- Quarterly revenues increased 18% year-over-year to
$1.262 billion ; a 9% year-over-year increase on a normalized and constant currency basis - Key customer wins and expansions included China Mobile,
Lithia Motors andTencent - Customer deployments across multiple metros increased to 85% of total recurring revenue, demonstrating the value of the
Equinix global platform
Second Quarter 2018 Results Summary
- Revenues
$1.262 billion , a 4% increase over the previous quarter- Operating Income
$215 million - Adjusted EBITDA
$604 million , a 48% adjusted EBITDA margin- Includes
$10 million of integration costs for acquisitions - Net Income
$68 million - Includes
$30 million of acquisition costs and$19 million of loss on debt extinguishment costs primarily related to theInfomart acquisition - AFFO
$428 million , a 3% increase over the previous quarter- Includes
$10 million of integration costs for acquisitions
2018 Annual Guidance Summary
- Revenues
$5.037 - $5.077 billion , a 16% increase over the previous year; a normalized and constant currency increase of 9%, including$55 million of FX headwinds compared to prior guidance- Adjusted EBITDA
$2.379 - $2.419 billion or a 47% adjusted EBITDA margin, including$21 million of FX headwinds compared to prior guidance, or 48% excluding integration costs for acquisitions- Assumes
$49 million of integration costs for acquisitions - AFFO
$1.596 - $1.636 billion , a 12% increase over the previous year, including$4 million of FX headwinds compared to prior guidance- Assumes
$49 million of integration costs for acquisitions
Quote
"
Q2 Business Highlights
Equinix continued to expand its global platform in response to strong underlying demand. In addition to progress with the integration of acquired assets fromInfomart , Metronode andVerizon ,Equinix completed expansions in theAmsterdam ,Denver andLondon metros. With a utilization rate of 82% across the platform,Equinix has an active pipeline of 32 expansion projects currently underway, including a partnership with Omantel to enter the new market ofMuscat, Oman , with a new IBX data center opening next year that will serve as a regional interconnection hub between global business markets.Equinix completed the integration ofTerremark Federal Group (TFG) into Equinix Government Solutions, expanding the company's Federal industry expertise and adding key capabilities for Federal agencies and systems integrators. This integration included 33 newEquinix employees who bring a deep understanding of the Federal sector to act as trusted advisors for IT transformation initiatives. The diverse portfolio ofEquinix assets, including formerVerizon government campuses inMiami and Culpeper, enables support for sensitive government workloads in an optimal environment, based on security, cost and performance.- Interconnection revenue continued to outpace colocation revenue, reflecting the movement towards Interconnection Oriented Architecture® strategies and the rapid adoption of hybrid, multicloud as the preferred IT deployment model. Cross connects between customers increased to more than 288,000, and the Equinix Cloud Exchange FabricTM (ECX FabricTM) platform now serves more than 1,200 customers. This includes those deploying virtual connections through the new capabilities of ECX Fabric, which was extended in Q2 to
Australia andJapan with full rollout in theAsia-Pacific region targeted for Q3, and full inter-regional connectivity slated for delivery by year end. Equinix continued the growth of its indirect selling initiatives, with channel sales increasing to more than 20% of bookings for the quarter. This accounted for half of the new logos acquired in the quarter, driven by solid performance across all regions and channels, including alliance, reseller and referral partners.
Business Outlook
For the third quarter of 2018, the Company expects revenues to range between
For the full year of 2018, total revenues are expected to range between
The U.S. dollar exchange rates used for 2018 guidance, taking into consideration the impact of our current foreign currency hedges, have been updated to
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, gains (losses) on debt extinguishment, an income tax expense adjustment, recurring capital expenditures and adjustments for unconsolidated joint ventures' and non-controlling interests' share of these items.
Q2 2018 Results Conference Call and Replay Information
A replay of the call will be available one hour after the call, through
Investor Presentation and Supplemental Financial Information
Additional Resources
About
Non-GAAP Financial Measures
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,
In addition, in presenting the non-GAAP financial measures,
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.
