Wednesday, April 28, 2021

Equinix: 2021 to be most active build year so far

Equinix reported quarterly revenue of $1.596 billion, up 10% compared to the same quarter last year, or 7% on a normalized and constant currency basis, representing the company's 73rd consecutive quarter of revenue growth. Net income was $156 million, a 207% increase over the previous quarter, primarily due to strong operating performance and lower acquisition and debt redemption costs, or $1.74 per share, a 205% increase over the previous quarter.

Equinix said 2021 is set to be one of the most active build years ever, with 36 major projects underway across 28 markets and 19 countries.

Charles Meyers, President and CEO, Equinix: "We had a great start to the year, and as businesses continue to navigate towards a post-pandemic world, Equinix is uniquely well-positioned. Digital transformation continues to accelerate, and businesses across a broad range of verticals are recognizing that their infrastructure can be a key source of competitive advantage in an increasingly digital world. Q1 also marked a milestone for Equinix as we are now the market leader in retail colocation in all three regions of the world, taking the number-one spot in Asia-Pacific for the first time. Demand is strong with global IT spend expected to rebound above pre-pandemic levels as enterprises increase hybrid cloud spending, and service providers build out their delivery platforms to tap into this demand." 

Some highlights:

  • In Q1, Equinix delivered one of the strongest net bookings quarters in the company's history, with more than 4,300 deals across more than 3,200 customers, and the lowest churn in many years.
  • The $3 billion xScale program is expected to develop over 290 megawatts of power capacity for hyperscale customers across its first two off-balance sheet joint ventures. 
  • In Q1, Equinix announced the construction of the first building of its DB5x campus in Dublin, Ireland, which is 100% pre-leased to a major hyperscaler and is expected to be added to a current or future joint venture.
  • Interconnection revenues grew in Q1 16% year-over-year, or 13% on a normalized and constant currency basis, and Equinix added more than 6,700 net interconnections – more than its next 10 competitors combined – bringing the company's total interconnections to over 398,000.