Equinix's (EQIX) Q2 AFFO Beat on Solid Demand, Revenues Rise

Core Insights - Equinix Inc. reported a strong second-quarter 2024 performance with adjusted funds from operations (AFFO) per share of $9.22, exceeding the Zacks Consensus Estimate of $8.82 and reflecting a 14.7% year-over-year increase [1] - The company experienced steady growth in colocation and interconnection revenues, driven by robust demand for digital infrastructure, with total interconnections reaching 472,300, a 4% increase year over year [1] Financial Performance - Total quarterly revenues were $2.16 billion, aligning with the Zacks Consensus Estimate and representing a 6.9% year-over-year increase [2] - Recurring revenues amounted to $2.02 billion, up 5.5% from the previous year, while non-recurring revenues surged 33.7% to $135 million [3] - Revenues from the Americas, EMEA, and Asia Pacific increased by 8.5%, 4.9%, and 6.8% to $966 million, $721 million, and $472 million, respectively [3] - Adjusted EBITDA reached $1.04 billion, a 15% increase year over year, with an adjusted EBITDA margin of 48% [4] - AFFO rose 16.3% to $877 million compared to the same period last year [4] Capital Expenditures and Liquidity - The company spent $45 million on recurring capital expenditures, a 12.5% increase year over year, representing 2.1% of revenues [4] - Equinix had $6.4 billion in available liquidity as of June 30, 2024, including cash, cash equivalents, and undrawn revolver [5] Dividend and Guidance - Equinix's board declared a quarterly cash dividend of $4.26 per share, payable on September 18, 2024 [6] - For Q3 2024, the company projects revenues between $2.190 billion and $2.210 billion, indicating a 1-2% increase over the prior quarter, with adjusted EBITDA expected in the range of $1.029-$1.049 billion [7] - For the full year 2024, total revenues are estimated at $8.692-$8.772 billion, reflecting a year-over-year growth of 6-7% [8]