- 2020 annual revenues increased 8% year-over-year on both an as-reported and normalized and constant currency basis to approximately
$6 billion . This represents the company's 72nd consecutive quarter of revenue growth - Delivered record channel bookings in Q4, accounting for more than 35% of total bookings
- Continues to expand platform, building across 44 projects in 30 markets and 20 countries
2020 Results Summary
- Revenues
$5.999 billion , an 8% increase over the previous year on both an as-reported and normalized and constant currency basis- Operating Income
$1.053 billion , a 10% decrease from the previous year, and an operating margin of 18%, in part due to increased acquisition costs and the prior year's gain on sale of assets contributed to the EMEA joint venture- Adjusted EBITDA
$2.853 billion , a 48% adjusted EBITDA margin- Includes
$17 million of integration costs - Net Income and Net Income per Share attributable to
Equinix $370 million , a 27% decrease from the previous year, primarily due to acquisition costs and losses on debt extinguishment related to balance sheet refinancing initiatives$4.18 per share, a 30% decrease from the previous year- AFFO and AFFO per Share
$2.189 billion , a 13% increase over the previous year or 18% on a normalized and constant currency basis$24.76 per share, a 9% increase over the previous year or 12% on a normalized and constant currency basis- Includes
$17 million of integration costs
2021 Annual Guidance Summary
- Revenues
$6.580 -$6.640 billion , a 10 - 11% increase over the previous year or a normalized and constant currency increase of 7 - 8%- Adjusted EBITDA
$3.067 -$3.127 billion , a 47% adjusted EBITDA margin- Includes operational efficiencies offset by investment in new products and services, including xScaleTM, scaling the business and expansion drag
- Assumes
$30 million of integration costs - AFFO and AFFO per Share
$2.413 -$2.463 billion , an increase of 10 - 12% over the previous year or a normalized and constant currency increase of 9 - 11%$26.72 -$27.28 per share, an increase of 8 - 10% over the previous year on both an as-reported and normalized and constant currency basis. This guidance excludes any capital market activities the company may undertake in the future- Assumes
$30 million of integration costs
Quote
"While 2020 brought about a landscape of challenges and change,
Business Highlights
Equinix continues to invest in its platform services, introducing new product capabilities and expanding market availability, helping to lower the barriers to entry and improving the value of digital transformation for new and existing customers:- On
October 6 ,Equinix launched the availability of Equinix Metal™, a fully automated and interconnected Bare Metal as a Service offering. Today, Equinix Metal is available in eight global metros and is expected to be available in 18 global metros in early 2021. - On
December 8 ,Equinix introduced transformative capabilities on Equinix FabricTM and Network Edge, which ease the way enterprises connect their digital infrastructure. With these new capabilities, Equinix Fabric now has native integration built into both Network Edge and Equinix Metal over theEquinix platform and is available in 49 strategic metros across five continents. Equinix continued to expand the reach of its global platform and operates across 63 metros in 26 countries. In 2020,Equinix completed 16 new expansions, its most active build year ever, with a sizeable expansion roadmap planned for 2021 to meet growing customer demand. New expansions planned in 2021 include theGeneva ,Genoa ,Madrid ,Manchester , Muscat,New York andOsaka metros, with 44 large projects underway across 30 markets and 20 countries.- Interconnection revenues grew 14% year-over-year on a normalized and constant currency basis driven by strong customer adoption of Equinix Fabric, good traction in internet exchange markets and solid interconnection net adds. Today,
Equinix has the most comprehensive global interconnection platform, now comprising over 392,000 physical and virtual interconnections. In Q4,Equinix added 7,700 interconnections, more interconnections than its next 15 competitors combined, driven by continued strength in network and cloud connectivity. Equinix Internet Exchange® experienced peak traffic, up 8% quarter-over-quarter and 43% year-over-year, driven by cloud, content and gaming segments. - In Q4, the Network vertical achieved record bookings, driven by telecom carriers upgrading their core and edges to address the shifting traffic patterns resulting from the pandemic, as well as continued strength in enterprise resale. The Financial Services vertical also achieved a record quarter, led by wins and expansions with multinational financial services companies, with particular strength in the
Americas region, including the greaterNew York City metro. Equinix continues its indirect selling initiatives, as the company pursues high-value strategic channel partnerships. In Q4, channel activity accounted for approximately 35% of bookings. Strength was driven byEquinix's hyperscale and technology alliance partners, with wins across a wide range of industry segments with projects focused on digital transformation efforts, as well as COVID-19 pandemic responses.Equinix continues to make significant progress with the company's hyperscale strategy with eight projects currently underway across all three regions and a strong pipeline of customer demand. In Q4,Equinix completed the formation of another greater thanUS$1.0 billion joint venture in the form of a limited liability partnership with GIC,Singapore's sovereign wealth fund, to develop and operate xScaleTM data centers inJapan .
