Switch posts $102 million in revenue

Switch, the Las Vegas based company that develops and operates the SUPERNAP data centers, reported record quarterly revenue of $102.2 million, compared to $92.1 million for the same quarter in 2017, an increase of 11%. Operating income of $15.8 million, compared to $23.5 million for the same quarter last year, a decrease of 33%. Operating income in the second quarter of 2018 includes the impact of $8.2 million in equity-based compensation expense compared with $1.3 million in the same quarter of 2017. A significant portion of this equity-based compensation expense in the second quarter of 2018 relates to the continued vesting of Common Unit awards granted in connection with Switch's initial public offering.

Adjusted EBITDA was $50.3 million, compared to $46.8 million for the same quarter in 2017. Adjusted EBITDA margin of 49.2%, compared to 50.8% for the same quarter in 2017, a decrease of 160 basis points.
Capital expenditures of $99.4 million, compared to $112.9 million for the same quarter in 2017, a decrease of 12%.

"The logistics and timing required for customer implementation of our holistic cloud solution impacted our expectations for the year," said Thomas Morton, president of Switch. "We firmly believe in the long-term growth prospects of our business, and that the unique and market-defining solutions available only at the Switch PRIME campus ecosystems will establish our organization as the recognized pillar of enterprise hybrid cloud."