EX-99.1

Exhibit 99.1

EQUINIX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (1)

(in thousands, except per share data)

(unaudited)


	Three Months Ended
	September 30, 2013			June 30, 2013			March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012
Recurring revenues	$	515,566		$	501,814		$	494,522		$	482,826		$	460,482		$	433,615		$	420,145
Non-recurring revenues		27,518			27,057			21,612			23,233			24,353			21,915			20,807

Revenues		543,084			528,871			516,134			506,059			484,835			455,530			440,952
Cost of revenues		268,960			267,109			258,591			249,329			250,946			225,604			218,738

Gross profit		274,124			261,762			257,543			256,730			233,889			229,926			222,214

Operating expenses:
Sales and marketing		61,619			59,478			58,276			55,690			53,211			47,603			46,410
General and administrative		96,874			88,632			90,818			86,536			83,290			80,268			78,172
Restructuring charges		—			(4,837	)		—			—			—			—			—
Impairment charges		—			—			—			9,861			—			—			—
Acquisition costs		438			2,526			3,662			1,939			4,542			1,666			675

Total operating expenses		158,931			145,799			152,756			154,026			141,043			129,537			125,257

Income from operations		115,193			115,963			104,787			102,704			92,846			100,389			96,957

Interest and other income (expense):
Interest income		929			917			747			758			1,054			963			691
Interest expense		(61,957	)		(61,001	)		(60,331	)		(50,516	)		(50,207	)		(46,787	)		(52,818	)
Loss on debt extinguishment		—			(93,602	)		—			—			(5,204	)		—			—
Other income (expense)		985			2,768			(459	)		(717	)		507			(1,844	)		(154	)

Total interest and other, net		(60,043	)		(150,918	)		(60,043	)		(50,475	)		(53,850	)		(47,668	)		(52,281	)

Income (loss) from continuing operations before income taxes		55,150			(34,955	)		44,744			52,229			38,996			52,721			44,676
Income tax benefit (expense)		(12,397	)		9,668			(11,460	)		(17,476	)		(12,348	)		(16,271	)		(12,469	)

Net income (loss) from continuing operations		42,753			(25,287	)		33,284			34,753			26,648			36,450			32,207
Net income from discontinued operations, net of tax		—			—			—			6			679			350			199
Gain on sale of discontinued operations, net of tax		—			—			—			11,852			—			—			—

Net income (loss)		42,753			(25,287	)		33,284			46,611			27,327			36,800			32,406
Net income attributable to redeemable non-controlling interests		(282	)		(529	)		(441	)		(1,273	)		(362	)		(1,193	)		(288	)

Net income (loss) attributable to Equinix	$	42,471		$	(25,816	)	$	32,843		$	45,338		$	26,965		$	35,607		$	32,118

Net income (loss) per share attributable to Equinix:
Basic net income (loss) per share from continuing operations	$	0.86		$	(0.52	)	$	0.67		$	0.69		$	0.54		$	0.73		$	0.68
Basic net income per share from discontinued operations		—			—			—			0.24			0.02			0.01			0.01

Basic net income (loss) per share (2)	$	0.86		$	(0.52	)	$	0.67		$	0.93		$	0.56		$	0.74		$	0.69

Diluted net income (loss) per share from continuing operations	$	0.83		$	(0.52	)	$	0.65		$	0.67		$	0.53		$	0.71		$	0.66
Diluted net income per share from discontinued operations		—			—			—			0.22			0.01			—			0.01

Diluted net income (loss) per share (3)	$	0.83		$	(0.52	)	$	0.65		$	0.89		$	0.54		$	0.71		$	0.67

Shares used in computing basic net income (loss) per share		49,555			49,379			49,029			48,673			48,361			48,016			46,955

Shares used in computing diluted net income (loss) per share		53,581			49,379			53,480			52,917			52,655			52,351			51,061

