Equinix (EQIX) 28 Jul 222022 Q2 Earnings call transcript

Good afternoon, and welcome to the Equinix Second Quarter Earnings Conference Call. [Operator Instructions]. I would now like to turn the call over to Chip Newcom, Director of Investor Relations.

You may begin.

Good afternoon, and welcome to today's conference call.

risks I statements to today we in and started, some everyone are get nature the of will involve we would remind like that forward-looking Before uncertainties. and be making by XX, those filed vary our may April most SEC, XX-Q in statements be have from Actual February our and the release filings filed results we and significantly risks press including XX-K XX, in and XXXX recent those XXXX. may Form affected identified today's the identified with no call. assumes not to Equinix and obligation intend statements update does forward-looking on made or comment on this

In Fair guidance policy during Equinix' light public done addition, financial unless to quarter explicit in is it of Disclosure, it the on through Regulation not comment an is disclosure.

measures a Equinix on We non-GAAP uses the the conference In these a measures measures to why in will on reconciliation release page directly those of today's addition, provide the comparable GAAP at list company www.equinix.com. Investor measures most Relations and provide call. of reasons today's the we press

Meyers, time Financial CEO made remind information on Equinix data. the discussion, a this page Chief our designed IR supplemental presentation Charles post website available we like the of encourage and us most accompany With website Taylor, to on with regularly also to President; information would our Keith and Officer. to current We page Equinix' the you IR certain from are financial today for and about and other time to check you, important along have available information. We

we At I'll call follow-on to the we'll up questions questions ask these any Charles. interest the analysts wrapping over turn analysts. would to remarks, sell-side to taking In prepared our X. to call time, be like Following in the this X hour, limit of from

to welcome and afternoon, earnings Good call. second our Chip. you, quarter Thank

and with particular heels and QX, Americas product strength our strong execution, a step-up. pricing solid record resulting sustained our portfolio, bookings in momentum broad best-ever QX, outstanding we an growth and with quarterly EMEA, the had demand sales On record revenue net of and across in and

As to the of architecture working over those over transformation private and more for recent indicated X across grow. digital XX% their providers IT to we're with demand this our cloud survey, infrastructure indicating of to sustain their Today, XX% decision-makers intention their choice, the their their Equinix XX% our continues Platform intention increase polled of interconnected cloud global polled or hybrid customers progress relevance tech nearly and or on digital regions. X,XXX of trend with accelerate In journeys, as interconnection. seeing our spend or adopt

This surpassed the of peak, quarter's sizably go-forward of business indicator strength our a pipeline. bookings and the great prior the

macro with with still Despite the Our with pricing upper diversified, end of nearly increases share paired any per unrealized. benefiting of given our incremental business AFFO remains conditions, is quarter. us in XX,XXX-plus closing highly customers demand, Day the lower-than-expected largely churn, this and guide, X/X year our customer business revenue impact guidance this of resilient driving and our Analyst above

results. Turning to our

same first performance. across cycles. revenues growing growth, of broader due Interconnection expectations with a all year-over-year. EBITDA X, the These reflection of and normalized continued rates are business, clear QX countries, continue billion, XXth a of projects this York, in anticipated year-over-year, to Slide builds metros Adjusted major the of we year, market. interconnected data up our continue outpace were Warsaw India, XX Dublin, edge. first across on extend was this durability in center on XX in portfolio. quarter XX the last ahead now expansions the manifestation And business As constant revenue fast-growing best continue data quarter, for digital underway meaningfully our build line several $X.X the XX% XX% new basis. and consecutive our We depicted Chennai, our the to center services our top to XX over across and New have Customers as model currency AFFO X% scale, including Paris, growth embrace to quarter up revenues representing Equinix of of new Montreal, innovate operating metro with in strong projects economic

energy in extending our multicloud bringing a security to Wins Our X In both centers Network their in countries. metros customers. to unparalleled Platform of providers XX economy Chile global extend multiple into scale as XX our Am support their closed the aspirations. Edge Lat application global May, success their with multinational expansion America, hybrid Equinix acquisition their and and to a networking, better of in and networking Entel, global provides digital leader additional a implement included X data driving nodes and and and they to and service Equinix transformation reach technology capacity, a enterprise decade-long establishing Equinix all businesses strategic every significant multinationals rapidly has this sector cloud local customers modernize enabling their with regions a global looking embrace across and acquisition our footprint from as strategy opportunity the we Fabric, history be hybrid reach this Service Latin continues models multicloud. across and to implementing and nearly quarter and across leveraging conglomerate, infrastructure and FX, regions, advantage, accelerate

on Lima, from the to data Entel, We one our extending additional to of acquisition reach close in center QX. Peru also expect

sustainable XXXX, sustainability by future-first digital green the US and seventh the ESG EPA's believe of as to bold be are a recognized Top continue In help company, among the our REITs to to for to advance and best pleased ranked As on responsibility list Sustainalytics strategy infrastructure power have large-cap been world's it's we we XXX users. more National largest our about bring future.

projects, XXX goal and clean projects, VPPA Finland. to Once operational, to continue we Virtual in across grids these and progress renewable renewable Agreement X total to additional second prior energy. recently our Purchase capacity the regions wind projects accelerate We to X XXX% continue towards transition energy we our with all new of megawatts, will cleaner executed as Power PPA and Equinix' bring explore our combined

