Exhibit 99.1

Equinix Reports Third Quarter 2022 Results



Best Gross and Net Bookings Performance in Company History

REDWOOD CITY, Calif., Nov. 2, 2022 /PRNewswire/ --

Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company™, today reported results for the quarter ended September 30, 2022. Equinix uses certain non-GAAP financial measures, which are described further below and reconciled to the most comparable GAAP financial measures after the presentation of our GAAP financial statements. All per share results are presented on a fully diluted basis.

Third Quarter 2022 Results Summary

2022 Annual Guidance Summary

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

Equinix Quote

Charles Meyers, President and CEO, Equinix:

"We had another record quarter as global demand for digital infrastructure continues to grow and customer preferences trend convincingly toward architectures that are highly distributed, persistently hybrid, deeply cloud-connected, and increasingly on-demand — all factors fueling our position as a trusted partner in digital transformation. Even in a complex and challenging macro environment, our expansive global reach and robust interconnected ecosystems continue to attract a wide and diverse customer set, as businesses prioritize digital investments and embrace Platform Equinix as a point of nexus to support hybrid and multicloud."

Business Highlights

Business Outlook

For the fourth quarter of 2022, the Company expects revenues to range between $1.848 and $1.868 billion, an increase of approximately 1% over the previous quarter, or a normalized and constant currency increase of 2 - 3%. This guidance includes a negative $35 million foreign currency impact when compared to the average FX rates in Q3 2022. Adjusted EBITDA is expected to range between $821 and $841 million. Adjusted EBITDA includes an increase in seasonal utility costs as well as an acceleration of discretionary costs into Q4, and a negative $16 million foreign currency impact when compared to the average FX rates in Q3 2022. For the quarter, integration costs from acquisitions are expected to be $6 million. Recurring capital expenditures are expected to range between $76 and $86 million.

For the full year of 2022, total revenues are expected to range between $7.240 and $7.260 billion, a 9% increase over the previous year, or a normalized and constant currency increase of 10 - 11%. This updated full-year guidance includes a raise of $15 million from better-than-expected business performance, offset by a $44 million foreign currency impact when compared to the prior guidance rates. Adjusted EBITDA is expected to range between $3.352 and $3.372 billion, an adjusted EBITDA margin of 46%. This updated full-year guidance includes a raise of $46 million from better-than-expected business performance and lower integration costs, partially offset by a $22 million foreign currency impact when compared to the prior guidance rates. For the year, the Company now expects to incur $20 million in integration costs related to acquisitions. AFFO is expected to range between $2.676 and $2.696 billion, an increase of 9 - 10% over the previous year, or a normalized and constant currency increase of 10 - 11%. This updated AFFO guidance includes a raise of $52 million from better-than-expected business performance and lower integration costs, offset by a negative $17 million foreign currency impact when compared to the prior guidance rates. AFFO per share is expected to range between $29.10 and $29.32, an increase of 7 - 8% over the previous year, or a normalized and constant currency increase of 9 - 10%. Total capital expenditures are expected to range between $2.138 and $2.288 billion. Non-recurring capital expenditures, including xScale-related capital expenditures, are expected to range between $1.953 and $2.093 billion, and recurring capital expenditures are expected to range between $185 and $195 million. xScale-related on-balance sheet capital expenditures are expected to range between $125 and $145 million, which we anticipate will be reimbursed to Equinix from both the current and future xScale JVs.

The U.S. dollar exchange rates used for 2022 guidance, taking into consideration the impact of our current foreign currency hedges, have been updated to $1.11 to the Euro, $1.28 to the Pound, S$1.44 to the U.S. Dollar, ¥145 to the U.S. Dollar, A$1.56 to the U.S. Dollar, HK$7.85 to the U.S. Dollar, R$5.36 to the U.S. Dollar and C$1.38 to the U.S. Dollar. The Q3 2022 global revenue breakdown by currency for the Euro, British Pound, Singapore Dollar, Japanese Yen, Australian Dollar, Hong Kong Dollar, Brazilian Real and Canadian Dollar is 17%, 8%, 8%, 6%, 4%, 3%, 3% and 3%, respectively.

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

Q3 2022 Results Conference Call and Replay Information

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

A replay of the call will be available one hour after the call through Wednesday, February 15, 2023, by dialing 1-866-363-1806 and referencing the passcode 2022. In addition, the webcast will be available at www.equinix.com/investors (no password required).

