Equinix (EQIX) 15 Feb 232022 Q4 Earnings call transcript

Good afternoon, and welcome to the Equinix Fourth Quarter Earnings Conference Call. All lines will be able to listen only until we open for questions. Also, today's conference is being recorded. If anyone has objection, please disconnect at this time.

I'd now like to turn the call over to Chip Newcom, Director of Investor Relations.

begin. may You

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

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

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

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

like current you on page about time to to remind We with information accompany also for page a the other you encourage have certain and important of discussion that IR website post information. Equinix supplemental the made to check the available regularly presentation from on We'd and most IR data. along website we our designed to the available financial our time information

and Officer. are Charles Meyers, President; Keith Chief Taylor, Financial today With Equinix' CEO us and

of follow-on In call taking sell-side to analysts. wrapping in any one. hour, limit these analysts remarks, questions we'll an questions be the Following ask our we this prepared to up from interest

At this over turn the to I'll time, call Charles.

demand best to to and bookings regions. Good delivering one Chip. you, everybody, great the finish across earnings of Americas afternoon, trends our all by with favorable history, XXXX, had led We quarter strength a pricing our the three welcome and performances in fourth in Thank call. continued

For growth, continuous the for $X revenue XX per full and the consecutive an years of year, expectations. we more the in all long-term completed billion share amazing revenue our while quarter driving top of first of than above growth, XXth performance end AFFO our time delivered

organizations ahead, faster As digital even on of increasingly XXXX, spending and to than amidst Xx global dynamic In by estimates strong. year transformation broader complex we the grow landscape, that economy. the a look IDC the will secular remain clear it's technology digital tailwinds

environment, for In we digital transformation the current macroeconomic will believe reasons. simple robust spending on two remain

as incremental differentiation, companies competitive dollar, harder as enabling accelerating a digital product driver and set work revenue each evolution. critical time for of market seen to is First,

enabling means a to more and and is digital serving increasingly reduce with more second, responsive transformation simultaneously less, becoming operating drive costs And their businesses agile do to customers. leverage in while

more is and because In in infrastructure that to the secular more fundamental their Equinix leaders we customers' and confident digital of positioned to lower more the it Platform remain costs. marketplace more uniquely differentiate is ecosystem-powered, to flexible Digital demanding distributed, are context environment, support is their interconnected needs. demand that ability this our infrastructure

all world-class to value comprehensive Our digital reach, to launch experiences to interconnection speed with market-leading scale enhance and their vibrant agility, digital global and of stakeholders. allow customers ecosystems platform deliver our services,

and investing strong, center expanding data to and environment our monitor we're business industry-leading adapt While product the behind fundamentals remain we we're our and execution closely evolving continue seeing, including we'll our momentum quota-bearing portfolio. the the accordingly, adding will our heads, of macro set

them on the January costs our continue in Effective the costs X, Equinix for pricing, but of predictability our impact good the with increasing additional our broader cases, and and create power, budget to competitors most and, to relative coming full hedging with rates where in and business. remain passing for efforts below giving in customers these a position certainty and pleased prevailing customers, year. market, needed we to we regards With to customers I'm spot much the our multiyear and customers we power leaving visibility landed our raised believe market. we our Overall,

and basis. results, XX% the for X, $X.X year-over-year. as on up Turning Adjusted revenues all X% to share our EBITDA XX% billion, rates up are year-over-year. grew a year and These constant depicted year-over-year were currency Slide AFFO full per was growth on normalized

demand scale largest extend development and center its strong services utilization, history. attractive evidenced highly pipeline continues returns data on we opportunity to as the given reach. our high in deliver And portfolio and by Our to capital, continued see

We XX in major across of XX xScale XX countries, nine XX,XXX xScale projects including megawatts representing currently have metros projects XX over of retail underway cabinets and over capacity.

our projects center both first builds Malaysia. Seoul in and and this Johor, new and Africa Johannesburg, New Istanbul, include quarter South Tokyo, builds data in