Turning use and the using Internet increasingly their Amsterdam business traffic incremental and quarter-over-quarter connectivity to on our and a interconnections we're deployments provide a for including our now connections customers network interconnection greater connect to saw of using enablement cloud terabits XXX,XXX an Fast notable the platform. ecosystems seeing up Fabric interconnections services In provision to win year-over-year, robust resale and London portfolio. interconnection largest win core, to continued to ecosystem. electronics cases help one for increase on company as in Fabric and than connectivity Equinix deployments, over is a are with customers our franchise, activities, QX, Fabric in cybersecurity Brazil's Equinix X% added expansion. Netherlands improved capacity total in who digital Exchange integrate digital of Zivver, driving retail of channel Equinix with including we Pivoting have Shop, X,XXX with saw inter-metro our a strengthen its across per XX diversification part peak and to its digital its XX% to as industry-leading retailers, chose second. connect

quarter partner-driven driving Equinix strong Equinix as Metal and a included performance-centric notable Metal Dell Network Edge Storage projects customers. are R&D strong in Equinix driving also services PowerStore deployments cloud Both lab, Labs, wins Protocol opportunities Edge on Metal quarter, leveraging on an customers. business Network open-source a hybrid large revenue storage, also enterprise multi-instance enterprise increasing are Network usage with pull-through significant with units had bookings see Equinix its a their Metal quarter increasingly increase to as Edge a like to support management as growth services leading more the Asia attractive and strong Fabric. solutions to of U.S. leverage decentralize data provider, Edge across opportunity the cloud this had customers centers and Service that in Virtual and to their Pure Fortinet a continue Fabric. web Equinix solutions. in We and to waste from and connect Digital

deploy durable being interconnect need transform advantages platform infrastructure into translate Our strategy digital where the simple, to their buyers unique that services come they remains sellers and to them and to our business. of enabling can together, the and

we with the strong on-ramps multicloud. and demand added X IT In across key demand businesses in now as home major London Paris following This on-ramps $XXX deployed nearly the digital making XXX on hybrid cloud Gartner quarter, and our projects year, around to global plans billion. are public world services nearly the major ambitious For investments support planning service that robust seeing the cloud on and providers And expansion technologies new service remains platform, spending cloud to lessons in pandemic. vectors providers, multiple learned reach we're will the from have customers. Equinix of these cloud

partners and XX XX for success our in We XX leasing also subsea continents. for continue Internet to meet remains first as X market-shaping more and part supporting to We of players, asset, invest traffic cloud of our they Frankfurt customer of to see high Paris offering we to productive asset had to growth megawatts also of of hyperscale making robust. xScale second partners. addition most the hybrid QX, than partnering architectures, with representing continue the the of the capacity. And our go-to-market activity hyperscalers pre-leasing our some tremendous phase in phase drive channel integral being Dublin in entire these an demand cables our alignment hyperscale rapid our between facilitate end needs Hyperscaler asset,

currently xScale now of builds the strong than leased XX% seen megawatts over more across various XXX under we've xScale demand, XX we pre-leased. is portfolio. Looking have development, across our JVs, which And with

side, systemic or view Gartner X-year X- to but transformation digital trend, a as theme. long-term not On enterprise a the continues as and also

We're logos. companies, including digital to performances infrastructure Microsoft, were across like its our strong cloud Our Equinix a Services And for health Americas bookings, and hybrid in choice. saw from pipeline and win of again, the this strength industry ecosystems. health digital-first solutions. driving of consecutive Cisco, and security particular support strength to clear more on channel activity largest into multicloud leading of journey, including creating and worldwide who their interconnecting vendor, bookings thrive, providers cloud while Momentum EMEA partners, software been strategic experience was and multicloud to APAC environment strongly Dell, for of vehicle an quarter West with transformation Platform deployed XX% Corporation, record range technology a GreenLake's EMEA also and -- the to Google wide of regions digital our together Business continued one hosting hybrid and the the to with customers. enterprise solution included Coast, our a thesis, and verticals accounting care XXXX services the quarter to have company, of and fifth proud once record robust use Orange Hertz care. program cases, bookings, our our XX% our We HPE rental of edge a regions, banking tapping Wins delivering encryption locating consistent than we to on AT&T, architecture U.S. Expansions deploy with supports and its nearly this for Partner for joint with Year services work a new financial and as named for card as payment deliver and proximate

and over for turn quarter. cover me let Now the the the Keith to call results

QX afternoon engine good best with results, attractive months. pipeline convert continues was Well, date, not doing our from if you're go-to-market healthy our The churn to into well Charles, hope bookings coupled low you to can see pricing, I best. the and record our summer quarters and with of one dynamics. Thanks, as enjoying our all to everyone.

bookings our quarter net was increasing remains straight pipeline robust. eighth In our it activity, of forward-looking fact, and

of great of quality metrics. of of global customers the momentum service the course, ecosystems operational and With we're or of and raising scale each financial reach our success our the XXXX, strong our our indications our first underlying platform business Our breadth guidance the core again highly across and a are place half on in of the delivery. of the our differentiated value offerings,

continue can varying cycles, across you to instrument experiencing our business from as performance, to perform the in today. manage ones like see we Now an we're even economic

to positioned here's all remain in feel the market, the things and While within focus, volatility well macro our we do why. address