COVID-19 Update
Many of
Looking ahead, the full impact of the COVID-19 pandemic on the company's financial condition or results of operations remains uncertain and will depend on a number of factors, including its impact on
Business Outlook
For the first quarter of 2021,
For the full year of 2021, total revenues are expected to range between
The
The adjusted EBITDA guidance is based on the revenue guidance less our expectations of cash cost of revenues and cash operating expenses. The AFFO guidance is based on the adjusted EBITDA guidance less our expectations of net interest expense, an installation revenue adjustment, a straight-line rent expense adjustment, a contract cost adjustment, amortization of deferred financing costs and debt discounts and premiums, income tax expense, an income tax expense adjustment, recurring capital expenditures, other income (expense), (gains) losses on disposition of real estate property and adjustments for unconsolidated joint ventures' and non-controlling interests' share of these items.
Q4 2020 Results Conference Call and Replay Information
A replay of the call will be available one hour after the call, through
Investor Presentation and Supplemental Financial Information
Additional Resources
About
Non-GAAP Financial Measures
In presenting non-GAAP financial measures, such as adjusted EBITDA, cash cost of revenues, cash gross margins, cash operating expenses (also known as cash selling, general and administrative expenses or cash SG&A), adjusted EBITDA margins, free cash flow and adjusted free cash flow,
In addition, in presenting the non-GAAP financial measures,
Non-GAAP financial measures are not a substitute for financial information prepared in accordance with GAAP. Non-GAAP financial measures should not be considered in isolation, but should be considered together with the most directly comparable GAAP financial measures and the reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Investors should note that the non-GAAP financial measures used by
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, risks to our business and operating results related to the COVID-19 pandemic; the challenges of acquiring, operating and constructing IBX data centers and developing, deploying and delivering
|
|||||||||||||||||||
Condensed Consolidated Statements of Operations |
|||||||||||||||||||
(in thousands, except per share data) |
|||||||||||||||||||
(unaudited) |
|||||||||||||||||||
Three Months Ended |
Twelve Months Ended |
||||||||||||||||||
|
|
|
|
|
|||||||||||||||
Recurring revenues |
$ |
1,466,126 |
$ |
1,432,072 |
$ |
1,337,977 |
$ |
5,658,030 |
$ |
5,238,186 |
|||||||||
Non-recurring revenues |
97,989 |
87,695 |
79,158 |
340,515 |
323,954 |
||||||||||||||
Revenues |
1,564,115 |
1,519,767 |
1,417,135 |
5,998,545 |
5,562,140 |
||||||||||||||
Cost of revenues |
830,735 |
767,979 |
725,636 |
3,074,340 |
2,810,184 |
||||||||||||||
Gross profit |
733,380 |
751,788 |
691,499 |
2,924,205 |
2,751,956 |
||||||||||||||
Operating expenses: |
|||||||||||||||||||
Sales and marketing |
187,055 |
172,727 |
160,556 |
718,356 |
651,046 |
||||||||||||||
General and administrative |
293,144 |
279,350 |
245,504 |
1,090,981 |
935,018 |
||||||||||||||
Transaction costs |
24,948 |
5,840 |
16,545 |
55,935 |
24,781 |
||||||||||||||
Impairment charges |
— |
7,306 |
(233) |
7,306 |
15,790 |
||||||||||||||
Gain on asset sales |
(373) |
(1,785) |
(43,847) |
(1,301) |
(44,310) |
||||||||||||||
Total operating expenses |
504,774 |
463,438 |
378,525 |
1,871,277 |
1,582,325 |
||||||||||||||
Income from operations |
228,606 |
288,350 |
312,974 |
1,052,928 |
1,169,631 |
||||||||||||||
Interest and other income (expense): |
|||||||||||||||||||
Interest income |
1,244 |
1,452 |
7,532 |
8,654 |
27,697 |
||||||||||||||
Interest expense |
(90,912) |
(99,736) |
