This is the Tagline, edited under "Misc Content"

Sample Left Feature Box

Build feature boxes to go in your left column in Feature Content / Standard in your Site Manager.

Equinix Reports Fourth-Quarter and Full-Year 2022 Results

Exceeds $7 Billion in Revenue with 80th Consecutive Quarter of Revenue Growth--the Longest Streak of Any S&P 500 Company

Feb 15, 2023

REDWOOD CITY, Calif., Feb. 15, 2023 /PRNewswire/ --

  • 2022 annual revenues increased 9% year-over-year on an as-reported basis and 11% on a normalized and constant currency basis to $7.3 billion
  • Delivered seventh consecutive quarter of record channel bookings, accounting for nearly 40% of total bookings and approximately 60% of new logos
  • Closed over 17,000 deals across more than 6,000 customers in 2022
  • 2023 financial outlook at or above company's previously disclosed long-term targets shared at the June 2021 Analyst Day
  • Increases quarterly cash dividend by 10% to $3.41 per share on its common stock due to strong operating performance

Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure companyTM, today reported results for the quarter and year ended December 31, 2022. Equinix uses certain non-GAAP financial measures, which are described further below and reconciled to the most comparable GAAP financial measures after the presentation of our GAAP financial statements. All per-share results are presented on a fully diluted basis.

2022 Results Summary

  • Revenues
    • $7.263 billion, a 9% increase over the previous year on an as-reported basis or 11% on a normalized and constant currency basis
  • Operating Income
    • $1.201 billion, an 8% increase over the previous year, and an operating margin of 17%, largely due to strong operating performance offset in part by increased investments to support the expanded scale and reach of the business
  • Net Income and Net Income per Share attributable to Equinix
    • $705 million, a 41% increase over the previous year, primarily due to operating performance strength and loss on debt extinguishment in 2021; partially offset by higher income taxes
    • $7.67 per share, a 39% increase over the previous year
  • Adjusted EBITDA
    • $3.370 billion, a 46% adjusted EBITDA margin
    • Includes $20 million of integration costs
  • AFFO and AFFO per Share
    • $2.714 billion, an 11% increase over the previous year on both an as-reported and normalized and constant currency basis
    • $29.55 per share, a 9% increase over the previous year or a normalized and constant currency increase of 11%
    • Includes $20 million of integration costs

2023 Annual Guidance Summary

  • Revenues
    • $8.145 - $8.245 billion, a 12 - 14% increase over the previous year or a normalized and constant currency increase of 14 - 15%
  • Adjusted EBITDA
    • $3.615 - $3.695 billion, a 45% adjusted EBITDA margin after taking into consideration power price increases to revenues and corresponding power cost increases
    • Assumes $35 million of integration costs
  • AFFO and AFFO per Share
    • $2.883 - $2.963 billion, an increase of 6 - 9% over the previous year or a normalized and constant currency increase of 9 - 12%
    • $30.79 - $31.64 per share, an increase of 4 - 7% over the previous year or a normalized and constant currency increase of 8 - 10%. This guidance excludes any capital market activities the company may undertake in the future
    • Assumes $35 million of integration costs

Equinix does not provide forward-looking guidance for certain financial data, such as depreciation, amortization, accretion, stock-based compensation, net income (loss) from operations, cash generated from operating activities and cash used in investing activities, and as a result, is not able to provide a reconciliation of GAAP to non-GAAP financial measures for forward-looking data without unreasonable effort. The impact of such adjustments could be significant.

Equinix Quote
Charles Meyers, CEO and President, Equinix:

"With IDC forecasting digital technology spend to grow eight times faster than the broader economy in 2023,1 today's businesses are seeking the right infrastructure partner to support their specific digital transformation needs, especially in the current environment where operational efficiency and the need to create lasting business differentiation are strategic drivers. Our customers are validating the increasing demand for comprehensive solutions that offer 'the right cloud for them' with flexibility to place their workloads across multiple public clouds, private clouds and on-prem—and they are finding Equinix's global platform and interconnected ecosystems a unique environment to architect this customizable infrastructure."

Business Highlights

  • As Equinix continues to extend its comprehensive platform to offer businesses a rich mix of physical and virtual solutions to access its interconnected ecosystem, the company made progress on digital services initiatives in Q4 that included:
    • The November announcement with VMware of VMware Cloud on Equinix Metal®, which combines VMware-managed and supported cloud Infrastructure as a Service with Equinix's interconnected, global Bare Metal as a Service offering. The solution is aimed at offering customers a combination of on-premises security and control with high performance, data locality, and low overall total cost of ownership.
    • An outline for the extension of its entire digital services portfolio to seven new metros. This 2023 plan includes launching Equinix Metal in Dublin, Manchester, Mexico City, Miami and Milan, and bringing Network Edge to Atlanta, Manchester, Mexico City and Seoul.
  • Equinix further invested in the expansion of its global platform, which now encompasses more than 245 data centers across 71 metros in 32 countries:
    • The 49 major projects currently underway across 35 metros and 23 countries represent the largest new-build pipeline in company history.
    • In Q4, Equinix announced its first builds in Johannesburg, South Africa, and Johor, Malaysia. The new Johannesburg facility will augment Equinix's current African footprint in Nigeria, Ghana and Côte d'Ivoire by entering the largest and most digitally developed nation on the continent. The Johor expansion represents Equinix's entry into one of the most-requested markets in Asia-Pacific by global customers.
  • In Q4, Equinix advanced its environmental sustainability commitments by becoming the first colocation data center operator to commit to more efficient temperature and humidity standards that will enable the company to reduce its overall power use by increasing operating temperature ranges within its data centers. By "adjusting the thermostat" to optimize data center energy use, Equinix is leading the industry and is expected to enable thousands of customers to reduce the Scope 3 carbon emissions associated with their data center operations, as supply chain sustainability becomes an increasingly important part of the overall environmental initiatives of today's businesses.

 

__________________________________________

1 "IDC FutureScape: Worldwide Digital Business Strategies 2023 Predictions," Doc #CA49743822, October 2022.