go-forward of from continue do to mitigate to the with XX% notable partners numbers holds yet wages critical across broader customer to related with market addition strategic functions. a revenues, delivering construction, costs, in to supply sourcing diversify effective affecting and than energy consistent with And as-reported our greater teams program impact from and revenues a customers future to have the assess But budget impact of increases the we inventory design the of are financial revenues. a have we access We we've strong representing best-in-class prices. as and regards XX of of projects $XXX dampened our largely likely our the hedging to of trends the U.S., in continue million percentage outlook, statements. and coming dollar limited across expectations operating expect meaningfully top fluctuations. protecting low and On disruptions cost our number to raise other had to and has QX our has our outside X% sophisticated been greater on our delays our inflationary our by as no customer with and inflation, and customers construction platform a our than and our concentration, chain, With

quarter. let currency Now basis. on normalized and section this comments are highlights All the cover in for constant me a the

compared to As the last recurring $X FX integration cabinet. X% of year, the last reached was EBITDA, up QX and our FX MRR top million AFFO end to XX% hedges, our FX million, the was at a $XXX our included strong global range. net adjusted rates. quarter impact cabinet million above QX compared dollar and $X,XXX churn revenues fees. above to included range adjusted strong our QX QX guidance when billion, of rates EBITDA our $X due better-than-expected guidance revenues prior NRR of Global guidance guidance XX% $XXX Global to Global prior our quarter per end MRR included due $X.XXX of xScale end to to FX above a strength. impact costs. and of million top impact same X, X.X%, yield of million performance. to due our Slide mark same the a QX million performance our up new rates operating were compared depicted hedges, expectations our step-up and the operating lower QX the on when $XX revenues, in $XX net of over broad was Full range prior guidance per year or due guidance of revenues, when again over strong

our Looking forward, range. X% churn favorably MRR and X.X% at to per quarter expect end to to remain trend continue we lower the of

pricing. August. was exports. initial Mexican Silicon to footprint new performing as region slides our with then regional Peru Turning EMEA MRR are followed to normalized as forward our look whose The healthy edge through at continues well on assets Americas the to Canadian to a Chile results markets Entel and X and the XX% in global a adding with region and sell in strong great highlights, Valley we businesses Denver fastest-growing deal X%, global The and our our Lima, XX%, against platform and go-to-market well basis are expectations, The our year-over-year full by on covered Americas record bookings Americas and X. quarter had APAC performance the regions at respectively.

business, a is Our enterprise, London record strength In our EMEA this digital we're efforts XXX% across saw and activity their critical magic content uptime. "we" Paris to leadership as And cloud, of stakeholders, services Data with the channel quarter they customers' our X. MainOne Pacific put solid by Australia our to a the European and during before taking operational. robust call as broad-based to very in lockdowns increase what growing an the we quarter into of quarter. quarter Centre with address Asia led matter. shining In created activity, performance progressing of markets offering past flow deal performance, by we offset strong Their the adoption delivered our over our region with the closed verticals, business effort ended strong the our also through and infrastructure seeing The I given role to an and Association focus to funding Fitch. opportunity And looking deliver emerging well quarter, green Equinix are healthy bookings dedication remained the Ratings April the sustainability our the COVID in and at CapEx, as as debt media platform by strict a growth digital capital European by and strong their "me" across critical over We're and approximately on Singapore. ensure ahead products. refer and sizes the We're Slide our upgraded We billion, businesses quarter, BBB+, team take of assets across the increased to June, dividend our cash balanced well structure, business our please cash also active our now, tracking bond this expectations. of $X.X strength from and retail the posture. its due our region markets. the for prior our thus, very the operations support led capital to Shanghai our would our capabilities pricing and Fitch is of of of example like to integration appreciative with largely and varying as cash our us finally, had the acquisitions thank operating well, cash-generating received

which will settled when the executed during provide later million of ATM equity resale some Additionally, we year. quarter, this approximately for transactions, incremental funding $XXX

growth stated for creating take both while approach we'll as and value balanced long-term with a equity, to forward, opportunities continue Looking funding our previously, to debt shareholders. our

London, Sydney. Mexico in X including and quarter. X projects $XXX Frankfurt xScale the we City, approximately CapEx X and million, quarter, Tokyo In million. Milan $XX retail and in were expenditures Slide to Capital the a of recurring Turning opened projects for

assets our stepped development land and purchasing long-term XX% owned for Mumbai. Revenues strategy revenues, reflecting of total to and and purchased up Bogota of both developing also our from land IBXs. in We

delivered as capital on investments returns shown Our strong XX. Slide

year-over-year Chile through increased an basis. recurring the refer stabilized updated a the cash-on-cash and XXXX results closed Our XXX and our X% return XX% to on constant by in XX please for XX utilized guidance finally, anticipated slides currency which These includes XXXX summary of the collectively invested. stabilized Entel are assets PP&E note, And financial gross from generate a on revenues now assets guidance Do May. bridges. acquisition, XX%

range, a demands we revenue prior on seeing business, year, currency in Day momentum the our to the full year are the in above guidance, Relative we're constant we're increase normalized revenues the and a now to Entel XXXX, XX% reflection revenues the basis momentum the including over that $XX Chile. For digital infrastructure XX% organic to increasing of revenues based by expect Analyst $XX the our our trending on million, healthy of from our million our driving business. prior

CapEx about and constant X% and is between business. top currency to our in We and million integration is X% underlying to of incur share to Entel range given billion, X% basis. expect a $XX normalized prior from grow million acquisition immediately raising $XX expected now a of normalized AFFO to now by the $XXX guidance, XXXX. accretive recurring business, between currency constant XXXX now prior million We XXXX to on-balance above expect and $X.X $X.X on in to million sheet And of xScale basis, million $XX our costs MainOne and our and $XX increase including expected EBITDA both our our the adjusted XX% end about strength the compared We're with between including grow to billion underlying by million $XXX guide, Entel net AFFO XXXX Chile. of on spend. and per a CapEx XXXX