(117,617) |
(406,466) |
(479,684) |
||||||||||||||
Other income (expense) |
(2,697) |
162 |
12,336 |
6,913 |
27,778 |
||||||||||||||
Loss on debt extinguishment |
(44,001) |
(93,494) |
(52,758) |
(145,804) |
(52,825) |
||||||||||||||
Total interest and other, net |
(136,366) |
(191,616) |
(150,507) |
(536,703) |
(477,034) |
||||||||||||||
Income before income taxes |
92,240 |
96,734 |
162,467 |
516,225 |
692,597 |
||||||||||||||
Income tax expense |
(41,304) |
(29,903) |
(37,632) |
(146,151) |
(185,352) |
||||||||||||||
Net income |
50,936 |
66,831 |
124,835 |
370,074 |
507,245 |
||||||||||||||
Net (income) loss attributable to non-controlling interests |
58 |
(144) |
160 |
(297) |
205 |
||||||||||||||
Net income attributable to |
$ |
50,994 |
$ |
66,687 |
$ |
124,995 |
$ |
369,777 |
$ |
507,450 |
|||||||||
Net income per share attributable to |
|||||||||||||||||||
Basic net income per share |
$ |
0.57 |
$ |
0.75 |
$ |
1.47 |
$ |
4.22 |
$ |
6.03 |
|||||||||
Diluted net income per share |
$ |
0.57 |
$ |
0.74 |
$ |
1.46 |
$ |
4.18 |
$ |
5.99 |
|||||||||
Shares used in computing basic net income per share |
89,113 |
88,806 |
85,289 |
87,700 |
84,140 |
||||||||||||||
Shares used in computing diluted net income per share |
89,726 |
89,519 |
85,831 |
88,410 |
84,679 |
||||||||||||||
|
|||||||||||||||||||
Condensed Consolidated Statements of Comprehensive Income |
|||||||||||||||||||
(in thousands) |
|||||||||||||||||||
(unaudited) |
|||||||||||||||||||
Three Months Ended |
Twelve Months Ended |
||||||||||||||||||
|
|
|
|
|
|||||||||||||||
Net income |
$ |
50,936 |
$ |
66,831 |
$ |
124,835 |
$ |
370,074 |
$ |
507,245 |
|||||||||
Other comprehensive income (loss), net of tax: |
|||||||||||||||||||
Foreign currency translation adjustment ("CTA") gain (loss) |
481,625 |
299,441 |
283,185 |
548,560 |
(58,334) |
||||||||||||||
Unrealized loss on cash flow hedges |
(27,824) |
(33,842) |
(22,928) |
(82,790) |
(3,842) |
||||||||||||||
Net investment hedge CTA gain (loss) |
(265,340) |
(227,101) |
(154,596) |
(444,553) |
73,294 |
||||||||||||||
Net actuarial gain (loss) on defined benefit plans |
8 |
22 |
(22) |
85 |
(48) |
||||||||||||||
Total other comprehensive income, net of tax |
188,469 |
38,520 |
105,639 |
21,302 |
11,070 |
||||||||||||||
Comprehensive income, net of tax |
239,405 |
105,351 |
230,474 |
391,376 |
518,315 |
||||||||||||||
Net (income) loss attributable to non-controlling interests |
58 |
(144) |
160 |
(297) |
205 |
||||||||||||||
Other comprehensive (income) loss attributable to non-controlling interests |
(36) |
(30) |
(16) |
(57) |
19 |
||||||||||||||
Comprehensive income attributable to |
$ |
239,427 |
$ |
105,177 |
$ |
230,618 |
$ |
391,022 |
$ |
518,539 |
|
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(in thousands) |
|||||||
(unaudited) |
|||||||
|
|
||||||
Assets |
|||||||
Cash and cash equivalents |
$ |
1,604,869 |
$ |
1,869,577 |
|||
Short-term investments |
4,532 |
10,362 |
|||||
Accounts receivable, net |
676,738 |
689,134 |
|||||
Other current assets |
355,016 |
303,543 |
|||||
Total current assets |
2,641,155 |
2,872,616 |
|||||
Property, plant and equipment, net |
14,503,084 |
12,152,597 |
|||||
Operating lease right-of-use assets |
1,475,057 |
1,475,367 |
|||||
|
5,472,553 |
4,781,858 |
|||||
Intangible assets, net |
2,170,945 |
2,102,389 |
|||||
Other assets |
776,047 |
580,788 |
|||||
Total assets |
$ |
27,038,841 |
$ |
23,965,615 |
|||
Liabilities and Stockholders' Equity |
|||||||
Accounts payable and accrued expenses |
$ |
876,862 |
$ |
760,718 |
|||
Accrued property, plant and equipment |
301,155 |
301,535 |
|||||
Current portion of operating lease liabilities |
154,207 |
145,606 |
|||||
Current portion of finance lease liabilities |
137,683 |
75,239 |
|||||
Current portion of mortgage and loans payable |
82,289 |
77,603 |
