Financial Data and Key Metrics Changes - Total consolidated revenues for Q2 2022 were $289 million, a 22% increase from the same period last year, driven by expansion in AUM and FEEUM [38] - GAAP net income attributable to common stockholders was a loss of $37 million, representing a $104 million increase compared to the same quarter of last year [38] - Total company adjusted EBITDA was $31 million, up from $15 million in the same period last year [38] - Digital AUM reached $48 billion, growing by 37% from $35 billion in the same period last year [39] Business Line Data and Key Metrics Changes - The Investment Management (IM) segment saw revenue and earnings growth driven by higher levels of fee-earning equity under management, with annualized fee revenues increasing from $94 million to $240 million [43] - The Digital Operating segment's consolidated adjusted EBITDA was $101 million, a 24% increase from the same period last year [41] - The IM revenue growth was impacted by one-time catch-up fees from last year, but excluding those, consolidated revenues increased by approximately 18% [40] Market Data and Key Metrics Changes - Bookings across global tower portfolios increased by 5% year-over-year, with fiber businesses seeing over a 28% increase [27] - Data center bookings experienced a 6x growth factor, indicating strong demand in that vertical [27] - The company reported a 128% year-over-year increase in the pipeline for data center leases that are in diligence or discussions [69] Company Strategy and Development Direction - The company aims to double its FEEUM from just under $25 billion to over $50 billion in the next three years, focusing on high-quality investments [9][10] - The strategic roadmap includes capital deployment in three areas: strategic digital M&A, capital structure optimization, and share purchases/dividends [13][16] - The company is transitioning to an asset-light model, which is expected to enhance earnings growth and scalability [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in executing their strategy despite macroeconomic challenges, highlighting the resilience of digital infrastructure demand [25] - The company anticipates continued strong performance in its portfolio companies, with positive growth across all core verticals [26] - Management noted that periods of economic downturn often present opportunities for growth and deeper customer relationships [21] Other Important Information - The company has achieved 2/3 of its fundraising goals for 2022 at the halfway point, indicating strong investor interest [32] - The recent recapitalization of DataBank is expected to create a permanent capital vehicle, enhancing growth prospects [29] - The company plans to reinitiate dividends in Q3, reflecting a commitment to returning value to shareholders [16] Q&A Session Summary Question: What is the outlook for the pipeline across digital infrastructure verticals given the macro environment? - Management reported a tremendous second quarter in terms of new bookings, with data center backlogs up over 128% year-over-year, indicating strong demand across verticals [69] Question: What is the update on M&A opportunities and private market valuations? - Management noted that valuations are coming down, with fiber deals moving from expected 22-24x to low to mid-teens, presenting opportunities for strategic acquisitions [72] Question: Which segments of digital infrastructure have the most pricing power going forward? - Management indicated that the data center sector has experienced the highest price increases, with prices per megawatt and rack rising by 10% to 20% [75] Question: What is the current carried interest split between shareholders and employees? - Management stated that the carried interest split is typically in the range of 60-40 to 70-30, and they are comfortable with this structure [82]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited Q1 2022 consolidated financial statements reflect a digital transformation, with total assets decreasing to **$11.2 billion** and a net loss of **$343.7 million** [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements show assets held for disposition decreased to **$151.3 million**, with total revenues growing to **$257.5 million** despite a **$262.3 million** net loss Consolidated Balance Sheet Highlights (Unaudited) | Account | March 31, 2022 ($ thousands) | December 31, 2021 ($ thousands) | | :--- | :--- | :--- | | **Total Assets** | **$11,232,157** | **$14,197,816** | | Cash and cash equivalents | $1,117,688 | $1,602,102 | | Real estate, net | $5,628,072 | $4,972,284 | | Assets held for disposition | $151,307 | $3,676,615 | | **Total Liabilities** | **$6,070,475** | **$8,926,203** | | Debt, net | $5,123,246 | $4,860,402 | | Liabilities related to assets held for disposition | $758 | $3,088,699 | | **Total Stockholders' Equity** | **$1,390,832** | **$2,146,934** | Consolidated Statement of Operations Highlights (Unaudited) | Account | Three Months Ended March 31, 2022 ($ thousands) | Three Months Ended March 31, 2021 ($ thousands) | | :--- | :--- | :--- | | Total Revenues | $257,459 | $220,581 | | Loss from continuing operations | $(236,286) | $(146,339) | | Loss from discontinued operations | $(107,398) | $(481,260) | | **Net Loss** | **$(343,684)** | **$(627,599)** | | Net loss attributable to common stockholders | $(262,316) | $(264,806) | | **Net loss per share—basic** | **$(0.46)** | **$(0.56)** | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail the company's C-Corp transition, digital