Our current one new And new the in Asia markets global requested our footprint entering most Johor of customers. largest our our Africa, the represents nation most Johannesburg the and in in our on developed in IBX augments IBX continent. digitally Pacific entry by into

metros nearly new XX to our platform will three of strength and Equinix footprint regions. remains And coming XX manifestation XX% interconnected metros all of span revenue continues in from customers of The digital X/X these nearly from operating unparalleled the best with the and customers multiple edge. operating our countries. global coming builds, shine, in our with global

by strategic support multi-market new and quarter a and services provider leading scaling Key extending demand. coverage included and cloud all the across globally to growing in leading of meet regions; the three this CDN hospitality performance and finding one wins markets companies, edge at world's gains deploying

be transformation And wave deployments. nexus estimates multi-cloud IDC than point that XXX the cloud-native logical digital XXXX. by Equinix of for applications customers hybrid will more million as this continues, see developed as and globally

all with the it Platform clouds. metro five other data in the enabled No with than This making quarter, operator center of metro one providers. on-ramps, on leading cloud from cloud new XXth Mumbai, Equinix we won all more has on-ramps cloud four one including five native

approximately continue see our overall forward strong of X and we two leasing demand, across our xScale assets pipeline. Osaka our capacity in to business, expansions Tokyo XX In meaningful with megawatts

Enterprise in wins to deploying Azure; and this choosing for and the payments cloud leveraging a their technology AWS closer include virtualized offerings. its global service a to industry, paints and leading the capabilities Equinix networks cloud company place and infrastructure coatings company quarter corporate customer on-ramp and

XXX,XXX interconnection for platform. on franchise now our interconnections We quarter industry-leading with outpacing the well continues on constant basis, total over XX% currency business. year-over-year perform the Our and growing a broader normalized to revenues have

incremental and than lower slower run bandwidth historical added due elevated an activity. QX, organic consolidations X,XXX on fabric rate gross In customer slightly interconnections, BCs grooming some higher we adds, into our seasonally to

move Fabric for products. now is to saw Fabric speed. growth digital continue of a Attach the at continued with one operating their customers $XXX at our infrastructure fastest-growing Equinix run connecting benefits realizing rates million XX% and revenue of higher software rate, of

peak continued exchange the Internet quarter-over-quarter second, footprint driven than X% to on Equinix. jump the traffic streaming of and world's World and importance greater year-over-year XX% by reflecting largest having XX demand Cup strategic Internet exchange saw FIFA Platform terabits per

implementing the for included the digital to directly Asia-Japan quarter Seoul this to ensure for supply. interconnection Equinix water SJCX, which largest Netherlands, Fabric in the connect will and establishing Key largest a year, Cable, of ready authority one ecosystems clean service securely conglomerates, Southeast infrastructure in distributed interconnection to and wins be Korea's this water and

their their wins Turning services attractive to systems support our data using localized quarter movement public this digital pull-through own for Digital Equinix; leading and online Equinix momentum a plus services approach Belgian saw Edge, and Network with to continued Metal efficient, Metal financial insurance Fabric. reliable company fast, cloud driving service portfolio, evolving advertising. we Metal provider services and to a to internal from at a center data advertising included Equinix

accounting Cisco, consecutive for with AT&T, of delivered nearly multi-cloud wide Microsoft. program of bookings were XX% range cases the verticals and logos. channel first-use industry nearly choice. and continued seventh from and Avant, new as our clear saw XX% strength digital its a like HPE hybrid partners of architecture And across quarter, We Wins of record

Key of Network leveraging site and delays chain partnership platforms. client a continuity wins services operations critical Metal, a IT to ensure in Edge included time-sensitive and supply Fabric combination Dell, and Options for while critical interconnecting and migration financial of overcome multinational trading a Equinix banking delivering with to

call turn to and me results quarter. let over the the the Keith So from cover

which you, in included and finishing Thank a each Charles, the to pricing, uplift had To healthy of start, demand pipeline. we and everyone. good regions to a nice afternoon cabinet strong solid QX our a bookings, forward-looking in per MRR with end great year,

and and than MRR, diversity single X% continues more than X,XXX customers highlighting conditions. to shifting over tremendous XXXX, our scale, the despite reach XX,XXX represents volatile across engine closed customer go-to-market and macro our produce of more that We deals of no in

the dollar FX relative a tailwind, exchange shifted for the from rates Given although which FX still XXXX. U.S. XXXX positive, weaker meaningful has rates, our below guidance remain to a average headwind prior rates is to

challenges about and and we very business broader economy, sustainability remain remain do to to and industry-leading power strategic future-first we're the program. and scale positioned vigilant across to well our our and demand due to key procurement in management the while And grow the treasury continue optimistic we our and drivers risk efforts feel sourcing,

of Equinix of constituting with diversity revenues recurring our is of majority come companies benefiting $XXX the and XX% us, mix our has customers' generating XX% Also, annual businesses our million recurring than centers, or in revenues customers making infrastructure large deployed or greater established our come revenues in the from a digital a more in needs. of quarter more more And vendor core for three revenues. customers our than data from

low this us environment. with excellent operationally market Equinix strong strategically health allowing remains financial to flexible net leverage, be and in both positions, liquidity current in