|||||
Current portion of senior notes |
150,186 |
643,224 |
|||||
Other current liabilities |
354,368 |
153,938 |
|||||
Total current liabilities |
2,056,750 |
2,157,863 |
|||||
Operating lease liabilities, less current portion |
1,308,627 |
1,315,656 |
|||||
Finance lease liabilities, less current portion |
1,784,816 |
1,430,882 |
|||||
Mortgage and loans payable, less current portion |
1,287,254 |
1,289,434 |
|||||
Senior notes, less current portion |
9,018,277 |
8,309,673 |
|||||
Other liabilities |
948,999 |
621,725 |
|||||
Total liabilities |
16,404,723 |
15,125,233 |
|||||
Common stock |
89 |
86 |
|||||
Additional paid-in capital |
15,028,357 |
12,696,433 |
|||||
|
(122,118) |
(144,256) |
|||||
Accumulated dividends |
(5,119,274) |
(4,168,469) |
|||||
Accumulated other comprehensive loss |
(913,368) |
(934,613) |
|||||
Retained earnings |
1,760,302 |
1,391,425 |
|||||
Total |
10,633,988 |
8,840,606 |
|||||
Non-controlling interests |
130 |
(224) |
|||||
Total stockholders' equity |
10,634,118 |
8,840,382 |
|||||
Total liabilities and stockholders' equity |
$ |
27,038,841 |
$ |
23,965,615 |
|||
Ending headcount by geographic region is as follows: |
|||||||
|
4,599 |
3,672 |
|||||
EMEA headcount |
3,405 |
2,941 |
|||||
|
2,009 |
1,765 |
|||||
Total headcount |
10,013 |
8,378 |
|
|||||||
Summary of Debt Principal Outstanding |
|||||||
(in thousands) |
|||||||
(unaudited) |
|||||||
|
|
||||||
Finance lease liabilities |
$ |
1,922,499 |
$ |
1,506,121 |
|||
Term loans |
1,288,779 |
1,282,302 |
|||||
Mortgage payable and other loans payable |
80,764 |
84,735 |
|||||
Plus: debt discount and issuance costs, net |
1,427 |
3,081 |
|||||
Total mortgage and loans payable principal |
1,370,970 |
1,370,118 |
|||||
Senior notes |
9,168,463 |
8,952,897 |
|||||
Plus: debt issuance costs |
92,773 |
78,030 |
|||||
Less: debt premium |
(186) |
(1,716) |
|||||
Total senior notes principal |
9,261,050 |
9,029,211 |
|||||
Total debt principal outstanding |
$ |
12,554,519 |
$ |
11,905,450 |
|
||||||||||||||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||||||||||||||
(in thousands) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
Three Months Ended |
Twelve Months Ended |
|||||||||||||||||||
|
|
|
|
|
||||||||||||||||
Cash flows from operating activities: |
||||||||||||||||||||
Net income |
$ |
50,936 |
$ |
66,831 |
$ |
124,835 |
$ |
370,074 |
$ |
507,245 |
||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||||||||||||||
Depreciation, amortization and accretion |
378,859 |
362,286 |
328,295 |
1,427,010 |
1,285,296 |
|||||||||||||||
Stock-based compensation |
79,361 |
75,248 |
62,126 |
294,952 |
236,539 |
|||||||||||||||
Amortization of debt issuance costs and debt discounts and premiums |
3,951 |
3,884 |
3,613 |
15,739 |
13,042 |
|||||||||||||||
Loss on debt extinguishment |
44,001 |
93,494 |
52,758 |
145,804 |
52,825 |
|||||||||||||||
Gain on asset sales |
(373) |
(1,785) |
(43,847) |
(1,301) |
(44,310) |
|||||||||||||||
Impairment charges |
— |
7,306 |
(233) |
7,306 |
15,790 |
|||||||||||||||
Other items |
(158) |
(2,518) |
3,831 |
18,071 |
19,620 |
|||||||||||||||
Changes in operating assets and liabilities: |
||||||||||||||||||||
Accounts receivable |
63,516 |
(23,871) |
96,480 |
25,412 |
(26,909) |
|||||||||||||||
Income taxes, net |
(2,448) |
(32,054) |
(40,649) |
(22,641) |
32,495 |
|||||||||||||||
Accounts payable and accrued expenses |
21,955 |
61,410 |
(34,588) |
57,801 |
(27,928) |
|||||||||||||||
Operating lease right-of-use assets |
39,039 |
38,319 |
40,805 |
153,650 |
149,031 |
|||||||||||||||
Operating lease liabilities |
(35,472) |
(35,300) |
(40,032) |
(142,863) |
(152,091) |
|||||||||||||||
Other assets and liabilities |
42,981 |
(81,088) |
(23,724) |
(39,188) |
(67,917) |
|||||||||||||||
Net cash provided by operating activities |
686,148 |
