REDWOOD CITY, Calif., Aug. 26, 2025 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company®, has been recognized as a Leader in the IDC MarketScape: Worldwide Datacenter Colocation Services 2025 Vendor Assessment (doc. #US52983725, August 2025) for its comprehensive product portfolio, strategy, and keen focus on innovation and continuous evolution to anticipate and meet the future requirements of its customer base. The IDC MarketScape assessment evaluates vendors offering c ...

Financial Data and Key Metrics Changes - In Q2, the company reported revenues of $2,260 million, a 5% increase year-over-year, driven by strong recurring revenue growth of 7% [15][33] - Adjusted EBITDA margins reached 50% for the first time in history, with adjusted EBITDA of approximately $1,130 million [16][33] - AFFO per share increased by 8% year-over-year, totaling $972 million, which was well above expectations [16][34] Business Line Data and Key Metrics Changes - The company closed 4,100 deals across more than 3,300 customers, resulting in $345 million of annualized gross bookings for the quarter [7][15] - Interconnection revenues grew by 8% year-over-year, surpassing $400 million in quarterly revenues for the first time, with a net addition of 6,200 total interconnections [21][22] Market Data and Key Metrics Changes - The Americas region led in cabinet billing, contributing to solid monthly recurring revenue (MRR) per cabinet yields [8][35] - The company added nine new retail projects in key markets, including Chicago, Dallas, London, and Silicon Valley, and commenced its first build in Bangkok, Thailand [24] Company Strategy and Development Direction - The company outlined a long-term vision focusing on AI, hybrid and multi-cloud, and networking opportunities, with significant capital expenditures aimed at capacity expansion [9][10] - The "Build Bolder" strategy emphasizes creating new capacity to meet future demands for digital infrastructure, with a focus on major markets generating over $100 million in annual revenue [12][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting strong customer demand signals and the need for digital infrastructure to support AI and cloud strategies [10][14] - The company anticipates an accelerated path to stabilization for new assets compared to historical trends, aiming for double-digit revenue growth as the strategy becomes fully operational [12][60] Other Important Information - The company raised its 2025 revenue guidance by $58 million, maintaining a growth rate of 7% to 8% [39] - Capital expenditures for 2025 are expected to range between $3.8 billion and $4.3 billion, including approximately $450 million of on-balance sheet XScale spend [40] Q&A Session Summary Question: What helped the interconnection adds this quarter and expectations for the coming quarters? - Management noted strong interconnection performance with revenues up 8% year-on-year, driven by cloud and AI expansion opportunities [44][45] Question: What is driving the strong bookings momentum to start Q3? - Management highlighted broad-based activities across regions and segments, with strong pricing and intra-regional transactions contributing to the momentum [48][51] Question: Can you provide an update on the timing to stabilization in the Build Bolder plan? - Management indicated that the typical build profile is 18 to 24 months, but they expect to accelerate stabilization due to larger enterprise customer footprints and potential pre-sales [56][58] Question: What is the outlook for XScale leasing in the back half of the year? - Management confirmed that 85% of XScale facilities are leased or pre-leased, with a strong pipeline supporting a step-up in net recurring revenue in the second half [92]

Financial Data and Key Metrics Changes - In Q2 2025, the company reported revenues of $2,260 million, a 5% increase year-over-year, driven by strong recurring revenue growth of 7% [15][32] - Adjusted EBITDA margins reached 50% for the first time in history, with adjusted EBITDA of approximately $1,130 million [16][32] - AFFO per share increased by 8% year-over-year, totaling $972 million, exceeding expectations due to strong operating performance and lower income tax expenses [16][33] Business Line Data and Key Metrics Changes - The company closed 4,100 deals across more than 3,300 customers, resulting in $345 million of annualized gross bookings for the quarter [6][27] - Interconnection revenues grew by 8% year-over-year, surpassing $400 million in quarterly revenues for the first time, with a net addition of 6,200 total interconnections [22][23] - The Americas region led cabinet billing, contributing to solid MRR per cabinet yields [7][34] Market Data and Key Metrics Changes - The company noted a notable uptick in inter and intra-region sales, particularly in cloud and AI expansion activities [6][22] - The demand for digital infrastructure is being driven by trends in AI, hybrid, and multi-cloud strategies, with significant customer reliance on Equinix for these needs [10][14] Company Strategy and Development Direction - The company outlined its "Build Bolder" strategy focused on capital expenditure for capacity expansion, aiming to accelerate revenue growth [10][12] - Investments will primarily target major markets generating over $100 million in annual revenue, leveraging established customer relationships [12] - The company anticipates a path to double-digit revenue growth as the "Build Bolder" strategy becomes fully operational [12][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong customer momentum and a robust pipeline for Q3 and Q4 [20][21] - The company expects to see a meaningful step-up in non-recurring revenues in the second half of the year, particularly in Q4 [16][38] - Management emphasized the importance of addressing customer demand signals, particularly in AI and cloud connectivity [70][72] Other Important Information - The company has 59 major projects underway globally, including 12 XScale projects, and has expanded its footprint in Southeast Asia with the acquisition of three data centers in the Philippines [24][25] - The balance sheet increased to approximately $39 billion, with elevated cash and short-term investments totaling around $4.5 billion [34][35] Q&A Session Summary Question: What helped the interconnection adds this quarter and expectations for future metrics? - Management noted strong interconnection performance with revenues up 8% year-on-year, driven by cloud and AI expansion opportunities [44][45] Question: What is driving strong bookings momentum to start Q3? - Management highlighted broad-based activities across regions and segments, with strong pricing and intra-regional pickups contributing to the momentum [48][50] Question: Can you provide an update on the timing to stabilization in the Build Bolder plan? - Management indicated that the typical build profile is 18 to 24 months, but they expect to accelerate stabilization through fewer build phases and increased enterprise customer demand [57][59] Question: What is the outlook for ExScale leasing in the back half of the year? - Management confirmed a strong track record in ExScale, with 85% of facilities leased or pre-leased, and a robust pipeline supporting step-up in NRR [94][96]

