Iron Mountain Incorporated (IRM) J.P. Morgan Ultimate Services Investor Conference (Transcript)

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 $150 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.