Investors should note that the non-GAAP financial measures used by
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, the challenges of acquiring, operating and constructing IBX data centers and developing, deploying and delivering
EQUINIX, INC. |
|||||||||||||||||||
Condensed Consolidated Statements of Operations |
|||||||||||||||||||
(in thousands, except per share data) |
|||||||||||||||||||
(unaudited) |
|||||||||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||||||||
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
|||||||||||||||
Recurring revenues |
$ |
1,187,749 |
$ |
1,150,629 |
$ |
1,010,048 |
$ |
2,338,378 |
$ |
1,908,488 |
|||||||||
Non-recurring revenues |
74,194 |
65,248 |
56,373 |
139,442 |
107,458 |
||||||||||||||
Revenues |
1,261,943 |
1,215,877 |
1,066,421 |
2,477,820 |
2,015,946 |
||||||||||||||
Cost of revenues |
651,801 |
622,430 |
522,203 |
1,274,231 |
991,164 |
||||||||||||||
Gross profit |
610,142 |
593,447 |
544,218 |
1,203,589 |
1,024,782 |
||||||||||||||
Operating expenses: |
|||||||||||||||||||
Sales and marketing |
154,202 |
159,776 |
141,566 |
313,978 |
270,493 |
||||||||||||||
General and administrative |
210,489 |
203,157 |
191,355 |
413,646 |
372,754 |
||||||||||||||
Acquisition costs |
30,413 |
4,639 |
26,402 |
35,052 |
29,427 |
||||||||||||||
Total operating expenses |
395,104 |
367,572 |
359,323 |
762,676 |
672,674 |
||||||||||||||
Income from operations |
215,038 |
225,875 |
184,895 |
440,913 |
352,108 |
||||||||||||||
Interest and other income (expense): |
|||||||||||||||||||
Interest income |
3,958 |
4,610 |
4,437 |
8,568 |
7,529 |
||||||||||||||
Interest expense |
(134,673) |
(126,277) |
(119,042) |
(260,950) |
(230,726) |
||||||||||||||
Other income (expense) |
8,866 |
(3,064) |
1,284 |
5,802 |
1,621 |
||||||||||||||
Loss on debt extinguishment |
(19,215) |
(21,491) |
(16,444) |
(40,706) |
(19,947) |
||||||||||||||
Total interest and other, net |
(141,064) |
(146,222) |
(129,765) |
(287,286) |
(241,523) |
||||||||||||||
Income before income taxes |
73,974 |
79,653 |
55,130 |
153,627 |
110,585 |
||||||||||||||
Income tax expense |
(6,356) |
(16,759) |
(9,325) |
(23,115) |
(22,718) |
||||||||||||||
Net income |
$ |
67,618 |
$ |
62,894 |
$ |
45,805 |
$ |
130,512 |
$ |
87,867 |
|||||||||
Net income per share: |
|||||||||||||||||||
Basic net income per share |
$ |
0.85 |
$ |
0.79 |
$ |
0.59 |
$ |
1.64 |
$ |
1.17 |
|||||||||
Diluted net income per share |
$ |
0.85 |
$ |
0.79 |
$ |
0.58 |
$ |
1.64 |
$ |
1.16 |
|||||||||
Shares used in computing basic net income per share |
79,479 |
79,241 |
77,923 |
79,361 |
75,383 |
||||||||||||||
Shares used in computing diluted net income per share |
79,752 |
79,649 |
78,508 |
79,746 |
76,008 |
||||||||||||||
EQUINIX, INC. |
|||||||||||||||||||
Condensed Consolidated Statements of Comprehensive Income (Loss) |
|||||||||||||||||||
(in thousands) |
|||||||||||||||||||
(unaudited) |
|||||||||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||||||||
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
|||||||||||||||
Net income |
$ |
67,618 |
$ |
62,894 |
$ |
45,805 |
$ |
130,512 |
$ |
87,867 |
|||||||||
Other comprehensive income (loss), net of tax: |
|||||||||||||||||||
Foreign currency translation adjustment ("CTA") gain (loss) |