Investor Presentation and Supplemental Financial Information

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

Additional Resources

About Equinix

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

Non-GAAP Financial Measures

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

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

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

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

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

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

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

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

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

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

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

Forward-Looking Statements

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

EQUINIX, INC.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)



Three Months Ended


Nine Months Ended


September 30,
2022


June 30,
2022


September 30,
2021


September 30,
2022


September 30,
2021

Recurring revenues

$ 1,748,132


$   1,707,451


$ 1,563,616


$ 5,097,907


$ 4,617,011

Non-recurring revenues

92,527


109,703


111,560


294,353


312,148

Revenues

1,840,659


1,817,154


1,675,176


5,392,260


4,929,159

Cost of revenues

934,669


930,257


885,650


2,780,801


2,561,987

Gross profit

905,990


886,897


789,526


2,611,459


2,367,172

Operating expenses:










Sales and marketing

193,089


193,727


182,997


579,327


551,434

General and administrative

375,483


370,348


334,625


1,098,518


958,086

Transaction costs

2,007


5,063


5,197


11,310


13,364

(Gain) loss on asset sales

2,252


(94)


(15,414)


3,976


(14,149)

Total operating expenses

572,831


569,044


507,405


1,693,131


1,508,735

Income from operations

333,159


317,853


282,121


918,328


858,437

Interest and other income (expense):









Interest income

11,192


4,508


411


17,806


1,514

Interest expense

(91,346)


(90,826)


(78,943)


(262,137)


(255,855)

Other income (expense)

(6,735)


(6,238)


1,482


(22,522)


(44,845)

Gain (loss) on debt extinguishment

75


(420)


179


184


(115,339)

Total interest and other, net

(86,814)


(92,976)


(76,871)


(266,669)


(414,525)

Income before income taxes

246,345


224,877


205,250


651,659


443,912

Income tax expense

(34,606)


(8,635)


(53,224)


(75,985)


(67,325)

Net income

211,739


216,242


152,026


575,674


376,587

Net (income) loss attributable to non-
     controlling interests

68


80


190


(92)


330

Net income attributable to Equinix

$     211,807


$       216,322


$     152,216


$     575,582


$     376,917

Net income per share attributable to Equinix:

Basic net income per share

$           2.30


$             2.38


$           1.69


$           6.31


$           4.21

Diluted net income per share

$           2.30


$             2.37


$           1.68


$           6.29


$           4.18

Shares used in computing basic net
     income per share

91,896


91,036


89,858


91,234


89,614

Shares used in computing diluted net
     income per share

92,135


91,262


90,467


91,519


90,202

EQUINIX, INC.

Condensed Consolidated Statements of Comprehensive Income

(in thousands)

(unaudited)



Three Months Ended


Nine Months Ended


September 30,
2022


June 30,
2022


September 30,
2021


September 30,
2022


September 30,
2021

Net income

$     211,739


$     216,242


$     152,026


$     575,674


$     376,587

Other comprehensive income (loss), net of tax:







Foreign currency translation adjustment
     ("CTA") loss

(703,640)


(740,428)


(260,011)


(1,566,602)


(444,691)

Net investment hedge CTA gain

360,350


353,953


131,080


805,661


264,219

Unrealized gain on cash flow hedges

6,120


20,617


28,270


90,774


52,048

Net actuarial gain (loss) on defined
     benefit plans

(19)


(19)


14


(59)


41

Total other comprehensive loss,
     net of tax

(337,189)


(365,877)


(100,647)


(670,226)


(128,383)

Comprehensive income (loss), net of tax

(125,450)


(149,635)


51,379


(94,552)


248,204

Net (income) loss attributable to non-
     controlling interests

68


80


190


(92)


330

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

28


35



60


(10)

Comprehensive income (loss)
     attributable to Equinix

$   (125,354)


$   (149,520)


$       51,569


$     (94,584)


$     248,524

EQUINIX, INC.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)