Business Outlook

For the first quarter of 2023, Equinix expects revenues to range between $1.965 and $1.995 billion, an increase of 5 - 7% over the previous quarter, or a normalized and constant currency increase of 5 - 6%. This guidance includes power price increases in EMEA, and a negative foreign currency impact of $24 million when compared to the average FX rates in Q4 2022. Adjusted EBITDA is expected to range between $891 and $921 million, which includes a negative foreign currency impact of $9 million when compared to the average FX rates in Q4 2022, a step-down in repairs & maintenance costs incurred in the quarter, although offset in part by increased seasonal salary and benefit costs of $17 million attributed to the FICA reset. Adjusted EBITDA includes $6 million of integration costs related to acquisitions. Recurring capital expenditures are expected to range between $18 and $28 million.

For the full year of 2023, total revenues are expected to range between $8.145 and $8.245 billion, a 12 - 14% increase over the previous year on an as-reported basis, or a 14 - 15% increase on a normalized and constant currency basis, and includes a foreign currency benefit of $267 million when compared to the prior Equinix guidance FX rates. Excluding the impact of power price increases, this guidance represents a 9 - 10% increase on a normalized and constant currency basis. Adjusted EBITDA is expected to range between $3.615 and $3.695 billion, an adjusted EBITDA margin of 45%. This adjusted EBITDA includes approximately 290 basis points of cumulative negative margin impact due to inflated power rates across EMEA and APAC markets and a foreign currency benefit of $123 million when compared to the prior Equinix guidance FX rates.  For the year, the company expects to incur $35 million in integration costs related to acquisitions. AFFO is expected to range between $2.883 and $2.963 billion, a 6 - 9% increase over the previous year on an as-reported basis, or a 9 - 12% increase on a normalized and constant currency basis. This AFFO guidance includes $35 million in integration costs related to acquisitions. AFFO per share is expected to range between $30.79 and $31.64, a 4 - 7% increase over the previous year on an as-reported basis, or an 8 - 10% increase on a normalized and constant currency basis. This guidance excludes any capital market activities the company may undertake in the future. Non-recurring capital expenditures, including xScale®-related costs, are expected to range between $2.511 and $2.741 billion, and recurring capital expenditures are expected to range between $197 and $217 million. xScale-related on-balance sheet capital expenditures are expected to range between $131 and $181 million, which we anticipate will be reimbursed from both the current and future xScale JVs.

The U.S. dollar exchange rates used for 2023 guidance, taking into consideration the impact of our current foreign currency hedges, have been updated to $1.10 to the Euro, $1.23 to the Pound, S$1.34 to the U.S. dollar, ¥131 to the U.S. dollar and R$5.29 to the U.S. dollar. The Q4 2022 global revenue breakdown by currency for the Euro, British Pound, Singapore Dollar, Japanese Yen and Brazilian Real is 17%, 9%, 8%, 6% and 3%, respectively.

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.

Q4 2022 Results Conference Call and Replay Information

Equinix will discuss its quarterly results for the period ended December 31, 2022, along with its future outlook, in its quarterly conference call on Wednesday, February 15, 2023, at 5:30 p.m. ET (2:30 p.m. PT). A simultaneous live webcast of the call will be available on the company's Investor Relations website at www.equinix.com/investors. To hear the conference call live, please dial 1-517-308-9482 (domestic and international) and reference the passcode EQIX.

A replay of the call will be available one hour after the call through Wednesday, April 26, 2023, by dialing 1-888-293-8912 and referencing the passcode 2023. In addition, the webcast will be available at www.equinix.com/investors (no password required).

Investor Presentation and Supplemental Financial Information

Equinix has made available on its website a presentation designed to accompany the discussion of Equinix's results and future outlook, along with certain supplemental financial information and other data. Interested parties may access this information through the Equinix Investor Relations website at www.equinix.com/investors.

Additional Resources

About Equinix

Equinix (Nasdaq: EQIX) is the world's digital infrastructure company, enabling digital leaders to harness a trusted platform to bring together and interconnect the foundational infrastructure that powers their success. Equinix enables today's businesses to access all the right places, partners and possibilities they need to accelerate advantage. With Equinix, they can scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value.

Non-GAAP Financial Measures

Equinix provides all information required in accordance with generally accepted accounting principles ("GAAP"), but it believes that evaluating its ongoing operating results may be difficult if limited to reviewing only GAAP financial measures. Accordingly, Equinix uses non-GAAP financial measures to evaluate its operations.

Equinix provides normalized and constant currency growth rates, which are calculated to adjust for acquisitions, dispositions, integration costs, changes in accounting principles and foreign currency.

Equinix presents adjusted EBITDA, which is a non-GAAP financial measure. Adjusted EBITDA represents net income excluding income tax expense, interest income, interest expense, other income or expense, gain or loss on debt extinguishment, depreciation, amortization, accretion, stock-based compensation expense, restructuring charges, impairment charges, transaction costs and gain or loss on asset sales.

In presenting non-GAAP financial measures, such as adjusted EBITDA, cash cost of revenues, cash gross margins, cash operating expenses (also known as cash selling, general and administrative expenses or cash SG&A), adjusted EBITDA margins, free cash flow and adjusted free cash flow, Equinix excludes certain items that it believes are not good indicators of Equinix's current or future operating performance. These items are depreciation, amortization, accretion of asset retirement obligations and accrued restructuring charges, stock-based compensation, restructuring charges, impairment charges, transaction costs and gain or loss on asset sales. Equinix excludes these items in order for its lenders, investors and the industry analysts who review and report on Equinix to better evaluate Equinix's operating performance and cash spending levels relative to its industry sector and competitors.

Equinix excludes depreciation expense as these charges primarily relate to the initial construction costs of a data center, and do not reflect its current or future cash spending levels to support its business. Its data centers are long-lived assets, and have an economic life greater than 10 years. The construction costs of a data center do not recur with respect to such data center, although Equinix may incur initial construction costs in future periods with respect to additional data centers, and future capital expenditures remain minor relative to the initial investment. This is a trend it expects to continue. In addition, depreciation is also based on the estimated useful lives of the data centers. These estimates could vary from actual performance of the asset, are based on historic costs incurred to build out our data centers and are not indicative of current or expected future capital expenditures. Therefore, Equinix excludes depreciation from its operating results when evaluating its operations.