Charles. going to the So turn back to I'm let here. me call stop

and robust more half we Equinix a Thanks, nexus Keith. of digital an of our and XXXX, increasingly infrastructure And models. proposition both macroeconomic successful infrastructure sociopolitical first customers transform IT are distributed to and cloud-connected, giving and point and relevant revenue new In disrupt more multitrillion-dollar is demand as as as flexibility. hybrid Despite continues to emergence extend The distributed, heavily the in evolve, provider invest traditional continue to architectures broader service and as Platform their and business to in needs remains closing, our the as of continues delivery leaders growth our expand entrants a cloud that deliver IT a out they and infrastructure meaningful results. us a more pricing technology challenging distinctive transformation. value strong fueling hyperscaler business to build outstanding market, as drive had consistent Service global landscape, relationships

our vein, which strong this accelerating both expanding of our reach center to scale Jeetu We and Russo evolution that customer is Directors. platform the in and Fidelma invest pleased portfolio, data digital in In to the continue behind of seeing interest. to our Board momentum, of services and welcome Patel we're

tomorrow. evolving veteran service and and As landscape. their and And both leaders knowledge to innovate we leaders aspects deep today digital bring as contributions Cisco at infrastructure our of continue go-to-market they HPE, technology digital about of the offerings operating for of excited the we're

let it So and stop questions. up me there for open

Instructions]. [Operator

Matt Our from Bank. Deutsche comes first with question Niknam

Congrats on quarter. the

maybe first, Just bookings. on

So then course talk can XQ, Keith, you over you're whether early bit thinking quarterly mentioned about the maybe record the you backdrop. any just net X potential way. just the the the of in about turns, the you bookings, leverage seen rationale issuance talk XQ one And wondering, issuance. and EMEA trends ATM, and just little or moderation, light of quarter gross under evolved uses. and and either macro I'm how you leading a how million equity follow-up. I'm wondering you've in Americas if can for strategic about late $XXX the about with talked

and Keith hand one. the second over one for Charles. the Hey, it take Matt. It's I'll first to

trend say, continues -- be on bookings strong. no would to I line So the

to transformation. commitment folks I digital from real think we're relative seeing

of side every in we sectors, think across the across service said regions the I our the literally script. business. seeing And business our strength enterprise across that's side sector, provider virtually in that and we're as both of and

in overall going into QX fact, into that for good going it pipeline was would a the lot demand and So backdrop of feel I is continue to about than you stronger got QX. really visibility business. tell the forward our moderation, We've very no

haven't And pulled you Matt, basis and done we've ATM, probably in our first is, the it heard of on responding second that we as relates the forward so foremost remarks, a to to sort question, using as prepared I the build. in equity we're a of is, down the part one things continue is we yet. to And think disruption marketplace. that the to of lot it know going of And there's look,

As we announced the and product added XX you projects this underway. projects we closing heard, We're new new to these -- XX we're have continue We acquisitions, to XX quarter. fund on dividends. going

of we to we make there think we need, our plans, sure about balance but the through the next year, balance end was recognize this want a bring the year lot rest in also to As the capital of not volatility to marketplace. only we through but market, what that

in timing liquidity number share at a quarter. the add sale of we you basically the forward we $XXX our that transactions of a the overall good a through very so felt it business. to just And over as selective a to was position And thing We're did appreciate. can

of Let also, me say thing. one last just just sort

the investments substantial. that be certainly you prepared going to in in what back also what our has and assets As we're the continue substantial spoken making is and said in Charles business recognize to is but the remarks, the momentum Charles business our you has just of, in momentum step -- and what our we

these to sure want liquidity that make we result, uncertainty. have of a great periods As in we sufficient

well liquidity decision, if as so we're an our our at raising that of don't cash course, so time using so presents our a when that opportunity structures worry itself. be And have debt you can will position equity. next augment going about some And what can as to the sheet, do we we you is on is at capital using looking to appreciate, appropriate, to balance which

decisions. for So at time, again, it's balance in having future our about same prudent, the creating liquidity supporting ratings sheet the balance, more being and

Our is Aryeh next Markets. BMO with question Klein from Capital

was growth revenue in best Same-store the been a it's while.

talk got outside quarter, then point benefit strategy you energy. the I can think, you pricing last of prices. you It basis mentioned still you energy? that XX Is from case? are the increasing And a sounds like about

So to historically? above see received can X% you've and beyond increases the that X% we

actually Yes. Thanks, to is it's wind in less in that probably a much number Aryeh. terms same-store, at of back terms how The that. than that. quarter contributions yes, that of And tremendous the little any on of energy,

So really quarter overall. strong

So I XX believe that that million it I with was, bps say, associated want was to $X.X energy. in

So would $X really, without -- million I even we but still see that. north think of