(1) In November 2013, we completed our evaluation of whether a lengthening of the estimated period over which non-recurring installation fees are recognized, which we originally incorrectly considered a change in estimate that we began to recognize prospectively beginning in the second quarter of 2013, should have been applied in earlier periods. We concluded that these longer lives should have been identified and utilized for revenue recognition purposes beginning in 2006. We assessed the materiality of this error individually and in the aggregate on prior periods’ financial statements in accordance with the SEC’s Staff Accounting Bulletins No. 99 and 108 and, based on an analysis of quantitative and qualitative factors, determined that the error was not material to any of our prior interim and annual financial statements and, therefore, the previously-issued financial statements could continue to be relied upon and that amendment of previously filed reports with the SEC was not required. We also determined that correcting the cumulative amount of the non-recurring installation fees of $27.2 million as of December 31, 2012 in 2013 would be material to the projected 2013 consolidated financial statements, and, as such, we revised our previously-issued consolidated financial statements accordingly, commencing with our Form 10-Q for the quarterly period ended September 30, 2013. Such adjustment has no effect on our total cash flows. As part of the revision to our previously-issued consolidated financial statements noted above, we also revised our consolidated financial statements for several previously identified immaterial errors that were either uncorrected or corrected in a period subsequent to the period in which the error originated, as more fully described in Note 2 of our Form 10-Q filed for the quarterly period ended September 30, 2013. The financial results contained herein are the as revised financial statements.
(2) The net income (loss) used in the computation of basic net income per share attributable to Equinix is presented below:

Net income (loss) from continuing operations	$	42,753		$	(25,287	)	$	33,284		$	34,753		$	26,648		$	36,450		$	32,207
Net income attributable to non-controlling interests		(282	)		(529	)		(441	)		(1,273	)		(362	)		(1,193	)		(288	)
Adjustments attributable to redemption value of non-controlling interests		—			—			—			—			—			—			209

Net income (loss) from continuing operations attributable to Equinix, basic		42,471			(25,816	)		32,843			33,480			26,286			35,257			32,128
Net income from discontinued operations		—			—			—			11,858			679			350			199

Net income (loss) attributable to Equinix, basic	$	42,471		$	(25,816	)	$	32,843		$	45,338		$	26,965		$	35,607		$	32,327


(3) The net income (loss) used in the computation of diluted net income per share attributable to Equinix is presented below:

Net income (loss) from continuing operations attributable to Equinix, basic	$	42,471		$	(25,816	)	$	32,843		$	33,480		$	26,286		$	35,257		$	32,128
Interest on convertible debt		1,865			—			1,851			1,707			1,696			1,678			1,699

Net income (loss) from continuing operations attributable to Equinix, diluted		44,336			(25,816	)		34,694			35,187			27,982			36,935			33,827
Net income from discontinued operations		—			—			—			11,858			679			350			199

Net income (loss) attributable to Equinix, diluted	$	44,336		$	(25,816	)	$	34,694		$	47,045		$	28,661		$	37,285		$	34,026

EQUINIX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - NON-GAAP PRESENTATION (1)

(in thousands)

(unaudited)


	Three Months Ended
	September 30, 2013			June 30, 2013			March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012
Recurring revenues	$	515,566		$	501,814		$	494,522		$	482,826		$	460,482		$	433,615		$	420,145
Non-recurring revenues		27,518			27,057			21,612			23,233			24,353			21,915			20,807

Revenues (2)		543,084			528,871			516,134			506,059			484,835			455,530			440,952

Cash cost of revenues (3)		174,111			168,421			162,010			158,086			157,425			141,352			137,929

Cash gross profit (4)		368,973			360,450			354,124			347,973			327,410			314,178			303,023

Cash operating expenses (5):
Cash sales and marketing expenses (6)		48,172			46,430			46,280			43,996			42,120			38,689			38,119
Cash general and administrative expenses (7)		72,356			65,985			66,956			64,291			60,274			59,069			58,169

Total cash operating expenses (8)		120,528			112,415			113,236			108,287			102,394			97,758			96,288

Adjusted EBITDA (9)	$	248,445		$	248,035		$	240,888		$	239,686		$	225,016		$	216,420		$	206,735

