Equinix reported strong second-quarter 2024 results, highlighting significant infrastructure developments and solid operating metrics. Revenues reached $2.16 billion, marking a 2% increase over the previous quarter despite a $6 million negative foreign currency impact. Operating income surged by 20% to $436 million, driven by robust performance and a gain from the sale of a Silicon Valley asset. Net income saw a 30% rise to $301 million, translating to $3.16 per share. Adjusted EBITDA climbed 4% to $1.036 billion, with a margin of 48%. AFFO also grew by 4%, totaling $877 million, or $9.22 per share.
Looking ahead, Equinix provided optimistic annual guidance, projecting revenues between $8.692 and $8.772 billion, a 6-7% increase over the previous year. Adjusted EBITDA is expected to range from $4.066 to $4.126 billion, maintaining a 47% margin. AFFO is anticipated to be between $3.310 and $3.370 billion, an increase of 10-12%, with AFFO per share ranging from $34.67 to $35.30. This guidance accounts for foreign currency impacts and integration costs, underscoring Equinix's continued investment in expanding its digital infrastructure footprint globally.
Infrastructure Updates:
- 54 major projects in 36 markets across 24 countries, including 15 xScale projects.
- Recent entry into the Philippines with the acquisition of three data centers from Total Information Management.
- Substantial increase in global xScale portfolio demand, with notable leasing activity in Silicon Valley and Paris.
- Development of a multi-hundred-megawatt xScale campus in the Atlanta metro area.
Operating Metrics:
- Revenue: $2.16 billion, 2% increase Q/Q.
- Operating Income: $436 million, 20% increase Q/Q.
- Net Income: $301 million, 30% increase Q/Q.
- Adjusted EBITDA: $1.036 billion, 4% increase Q/Q.
- AFFO: $877 million, 4% increase Q/Q.
Future Projections:
- Full-year 2024 revenue guidance: $8.692 - $8.772 billion.
- Adjusted EBITDA guidance: $4.066 - $4.126 billion.
- AFFO guidance: $3.310 - $3.370 billion.
- AFFO per share guidance: $34.67 - $35.30.
