NASDAQ$EQIX

Equinix Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Equinix reported strong Q4 2019 results, delivering revenue growth and strategic platform advancements.

Equinix reported a 10% increase in full year revenues, reaching $5.562 billion. The company continues to focus on evolving Platform Equinix, adding new capabilities and service offerings to meet the digital transformation needs of its customers.

  • Delivered 2019 annual revenues increase of 10% year-over-year to $5.562 billion.
  • Customer deployments across multiple metros increased to 87% of total recurring revenues, demonstrating the value of the Equinix global platform
  • Equinix signed a definitive agreement to acquire Packet, the leading bare metal automation platform
  • Equinix was named a leader in IDC's first-ever assessment of the colocation and interconnection services vendor market

Headline financials

Total Revenue

$1.42B

Previous: $1.31B+8.2%
EPS (adj)

$5.51

Previous: $5.13+7.4%
Adjusted Funds From Operations

$473M

No prior period
Funds From Operations

$304M

No prior period
Worldwide Interconnections

363.0K

No prior period
Net Income

$125M

Previous: $110M+13.5%
Operating Income

$313M

Previous: $271M+15.6%
Gross Profit

$691M

Previous: $639M+8.2%
Cash & Equivalents

$1.87B

Previous: $606M+208.4%
Total Assets

$24B

Previous: $20.2B+18.4%
Stock-Based Comp

$62.1M

Previous: $40.9M+52.0%

Revenue & EPS history

Equinix · Revenue · Quarterly

$1.42B

Q4 2019+8.2%vs Q4 2018
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

Equinix · $1.34B total across 4 segments · Q4 2019

  • Colocation
    $1.02B
  • Interconnection
    $235M
  • Managed Infrastructure
    $71.8M
  • Other
    $8.48M

Forward guidance

For the first quarter of 2020, Equinix expects revenues to range between $1.450 and $1.460 billion. For the full year of 2020, total revenues are expected to range between $6.000 and $6.050 billion.

Tailwinds

  • Revenues are expected to range between $1.450 and $1.460 billion for Q1 2020
  • Q1 2020 revenue guidance includes a foreign currency benefit of $4 million when compared to the average FX rates in Q4 2019
  • Q1 2020 revenue guidance includes $5 million in revenues from the Axtel acquisition
  • Adjusted EBITDA is expected to range between $686 and $696 million for Q1 2020
  • Total revenues are expected to range between $6.000 and $6.050 billion for FY 2020

Headwinds

  • Q1 2020 Adjusted EBITDA includes $4 million of integration costs related to acquisitions
  • FY 2020 revenue guidance includes a negative foreign currency impact of $12 million when compared to the average FX rates in 2019
  • FY 2020 revenue guidance includes $18 - $22 million in revenues from the Axtel acquisition
  • FY 2020 Adjusted EBITDA includes a negative foreign currency impact of $8 million when compared to the average FX rates in 2019
  • For the year, the company expects to incur $10 million in integration costs related to acquisitions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

+1.2%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+1.6%

Avg return

30 days after

57%

39 / 69 earnings

Positive

+14.6%

Q1 2012

Best reaction

-6.6%

Q4 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.1%-1.0%-2.0%
Q4 2025+10.4%+9.7%+11.8%
Q3 2025+4.6%+4.0%-5.6%
Q2 2025-1.5%-2.3%-1.4%
Q1 2025+0.1%+1.7%+3.3%
Q4 2024-1.3%-0.4%-10.4%
Q3 2024+0.2%-1.1%+8.3%
Q2 2024+3.2%+4.4%+4.3%
Q1 2024+8.5%+9.1%+5.8%
Q4 2023+5.1%+2.8%+2.1%
Q3 2023+2.2%+1.6%+12.9%
Q2 2023-5.7%-3.8%-3.4%
Q1 2023+3.7%+5.3%+7.7%
Q4 2022-0.9%-1.6%-5.2%
Q3 2022+5.6%+9.4%+24.7%
Q2 2022+10.8%+8.2%+4.5%
Q1 2022+2.3%-5.0%-6.2%
Q4 2021+2.7%+2.9%+8.7%
Q3 2021-4.0%-6.0%-5.1%
Q2 2021-6.6%-2.7%-2.0%
Q1 2021-1.1%-0.4%+3.2%
Q4 2020-4.4%-5.4%-11.0%
Q3 2020-4.2%-4.5%-9.4%
Q2 2020+3.4%+3.5%+4.6%
Q1 2020-1.6%-1.2%-1.9%
Q4 2019+3.6%+5.7%+1.2%
Q3 2019-0.1%-4.3%-0.1%
Q2 2019+4.8%+2.8%+11.5%
Q1 2019+2.3%+5.2%+6.8%
Q4 2018+5.8%+6.0%+11.1%
Q3 2018+3.6%+4.6%+1.7%
Q2 2018-0.6%-1.6%-3.8%
Q1 2018-5.9%-6.8%-5.6%
Q4 2017-6.6%-7.6%-3.8%
Q3 2017+5.4%+6.1%+1.2%
Q2 2017-0.8%-2.0%+2.8%
Q1 2017+1.1%+3.4%+8.5%
Q4 2016-2.5%-2.2%-1.8%
Q3 2016-2.6%+0.7%-4.9%
Q2 2016-0.6%-2.5%-0.5%
Q1 2016-0.6%
Q4 2015+3.0%
Q3 2015-1.1%
Q2 2015+1.2%
Q1 2015+3.9%
Q4 2014+2.8%
Q3 2014+7.4%
Q2 2014-0.3%
Q1 2014+2.0%
Q4 2013-3.1%
Q3 2013+4.2%
Q2 2013-4.9%
Q1 2013-2.7%
Q4 2012+5.3%
Q3 2012+5.2%
Q2 2012+12.5%
Q1 2012+14.6%
Q4 2011+2.0%
Q3 2011-5.4%
Q2 2011-1.5%
Q1 2010-0.4%
Q1 2011+1.5%
Q4 2010+0.2%
Q4 2008+0.2%
Q3 2010+0.0%
Q3 2009+0.0%
Q2 2010-0.0%
Q4 2009-0.0%
Q2 2009-0.0%

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