Tuesday, October 30, 2018

CyrusOne reports continued growth in data center colocation

CyrusOne reported revenue was $206.6 million for the third quarter, compared to $175.3 million for the same period in 2017, an increase of 18%. The increase in revenue was driven primarily by a 26% increase in occupied CSF and additional interconnection services.

Net loss was $(42.4) million for the third quarter, compared to net loss of $(55.1) million in the same period in 2017. Net loss for the third quarter included a $(36.6) million unrealized loss on the company’s equity investment in GDS Holdings Limited (“GDS”), a leading data center provider in China, due to a decrease in GDS’s share price during the quarter.

Some highlights:

  • Leased 15 megawatts (“MW”) and 114,000 colocation square feet (“CSF”) in the third quarter, totaling $27 million in annualized GAAP revenue
  • Backlog of $89 million in annualized GAAP revenue as of the end of the third quarter, representing nearly $850 million in total contract value
  • Closed acquisition of Zenium, establishing a presence in London and Frankfurt, the two largest data center markets in Europe
  • Acquired 15 acres of land in Santa Clara, California, establishing a presence in a key West Coast market with an onsite power cogeneration facility
  • Also acquired 40 acres of land in Northern Virginia (in addition to previously announced acquisition of 154,000 square foot powered shell) and 24 acres of land in Dallas to support continued strong growth in these markets
  • Added seven Fortune 1000 companies as new customers (three through third quarter leasing, four through the acquisition), increasing the total number of Fortune 1000 customers to 208 as of the end of the quarter
  • Raised nearly $400 million in net proceeds through a common stock offering of 6.7 million shares in late September and entered into a forward sale agreement with respect to an additional 2.5 million shares resulting in estimated net proceeds of nearly $150 million upon settlement by September 15, 2019

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