transformation, and key acquisitions including DataBank, AMP Capital, Telenet, and Wafra's interest redemption - The company discontinued its REIT status and will be taxed as a C-Corporation starting in 2022 to gain flexibility for strategic initiatives. This transition is not expected to cause significant near-term tax expense due to available NOL carryforwards[30](index=30&type=chunk) - The company completed its digital transformation in February 2022 with the disposition of its Wellness Infrastructure business. This, along with prior sales of its hotel and OED businesses, are treated as discontinued operations[31](index=31&type=chunk) - In March 2022, the company's subsidiary, DataBank, acquired four colocation data centers in Houston for **$670 million**, funded by a mix of debt and equity[49](index=49&type=chunk) - The company entered into definitive agreements to acquire AMP Capital's global infrastructure equity investment management business and Telenet Group's mobile telecommunications tower business, with both transactions expected to close in 2022[54](index=54&type=chunk)[55](index=55&type=chunk) - In April 2022, the company agreed to acquire Wafra's 31.5% interest in its Digital Investment Management business for **$390 million** in cash, 57.7 million shares of Class A common stock, and contingent consideration. As redemption was deemed probable, the carrying value of Wafra's interest was adjusted to its fair value of approximately **$1.04 billion**[105](index=105&type=chunk)[108](index=108&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=55&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's digital transformation, C-Corp transition, and segment performance, with revenues up **17%** to **$257.5 million** but a wider loss from a **$133.2 million** non-cash debt exchange [Results of Operations](index=60&type=section&id=Results%20of%20Operations) Total revenues increased **17%** to **$257.5 million**, driven by **44%** growth in Digital Investment Management, but loss from continuing operations widened to **$236.3 million** due to a **$133.2 million** non-cash debt loss Segment Revenue and Income (Loss) from Continuing Operations | (In thousands) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | **Total Revenues** | | | | Digital Investment Management | $44,893 | $31,120 | | Digital Operating | $202,522 | $189,202 | | **Total** | **$257,459** | **$220,581** | | **Income (loss) from continuing operations** | | | | Digital Investment Management | $(9,143) | $7,663 | | Digital Operating | $(74,141) | $(64,260) | | Corporate and Other | $(153,002) | $(89,742) | | **Total** | **$(236,286)** | **$(146,339)** | - The significant increase in 'Corporate and Other' loss was primarily driven by a **$133.2 million** non-cash loss recognized from the early exchange of **$60.3 million** of 5.75% exchangeable notes[214](index=214&type=chunk)[216](index=216&type=chunk) - Digital Investment Management revenue grew **44%** due to a significant increase in Fee Earning Equity Under Management (FEEUM) to **$18.8 billion**, following successful fundraising for DigitalBridge Partners II[213](index=213&type=chunk) [Liquidity and Capital Resources](index=68&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity for upcoming capital commitments, including **$390 million** for Wafra, **$504 million** for Telenet, and **$327 million** for AMP Capital, and expects to reinstate dividends in Q3 2022 - The company has significant upcoming capital commitments, including the redemption of Wafra's interest, and the acquisitions of Telenet's tower assets and AMP Capital's infrastructure platform[247](index=247&type=chunk) - The company monetized its Wellness Infrastructure business in February 2022, receiving **$161 million** in cash and a **$155 million** promissory note[244](index=244&type=chunk)[250](index=250&type=chunk) - The company expects to reinstate its quarterly common stock dividend beginning in the third quarter of 2022, subject to Board approval[249](index=249&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=75&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate, foreign currency, and equity price risks, with a **100 basis point** interest rate increase impacting annualized expense by **$8.3 million** before noncontrolling interests - A hypothetical **100 basis point** increase in interest rates would increase annualized interest expense by **$8.3 million** on a consolidated basis, but only **$1.7 million** after attribution to noncontrolling interests in the Digital Operating segment[276](index=276&type=chunk) - Foreign currency risk is actively managed. The company has entered into foreign exchange forward contracts to mitigate exposure on a **£35 million GBP** investment and a **€458 million EUR** purchase commitment[279](index=279&type=chunk) [Item 4. Controls and Procedures](index=77&type=section&id=Item%204.%20Controls%20and%20Procedures) As of March 31, 2022, disclosure controls and procedures were effective, with no material changes in internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2022[285](index=285&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[286](index=286&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=78&type=section&id=Item%201.%20Legal%20Proceedings) As of March 31, 2022, the company was not involved in any material legal proceedings - The Company was not involved in any material legal proceedings as of March 31, 2022[289](index=289&type=chunk) [Item 1A. Risk Factors](index=78&type=section&id=Item%201A.