532,162 |
529,670 |
2,309,826 |
1,992,728 |
|||||||||||||||
Cash flows from investing activities: |
||||||||||||||||||||
Purchases, sales and maturities of investments, net |
(62,099) |
3,969 |
(5,776) |
(98,411) |
(20,523) |
|||||||||||||||
Business acquisitions, net of cash and restricted cash acquired |
(702,024) |
— |
— |
(1,180,272) |
(34,143) |
|||||||||||||||
Purchases of real estate |
(75,720) |
(41,895) |
(104,865) |
(200,182) |
(169,153) |
|||||||||||||||
Purchases of other property, plant and equipment |
(834,330) |
(565,285) |
(714,561) |
(2,282,504) |
(2,079,521) |
|||||||||||||||
Proceeds from asset sales |
334,397 |
— |
358,656 |
334,397 |
358,773 |
|||||||||||||||
Net cash used in investing activities |
(1,339,776) |
(603,211) |
(466,546) |
(3,426,972) |
(1,944,567) |
|||||||||||||||
Cash flows from financing activities: |
||||||||||||||||||||
Proceeds from employee equity awards |
— |
31,727 |
— |
62,118 |
52,018 |
|||||||||||||||
Payment of dividend distributions |
(237,756) |
(240,690) |
(210,360) |
(947,933) |
(836,164) |
|||||||||||||||
Proceeds from public offering of common stock, net of offering costs |
— |
196,477 |
— |
1,981,375 |
1,660,976 |
|||||||||||||||
Proceeds from loans payable |
— |
— |
— |
750,790 |
— |
|||||||||||||||
Proceeds from senior notes, net of debt discounts |
1,845,891 |
— |
2,797,906 |
4,431,627 |
2,797,906 |
|||||||||||||||
Repayment of finance lease liabilities |
(40,842) |
(31,765) |
(63,701) |
(115,288) |
(126,486) |
|||||||||||||||
Repayment of mortgage and loans payable |
(20,857) |
(19,431) |
(19,431) |
(829,466) |
(73,227) |
|||||||||||||||
Repayment of senior notes |
(1,923,000) |
(1,947,050) |
(2,056,289) |
(4,363,761) |
(2,206,289) |
|||||||||||||||
Debt extinguishment costs |
(29,296) |
(77,785) |
(43,311) |
(111,700) |
(43,311) |
|||||||||||||||
Debt issuance costs |
(15,970) |
— |
(23,341) |
(42,236) |
(23,341) |
|||||||||||||||
Other financing activities |
— |
— |
— |
— |
— |
|||||||||||||||
Net cash provided by (used in) financing activities |
(421,830) |
(2,088,517) |
381,473 |
815,526 |
1,202,082 |
|||||||||||||||
Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash |
35,065 |
18,513 |
21,883 |
40,702 |
8,766 |
|||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash |
(1,040,393) |
(2,141,053) |
466,480 |
(260,918) |
1,259,009 |
|||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period |
2,666,088 |
4,807,141 |
1,420,133 |
1,886,613 |
627,604 |
|||||||||||||||
Cash, cash equivalents and restricted cash at end of period |
$ |
1,625,695 |
$ |
2,666,088 |
$ |
1,886,613 |
$ |
1,625,695 |
$ |
1,886,613 |
||||||||||
Supplemental cash flow information: |
||||||||||||||||||||
Cash paid for taxes |
$ |
27,385 |
$ |
55,473 |
$ |
47,507 |
$ |
143,934 |
$ |
136,583 |
||||||||||
Cash paid for interest |
$ |
132,034 |
$ |
115,174 |
$ |
141,140 |
$ |
498,408 |
$ |
553,815 |
||||||||||
Free cash flow (negative free cash flow) (1) |
$ |
(591,529) |
$ |
(75,018) |
$ |
68,900 |
$ |
(1,018,735) |
$ |
68,684 |
||||||||||
Adjusted free cash flow (adjusted negative free cash flow) (2) |
$ |
186,215 |
$ |
(33,123) |
$ |
173,765 |
$ |
361,719 |
$ |
271,980 |
||||||||||
(1) |
We define free cash flow (negative free cash flow) as net cash provided by operating activities plus net cash provided by (used in) investing activities (excluding the net purchases, sales and maturities of investments) as presented below: |
|||||||||||||||||||
Net cash provided by operating activities as presented above |
$ |
686,148 |
$ |
532,162 |
$ |
529,670 |
$ |
2,309,826 |
$ |
1,992,728 |
||||||||||
Net cash used in investing activities as presented above |
(1,339,776) |
(603,211) |
(466,546) |
(3,426,972) |
(1,944,567) |
|||||||||||||||
Purchases, sales and maturities of investments, net |
62,099 |
(3,969) |
5,776 |
98,411 |