In addition, in presenting the non-GAAP financial measures, Equinix also excludes amortization expense related to acquired intangible assets. Amortization expense is significantly affected by the timing and magnitude of acquisitions, and these charges may vary in amount from period to period. We exclude amortization expense to facilitate a more meaningful evaluation of our current operating performance and comparisons to our prior periods. Equinix excludes accretion expense, both as it relates to its asset retirement obligations as well as its accrued restructuring charges, as these expenses represent costs which Equinix also believes are not meaningful in evaluating Equinix's current operations. Equinix excludes stock-based compensation expense, as it can vary significantly from period to period based on share price and the timing, size and nature of equity awards. As such, Equinix and many investors and analysts exclude stock-based compensation expense to compare its operating results with those of other companies. Equinix excludes restructuring charges from its non-GAAP financial measures. The restructuring charges relate to Equinix's decision to exit leases for excess space adjacent to several of its IBX® data centers, which it did not intend to build out, or its decision to reverse such restructuring charges. Equinix also excludes impairment charges generally related to certain long-lived assets. The impairment charges are related to expense recognized whenever events or changes in circumstances indicate that the carrying amount of assets are not recoverable. Equinix also excludes gain or loss on asset sales as it represents profit or loss that is not meaningful in evaluating the current or future operating performance. Finally, Equinix excludes transaction costs from its non-GAAP financial measures to allow more comparable comparisons of the financial results to the historical operations. The transaction costs relate to costs Equinix incurs in connection with business combinations and formation of joint ventures, including advisory, legal, accounting, valuation and other professional or consulting fees. Such charges generally are not relevant to assessing the long-term performance of Equinix. In addition, the frequency and amount of such charges vary significantly based on the size and timing of the transactions. Management believes items such as restructuring charges, impairment charges, transaction costs and gain or loss on asset sales are non-core transactions; however, these types of costs may occur in future periods.

Equinix also presents funds from operations ("FFO") and adjusted funds from operations ("AFFO"), both commonly used in the REIT industry, as supplemental performance measures. Additionally, Equinix presents AFFO per share, which is also commonly used in the REIT industry. AFFO per share offers investors and industry analysts a perspective of Equinix's underlying operating performance when compared to other REIT companies. FFO is calculated in accordance with the definition established by the National Association of Real Estate Investment Trusts ("NAREIT"). FFO represents net income or loss, excluding gain or loss from the disposition of real estate assets, depreciation and amortization on real estate assets and adjustments for unconsolidated joint ventures' and non-controlling interests' share of these items. AFFO represents FFO, excluding depreciation and amortization expense on non-real estate assets, accretion, stock-based compensation, stock-based charitable contributions, restructuring charges, impairment charges, transaction costs, an installation revenue adjustment, a straight-line rent expense adjustment, a contract cost adjustment, amortization of deferred financing costs and debt discounts and premiums, gain or loss on debt extinguishment, an income tax expense adjustment, recurring capital expenditures, net income or loss from discontinued operations, net of tax and adjustments from FFO to AFFO for unconsolidated joint ventures' and non-controlling interests' share of these items. Equinix excludes depreciation expense, amortization expense, accretion, stock-based compensation, restructuring charges, impairment charges and transaction costs for the same reasons that they are excluded from the other non-GAAP financial measures mentioned above.

Equinix includes an adjustment for revenues from installation fees, since installation fees are deferred and recognized ratably over the period of contract term, although the fees are generally paid in a lump sum upon installation. Equinix includes an adjustment for straight-line rent expense on its operating leases, since the total minimum lease payments are recognized ratably over the lease term, although the lease payments generally increase over the lease term. Equinix also includes an adjustment to contract costs incurred to obtain contracts, since contract costs are capitalized and amortized over the estimated period of benefit on a straight-line basis, although costs of obtaining contracts are generally incurred and paid during the period of obtaining the contracts. The adjustments for installation revenues, straight-line rent expense and contract costs are intended to isolate the cash activity included within the straight-lined or amortized results in the consolidated statement of operations. Equinix excludes the amortization of deferred financing costs and debt discounts and premiums as these expenses relate to the initial costs incurred in connection with its debt financings that have no current or future cash obligations. Equinix excludes gain or loss on debt extinguishment since it represents a cost that is not a good indicator of Equinix's current or future operating performance. Equinix includes an income tax expense adjustment, which represents the non-cash tax impact due to changes in valuation allowances and uncertain tax positions that do not relate to the current period's operations. Equinix excludes recurring capital expenditures, which represent expenditures to extend the useful life of its IBX and xScale data centers or other assets that are required to support current revenues. Equinix also excludes net income or loss from discontinued operations, net of tax, which represents results that are not a good indicator of our current or future operating performance.

Equinix presents constant currency results of operations, which is a non-GAAP financial measure and is not meant to be considered in isolation or as an alternative to GAAP results of operations. However, Equinix has presented this non-GAAP financial measure to provide investors with an additional tool to evaluate its operating results without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of Equinix's business performance. To present this information, Equinix's current and comparative prior period revenues and certain operating expenses from entities with functional currencies other than the U.S. dollar are converted into U.S. dollars at a consistent exchange rate for purposes of each result being compared.

Non-GAAP financial measures are not a substitute for financial information prepared in accordance with GAAP. Non-GAAP financial measures should not be considered in isolation, but should be considered together with the most directly comparable GAAP financial measures and the reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures. Equinix presents such non-GAAP financial measures to provide investors with an additional tool to evaluate its operating results in a manner that focuses on what management believes to be its core, ongoing business operations. Management believes that the inclusion of these non-GAAP financial measures provides consistency and comparability with past reports and provides a better understanding of the overall performance of the business and its ability to perform in subsequent periods. Equinix believes that if it did not provide such non-GAAP financial information, investors would not have all the necessary data to analyze Equinix effectively.

Investors should note that the non-GAAP financial measures used by Equinix may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as those of other companies. Investors should, therefore, exercise caution when comparing non-GAAP financial measures used by us to similarly titled non-GAAP financial measures of other companies. Equinix does not provide forward-looking guidance for certain financial data, such as depreciation, amortization, accretion, stock-based compensation, net income or loss from operations, cash generated from operating activities and cash used in investing activities, and as a result, is not able to provide a reconciliation of GAAP to non-GAAP financial measures for forward-looking data without unreasonable effort. The impact of such adjustments could be significant. Equinix intends to calculate the various non-GAAP financial measures in future periods consistent with how they were calculated for the periods presented within this press release.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, risks to our business and operating results related to the COVID-19 pandemic; the current inflationary environment; foreign currency exchange rate fluctuations; increased costs to procure power and the general volatility in the global energy market; the challenges of acquiring, operating and constructing IBX and xScale data centers and developing, deploying and delivering Equinix products and solutions; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenues from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; risks related to our taxation as a REIT and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent and upcoming Equinix quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.