September 30, 2022


December 31, 2021

Assets




Cash and cash equivalents

$                  2,500,816


$              1,536,358

Accounts receivable, net

778,858


681,809

Other current assets

656,865


462,739

Assets held for sale

80,516


276,195

          Total current assets

4,017,055


2,957,101

Property, plant and equipment, net

15,140,597


15,445,775

Operating lease right-of-use assets

1,377,195


1,282,418

Goodwill

5,393,708


5,372,071

Intangible assets, net

1,892,781


1,935,267

Other assets

1,504,530


926,066

          Total assets

$                29,325,866


$            27,918,698

Liabilities and Stockholders' Equity




Accounts payable and accrued expenses

$                     922,545


$                 879,144

Accrued property, plant and equipment

275,348


187,334

Current portion of operating lease liabilities

136,848


144,029

Current portion of finance lease liabilities

140,010


147,841

Current portion of mortgage and loans payable

9,810


33,087

Other current liabilities

211,428


214,519

          Total current liabilities

1,695,989


1,605,954

Operating lease liabilities, less current portion

1,227,543


1,107,180

Finance lease liabilities, less current portion

1,902,060


1,989,668

Mortgage and loans payable, less current portion

599,132


586,577

Senior notes, less current portion

12,008,125


10,984,144

Other liabilities

738,924


763,411

          Total liabilities

18,171,773


17,036,934

Common stock

93


91

Additional paid-in capital

17,193,805


15,984,597

Treasury stock

(92,845)


(112,208)

Accumulated dividends

(7,026,832)


(6,165,140)

Accumulated other comprehensive loss

(1,755,917)


(1,085,751)

Retained earnings

2,836,075


2,260,493

          Total Equinix stockholders' equity

11,154,379


10,882,082

Non-controlling interests

(286)


(318)

          Total stockholders' equity

11,154,093


10,881,764

                Total liabilities and stockholders' equity

$                29,325,866


$            27,918,698





Ending headcount by geographic region is as follows:




          Americas headcount

5,372


5,056

          EMEA headcount

3,850


3,611

          Asia-Pacific headcount

2,578


2,277

                    Total headcount

11,800


10,944

EQUINIX, INC.

Summary of Debt Principal Outstanding

(in thousands)

(unaudited)



September 30, 2022


December 31, 2021





Finance lease liabilities

$                 2,042,070


$                 2,137,509





Term loans

573,702


549,343

Mortgage payable and other loans payable

35,240


70,321

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

1,084


(1,276)

           Total mortgage and loans payable principal

610,026


618,388





Senior notes

12,008,125


10,984,144

Plus: debt discount and issuance costs

120,095


117,986

          Total senior notes principal

12,128,220


11,102,130





Total debt principal outstanding

$              14,780,316


$              13,858,027

EQUINIX, INC.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)




Three Months Ended


Nine Months Ended



September
30, 2022


June
30, 2022


September
30, 2021


September
30, 2022


September
30, 2021












Cash flows from operating activities:


Net income

$    211,739


$    216,242


$    152,026


$    575,674


$    376,587


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


Depreciation, amortization and accretion

431,668


432,828


419,684


1,300,882


1,231,760


Stock-based compensation

101,830


104,682


94,710


296,464


267,395


Amortization of debt issuance costs and
     debt discounts and premiums

4,533


4,536


4,390


13,273


12,760


(Gain) loss on debt extinguishment

(75)


420


(179)


(184)


115,339


Loss (gain) on asset sales

2,252


(94)


(15,414)


3,976


(14,149)


Other items

10,536


5,832


5,932


22,418


28,410


Changes in operating assets and liabilities:


Accounts receivable

29,823


(26,302)


(53,984)


(97,206)


(111,313)


Income taxes, net

29,656


(33,663)


21,735


9,874


(44,200)


Accounts payable and accrued expenses

103,941


55,128


67,169


83,089


9,968


Operating lease right-of-use assets

38,684


38,839


40,953


112,923


102,728


Operating lease liabilities

(31,873)


(34,632)


(37,423)


(98,245)


(137,751)


Other assets and liabilities

(112,425)


37,765


(34,853)


(19,945)


(182,433)

Net cash provided by operating activities

820,289


801,581


664,746


2,202,993


1,655,101

Cash flows from investing activities:


Purchases, sales and maturities of investments, net

(22,398)


(26,391)


(52,138)


(87,347)


(73,082)


Business acquisitions, net of cash and restricted cash acquired

(80,342)


(883,668)


(158,498)


(964,010)


(158,498)


Real estate acquisitions

(6,568)


(30,257)


(107,212)


(39,899)


(194,849)


Purchases of other property, plant and equipment

(552,729)


(484,830)


(678,277)


(1,450,077)


(1,934,107)


Proceeds from asset sales

(1,509)


56,024


174,494


249,906


174,494

Net cash used in investing activities

(663,546)


(1,369,122)


