Equinix reported that interconnection revenues growth continued to outpace colocation revenue growth in Q3, reflecting what it calls a movement towards "Interconnection Oriented Architecture" strategies and the adoption of hybrid multicloud as the preferred IT deployment model. Interconnection revenues grew 2.5% over Q2, while colocation revenues grew 1.8%. On an annual basis, Equinix's interconnection revenue grew 12.8%, while colocation revenue grew 10.3%.
Cross connects between customers increased to more than 294,000, and the Equinix Cloud Exchange Fabric platform now serves more than 1,300 customers.
In Q3, Equinix completed nine expansion projects in eight markets including Culpeper, Frankfurt, Houston, Melbourne, Miami, Rio de Janeiro, Singapore and two in São Paulo. The company has 30 expansion projects currently underway across 21 markets in all three regions, including seven newly announced expansions in Frankfurt, Helsinki, London, Madrid, Osaka, Seattle and Warsaw.
In Q3, more than 59% of revenues came from customers deployed across all three regions, and 85% came from customers deployed across multiple metros.
Overall for Q3, Equinix reported revenue of $1.284 billion, a 2% increase over the previous quarter. Net income amounted to $125 million, an 85% increase over the previous quarter, including $9 million of integration costs for acquisitions.
Charles Meyers, who was appointed CEO of Equinix in September, stated "I am extremely proud of our track record of success in my eight years as a member of the leadership team, and that track record continues this quarter with our 63rd quarter of consecutive revenue growth. Since 2010, we have more than quadrupled the size of our business, and we have invested $22 billion in capital to build the world's leading interconnection platform, positioning us as the trusted center of a cloud-first world. As CEO I will build on this strong foundation, and we will remain focused on extending our core sources of differentiation: superior global reach; market-leading network and cloud density; the industry's most comprehensive interconnection portfolio; scaled digital ecosystems; and an unwavering commitment to service excellence."