(421,233) |
145,851 |
200,983 |
(275,382) |
307,921 |
||||||||||||||
Net investment hedge CTA gain (loss) |
226,115 |
(72,635) |
(101,847) |
153,480 |
(130,398) |
||||||||||||||
Unrealized loss on available-for-sale securities |
— |
— |
(65) |
— |
(330) |
||||||||||||||
Unrealized gain (loss) on cash flow hedges |
35,280 |
(4,080) |
(27,671) |
31,200 |
(39,398) |
||||||||||||||
Net actuarial gain on defined benefit plans |
13 |
8 |
15 |
21 |
26 |
||||||||||||||
Total other comprehensive income (loss), net of tax |
(159,825) |
69,144 |
71,415 |
(90,681) |
137,821 |
||||||||||||||
Comprehensive income (loss), net of tax |
$ |
(92,207) |
$ |
132,038 |
$ |
117,220 |
$ |
39,831 |
$ |
225,688 |
EQUINIX, INC. |
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(in thousands) |
|||||||
(unaudited) |
|||||||
June 30, |
December 31, |
||||||
Assets |
|||||||
Cash and cash equivalents |
$ |
966,308 |
$ |
1,412,517 |
|||
Short-term investments |
18,199 |
28,271 |
|||||
Accounts receivable, net |
616,472 |
576,313 |
|||||
Other current assets |
249,846 |
232,027 |
|||||
Total current assets |
1,850,825 |
2,249,128 |
|||||
Long-term investments |
4,200 |
9,243 |
|||||
Property, plant and equipment, net |
10,378,915 |
9,394,602 |
|||||
Goodwill |
4,870,300 |
4,411,762 |
|||||
Intangible assets, net |
2,440,087 |
2,384,972 |
|||||
Other assets |
525,961 |
241,750 |
|||||
Total assets |
$ |
20,070,288 |
$ |
18,691,457 |
|||
Liabilities and Stockholders' Equity |
|||||||
Accounts payable and accrued expenses |
$ |
710,584 |
$ |
719,257 |
|||
Accrued property, plant and equipment |
269,409 |
220,367 |
|||||
Current portion of capital lease and other financing obligations |
85,263 |
78,705 |
|||||
Current portion of mortgage and loans payable |
75,224 |
64,491 |
|||||
Current portion of senior notes |
150,828 |
— |
|||||
Other current liabilities |
142,312 |
159,914 |
|||||
Total current liabilities |
1,433,620 |
1,242,734 |
|||||
Capital lease and other financing obligations, less current portion |
1,426,368 |
1,620,256 |
|||||
Mortgage and loans payable, less current portion |
1,317,940 |
1,393,118 |
|||||
Senior notes, less current portion |
8,334,383 |
6,923,849 |
|||||
Other liabilities |
633,450 |
661,710 |
|||||
Total liabilities |
13,145,761 |
11,841,667 |
|||||
Common stock |
80 |
79 |
|||||
Additional paid-in capital |
10,253,155 |
10,121,323 |
|||||
Treasury stock |
(145,632) |
(146,320) |
|||||
Accumulated dividends |
(2,960,183) |
(2,592,792) |
|||||
Accumulated other comprehensive loss |
(877,994) |
(785,189) |
|||||
Retained earnings |
655,101 |
252,689 |
|||||
Total stockholders' equity |
6,924,527 |
6,849,790 |
|||||
Total liabilities and stockholders' equity |
$ |
20,070,288 |
$ |
18,691,457 |
|||
Ending headcount by geographic region is as follows: |
|||||||
Americas headcount |
3,375 |
3,154 |
|||||
EMEA headcount |
2,661 |
2,560 |
|||||
Asia-Pacific headcount |
1,574 |
1,559 |
|||||
Total headcount |
7,610 |
7,273 |
EQUINIX, INC. |
|||||||
Summary of Debt Principal Outstanding |
|||||||
(in thousands) |
|||||||
(unaudited) |
|||||||
June 30, 2018 |
December 31, 2017 |
||||||
Capital lease and other financing obligations |
$ |
1,511,631 |
$ |
1,698,961 |
|||
Term loans |
1,345,349 |
1,406,686 |
|||||
Mortgage payable and other loans payable |
