Equinix Reports Second Quarter 2022 Results
- Quarterly revenues increased 10% on both an as-reported and normalized and constant currency basis over the same quarter last year to
$1.8 billion , representing the company's 78th consecutive quarter of revenue growth—the longest streak of any S&P 500 company - Delivered record quarterly gross and net bookings led by the
Americas and EMEA regions— sizably surpassing the prior peak - Achieved record channel bookings in Q2, accounting for more than 35% of total bookings
- Exceeded 435,000 interconnections in Q2, highlighting the company's critical role in the digital infrastructure of today's businesses
Second Quarter 2022 Results Summary
- Revenues
$1.8 billion , a 5% increase over the previous quarter- Includes a negative
$20 million foreign currency impact when compared to prior guidance rates - Operating Income
$318 million , a 19% increase over the previous quarter and an operating margin of 17%- Net Income and Net Income per Share attributable to
Equinix $216 million , a 47% increase over the previous quarter, primarily due to strong operating performance and a favorable tax settlement$2.37 per share, a 46% increase over the previous quarter- Adjusted EBITDA
$860 million , an 8% increase over the previous quarter and an adjusted EBITDA margin of 47%- Includes a negative
$10 million foreign currency impact when compared to prior guidance rates - Includes
$4 million of integration costs - AFFO and AFFO per Share
$691 million , a 6% increase over the previous quarter, primarily due to strong operating performance, partially offset by higher taxes due to increased profitability$7.58 per share, a 6% increase over the previous quarter- Includes
$4 million of integration costs
2022 Annual Guidance Summary
- Revenues
$7.259 -$7.299 billion , an increase of 9 - 10% over the previous year, or a normalized and constant currency increase of 10 - 11%- An increase of
$65 million compared to prior guidance, offset by a$102 million foreign currency impact compared to prior guidance rates - Adjusted EBITDA
$3.323 -$3.353 billion , a 46% adjusted EBITDA margin- An increase of
$33 million compared to prior guidance excluding integration costs, offset by a$49 million foreign currency impact compared to prior guidance rates - Assumes
$30 million of integration costs - AFFO and AFFO per Share
$2.636 -$2.666 billion , an increase of 8 - 9% over the previous year, or a normalized and constant currency increase of 8 - 10%- An increase of
$33 million compared to prior guidance, offset by a$42 million foreign currency impact compared to prior guidance rates $28.77 -$29.10 per share, an increase of 6 - 7% over the previous year, or 8 - 9% on a normalized and constant currency basis- Assumes
$30 million of integration costs
Equinix Quote
"With record Q2 gross bookings that sizably surpassed the prior peak,
Business Highlights
- As customers continue to embrace
Equinix as the best manifestation of the interconnected digital edge, the company continues to invest in the expansion of its global platform: - 49 major projects are currently underway across 34 metros in 21 countries, including new data center builds in
Dublin ,Montréal ,New York ,Paris ,Warsaw and the company's first build inChennai, India . - In May,
Equinix closed the acquisition of four data centers from Empresa Nacional De Telecomunicaciones S.A. ("Entel"), a leading Chilean telecommunications provider (the "Entel Chile Acquisition"), extending Platform Equinix® intoChile and bringing its global footprint to 70 metros across 31 countries. Equinix expects to close on the acquisition of one additional data center from Entel to enterLima, Peru , in Q3.Equinix continued to strengthen its leadership position in the cloud ecosystem through the company's xScaleTM program, which experienced strong leasing activity from top hyperscalers in Q2. The xScale portfolio has now leased more than 170 megawatts globally, with 11 xScale builds currently under development, of which more than 80% is pre-leased.Equinix's Future First sustainability strategy was recently recognized by Sustainalytics as among the best large-cap REITs for ESG.Equinix was also ranked seventh on theU.S. Environmental Protection Agency's National Top 100 list of the largest green power users.Equinix continued the growth of its indirect selling initiatives, with channel sales delivering a fifth consecutive quarter of record bookings, accounting for over 35% of Q2 bookings and nearly 60% of new logos in the quarter. Wins were across a wide range of industry verticals and use cases, with continued strength from strategic partners including AT&T, Cisco,Dell , Google, Microsoft andOrange Business Services . In Q2,Equinix was recognized as HPE GreenLake's Momentum Partner of the Year for 2022 as the two companies work together to deliver a consistent hybrid multicloud experience for joint customers.