 

EQUINIX, INC.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)



Three Months Ended


Twelve Months Ended


December 31,
2022


September 30,
2022


December 31,
2021


December 31,
2022


December 31,
2021

Recurring revenues

$      1,773,380


$      1,748,132


$      1,603,474


$      6,871,287


$      6,220,485

Non-recurring revenues

97,465


92,527


102,904


391,818


415,052

Revenues

1,870,845


1,840,659


1,706,378


7,263,105


6,635,537

Cost of revenues

970,700


934,669


910,435


3,751,501


3,472,422

Gross profit

900,145


905,990


795,943


3,511,604


3,163,115

Operating expenses:










Sales and marketing

207,233


193,089


189,798


786,560


741,232

General and administrative

400,183


375,483


343,711


1,498,701


1,301,797

Transaction costs

10,529


2,007


9,405


21,839


22,769

(Gain) loss on asset sales


2,252


3,304


3,976


(10,845)

Total operating expenses

617,945


572,831


546,218


2,311,076


2,054,953

Income from operations

282,200


333,159


249,725


1,200,528


1,108,162

Interest and other income (expense):










Interest income

18,462


11,192


1,130


36,268


2,644

Interest expense

(94,200)


(91,346)


(80,227)


(356,337)


(336,082)

Other expense

(28,895)


(6,735)


(5,802)


(51,417)


(50,647)

Gain (loss) on debt extinguishment

143


75


214


327


(115,125)

Total interest and other, net

(104,490)


(86,814)


(84,685)


(371,159)


(499,210)

Income before income taxes

177,710


246,345


165,040


829,369


608,952

Income tax expense

(48,807)


(34,606)


(41,899)


(124,792)


(109,224)

Net income

128,903


211,739


123,141


704,577


499,728

Net (income) loss attributable to non-controlling interests

(140)


68


133


(232)


463

Net income attributable to Equinix

$         128,763


$         211,807


$         123,274


$         704,345


$         500,191

Net income per share attributable to Equinix:







Basic net income per share

$               1.39


$               2.30


$               1.37


$               7.69


$               5.57

Diluted net income per share

$               1.39


$               2.30


$               1.36


$               7.67


$               5.53

Shares used in computing basic net income per share

92,573


91,896


90,240


91,569


89,772

Shares used in computing diluted net income per share

92,752


92,135


90,752


91,828


90,409











 

EQUINIX, INC.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(in thousands)

(unaudited)



Three Months Ended


Twelve Months Ended


December 31,
2022


September 30,
2022


December 31,
2021


December 31,
2022


December 31,
2021

Net income

$       128,903


$       211,739


$       123,141


$       704,577


$       499,728

Other comprehensive income (loss), net of tax:

Foreign currency translation adjustment ("CTA") gain (loss)

796,716


(703,640)


(115,278)


(769,886)


(559,969)

Unrealized gain (loss) on cash flow hedges

(50,231)


6,120


8,514


40,543


60,562

Net investment hedge CTA gain (loss)

(379,960)


360,350


62,763


425,701


326,982

Net actuarial gain (loss) on defined benefit plans

(42)


(19)


16


(101)


57

Total other comprehensive income (loss), net of tax

366,483


(337,189)


(43,985)


(303,743)


(172,368)

Comprehensive income (loss), net of tax

495,386


(125,450)


79,156


400,834


327,360

Net (income) loss attributable to non-controlling interests

(140)


68


133


(232)


463

Other comprehensive (income) loss attributable to non-controlling interests

(12)


28


(5)


48


(15)

Comprehensive income (loss) attributable to Equinix

$       495,234


$     (125,354)


$         79,284


$       400,650


$       327,808

 

EQUINIX, INC.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)



December 31, 2022


December 31, 2021

Assets




Cash and cash equivalents

$               1,906,421


$               1,536,358

Accounts receivable, net

855,380


681,809

Other current assets

459,138


462,739

Assets held for sale

84,316


276,195

Total current assets

3,305,255


2,957,101

Property, plant and equipment, net

16,649,534


15,445,775

Operating lease right-of-use assets

1,427,950


1,282,418

Goodwill

5,654,217


5,372,071

Intangible assets, net

1,897,649


1,935,267

Other assets

1,376,137


926,066

Total assets

$             30,310,742


$             27,918,698

Liabilities and Stockholders' Equity




Accounts payable and accrued expenses

$               1,004,800


$                  879,144

Accrued property, plant and equipment

281,347


187,334

Current portion of operating lease liabilities

139,538


144,029

Current portion of finance lease liabilities

151,420


147,841

Current portion of mortgage and loans payable

9,847


33,087

Other current liabilities

251,346


214,519

Total current liabilities

1,838,298


1,605,954

Operating lease liabilities, less current portion

1,272,812


1,107,180

Finance lease liabilities, less current portion

2,143,690


1,989,668

Mortgage and loans payable, less current portion

642,708


586,577

Senior notes, less current portion

12,109,539


10,984,144

Other liabilities

797,863


763,411

Total liabilities

18,804,910


17,036,934

Common stock

93


91

Additional paid-in capital

17,320,017


15,984,597

Treasury stock

(71,966)


(112,208)

Accumulated dividends

(7,317,570)


(6,165,140)

Accumulated other comprehensive loss

(1,389,446)


(1,085,751)

Retained earnings

2,964,838


2,260,493

Total Equinix stockholders' equity

11,505,966


10,882,082

Non-controlling interests

(134)


(318)

Total stockholders' equity

11,505,832


10,881,764

Total liabilities and stockholders' equity

$             30,310,742


$             27,918,698









Ending headcount by geographic region is as follows:




Americas headcount

5,493


5,056

EMEA headcount

3,936


3,611

Asia-Pacific headcount

2,668


2,277

Total headcount

12,097


10,944

 

EQUINIX, INC.

