Equinix Reports Third Quarter 2021 Results
- Quarterly revenues increased 10% over the same quarter last year to
$1.675 billion , or 8% on a normalized and constant currency basis, representing the company's 75th consecutive quarter of revenue growth - Record channel bookings accounted for more than 35% of total bookings, nearly 50% of enterprise bookings, and more than 60% of new logos in Q3
- Interconnection revenues continued to outpace colocation revenues in Q3 with total interconnections increasing to more than 414,000
- Significant milestones in the quarter included closing the GPX India acquisition to enter the strategic market of
India and expanding the xScaleTM program with a new agreement to form a$575 million joint venture inAustralia
Third Quarter 2021 Results Summary
- Revenues
$1.675 billion , a 1% increase over the previous quarter- Includes a
$6 million negative foreign currency impact when compared to prior guidance rates - Operating Income
$282 million , a 1% increase over the previous quarter and an operating margin of 17%- Adjusted EBITDA
$786 million , a 47% adjusted EBITDA margin- Includes a
$3 million negative foreign currency impact when compared to prior guidance rates - Includes
$3 million of integration costs - Net Income and Net Income per Share attributable to
Equinix $152 million , a 123% increase over the previous quarter, primarily due to lower debt redemption costs and operating performance$1.68 per share, a 121% increase over the previous quarter- AFFO and AFFO per Share
$628 million , a 1% decrease from the previous quarter, including a$13 million increase in tax expense attributable to lower debt redemption costs$6.94 per share, a 1% decrease from the previous quarter- Includes
$3 million of integration costs
2021 Annual Guidance Summary
- Revenues
$6.614 -$6.634 billion , an increase of 10 - 11% over the previous year, or a normalized and constant currency increase of ~8%- Includes an incremental
$5 million from the GPX India acquisition, offset by a$20 million negative foreign currency impact when compared to prior guidance rates - Adjusted EBITDA
$3.119 -$3.139 billion , a 47% adjusted EBITDA margin- Increases prior guidance by
$10 million for GPX India and lower integration costs, offset by a$9 million negative foreign currency impact when compared to prior guidance rates - Assumes
$18 million of integration costs - AFFO and AFFO per Share
$2.444 -$2.464 billion , an increase of 12 - 13% over the previous year, or a normalized and constant currency increase of 10 - 11%- Increases prior guidance by a net
$3 million for GPX India and lower integration costs, offset by slightly higher taxes and a$3 million negative foreign currency impact when compared to prior guidance rates $27.03 -$27.25 per share, an increase of 9 - 10% over the previous year on both an as-reported and a normalized and constant currency basis- Assumes
$18 million of integration costs
Equinix Quote
"The pandemic has triggered an accelerated need to digitize business models in virtually every segment of the economy, and our strong Q3 results are reflective of this increasing demand for digital services. As the world's digital infrastructure company,
Business Highlights
Equinix continued to extend its global platform both organically and through acquisitions, enhancing cloud and network density to offer enterprises the most robust platform for their digital infrastructure:- In September,
Equinix completed the GPX India acquisition, providing an entry into the strategic market ofIndia and bringing the global footprint of Platform Equinix® to 27 countries, 65 metros and more than 235 data centers. - 11 major data center openings and expansions were delivered in Q3, including the key markets of
Frankfurt ,New York andSingapore . - 31 additional major projects are underway across 23 markets in 16 countries.
- The xScaleTM program continued to expand in Q3, supporting the unique needs of hyperscale companies and the increasing demand for hybrid multicloud architecture:
- In October,
Equinix announced an agreement to form a new$575 million joint venture withPGIM Real Estate to extend its xScale data center program intoAustralia . - The total investment in the xScale program, when closed and fully built out, is expected to be more than
$7.5 billion across 34 facilities globally with more than 675 megawatts of power capacity. - Eight xScale builds are currently under development, including newly announced projects in
Madrid ,Mexico City andSydney . Equinix continued the growth of its indirect selling initiatives, with channel sales contributing more than 35% of the bookings for the quarter, nearly half of enterprise bookings, and more than 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.
COVID-19 Update
Many of
Looking ahead, the full impact of the COVID-19 pandemic on the company's financial condition or results of operations remains uncertain and will depend on a number of factors, including its impact on
Business Outlook
For the fourth quarter of 2021, the Company expects revenues to range between
For the full year of 2021, 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.