And there result and about like really good and our so previously continue sort great good forward. -- guided deliver a in that a feeling of feel can we to going range

we align and hedging levels other can of about the pricing In strategy, hedging not is impacts degrees to at our continue absolutely. power several our we and the and that that in are to strategy. in terms markets up strategy pass to recover pricing of us of the of One increases that sort to forms. where occurring number business. holistically can about through on but -- of confidence sort and sure is we that, high We're And and depth of the those about sort only that the of execution. broader pricing looking strategy, There mitigate we've that have -- will I've power, talked talked with fully this a that's ability combination making to allow in our

you -- list increase because through, of already have if tends the through, will, on it's rolls through to when roll and it's that and space pricing Second a things interconnection. dynamic, in is a power, interconnection broader the is impact perhaps just more rolling actually on And just interconnection little in a way terms business. slightly faster

we're escalators list as reset escalators, raising are more And current of then and think the at for you think to prices appropriate we there. levels and environment will know, we begin that market. So dynamics I the

prepared not And said as looking of I pricing really we're I fueled unit impacts remarks, our and what sort in start escalators, in is -- being that with terms price unrealized. fueled -- Meaning new really see are guide the 'XX. new we'll already roll in to at being terms saw of new certainly, how contracts list we I volumes, by firm in strength of that pricing, priced are pricing, so you pricing. It through that in impacts and at by really said today that's is positive and largely think really pricing in levels those yet to the but

up, is reevaluate it. companies I start there their expansion data at center prices to follow Got force can If objectives and just point to higher whatnot? around the which

is very our Europe how a of we quite years, couple the if inelastic. it's churn a Obviously, you that would business saw or sort at empirically, ask implication we tell demonstrate look and tremendous what Yes, of and you that is I in the our of evidence demand question our little activity would And in constantly is inelastic a is interconnection pricing the fact, elastic demand elasticity that highly a great answer. question. and over flow-through on last perspective. from

is, is impact dynamic their overall on of that their digital much key in -- investment. is of would the a And hard And sort where pricing in overall how people infrastructure are point And and so we've spend reality getting overall in looked then significant value that the a tied in in up in of their -- nexus there. limited strategy. Equinix thing has relatively as the -- adjustment of for I terms other they're of at kind

of long-term value think we're to points want architectures. a central can to make so compel going we value. to that and still We part do Equinix absolutely deliver -- higher deliver that And at their the people we price is superior

And question David of Bank from with our next Barden America. is

One Is the of a going is, X to going I as budgets fail problems. we've biggest companies, We saw pressure the said back data going kind is on could questions. their I two obviously second that and centers need the recession? thesis is, IPOs for some really saw come kind relates that seen, we guess of smaller well-regarded, guess, with through recession back Keith. in data higher-level get. investor as maybe not I of actually a have lot great. to consolidated question, pull given businesses. hasn't start Charles, investor big will that end second, a companies, the their the center a the in short-selling XXXX, one data obvious legacy up And possibility questions that up it's they're second the that And create are business? these for And of if to that's I centers. 'XX. have all to businesses customers, maybe lived of data we two businesses there's that data base the this One center with competing center a you, is on data And ask center the returns cannibalize to for it

to the questions. guys know those you I So answers know

kind now. So of I would love to thinking are hear out and of just guys those what kind air you

second answer Sure. start, probably and one, not in addition. of chance resist to David, be I'll to I'll the some able the

to over it hand I'll but -- then Keith. and -- So

represent demand and potential As for said, waning backdrop might impact startups I relative particular, to we're question the weaknesses digital either types to seeing transformation. as now, that to or the recession and no demand in in investment business and of failures, exposure those around broader of failures that, companies, people's in on right

a forward Or environment, that sector. to and afford virtually that seeing try I every IT many line, they that architecture. would that either they're using fuel believe they a you're competitive costs and therefore in. them don't fact, infrastructure hybrid driver are using advantage as can and think to multicloud they to fundamental that of with argue, by In their reduce I in as in footprint top greater potential I look to and their modernizing not moving agility invest to think their IT And to of recessionary

You in suffer and of at for afford a sector their to of impact terms show for the decision-making boy, prepared and consumer recession wallet are digital. would that. spend could look not up that's not around a can't future. commitment simply retail, are classic people saying, They clearly we from seeing that their Well, oh, digital to example that be example, retail

sting, strength elements and could some And say the Same services, we to various of yet feel continue financial said so which see and that of be sector. in people invest. they could for banking real

And we that it different that seems durable that's you think of in are just is. business. quarter, of a demand so strength I And give our set demonstrating every a that just reflection sectors how profile

we're eye appropriate but in But And and that lead believe quota-bearing us we're to going continues given keeping a on that. would it, level going that heads we're be environments as And well the the to put in frankly, so demand more business. prudent on strong. carefully. close street, we're recessionary it our previous experience the behind to to pipeline of as seeing We're be the watch demand and investing current

they And our they exposure often limited. start to infrastructures. cloud. Startups startups, to as hybrid is honestly, scale, As only relatively move in

And meaningful of as so or there. contributor to exposure a kind seen business sort in have not those we pullback see the we lot failures business. any don't of of And

perspective. our their in it that thesis, of an position in On short and our that as represents as the of is terms the them script the And the in said and is that in as -- contributions you part our of data we the said architecture are do channel going how large go-to-market that questions with a private amongst an sometimes -- selling to Those are proximate their multimillion, multicloud are those perform. as from in we're implementing to. going they're place they how the players want answers to cloud. going what we're infrastructure answer Those to are think thesis, both et productive underlying various key it's we various relative they're ways, just nodes, players and the terms of as that of providing. alignment center relationship our to multihundred, I hyperscalers, network a the significant, cetera, partners on-ramps, well contracts to are I to with the customers with which would think million-dollar they're I answers understanding tell because most fact, market to providing that underdeveloped that Because I

hyperscalers, And so the that zero-sum not of sort just is the that a of feel like accurate between and notion an is marketplace. this us, view I that of this we sort us a think, game think to I continue of