Business Outlook
For the third quarter of 2022, the Company expects revenues to range between
For the full year of 2022, total revenues are expected to range between
The
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.
Q2 2022 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, 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
|
|||||||||
Condensed Consolidated Statements of Operations |
|||||||||
(in thousands, except per share data) |
|||||||||
(unaudited) |
|||||||||
Three Months Ended |
Six Months Ended |
||||||||
|
|
|
|
|
|||||
Recurring revenues |
|
$ 1,642,324 |
|
|
|
||||
Non-recurring revenues |
109,703 |
92,123 |
115,457 |
201,826 |
200,588 |
||||
Revenues |
1,817,154 |
1,734,447 |
1,657,919 |
3,551,601 |
3,253,983 |
||||
Cost of revenues |
930,257 |
915,875 |
865,120 |
1,846,132 |
1,676,337 |
||||
Gross profit |
886,897 |
818,572 |
792,799 |
1,705,469 |
1,577,646 |
||||
Operating expenses: |
|||||||||
Sales and marketing |
193,727 |
192,511 |
185,610 |
386,238 |
368,437 |
||||
General and administrative |
370,348 |
352,687 |
322,005 |
723,035 |
623,461 |
||||
Transaction costs |
5,063 |
4,240 |
6,985 |
9,303 |
8,167 |
||||
(Gain) loss on asset sales |
(94) |
1,818 |
(455) |
1,724 |
1,265 |
||||
Total operating expenses |
569,044 |
551,256 |
514,145 |
1,120,300 |
1,001,330 |
||||
Income from operations |
317,853 |
267,316 |
278,654 |
585,169 |
576,316 |
||||
Interest and other income (expense): |
|||||||||
Interest income |
4,508 |
2,106 |
374 |
6,614 |
1,103 |
||||
Interest expense |
(90,826) |
(79,965) |
(87,231) |
(170,791) |
(176,912) |
||||
Other expense |
(6,238) |
(9,549) |
(39,377) |
(15,787) |
(46,327) |
||||
Gain (loss) on debt extinguishment |
(420) |
529 |
(102,460) |
109 |
(115,518) |
||||
Total interest and other, net |
(92,976) |
(86,879) |
(228,694) |
(179,855) |
(337,654) |
||||
Income before income taxes |
224,877 |
180,437 |
49,960 |
405,314 |
238,662 |
||||
Income tax expense |
(8,635) |
(32,744) |
18,527 |
(41,379) |
(14,101) |
||||
Net income |
216,242 |
147,693 |
68,487 |
363,935 |
224,561 |
||||
Net (income) loss attributable to non-controlling interests |
80 |
(240) |
(148) |
(160) |
140 |
||||
Net income attributable to |
$ 216,322 |
$ 147,453 |
$ 68,339 |
$ 363,775 |
$ 224,701 |
||||
Net income per share attributable to |
|||||||||
Basic net income per share |
$ 2.38 |
$ 1.62 |
$ 0.76 |
$ 4.00 |
$ 2.51 |
||||
Diluted net income per share |
$ 2.37 |
$ 1.62 |
$ 0.76 |
$ 3.99 |
$ 2.50 |
||||
Shares used in computing basic net income per share |
91,036 |
90,771 |
89,648 |
90,904 |
89,490 |
||||
Shares used in computing diluted net income per share |
91,262 |
91,162 |
90,104 |
91,213 |
90,024 |
|
|||||||||
Condensed Consolidated Statements of Comprehensive Income |
|||||||||
(in thousands) |
|||||||||
(unaudited) |
|||||||||
Three Months Ended |
Six Months Ended |
||||||||
|
|
|
|
|
|||||
Net income |
$ 216,242 |
$ 147,693 |
$ 68,487 |
$ 363,935 |
$ 224,561 |