47,815 |
50,923 |
|||||
Plus: debt discount and issuance costs, net |
7,265 |
8,615 |
|||||
Total mortgage and loans payable principal |
1,400,429 |
1,466,224 |
|||||
Senior notes |
8,485,211 |
6,923,849 |
|||||
Plus: debt issuance costs |
82,297 |
78,151 |
|||||
Less: debt premium |
(7,158) |
— |
|||||
Total senior notes principal |
8,560,350 |
7,002,000 |
|||||
Total debt principal outstanding |
$ |
11,472,410 |
$ |
10,167,185 |
EQUINIX, INC. |
||||||||||||||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||||||||||||||
(in thousands) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||||||
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
||||||||||||||||
Cash flows from operating activities: |
||||||||||||||||||||
Net income |
$ |
67,618 |
$ |
62,894 |
$ |
45,805 |
$ |
130,512 |
$ |
87,867 |
||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||||||||||||||
Depreciation, amortization and accretion |
308,828 |
306,465 |
252,386 |
615,293 |
471,399 |
|||||||||||||||
Stock-based compensation |
49,725 |
42,536 |
45,625 |
92,261 |
83,948 |
|||||||||||||||
Amortization of debt issuance costs and debt discounts and premiums |
3,362 |
4,099 |
4,130 |
7,461 |
15,710 |
|||||||||||||||
Loss on debt extinguishment |
19,215 |
21,491 |
16,444 |
40,706 |
19,947 |
|||||||||||||||
Other items |
2,322 |
8,888 |
3,775 |
11,210 |
12,155 |
|||||||||||||||
Changes in operating assets and liabilities: |
||||||||||||||||||||
Accounts receivable |
32,834 |
(71,275) |
(112,236) |
(38,441) |
(151,900) |
|||||||||||||||
Income taxes, net |
(7,485) |
(15,381) |
(13,290) |
(22,866) |
(33,927) |
|||||||||||||||
Accounts payable and accrued expenses |
10,818 |
(35,143) |
81,585 |
(24,325) |
16,171 |
|||||||||||||||
Other assets and liabilities |
51,491 |
(23,667) |
(17,751) |
27,824 |
32,474 |
|||||||||||||||
Net cash provided by operating activities |
538,728 |
300,907 |
306,473 |
839,635 |
553,844 |
|||||||||||||||
Cash flows from investing activities: |
||||||||||||||||||||
Purchases, sales and maturities of investments, net |
13,240 |
(497) |
10,303 |
12,743 |
3,199 |
|||||||||||||||
Business acquisitions, net of cash and restricted cash acquired |
(830,993) |
— |
(3,593,613) |
(830,993) |
(3,629,654) |
|||||||||||||||
Purchases of real estate |
(27,082) |
(14,700) |
(6,841) |
(41,782) |
(48,580) |
|||||||||||||||
Purchases of other property, plant and equipment |
(520,239) |
(349,729) |
(348,572) |
(869,968) |
(625,814) |
|||||||||||||||
Proceeds from asset sales |
— |
— |
— |
— |
47,767 |
|||||||||||||||
Net cash used in investing activities |
(1,365,074) |
(364,926) |
(3,938,723) |
(1,730,000) |
(4,253,082) |
|||||||||||||||
Cash flows from financing activities: |
||||||||||||||||||||
Proceeds from employee equity awards |
13 |
25,847 |
45 |
25,860 |
20,119 |
|||||||||||||||
Payment of dividend distributions |
(181,760) |
(186,999) |
(156,290) |
(368,759) |
(304,373) |
|||||||||||||||
Proceeds from public offering of common stock, net of offering costs |
7,622 |
— |
83 |
7,622 |
2,126,341 |
|||||||||||||||
Proceeds from loans payable |
— |
— |
— |
— |
1,059,800 |
|||||||||||||||
Proceeds from senior notes |
— |
929,850 |
— |
929,850 |
1,250,000 |
|||||||||||||||
Repayment of capital lease and other financing obligations |