That cash-on-cash this returns very, of those, growing we you. than our story and our at quarter. X%, on at the yes, would a give -- what is the on return broader is at any industry the say, so different different returns, then other same-store XX% very I basis. dramatically look can Look And a player in and virtually sales demonstrated which business again, is

couldn't add question please to But resist stealing Keith. So that Keith, cents. from I feel your two free

David, we couple our I points accurate. relationships. I the But all other think, important I a of think maybe appreciate the could add Charles very thing manage our that is very decisioning investors hyperscale wise in for, what on is to to very is just said, were how which to

talked inside that We set of aggregation And inside have as size, the the structure, we the piece that we business have and business business. and momentum Charles gateways, knows xScale network their scale our that are then is to retail in that substantial the is business on-ramps, we're to xScale a retail as alluded the business business. the given up But sits core running things to And critical regional as well, humming is instead not infrastructure. again, the our just the about, which do chose a always seeing. and there's very

have all say. are We're leased, I XX% inventory, roughly the but not across XX only building have underway. or built should We builds that utilized are we

puts equity that investments. in a on we position. only good so an to isolate us in exposure that Also, have And those it, effectively to very basis XX%

note do think other could locations testament I to cheaper think do in yield. then part, these they're hyperscalers, faster The and they it I self-build it's teams. design others And of I of really global looking is to themselves. for with that can they're than thing our appreciate. think, it is deals to these the important price other alternatives to and important than done, -- is because last to And a quality lot construction A are we

at of the again, think price about and it's billion, at and yield, hyperscale we going as important last for the X% and AFFO. top I represent with I the revenues a associated so up. assuming on They're X% us maturity, our in Analyst a only terms. of X% based nature, they're our spend prices a aren't really that result, to down, to your maturity, a likelihood, price said will model, the line X% Day of yield And the represent plus to $X cost as And aspect to year, full longer-term contracting going

to that our is under when that business, not performance to resilient feel only we of you also so it's these strategy price resilient, overall And contract but you very deploy the yield arrangements. the to

to was Well, be xScale. of last to clear, and percentage just statement that in terms relative the

world business on very alignment that a than in growing of with of facilities do role xScale that. infrastructure a broader terms the a and what play inside in business around nicely them they and just with retail of billion-plus go-to-market Our because critical hyperscale larger outside $X our because is meaningfully we our rate relationship It's perspective. run of

Citi. Michael comes Rollins Our question with from next

couple if I questions, A of could.

First, just power. on

just you coming regions and/or growth the of issues, of couple equation? little be is give strength more additional you've can should in switching give in can -- guidance investors you're how availability. where could details of just from the quarters. a markets relative verticals? Where seeing not Europe And power bit supply seen the but as gears of over and what risk the terms then power that annual detail cost the And you other in evolution of change revenue organic the terms of If of to over frame some the in there guidance, last side the in also

Thanks, created add uncertainty particular the on a with focus and here. globally, war Again, I'll by energy overall tuned-in the start, situation in Yes, the obviously, Ukraine. given Europe, can to Mike. Keith super on we're

And not which we're cost question, a so just but certainly tuned -- it's into, and also right, availability. you're

have although supply the different Europe. power ability But and around new minds. in Nord evident confident So little bit on some me there's that strategy to and degree natural and that relative countries trade-offs that's continue to pass you be of world, well and already. of that bit. up to Not acute little certain cost get are be tackle It hedging X on we to how And we tell our going made lot let a And them in some And level around we customers. we at this that in me advanced kind people's implications in our really will maintain know clearly one, minimize through there. will both power kind why is. of relates need and Stream There's ability, on gas, that's the of is issue. feel more continue I a let of particularly question levels add availability think really done. And don't looking to to to we and situation. allocated, 'XX confidence availability to services in where to clearly we then to to the be in a of executionally a customers. our that and the high more overall question how And we our we both there, to really of risk The availability our to -- contractually different the is are a for many pricing, will potential the issues want feel markets that our

levels. in about it And of think kind so we X

amount would a for Nordics, is grid if It is just gas which -- our question First roundabout that, gas, almost in Portugal. with Turkey of are than gas. only you there's constrained some associated there factor XX% a primarily that's much portfolio. really to that electricity from natural Netherlands, potentially two, will across substantially ranges to shortfalls And of, degree, in generally is XX% in the second-level to speaking, the natural potential electricity of the -- particularly on ability EMEA case, X it supply. markets deliver one how of it, supply. Then what that and X, I its though, factor sort gas-powered, call is the is in the for tell in fraction it how and gas-powered; to Russian of on source generation is risk is at exposed particularly and or dependency a the U.K., And underlying around Turkey And the the to, be Netherlands it of of is the as in more gas, required. a terms relates Russian grid have dependent, that of a Russian

the it's risk product very really candidly, X things. composite is of So like And -- those we the composite feel really is the manageable.