||||
Other comprehensive income (loss), net of tax: |
|||||||||
Foreign currency translation adjustment ("CTA") gain (loss) |
(740,428) |
(122,534) |
110,466 |
(862,962) |
(184,680) |
||||
Net investment hedge CTA gain (loss) |
353,953 |
91,358 |
(37,036) |
445,311 |
133,139 |
||||
Unrealized gain (loss) on cash flow hedges |
20,617 |
64,037 |
(5,700) |
84,654 |
23,778 |
||||
Net actuarial gain (loss) on defined benefit plans |
(19) |
(21) |
15 |
(40) |
27 |
||||
Total other comprehensive income (loss), net of tax |
(365,877) |
32,840 |
67,745 |
(333,037) |
(27,736) |
||||
Comprehensive income (loss), net of tax |
(149,635) |
180,533 |
136,232 |
30,898 |
196,825 |
||||
Net (income) loss attributable to non-controlling interests |
80 |
(240) |
(148) |
(160) |
140 |
||||
Other comprehensive (income) attributable to non-controlling interests |
35 |
(3) |
(11) |
32 |
(10) |
||||
Comprehensive income (loss) attributable to |
$ (149,520) |
$ 180,290 |
$ 136,073 |
$ 30,770 |
$ 196,955 |
|
|||
Condensed Consolidated Balance Sheets |
|||
(in thousands) |
|||
(unaudited) |
|||
|
|
||
Assets |
|||
Cash and cash equivalents |
$ 1,891,311 |
$ 1,536,358 |
|
Accounts receivable, net |
812,769 |
681,809 |
|
Other current assets |
514,313 |
462,739 |
|
Assets held for sale |
71,554 |
276,195 |
|
Total current assets |
3,289,947 |
2,957,101 |
|
Property, plant and equipment, net |
15,455,180 |
15,445,775 |
|
Operating lease right-of-use assets |
1,453,233 |
1,282,418 |
|
|
5,585,330 |
5,372,071 |
|
Intangible assets, net |
1,982,434 |
1,935,267 |
|
Other assets |
1,272,090 |
926,066 |
|
Total assets |
$ 29,038,214 |
$ 27,918,698 |
|
Liabilities and Stockholders' Equity |
|||
Accounts payable and accrued expenses |
$ 841,473 |
$ 879,144 |
|
Accrued property, plant and equipment |
244,267 |
187,334 |
|
Current portion of operating lease liabilities |
140,667 |
144,029 |
|
Current portion of finance lease liabilities |
144,100 |
147,841 |
|
Current portion of mortgage and loans payable |
34,086 |
33,087 |
|
Other current liabilities |
204,351 |
214,519 |
|
Total current liabilities |
1,608,944 |
1,605,954 |
|
Operating lease liabilities, less current portion |
1,291,447 |
1,107,180 |
|
Finance lease liabilities, less current portion |
1,985,498 |
1,989,668 |
|
Mortgage and loans payable, less current portion |
655,331 |
586,577 |
|
Senior notes, less current portion |
12,077,756 |
10,984,144 |
|
Other liabilities |
789,644 |
763,411 |
|
Total liabilities |
18,408,620 |
17,036,934 |
|
Common stock |
91 |
91 |
|
Additional paid-in capital |
16,259,311 |
15,984,597 |
|
|
(98,792) |
(112,208) |
|
Accumulated dividends |
(6,736,338) |
(6,165,140) |
|
Accumulated other comprehensive loss |
(1,418,756) |
(1,085,751) |
|
Retained earnings |
2,624,268 |
2,260,493 |
|
Total Equinix stockholders' equity |
10,629,784 |
10,882,082 |
|
Non-controlling interests |
(190) |
(318) |
|
Total stockholders' equity |
10,629,594 |
10,881,764 |
|