Summary of Debt Principal Outstanding

(in thousands)

(unaudited)



December 31, 2022


December 31, 2021





Finance lease liabilities

$                         2,295,110


$                          2,137,509





Term loans

618,028


549,343

Mortgage payable and other loans payable

34,527


70,321

Plus (minus): mortgage premium, debt discount and issuance costs, net

1,062


(1,276)

Total mortgage and loans payable principal

653,617


618,388





Senior notes

12,109,539


10,984,144

Plus: debt discount and issuance costs

117,351


117,986

Less: debt premium


Total senior notes principal

12,226,890


11,102,130





Total debt principal outstanding

$                       15,175,617


$                        13,858,027

 

EQUINIX, INC.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)




Three Months Ended


Twelve Months Ended



December 31,
2022


September 30,
2022


December 31,
2021


December 31,
2022


December 31,
2021












Cash flows from operating activities:








Net income

$       128,903


$       211,739


$       123,141


$       704,577


$       499,728


Adjustments to reconcile net income to net cash provided by operating activities:


Depreciation, amortization and accretion

438,492


431,668


428,764


1,739,374


1,660,524


Stock-based compensation

107,519


101,830


96,379


403,983


363,774


Amortization of debt issuance costs and debt discounts and premiums

4,553


4,533


4,375


17,826


17,135


(Gain) loss on debt extinguishment

(143)


(75)


(214)


(327)


115,125


Loss (gain) on asset sales


2,252


3,304


3,976


(10,845)


Other items

44,880


10,536


6,089


67,298


34,499


Changes in operating assets and liabilities:








Accounts receivable

(56,209)


29,823


109,440


(153,415)


(1,873)


Income taxes, net

(17,701)


29,656


27,598


(7,827)


(16,602)


Accounts payable and accrued expenses

31,511


103,941


54,628


114,600


64,596


Operating lease right-of-use assets

36,171


38,684


37,862


149,094


140,590


Operating lease liabilities

(34,586)


(31,873)


(39,782)


(132,831)


(177,533)


Other assets and liabilities

76,799


(112,425)


40,521


56,854


(141,912)

Net cash provided by operating activities

760,189


820,289


892,105


2,963,182


2,547,206

Cash flows from investing activities:






Purchases, sales and maturities of investments, net

(35,222)


(22,398)


(30,394)


(122,569)


(103,476)


Business acquisitions, net of cash and restricted cash acquired


(80,342)



(964,010)


(158,498)


Real estate acquisitions

(208,377)


(6,568)


(6,988)


(248,276)


(201,837)


Purchases of other property, plant and equipment

(827,927)


(552,729)


(817,405)


(2,278,004)


(2,751,512)


Proceeds from asset sales


(1,509)


34,091


249,906


208,585

Net cash used in investing activities

(1,071,526)


(663,546)


(820,696)


(3,362,953)


(3,006,738)























































Cash flows from financing activities:








Proceeds from employee equity awards


37,667



81,543


77,628


Payment of dividend distributions

(287,573)


(291,169)


(259,455)


(1,151,459)


(1,042,909)


Proceeds from public offering of common stock, net of offering costs


796,018


398,271


796,018


497,870


Proceeds from mortgage and loans payable




676,850



Proceeds from senior notes, net of debt discounts




1,193,688


3,878,662


Repayment of finance lease liabilities

(36,394)


(28,252)


(35,410)


(134,202)


(165,539)


Repayment of mortgage and loans payable

(1,714)


(25,195)


(10,584)


(587,941)


(717,010)


Repayment of senior notes





(1,990,650)


Debt extinguishment costs





(99,185)


Debt issuance costs




(17,731)


(25,102)

Net cash provided by (used in) financing activities

(325,681)


489,069


92,822


856,766


413,765

Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash

37,398


(39,063)


(6,335)


(98,201)


(30,474)

Net increase (decrease) in cash, cash equivalents and restricted cash

(599,620)


606,749


157,896


358,794


(76,241)

Cash, cash equivalents and restricted cash at beginning of period

2,507,868


1,901,119


1,391,558


1,549,454


1,625,695

Cash, cash equivalents and restricted cash at end of period

$    1,908,248


$    2,507,868


$    1,549,454


$    1,908,248


$    1,549,454

Supplemental cash flow information:







Cash paid for taxes

$         44,091


$         22,462


$         16,019


$       140,312


$       134,411

Cash paid for interest

$       128,511


$         91,406


$       110,282


$       430,217


$       426,439












Free cash flow (negative free cash flow)(1)

$     (276,115)


$       179,141


$       101,803


$     (277,202)


$     (356,056)












Adjusted free cash flow (2)

$        (67,738)


$       266,051


$       108,791


$       935,084


$            4,279

























































































(1)

We define free cash flow (negative free cash flow) as net cash provided by operating activities plus net cash provided by (used in) investing activities (excluding the net purchases, sales and maturities of investments) as presented below:


Net cash provided by operating activities as presented above

$       760,189


$       820,289


$       892,105


$    2,963,182


$    2,547,206


Net cash used in investing activities as presented above

(1,071,526)


(663,546)


(820,696)


(3,362,953)


(3,006,738)


Purchases, sales and maturities of investments, net

35,222


22,398


30,394


122,569


103,476


Free cash flow (negative free cash flow)

$     (276,115)


$       179,141


$       101,803


$     (277,202)


$     (356,056)












(2)

We define adjusted free cash flow as free cash flow (negative free cash flow) as defined above, excluding any real estate and business acquisitions, net of cash and restricted cash acquired as presented below:


Free cash flow (negative free cash flow) as defined above

$     (276,115)


$       179,141


$       101,803


$     (277,202)


$     (356,056)


Less business acquisitions, net of cash and restricted cash acquired


80,342



964,010


158,498


Less real estate acquisitions

208,377


6,568


6,988


248,276


201,837


Adjusted free cash flow

$        (67,738)


$       266,051


$       108,791


$       935,084


$            4,279












 

EQUINIX, INC.

