Equinix Inc (EQIX, Financial), the world's digital infrastructure company, released its earnings report for the quarter ended September 30, 2023, on October 25, 2023. The company reported a 12% increase in quarterly revenues over the same quarter last year, reaching $2.1 billion. This growth was driven by the integration of AI into enterprise strategies and offerings, leading to the closure of 4,200 deals in Q3 across more than 3,100 customers.
Financial Performance
Equinix's operating income for Q3 2023 was $380 million, a 14% increase over the same quarter last year, due to strong operating performance and an operating margin of 18%. Net income and net income per share attributable to Equinix were $276 million and $2.93 per share, respectively, marking increases of 30% and 27% from the same quarter last year. The company also reported an adjusted EBITDA of $936 million, a 7% increase over the same quarter last year, and an adjusted EBITDA margin of 45%.
Company's Outlook
For the full year of 2023, Equinix expects total revenues to range between $8.166 and $8.206 billion, a 12 - 13% increase over the previous year, or a normalized and constant currency increase of 14 - 15%. Adjusted EBITDA is expected to range between $3.680 and $3.710 billion, an adjusted EBITDA margin of 45%. AFFO is expected to range between $2.996 and $3.026 billion, an increase of 10 - 12% over the previous year, or a normalized and constant currency increase of 12 - 14%.
CEO's Commentary
We delivered another solid quarter of results and continue to drive strong value creation on a per share basis, raising both our dividend and AFFO/share outlook for the full year. We expect Equinix's broad portfolio of offerings, in tandem with our key technology partners, will allow us to capture high-value opportunities across the AI value chain, positioning Platform Equinix to be the place where private AI happens and allowing customers to place compute resources in proximity to data and seamlessly leverage public cloud capabilities while maintaining control of high-value proprietary data." - Charles Meyers, President and CEO, Equinix
Business Highlights
Equinix continues to expand its global footprint, with 56 major projects underway across 39 markets in 23 countries. The company added nine new projects in Q3, including new builds in Madrid, Osaka, São Paulo, and Silicon Valley. Equinix also announced an investment of $42 million for its fourth International Business Exchange™ (IBX®) data center in Mumbai, called MB4, to support India's growing digital economy.
Explore the complete 8-K earnings release (here) from Equinix Inc for further details.