Total liabilities and stockholders' equity |
$ 29,038,214 |
$ 27,918,698 |
|
Ending headcount by geographic region is as follows: |
|||
|
5,275 |
5,056 |
|
EMEA headcount |
3,728 |
3,611 |
|
|
2,448 |
2,277 |
|
Total headcount |
11,451 |
10,944 |
|
|||
Summary of Debt Principal Outstanding |
|||
(in thousands) |
|||
(unaudited) |
|||
|
|
||
Finance lease liabilities |
$ 2,129,598 |
$ 2,137,509 |
|
Term loans |
626,417 |
549,343 |
|
Mortgage payable and other loans payable |
63,000 |
70,321 |
|
Minus: mortgage premium, debt discount and issuance costs, net |
(208) |
(1,276) |
|
Total mortgage and loans payable principal |
689,209 |
618,388 |
|
Senior notes |
12,077,756 |
10,984,144 |
|
Plus: debt discount and issuance costs |
125,154 |
117,986 |
|
Total senior notes principal |
12,202,910 |
11,102,130 |
|
Total debt principal outstanding |
$ 15,021,717 |
$ 13,858,027 |
|
||||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||||
(in thousands) |
||||||||||
(unaudited) |
||||||||||
Three Months Ended |
Six Months Ended |
|||||||||
|
|
|
|
|
||||||
Cash flows from operating activities: |
||||||||||
Net income |
$ 216,242 |
$ 147,693 |
$ 68,487 |
$ 363,935 |
$ 224,561 |
|||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||||
Depreciation, amortization and accretion |
432,828 |
436,386 |
417,758 |
869,214 |
812,076 |
|||||
Stock-based compensation |
104,682 |
89,952 |
94,335 |
194,634 |
172,685 |
|||||
Amortization of debt issuance costs and debt discounts and premiums |
4,536 |
4,204 |
4,430 |
8,740 |
8,370 |
|||||
(Gain) loss on debt extinguishment |
420 |
(529) |
102,460 |
(109) |
115,518 |
|||||
Loss (gain) on asset sales |
(94) |
1,818 |
(455) |
1,724 |
1,265 |
|||||
Other items |
5,832 |
6,050 |
11,296 |
11,882 |
22,478 |
|||||
Changes in operating assets and liabilities: |
||||||||||
Accounts receivable |
(26,302) |
(100,727) |
(39,709) |
(127,029) |
(57,329) |
|||||
Income taxes, net |
(33,663) |
13,881 |
(55,661) |
(19,782) |
(65,935) |
|||||
Accounts payable and accrued expenses |
55,128 |
(75,980) |
19,161 |
(20,852) |
(57,201) |
|||||
Operating lease right-of-use assets |
38,839 |
35,400 |
20,851 |
74,239 |
61,775 |
|||||
Operating lease liabilities |
(34,632) |
(31,740) |
(63,765) |
(66,372) |
(100,328) |
|||||
Other assets and liabilities |
37,765 |
54,715 |
20,009 |
92,480 |
(147,580) |
|||||
Net cash provided by operating activities |
801,581 |
581,123 |
599,197 |
1,382,704 |
990,355 |
|||||
Cash flows from investing activities: |
||||||||||
Purchases, sales and maturities of investments, net |
(26,391) |
(38,558) |
(2,595) |
(64,949) |
(20,944) |
|||||
Business acquisitions, net of cash and restricted cash acquired |
(883,668) |
— |
— |
(883,668) |
— |
|||||
Real estate acquisitions |
(30,257) |
(3,074) |
(33,900) |
(33,331) |
(87,637) |
|||||
Purchases of other property, plant and equipment |
(484,830) |
(412,518) |
(692,232) |
(897,348) |
(1,255,830) |
|||||
Proceeds from asset sales |