Now and programmatic insights last our our customers efforts we our approach our rising the managing against to multiyear costs, costs as efforts. power our efforts larger to protect fall, to ourselves part our customer while enhance initiated through into hedging customers continuing providing of communications

the we region in At our XXXX, of EMEA recover rising primarily costs. prices power these raised to the start

inflated of our markets for power volatile, many meaningfully of energy the impact customers. approach While our remain costs hedging dampened the

expected these generate basis growth in and will the by And expect increases approximately revenue XXXX. price our result, XXX are approximately increases We million power of increase to as cumulative costs revenues $XXX points. power price incremental a

AFFO expected, efforts on Now but dollar adjusted despite adjusted and a negatively basis, EBITDA our as protected the cost have impacted year. our for EBITDA management margins these our increases, both have

be our energy our profit future which yet-to-be-determined at We over transitory expect to reverse margins and these gross adjusted return and our targeted period, EBITDA expected levels. time both should will course higher costs to and

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

range guidance global up revenues our $X.XXX recurring largely X, last quarter above led strong on QX same FX-neutral Slide on basis, were an the midpoint to the depicted the revenues Americas billion, As due over XX% by year, of region.

We continue in enjoy actions quarter. net pricing the positive to

ratio And dollar price in similar outpaced to to decreases revenues, price FX U.S. our to an the $X rates quarter, quarter. of a prior compared million QX guidance net when weaker of X:X. hedges, tailwind prior by the due included our increases

significant largely As forward, we recurring significant we performance to bookings net increases. look and a step-up due revenues, in power price strong QX expect

revenues, or due due $XXX rates EBITDA, seasonally our million, Global $XX compared integration FX $X was operating at when recurring guidance X% QX an benefit our and hedges of million FX strong FX QX XX% and of our guidance operating to to million compared net rates. range $X performance, expectations a of last including CapEx included higher AFFO our to included million prior prior adjusted guidance when Global year, quarter the top benefit costs. adjusted EBITDA over above the our same was to QX of $XXX end million strong performance. up

whereby X.X%, customer Global churn right a asset. application QX execution, the the sales right the of MRR into with we disciplined right put was derivative

expected MRR quarterly year, than at the of average the For MRR churn end better the with churn range. low our guidance was

MRR quarter XXXX, As we forward targeted look per range. X% into expect X.X% remain to our churn we to comfortably within

at on and a at full through Americas Americas APAC whose EMEA the pricing broad-based, region in favorable in have the and on covered normalized had fastest Slides of basis followed our revenue-growing Chile quarter to performed regions highlights, continued York, and by the another region XX%, New The remains year-over-year X%, and we assets D.C. results led regional region metros. was X planned. Turning XX% Toronto bookings, our respectively. are strong The and strength by better gross lower churn acquired and than the MRR Antel Peru Washington, X. trends

already XX Our new Johor well continued our seeing delivered EMEA strong and customer region inter- Jakarta and a retail trends healthy logos with an XXXX, quarter interest pricing we're and record in mix as attractive sites. as for

please to Slide looking X. structure, And refer capital now at the

$X.X to cash greater increased balance sheet billion, unrestricted including an balance of than $XX slightly Our billion.

CapEx our significant estate purchases As real cash dividend. quarterly quarter-over-quarter balance increase due the to growth expected, planned our and in decreased cash and

I take and balanced said to we to favorable. conditions plan accessing opportunistic are capital markets a the previously, approach when

share to an XX fund $XXX happy cost Japanese yen private a the equivalent with we're an than years such, of and average transaction we that U.S. priced As greater of blended recently This is placement, dollar debt million expected of attractive X.X%. duration approximately to borrow raising QX. to in a

meet transactions, ongoing some readily sale $XXX for forma settled. Pro liquidity providing incremental remain QX, million to $X needs. executed our forward of available have equity in well billion We funding transactions ATM also cash these and of funded when very we nearly

quarter, CapEx projects approximately xScale capital In opened quarter, six Paulo Osaka. Angeles, Los million. Dublin, Geneva, projects in were for $XX in D.C. the three Turning and Washington, Zurich expenditures including to the of million, X Sao Osaka, Singapore, retail recurring and $XXX we Slide and

