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Iron Mountain Incorporated (IRM) J.P. Morgan Ultimate Services Investor Conference (Transcript)
IRMIron Mountain(IRM)2023-11-16 16:48

Key Points Company and Industry * Company: Iron Mountain Incorporated (NYSE:IRM) * Industry: Information Management, Data Center, IT Asset Disposition Core Views and Arguments * Cross-Selling Success: Iron Mountain has a large installed client base and has been investing in new products and services to facilitate cross-selling. The company measures success through Project Matterhorn, which tracks cross-selling efforts week-to-week. * Project Matterhorn: A 150millionannualinvestmentaimedattransformingtheoperatingmodeltofocusoncommercialgrowth,includingaglobalcommercialoperation,globaloperationsfunction,andbusinessunits.∗∗∗NetPromoterScore(NPS)∗∗:NPSisanimportantmetric,butcustomersatisfactionandretentionarekeydriversofcross−sellingsuccess.NPSisconsideredalaggingindicator.∗∗∗PricingStrategy∗∗:IronMountainhasbeenimplementingrevenuemanagementstrategiestocapturethevalueitprovidestoclients.Thecompanyaimstomaintainabalancebetweenpricingandcross−sellingopportunities.∗∗∗ClutterAcquisition∗∗:TheacquisitionofClutter,aB2Cconsumerconciergestoragebusiness,providessynergieswithIronMountain′sexistingbusinessandexpandsitsmarketreach.∗∗∗DataCenterCapEx∗∗:IronMountainhasguidedto150 million annual investment aimed at transforming the operating model to focus on commercial growth, including a global commercial operation, global operations function, and business units. * **Net Promoter Score (NPS)**: NPS is an important metric, but customer satisfaction and retention are key drivers of cross-selling success. NPS is considered a lagging indicator. * **Pricing Strategy**: Iron Mountain has been implementing revenue management strategies to capture the value it provides to clients. The company aims to maintain a balance between pricing and cross-selling opportunities. * **Clutter Acquisition**: The acquisition of Clutter, a B2C consumer concierge storage business, provides synergies with Iron Mountain's existing business and expands its market reach. * **Data Center CapEx**: Iron Mountain has guided to 1.3 billion in CapEx this year, primarily driven by data center investments. The company expects to continue building out its data center platform based on demand and pre-leasing activity. * Asset Lifecycle Management (ALM): Iron Mountain's ALM business is growing, driven by organic growth, OEM relationships, and hyperscale decommissioning opportunities. The company aims to achieve $900 million in ALM revenues by 2026. Other Important Content * Record Management: Iron Mountain's global records and information management (RIM) business is the largest segment and is expected to grow at a mid-single-digit rate. * Conversion of Facilities: Iron Mountain is evaluating the conversion of some of its record management facilities to data centers, particularly in areas with limited data center capacity. * Component Pricing: Component pricing for data center equipment is expected to increase by 50% to 75% in 2024 compared to 2023, benefiting Iron Mountain's ALM business.