Q3 2021 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 ongoing COVID-19 pandemic; 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 |
Nine Months Ended |
||||||||||||||||||
September |
|
September |
September |
September |
|||||||||||||||
Recurring revenues |
$ |
1,563,616 |
$ |
1,542,462 |
$ |
1,432,072 |
$ |
4,617,011 |
$ |
4,191,904 |
|||||||||
Non-recurring revenues |
111,560 |
115,457 |
87,695 |
312,148 |
242,526 |
||||||||||||||
Revenues |
1,675,176 |
1,657,919 |
1,519,767 |
4,929,159 |
4,434,430 |
||||||||||||||
Cost of revenues |
885,650 |
865,120 |
767,979 |
2,561,987 |
2,243,605 |
||||||||||||||
Gross profit |
789,526 |
792,799 |
751,788 |
2,367,172 |
2,190,825 |
||||||||||||||
Operating expenses: |
|||||||||||||||||||
Sales and marketing |
182,997 |
185,610 |
172,727 |
551,434 |
531,301 |
||||||||||||||
General and administrative |
334,625 |
322,005 |
279,350 |
958,086 |
797,837 |
||||||||||||||
Transaction costs |
5,197 |
6,985 |
5,840 |
13,364 |
30,987 |
||||||||||||||
Impairment charges |
— |
— |
7,306 |
— |
7,306 |
||||||||||||||
Gain on asset sales |
(15,414) |
(455) |
(1,785) |
(14,149) |
(928) |
||||||||||||||
Total operating expenses |
507,405 |
514,145 |
463,438 |
1,508,735 |
1,366,503 |
||||||||||||||
Income from operations |
282,121 |
278,654 |
288,350 |
858,437 |
824,322 |
||||||||||||||
Interest and other income (expense): |
|||||||||||||||||||
Interest income |
411 |
374 |
1,452 |
1,514 |
7,410 |
||||||||||||||
Interest expense |
(78,943) |
(87,231) |
(99,736) |
(255,855) |
(315,554) |
||||||||||||||
Other income (expense) |
1,482 |
(39,377) |
162 |
(44,845) |
9,610 |
||||||||||||||
Gain (loss) on debt extinguishment |
179 |
(102,460) |
(93,494) |
(115,339) |
(101,803) |
||||||||||||||
Total interest and other, net |
(76,871) |
(228,694) |
(191,616) |
(414,525) |
(400,337) |
||||||||||||||
Income before income taxes |
205,250 |
49,960 |
96,734 |
443,912 |
423,985 |
||||||||||||||
Income tax (expense) benefit |
(53,224) |
18,527 |
(29,903) |
(67,325) |
(104,847) |
||||||||||||||
Net income |
152,026 |
68,487 |
66,831 |
376,587 |
319,138 |
||||||||||||||
Net (income) loss attributable to non-controlling interests |
190 |
(148) |
(144) |
330 |
(355) |
||||||||||||||
Net income attributable to |
$ |
152,216 |
$ |
68,339 |
$ |
66,687 |
$ |
376,917 |
$ |
318,783 |
|||||||||
Net income per share attributable to |
|||||||||||||||||||
Basic net income per share |
$ |
1.69 |
$ |
0.76 |
$ |
0.75 |
$ |
4.21 |
$ |
3.65 |
|||||||||
Diluted net income per share |
$ |
1.68 |
$ |
0.76 |
$ |
0.74 |
$ |
4.18 |
$ |
3.63 |
|||||||||
Shares used in computing basic net income per share |
89,858 |
89,648 |
88,806 |
89,614 |
87,226 |
||||||||||||||
Shares used in computing diluted net income per share |
90,467 |
90,104 |
89,519 |
90,202 |
87,925 |
|
|||||||||||||||||||
Condensed Consolidated Statements of Comprehensive Income (Loss) |
|||||||||||||||||||
(in thousands) |
|||||||||||||||||||
(unaudited) |
|||||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||
September |
|
September |
September |
September |
|||||||||||||||
Net income |
$ |
152,026 |
$ |
68,487 |
$ |
66,831 |
$ |
376,587 |
$ |
319,138 |
|||||||||
Other comprehensive income (loss), net of tax: |
|||||||||||||||||||
Foreign currency translation adjustment ("CTA") gain (loss) |