20,523 |
|||||||||||||||
Free cash flow (negative free cash flow) |
$ |
(591,529) |
$ |
(75,018) |
$ |
68,900 |
$ |
(1,018,735) |
$ |
68,684 |
||||||||||
(2) |
We define adjusted free cash flow (adjusted negative free cash flow) as free cash flow (negative free cash flow) as defined above, excluding any purchases of real estate and business acquisitions, net of cash and restricted cash acquired as presented below: |
|||||||||||||||||||
Free cash flow (negative free cash flow) as defined above) |
$ |
(591,529) |
$ |
(75,018) |
$ |
68,900 |
$ |
(1,018,735) |
$ |
68,684 |
||||||||||
Less business acquisitions, net of cash and restricted cash acquired |
702,024 |
— |
— |
1,180,272 |
34,143 |
|||||||||||||||
Less purchases of real estate |
75,720 |
41,895 |
104,865 |
200,182 |
169,153 |
|||||||||||||||
Adjusted free cash flow (adjusted negative free cash flow) |
$ |
186,215 |
$ |
(33,123) |
$ |
173,765 |
$ |
361,719 |
$ |
271,980 |
|
||||||||||||||||||||
Non-GAAP Measures and Other Supplemental Data |
||||||||||||||||||||
(in thousands) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
Three Months Ended |
Twelve Months Ended |
|||||||||||||||||||
|
|
|
|
2019 |
||||||||||||||||
Recurring revenues |
$ |
1,466,126 |
$ |
1,432,072 |
$ |
1,337,977 |
$ |
5,658,030 |
$ |
5,238,186 |
||||||||||
Non-recurring revenues |
97,989 |
87,695 |
79,158 |
340,515 |
323,954 |
|||||||||||||||
Revenues (1) |
1,564,115 |
1,519,767 |
1,417,135 |
5,998,545 |
5,562,140 |
|||||||||||||||
Cash cost of revenues (2) |
539,667 |
494,187 |
477,144 |
1,991,341 |
1,851,458 |
|||||||||||||||
Cash gross profit (3) |
1,024,448 |
1,025,580 |
939,991 |
4,007,204 |
3,710,682 |
|||||||||||||||
Cash operating expenses (4)(7): |
||||||||||||||||||||
Cash sales and marketing expenses (5) |
119,805 |
106,317 |
100,430 |
452,800 |
401,877 |
|||||||||||||||
Cash general and administrative expenses (6) |
193,241 |
182,018 |
163,701 |
701,506 |
621,078 |
|||||||||||||||
Total cash operating expenses (4)(7) |
313,046 |
288,335 |
264,131 |
1,154,306 |
1,022,955 |
|||||||||||||||
Adjusted EBITDA (8) |
$ |
711,402 |
$ |
737,245 |
$ |
675,860 |
$ |
2,852,898 |
$ |
2,687,727 |
||||||||||
Cash gross margins (9) |
65% |
67% |
66% |
67% |
67% |
|||||||||||||||
Adjusted EBITDA margins (10) |
45% |
49% |
48% |
48% |
48% |
|||||||||||||||
Adjusted EBITDA flow-through rate (11) |
(58)% |
35% |
6% |
38% |
56% |
|||||||||||||||
FFO (12) |
$ |
301,747 |
$ |
298,183 |
$ |
304,025 |
$ |
1,300,630 |
$ |
1,314,556 |
||||||||||
AFFO (13) (14) |
$ |
516,965 |
$ |
579,682 |
$ |
472,611 |
$ |
2,189,145 |
$ |
1,931,122 |
||||||||||
Basic FFO per share (15) |
$ |
3.39 |
$ |
3.36 |
$ |
3.56 |
$ |
14.83 |
$ |
15.62 |
||||||||||
Diluted FFO per share (15) |
$ |
3.36 |
$ |
3.33 |
$ |
3.54 |
$ |
14.71 |
$ |
15.52 |
||||||||||
Basic AFFO per share (15) |
$ |
5.80 |
$ |
6.53 |
$ |
5.54 |
$ |
24.96 |
$ |
22.95 |
||||||||||
Diluted AFFO per share(15) |
$ |
5.76 |
$ |
6.48 |
$ |
5.51 |
$ |
24.76 |
$ |
22.81 |
||||||||||
(1) |
The geographic split of our revenues on a services basis is presented below: |
|||||||||||||||||||
Americas Revenues: |
||||||||||||||||||||
Colocation |
$ |
472,227 |
$ |
450,030 |
$ |
443,991 |
$ |
1,820,709 |
$ |
1,769,654 |
||||||||||
Interconnection |
161,334 |
156,677 |
149,474 |
622,327 |
576,709 |
|||||||||||||||
Managed infrastructure |
36,787 |
28,954 |
21,485 |
120,159 |
90,262 |
|||||||||||||||
Other |
5,393 |
3,911 |
5,020 |
19,605 |
19,743 |
|||||||||||||||
Recurring revenues |
675,741 |
639,572 |
619,970 |
2,582,800 |
2,456,368 |
|||||||||||||||
Non-recurring revenues |
36,361 |
32,760 |
33,696 |
124,958 |
131,359 |
|||||||||||||||
Revenues |
$ |
712,102 |
$ |
672,332 |
$ |
653,666 |
$ |
2,707,758 |
$ |
2,587,727 |
||||||||||
EMEA Revenues: |
||||||||||||||||||||
Colocation |
$ |
369,523 |
$ |
391,773 |
