logo     Print Page | Close Window

SEC Filings

10-Q
EQUINIX INC filed this Form 10-Q on 11/02/2018
Entire Document
 

EMEA Revenues. Revenues for our EMEA region for the three months ended September 30, 2018 included approximately $16.4 million of incremental revenues attributable to the Itconic and Zenium data center acquisitions, which closed in October 2017. Our revenues from the UK, the largest revenue contributor in the EMEA region for the period, represented approximately 30% and 32%, respectively, of the regional revenues during the three months ended September 30, 2018 and 2017. Excluding revenues attributable to the Itconic and Zenium acquisitions, our EMEA revenue growth was primarily due to (i) approximately $21.4 million of revenues from our recently-opened IBX data centers or IBX data center expansions in the Amsterdam, Dubai, Frankfurt, London and Paris metro areas and (ii) an increase in orders from both our existing customers and new customers during the period. During the three months ended September 30, 2018, foreign currency fluctuations resulted in approximately $4.7 million of unfavorable foreign currency impact to our EMEA revenues primarily due to a generally stronger U.S. dollar relative to the Euro, Turkish Lira and Swedish Krona during the three months ended September 30, 2018 compared to the three months ended September 30, 2017.
Asia-Pacific Revenues. Revenues for our Asia-Pacific region for the three months ended September 30, 2018 included approximately $17.7 million of incremental revenues attributable to the Metronode Acquisition, which closed in April 2018. Our revenues from Japan and Singapore, the largest revenue contributors in the Asia-Pacific region for the period, combined represented approximately 59% and 63%, respectively, of the regional revenues during the three months ended September 30, 2018 and 2017. Excluding revenues attributable to the Metronode Acquisition, our Asia-Pacific revenue growth was primarily due to (i) approximately $15.5 million of revenue generated from our recently-opened IBX data center expansions in the Hong Kong, Sydney, Melbourne, Singapore and Osaka metro areas and (ii) an increase in orders from both our existing customers and new customers during the period. During the three months ended September 30, 2018, foreign currency fluctuations resulted in approximately $3.8 million of net unfavorable foreign currency impact to our Asia-Pacific revenues primarily due to a generally stronger U.S. dollar relative to the Australian Dollar during the three months ended September 30, 2018 compared to the three months ended September 30, 2017.
Cost of Revenues. Our cost of revenues for the three months ended September 30, 2018 and 2017 were split among the following geographic regions (dollars in thousands):
 
Three Months Ended September 30,
 
% Change
 
2018
 
%
 
2017
 
%
 
Actual
 
Constant
Currency
Americas
$
281,582

 
43
%
 
$
270,488

 
46
%
 
4
%
 
7
%
EMEA
233,002

 
35
%
 
190,046

 
33
%
 
23
%
 
24
%
Asia-Pacific
145,725

 
22
%
 
121,826

 
21
%
 
20
%
 
21
%
Total
$
660,309

 
100
%
 
$
582,360

 
100
%
 
13
%
 
15
%
 
Three Months Ended
September 30,
 
2018
 
2017
Cost of revenues as a percentage of revenues:
 
 
 
Americas
45
%
 
45
%
EMEA
59
%
 
56
%
Asia-Pacific
56
%
 
56
%
Total
51
%
 
51
%
Americas Cost of Revenues. As compared to the three months ended September 30, 2017, cost of revenues for our Americas region for the three months ended September 30, 2018 included approximately $9.9 million incremental cost of revenues from the Infomart Dallas Acquisition. Excluding the impact from this acquisition, our Americas cost of revenues did not materially change during the three months ended September 30, 2018 compared to the three months ended September 30, 2017. During the three months ended September 30, 2018, foreign currency fluctuations resulted in approximately $6.9 million of favorable foreign currency impact to our Americas cost of revenues primarily due to a generally stronger U.S. dollar relative to the Brazilian Real during the three months ended September 30, 2018 compared to the three months ended September 30, 2017. We expect Americas cost of revenues to increase as we continue to grow our business, including results from recent acquisitions.
EMEA Cost of Revenues. Cost of revenues for our EMEA region for the three months ended September 30, 2018 included approximately $14.3 million incremental cost of revenues from the Itconic and Zenium acquisitions. Excluding the impacts from these acquisitions, the increase in our EMEA cost of revenues was primarily due to (i) $13.4 million of higher utilities costs driven by IBX expansions, increased usage and price increases; (ii) $2.4 million of higher office expenses and rent and facility costs,

40