Revenues our owned also two the revenues We of assets well quarter. XX% purchased increased and in for our London. IBX from for assets Paulo as recurring as four Sao land development to Geneva

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

utilized gross stabilized XXX cash-on-cash on assets basis. PP&E These collectively stabilized X% are revenues Our a and invested. now currency return increased XX% by recurring the assets on XX% a generate year-over-year constant

call. As to we summary QX update plan prior on asset the our a reminder, years, similar earnings to stabilized

XXXX XX nearly XX%. XXXX, guidance currency representing finally, constant year-over-year top revenues for to will to with a Do bridges. basis. of of summary Slides and And $X revenues, XX by all expect rate are through on and note, please of our rates growth billion, normalized refer Starting a step XX% growth line up we

range in our price power of reflecting continued the rates, between to and the top we pass-throughs, highlighted long-term XX%, revenue expect our business. growth at our top momentum growth as Day, above Excluding X% line Analyst end XXXX the

to XXXX We of result the integration XX%, margins operating EBITDA impact XX%, initiatives. would strong approximately of the EBITDA and leverage utility approximate and excluding higher revenues expect efficiency increases And price of adjusted excluding adjusted costs. costs, margins power

of costs in incur We $XX integration expect to million XXXX.

million our X% the AFFO and XX% AFFO and about the range long-term to assets reimbursed is from to of top end billion, between sheet expected XXXX into expected the we to $X.X is to $X.X million Analyst XX% approximately spend. Day. spend, range and previous expected on-balance grow which and ventures compared share $XXX our per between to xScale at grow is billion year, including to of recurring CapEx expect X% of be XXXX CapEx $XXX transfer as joint we XXXX

strong rate performance. annual of cash a the XX% dividend expected is XX% a to on per increasing we're finally, operating growth be increase, And which billion, basis to The approximate due XXX% to our dividend of to share performance. $X.X will operating attributed year-over-year cash

back to the and turn So Charles. let call stop here me

Thanks, Keith.

performance and record as team we for operating proud delivered alike I'm In value have drive our to outlined of in look coming for year. of and opportunity and the Platform competitive XXXX market business and their and the our remains how leadership, key agenda. partner XXXX, beyond, and set digital Our their team providers of consistent priorities advantage a customers reinforce believe the strong infrastructure enterprises to I continued shareholders. as service To our for significant creation, our leadership value Equinix our expand sustained the clear digital advance transformation and

engine, social refining enhance further projects our and colo franchise, leverage, operating superior in enhance that advantage meet First, global integrating on press sustainability experience to systems partners, to to Equinix our commitments our in services best-in-class we scale and evolve into our for customers our continuing help reach, customers and bookings and intend our and leadership processes key to our extending delivering their to interconnected the ways better our responsibility. environmental

platform quickly our value ecosystem their unified and by a allowing by investing digital of enablement, partners Second, proposition capabilities our leverage reach. we platform and enrich platform to go-to-market and their continue significant bring intend accelerating us growth, our delivering key empowering more services to to value set easily to to in more

by culture that attracts, and an cultivating a will committed in-service-to inspires And priorities every people-first. industry, day we We're continuing our belong firmly a every person I the develops place that to these say, matter." advance Equinix cultivate in safe, remains a making creating best I to mindset and and where place talent "I'm can

a industries Despite well leaders macroeconomic platform their powers together will our the bring trusted our business success. remains transformation that all continue a and across In sociopolitical closing, digital to priority and remains to environment, clear infrastructure interconnect and positioned. challenging harness foundational digital

that pleased Tom to of to In welcome Directors. Olinger vein, Board we're our

Prologis, real will to past years technology, service Lyons which over success CFO the he extensive As I'd like rotates the estate and also of experience spanning operating exceptional longtime to Budd the as Tom our at business. off the XX the Company and Board. benefit and growth has international his thank contributions for

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

We now [Operator question Stanley. Our come will Simon Flannery Instructions] session. with from begin will question-and-answer the first Morgan