(260,011) |
110,466 |
299,441 |
(444,691) |
66,935 |
||||||||||||||
Net investment hedge CTA gain (loss) |
131,080 |
(37,036) |
(227,101) |
264,219 |
(179,213) |
||||||||||||||
Unrealized gain (loss) on cash flow hedges |
28,270 |
(5,700) |
(33,842) |
52,048 |
(54,966) |
||||||||||||||
Net actuarial gain on defined benefit plans |
14 |
15 |
22 |
41 |
77 |
||||||||||||||
Total other comprehensive income (loss), net of tax |
(100,647) |
67,745 |
38,520 |
(128,383) |
(167,167) |
||||||||||||||
Comprehensive income, net of tax |
51,379 |
136,232 |
105,351 |
248,204 |
151,971 |
||||||||||||||
Net (income) loss attributable to non-controlling interests |
190 |
(148) |
(144) |
330 |
(355) |
||||||||||||||
Other comprehensive (income) attributable to non-controlling interests |
— |
(11) |
(30) |
(10) |
(21) |
||||||||||||||
Comprehensive income attributable to |
$ |
51,569 |
$ |
136,073 |
$ |
105,177 |
$ |
248,524 |
$ |
151,595 |
|
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(in thousands) |
|||||||
(unaudited) |
|||||||
|
|
||||||
Assets |
|||||||
Cash and cash equivalents |
$ |
1,379,100 |
$ |
1,604,869 |
|||
Short-term investments |
— |
4,532 |
|||||
Accounts receivable, net |
792,101 |
676,738 |
|||||
Other current assets |
492,832 |
323,016 |
|||||
Assets held for sale |
235,330 |
— |
|||||
Total current assets |
2,899,363 |
2,609,155 |
|||||
Property, plant and equipment, net |
15,307,049 |
14,503,084 |
|||||
Operating lease right-of-use assets |
1,325,872 |
1,475,057 |
|||||
|
5,401,744 |
5,472,553 |
|||||
Intangible assets, net |
1,994,023 |
2,170,945 |
|||||
Other assets |
846,080 |
776,047 |
|||||
Total assets |
$ |
27,774,131 |
$ |
27,006,841 |
|||
Liabilities and Stockholders' Equity |
|||||||
Accounts payable and accrued expenses |
$ |
844,056 |
$ |
844,862 |
|||
Accrued property, plant and equipment |
347,003 |
301,155 |
|||||
Current portion of operating lease liabilities |
150,490 |
154,207 |
|||||
Current portion of finance lease liabilities |
148,522 |
137,683 |
|||||
Current portion of mortgage and loans payable |
67,571 |
82,289 |
|||||
Current portion of senior notes |
— |
150,186 |
|||||
Other current liabilities |
223,494 |
354,368 |
|||||
Total current liabilities |
1,781,136 |
2,024,750 |
|||||
Operating lease liabilities, less current portion |
1,147,490 |
1,308,627 |
|||||
Finance lease liabilities, less current portion |
1,986,266 |
1,784,816 |
|||||
Mortgage and loans payable, less current portion |
560,733 |
1,287,254 |
|||||
Senior notes, less current portion |
11,000,669 |
9,018,277 |
|||||
Other liabilities |
729,264 |
948,999 |
|||||
Total liabilities |
17,205,558 |
16,372,723 |
|||||
Common stock |
90 |
89 |
|||||
Additional paid-in capital |
15,488,848 |
15,028,357 |
|||||
|
(112,696) |
(122,118) |
|||||
Accumulated dividends |
(5,902,937) |
(5,119,274) |
|||||
Accumulated other comprehensive loss |
(1,041,761) |
(913,368) |
|||||
Retained earnings |
2,137,219 |
1,760,302 |
|||||
Total Equinix stockholders' equity |
10,568,763 |
10,633,988 |
|||||
Non-controlling interests |
(190) |
130 |
|||||
Total stockholders' equity |
10,568,573 |
10,634,118 |
|||||
Total liabilities and stockholders' equity |
$ |
27,774,131 |
$ |
27,006,841 |
|||
Ending headcount by geographic region is as follows: |
|||||||
|
4,971 |