Non-GAAP Measures and Other Supplemental Data

(in thousands)

(unaudited)




Three Months Ended


Twelve Months Ended



December
31, 2022


September
30, 2022


December
31, 2021


December
31, 2022


December
31, 2021


Recurring revenues

$ 1,773,380


$ 1,748,132


$ 1,603,474


$ 6,871,287


$ 6,220,485


Non-recurring revenues

97,465


92,527


102,904


391,818


415,052


Revenues (1)

1,870,845


1,840,659


1,706,378


7,263,105


6,635,537













Cash cost of revenues (2)

642,176


610,827


577,991


2,436,074


2,197,496


Cash gross profit (3)

1,228,669


1,229,832


1,128,387


4,827,031


4,438,041













Cash operating expenses (4)(7):










Cash sales and marketing expenses (5)

140,697


120,467


121,637


506,609


464,084


Cash general and administrative

    expenses (6)

249,232


238,449


219,173


950,722


829,573


Total cash operating expenses (4)(7)

389,929


358,916


340,810


1,457,331


1,293,657













Adjusted EBITDA (8)

$    838,740


$    870,916


$    787,577


$ 3,369,700


$ 3,144,384













Cash gross margins (9)

66 %


67 %


66 %


66 %


67 %













Adjusted EBITDA

    margins (10)

45 %


47 %


46 %


46 %


47 %













Adjusted EBITDA flow-through rate (11)

(107) %


45 %


4 %


36 %


46 %













FFO (12)

$    406,945


$    488,396


$    406,880


$ 1,826,334


$ 1,572,997













AFFO (13) (14)

$    657,818


$    712,036


$    564,194


$ 2,713,878


$ 2,451,229













Basic FFO per share (15)

$           4.40


$           5.31


$           4.51


$         19.94


$         17.52













Diluted FFO per share (15)

$           4.39


$           5.30


$           4.48


$         19.89


$         17.40













Basic AFFO per share (15)

$           7.11


$           7.75


$           6.25


$         29.64


$         27.31













Diluted AFFO per share(15)

$           7.09


$           7.73


$           6.22


$         29.55


$         27.11























(1)

The geographic split of our revenues on a services basis is presented below:

















Americas Revenues:






















Colocation

$    568,240


$    555,352


$    512,424


$ 2,187,751


$ 2,002,253


Interconnection

197,337


190,283


177,661


756,214


678,677


Managed infrastructure

59,244


54,704


46,045


218,499


168,577


Other

4,885


5,127


5,184


20,727


12,430


Recurring revenues

829,706


805,466


741,314


3,183,191


2,861,937


Non-recurring revenues

42,065


40,695


40,801


166,026


159,814


Revenues

$    871,771


$    846,161


$    782,115


$ 3,349,217


$ 3,021,751
























EMEA Revenues:






















Colocation

$    450,480


$    445,733


$    410,457


$ 1,744,121


$ 1,597,830


Interconnection

66,710


66,703


66,821


268,398


259,538


Managed infrastructure

29,431


28,493


30,205


119,361


124,937


Other

23,882


23,105


5,259


75,449


19,626


Recurring revenues

570,503


564,034


512,742


2,207,329


2,001,931


Non-recurring revenues

31,208


27,778


40,601


135,875


153,285


Revenues

$    601,711


$    591,812


$    553,343


$ 2,343,204


$ 2,155,216













Asia-Pacific Revenues:






















Colocation

$    291,480


$    295,008


$    268,908


$ 1,150,738


$ 1,042,131


Interconnection

61,572


61,264


58,418


243,664


223,287


Managed infrastructure

17,819


19,269


20,928


77,646


87,343


Other

2,300


3,091


1,164


8,719


3,856


Recurring revenues

373,171


378,632


349,418


1,480,767


1,356,617


Non-recurring revenues

24,192


24,054


21,502


89,917


101,953


Revenues

$    397,363


$    402,686


$    370,920


$ 1,570,684


$ 1,458,570













Worldwide Revenues:






















Colocation

$ 1,310,200


$ 1,296,093


$ 1,191,789


$ 5,082,610


$ 4,642,214


Interconnection

325,619


318,250


302,900


1,268,276


1,161,502


Managed infrastructure

106,494


102,466


97,178


415,506


380,857


Other

31,067


31,323


11,607


104,895


35,912


Recurring revenues

1,773,380


1,748,132


1,603,474


6,871,287


6,220,485


Non-recurring revenues

97,465


92,527


102,904


391,818


415,052


Revenues

$ 1,870,845


$ 1,840,659


$ 1,706,378


$ 7,263,105


$ 6,635,537























(2)

We define cash cost of revenues as cost of revenues less depreciation, amortization, accretion and stock-based compensation as presented below:







Cost of revenues

$    970,700


$    934,669


$    910,435


$ 3,751,501


$ 3,472,422


Depreciation, amortization and accretion expense

(316,549)


(313,110)


(322,194)


(1,270,399)


(1,236,488)


Stock-based compensation expense

(11,975)


(10,732)


(10,250)


(45,028)


(38,438)


Cash cost of revenues

$    642,176


$    610,827


$    577,991


$ 2,436,074


$ 2,197,496













The geographic split of our cash cost of revenues is presented below:

















Americas cash cost of revenues

$    263,374


$    247,976


$    244,245


$    994,389


$    911,556


EMEA cash cost of revenues

226,574


220,887


208,569


866,292


808,587


Asia-Pacific cash cost of revenues

152,228


141,964


125,177


575,393


477,353


Cash cost of revenues

$    642,176


$    610,827


$    577,991


$ 2,436,074


$ 2,197,496






(3)

We define cash gross profit as revenues less cash cost of revenues (as defined above).












(4)

We define cash operating expense as selling, general, and administrative expense less depreciation, amortization, and stock-based compensation. We also refer to cash operating expense as cash selling, general and administrative expense or "cash SG&A".







Selling, general, and administrative expense

$    607,416


$    568,572


$    533,509


$ 2,285,261


$ 2,043,029


Depreciation and amortization expense

(121,943)


(118,558)


(106,570)


(468,975)


(424,036)


Stock-based compensation expense

(95,544)


(91,098)


(86,129)


(358,955)


(325,336)


Cash operating expense

$    389,929


$    358,916


$    340,810


$ 1,457,331


$ 1,293,657












(5)

We define cash sales and marketing expense as sales and marketing expense less depreciation, amortization and stock-based compensation as presented below:













Sales and marketing expense

$    207,233


$    193,089


$    189,798


$    786,560


$    741,232


Depreciation and amortization expense

(49,604)


(50,115)


(48,064)


(197,157)


(198,004)


Stock-based compensation expense

(16,932)


(22,507)


(20,097)


(82,794)


(79,144)


Cash sales and marketing expense

$    140,697


$    120,467


$    121,637


$    506,609


$    464,084


































(6)

We define cash general and administrative expense as general and administrative expense less depreciation, amortization and stock-based compensation as presented below:













General and administrative expense

$    400,183


$    375,483


$    343,711


$ 1,498,701


$ 1,301,797


Depreciation and amortization expense

(72,339)


