NASDAQ$EQIX

Equinix Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Equinix demonstrated resilience and growth amidst challenges, expanded its platform, and delivered its 18th year of consecutive quarterly revenue growth.

Equinix reported Q4 2020 results, with annual revenues increasing by 8% year-over-year to approximately $6 billion. The company delivered record channel bookings and continued to expand its platform with multiple projects underway.

  • 2020 annual revenues increased 8% year-over-year on both an as-reported and normalized and constant currency basis to approximately $6 billion.
  • Delivered record channel bookings in Q4, accounting for more than 35% of total bookings
  • Continues to expand platform, building across 44 projects in 30 markets and 20 countries
  • In Q4, Equinix completed the formation of another greater than US$1.0 billion joint venture in the form of a limited liability partnership with GIC, Singapore's sovereign wealth fund, to develop and operate xScaleTM data centers in Japan.

Headline financials

Total Revenue

$1.56B

Previous: $1.42B+10.4%
EPS (adj)

$5.76

Previous: $5.51+4.5%
Worldwide Interconnections

392.0K

Previous: 363.0K+8.0%
Net Income

$50.9M

Previous: $125M-59.2%
Operating Income

$229M

Previous: $313M-27.0%
Gross Profit

$733M

Previous: $691M+6.1%
Cash & Equivalents

$1.6B

Previous: $1.87B-14.2%
Total Assets

$27B

Previous: $24B+12.8%
Stock-Based Comp

$79.4M

Previous: $62.1M+27.7%

Revenue & EPS history

Equinix · Revenue · Quarterly

$1.56B

Q4 2020+10.4%vs Q4 2019
Beat estimate in 4 of 16 quarters(25%)
ActualEstimate

Revenue by segment

Equinix · $1.96B total across 4 segments · Q3 2023

  • Colocation
    $1.46B+13.0%
  • Interconnection
    $353M+10.8%
  • Managed Infrastructure
    $114M+10.9%
  • Other
    $30.5M-2.7%

Forward guidance

For the first quarter of 2021, Equinix expects revenues to range between $1.587 and $1.607 billion, an increase of 2% quarter-over-quarter at the midpoint or approximately 1% on a normalized and constant currency basis, including a step-down in non-recurring revenue due to timing of customer installations.

Tailwinds

  • Revenues to range between $1.587 and $1.607 billion
  • Increase of 2% quarter-over-quarter at the midpoint
  • Approximately 1% increase on a normalized and constant currency basis
  • Includes a foreign currency benefit of $17 million when compared to the average FX rates in Q4 2020
  • Adjusted EBITDA includes $9 million of integration costs related to acquisitions.

Headwinds

  • Includes a step-down in non-recurring revenue due to timing of customer installations.
  • Adjusted EBITDA is expected to range between $737 and $757 million
  • Higher seasonal salary and benefit costs of $14 million attributed to the FICA reset.
  • Recurring capital expenditures are expected to range between $17 and $27 million.
  • Full impact of COVID-19 pandemic on the company's financial condition or results of operations remains uncertain

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 2020

Historical avgQ4 2020

+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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