4,599 |
|||||
EMEA headcount |
3,588 |
3,405 |
|||||
|
2,242 |
2,009 |
|||||
Total headcount |
10,801 |
10,013 |
|
|||||||
Summary of Debt Principal Outstanding |
|||||||
(in thousands) |
|||||||
(unaudited) |
|||||||
|
|
||||||
Finance lease liabilities |
$ |
2,134,788 |
$ |
1,922,499 |
|||
Term loans |
555,268 |
1,288,779 |
|||||
Mortgage payable and other loans payable |
73,036 |
80,764 |
|||||
Plus (minus): mortgage premium, debt discount and issuance costs, net |
(1,226) |
1,427 |
|||||
Total mortgage and loans payable principal |
627,078 |
1,370,970 |
|||||
Senior notes |
11,000,669 |
9,168,463 |
|||||
Plus: debt discount and issuance costs |
122,031 |
92,773 |
|||||
Less: debt premium |
— |
(186) |
|||||
Total senior notes principal |
11,122,700 |
9,261,050 |
|||||
Total debt principal outstanding |
$ |
13,884,566 |
$ |
12,554,519 |
|
||||||||||||||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||||||||||||||
(in thousands) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||||||
September |
|
September |
September |
September |
||||||||||||||||
Cash flows from operating activities: |
||||||||||||||||||||
Net income |
$ |
152,026 |
$ |
68,487 |
$ |
66,831 |
$ |
376,587 |
$ |
319,138 |
||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||||||||||||||
Depreciation, amortization and accretion |
419,684 |
417,758 |
362,286 |
1,231,760 |
1,048,151 |
|||||||||||||||
Stock-based compensation |
94,710 |
94,335 |
75,248 |
267,395 |
215,591 |
|||||||||||||||
Amortization of debt issuance costs and debt discounts and premiums |
4,390 |
4,430 |
3,884 |
12,760 |
11,788 |
|||||||||||||||
(Gain) loss on debt extinguishment |
(179) |
102,460 |
93,494 |
115,339 |
101,803 |
|||||||||||||||
Gain on asset sales |
(15,414) |
(455) |
(1,785) |
(14,149) |
(928) |
|||||||||||||||
Impairment charges |
— |
— |
7,306 |
— |
7,306 |
|||||||||||||||
Other items |
5,932 |
11,296 |
(2,518) |
28,410 |
18,229 |
|||||||||||||||
Changes in operating assets and liabilities: |
||||||||||||||||||||
Accounts receivable |
(53,984) |
(39,709) |
(23,871) |
(111,313) |
(38,104) |
|||||||||||||||
Income taxes, net |
21,735 |
(55,661) |
(32,054) |
(44,200) |
(20,193) |
|||||||||||||||
Accounts payable and accrued expenses |
67,169 |
19,161 |
61,410 |
9,968 |
35,846 |
|||||||||||||||
Operating lease right-of-use assets |
40,953 |
20,851 |
38,319 |
102,728 |
114,611 |
|||||||||||||||
Operating lease liabilities |
(37,423) |
(63,765) |
(35,300) |
(137,751) |
(107,391) |
|||||||||||||||
Other assets and liabilities |
(34,853) |
20,009 |
(81,088) |
(182,433) |
(82,169) |
|||||||||||||||
Net cash provided by operating activities |
664,746 |
599,197 |
532,162 |
1,655,101 |
1,623,678 |
|||||||||||||||
Cash flows from investing activities: |
||||||||||||||||||||
Purchases, sales and maturities of investments, net |
(52,138) |
(2,595) |
3,969 |
(73,082) |
(36,312) |
|||||||||||||||
Business acquisitions, net of cash and restricted cash acquired |
(158,498) |
— |
— |
(158,498) |
(478,248) |
|||||||||||||||
Real estate acquisitions |
(107,212) |
(33,900) |
(41,895) |
(194,849) |
(124,462) |
|||||||||||||||
Purchases of other property, plant and equipment |
(678,277) |
(692,232) |
(565,285) |
(1,934,107) |
(1,448,174) |
|||||||||||||||
Proceeds from asset sales |
174,494 |
— |
— |
