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SEC Filings

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

months ended September 30, 2018, the impact of foreign currency fluctuations on our Asia-Pacific sales and marketing expenses was not significant when compared to average exchange rates of the three months ended September 30, 2017. Over the past several years, we have been investing in our Asia-Pacific sales and marketing initiatives and expect our Asia-Pacific sales and marketing expenses to continue to increase as we continue to grow our business, including the impact from the Metronode Acquisition.
General and Administrative Expenses. Our general and administrative expenses 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
$
140,938

 
68
%
 
$
119,434

 
64
%
 
18
 %
 
19
%
EMEA
44,084

 
21
%
 
44,380

 
24
%
 
(1
)%
 
%
Asia-Pacific
21,880

 
11
%
 
21,522

 
12
%
 
2
 %
 
2
%
Total
$
206,902

 
100
%
 
$
185,336

 
100
%
 
12
 %
 
12
%
 
 
Three Months Ended
September 30,
 
2018
 
2017
General and administrative expenses as a percentage of revenues:
 
 
 
Americas
23
%
 
20
%
EMEA
11
%
 
13
%
Asia-Pacific
8
%
 
10
%
Total
16
%
 
16
%
Americas General and Administrative Expenses. The increase in our Americas general and administrative expenses was primarily due to (i) $7.7 million of higher compensation costs, including general salaries, bonuses, stock-based compensation, and headcount growth (1,297 Americas general and administrative employees as of September 30, 2018 versus 1,088 as of September 30, 2017); (ii) $6.7 million of higher office, outside service consulting, and rent and facilities costs in support of our business growth and (iii) $6.8 million of higher depreciation expense associated with the implementation of certain systems, including revenue, data management and cloud exchange systems, to improve our quote to order and billing processes and to support the integration and growth of our business. During the three months ended September 30, 2018, the impact of foreign currency fluctuations on our Americas general and administrative expenses was not significant when compared to average exchange rates for the three months ended September 30, 2017. Over the course of the past year, we have been investing in our Americas general and administrative functions to scale this region effectively for growth, which has included additional investments in improving our back office systems. We expect our current efforts to improve our back office systems will continue over the next several years. Going forward, although we are carefully monitoring our spending, we expect our Americas general and administrative expenses to increase as we continue to further scale our operations to support our growth, including these investments in our back office systems, investments to maintain our REIT qualification and recent acquisitions.
EMEA General and Administrative Expenses. Our EMEA general and administrative expenses 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, the impact of foreign currency fluctuations on our EMEA general and administrative expenses was not significant when compared to average exchange rates for the three months ended September 30, 2017. Over the course of the past year, we have been investing in our EMEA general and administrative functions as a result of our ongoing efforts to scale this region effectively for growth. Going forward, although we are carefully monitoring our spending, we expect our EMEA general and administrative expenses to increase in future periods as we continue to scale our operations to support our growth.
Asia-Pacific General and Administrative Expenses. Our Asia-Pacific general and administrative expenses did not materially change during the three months ended September 30, 2018 compared to the three months ended September 30, 2017. The impact of foreign currency fluctuations on our Asia-Pacific general and administrative expenses for the three months ended September 30, 2018 was not significant when compared to average exchange rates of the three months ended September 30, 2017. Going forward, although we are carefully monitoring our spending, we expect our Asia-Pacific general and administrative expenses to increase as we continue to support our growth, including the impact from the Metronode Acquisition.

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