Equinix reports steep increase in net income in 2022
Digital infrastructure company Equinix, Inc. (NASDAQ:EQIX) has reported results for the quarter and year ended December 31, 2022.
Revenues for 2022 amounted to $7.263 billion, marking a 9% increase over the previous year on an as-reported basis or 11% on a normalized and constant currency basis.
Operating Income for 2022 totalled $1.201 billion, an 8% increase over the previous year, and an operating margin of 17%, largely due to strong operating performance offset in part by increased investments to support the expanded scale and reach of the business.
Net Income reached $705 million, a 41% increase over the previous year, primarily due to operating performance strength and loss on debt extinguishment in 2021. The rise was partially offset by higher income taxes.
For the first quarter of 2023, Equinix expects revenues to range between $1.965 and $1.995 billion, an increase of 5 – 7% over the previous quarter, or a normalized and constant currency increase of 5 – 6%. This guidance includes power price increases in EMEA, and a negative foreign currency impact of $24 million when compared to the average FX rates in Q4 2022.
Adjusted EBITDA is expected to range between $891 and $921 million, which includes a negative foreign currency impact of $9 million when compared to the average FX rates in Q4 2022, a step-down in repairs & maintenance costs incurred in the quarter, although offset in part by increased seasonal salary and benefit costs of $17 million attributed to the FICA reset.
For the full year of 2023, total revenues are expected to range between $8.145 and $8.245 billion, a 12 – 14% increase over the previous year on an as-reported basis, or a 14 – 15% increase on a normalized and constant currency basis, and includes a foreign currency benefit of $267 million when compared to the prior Equinix guidance FX rates.
Charles Meyers, CEO and President of Equinix, said:
“With IDC forecasting digital technology spend to grow eight times faster than the broader economy in 2023, today’s businesses are seeking the right infrastructure partner to support their specific digital transformation needs, especially in the current environment where operational efficiency and the need to create lasting business differentiation are strategic drivers. Our customers are validating the increasing demand for comprehensive solutions that offer ‘the right cloud for them’ with flexibility to place their workloads across multiple public clouds, private clouds and on-prem—and they are finding Equinix’s global platform and interconnected ecosystems a unique environment to architect this customizable infrastructure.”