(821,631)


(2,291,427)


(2,186,042)

Cash flows from financing activities:


Proceeds from employee equity awards

37,667



37,594


81,543


77,628


Payment of dividend distributions

(291,169)


(283,048)


(262,362)


(863,886)


(783,454)


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

796,018




796,018


99,599


Proceeds from mortgage and loans payable




676,850



Proceeds from senior notes, net of debt discounts


1,193,688



1,193,688


3,878,662


Repayment of finance lease liabilities

(28,252)


(28,783)


(31,252)


(97,808)


(130,129)


Repayment of mortgage and loans payable

(25,195)


(9,199)


(10,367)


(586,227)


(706,426)


Repayment of senior notes





(1,990,650)


Debt extinguishment costs





(99,185)


Debt issuance costs


(10,365)



(17,731)


(25,102)

Net cash provided by (used in) financing activities

489,069


862,293


(266,387)


1,182,447


320,943

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

(39,063)


(101,129)


(7,085)


(135,599)


(24,139)

Net increase in cash, cash equivalents and restricted cash

606,749


193,623


(430,357)


958,414


(234,137)

Cash, cash equivalents and restricted cash at beginning of period

1,901,119


1,707,496


1,821,915


1,549,454


1,625,695

Cash, cash equivalents and restricted cash at end of period

$ 2,507,868


$ 1,901,119


$ 1,391,558


$ 2,507,868


$ 1,391,558

Supplemental cash flow information:

Cash paid for taxes

$      22,462


$      53,609


$      35,755


$      96,221


$    118,392

Cash paid for interest

$      91,406


$    106,249


$      86,466


$    301,706


$    316,157












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

$    179,141


$   (541,150)


$   (104,747)


$       (1,087)


$   (457,859)












Adjusted free cash flow (negative adjusted free cash flow) (2)

$    266,051


$    372,775


$    160,963


$ 1,002,822


$   (104,512)












(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

$    820,289


$    801,581


$    664,746


$ 2,202,993


$ 1,655,101


Net cash used in investing activities as presented above

(663,546)


(1,369,122)


(821,631)


(2,291,427)


(2,186,042)


Purchases, sales and maturities of investments, net

22,398


26,391


52,138


87,347


73,082


Free cash flow (negative free cash flow)

$    179,141


$   (541,150)


$   (104,747)


$       (1,087)


$  (457,859)












(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

$    179,141


$   (541,150)


$   (104,747)


$       (1,087)


$   (457,859)


Less business acquisitions, net of cash and restricted cash acquired

80,342


883,668


158,498


964,010


158,498


Less real estate acquisitions

6,568


30,257


107,212


39,899


194,849


Adjusted free cash flow (negative adjusted free cash flow)

$    266,051


$    372,775


$    160,963


$ 1,002,822


$  (104,512)

EQUINIX, INC.

Non-GAAP Measures and Other Supplemental Data

(in thousands)

(unaudited)




Three Months Ended


Nine Months Ended



September 30,
2022


June 30,
2022


September 30,
2021


September 30,
2022


September 30,
2021


Recurring revenues

$  1,748,132


$  1,707,451


$  1,563,616


$  5,097,907


$  4,617,011


Non-recurring revenues

92,527


109,703


111,560


294,353


312,148


Revenues (1)

1,840,659


1,817,154


1,675,176


5,392,260


4,929,159













Cash cost of revenues (2)

610,827


599,368


564,499


1,793,898


1,619,505


Cash gross profit (3)

1,229,832


1,217,786


1,110,677


3,598,362


3,309,654













Cash operating expenses (4)(7):










Cash sales and marketing expenses (5)

120,467


120,739


114,112


365,912


342,447


Cash general and administrative expenses (6)

238,449


236,715


210,267


701,490


610,400


Total cash operating expenses (4)(7)

358,916


357,454


324,379


1,067,402


952,847













Adjusted EBITDA (8)

$     870,916


$     860,332


$     786,298


$  2,530,960


$  2,356,807













Cash gross margins (9)

67 %


67 %


66 %


67 %


67 %













Adjusted EBITDA margins(10)

47 %


47 %


47 %


47 %


48 %













Adjusted EBITDA flow-through rate (11)

45 %


73 %


(64) %


45 %


50 %













FFO (12)

$      488,396


$      498,349


$      407,981


$   1,419,389


$   1,166,117













AFFO (13)(14)

