Equinix polished off 2013 with a solid quarter, beating analyst EPS projections, meeting revenue expectations, and passing the $2B milestone in total revenue for the year. Forward guidance for the quarter full year was a tad more conservative than analysts had projected, but it’s still in the right ballpark. Here are their numbers in some context:
| $ in millions |
Q4/12 | Q1/13 | Q2/13 | Q3/13 | Q4/13 | Guidance |
|---|---|---|---|---|---|---|
| – Recurring | 481.7 | 495.3 | 502.5 | 517.0 | 538.1 | |
| – Non-recurring | 24.8 | 24.2 | 23.2 | 23.5 | 26.6 | |
| Revenues | 506.5 | 519.8 | 525.7 | 540.5 | 564.7 | Q1:572-576, 2014:>2380B |
| Cash COS | 159.0 | 162.8 | 169.1 | 174.8 | 174.3 | |
| Cash SG&A | 108.3 | 113.2 | 112.4 | 120.5 | 126.9 | Q1: 133-137, 2014: 530-550 |
| Adjusted EBITDA | 239.3 | 243.5 | 244.2 | 245.2 | 263.5 | Q1: 256-260, 2014: >1100B |
| Earnings Per Share | 0.68 | 0.71 | 0.58 | 0.72 | 0.88 | |
| Ongoing Capex | 43.5 | 34.0 | 40.2 | 41.0 | 68.0 | Q1: 60, 2014: 200 |
| Expansion Capex | 166.9 | 41.7 | 82.7 | 130.0 | 134.8 | Q1: 130-140, 2014: 550-560 |
In 2013 they saw a strong boost in interconnection revenues, which were up 18% and saw 14,000 new cross-connects as their ecosystem continues to gain critical mass. Among the trends Equinix sees as big opportunities going forward are the growing traction of hybrid clouds and the self-building of CDN infrastructure by some content providers (NFLX, AAPL come to mind).
Equinix also announced that BATS will be consolidating its exchange footprint deeper into Equinix’s facilities. The BATS and Direct Edge exchanges were merged as of the end of January. The Direct Edge exchanges EDGEA and EDGX will move from NY4 to NY5 in January of 2015, and the BZX and BYX and BATS Options will be moving from NJ2 to NY5 in Q2 of 2015.
The REIT plans are still in place, with the big day scheduled for January 1, 2015. There are some $37M in cash costs on tap for 2014 associated with the transformation.
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Categories: Datacenter · Financials
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