%20Risk%20Factors) Key risk factors include increased tax obligations and potential NOL limitations from the C-Corp transition, alongside SEC oversight regarding affiliate transactions - A primary new risk is the company's transition to a taxable C-Corporation, which will subject it to U.S. federal and state income tax on its taxable income, potentially reducing net earnings available for investment or distribution[291](index=291&type=chunk) - The ability to use existing capital loss and NOL carryforwards to offset future taxes may be limited by Section 382 of the Code if an "ownership change" (a greater than 50 percentage point change in equity ownership over three years) occurs[292](index=292&type=chunk) - The SEC's Division of Examinations closed an examination of a legacy adviser, CCIA, but noted disagreement with the company's positions on certain alleged deficiencies and did not preclude the Division of Enforcement from taking further action[299](index=299&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=81&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2022, the company issued over **25.5 million shares** of Class A common stock and **$13.9 million** cash in a private exchange for **$60.3 million** of exchangeable notes - In March 2022, the company issued over **25.5 million shares** of Class A common stock as part of a privately negotiated exchange for **$60.3 million** of its 5.75% exchangeable notes[305](index=305&type=chunk) [Item 5. Other Information](index=81&type=section&id=Item%205.%20Other%20Information) The 2022 Annual Meeting results include the election of all director nominees, approval of executive compensation, and ratification of Ernst & Young LLP as auditor - At the 2022 Annual Meeting, stockholders elected all nine director nominees, approved executive compensation on an advisory basis, and ratified the appointment of Ernst & Young LLP as the independent auditor for fiscal year 2022[309](index=309&type=chunk)[313](index=313&type=chunk)[314](index=314&type=chunk)

Financial Data and Key Metrics Changes - Total consolidated revenues for Q1 2022 were $257 million, representing a 17% increase year-over-year [27] - Net income reported a loss of $262 million, primarily due to one-time noncash losses totaling $219 million [28] - Adjusted EBITDA for the quarter was $20 million, up from $13 million in the same period last year [28] - Digital AUM reached $47 billion, a 45% increase from $32 billion year-over-year [29] - Annualized fee revenues increased from $124 million to $235 million, while fee-related earnings (FRE) rose from $70 million to $124 million [33] Business Line Data and Key Metrics Changes - Consolidated core digital revenues were $247 million, a 12% increase from the same period last year, driven by new DBP II fees [31] - Investment management revenues declined compared to the previous quarter due to one-time catch-up fees [31] Market Data and Key Metrics Changes - The company is positioned to capitalize on a $400 billion annual global CapEx spend across the digital infrastructure industry [26] - The company has seen significant growth in its digital business, particularly in the high-margin investment management sector [33] Company Strategy and Development Direction - The company aims to build a full-stack digital infrastructure investor, focusing on high-quality digital businesses and scaling its operating platform [5][26] - The decision to revert to a conventional C-Corp structure was made to gain strategic flexibility and enhance capital deployment opportunities [12][13] - Recent acquisitions, including Wafra and AMP Capital, are expected to significantly increase fee-related earnings and enhance the company's investment management platform [20][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the evolving macroeconomic environment, emphasizing strong liquidity and capital flexibility [50][59] - The company is focused on maintaining high returns on invested capital and is optimistic about future growth opportunities in digital infrastructure [65][67] - Management highlighted the importance of retaining employees and managing labor costs amid rising competition for talent in the digital infrastructure sector [72] Other Important Information - The company plans to initiate a regular quarterly common dividend in Q3 2022, with expectations for material increases over time [30] - The company has approximately $1 billion in current liquidity, which will support ongoing acquisitions and capital structure optimization [34] Q&A Session Summary Question: How should the balance of further M&A between the investment management platform and the operating business be viewed? - Management indicated that capital allocation will prioritize opportunities that generate the best earnings and fastest AFFO, with recent transactions being opportunistic [47][49] Question: How has the view on LTV and net debt-to-EBITDA changed in light of rising interest rates? - Management noted that while access to capital remains strong, the cost of borrowing is increasing, and they have locked down long-term capital at historically low rates [53][56] Question: How does the company manage business priorities in the evolving macroeconomic environment? - Management emphasized the importance of communication with portfolio companies and monitoring key performance indicators, particularly regarding construction costs and labor [69][71]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-37980 | --- | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------ ...