56,024 |
195,391 |
— |
251,415 |
— |
|||||
Net cash used in investing activities |
(1,369,122) |
(258,759) |
(728,727) |
(1,627,881) |
(1,364,411) |
|||||
Cash flows from financing activities: |
||||||||||
Proceeds from employee equity awards |
— |
43,876 |
— |
43,876 |
40,034 |
|||||
Payment of dividend distributions |
(283,048) |
(289,669) |
(258,053) |
(572,717) |
(521,092) |
|||||
Proceeds from public offering of common stock, net of offering costs |
— |
— |
99,599 |
— |
99,599 |
|||||
Proceeds from mortgage and loans payable |
— |
676,850 |
— |
676,850 |
— |
|||||
Proceeds from senior notes, net of debt discounts |
1,193,688 |
— |
2,587,910 |
1,193,688 |
3,878,662 |
|||||
Repayment of finance lease liabilities |
(28,783) |
(40,773) |
(66,293) |
(69,556) |
(98,877) |
|||||
Repayment of mortgage and loans payable |
(9,199) |
(551,833) |
(675,873) |
(561,032) |
(696,059) |
|||||
Repayment of senior notes |
— |
— |
(1,400,000) |
— |
(1,990,650) |
|||||
Debt extinguishment costs |
— |
— |
(90,664) |
— |
(99,185) |
|||||
Debt issuance costs |
(10,365) |
(7,366) |
(21,950) |
(17,731) |
(25,102) |
|||||
Net cash provided by (used in) financing activities |
862,293 |
(168,915) |
174,676 |
693,378 |
587,330 |
|||||
Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash |
(101,129) |
4,593 |
4,965 |
(96,536) |
(17,054) |
|||||
Net increase in cash, cash equivalents and restricted cash |
193,623 |
158,042 |
50,111 |
351,665 |
196,220 |
|||||
Cash, cash equivalents and restricted cash at beginning of period |
1,707,496 |
1,549,454 |
1,771,804 |
1,549,454 |
1,625,695 |
|||||
Cash, cash equivalents and restricted cash at end of period |
|
|
|
|
|
|||||
Supplemental cash flow information: |
||||||||||
Cash paid for taxes |
$ 53,609 |
$ 20,150 |
$ 32,667 |
$ 73,759 |
$ 82,637 |
|||||
Cash paid for interest |
$ 106,249 |
$ 104,051 |
$ 128,636 |
$ 210,300 |
$ 229,691 |
|||||
Free cash flow (negative free cash flow) (1) |
$ (541,150) |
$ 360,922 |
$ (126,935) |
$ (180,228) |
$ (353,112) |
|||||
Adjusted free cash flow (negative adjusted free cash flow) (2) |
$ 372,775 |
$ 363,996 |
$ (93,035) |
$ 736,771 |
$ (265,475) |
|||||
(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 |
$ 801,581 |
$ 581,123 |
$ 599,197 |
|
$ 990,355 |
|||||
Net cash used in investing activities as presented above |
(1,369,122) |
(258,759) |
(728,727) |
(1,627,881) |
(1,364,411) |
|||||
Purchases, sales and maturities of investments, net |
26,391 |
38,558 |
2,595 |
64,949 |
20,944 |
|||||
Free cash flow (negative free cash flow) |
$ (541,150) |
$ 360,922 |
$ (126,935) |
$ (180,228) |
$ (353,112) |
|||||
(2) |
We define adjusted free cash flow (negative 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 |
$ (541,150) |
$ 360,922 |
$ (126,935) |
$ (180,228) |
$ (353,112) |
|||||
Less business acquisitions, net of cash and restricted cash acquired |
883,668 |
— |
— |
883,668 |
— |
|||||
Less real estate acquisitions |
30,257 |
3,074 |
33,900 |