Your open. line is

I enterprise macro more your early Can core environment? And I part value did commentary through You first the good but in that, the for others are confidence in that facing the be XXXX hear current or you and of who to this from are seeing us think, outlook cautious little behavior? challenges what Microsoft and some some proposition. you Amazon a that's gives I of going interconnect, other some to the not a customers But some strong bit comments of you in grooming, of understand with quarter? good of concern square talk about about any and -- the wonder activity. around December the enterprises that becoming through for and it's the

detail from as And successfully second cycles increases? on then you that have go the payments? struggle color, any those customers that that. the the on through able first that who Any around there to or color one couple to pay the great get have been pricing. a here. would be billing to pushback Good the -- the people you of been around see the Has Has

Simon. expected be questions, there. Thanks, would fully Yes, Sure. both we

providers overall the talking think terms the a being of that been say, customers I environment, the terms I In in would about has discussion interesting more bit cloud cautious. macro of

in and cloud at -- their look step the significantly who and moving specifics gone that said, dynamic. cetera, our they're cloud bill workloads and customers crazy has cloud, whom cloud expanded investment we to "Wow, think of some that." have around think us, that think in many back really on really I I do and have to et see a we take I of need

how the see of And effectively? things going appropriate -- the actually that playing to in use various going that sort to to customers "Hey, to move We are not clouds?" are mix sort how of to everything really we agility infrastructure actually, clouds saying, that dynamic, do favor some what how going blindly our requirements and are we're we what It to cloud. is one, between in degree, and are it's is of the have

for seen that in a sort overall we've commitment, so, they have think two, context digital belt-tightening to budgets. of very And their committed I the do it's think really, probably even that a environment agenda; though broader I of -- they one, transformation customers

do appropriately I cautious they're being think about investments. their so, And

I see -- that about But of terms overall. customers they think digital definitely leaning twice, cut thinking -- we're are once on their how heard in are them in measure characterize as are it CEO one I we that investments. seeing they

very coming as multi-cloud space, going revenue amount even And people I base. are say choice. still on down providers quantum, -- absolutely think the to growth that But staggering. overall, in huge rates I are terms down you're that of incremental is the that would cloud consistent. and in because adding very in of of and the it's And cloud It's hybrid quite are overall still their coming committed a the adds the architecture we because

think partner costs manage in going efficiently I key viewing really figuring And as appropriately Equinix a how to they're manage infrastructure and forward. out

in So in while environment and we're sort profile our would us macro dictate the people feel that appropriately in quite make demand continue being confident our of we think, are pipeline. still about And cautious to conversion seeing, optimistic overall that. a I rates that,

pass-through, We've And one, and the to providing of simply information on second relative lot that -- feel power of had we We've got the them very charges. a communicated inquiries. additional are explaining the Most we've those customers. then inquiries good. to about out

continue right so going to feel confident very point, learn now, And recovery And we'll to you very as feel go. full that we we're we're continue that. of this systems we more. confident -- get update all to But to

question will RBC Atkin Our come with from Markets. next Capital Jon

line open. Your is

a -- maybe a But and for looking bit growth what talk growth about growth expecting if you guidance, services. little you increases. little cabinet revenue the unpack So versus you about cross-connect talked XXXX? various the apart flavors at Can digital that, you're bit from of could energy price

Again, we're Yes. excited. very Sure.

As an in the XX%, we even guide, continue which a elevated the optimistic to with above of X% at about Day. power bit feel it's long-term basis, Analyst to top Obviously, provided adjusted we had that the guide the But the price excluding business. on is pass-through. very evident the line that

the think I So, the business. in overall reflects strength it

And really we're across-the-board seeing strength.

solid in very and we're in of interconnection, think volume I a pricing. really regions. and and seeing services And combination digital colo strong the across

so, that definitely to And pricing take power think increase. that XX%, apart the X% to price from contribute, to and if is I and continue you separate I Even going is to us demonstrate that. think think of inflationary environment, we success good with And pricing, increasing think that having we're that. have I I list do in can sort an which we

quarter. of And digital that unit remains there, then interconnected end this an services, strong at of think, Equinix will we power saying, really, slightly front people volumes came was on adds through Again, way the for edge about growing colo really the probably at the us use softer colo normalize XXXX inflection we the unit to business think XX%. really I So, of of I point year. great is interconnection how feel I think we new like course really, in ways. to the strong, a but a saw the think off

going And see great to there. strength we're so, I think

is performed year business amazing 'XX Americas an -- for the just Americas The business.

think Asia some that fastest-growing coming region price EMEA end I retail really to demonstrated is strength back then interconnection and increases to the evolve of our suite. off continuing really And portfolio the the at XX%.

