EQUINIX INC Q3 FY2024 earnings call

• Had an outstanding quarter with record growth bookings across regions, solid deal conversion rates, and robust pricing. - Strategy focuses on three areas: starting outside in with customers to be the partner of choice, delivering integrated solutions to ease customer deployment, and innovating in data center design and construction. - Announced nearly tripling the investment capital of the xScale program with a $15 billion joint venture with CPP Investment Board and GIC. - Key service provider wins and production use cases in AI, such as Nebius in Paris and Sakura Internet in Japan. - Q3 revenues were $2.2 billion, up 7% y-o-y; adjusted EBITDA was up 12% y-o-y; FFO was 866 million, up 12% y-o-y; AFFO per share expected to grow 9%-10%. - Opened new data centers in Johannesburg, Istanbul, New York, and Tokyo, and purchased land for development in Amsterdam and Bangkok.

Global Q3 revenues were $2.201 billion, up 7% over the same quarter last year. Adjusted EBITDA was up 12% year-over-year. Interconnection revenues increased 10% year-over-year. On a normalized and constant currency basis, APAC was the fastest growing region at 15%, followed by the Americas at 6% and EMEA at 3%. Interconnection revenues accounted for 19% of recurring revenues. Net billable cabinet stepped up by 3,100 globally, and net interconnection additions had a healthy step up with 5,700 net interconnection additions due to strong hyperscale across connects and ecosystem diversification.

• Raised full-year revenue guidance by $36 million and adjusted EBITDA guidance by $10 million, implying top line growth of 7%-8% and adjusted EBITDA margins of about 47%. - Raised full-year AFFO guidance by $18 million, with an 11%-13% increase over the previous year. - Full-year CapEx expected to range between $2.8 billion and $3.1 billion, including about $240 million of recurring CapEx spend.

Q: Ari Klein asked about the shifting strategic focus to large campuses and its benefits.

A: Adaire Fox-Martin said it enables securing power, being adjacent to metros, and offering the entire product continuum. Keith Taylor added economies of scale and outsized returns.

Q: Simon Flannery asked about revenue growth and 2025 guidance.

A: Adaire Fox-Martin discussed market dynamics and strong bookings, Keith Taylor talked about crosscurrents and strategic flexibility.

Q: Jonathan Atkin asked about balance sheet and digital services.

A: Keith Taylor discussed cash on balance sheet, capital appetite, and digital services portfolio; Adaire Fox-Martin talked about fabric attach rate and digital services customer experience.

Q: Jim Schneider asked about xScale joint venture and cabinet additions.

A: Adaire Fox-Martin and Keith Taylor discussed the joint venture timeline and cabinet momentum drivers.

Q: David Barden asked about cabinet adjustments and narrative on xScale.

A: Keith Taylor explained cabinet adjustments, Adaire Fox-Martin and Keith Taylor discussed xScale as an 'and' to core business.

Q: Timothy Horan asked about xScale progression and pricing.

A: Keith Taylor and Adaire Fox-Martin talked about xScale revenue contribution, pricing robustness, and prebooking of assets