33,331 |
87,637 |
|||||
Adjusted free cash flow (negative adjusted free cash flow) |
$ 372,775 |
$ 363,996 |
$ (93,035) |
$ 736,771 |
$ (265,475) |
|
||||||||||
Non-GAAP Measures and Other Supplemental Data |
||||||||||
(in thousands) |
||||||||||
(unaudited) |
||||||||||
Three Months Ended |
Six Months Ended |
|||||||||
|
|
|
|
|
||||||
Recurring revenues |
$ 1,707,451 |
$ 1,642,324 |
$ 1,542,462 |
$ 3,349,775 |
$ 3,053,395 |
|||||
Non-recurring revenues |
109,703 |
92,123 |
115,457 |
201,826 |
200,588 |
|||||
Revenues (1) |
1,817,154 |
1,734,447 |
1,657,919 |
3,551,601 |
3,253,983 |
|||||
Cash cost of revenues (2) |
599,368 |
583,703 |
544,196 |
1,183,071 |
1,055,006 |
|||||
Cash gross profit (3) |
1,217,786 |
1,150,744 |
1,113,723 |
2,368,530 |
2,198,977 |
|||||
Cash operating expenses (4)(7): |
||||||||||
Cash sales and marketing expenses (5) |
120,739 |
124,706 |
115,282 |
245,445 |
228,335 |
|||||
Cash general and administrative expenses (6) |
236,715 |
226,326 |
201,164 |
463,041 |
400,133 |
|||||
Total cash operating expenses (4)(7) |
357,454 |
351,032 |
316,446 |
708,486 |
628,468 |
|||||
Adjusted EBITDA (8) |
$ 860,332 |
$ 799,712 |
$ 797,277 |
$ 1,660,044 |
$ 1,570,509 |
|||||
Cash gross margins (9) |
67 % |
66 % |
67 % |
67 % |
68 % |
|||||
Adjusted EBITDA margins(10) |
47 % |
46 % |
48 % |
47 % |
48 % |
|||||
Adjusted EBITDA flow-through rate (11) |
73 % |
43 % |
39 % |
51 % |
72 % |
|||||
FFO (12) |
$ 498,349 |
$ 432,644 |
$ 340,873 |
$ 930,993 |
$ 758,136 |
|||||
AFFO (13)(14) |
$ 691,392 |
$ 652,632 |
$ 631,937 |
$ 1,344,024 |
$ 1,258,765 |
|||||
Basic FFO per share (15) |
$ 5.47 |
$ 4.77 |
$ 3.80 |
$ 10.24 |
$ 8.47 |
|||||
Diluted FFO per share (15) |
$ 5.46 |
$ 4.75 |
$ 3.78 |
$ 10.21 |
$ 8.42 |
|||||
Basic AFFO per share (15) |
$ 7.59 |
$ 7.19 |
$ 7.05 |
$ 14.79 |
$ 14.07 |
|||||
Diluted AFFO per share (15) |
$ 7.58 |
$ 7.16 |
$ 7.01 |
$ 14.74 |
$ 13.98 |
|||||
(1) |
The geographic split of our revenues on a services basis is presented below: |
|||||||||
Americas Revenues: |
||||||||||
Colocation |
$ 541,988 |
$ 522,171 |
$ 497,659 |
$ 1,064,159 |
$ 985,118 |
|||||
Interconnection |
187,491 |
181,103 |
167,618 |
368,594 |
332,505 |
|||||
Managed infrastructure |
55,329 |
49,222 |
40,734 |
104,551 |
79,219 |
|||||
Other |
5,581 |
5,134 |
451 |
10,715 |
2,489 |
|||||
Recurring revenues |
790,389 |
757,630 |
706,462 |
1,548,019 |
1,399,331 |
|||||
Non-recurring revenues |
40,475 |
42,791 |
44,181 |
83,266 |
77,252 |
|||||
Revenues |
$ 830,864 |
$ 800,421 |
$ 750,643 |
$ 1,631,285 |
$ 1,476,583 |
|||||
EMEA Revenues: |
||||||||||
Colocation |
$ 433,339 |
$ 414,569 |
$ 398,703 |
$ 847,908 |
$ 786,978 |
|||||
Interconnection |
66,845 |
68,140 |
65,258 |
134,985 |
126,908 |
|||||
Managed infrastructure |
30,447 |
30,990 |
31,176 |
61,437 |
63,287 |
|||||
Other |
22,048 |
6,414 |
3,682 |
28,462 |
8,728 |
|||||
Recurring revenues |
552,679 |
520,113 |
498,819 |
1,072,792 |
985,901 |
|||||