(14,069) |
(55,787) |
(27,864) |
(69,856) |
(44,460) |
|||||||||||||||
Repayment of mortgage and loans payable |
(18,816) |
(6,599) |
(20,795) |
(25,415) |
(42,305) |
|||||||||||||||
Debt extinguishment costs |
148 |
(20,704) |
(8,122) |
(20,556) |
(11,254) |
|||||||||||||||
Debt issuance costs |
— |
(11,583) |
46 |
(11,583) |
(40,619) |
|||||||||||||||
Other financing activities |
580 |
— |
— |
580 |
(900) |
|||||||||||||||
Net cash provided by (used in) financing activities |
(206,282) |
674,025 |
(212,897) |
467,743 |
4,012,349 |
|||||||||||||||
Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash |
(33,743) |
7,903 |
5,327 |
(25,840) |
16,868 |
|||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash |
(1,066,371) |
617,909 |
(3,839,820) |
(448,462) |
329,979 |
|||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period |
2,068,610 |
1,450,701 |
4,943,046 |
1,450,701 |
773,247 |
|||||||||||||||
Cash, cash equivalents and restricted cash at end of period |
$ |
1,002,239 |
$ |
2,068,610 |
$ |
1,103,226 |
$ |
1,002,239 |
$ |
1,103,226 |
||||||||||
Supplemental cash flow information: |
||||||||||||||||||||
Cash paid for taxes |
$ |
17,681 |
$ |
31,761 |
$ |
16,269 |
$ |
49,442 |
$ |
45,821 |
||||||||||
Cash paid for interest |
$ |
115,071 |
$ |
107,057 |
$ |
97,960 |
$ |
222,128 |
$ |
213,394 |
||||||||||
Free cash flow (negative free cash flow) (1) |
$ |
(839,586) |
$ |
(63,522) |
$ |
(3,642,553) |
$ |
(903,108) |
$ |
(3,702,437) |
||||||||||
Adjusted free cash flow (adjusted negative free cash flow) (2) |
$ |
18,489 |
$ |
(48,822) |
$ |
(42,099) |
$ |
(30,333) |
$ |
(24,203) |
||||||||||
(1) |
We define 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 |
$ |
538,728 |
$ |
300,907 |
$ |
306,473 |
$ |
839,635 |
$ |
553,844 |
||||||||||
Net cash used in investing activities as presented above |
(1,365,074) |
(364,926) |
(3,938,723) |
(1,730,000) |
(4,253,082) |
|||||||||||||||
Purchases, sales and maturities of investments, net |
(13,240) |
497 |
(10,303) |
(12,743) |
(3,199) |
|||||||||||||||
Negative free cash flow |
$ |
(839,586) |
$ |
(63,522) |
$ |
(3,642,553) |
$ |
(903,108) |
$ |
(3,702,437) |
||||||||||
(2) |
We define adjusted free cash flow as free cash flow (as defined above) excluding any purchases of real estate and business acquisitions, net of cash and restricted cash acquired as presented below: |
|||||||||||||||||||
Free cash flow (as defined above) |
$ |
(839,586) |
$ |
(63,522) |
$ |
(3,642,553) |
$ |
(903,108) |
$ |
(3,702,437) |
||||||||||
Less business acquisitions, net of cash and restricted cash acquired |
830,993 |
— |
3,593,613 |
830,993 |
3,629,654 |
|||||||||||||||
Less purchases of real estate |
27,082 |
14,700 |
6,841 |
41,782 |
48,580 |
|||||||||||||||
Adjusted free cash flow (adjusted negative free cash flow) |
$ |
18,489 |
$ |
(48,822) |
$ |
(42,099) |
$ |
(30,333) |
$ |
(24,203) |
||||||||||
EQUINIX, INC. |
||||||||||||||||||||
Non-GAAP Measures and Other Supplemental Data |
||||||||||||||||||||
(in thousands) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||||||
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
||||||||||||||||
Recurring revenues |
$ |
1,187,749 |
$ |
1,150,629 |
$ |
1,010,048 |
$ |
2,338,378 |
$ |
1,908,488 |
||||||||||
Non-recurring revenues |