$      712,036


$      691,392


$      628,270


$   2,056,060


$   1,887,035













Basic FFO per share (15)

$            5.31


$            5.47


$            4.54


$          15.56


$          13.01













Diluted FFO per share (15)

$            5.30


$            5.46


$            4.51


$          15.51


$          12.93













Basic AFFO per share (15)

$            7.75


$            7.59


$            6.99


$          22.54


$          21.06













Diluted AFFO per share (15)

$            7.73


$            7.58


$            6.94


$          22.47


$          20.92


































(1)

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

















Americas Revenues:






















Colocation

$     555,352


$     541,988


$     504,711


$  1,619,511


$  1,489,829


Interconnection

190,283


187,491


168,511


558,877


501,016


Managed infrastructure

54,704


55,329


43,313


159,255


122,532


Other

5,127


5,581


4,757


15,842


7,246


Recurring revenues

805,466


790,389


721,292


2,353,485


2,120,623


Non-recurring revenues

40,695


40,475


41,761


123,961


119,013


Revenues

$     846,161


$     830,864


$     763,053


$  2,477,446


$  2,239,636













EMEA Revenues:






















Colocation

$     445,733


$     433,339


$     400,395


$  1,293,641


$  1,187,373


Interconnection

66,703


66,845


65,809


201,688


192,717


Managed infrastructure

28,493


30,447


31,445


89,930


94,732


Other

23,105


22,048


5,639


51,567


14,367


Recurring revenues

564,034


552,679


503,288


1,636,826


1,489,189


Non-recurring revenues

27,778


46,522


41,939


104,667


112,684


Revenues

$     591,812


$     599,201


$     545,227


$  1,741,493


$  1,601,873













Asia-Pacific Revenues:






















Colocation

$     295,008


$     281,635


$     259,092


$     859,258


$     773,223


Interconnection

61,264


60,841


56,789


182,092


164,869


Managed infrastructure

19,269


19,916


21,572


59,827


66,415


Other

3,091


1,991


1,583


6,419


2,692


Recurring revenues

378,632


364,383


339,036


1,107,596


1,007,199


Non-recurring revenues

24,054


22,706


27,860


65,725


80,451


Revenues

$     402,686


$     387,089


$     366,896


$  1,173,321


$  1,087,650













Worldwide Revenues:






















Colocation

$  1,296,093


$  1,256,962


$  1,164,198


$  3,772,410


$  3,450,425


Interconnection

318,250


315,177


291,109


942,657


858,602


Managed infrastructure

102,466


105,692


96,330


309,012


283,679


Other

31,323


29,620


11,979


73,828


24,305


Recurring revenues

1,748,132


1,707,451


1,563,616


5,097,907


4,617,011


Non-recurring revenues

92,527


109,703


111,560


294,353


312,148


Revenues

$  1,840,659


$  1,817,154


$  1,675,176


$  5,392,260


$  4,929,159


































(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

$     934,669


$     930,257


$     885,650


$  2,780,801


$  2,561,987


Depreciation, amortization and accretion expense

(313,110)


(319,011)


(311,438)


(953,850)


(914,294)


Stock-based compensation expense

(10,732)


(11,878)


(9,713)


(33,053)


(28,188)


Cash cost of revenues

$     610,827


$     599,368


$     564,499


$  1,793,898


$  1,619,505













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

















Americas cash cost of revenues

$     247,976


$     243,636


$     239,172


$     731,015


$     667,311


EMEA cash cost of revenues

220,887


215,983


204,174


639,718


600,018


Asia-Pacific cash cost of revenues

141,964


139,749


121,153


423,165


352,176


Cash cost of revenues

$     610,827


$     599,368


$     564,499


$  1,793,898


$  1,619,505






(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

$     568,572


$     564,075


$     517,622


$  1,677,845


$  1,509,520


Depreciation and amortization expense

(118,558)


(113,817)


(108,246)


(347,032)


(317,466)


Stock-based compensation expense

(91,098)


(92,804)


(84,997)


(263,411)


(239,207)


Cash operating expense

$     358,916


$     357,454


$     324,379


$  1,067,402


$     952,847












(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

$     193,089


$     193,727


$     182,997


$     579,327


$     551,434


Depreciation and amortization expense

(50,115)


(49,817)


(48,320)


(147,553)


(149,940)


Stock-based compensation expense

(22,507)


(23,171)


(20,565)


(65,862)


(59,047)