Cash gross margins (10)		68	%		68	%		69	%		69	%		68	%		69	%		69	%

Adjusted EBITDA margins (11)		46	%		47	%		47	%		47	%		46	%		48	%		47	%

Adjusted EBITDA flow-through rate (12)		3	%		56	%		12	%		69	%		29	%		66	%		66	%

(1) In November 2013, we completed our evaluation of whether a lengthening of the estimated period over which non-recurring installation fees are recognized, which we originally incorrectly considered a change in estimate that we began to recognize prospectively beginning in the second quarter of 2013, should have been applied in earlier periods. We concluded that these longer lives should have been identified and utilized for revenue recognition purposes beginning in 2006. We assessed the materiality of this error individually and in the aggregate on prior periods’ financial statements in accordance with the SEC’s Staff Accounting Bulletins No. 99 and 108 and, based on an analysis of quantitative and qualitative factors, determined that the error was not material to any of our prior interim and annual financial statements and, therefore, the previously-issued financial statements could continue to be relied upon and that amendment of previously filed reports with the SEC was not required. We also determined that correcting the cumulative amount of the non-recurring installation fees of $27.2 million as of December 31, 2012 in 2013 would be material to the projected 2013 consolidated financial statements, and, as such, we revised our previously-issued consolidated financial statements accordingly, commencing with our Form 10-Q for the quarterly period ended September 30, 2013. Such adjustment has no effect on our total cash flows. As part of the revision to our previously-issued consolidated financial statements noted above, we also revised our consolidated financial statements for several previously identified immaterial errors that were either uncorrected or corrected in a period subsequent to the period in which the error originated, as more fully described in Note 2 of our Form 10-Q filed for the quarterly period ended September 30, 2013. The financial results contained herein are the as revised financial statements.
(2) The geographic split of our revenues on a services basis is presented below:

Americas Revenues:
Colocation	$	230,583		$	226,290		$	223,285		$	216,052		$	212,805		$	209,536		$	203,702
Interconnection		61,984			59,800			58,206			56,426			54,943			53,048			51,739
Managed infrastructure		12,905			13,567			13,147			11,981			12,017			12,125			13,464
Rental		818			445			460			490			469			445			439

Recurring revenues		306,290			300,102			295,098			284,949			280,234			275,154			269,344
Non-recurring revenues		13,123			13,366			10,694			10,023			11,602			10,874			7,663

Revenues		319,413			313,468			305,792			294,972			291,836			286,028			277,007

EMEA Revenues:
Colocation		108,906			103,916			100,532			95,823			91,512			87,820			83,951
Interconnection		9,233			8,854			8,381			7,989			7,188			4,192			3,824
Managed infrastructure		6,215			5,734			4,249			4,596			5,112			3,262			3,414
Rental		116			138			120			325			314			336			344

Recurring revenues		124,470			118,642			113,282			108,733			104,126			95,610			91,533
Non-recurring revenues		8,784			8,367			6,687			8,593			7,699			6,955			9,671

Revenues		133,254			127,009			119,969			117,326			111,825			102,565			101,204

Asia-Pacific Revenues:
Colocation		69,080			67,881			71,014			73,824			61,470			50,139			47,060
Interconnection		10,433			9,699			9,404			9,090			8,550			7,794			7,320
Managed infrastructure		5,293			5,490			5,724			6,230			6,102			4,918			4,888

Recurring revenues		84,806			83,070			86,142			89,144			76,122			62,851			59,268
Non-recurring revenues		5,611			5,324			4,231			4,617			5,052			4,086			3,473

Revenues		90,417			88,394			90,373			93,761			81,174			66,937			62,741

Worldwide Revenues:
Colocation		408,569			398,087			394,831			385,699			365,787			347,495			334,713
Interconnection		81,650			78,353			75,991			73,505			70,681			65,034			62,883
Managed infrastructure		24,413			24,791			23,120			22,807			23,231			20,305			21,766
Rental		934			583			580			815			783			781			783

Recurring revenues		515,566			501,814			494,522			482,826			460,482			433,615			420,145
Non-recurring revenues		27,518			27,057			21,612			23,233			24,353			21,915			20,807

Revenues	$	543,084		$	528,871		$	516,134		$	506,059		$	484,835		$	455,530		$	440,952