74,194 |
65,248 |
56,373 |
139,442 |
107,458 |
|||||||||||||||
Revenues (1) |
1,261,943 |
1,215,877 |
1,066,421 |
2,477,820 |
2,015,946 |
|||||||||||||||
Cash cost of revenues (2) |
421,733 |
395,522 |
344,469 |
817,255 |
648,009 |
|||||||||||||||
Cash gross profit (3) |
840,210 |
820,355 |
721,952 |
1,660,565 |
1,367,937 |
|||||||||||||||
Cash operating expenses (4) (7): |
||||||||||||||||||||
Cash sales and marketing expenses (5) |
91,468 |
98,069 |
89,616 |
189,537 |
189,477 |
|||||||||||||||
Cash general and administrative expenses (6) |
144,738 |
142,771 |
123,028 |
287,509 |
241,578 |
|||||||||||||||
Total cash operating expenses (4) (7) |
236,206 |
240,840 |
212,644 |
477,046 |
431,055 |
|||||||||||||||
Adjusted EBITDA (8) |
$ |
604,004 |
$ |
579,515 |
$ |
509,308 |
$ |
1,183,519 |
$ |
936,882 |
||||||||||
Cash gross margins (9) |
67 |
% |
67 |
% |
68 |
% |
67 |
% |
68 |
% |
||||||||||
Adjusted EBITDA margins (10) |
48 |
% |
48 |
% |
48 |
% |
48 |
% |
46 |
% |
||||||||||
Adjusted EBITDA flow-through rate (11) |
53 |
% |
94 |
% |
70 |
% |
55 |
% |
54 |
% |
||||||||||
FFO (12) |
$ |
289,525 |
$ |
290,755 |
$ |
219,760 |
$ |
580,280 |
$ |
420,626 |
||||||||||
AFFO (13) (14) |
$ |
428,126 |
$ |
414,576 |
$ |
360,114 |
$ |
842,702 |
$ |
664,224 |
||||||||||
(1) |
The geographic split of our revenues on a services basis is presented below: |
|||||||||||||||||||
Americas Revenues: |
||||||||||||||||||||
Colocation |
$ |
433,895 |
$ |
427,125 |
$ |
374,764 |
$ |
861,020 |
$ |
674,037 |
||||||||||
Interconnection |
131,720 |
129,253 |
116,248 |
260,973 |
217,098 |
|||||||||||||||
Managed infrastructure |
18,292 |
18,535 |
17,005 |
36,827 |
32,066 |
|||||||||||||||
Other |
4,980 |
1,079 |
1,903 |
6,059 |
2,822 |
|||||||||||||||
Recurring revenues |
588,887 |
575,992 |
509,920 |
1,164,879 |
926,023 |
|||||||||||||||
Non-recurring revenues |
29,388 |
26,635 |
23,688 |
56,023 |
44,032 |
|||||||||||||||
Revenues |
$ |
618,275 |
$ |
602,627 |
$ |
533,608 |
$ |
1,220,902 |
$ |
970,055 |
||||||||||
EMEA Revenues: |
||||||||||||||||||||
Colocation |
$ |
293,518 |
$ |
288,061 |
$ |
259,684 |
$ |
581,579 |
$ |
512,938 |
||||||||||
Interconnection |
33,969 |
34,977 |
23,655 |
68,946 |
46,006 |
|||||||||||||||
Managed infrastructure |
29,731 |
30,686 |
19,205 |
60,417 |
36,877 |
|||||||||||||||
Other |
2,364 |
1,766 |
2,037 |
4,130 |
5,367 |
|||||||||||||||
Recurring revenues |
359,582 |
355,490 |
304,581 |
715,072 |
601,188 |
|||||||||||||||
Non-recurring revenues |
23,586 |
24,140 |
18,363 |
47,726 |
36,603 |
|||||||||||||||
Revenues |
$ |
383,168 |
$ |
379,630 |
$ |
322,944 |
$ |
762,798 |
$ |
637,791 |
||||||||||
Asia-Pacific Revenues: |
||||||||||||||||||||
Colocation |
$ |
186,172 |
$ |
166,198 |
$ |
147,783 |
$ |
352,370 |
$ |
286,778 |
||||||||||
Interconnection |
31,924 |
30,769 |
25,781 |
62,693 |
50,640 |
|||||||||||||||
Managed infrastructure |
21,184 |
22,180 |
21,983 |
43,364 |
43,859 |
|||||||||||||||
Recurring revenues |
239,280 |
219,147 |
195,547 |
458,427 |
381,277 |
|||||||||||||||
Non-recurring revenues |
21,220 |
14,473 |
14,322 |
35,693 |
26,823 |
|||||||||||||||
Revenues |
$ |
260,500 |
$ |
233,620 |
$ |
209,869 |
$ |
494,120 |
$ |
408,100 |
||||||||||
Worldwide Revenues: |
||||||||||||||||||||
Colocation |
