Equinix(US:EQIX)2025-10-29 22:30Financial Data and Key Metrics Changes - Equinix reported global Q3 revenues of approximately $2.32 billion, representing a 5% increase year-over-year [18] - Monthly Recurring Revenue (MRR) growth was 8% year-over-year on a normalized and constant currency basis [4] - Adjusted EBITDA for Q3 was $1.15 billion, approximately 50% of revenues, up 8% year-over-year [19] - Adjusted Funds From Operations (AFFO) was $965 million, up 12% year-over-year, exceeding expectations [19] Business Line Data and Key Metrics Changes - Interconnection revenue grew 8% year-over-year to $422 million, driven by a 57% increase in Equinix Fabric bookings [10] - The company closed over 4,400 deals with more than 3,400 customers in Q3, indicating strong demand across various sectors [6] - Annualized gross bookings reached a record $394 million, a 25% increase year-over-year [4] Market Data and Key Metrics Changes - The Americas region showed significant strength, contributing to the overall revenue growth, while EMEA experienced some one-off impacts affecting margins [73] - The company opened its 77th market in Chennai, India, and added eight major projects across seven markets [12][21] Company Strategy and Development Direction - Equinix aims to double its capacity by 2029, supported by recent land acquisitions in key metros [5][52] - The strategy includes three key moves: Serve Better, Solve Smarter, and Build Bolder, focusing on customer value, simplifying solutions, and expanding capacity [8][10] - The company is actively pursuing land acquisitions to support over 900 megawatts of capacity, enhancing its ability to meet customer demand [12][52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing strong demand and a robust pipeline for Q4 and beyond [25] - The company is focused on maintaining profitability while expanding capacity to meet increasing market demands [16] - Management highlighted the importance of capital allocation and maintaining a strong balance sheet to support growth initiatives [16][47] Other Important Information - Equinix's cash and short-term investments totaled $2.9 billion, with net leverage at 3.6 times annualized adjusted EBITDA [20] - The company has issued approximately $9.5 billion in green bonds, with $7 billion allocated to eligible green projects [20] Q&A Session Summary Question: How strategic are the new cloud on-ramps and what is being done to attract AI magnets? - Management emphasized their market-leading position in native cloud on-ramps and the importance of attracting AI companies through strong customer relationships [28][30] Question: Is the strength in pre-sales activity due to changes in the sales approach? - Management confirmed that the new pre-sales strategy has contributed to increased bookings, with significant activity in high-demand markets [37][38] Question: What is the current pricing environment and expectations for 2026? - Management indicated firm pricing and confidence in demand, with a focus on revenue execution and cost management [44][50] Question: Can you provide details on the land acquisitions and their intended use? - Management stated that significant portions of the new land acquisitions in London and Chicago will be earmarked for xScale business, with flexibility in capacity allocation [52][53] Question: What is the confidence level regarding power availability for xScale projects? - Management assured that all current xScale projects have secured power, highlighting their strong relationships with utility providers [79]