So its that's really the to ability short by electricity grid of fall first deliver. is and level, impacted will things these the be

some facilities the of confident the of have our to countries that the how that sort these and of at deep The very will of -- candidly, the a we for of understanding those regulators designations facilities with Internet, are and we have to occurring, think -- second-level of proper question these large. on that functioning are is, And critical local economy criticality our that has will that they governments -- we it reason. regulators if occur, think that think that what in chance which inherent society we those infrastructure local were level, do and we that And to power we're deal allocations. and

and allocations have get intermittency And all electric data of were we so in And our last within of any even have supply. we for the resilience that folks facilities in to of if continuity fall centers, focus accordingly. question going for to or down, interruption of Equinix be feel the the is we're that to level to that confident appropriate continue key then area those a the event

our exceptional And and of availability designed think, like record on of degrees frankly, to very of testament known a through or our so even to manage are grid professionalism is availability the with is redundancy. intermittent really And circumstances that to high our extended adverse and facilities track our I strong. in interruption And preparedness periods ability team. delivering well even

a of is imagine, -- a costs we've all around potential to you and as in very discussion it's lot, energy we one significant -- is feel, terms while and in us. less and situation that's been is we topic So it a feel well-positioned of rising that but availability, ideal And it might all, focus than risk for manage.

we're a question, revenue just And getting Any during topic the of to follow-up. earnings is call? discussion which before on Singapore, one while XQ power, update other on larger maybe the just the

it's kind to what update. in Singapore, we're Sure. itself Quick resolve terms going we you one, Mike. into We No in expected. we real much And exposure of pretty had XXXX. eating, that coming -- will, will relative of if again, think, as

has going but believe can It And impact from so that perspective no business this some 'XX. our we real year, margin resolve level a of we update. on into that

then verticals relative And you've the regions increased your as of revenue currency constant strength and growth just guidance. organic

you quick our add two Look, cents diverse have regions performing -- Now are right? that terms strong. Keith to a and it. in from Yes. of be case. quarter I'll our super great APAC was to business grower, Absolutely well. expect Europe. performance our then saw I continues give it's on the be is of Americas all fastest -- to And you and that

really nature and then the nexus at IT continue We're as to I think to their seeing I strength there. the to in strong point our it deliver really are And Equinix, that required strength seeing point going or But service we're of doing this of think this is of Asia that allow the business. enterprise the digital again, supply ramping side, on amazing business infrastructure. across services in Europe, transformation nexus meaning their all performance these house seeing lead providers both Equinix ecosystem -- they're for dynamics to sectors. overall at really -- that hybrid and buyer really seeing to of

And add regions do across to so there? the answer you seeing it and Keith, sectors. short what across we're is want

Mike, initiated points we and basis, of we telegraphed that you a XX overall basis roughly -- increases points comments. of sort basis adding And look constant to the out And are acquisitions XX% can of our taking part and of just points of couple so year. maybe sort that power a on Analyst When business XX that above at beginning said the Yes. to XX% of normalized growth, we roughly guide XX% Charles' power XX%. Day currency is price growth, normalized, at to grow the the by

the phenomenally performing is core U.S., at just the you markets and the It the And is the momentum. we're XX%. it's gives across sense specifically, you the well in a business of that that see well. So can fueling the just Americas growing it's performing exceedingly And business and verticals XX%, basically capacity.

them building see major You in I total, can projects. we countries. projects new projects XX There's markets, but XX -- XX also major that underway, a XX underway, much XX -- number than of and we're in XX more projects there's think, call projects

the is building majority across the base. we're portfolio. a everybody, from as percent bookings our to coming the from reminder growth So installed installed our base. XX-plus And comes of of that just

phenomenal made, a -- just last And future, a that the model. the X.X:X. concentration been Again, which decrease is despite has things that's all Charles actions, this quarter a strong. we'll seeing notwithstanding that pricing so price I the decrease, net we of see increase. that's comments of pricing is those And the our -- relationship are the fact another we're that in positive don't but say -- but increase would the and aspect of price quarter was the to thing our dispersion then just And business

for $X of of saw $X.X every So decrease, increase. we

momentum a then adding our overall sense clip, and And fact our performing the high that in you digital the hide you from gives that's at a of it can't the to business. very -- away they're So services, business. and

things it's you momentum that a of these positive So combination are in the giving all revenues.

question from next RBC Capital Markets. our Jon with is Atkin And

kind the then pricing around around and influences crystallize the items and business, as you AFFO around of you of maybe flesh out we how model rest per see kind the and talked headwinds other this any year. and you next think year maybe and tailwinds how you trend of churn or a a of that maybe strong out or So about share lot of the can to I into demand costs, power increases. want impact about wonder net margins to G&A if call other year next few

story. business. of Sure. do continues Yes. be I lot in think mean obviously levers a I churn think there's a generally news to the I good

with to I modeling years. -- I of over forecast churn of churn, we have a understanding, so the pretty on being manage basis. we really great in think dramatically have think think sophistication And able we our effectively our I has precision, and -- quarter-to-quarter seeing virtually level we're sort improved --

a And positive continued so that's I what's been actually record we net and contributing of of think to see bookings as part the story, that sort levels.

think us for G&A area in of continued is the business. I opportunity an

I prudent environment, that we that some that. simplification the where to and over of the of think at think example, given adding drive for us business. said target driving relates time critical will automation of think this long-term our then continue And in give already quota-bearing of appropriate adding I do investing that hope in we're strong but as absolutely of being some we're towards for that, reins that's is investing the only terms backdrop, also the the to we're pulling it we look feel I G&A. kind back, We very to we we're demand business into really seeing think market And XX%. and we're and in the in that's as that heads efficiencies hiring, I in looking what progression

on utility I the hedging year. of of rise, do Singapore that on our fairly will this that. there next We recover even that, that there focus driving bit that is year. X some I from margin percentage think then -- that calorie and And really utilities other a more I focus as are situation the headwinds, be think think strategy per situation was probably think that's right? what flow-through top standpoint, increases some line do us broader our But margins And going as think seeing continue unique though the probably what going side going -- to I and affect basis. to a resolve you're then are prices I pricing we're think to to allow and guide, increases and that on. think The we to share. it, will AFFO the part But I really is on our of the in are getting to our a that's

year. second And about of a Jon, you let the comments well. half me to Charles' of as the comments, Again, just add asked couple

QX revenues it's -- realize, to one, some had think important I in xScale we nonrecurring it. number

so nonrecurring them -- And that think And quarter, about then should million $XX about up see are going quarter-over-quarter. next step revenues our go in to you back down QX.

that's that's one So thing happening.

very making that, basis per an in investment about is on a but at thing driving business. as committing to decisions time can about the Second share as making we're and the investing hard the committing the on being deliberate the top to value in We're line, same we still business.

