NASDAQ$EQIX

Equinix Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Equinix reported strong Q4 2023 results, achieving 21 years of consecutive quarterly revenue growth.

Equinix reported Q4 2023 results with revenues of $2.11 billion, a 13% increase over the previous year. The company achieved 21 years of consecutive quarterly revenue growth and made substantial progress on its ambitious agenda, positioning the business to capitalize on the immense opportunities that lie ahead.

  • Delivered more than $8 billion in revenue in 2023, achieving 21 years of consecutive quarterly revenue growth
  • 2023 annual revenues increased 13% year-over-year on an as-reported basis and 15% on a normalized and constant currency basis to $8.2 billion
  • Closed nearly 17,000 deals across more than 5,900 customers in 2023
  • Record 90 megawatts (“MW”) of xScale® leasing, the result of increased hyperscale demand to support artificial intelligence (AI) and cloud deployments

Headline financials

Total Revenue

$2.11B

Previous: $1.87B+12.8%
EPS (adj)

$7.30

Previous: $7.09+3.0%
Adjusted Funds From Operations

$691M

Previous: $658M+5.0%
Worldwide Interconnections

462.0K

No prior period
Capital Expenditures

-$996M

No prior period
Net Income

$227M

Previous: $129M+76.5%
Operating Income

$346M

Previous: $282M+22.8%
Gross Profit

$1.02B

Previous: $900M+13.2%
Stock-Based Comp

$106M

Previous: $108M-1.6%

Revenue & EPS history

Equinix · Revenue · Quarterly

$2.11B

Q4 2023+12.8%vs Q4 2022
Beat estimate in 6 of 15 quarters(40%)
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 2024, Equinix expects revenues to range between $2.127 and $2.147 billion, an increase of 1 - 2% over the previous quarter, or flat on a normalized and constant currency basis. Adjusted EBITDA is expected to range between $960 and $980 million.

Tailwinds

  • Revenues to range between $2.127 and $2.147 billion, an increase of 1 - 2% over the previous quarter
  • Flat on a normalized and constant currency basis
  • Guidance includes lower non-recurring revenues related to significant xScale activity in Q4 2023 partly offset by a foreign currency benefit of $38 million when compared to the average FX rates in Q4 2023
  • Adjusted EBITDA is expected to range between $960 and $980 million
  • Includes a foreign currency benefit of $18 million when compared to the average FX rates in Q4 2023

Headwinds

  • Includes lower non-recurring revenues related to significant xScale activity in Q4 2023
  • Adjusted EBITDA includes $5 million of integration costs related to acquisitions
  • Recurring capital expenditures are expected to range between $14 and $34 million.
  • The adjusted EBITDA guidance is based on the revenue guidance less our expectations of cash cost of revenues and cash operating expenses.
  • The AFFO guidance is based on the adjusted EBITDA guidance less our expectations of net interest expense, an installation revenue adjustment, a straight-line rent expense adjustment, a contract cost adjustment, amortization of deferred financing costs and debt discounts and premiums, income tax expense, an income tax expense adjustment, recurring capital expenditures, other income (expense), gains (losses) on disposition of real estate property, and adjustments for unconsolidated joint ventures’ and non-controlling interests’ share of these items.

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 2023

Historical avgQ4 2023

+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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