(68,443)


(58,506)


(271,818)


(226,032)


Stock-based compensation expense

(78,612)


(68,591)


(66,032)


(276,161)


(246,192)


Cash general and administrative expense

$    249,232


$    238,449


$    219,173


$    950,722


$    829,573












(7)

The geographic split of our cash operating expense, or cash SG&A, as defined above, is presented below:













Americas cash SG&A

$    214,560


$    203,026


$    203,594


$    833,053


$    783,735


EMEA cash SG&A

104,648


87,639


85,083


367,410


313,296


Asia-Pacific cash SG&A

70,721


68,251


52,133


256,868


196,626


Cash SG&A

$    389,929


$    358,916


$    340,810


$ 1,457,331


$ 1,293,657












(8)

We define adjusted EBITDA as income from operations excluding depreciation, amortization, accretion, stock-based compensation, restructuring charges, impairment charges, transaction costs and gain or loss on asset sales as presented below:













Net income

$    128,903


$    211,739


$    123,141


$    704,577


$    499,728


Income tax expense

48,807


34,606


41,899


124,792


109,224


Interest income

(18,462)


(11,192)


(1,130)


(36,268)


(2,644)


Interest expense

94,200


91,346


80,227


356,337


336,082


Other expense

28,895


6,735


5,802


51,417


50,647


(Gain) loss on debt extinguishment

(143)


(75)


(214)


(327)


115,125


Depreciation, amortization and accretion expense

438,492


431,668


428,764


1,739,374


1,660,524


Stock-based compensation expense

107,519


101,830


96,379


403,983


363,774


Transaction costs

10,529


2,007


9,405


21,839


22,769


(Gain) loss on asset sales


2,252


3,304


3,976


(10,845)


Adjusted EBITDA

$    838,740


$    870,916


$    787,577


$ 3,369,700


$ 3,144,384













The geographic split of our adjusted EBITDA is presented below:

















Americas net income (loss)

$   (67,580)


$       48,369


$       73,523


$         (584)


$ (189,187)


Americas income tax expense (benefit)

(33,279)


34,606


(65,413)


42,587


1,535


Americas interest income

(16,259)


(10,374)


(912)


(32,265)


(1,993)


Americas interest expense

83,363


80,681


70,973


316,934


298,376


Americas other expense (income)

104,539


(68,241)


(48,621)


(42,895)


(59,019)


Americas loss on debt extinguishment


39



198


115,668


Americas depreciation, amortization and accretion expense

237,919


234,788


221,814


932,892


866,039


Americas stock-based compensation expense

76,131


69,272


71,652


282,997


270,391


Americas transaction costs

9,003


3,241


6,372


17,950


17,328


Americas loss on asset sales


2,778


4,888


3,961


7,322


Americas adjusted EBITDA

$    393,837


$    395,159


$    334,276


$ 1,521,775


$ 1,326,460













EMEA net income

$    195,224


$       82,558


$       35,116


$    477,808


$    385,086


EMEA income tax expense

16,531



68,786


16,650


69,162


EMEA interest income

(1,251)


(487)


(100)


(2,530)


(166)


EMEA interest expense

2,675


2,219


1,059


5,698


4,891


EMEA other expense (income)

(77,880)


69,245


21,660


77,705


71,915


EMEA depreciation, amortization and accretion expense

116,097


112,065


116,813


459,098


458,754


EMEA stock-based compensation expense

18,840


19,174


15,312


73,294


57,578


EMEA transaction costs

253


(1,488)


2,629


2,016


4,280


EMEA gain on asset sales



(1,584)


(237)


(18,167)


EMEA adjusted EBITDA

$    270,489


$    283,286


$    259,691


$ 1,109,502


$ 1,033,333













Asia-Pacific net income

$         1,259


$       80,812


$       14,502


$    227,353


$    303,829


Asia-Pacific income tax expense

65,555



38,526


65,555


38,527


Asia-Pacific interest income

(952)


(331)


(118)


(1,473)


(485)


Asia-Pacific interest expense

8,162


8,446


8,195


33,705


32,815


Asia-Pacific other expense

2,236


5,731


32,763


16,607


37,751


Asia-Pacific gain on debt extinguishment

(143)


(114)


(214)


(525)


(543)


Asia-Pacific depreciation, amortization and accretion expense

84,476


84,815


90,137


347,384


335,731


Asia-Pacific stock-based compensation expense

12,548


13,384


9,415


47,692


35,805


Asia-Pacific transaction costs

1,273


254


404


1,873


1,161


Asia-Pacific (gain) loss on asset sales


(526)



252



Asia-Pacific adjusted EBITDA

$    174,414


$    192,471


$    193,610


$    738,423


$    784,591












(9)

We define cash gross margins as cash gross profit divided by revenues.

















Our cash gross margins by geographic region is presented below:

















Americas cash gross margins

70 %


71 %


69 %


70 %


70 %


EMEA cash gross margins

62 %


63 %


62 %


63 %


62 %


Asia-Pacific cash gross margins

62 %


65 %


66 %


63 %


67 %












(10)

We define adjusted EBITDA margins as adjusted EBITDA divided by revenues.













Americas adjusted EBITDA margins

45 %


47 %


43 %


45 %


44 %


EMEA adjusted EBITDA margins

45 %


48 %


47 %


47 %


48 %


Asia-Pacific adjusted EBITDA margins

44 %


48 %


52 %


47 %


54 %



(11)

We define adjusted EBITDA flow-through rate as incremental adjusted EBITDA growth divided by incremental revenue growth as follows:













Adjusted EBITDA - current period

$    838,740


$    870,916


$    787,577


$ 3,369,700


$ 3,144,384


Less adjusted EBITDA - prior period

(870,916)


(860,332)


(786,298)


(3,144,384)


(2,852,898)


Adjusted EBITDA growth

$   (32,176)


$       10,584


$         1,279


$    225,316


$    291,486













Revenues - current period

$ 1,870,845


$ 1,840,659


$ 1,706,378


$ 7,263,105


$ 6,635,537


Less revenues - prior period

(1,840,659)


(1,817,154)


(1,675,176)


(6,635,537)


(5,998,545)


Revenue growth

$       30,186


$       23,505


$       31,202


$    627,568


$    636,992













Adjusted EBITDA flow-through rate

(107) %


45 %


4 %


36 %


46 %












(12)

FFO is defined as net income or loss, excluding gain or loss from the disposition of real estate assets, depreciation and amortization on real estate assets and adjustments for unconsolidated joint ventures' and non-controlling interests' share of these items.