$ |
913,585 |
$ |
881,384 |
$ |
782,231 |
$ |
1,794,969 |
$ |
1,473,753 |
||||||||||
Interconnection |
197,613 |
194,999 |
165,684 |
392,612 |
313,744 |
|||||||||||||||
Managed infrastructure |
69,207 |
71,401 |
58,193 |
140,608 |
112,802 |
|||||||||||||||
Other |
7,344 |
2,845 |
3,940 |
10,189 |
8,189 |
|||||||||||||||
Recurring revenues |
1,187,749 |
1,150,629 |
1,010,048 |
2,338,378 |
1,908,488 |
|||||||||||||||
Non-recurring revenues |
74,194 |
65,248 |
56,373 |
139,442 |
107,458 |
|||||||||||||||
Revenues |
$ |
1,261,943 |
$ |
1,215,877 |
$ |
1,066,421 |
$ |
2,477,820 |
$ |
2,015,946 |
||||||||||
(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 |
$ |
651,801 |
$ |
622,430 |
$ |
522,203 |
$ |
1,274,231 |
$ |
991,164 |
||||||||||
Depreciation, amortization and accretion expense |
(225,461) |
(223,009) |
(174,556) |
(448,470) |
(337,066) |
|||||||||||||||
Stock-based compensation expense |
(4,607) |
(3,899) |
(3,178) |
(8,506) |
(6,089) |
|||||||||||||||
Cash cost of revenues |
$ |
421,733 |
$ |
395,522 |
$ |
344,469 |
$ |
817,255 |
$ |
648,009 |
||||||||||
The geographic split of our cash cost of revenues is presented below: |
||||||||||||||||||||
Americas cash cost of revenues |
$ |
180,057 |
$ |
164,255 |
$ |
148,589 |
$ |
344,312 |
$ |
261,648 |
||||||||||
EMEA cash cost of revenues |
155,085 |
152,814 |
124,485 |
307,899 |
246,660 |
|||||||||||||||
Asia-Pacific cash cost of revenues |
86,591 |
78,453 |
71,395 |
165,044 |
139,701 |
|||||||||||||||
Cash cost of revenues |
$ |
421,733 |
$ |
395,522 |
$ |
344,469 |
$ |
817,255 |
$ |
648,009 |
||||||||||
(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 |
$ |
364,691 |
$ |
362,933 |
$ |
332,921 |
$ |
727,624 |
$ |
643,247 |
||||||||||
Depreciation and amortization expense |
(83,367) |
(83,456) |
(77,830) |
(166,823) |
(134,333) |
|||||||||||||||
Stock-based compensation expense |
(45,118) |
(38,637) |
(42,447) |
(83,755) |
(77,859) |
|||||||||||||||
Cash operating expense |
$ |
236,206 |
$ |
240,840 |
$ |
212,644 |
$ |
477,046 |
$ |
431,055 |
||||||||||
(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 |
$ |
154,202 |
$ |
159,776 |
$ |
141,566 |
$ |
313,978 |
$ |
270,493 |
||||||||||
Depreciation and amortization expense |
(48,626) |
(50,001) |
(38,524) |
(98,627) |
(56,618) |
|||||||||||||||
Stock-based compensation expense |
(14,108) |
(11,706) |
(13,426) |
(25,814) |
(24,398) |
|||||||||||||||
Cash sales and marketing expense |
$ |
91,468 |
$ |
98,069 |
$ |
89,616 |
$ |
189,537 |
$ |
189,477 |
||||||||||
(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 |
$ |
210,489 |
$ |
203,157 |
$ |
191,355 |
$ |
413,646 |
$ |
372,754 |
||||||||||
Depreciation and amortization expense |
(34,741) |
(33,455) |
(39,306) |
(68,196) |
(77,715) |
|||||||||||||||
Stock-based compensation expense |
(31,010) |
(26,931) |
(29,021) |
(57,941) |
(53,461) |
|||||||||||||||
Cash general and administrative expense |
$ |
144,738 |
$ |
142,771 |
$ |
123,028 |
$ |
287,509 |
$ |
241,578 |
||||||||||
(7) |
The geographic split of our cash operating expense, or cash SG&A, as defined above, is presented below: |
|||||||||||||||||||
Americas cash SG&A |
$ |
144,263 |
$ |
146,823 |
$ |
126,868 |
$ |
291,086 |
$ |
251,637 |
||||||||||
EMEA cash SG&A |
57,268 |
60,638 |
56,837 |