Financial Data and Key Metrics Changes - In Q1 2025, Equinix reported revenues of $2.2 billion, an 8% year-over-year increase, excluding the impact of Power Pass Through [8][24] - Adjusted EBITDA margins increased to 48% of revenues, and AFFO per share rose by 9% year-over-year, both exceeding expectations due to strong operating performance and lower utility costs [10][25] - Global Q1 AFFO was $947 million, up 13% year-over-year, significantly above expectations [25] Business Line Data and Key Metrics Changes - Strong recurring revenue growth was noted, driven by the impact of bookings from the second half of 2024 [8] - Interconnection revenues grew by 9% year-over-year, with over 486,000 total interconnections deployed [17] - The Secure Cabinet Express product saw a nearly 300% increase year-over-year, accounting for one-third of all new cabinet sales in Q1 [16] Market Data and Key Metrics Changes - Recurring revenues grew fastest in the APAC region at 8%, followed by The Americas and EMEA regions at 7% [28] - The Americas region delivered its best gross and net bookings performance to date, with strong demand from financial services and AI-oriented customers [28] - EMEA experienced solid gross booking performance but was impacted by anticipated churn [28] Company Strategy and Development Direction - Equinix is focusing on three strategic moves: serving customers better, solving smarter, and building bolder [15] - The company is shifting its strategy to build fewer, larger IBXs, with 56 major projects underway across 33 metros in 24 countries [18] - The company is closely monitoring the macroeconomic environment while maintaining confidence in the demand for digital infrastructure [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for digital infrastructure persisting through varying business cycles and economic policies [21] - The company is committed to delivering value to customers and stakeholders, focusing on innovation and operational excellence [37] - Management noted that customer demand remains strong, with no significant shifts observed in April [44] Other Important Information - The company raised its guidance for revenues, adjusted EBITDA, and AFFO for 2025 based on strong Q1 performance [34] - Capital expenditures for 2025 are expected to range between $3.4 billion and $3.7 billion, reflecting newly approved projects and higher FX rates [35] Q&A Session Summary Question: What is driving the improvements in sales cycles? - Management noted that strong Q1 performance and improved deal conversion contributed to shorter sales cycles, with no significant shifts in demand observed in April [44][46] Question: What are the expectations for recurring revenue growth in the second half of the year? - Management indicated that strong bookings momentum from Q1 and Q2 will support recurring revenue growth in the second half of 2025, despite challenges in EMEA due to churn [55][56] Question: Can you provide an update on the U.S. XScale joint venture? - Management confirmed a strong pipeline for XScale opportunities, with ongoing projects and a positive demand profile despite some challenges in the market [66][68]

Financial Data and Key Metrics Changes - In Q1, the company reported revenues of $2.2 billion, an 8% year-over-year increase, excluding the impact of Power Pass Through [9][26] - Adjusted EBITDA margins increased to 48% of revenues, and AFFO per share rose by 9% year-over-year, both exceeding expectations due to strong operating performance and lower utility costs [10][27] - Global Q1 AFFO was $947 million, up 13% year-over-year, well above expectations [27] Business Line Data and Key Metrics Changes - The company experienced strong recurring revenue growth, driven by bookings from the second half of 2024, although this was partially offset by lower ex-scale leasing and fit-out fees [9][10] - Interconnection revenues grew by 9% year-over-year, with over 486,000 total interconnections deployed [18] - The Secure Cabinet Express product saw a nearly 300% increase year-over-year, accounting for one-third of all new cabinet sales in Q1 [17] Market Data and Key Metrics Changes - Recurring revenues grew fastest in the APAC region at 8%, followed by The Americas and EMEA regions at 7% [30] - The Americas region delivered its best gross and net bookings performance to date, with strong demand from financial services and AI-oriented customers [30] - EMEA faced challenges due to anticipated churn and an unanticipated bankruptcy, impacting cabinet billing [58] Company Strategy and Development Direction - The company is focusing on three strategic moves: serving customers better, solving smarter, and building bolder [15] - The strategy includes building fewer but larger IBXs, with 56 major projects underway across 33 metros in 24 countries [19] - The company is closely monitoring the macroeconomic environment while maintaining confidence in the demand for digital infrastructure [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for digital infrastructure persisting through varying business cycles, despite economic uncertainties [22] - The company is committed to delivering value to customers and stakeholders, focusing on innovation and operational excellence [40] - Management noted that customer demand remains strong, with no significant shifts observed in April [46] Other Important Information - The company welcomed Harmine Mehta as the new Chief Digital and Innovation Officer, expected to enhance customer service and operational efficiency [8] - The company raised its guidance for revenues, adjusted EBITDA, and AFFO for 2025 based on strong Q1 performance [36][37] Q&A Session Summary Question: What is driving the improvements in sales cycles? - Management noted that strong Q1 performance and a healthy pipeline contributed to reduced deal cycle times, with median cycle times for small deals reduced by over 20% [49][50] Question: What are the expectations for recurring revenue growth in the second half of the year? - Management indicated that strong bookings momentum from Q1 and Q2 would support a step-up in recurring revenue in the second half of the year [56][57] Question: Can you provide an update on the U.S. XScale joint venture? - Management confirmed a strong pipeline for XScale opportunities and ongoing progress in the Hampton location, with demand remaining robust [68][71] Question: How does the company view pricing and supply constraints? - Management stated that firm pricing was observed in Q1, with opportunities to command premium pricing due to supply dynamics [98]