Equinix registers 10% Y/Y increase in revenues in Q3 2022
Digital infrastructure company Equinix, Inc. (NASDAQ:EQIX) has reported results for the quarter ended September 30, 2022.
Quarterly revenues increased 10% year on year to $1.8 billion, representing Equinix’s 79th consecutive quarter of revenue growth.
Operating Income for the third quarter of 2022 was $333 million, a 5% increase over the previous quarter, an operating margin of 18%.
Net Income attributable to Equinix was $212 million, a 2% decrease from the previous quarter, primarily due to lower non-recurring xScale® fees, a Q2 favorable tax settlement, partially offset by higher income from operations from strong operating performance and lower net interest expense.
Equinix continued to expand its Data Center Services with 46 major builds underway in 31 markets, across 21 countries. Recent activity includes:
- A $74 million expansion to Indonesia with plans for an International Business Exchange™ (IBX®) data center in the heart of Jakarta, scheduled to open by the second half of 2024.
- A $45 million investment in Colombia for the construction of BG2, Equinix’s second IBX data center in Bogotá, scheduled to open in the first half of 2023.
- The addition of six recently approved projects in Q3 in Barcelona, Milan, Montreal, Jakarta, Silicon Valley and Tokyo.
For the fourth quarter of 2022, Equinix 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.
Charles Meyers, President and CEO of Equinix, commented:
“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.”