Non-recurring revenues |
46,522 |
30,367 |
39,110 |
76,889 |
70,745 |
|||||
Revenues |
$ 599,201 |
$ 550,480 |
$ 537,929 |
$ 1,149,681 |
$ 1,056,646 |
|||||
Asia-Pacific Revenues: |
||||||||||
Colocation |
$ 281,635 |
$ 282,615 |
$ 259,573 |
$ 564,250 |
$ 514,131 |
|||||
Interconnection |
60,841 |
59,987 |
54,898 |
120,828 |
108,080 |
|||||
Managed infrastructure |
19,916 |
20,642 |
22,094 |
40,558 |
44,843 |
|||||
Other |
1,991 |
1,337 |
616 |
3,328 |
1,109 |
|||||
Recurring revenues |
364,383 |
364,581 |
337,181 |
728,964 |
668,163 |
|||||
Non-recurring revenues |
22,706 |
18,965 |
32,166 |
41,671 |
52,591 |
|||||
Revenues |
$ 387,089 |
$ 383,546 |
$ 369,347 |
$ 770,635 |
$ 720,754 |
|||||
Worldwide Revenues: |
||||||||||
Colocation |
$ 1,256,962 |
$ 1,219,355 |
$ 1,155,935 |
$ 2,476,317 |
$ 2,286,227 |
|||||
Interconnection |
315,177 |
309,230 |
287,774 |
624,407 |
567,493 |
|||||
Managed infrastructure |
105,692 |
100,854 |
94,004 |
206,546 |
187,349 |
|||||
Other |
29,620 |
12,885 |
4,749 |
42,505 |
12,326 |
|||||
Recurring revenues |
1,707,451 |
1,642,324 |
1,542,462 |
3,349,775 |
3,053,395 |
|||||
Non-recurring revenues |
109,703 |
92,123 |
115,457 |
201,826 |
200,588 |
|||||
Revenues |
$ 1,817,154 |
$ 1,734,447 |
$ 1,657,919 |
$ 3,551,601 |
$ 3,253,983 |
|||||
(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 |
$ 930,257 |
$ 915,875 |
$ 865,120 |
$ 1,846,132 |
$ 1,676,337 |
|||||
Depreciation, amortization and accretion expense |
(319,011) |
(321,729) |
(310,916) |
(640,740) |
(602,856) |
|||||
Stock-based compensation expense |
(11,878) |
(10,443) |
(10,008) |
(22,321) |
(18,475) |
|||||
Cash cost of revenues |
$ 599,368 |
$ 583,703 |
$ 544,196 |
$ 1,183,071 |
$ 1,055,006 |
|||||
The geographic split of our cash cost of revenues is presented below: |
||||||||||
|
$ 243,636 |
$ 239,403 |
$ 234,679 |
$ 483,039 |
$ 428,139 |
|||||
EMEA cash cost of revenues |
215,983 |
202,848 |
196,661 |
418,831 |
395,844 |
|||||
|
139,749 |
141,452 |
112,856 |
281,201 |
231,023 |
|||||
Cash cost of revenues |
$ 599,368 |
$ 583,703 |
$ 544,196 |
$ 1,183,071 |
$ 1,055,006 |
|||||
(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 |
$ 564,075 |
$ 545,198 |
$ 507,615 |
$ 1,109,273 |
$ 991,898 |
|||||
Depreciation and amortization expense |
(113,817) |
(114,657) |
(106,842) |
(228,474) |
(209,220) |
|||||
Stock-based compensation expense |
(92,804) |
(79,509) |
(84,327) |
(172,313) |
(154,210) |
|||||
Cash operating expense |
$ 357,454 |
$ 351,032 |
$ 316,446 |
$ 708,486 |
$ 628,468 |
|||||
(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 |
$ 193,727 |
$ 192,511 |
$ 185,610 |
$ 386,238 |
$ 368,437 |
|||||
Depreciation and amortization expense |
(49,817) |
(47,621) |
(49,549) |
(97,438) |
(101,620) |
|||||
Stock-based compensation expense |
(23,171) |
(20,184) |
(20,779) |
(43,355) |
(38,482) |
|||||
Cash sales and marketing expense |
$ 120,739 |
$ 124,706 |
$ 115,282 |
$ 245,445 |
$ 228,335 |
|||||