$ |
359,423 |
$ |
1,504,770 |
$ |
1,395,544 |
||||||||||
Interconnection |
58,345 |
55,700 |
44,350 |
213,490 |
161,552 |
|||||||||||||||
Managed infrastructure |
37,883 |
30,690 |
28,495 |
127,722 |
113,631 |
|||||||||||||||
Other |
4,561 |
5,581 |
3,458 |
18,738 |
10,019 |
|||||||||||||||
Recurring revenues |
470,312 |
483,744 |
435,726 |
1,864,720 |
1,680,746 |
|||||||||||||||
Non-recurring revenues |
40,995 |
34,339 |
28,063 |
131,669 |
125,698 |
|||||||||||||||
Revenues |
$ |
511,307 |
$ |
518,083 |
$ |
463,789 |
$ |
1,996,389 |
$ |
1,806,444 |
||||||||||
Asia-Pacific Revenues: |
||||||||||||||||||||
Colocation |
$ |
246,864 |
$ |
236,762 |
$ |
219,306 |
$ |
933,522 |
$ |
857,009 |
||||||||||
Interconnection |
51,065 |
48,565 |
41,180 |
187,441 |
155,328 |
|||||||||||||||
Managed infrastructure |
22,876 |
22,614 |
21,795 |
89,464 |
88,735 |
|||||||||||||||
Other |
(732) |
815 |
— |
83 |
— |
|||||||||||||||
Recurring revenues |
320,073 |
308,756 |
282,281 |
1,210,510 |
1,101,072 |
|||||||||||||||
Non-recurring revenues |
20,633 |
20,596 |
17,399 |
83,888 |
66,897 |
|||||||||||||||
Revenues |
$ |
340,706 |
$ |
329,352 |
$ |
299,680 |
$ |
1,294,398 |
$ |
1,167,969 |
||||||||||
Worldwide Revenues: |
||||||||||||||||||||
Colocation |
$ |
1,088,614 |
$ |
1,078,565 |
$ |
1,022,720 |
$ |
4,259,001 |
$ |
4,022,207 |
||||||||||
Interconnection |
270,744 |
260,942 |
235,004 |
1,023,258 |
893,589 |
|||||||||||||||
Managed infrastructure |
97,546 |
82,258 |
71,775 |
337,345 |
292,628 |
|||||||||||||||
Other |
9,222 |
10,307 |
8,478 |
38,426 |
29,762 |
|||||||||||||||
Recurring revenues |
1,466,126 |
1,432,072 |
1,337,977 |
5,658,030 |
5,238,186 |
|||||||||||||||
Non-recurring revenues |
97,989 |
87,695 |
79,158 |
340,515 |
323,954 |
|||||||||||||||
Revenues |
$ |
1,564,115 |
$ |
1,519,767 |
$ |
1,417,135 |
$ |
5,998,545 |
$ |
5,562,140 |
||||||||||
(2) |
We define cash cost of revenues as cost of revenues less depreciation, amortization, accretion and stock-based compensation as presented below: |
|||||||||||||||||||
Cost of revenues |
$ |
830,735 |
$ |
767,979 |
$ |
725,636 |
$ |
3,074,340 |
$ |
2,810,184 |
||||||||||
Depreciation, amortization and accretion expense |
(283,029) |
(265,936) |
(241,753) |
(1,050,106) |
(933,371) |
|||||||||||||||
Stock-based compensation expense |
(8,039) |
(7,856) |
(6,739) |
(32,893) |
(25,355) |
|||||||||||||||
Cash cost of revenues |
$ |
539,667 |
$ |
494,187 |
$ |
477,144 |
$ |
1,991,341 |
$ |
1,851,458 |
||||||||||
The geographic split of our cash cost of revenues is presented below: |
||||||||||||||||||||
|
$ |
217,170 |
$ |
196,731 |
$ |
184,029 |
$ |
793,601 |
$ |
729,100 |
||||||||||
EMEA cash cost of revenues |
199,827 |
189,423 |
187,972 |
754,056 |
720,890 |
|||||||||||||||
|
122,670 |
108,033 |
105,143 |
443,684 |
401,468 |
|||||||||||||||
Cash cost of revenues |
$ |
539,667 |
$ |
494,187 |
$ |
477,144 |
$ |
1,991,341 |
$ |
1,851,458 |
||||||||||
(3) |
We define cash gross profit as revenues less cash cost of revenues (as defined above). |
|||||||||||||||||||
(4) |
We define cash operating expense as selling, general, and administrative expense less depreciation, amortization, and stock-based compensation. We also refer to cash operating expense as cash selling, general and administrative expense or "cash SG&A". |
|||||||||||||||||||
Selling, general, and administrative expense |
$ |
480,199 |
$ |
452,077 |
$ |
406,060 |
$ |
1,809,337 |
$ |
1,586,064 |
||||||||||
Depreciation and amortization expense |
(95,830) |
(96,350) |
(86,542) |
(376,904) |
(351,925) |
|||||||||||||||
Stock-based compensation expense |
(71,323) |
(67,392) |
(55,387) |
(278,127) |
(211,184) |
|||||||||||||||
Cash operating expense |
$ |
313,046 |
$ |
288,335 |
$ |
264,131 |
$ |
1,154,306 |
$ |
1,022,955 |
||||||||||
(5) |