174,494 |
— |
|||||||||||||||
Net cash used in investing activities |
(821,631) |
(728,727) |
(603,211) |
(2,186,042) |
(2,087,196) |
|||||||||||||||
Cash flows from financing activities: |
||||||||||||||||||||
Proceeds from employee equity awards |
37,594 |
— |
31,727 |
77,628 |
62,118 |
|||||||||||||||
Payment of dividend distributions |
(262,362) |
(258,053) |
(240,690) |
(783,454) |
(710,177) |
|||||||||||||||
Proceeds from public offering of common stock, net of offering costs |
— |
99,599 |
196,477 |
99,599 |
1,981,375 |
|||||||||||||||
Proceeds from mortgage and loans payable |
— |
— |
— |
— |
750,790 |
|||||||||||||||
Proceeds from senior notes, net of debt discounts |
— |
2,587,910 |
— |
3,878,662 |
2,585,736 |
|||||||||||||||
Repayment of finance lease liabilities |
(31,252) |
(66,293) |
(31,765) |
(130,129) |
(74,446) |
|||||||||||||||
Repayment of mortgage and loans payable |
(10,367) |
(675,873) |
(19,431) |
(706,426) |
(808,609) |
|||||||||||||||
Repayment of senior notes |
— |
(1,400,000) |
(1,947,050) |
(1,990,650) |
(2,440,761) |
|||||||||||||||
Debt extinguishment costs |
— |
(90,664) |
(77,785) |
(99,185) |
(82,404) |
|||||||||||||||
Debt issuance costs |
— |
(21,950) |
— |
(25,102) |
(26,266) |
|||||||||||||||
Net cash provided by (used in) financing activities |
(266,387) |
174,676 |
(2,088,517) |
320,943 |
1,237,356 |
|||||||||||||||
Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash |
(7,085) |
4,965 |
18,513 |
(24,139) |
5,637 |
|||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash |
(430,357) |
50,111 |
(2,141,053) |
(234,137) |
779,475 |
|||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period |
1,821,915 |
1,771,804 |
4,807,141 |
1,625,695 |
1,886,613 |
|||||||||||||||
Cash, cash equivalents and restricted cash at end of period |
$ |
1,391,558 |
$ |
1,821,915 |
$ |
2,666,088 |
$ |
1,391,558 |
$ |
2,666,088 |
||||||||||
Supplemental cash flow information: |
||||||||||||||||||||
Cash paid for taxes |
$ |
35,755 |
$ |
32,667 |
$ |
55,473 |
$ |
118,392 |
$ |
116,549 |
||||||||||
Cash paid for interest |
$ |
86,466 |
$ |
128,636 |
$ |
115,174 |
$ |
316,157 |
$ |
363,767 |
||||||||||
Negative free cash flow (1) |
$ |
(104,747) |
$ |
(126,935) |
$ |
(75,018) |
$ |
(457,859) |
$ |
(427,206) |
||||||||||
Adjusted free cash flow (negative adjusted free cash flow) (2) |
$ |
160,963 |
$ |
(93,035) |
$ |
(33,123) |
$ |
(104,512) |
$ |
175,504 |
||||||||||
(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 |
$ |
664,746 |
$ |
599,197 |
$ |
532,162 |
$ |
1,655,101 |
$ |
1,623,678 |
||||||||||
Net cash used in investing activities as presented above |
(821,631) |
(728,727) |
(603,211) |
(2,186,042) |
(2,087,196) |
|||||||||||||||
Purchases, sales and maturities of investments, net |
52,138 |
2,595 |
(3,969) |
73,082 |
36,312 |
|||||||||||||||
Negative free cash flow |
$ |
(104,747) |
$ |
(126,935) |
$ |
(75,018) |
$ |
(457,859) |
$ |
(427,206) |
||||||||||
(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: |
|||||||||||||||||||
Negative free cash flow as defined above |
$ |
(104,747) |
$ |
(126,935) |
$ |
(75,018) |
$ |
(457,859) |
$ |
(427,206) |
||||||||||
Less business acquisitions, net of cash and restricted cash acquired |
158,498 |
— |
— |
158,498 |
478,248 |
|||||||||||||||
Less real estate acquisitions |