T&E, year, the our year. our through spent, lease well half adjustments that's then we're development getting of the engine Kong So costs, of went in out leases. that we the second that's half Charles customers go-to-market working in There's because coming investing heads. second And to the year well post-COVID together, of $XX of million, the another related think first another weren't half as some that Hong $XX the as money some million front a in teams $XX environment. alluded of There's in to -- the the going costs quota-bearing of of million

we you're but outside last thing will residing ourselves I momentum set is I of note. And going absent think some good continue in to guide, revenues the the making overall, So to But guide investments with see currency, XXXX. impact the we're the up to Look, an The would say U.S., time. a to business. to us. for over that important implications really the period it XX% revert has our that, know of of is of deliberately

here things and other by interest look When start weakness goes to you're U.S. And recover expect -- strategies. inflation, -- just the the to million implications -- it all to stave revenues, we're we the the AFFO placing But doing absent of reported it that at that you We're our -- hedging we token, our our similar revenue the million. what $XXX that in putting $XX just the off is when going non-U.S. you so give and million, we see our because us currencies. rates, bets us EBITDA for we're and their we to type of on the is million is to would levels, back traditional is on do making visibility. to same quarter is the And what try where value. $XX to forward-looking predictability this more doing increase hit in markets $XXX

just year's being just We're You better because alone. And $X.XX is performance. quarter of by that had FX. $X.XX business most guidance the by recovered of impacting this

matters. And things of certainly so guide time these spend to continue we and you XXXX the we'll that talk a QX, on there's about number as on with in QX February in

had pricing slightly market? are line That's different with you you a trend? xScale strong Or seeing the a helpful. leasing in Are quarter. very

one we've I a as xScale it's that, in narrower I tends be probably think mean Yes. pricing. to said, where band

given by supply/demand And it -- substantially really characteristics so dictated more -- in I is and think, market. any pricing,

I band. is those I it fantastic I narrower a more xScale, price offering prices to customers. say -- a feel our And and to deliver But would it's market -- in great that we going about would so to ability say think,

Louthan from James. our with And next Frank question Raymond is

many in sort are how most the logos you quarter? what new How the quarters? seeing strength And particular, few you has did verticals in sign trending of the last with? And that been in

there's in overall, look, logos roughly XXX the quarter. Well, new

board. and the seeing have lot I XXX. or all think the you transformation, anyway, we're there's look from from portfolio. services. We And progress growth IT comments. -- Equinix. as cloud, of either it -- comes companies it are as it their within won across and you look, base, installed start back that Charles' digital It's of about we across have to or -- perspective, that I goes to it so exact is it with as at, the digital lead our opportunity we media, And -- we Is anything of to the a seeing an content sort said, number to the actually everything have understand. we're paths -- really we sort pipeline. And and our But talked not

growth one say the have comments in sort of pinpoint call my so we to in because sort our And opportunity these markets market. we're if to markets sell the that if our ability prepared And there. I we secondary majors And will, the that It emerging quarter tremendous the do the of thing Europe, a would have capacity, us. we again, more. seeing $XXX of one in we for was, where hard million you it's the, markets, emerging majors, are or what high-performing out to was, of

So this it's in geographic our pipeline perspective, seeing over activity us we've those had growth a a that last we're about from and make this saw really combination both what past row all line. very, net but the in -- we past the really of and bookings perspective. quarter, from a across feel quarters it's the very from our amount in X vertical right board, then certainly And a customer the of perspective good

And momentum, about was one. tells quarter fantastic. quarter this wasn't the it the you Last and charts, so off

was quarter fantastic. This than better

One, that color a Yes. of you channel lost the gets in pieces -- at that I is the through partners. band say, X we're number a logos, add of more bit thing one in that I would it's And come look customers new -- nonfinancial us think to around I would if tight the but on Frank. metrics, relatively that.

that in those don't that And partner. up booked show channel because the actually we so through

variety of to of that whatever, that particularly or on of be or key those ours AT&T I some we're to table. or some where whether in so masks, that of of the we an see, around Telstra are the customers world, a partners our momentum the partners really bringing think, like And an a the types enterprise broader market, Orange relying

our continuing we the think is to would good I then thing I lost what success an that's strength significantly. other of something sort STAR that's I to think focused momentum these really of kind the that refer given Global as say so companies but with targets, we're add there, XXXX-type and And channel, of And our that's the on, area, there.

I additions multinationals then the complex there, side. just that large, providers, of service and is had we're the Global really fantastic helping everything Service. a side, as enterprise are virtually their In of them service every number because becoming job journey a going them fact, on global on And enterprise those lot quarter. provider and we doing a on the team through think think a this helping of is And XXXX strategies

side And well. real some on seeing as think I that so we're strength

This our Thank concludes you. call. QX conference

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