs and debt discounts and premiums

4,553

4,533

4,375

17,826

17,135

Contract cost adjustment

(17,380)

(12,678)

(19,753)

(52,888)

(63,064)

Stock-based compensation expense

107,519

101,830

96,379

403,983

363,774

Stock-based charitable contributions

34,974

49,013

Non-real estate depreciation expense

111,342

106,400

99,014

426,666

377,658

Amortization expense

51,438

51,873

50,056

204,755

205,484

Accretion expense

1,086

1,476

2,663

3,166

4,234

Recurring capital expenditures

(80,047)

(50,182)

(85,693)

(188,885)

(199,089)

(Gain) loss on debt extinguishment

(143)

(75)

(214)

(327)

115,125

Transaction costs

10,529

2,007

9,405

21,839

22,769

Impairment charges (1)

1,815

(465)

1,815

31,847

Income tax expense (benefit) adjustment (1)

19,806

(965)

(3,086)

(31,165)

(38,505)

Adjustments for AFFO from unconsolidated joint ventures

(1,364)

836

786

(2,262)

3,259

AFFO attributable to common shareholders

$    657,818

$    712,036

$    564,194

$ 2,713,878

$ 2,451,229

(1)  Impairment charges relate to the impairment of an indemnification asset resulting from the settlement of a pre-acquisition uncertain tax position, which was recorded as Other Income (Expense) on the Condensed Consolidated Statements of Operations. This impairment charge was offset by the recognition of tax benefits in the same amount, which was included within the Income tax expense adjustment line on the table above.

(14)

 Following is how we reconcile from adjusted EBITDA to AFFO:

Adjusted EBITDA

$    838,740

$    870,916

$    787,577

$ 3,369,700

$ 3,144,384

Adjustments:

Interest expense, net of interest income

(75,738)

(80,154)

(79,097)

(320,069)

(333,438)

Amortization of deferred financing costs and debt discounts and premiums

4,553

4,533

4,375

17,826

17,135

Income tax expense

(48,807)

(34,606)

(41,899)

(124,792)

(109,224)

Income tax expense (benefit) adjustment (1)

19,806

(965)

(3,086)

(31,165)

(38,505)

Straight-line rent expense adjustment

1,585

6,811

(1,920)

16,263

9,677

Stock-based charitable contributions

34,974

49,013

Contract cost adjustment

(17,380)

(12,678)

(19,753)

(52,888)

(63,064)

Installation revenue adjustment

6,975

9,959

5,767

17,745

27,928

Recurring capital expenditures

(80,047)

(50,182)

(85,693)

(188,885)

(199,089)

Other expense

(28,895)

(6,735)

(5,802)

(51,417)

(50,647)

(Gain) loss on disposition of real estate property

437

2,002

4,693

7,134

(6,439)

Adjustments for unconsolidated JVs' and non-controlling interests

1,615

3,572

2,801

7,574

9,819

Adjustments for impairment charges (1)

1,815

(465)

1,815

31,847

Adjustment for gain (loss) on sale of asset

(2,252)

(3,304)

(3,976)

10,845

AFFO attributable to common shareholders

$    657,818

$    712,036

$    564,194

$ 2,713,878

$ 2,451,229

(1)  Impairment charges relate to the impairment of an indemnification asset resulting from the settlement of a pre-acquisition uncertain tax position, which was recorded as Other Income (Expense) on the Condensed Consolidated Statements of Operations. This impairment charge was offset by the recognition of tax benefits in the same amount, which was included within the Income tax expense adjustment line on the table above.

(15)

The shares used in the computation of basic and diluted FFO and AFFO per share attributable to Equinix is presented below:

Shares used in computing basic net income per share, FFO per share and AFFO per share

92,573

91,896

90,240

91,569

89,772

Effect of dilutive securities:

Employee equity awards

179

239

512

259

637

Shares used in computing diluted net income per share, FFO per share and AFFO per share

92,752

92,135

90,752

91,828

90,409

Basic FFO per share

$           4.40

$           5.31

$           4.51

$         19.94

$         17.52

Diluted FFO per share

$           4.39

$           5.30

$           4.48

$         19.89

$         17.40

Basic AFFO per share

$           7.11

$           7.75

$           6.25

$         29.64

$         27.31

Diluted AFFO per share

$           7.09

$           7.73

$           6.22

$         29.55

$         27.11

 

Equinix.  (PRNewsFoto/Equinix) (PRNewsfoto/Equinix, Inc.)

 

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SOURCE Equinix, Inc.