Switch, Inc. (SWCH) Q4 2021 Earnings Conference Call February 24, 2022 5:00 PM ET Company Participants Matthew Heinz - VP, IR Thomas Morton - President Gabe Nacht - CFO Conference Call Participants Erik Rasmussen - Stifel Michael Rollins - Citigroup Brendan Lynch - Barclays Brett Feldman - Goldman Sachs Nate Crossett - Berenberg Frank Louthan - Raymond James Sami Badri - Credit Suisse Eric Luebchow - Wells Fargo Ari Klein - BMO Capital Markets Richard Choe - JPMorgan James Breen - William Blair Operator Hel ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents DigitalBridge Group's unaudited consolidated financial statements, including balance sheets, statements of operations, and cash flows, detailing the digital transformation and asset dispositions [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to **$15.4 billion** from **$20.2 billion** due to reclassification and sale of non-digital assets, with liabilities also decreasing Consolidated Balance Sheet Summary (Unaudited) | Metric | September 30, 2021 (in thousands) | December 31, 2020 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$15,442,981** | **$20,200,560** | | Assets held for disposition | $5,470,027 | $11,237,319 | | **Total Liabilities** | **$9,406,541** | **$12,910,692** | | Liabilities related to assets held for disposition | $3,831,563 | $7,886,516 | | **Total Stockholders' Equity** | **$2,055,857** | **$2,501,471** | | **Total Equity** | **$5,688,270** | **$6,984,590** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Total revenues more than doubled to **$252.2 million** in Q3 2021, while net loss attributable to common stockholders significantly narrowed to **$(365.0) million** for the nine months Statement of Operations Highlights (Unaudited) | Metric (in thousands) | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$252,174** | **$123,017** | **$709,942** | **$261,040** | | Loss from continuing operations | $(40,935) | $(52,649) | $(183,451) | $(524,116) | | Loss from discontinued operations | $(10,429) | $(308,581) | $(590,595) | $(2,960,164) | | **Net Loss** | **$(51,364)** | **$(361,230)** | **$(774,046)** | **$(3,484,280)** | | Net income (loss) attributable to common stockholders | $41,036 | $(205,784) | $(365,030) | $(2,610,208) | | **Net income (loss) per share—basic** | **$0.08** | **$(0.44)** | **$(0.76)** | **$(5.51)** | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities increased to **$181.4 million**, while investing activities provided **$85.7 million**, a reversal from prior year's cash use Cash Flow Summary (Unaudited) | Activity (in thousands) | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $181,412 | $89,886 | | Net cash provided by (used in) investing activities | $85,698 | $(981,923) | | Net cash provided by financing activities | $198,221 | $363,225 | [Notes to Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, business transformation to digital infrastructure, significant acquisitions, reclassification of non-digital assets, debt, equity, and segment reporting changes - The company changed its name to DigitalBridge Group, Inc. (DBRG) on June 22, 2021, to reflect its transformation into a firm focused on digital infrastructure[36](index=36&type=chunk) - As of September 30, 2021, the company has **$49 billion** of total assets under management (AUM), with **$38 billion** dedicated to digital real estate and infrastructure[36](index=36&type=chunk) - The company's hotel business, Wellness Infrastructure segment, and a majority of its Other Equity and Debt (OED) investments and Other Investment Management (Other IM) business have been classified as discontinued operations due to a strategic shift[38](index=38&type=chunk)[58](index=58&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=58&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's digital transformation, asset monetization, segment growth, AUM changes, and liquidity, highlighting a new securitized financing facility and deleveraging efforts - The company is in the final stages of its digital transformation, with pending sales of its Wellness Infrastructure business for **$281 million** and a majority of its OED and Other IM business for approximately **$535 million**[232](index=232&type=chunk)[235](index=235&type=chunk) - In July 2021, the company replaced its corporate credit facility with a new **$500 million** securitized financing facility, providing longer-duration financing at a lower cost of capital and with greater