107,212 |
33,900 |
41,895 |
194,849 |
124,462 |
|||||||||||||||
Adjusted free cash flow (negative adjusted free cash flow) |
$ |
160,963 |
$ |
(93,035) |
$ |
(33,123) |
$ |
(104,512) |
$ |
175,504 |
|
|||||||||||||||||||||||
Non-GAAP Measures and Other Supplemental Data |
|||||||||||||||||||||||
(in thousands) |
|||||||||||||||||||||||
(unaudited) |
|||||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||
Recurring revenues |
$ |
1,563,616 |
$ |
1,542,462 |
$ |
1,432,072 |
$ |
4,617,011 |
$ |
4,191,904 |
|||||||||||||
Non-recurring revenues |
111,560 |
115,457 |
87,695 |
312,148 |
242,526 |
||||||||||||||||||
Revenues (1) |
1,675,176 |
1,657,919 |
1,519,767 |
4,929,159 |
4,434,430 |
||||||||||||||||||
Cash cost of revenues (2) |
564,499 |
544,196 |
494,187 |
1,619,505 |
1,451,674 |
||||||||||||||||||
Cash gross profit (3) |
1,110,677 |
1,113,723 |
1,025,580 |
3,309,654 |
2,982,756 |
||||||||||||||||||
Cash operating expenses (4)(7): |
|||||||||||||||||||||||
Cash sales and marketing expenses (5) |
114,112 |
115,282 |
106,317 |
342,447 |
332,995 |
||||||||||||||||||
Cash general and administrative expenses (6) |
210,267 |
201,164 |
182,018 |
610,400 |
508,265 |
||||||||||||||||||
Total cash operating expenses (4)(7) |
324,379 |
316,446 |
288,335 |
952,847 |
841,260 |
||||||||||||||||||
Adjusted EBITDA (8) |
$ |
786,298 |
$ |
797,277 |
$ |
737,245 |
$ |
2,356,807 |
$ |
2,141,496 |
|||||||||||||
Cash gross margins (9) |
66 |
% |
67 |
% |
67 |
% |
67 |
% |
67 |
% |
|||||||||||||
Adjusted EBITDA margins(10) |
47 |
% |
48 |
% |
49 |
% |
48 |
% |
48 |
% |
|||||||||||||
Adjusted EBITDA flow-through rate (11) |
(64) |
% |
39 |
% |
35 |
% |
50 |
% |
48 |
% |
|||||||||||||
FFO (12) |
$ |
407,981 |
$ |
340,873 |
$ |
298,183 |
$ |
1,166,117 |
$ |
998,883 |
|||||||||||||
AFFO (13)(14) |
$ |
628,270 |
$ |
631,937 |
$ |
579,682 |
$ |
1,887,035 |
$ |
1,672,180 |
|||||||||||||
Basic FFO per share (15) |
$ |
4.54 |
$ |
3.80 |
$ |
3.36 |
$ |
13.01 |
$ |
11.45 |
|||||||||||||
Diluted FFO per share (15) |
$ |
4.51 |
$ |
3.78 |
$ |
3.33 |
$ |
12.93 |
$ |
11.36 |
|||||||||||||
Basic AFFO per share (15) |
$ |
6.99 |
$ |
7.05 |
$ |
6.53 |
$ |
21.06 |
$ |
19.17 |
|||||||||||||
Diluted AFFO per share (15) |
$ |
6.94 |
$ |
7.01 |
$ |
6.48 |
$ |
20.92 |
$ |
19.02 |
|||||||||||||
(1) |
The geographic split of our revenues on a services basis is presented below: |
||||||||||||||||||||||
Americas Revenues: |
|||||||||||||||||||||||
Colocation |
$ |
504,711 |
$ |
497,659 |
$ |
450,030 |
$ |
1,489,829 |
$ |
1,348,482 |
|||||||||||||
Interconnection |
168,511 |
167,618 |
156,677 |
501,016 |
460,993 |
||||||||||||||||||
Managed infrastructure |
43,313 |
40,734 |
28,954 |
122,532 |
83,372 |
||||||||||||||||||
Other |
4,757 |
451 |
3,911 |
7,246 |
14,212 |
||||||||||||||||||
Recurring revenues |
721,292 |
706,462 |
639,572 |
2,120,623 |
1,907,059 |
||||||||||||||||||
Non-recurring revenues |
41,761 |
44,181 |
32,760 |
119,013 |
88,597 |
||||||||||||||||||
Revenues |
$ |
763,053 |
$ |
750,643 |
$ |
672,332 |
$ |
2,239,636 |
$ |
1,995,656 |
|||||||||||||
EMEA Revenues: |
|||||||||||||||||||||||
Colocation |
$ |
400,395 |
$ |
398,703 |
$ |
391,773 |
$ |
1,187,373 |
$ |
1,135,247 |
|||||||||||||
Interconnection |
65,809 |
65,258 |
55,700 |
192,717 |
155,145 |
||||||||||||||||||