(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 |
$ 370,348 |
$ 352,687 |
$ 322,005 |
$ 723,035 |
$ 623,461 |
|||||
Depreciation and amortization expense |
(64,000) |
(67,036) |
(57,293) |
(131,036) |
(107,600) |
|||||
Stock-based compensation expense |
(69,633) |
(59,325) |
(63,548) |
(128,958) |
(115,728) |
|||||
Cash general and administrative expense |
$ 236,715 |
$ 226,326 |
$ 201,164 |
$ 463,041 |
$ 400,133 |
|||||
(7) |
The geographic split of our cash operating expense, or cash SG&A, as defined above, is presented below: |
|||||||||
|
$ 211,004 |
$ 204,463 |
$ 190,040 |
$ 415,467 |
$ 378,028 |
|||||
EMEA cash SG&A |
87,836 |
87,287 |
78,742 |
175,123 |
154,713 |
|||||
|
58,614 |
59,282 |
47,664 |
117,896 |
95,727 |
|||||
Cash SG&A |
$ 357,454 |
$ 351,032 |
$ 316,446 |
$ 708,486 |
$ 628,468 |
|||||
(8) |
We define adjusted EBITDA as net income excluding income tax expense, interest income, interest expense, other income or expense, loss or gain on debt extinguishment, depreciation, amortization, accretion, stock-based compensation expense, restructuring charges, impairment charges, transaction costs, and gain or loss on asset sales as presented below: |
|||||||||
Net income |
$ 216,242 |
$ 147,693 |
$ 68,487 |
$ 363,935 |
$ 224,561 |
|||||
Income tax expense (benefit) |
8,635 |
32,744 |
(18,527) |
41,379 |
14,101 |
|||||
Interest income |
(4,508) |
(2,106) |
(374) |
(6,614) |
(1,103) |
|||||
Interest expense |
90,826 |
79,965 |
87,231 |
170,791 |
176,912 |
|||||
Other expense |
6,238 |
9,549 |
39,377 |
15,787 |
46,327 |
|||||
(Gain) loss on debt extinguishment |
420 |
(529) |
102,460 |
(109) |
115,518 |
|||||
Depreciation, amortization and accretion expense |
432,828 |
436,386 |
417,758 |
869,214 |
812,076 |
|||||
Stock-based compensation expense |
104,682 |
89,952 |
94,335 |
194,634 |
172,685 |
|||||
Transaction costs |
5,063 |
4,240 |
6,985 |
9,303 |
8,167 |
|||||
(Gain) loss on asset sales |
(94) |
1,818 |
(455) |
1,724 |
1,265 |
|||||
Adjusted EBITDA |
$ 860,332 |
$ 799,712 |
$ 797,277 |
$ 1,660,044 |
$ 1,570,509 |
|||||
The geographic split of our adjusted EBITDA is presented below: |
||||||||||
|
$ 38,199 |
$ (19,572) |
$ (179,570) |
$ 18,627 |
$ (190,634) |
|||||
|
8,516 |
32,744 |
(18,522) |
41,260 |
13,725 |
|||||
|
(3,904) |
(1,728) |
(401) |
(5,632) |
(748) |
|||||
|
82,160 |
70,730 |
77,169 |
152,890 |
156,682 |
|||||
|
(55,803) |
(23,390) |
46,609 |
(79,193) |
14,616 |
|||||
|
420 |
(261) |
102,460 |
159 |
115,669 |
|||||
|
230,099 |
230,086 |
222,413 |
460,185 |
425,119 |
|||||
|
73,677 |
63,917 |
69,982 |
137,594 |
128,244 |
|||||
|
2,715 |
2,991 |
6,239 |
5,706 |
6,478 |
|||||
|
145 |
1,038 |
(455) |
1,183 |
1,265 |
|||||
|
$ 376,224 |
$ 356,555 |
$ 325,924 |
$ 732,779 |
$ 670,416 |
|||||
EMEA net income |
$ 101,638 |
$ 98,388 |
$ 136,924 |
$ 200,026 |
$ 219,034 |
|||||
EMEA income tax expense |
119 |
— |
— |
119 |
376 |
|||||
EMEA interest income |
(525) |
(267) |
(31) |
(792) |
(17) |
|||||