Switch announced financial results for the quarter ended March 31, 2021. Total revenue of $130.9 million, compared to $128.1 million for the same quarter in 2020, an increase of 2%. Revenue growth was negatively impacted by 330 basis points due to a $4.0 million decrease in non-recurring fiber revenue, compared to the year-ago quarter.
Total revenue increased by 2%
Net income of $24.4 million, compared to a net loss of $3.5 million for the same quarter in 2020. Net income in the first quarter of 2021 includes a $5.4 million gain from the sale of their ownership interest in the international joint venture that held an equity interest in the SUPERNAP Italia data center, a $3.2 million gain on interest rate swaps, and a $2.8 million non-recurring license fee allowing their technology and patents to be used for data centers in the Kingdom of Saudi Arabia.
Rob Roy, Founder and CEO of Switch, said,
“The recently announced agreement to acquire Data Foundry and launch of our Fifth Prime Campus in Texas will help to address near-term supply constraints while expanding our addressable market longer term, along with the strategic benefits of broadening Switch’s Fortune 500 customer base and geographic reach.”
Other highlights of financial results:
- Income from operations of $24.2 million, an increase of 15% compared to $21.0 million for the year-ago quarter.
- Net income per diluted share in the first quarter of 2021 was $0.09 and adjusted net income per diluted share was $0.08.
- Adjusted EBITDA of $73.4 million, compared to $61.5 million for the same quarter in 2020, an increase of 19%. The adjusted EBITDA margin was 56.1%, compared to 48.0% in the year-ago period. Adjusted EBITDA benefitted from $2.8 million in non-recurring license fee income, which increased the Adjusted EBITDA margin by 210 basis points.
- Capital expenditures of $100.4 million, compared to $80.9 million for the same quarter in 2020. Maintenance capital expenditures were $2.1 million, or 1.6% of total revenue.
- The signed total contract value of $117 million, representing annualized revenue of $37 million at full deployment, including $18 million of incremental recurring revenue.