flexibility[243](index=243&type=chunk)[299](index=299&type=chunk) Assets Under Management (AUM) Shift to Digital (in billions) | Category | Sep 30, 2021 (in billions) | Dec 31, 2020 (in billions) | | :--- | :--- | :--- | | **Total Digital AUM** | **$37.8** | **$30.0** | | Total Non-Digital AUM | $11.6 | $22.0 | | **Total Company AUM** | **$49.4** | **$52.0** | Fee Earning Equity Under Management (FEEUM) (in billions) | Category | Sep 30, 2021 (in billions) | Dec 31, 2020 (in billions) | | :--- | :--- | :--- | | **Total Digital FEEUM** | **$16.5** | **$12.8** | | Total Non-Digital FEEUM | $4.4 | $7.2 | | **Total Company FEEUM** | **$20.9** | **$20.0** | [Quantitative and Qualitative Disclosures About Market Risk](index=79&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines the company's exposure to various market risks, including credit, interest rate, and foreign currency risks, and details hedging strategies and sensitivity analysis - The company is exposed to credit risk from tenants/operators of its properties and from its portfolio of loans receivable[331](index=331&type=chunk) - Interest rate risk is managed through hedging instruments like interest rate caps, and foreign currency risk (EUR and GBP) is managed with currency hedges, expected to decrease with OED portfolio monetization[334](index=334&type=chunk)[336](index=336&type=chunk) Interest Rate Sensitivity Analysis (Annual Impact) | Change in Index Rate | Increase/(Decrease) in Interest Expense (in thousands) | | :--- | :--- | | +2.00% | $42,122 | | +1.00% | $21,351 | | Max Decrease | $(1,585) | [Controls and Procedures](index=81&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2021, with no material changes to internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of September 30, 2021[340](index=340&type=chunk) - No material changes were made to the internal control over financial reporting during the quarter ended September 30, 2021[341](index=341&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=82&type=section&id=Item%201.%20Legal%20Proceedings) As of September 30, 2021, the company was not involved in any material legal proceedings - The Company was not involved in any material legal proceedings as of the end of the reporting period[345](index=345&type=chunk) [Risk Factors](index=82&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the 'Risk Factors' section in the company's Annual Report on Form 10-K for the year ended December 31, 2020 - The report directs readers to the Risk Factors section of the Annual Report on Form 10-K for the year ended December 31, 2020[346](index=346&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=82&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q3 2021, the company issued **500,000** shares of class A common stock to a former employee to satisfy an OP Units redemption request - In Q3 2021, the company issued **500,000** shares of class A common stock to a former employee in exchange for OP Units[347](index=347&type=chunk) [Defaults Upon Senior Securities](index=82&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported by the company - The company reported no defaults upon senior securities[348](index=348&type=chunk) [Mine Safety Disclosures](index=82&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - This item is not applicable to the company[350](index=350&type=chunk) [Other Information](index=82&type=section&id=Item%205.%20Other%20Information) No other information was reported for this item - The company reported no other information for this item[351](index=351&type=chunk) [Exhibits](index=82&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, debt agreements, and officer certifications

Financial Data and Key Metrics Changes - Third quarter revenue was $158.1 million, increasing 23% year-over-year, with organic growth of 13.5% when excluding Data Foundry's $12 million contribution [9][30] - Adjusted EBITDA for Q3 increased 14.5% year-over-year to $76.9 million, with a margin of 48.6% affected by seasonal power costs and Data Foundry's full quarter contribution [10][30] - Net loss for Q3 was $0.9 million compared to net income of $13.2 million in Q3 2020, primarily due to a reduction in income from operations and an increase in interest expense [32][45] - Customer churn remained at 0.2%, unchanged from the previous year [32] Business Line Data and Key Metrics Changes - Total colocation revenue for Q3 was $125.9 million, up 20% year-over-year, while excluding Data Foundry, it grew 12% to $117.7 million [37] - Connectivity