Equinix Misses EPS Mark, Revenue Rises

Core Insights - Equinix reported steady growth in Q4 2024, with a revenue of $2.26 billion, reflecting a 7.1% year-over-year increase despite a minor shortfall from projections [2][6] - The company forecasts continued growth for 2025, estimating a revenue increase of 3% to 4% on a reported basis, or 7% to 8% when adjusted for currency effects [9] Financial Performance - Q4 2024 EPS was a loss of$ 0.14 per share, significantly below the estimate of $2.67, marking a 105% decline year-over-year [3] - Adjusted EBITDA margin improved to 45%, up from 44% in the same period last year, indicating enhanced operational efficiency [2][3] - AFFO per share increased by 8.5% to$ 7.92, demonstrating solid cash flow generation [3][7] Business Overview - Equinix operates 268 data centers globally, focusing on expanding its footprint and enhancing interconnection services [4] - The company is prioritizing strategic expansions and innovations, particularly in AI-driven workloads and advanced interconnection services [5] Quarterly Highlights - Interconnection services revenue grew by 9%, supporting the trend towards enhanced digital interconnectivity [6] - Total revenue for the year reached $8.748 billion, reflecting steady demand despite a slight revenue miss compared to guidance [6] Strategic Initiatives - Equinix is undertaking 62 major projects globally, including 16 xScale developments aimed at enhancing AI and hyperscale offerings [8] - The company continues to declare consistent dividends, maintaining its trend of shareholder returns [8] Future Outlook - Management plans to improve adjusted EBITDA margins by 190 basis points in 2025, with a focus on AI-related infrastructure and sustainability programs [9]