- Equinix managed to exceed $7 billion in revenue with the 80th consecutive quarter of revenue growth.
- According to the announcement, the company’s 2022 annual revenues increased 9% year-over-year on an as-reported basis.
- There are 49 major projects currently underway across 35 metros and 23 countries representing its largest new-build pipeline.
Global digital infrastructure company, Equinix announced financial results for the quarter and full year that ended December 31, 2022. At the end of the year, the company managed to increase its 2022 annual revenues by 9% year-over-year on an as-reported basis. With the latest results, the company delivered the seventh consecutive quarter of record channel bookings.
245 data centers in 32 countries
According to the announcement, Equinix closed more than 17,000 deals with more than 6,000 customers in 2022. The company also increased its quarterly cash dividend by 10% to $3.41 per share on its common stock. Equinix also announced its expectations for the first quarter of 2023 and the full fiscal year. According to the report, some of the financial highlights are:
- Revenues
- $7.263 billion, a 9% increase over the previous year on an as-reported basis or 11% on a normalized and constant currency basis
- Operating Income
- $1.201 billion, an 8% increase over the previous year, and an operating margin of 17%, largely due to strong operating performance offset in part by increased investments to support the expanded scale and reach of the business
- Net Income and Net Income per Share attributable to Equinix
- $705 million, a 41% increase over the previous year, primarily due to operating performance strength and loss on debt extinguishment in 2021; partially offset by higher income taxes
- $7.67 per share, a 39% increase over the previous year
- Adjusted EBITDA
- $3.370 billion, a 46% adjusted EBITDA margin
- Includes $20 million of integration costs
- AFFO and AFFO per Share
- $2.714 billion, an 11% increase over the previous year on both an as-reported and normalized and constant currency basis
- $29.55 per share, a 9% increase over the previous year or a normalized and constant currency increase of 11%
- Includes $20 million of integration costs
2023 annual guidance summary
- Revenues
- $8.145 – $8.245 billion, a 12 – 14% increase over the previous year or a normalized and constant currency increase of 14 – 15%
- Adjusted EBITDA
- $3.615 – $3.695 billion, a 45% adjusted EBITDA margin after taking into consideration power price increases to revenues and corresponding power cost increases
- Assumes $35 million of integration costs
- AFFO and AFFO per Share
- $2.883 – $2.963 billion, an increase of 6 – 9% over the previous year or a normalized and constant currency increase of 9 – 12%
- $30.79 – $31.64 per share, an increase of 4 – 7% over the previous year or a normalized and constant currency increase of 8 – 10%. This guidance excludes any capital market activities the company may undertake in the future
- Assumes $35 million of integration costs
In 2022, the company invested in expanding its global platform which includes 245 data centers across 71 metros in 32 countries. Equinix pinpoints that 49 major projects currently underway across 35 metros and 23 countries represent the largest new-build pipeline in company history. During the fourth quarter, Equinix also announced its first builds in Johannesburg, South Africa, and Johor, Malaysia. Charles Meyers, CEO and President of Equinix said,
« With IDC forecasting digital technology spend to grow eight times faster than the broader economy in 2023, today’s businesses are seeking the right infrastructure partner to support their specific digital transformation needs, especially in the current environment where operational efficiency and the need to create lasting business differentiation are strategic drivers. Our customers are validating the increasing demand for comprehensive solutions that offer ‘the right cloud for them’ with flexibility to place their workloads across multiple public clouds, private clouds and on-prem, and they are finding Equinix’s global platform and interconnected ecosystems a unique environment to architect this customizable infrastructure. »