We define cash sales and marketing expense as sales and marketing expense less depreciation, amortization and stock-based compensation as presented below: |
|||||||||||||||||||
Sales and marketing expense |
$ |
187,055 |
$ |
172,727 |
$ |
160,556 |
$ |
718,356 |
$ |
651,046 |
||||||||||
Depreciation and amortization expense |
(48,745) |
(48,780) |
(47,659) |
(192,661) |
(192,450) |
|||||||||||||||
Stock-based compensation expense |
(18,505) |
(17,630) |
(12,467) |
(72,895) |
(56,719) |
|||||||||||||||
Cash sales and marketing expense |
$ |
119,805 |
$ |
106,317 |
$ |
100,430 |
$ |
452,800 |
$ |
401,877 |
||||||||||
(6) |
We define cash general and administrative expense as general and administrative expense less depreciation, amortization and stock-based compensation as presented below: |
|||||||||||||||||||
General and administrative expense |
$ |
293,144 |
$ |
279,350 |
$ |
245,504 |
$ |
1,090,981 |
$ |
935,018 |
||||||||||
Depreciation and amortization expense |
(47,085) |
(47,570) |
(38,883) |
(184,243) |
(159,475) |
|||||||||||||||
Stock-based compensation expense |
(52,818) |
(49,762) |
(42,920) |
(205,232) |
(154,465) |
|||||||||||||||
Cash general and administrative expense |
$ |
193,241 |
$ |
182,018 |
$ |
163,701 |
$ |
701,506 |
$ |
621,078 |
||||||||||
(7) |
The geographic split of our cash operating expense, or cash SG&A, as defined above, is presented below: |
|||||||||||||||||||
|
$ |
195,180 |
$ |
185,051 |
$ |
155,561 |
$ |
728,135 |
$ |
621,005 |
||||||||||
EMEA cash SG&A |
74,205 |
65,444 |
69,072 |
268,087 |
257,574 |
|||||||||||||||
|
43,661 |
37,840 |
39,498 |
158,084 |
144,376 |
|||||||||||||||
Cash SG&A |
$ |
313,046 |
$ |
288,335 |
$ |
264,131 |
$ |
1,154,306 |
$ |
1,022,955 |
||||||||||
(8) |
We define adjusted EBITDA as income from operations excluding depreciation, amortization, accretion, stock-based compensation, restructuring charges, impairment charges, transaction costs and gain or loss on asset sales as presented below: |
|||||||||||||||||||
Income from operations |
$ |
228,606 |
$ |
288,350 |
$ |
312,974 |
$ |
1,052,928 |
$ |
1,169,631 |
||||||||||
Depreciation, amortization and accretion expense |
378,859 |
362,286 |
328,295 |
1,427,010 |
1,285,296 |
|||||||||||||||
Stock-based compensation expense |
79,362 |
75,248 |
62,126 |
311,020 |
236,539 |
|||||||||||||||
Impairment charges |
— |
7,306 |
(233) |
7,306 |
15,790 |
|||||||||||||||
Transaction costs |
24,948 |
5,840 |
16,545 |
55,935 |
24,781 |
|||||||||||||||
Gain on asset sales |
(373) |
(1,785) |
(43,847) |
(1,301) |
(44,310) |
|||||||||||||||
Adjusted EBITDA |
$ |
711,402 |
$ |
737,245 |
$ |
675,860 |
$ |
2,852,898 |
$ |
2,687,727 |
||||||||||
The geographic split of our adjusted EBITDA is presented below: |
||||||||||||||||||||
|
$ |
22,066 |
$ |
50,657 |
$ |
136,236 |
$ |
178,454 |
$ |
413,936 |
||||||||||
|
195,437 |
182,899 |
165,580 |
731,979 |
668,727 |
|||||||||||||||
|
59,956 |
55,044 |
44,878 |
234,015 |
170,102 |
|||||||||||||||
|
— |
— |
(233) |
— |
15,790 |
|||||||||||||||
|
23,634 |
3,735 |
13,378 |
43,922 |
14,830 |
|||||||||||||||
|
(1,341) |
(1,785) |
(45,763) |
(2,348) |
(45,763) |
|||||||||||||||
|
$ |
299,752 |
$ |
290,550 |
$ |
314,076 |
$ |
1,186,022 |
$ |
1,237,622 |
||||||||||
EMEA income from operations |
$ |
118,380 |
$ |
148,992 |
$ |
96,453 |
$ |
531,530 |
$ |
421,786 |
||||||||||
EMEA depreciation, amortization and accretion expense |
103,067 |
101,265 |
95,264 |
390,025 |
354,930 |
|||||||||||||||
EMEA stock-based compensation expense |
12,139 |
12,770 |
10,788 |
48,151 |
40,796 |
|||||||||||||||
EMEA transaction costs |
718 |
189 |
2,324 |
1,490 |
9,015 |
|||||||||||||||
EMEA loss on asset sales |
2,971 |
— |
1,916 |
3,050 |
1,453 |
|||||||||||||||
EMEA adjusted EBITDA |
$ |
237,275 |
$ |
263,216 |
$ |
206,745 |
$ |
974,246 |
$ |
827,980 |
||||||||||
|
$ |
88,160 |