Cash sales and marketing expense

$     120,467


$     120,739


$     114,112


$     365,912


$     342,447












(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

$     375,483


$     370,348


$     334,625


$  1,098,518


$     958,086


Depreciation and amortization expense

(68,443)


(64,000)


(59,926)


(199,479)


(167,526)


Stock-based compensation expense

(68,591)


(69,633)


(64,432)


(197,549)


(180,160)


Cash general and administrative expense

$     238,449


$     236,715


$     210,267


$     701,490


$     610,400












(7)

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













Americas cash SG&A

$     203,026


$     211,004


$     202,113


$     618,493


$     580,141


EMEA cash SG&A

87,639


87,836


73,500


262,762


228,213


Asia-Pacific cash SG&A

68,251


58,614


48,766


186,147


144,493


Cash SG&A

$     358,916


$     357,454


$     324,379


$  1,067,402


$     952,847












(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

$     211,739


$     216,242


$     152,026


$     575,674


$     376,587


Income tax expense

34,606


8,635


53,224


75,985


67,325


Interest income

(11,192)


(4,508)


(411)


(17,806)


(1,514)


Interest expense

91,346


90,826


78,943


262,137


255,855


Other expense (income)

6,735


6,238


(1,482)


22,522


44,845


(Gain) loss on debt extinguishment

(75)


420


(179)


(184)


115,339


Depreciation, amortization and accretion expense

431,668


432,828


419,684


1,300,882


1,231,760


Stock-based compensation expense

101,830


104,682


94,710


296,464


267,395


Transaction costs

2,007


5,063


5,197


11,310


13,364


(Gain) loss on asset sales

2,252


(94)


(15,414)


3,976


(14,149)


Adjusted EBITDA

$     870,916


$     860,332


$     786,298


$  2,530,960


$  2,356,807













The geographic split of our adjusted EBITDA is presented below:

















Americas net income (loss)

$       48,369


$        38,199


$     (72,076)


$        66,996


$  (262,710)


Americas income tax expense

34,606


8,516


53,223


75,866


66,948


Americas interest income

(10,374)


(3,904)


(333)


(16,006)


(1,081)


Americas interest expense

80,681


82,160


70,721


233,571


227,403


Americas other income

(68,241)


(55,803)


(25,014)


(147,434)


(10,398)


Americas (gain) loss on debt extinguishment

39


420


(1)


198


115,668


Americas depreciation, amortization and accretion expense

234,788


230,099


219,106


694,973


644,225


Americas stock-based compensation expense

69,272


73,677


70,495


206,866


198,739


Americas transaction costs

3,241


2,715


4,478


8,947


10,956


Americas loss on asset sales

2,778


145


1,169


3,961


2,434


Americas adjusted EBITDA

$     395,159


$     376,224


$     321,768


$  1,127,938


$     992,184













EMEA net income

$       82,558


$     101,638


$     130,936


$     282,584


$     349,970


EMEA income tax expense


119



119


376


EMEA interest income

(487)


(525)


(49)


(1,279)


(66)


EMEA interest expense

2,219


(112)


625


3,023


3,832


EMEA other expense

69,245


57,169


21,912


155,585


50,255


EMEA depreciation, amortization and accretion expense

112,065


116,070


115,026


343,001


341,941


EMEA stock-based compensation expense

19,174


19,168


15,022


54,454


42,266


EMEA transaction costs

(1,488)


2,094


664


1,763


1,651


EMEA gain on asset sales


(239)


(16,583)


(237)


(16,583)


EMEA adjusted EBITDA

$     283,286


$     295,382


$     267,553


$     839,013


$     773,642













Asia-Pacific net income

$       80,812


$        76,405


$        93,166


$     226,094


$     289,327


Asia-Pacific income tax benefit



1



1


Asia-Pacific interest income

(331)


(79)


(29)


(521)


(367)


Asia-Pacific interest expense

8,446


8,778


7,597


25,543


24,620


Asia-Pacific other expense

5,731


4,872


1,620


14,371


4,988


Asia-Pacific gain on debt extinguishment

(114)



(178)


(382)


(329)


Asia-Pacific depreciation, amortization and accretion expense

84,815


86,659


85,552


262,908


245,594


Asia-Pacific stock-based compensation expense

13,384


11,837


9,193


35,144


26,390


Asia-Pacific transaction costs

254


254


55


600


757


Asia-Pacific (gain) loss on asset sales

(526)




252