Managed infrastructure |
31,445 |
31,176 |
30,690 |
94,732 |
89,839 |
||||||||||||||||||
Other |
5,639 |
3,682 |
5,581 |
14,367 |
14,177 |
||||||||||||||||||
Recurring revenues |
503,288 |
498,819 |
483,744 |
1,489,189 |
1,394,408 |
||||||||||||||||||
Non-recurring revenues |
41,939 |
39,110 |
34,339 |
112,684 |
90,674 |
||||||||||||||||||
Revenues |
$ |
545,227 |
$ |
537,929 |
$ |
518,083 |
$ |
1,601,873 |
$ |
1,485,082 |
|||||||||||||
Asia-Pacific Revenues: |
|||||||||||||||||||||||
Colocation |
$ |
259,092 |
$ |
259,573 |
$ |
236,762 |
$ |
773,223 |
$ |
686,658 |
|||||||||||||
Interconnection |
56,789 |
54,898 |
48,565 |
164,869 |
136,376 |
||||||||||||||||||
Managed infrastructure |
21,572 |
22,094 |
22,614 |
66,415 |
66,588 |
||||||||||||||||||
Other |
1,583 |
616 |
815 |
2,692 |
815 |
||||||||||||||||||
Recurring revenues |
339,036 |
337,181 |
308,756 |
1,007,199 |
890,437 |
||||||||||||||||||
Non-recurring revenues |
27,860 |
32,166 |
20,596 |
80,451 |
63,255 |
||||||||||||||||||
Revenues |
$ |
366,896 |
$ |
369,347 |
$ |
329,352 |
$ |
1,087,650 |
$ |
953,692 |
|||||||||||||
Worldwide Revenues: |
|||||||||||||||||||||||
Colocation |
$ |
1,164,198 |
$ |
1,155,935 |
$ |
1,078,565 |
$ |
3,450,425 |
$ |
3,170,387 |
|||||||||||||
Interconnection |
291,109 |
287,774 |
260,942 |
858,602 |
752,514 |
||||||||||||||||||
Managed infrastructure |
96,330 |
94,004 |
82,258 |
283,679 |
239,799 |
||||||||||||||||||
Other |
11,979 |
4,749 |
10,307 |
24,305 |
29,204 |
||||||||||||||||||
Recurring revenues |
1,563,616 |
1,542,462 |
1,432,072 |
4,617,011 |
4,191,904 |
||||||||||||||||||
Non-recurring revenues |
111,560 |
115,457 |
87,695 |
312,148 |
242,526 |
||||||||||||||||||
Revenues |
$ |
1,675,176 |
$ |
1,657,919 |
$ |
1,519,767 |
$ |
4,929,159 |
$ |
4,434,430 |
|||||||||||||
(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 |
$ |
885,650 |
$ |
865,120 |
$ |
767,979 |
$ |
2,561,987 |
$ |
2,243,605 |
|||||||||||||
Depreciation, amortization and accretion expense |
(311,438) |
(310,916) |
(265,936) |
(914,294) |
(767,077) |
||||||||||||||||||
Stock-based compensation expense |
(9,713) |
(10,008) |
(7,856) |
(28,188) |
(24,854) |
||||||||||||||||||
Cash cost of revenues |
$ |
564,499 |
$ |
544,196 |
$ |
494,187 |
$ |
1,619,505 |
$ |
1,451,674 |
|||||||||||||
The geographic split of our cash cost of revenues is presented below: |
|||||||||||||||||||||||
|
$ |
239,172 |
$ |
234,679 |
$ |
196,731 |
$ |
667,311 |
$ |
576,431 |
|||||||||||||
EMEA cash cost of revenues |
204,174 |
196,661 |
189,423 |
600,018 |
554,229 |
||||||||||||||||||
|
121,153 |
112,856 |
108,033 |
352,176 |
321,014 |
||||||||||||||||||
Cash cost of revenues |
$ |
564,499 |
$ |
544,196 |
$ |
494,187 |
$ |
1,619,505 |
$ |
1,451,674 |
|||||||||||||
(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 |
$ |
517,622 |
$ |
507,615 |
$ |
452,077 |
$ |
1,509,520 |
$ |
1,329,138 |
|||||||||||||
Depreciation and amortization expense |
(108,246) |
(106,842) |
(96,350) |
(317,466) |
(281,074) |
||||||||||||||||||
Stock-based compensation expense |
(84,997) |
(84,327) |
(67,392) |
(239,207) |
(206,804) |
||||||||||||||||||
Cash operating expense |
$ |
324,379 |
$ |
316,446 |
$ |
288,335 |
$ |
952,847 |
$ |
841,260 |
|||||||||||||
(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 |
$ |
182,997 |
$ |
185,610 |