117,906 |
119,955 |
|||||||||||||||
Asia-Pacific cash SG&A |
34,675 |
33,379 |
28,939 |
68,054 |
59,463 |
|||||||||||||||
Cash SG&A |
$ |
236,206 |
$ |
240,840 |
$ |
212,644 |
$ |
477,046 |
$ |
431,055 |
||||||||||
(8) |
We define adjusted EBITDA as income from operations excluding depreciation, amortization, accretion, stock-based compensation, restructuring charges, impairment charges, acquisition costs and gain or loss on asset sales as presented below: |
|||||||||||||||||||
Income from operations |
$ |
215,038 |
$ |
225,875 |
$ |
184,895 |
$ |
440,913 |
$ |
352,108 |
||||||||||
Depreciation, amortization and accretion expense |
308,828 |
306,465 |
252,386 |
615,293 |
471,399 |
|||||||||||||||
Stock-based compensation expense |
49,725 |
42,536 |
45,625 |
92,261 |
83,948 |
|||||||||||||||
Acquisition costs |
30,413 |
4,639 |
26,402 |
35,052 |
29,427 |
|||||||||||||||
Adjusted EBITDA |
$ |
604,004 |
$ |
579,515 |
$ |
509,308 |
$ |
1,183,519 |
$ |
936,882 |
||||||||||
The geographic split of our adjusted EBITDA is presented below: |
||||||||||||||||||||
Americas income from operations |
$ |
87,711 |
$ |
101,736 |
$ |
75,039 |
$ |
189,447 |
$ |
156,149 |
||||||||||
Americas depreciation, amortization and accretion expense |
160,337 |
158,026 |
124,905 |
318,363 |
213,333 |
|||||||||||||||
Americas stock-based compensation expense |
35,104 |
29,877 |
33,771 |
64,981 |
61,545 |
|||||||||||||||
Americas acquisition costs |
10,803 |
1,910 |
24,436 |
12,713 |
25,743 |
|||||||||||||||
Americas adjusted EBITDA |
$ |
293,955 |
$ |
291,549 |
$ |
258,151 |
$ |
585,504 |
$ |
456,770 |
||||||||||
EMEA income from operations |
$ |
73,046 |
$ |
64,103 |
$ |
54,927 |
$ |
137,149 |
$ |
99,908 |
||||||||||
EMEA depreciation, amortization and accretion expense |
88,828 |
92,492 |
78,118 |
181,320 |
154,924 |
|||||||||||||||
EMEA stock-based compensation expense |
8,403 |
7,139 |
6,611 |
15,542 |
12,660 |
|||||||||||||||
EMEA acquisition costs |
538 |
2,444 |
1,966 |
2,982 |
3,684 |
|||||||||||||||
EMEA adjusted EBITDA |
$ |
170,815 |
$ |
166,178 |
$ |
141,622 |
$ |
336,993 |
$ |
271,176 |
||||||||||
Asia-Pacific income from operations |
$ |
54,281 |
$ |
60,036 |
$ |
54,929 |
$ |
114,317 |
$ |
96,051 |
||||||||||
Asia-Pacific depreciation, amortization and accretion expense |
59,663 |
55,947 |
49,363 |
115,610 |
103,142 |
|||||||||||||||
Asia-Pacific stock-based compensation expense |
6,218 |
5,520 |
5,243 |
11,738 |
9,743 |
|||||||||||||||
Asia-Pacific acquisition costs |
19,072 |
285 |
— |
19,357 |
— |
|||||||||||||||
Asia-Pacific adjusted EBITDA |
$ |
139,234 |
$ |
121,788 |
$ |
109,535 |
$ |
261,022 |
$ |
208,936 |
||||||||||
(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 |
71 |
% |
73 |
% |
72 |
% |
72 |
% |
73 |
% |
||||||||||
EMEA cash gross margins |
60 |
% |
60 |
% |
61 |
% |
60 |
% |
61 |
% |
||||||||||
Asia-Pacific cash gross margins |
67 |
% |
66 |
% |
66 |
% |
67 |
% |
66 |
% |
||||||||||
(10) |
We define adjusted EBITDA margins as adjusted EBITDA divided by revenues. |
|||||||||||||||||||
Americas adjusted EBITDA margins |
48 |
% |
48 |
% |
48 |
% |
48 |
% |
47 |
% |
||||||||||
EMEA adjusted EBITDA margins |
45 |
% |
44 |
% |
44 |
% |
44 |
% |
43 |
% |
||||||||||
Asia-Pacific adjusted EBITDA margins |
53 |
% |
52 |
% |
|