Net income

$    128,903


$    211,739


$    123,141


$    704,577


$    499,728


Net (income) loss attributable to non-controlling interests

(140)


68


133


(232)


463


Net income attributable to Equinix

128,763


211,807


123,274


704,345


500,191


Adjustments:











Real estate depreciation

274,625


271,920


277,031


1,104,787


1,073,148


(Gain) loss on disposition of real estate property

437


2,002


4,693


7,134


(6,439)


Adjustments for FFO from unconsolidated joint ventures

3,120


2,667


1,882


10,068


6,097


FFO attributable to common shareholders

$    406,945


$    488,396


$    406,880


$ 1,826,334


$ 1,572,997












(13)

AFFO is defined as FFO, excluding depreciation and amortization expense on non-real estate assets, accretion, stock-based compensation, stock-based charitable contributions, restructuring charges, impairment charges, transaction costs, an installation revenue adjustment, a straight-line rent expense adjustment, a contract cost adjustment, amortization of deferred financing costs and debt discounts and premiums, gain or loss on debt extinguishment, an income tax expense adjustment, net income or loss from discontinued operations, net of tax, recurring capital expenditures and adjustments from FFO to AFFO for unconsolidated joint ventures' and non-controlling interests' share of these items.


FFO attributable to common shareholders

$    406,945


$    488,396


$    406,880


$ 1,826,334


$ 1,572,997


Adjustments:











Installation revenue adjustment

6,975


9,959


5,767


17,745


27,928


Straight-line rent expense adjustment

1,585


6,811


(1,920)


16,263


9,677


Amortization of deferred financing costs and debt discounts and premiums

4,553


4,533


4,375


17,826


17,135


Contract cost adjustment

(17,380)


(12,678)


(19,753)


(52,888)


(63,064)


Stock-based compensation expense

107,519


101,830


96,379


403,983


363,774


Stock-based charitable contributions

34,974




49,013



Non-real estate depreciation expense

111,342


106,400


99,014


426,666


377,658


Amortization expense

51,438


51,873


50,056


204,755


205,484


Accretion expense

1,086


1,476


2,663


3,166


4,234


Recurring capital expenditures

(80,047)


(50,182)


(85,693)


(188,885)


(199,089)


(Gain) loss on debt extinguishment

(143)


(75)


(214)


(327)


115,125


Transaction costs

10,529


2,007


9,405


21,839


22,769


Impairment charges (1)


1,815


(465)


1,815


31,847


Income tax expense (benefit) adjustment (1)

19,806


(965)


(3,086)


(31,165)


(38,505)


Adjustments for AFFO from unconsolidated joint ventures

(1,364)


836


786


(2,262)


3,259


AFFO attributable to common shareholders

$    657,818


$    712,036


$    564,194


$ 2,713,878


$ 2,451,229













(1)  Impairment charges relate to the impairment of an indemnification asset resulting from the settlement of a pre-acquisition uncertain tax position, which was recorded as Other Income (Expense) on the Condensed Consolidated Statements of Operations. This impairment charge was offset by the recognition of tax benefits in the same amount, which was included within the Income tax expense adjustment line on the table above.

(14)

 Following is how we reconcile from adjusted EBITDA to AFFO:











Adjusted EBITDA

$    838,740


$    870,916


$    787,577


$ 3,369,700


$ 3,144,384


Adjustments:











Interest expense, net of interest income

(75,738)


(80,154)


(79,097)


(320,069)


(333,438)


Amortization of deferred financing costs and debt discounts and premiums

4,553


4,533


4,375


17,826


17,135


Income tax expense

(48,807)


(34,606)


(41,899)


(124,792)


(109,224)


Income tax expense (benefit) adjustment (1)

19,806


(965)


(3,086)


(31,165)


(38,505)


Straight-line rent expense adjustment

1,585


6,811


(1,920)


16,263


9,677


Stock-based charitable contributions

34,974




49,013



Contract cost adjustment

(17,380)


(12,678)


(19,753)


(52,888)


(63,064)


Installation revenue adjustment

6,975


9,959


5,767


17,745


27,928


Recurring capital expenditures

(80,047)


(50,182)


(85,693)


(188,885)


(199,089)


Other expense

(28,895)


(6,735)


(5,802)


(51,417)


(50,647)


(Gain) loss on disposition of real estate property

437


2,002


4,693


7,134


(6,439)


Adjustments for unconsolidated JVs' and non-controlling interests

1,615


3,572


2,801


7,574


9,819


Adjustments for impairment charges (1)


1,815


(465)


1,815


31,847


Adjustment for gain (loss) on sale of asset


(2,252)


(3,304)


(3,976)


10,845


AFFO attributable to common shareholders

$    657,818


$    712,036


$    564,194


$ 2,713,878


$ 2,451,229













(1)  Impairment charges relate to the impairment of an indemnification asset resulting from the settlement of a pre-acquisition uncertain tax position, which was recorded as Other Income (Expense) on the Condensed Consolidated Statements of Operations. This impairment charge was offset by the recognition of tax benefits in the same amount, which was included within the Income tax expense adjustment line on the table above.

(15)

The shares used in the computation of basic and diluted FFO and AFFO per share attributable to Equinix is presented below:













Shares used in computing basic net income per share, FFO per share and AFFO per share

92,573


91,896


90,240


91,569


89,772


Effect of dilutive securities:











Employee equity awards

179


239


512


259


637


Shares used in computing diluted net income per share, FFO per share and AFFO per share

92,752


92,135


90,752


91,828


90,409













Basic FFO per share

$           4.40


$           5.31


$           4.51


$         19.94


$         17.52


Diluted FFO per share

$           4.39


$           5.30


$           4.48


$         19.89


$         17.40













Basic AFFO per share

$           7.11


$           7.75


$           6.25


$         29.64


$         27.31


Diluted AFFO per share

$           7.09


$           7.73


$           6.22


$         29.55


$         27.11

 

Equinix.  (PRNewsFoto/Equinix) (PRNewsfoto/Equinix, Inc.)

 

SOURCE Equinix, Inc.

For further information: Equinix Investor Relations Contact: invest@equinix.com, Equinix Media Contact: press@equinix.com