$ |
172,727 |
$ |
551,434 |
$ |
531,301 |
|||||||||||||
Depreciation and amortization expense |
(48,320) |
(49,549) |
(48,780) |
(149,940) |
(143,916) |
||||||||||||||||||
Stock-based compensation expense |
(20,565) |
(20,779) |
(17,630) |
(59,047) |
(54,390) |
||||||||||||||||||
Cash sales and marketing expense |
$ |
114,112 |
$ |
115,282 |
$ |
106,317 |
$ |
342,447 |
$ |
332,995 |
|||||||||||||
(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 |
$ |
334,625 |
$ |
322,005 |
$ |
279,350 |
$ |
958,086 |
$ |
797,837 |
|||||||||||||
Depreciation and amortization expense |
(59,926) |
(57,293) |
(47,570) |
(167,526) |
(137,158) |
||||||||||||||||||
Stock-based compensation expense |
(64,432) |
(63,548) |
(49,762) |
(180,160) |
(152,414) |
||||||||||||||||||
Cash general and administrative expense |
$ |
210,267 |
$ |
201,164 |
$ |
182,018 |
$ |
610,400 |
$ |
508,265 |
|||||||||||||
(7) |
The geographic split of our cash operating expense, or cash SG&A, as defined above, is presented below: |
||||||||||||||||||||||
|
$ |
202,113 |
$ |
190,040 |
$ |
185,051 |
$ |
580,141 |
$ |
532,955 |
|||||||||||||
EMEA cash SG&A |
73,500 |
78,742 |
65,444 |
228,213 |
193,882 |
||||||||||||||||||
|
48,766 |
47,664 |
37,840 |
144,493 |
114,423 |
||||||||||||||||||
Cash SG&A |
$ |
324,379 |
$ |
316,446 |
$ |
288,335 |
$ |
952,847 |
$ |
841,260 |
|||||||||||||
(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: |
||||||||||||||||||||||
Income from operations |
$ |
282,121 |
$ |
278,654 |
$ |
288,350 |
$ |
858,437 |
$ |
824,322 |
|||||||||||||
Depreciation, amortization and accretion expense |
419,684 |
417,758 |
362,286 |
1,231,760 |
1,048,151 |
||||||||||||||||||
Stock-based compensation expense |
94,710 |
94,335 |
75,248 |
267,395 |
231,658 |
||||||||||||||||||
Impairment charges |
— |
— |
7,306 |
— |
7,306 |
||||||||||||||||||
Transaction costs |
5,197 |
6,985 |
5,840 |
13,364 |
30,987 |
||||||||||||||||||
Gain on asset sales |
(15,414) |
(455) |
(1,785) |
(14,149) |
(928) |
||||||||||||||||||
Adjusted EBITDA |
$ |
786,298 |
$ |
797,277 |
$ |
737,245 |
$ |
2,356,807 |
$ |
2,141,496 |
|||||||||||||
The geographic split of our adjusted EBITDA is presented below: |
|||||||||||||||||||||||
|
$ |
26,520 |
$ |
27,745 |
$ |
50,657 |
$ |
135,830 |
$ |
156,388 |
|||||||||||||
|
219,106 |
222,413 |
182,899 |
644,225 |
536,542 |
||||||||||||||||||
|
70,495 |
69,982 |
55,044 |
198,739 |
174,059 |
||||||||||||||||||
|
4,478 |
6,239 |
3,735 |
10,956 |
20,288 |
||||||||||||||||||
|
1,169 |
(455) |
(1,785) |
2,434 |
(1,007) |
||||||||||||||||||
|
$ |
321,768 |
$ |
325,924 |
$ |
290,550 |
$ |
992,184 |
$ |
886,270 |
|||||||||||||
EMEA income from operations |
$ |
153,424 |
$ |
131,158 |
$ |
148,992 |
$ |
404,367 |
$ |
413,150 |
|||||||||||||
EMEA depreciation, amortization and accretion expense |
115,026 |
115,702 |
101,265 |
341,941 |
286,958 |
||||||||||||||||||
EMEA stock-based compensation expense |
15,022 |
15,114 |
12,770 |
42,266 |
36,012 |
||||||||||||||||||
EMEA transaction costs |
664 |
552 |
189 |
1,651 |
772 |
||||||||||||||||||
EMEA (gain) loss on asset sales |
(16,583) |
— |
— |
(16,583) |
79 |
||||||||||||||||||
EMEA adjusted EBITDA |
$ |
267,553 |
$ |
262,526 |
$ |
263,216 |
$ |
773,642 |
$ |
736,971 |
|||||||||||||
|
$ |
102,177 |
$ |
119,751 |
$ |
88,701 |
$ |