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

Cost of revenues	$	268,960		$	267,109		$	258,591		$	249,329		$	250,946		$	225,604		$	218,738
Depreciation, amortization and accretion expense		(92,579	)		(96,894	)		(94,979	)		(89,602	)		(91,795	)		(82,718	)		(79,492	)
Stock-based compensation expense		(2,270	)		(1,794	)		(1,602	)		(1,641	)		(1,726	)		(1,534	)		(1,317	)

Cash cost of revenues	$	174,111		$	168,421		$	162,010		$	158,086		$	157,425		$	141,352		$	137,929


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

Americas cash cost of revenues	$	92,882		$	89,890		$	87,724		$	82,665		$	84,771		$	80,806		$	80,650
EMEA cash cost of revenues		47,924			47,304			43,629			43,888			42,615			37,392			35,353
Asia-Pacific cash cost of revenues		33,305			31,227			30,657			31,533			30,039			23,154			21,926

Cash cost of revenues	$	174,111		$	168,421		$	162,010		$	158,086		$	157,425		$	141,352		$	137,929


(4) We define cash gross profit as revenues less cash cost of revenues (as defined above).
(5) We define cash operating expenses as operating expenses less depreciation, amortization and stock-based compensation. We also refer to cash operating expenses as cash selling, general and administrative expenses or “cash SG&A”.
(6) We define cash sales and marketing expenses as sales and marketing expenses less depreciation, amortization and stock-based compensation as presented below:

Sales and marketing expenses	$	61,619		$	59,478		$	58,276		$	55,690		$	53,211		$	47,603		$	46,410
Depreciation and amortization expense		(6,197	)		(6,223	)		(6,275	)		(6,469	)		(6,296	)		(4,239	)		(4,256	)
Stock-based compensation expense		(7,250	)		(6,825	)		(5,721	)		(5,225	)		(4,795	)		(4,675	)		(4,035	)

Cash sales and marketing expenses	$	48,172		$	46,430		$	46,280		$	43,996		$	42,120		$	38,689		$	38,119


(7) We define cash general and administrative expenses as general and administrative expenses less depreciation, amortization and stock-based compensation as presented below:

General and administrative expenses	$	96,874		$	88,632		$	90,818		$	86,536		$	83,290		$	80,268		$	78,172
Depreciation and amortization expense		(6,758	)		(7,072	)		(7,349	)		(7,480	)		(7,431	)		(7,291	)		(6,474	)
Stock-based compensation expense		(17,760	)		(15,575	)		(16,513	)		(14,765	)		(15,585	)		(13,908	)		(13,529	)

Cash general and administrative expenses	$	72,356		$	65,985		$	66,956		$	64,291		$	60,274		$	59,069		$	58,169


(8) Our cash operating expenses, or cash SG&A, as defined above, is presented below:

Cash sales and marketing expenses	$	48,172		$	46,430		$	46,280		$	43,996		$	42,120		$	38,689		$	38,119
Cash general and administrative expenses		72,356			65,985			66,956			64,291			60,274			59,069			58,169

Cash SG&A	$	120,528		$	112,415		$	113,236		$	108,287		$	102,394		$	97,758		$	96,288


The geographic split of our cash operating expenses, or cash SG&A, is presented below:

Americas cash SG&A	$	76,227		$	69,287		$	73,551		$	65,466		$	67,136		$	65,774		$	66,849
EMEA cash SG&A		28,191			29,016			27,611			28,043			22,818			20,100			19,099
Asia-Pacific cash SG&A		16,110			14,112			12,074			14,778			12,440			11,884			10,340

Cash SG&A	$	120,528		$	112,415		$	113,236		$	108,287		$	102,394		$	97,758		$	96,288


(9) We define adjusted EBITDA as income from continuing operations plus depreciation, amortization, accretion, stock-based compensation expense, restructuring charges, impairment charges and acquisition costs as presented below:

Income from continuing operations	$	115,193		$	115,963		$	104,787		$	102,704		$	92,846		$	100,389		$	96,957
Depreciation, amortization and accretion expense		105,534			110,189			108,603			103,551			105,522			94,248			90,222
Stock-based compensation expense		27,280			24,194			23,836			21,631			22,106			20,117			18,881
Restructuring charges		—			(4,837	)		—			—			—			—			—
Impairment charges		—			—			—			9,861			—			—			—
Acquisition costs		438			2,526			3,662			1,939			4,542			1,666			675

Adjusted EBITDA	$	248,445		$	248,035		$	240,888		$	239,686		$	225,016		$	216,420		$	206,735


The geographic split of our adjusted EBITDA is presented below:

Americas income from continuing operations	$	70,691		$	73,673		$	59,379		$	63,394		$	62,567		$	64,591		$	57,948
Americas depreciation, amortization and accretion expense		58,939			65,149			63,296			59,833			60,394			59,633			56,721
Americas stock-based compensation expense		20,591			18,168			18,444			16,641			16,968			15,225			14,929
Americas restructuring charges		—			(4,837	)		—			—			—			—			—
Americas impairment charges		—			—			—			6,972			—			—			—
Americas acquisition costs		83			2,138			3,398			1			—			(1	)		(90	)

Americas adjusted EBITDA		150,304			154,291			144,517			146,841			139,929			139,448			129,508

EMEA income from continuing operations		28,685			23,811			22,538			18,605			20,432			22,830			27,147
EMEA depreciation, amortization and accretion expense		24,503			23,424			23,071			22,554			22,054			18,329			17,312
EMEA stock-based compensation expense		3,596			3,065			3,038			2,633			2,900			2,673			2,164
EMEA acquisition costs		355			389			82			1,603			1,006			1,241			129

EMEA adjusted EBITDA		57,139			50,689			48,729			45,395			46,392			45,073			46,752

Asia-Pacific income from continuing operations		15,817			18,479			22,870			20,705			9,847			12,968			11,862
Asia-Pacific depreciation, amortization and accretion expense		22,092			21,616			22,236			21,164			23,074			16,286			16,189
Asia-Pacific stock-based compensation expense		3,093			2,961			2,354			2,357			2,238			2,219			1,788
Asia-Pacific impairment charges		—			—			—			2,889			—			—			—
Asia-Pacific acquisition costs		—			(1	)		182			335			3,536			426			636

Asia-Pacific adjusted EBITDA		41,002			43,055			47,642			47,450			38,695			31,899			30,475

Adjusted EBITDA	$	248,445		$	248,035		$	240,888		$	239,686		$	225,016		$	216,420		$	206,735


(10) 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	%		71	%		71	%		72	%		71	%		72	%		71	%

EMEA cash gross margins		64	%		63	%		64	%		63	%		62	%		64	%		65	%

Asia-Pacific cash gross margins		63	%		65	%		66	%		66	%		63	%		65	%		65	%


(11) We define adjusted EBITDA margins as adjusted EBITDA divided by revenues.

Americas adjusted EBITDA margins		47	%		49	%		47	%		50	%		48	%		49	%		47	%

EMEA adjusted EBITDA margins		43	%		40	%		41	%		39	%		41	%		44	%		46	%

Asia-Pacific adjusted EBITDA margins		45	%		49	%		53	%		51	%		48	%		48	%		49	%


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

Adjusted EBITDA - current period	$	248,445		$	248,035		$	240,888		$	239,686		$	225,016		$	216,420		$	206,735
Less adjusted EBITDA - prior period		(248,035	)		(240,888	)		(239,686	)		(225,016	)		(216,420	)		(206,735	)		(192,880	)

Adjusted EBITDA growth	$	410		$	7,147		$	1,202		$	14,670		$	8,596		$	9,685		$	13,855

Revenues - current period	$	543,084		$	528,871		$	516,134		$	506,059		$	484,835		$	455,530		$	440,952
Less revenues - prior period		(528,871	)		(516,134	)		(506,059	)		(484,835	)		(455,530	)		(440,952	)		(419,849	)

Revenue growth	$	14,213		$	12,737		$	10,075		$	21,224		$	29,305		$	14,578		$	21,103

Adjusted EBITDA flow-through rate		3	%		56	%		12	%		69	%		29	%		66	%		66	%