revenue increased 31% year-over-year to $29.3 million, with organic growth of 18% when excluding Data Foundry [38] - Incremental annualized revenue bookings increased 25% year-over-year to $50 million, with total annualized revenue signings up 28% to $88 million [11] Market Data and Key Metrics Changes - As of Q3 2021, multicampus customers accounted for over 38% of legacy switch revenue, up from 33% in the prior year, representing a 26% growth rate [12] - Texas customers contributed approximately $5 million of incremental annualized revenue signings in Q3 [13] Company Strategy and Development Direction - The company is pursuing a REIT conversion targeted for January 1, 2023, to maximize shareholder value [8][58] - Expansion of PRIME footprint across the U.S. is a strategic focus, with significant growth in Texas and multi-campus customer revenue [12][15] - The company is committed to sustainable technology infrastructure, as evidenced by the regional water improvement pipeline project and recognition from the EPA for green power usage [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for digital transformation and hybrid multi-cloud architectures, with strong demand for data center capacity [56] - The company anticipates continued growth, projecting 17% organic growth for Q4 2021 [51][96] Other Important Information - The company has a robust project pipeline with over 3 million square feet of data center capacity planned through 2026 [24] - Adjusted funds from operations (AFFO) decreased 9% year-over-year to $51.1 million [46] - Total debt outstanding as of September 30, 2021, was $1.5 billion, with a net debt to last quarter annualized adjusted EBITDA ratio of 5.0x [47] Q&A Session Summary Question: REIT conversion strategy - Management believes that converting to a REIT will maximize shareholder value and has consulted with external advisers to ensure it will not negatively impact operations [58] Question: Supply position and leasing capabilities - Existing inventory is available for leasing, and Las Vegas 15 is expected to come online in the first half of 2022, providing additional capacity [60][61] Question: Data Foundry acquisition update - The acquisition is performing well, with synergies exceeding expectations and a significant sale completed post-acquisition [63][65] Question: Go-to-market strategy with new Chief Revenue Officer - The new Chief Revenue Officer is expected to enhance the sales force and expand the national footprint, contributing to continued growth [67][68] Question: Power cost management - The company has historically managed power costs effectively, with recent increases being addressed through customer adjustments and long-term power purchase agreements [75] Question: Customer renewals and pricing - Renewals at Data Foundry are progressing well, with no rate reductions, indicating strong customer retention [77] Question: Supply chain impacts - The company has not experienced significant supply chain delays, maintaining timely delivery of equipment and customer deployments [81][82] Question: Customer interest across multiple data centers - 38% of revenue comes from multicampus customers, indicating a growing trend in customer engagement across multiple locations [85]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-37980 | --- | --- | --- | |-------------------------------------------------------------------------------------------------------------------------------- ...

Switch, Inc. (SWCH) Q2 2021 Earnings Conference Call August 5, 2021 5:00 PM ET Company Participants Matthew Heinz - VP of IR Thomas Morton - President Gabe Nacht - CFO Conference Call Participants George Engroff - Credit Suisse Ari Klein - BMO Capital Markets Erik Rasmussen - Stifel Colby Synesael - Cowen Brendan Lynch - Barclays Frank Louthan - Raymond James Jon Petersen - Jefferies Eric Luebchow - Wells Fargo Richard Choe - JPMorgan Operator Good afternoon, ladies and gentleman, thank you for attending th ...

Switch, Inc. (SWCH) Q1 2021 Earnings Conference Call May 10, 2021 5:00 PM ET Company Participants Matthew Heinz - Vice President of Investor Relations Thomas Morton - President Gabe Nacht - Chief Financial Officer Conference Call Participants Sami Badri - Credit Suisse Erik Rasmussen - Stifel Aryeh Klein - BMO Capital Markets Richard Choe - JPMorgan Colby Synesael - Cowen Nate Crossett - Berenberg Eric Luebchow - Wells Fargo Tim Long - Barclays Brett Feldman - Goldman Sachs Operator Good day and welcome to ...