So again, I got comprehensive across feel in and price products we've very good strength across geographies. that in pretty and volume

just just expecting what terms business, book-to-bill it So follow-up by of customer on the no and and keeping your comment higher to sounds And of xScale of wholesale I maybe and in then this core you way with pricing you're if is that like build verify in turning to briefly, financing segment, costs pace costs? cycle in that. kind could decision how higher wanted intervals change. year,

book-to-bill. that the of yes. think Generally, any not we I book-to-bill, have Sure, seen extensions

of think I sort of cycle, solid good strong conversion feel continue in -- twice, terms I the to book, in sales has cut overall. this But think of what's pipeline seeing anecdotal we're is once. measure the seeing quote team and evidence rates, some again, other to words,

the little just that seen we in right you Keith, I that sure exactly and you're So anecdotal macro in although environment evidence seeing on of any making have if then, of And customers the need what have. again, haven't book-to-bill don't really a in caution that's they're kind they terms not material change, xScale. any surprising of know then And amounts. further sort buying that comment

amount as the building be tremendous xScale, can amount there about say just Yes. I our optimistic that was as this year, to in our remarks, prepared foresee to of capacity don't it relates see customers, constraints. of to some of chain across installation relates year book-to-bill, meaningful of saying we're The there's sort you continue would We only other last it that thing supply xScale the that in I any portfolio. that. were so And a

And exciting. it's

inside And that lot worried so a bit, to seeing opportunities maybe opportunity, to -- and as counter sitting only not the not volume relates of business. xScale we're the Simon's the

a the And price and to up up moved then from returns. moved has that appropriate therefore, no that's So pricing, cost point, and good. costs get recover surprise, have

So, I volume, support we're the are that activity One, feel appropriate for that's juncture. points we're and volume the to feel and returns good there's price perspectives. that the getting there. from both building we There's this the that

Our next with will question come Raymond Louthan from Frank James.

is line Your open.

more that? you bit us the of power the the biggest a through the pass-through side, the walk increases? had what's characterize through you hikes the you what flowed sort or versus revenue between increases cross-connects? of it price Can And from the that from price from put year? from this base what little the Was difference rents in impact the How would

to It's pass-through expense the on think line. revenue the order on and on of yes. power line is a one $XXX Sure, the easy through. really I the million mean,

-- So through revenue what on line, that's obviously, the bp -- to and flow it's and increase causes EBITDA. really the just corresponding XXX without

continues guide impacts normalized that a but But And reported excluding or so normalized EBITDA as look which we think good. on XX% so XX%, to the that a basis, margin. very

in portfolio, of that power the strong going deliver terms up. the that But that are some reflection market. the we inside of to And the of making the across is and of price going we're increasing of just, is expense as kind value then so appropriate And -- increases the in the think the the as of also reflecting business well a and space, environment just I that of it -- board costs we are services, really on in rest of part customer. part digital I power think, in the seeing we're think adjustments

pricing, pretty And partially is -- that's power and and growth the so, consistent driven space, think you're interconnect. the by you're to strong across I going seeing certainly

Frank, And add what maybe me to on there. let just Charles said

about think coming, Analyst years about X% we in you ago the at As pricing, update historically, now. and Analyst said about revenue growing our think you X% and certainly Day was we've this the I revenue X% but Day bookings. in we'll at right June and range running stabilized of it the business, two -- recurring increases our price And X% at at are that our assets are to stabilized said of our when

from to inflation. spots: you're think number one, going I it number So, different a of get

than the course, we got going and You've was moving impact, up historically where move to the And been. the alluding also inflationary higher that list to we are is Charles fact pricing. also have pricing of

look and to got you you've when products so, adding great set we increases a across then you have at from have price. think -- sort Day, the And you quantity continue services, what I inflationary have PPIs come pricing, on is list of broader got we coming our of the to in plus and you've track value as you Analyst we'll that think to just June update the that's as not influence but said. you something I and addition And

average can length And is? what remind your you contract me

to Two three years.

Remaining, two years. to three

retail course, the Inside than business. that. xScale, is longer of

What's outstanding -- the kind any of at average currently?

retail? or xScale in In

Just in retail?

that one renew. least remarks we breathing that prepared a I Again, any when is just decreases, to living renegotiating quarter your two and after average to movement things three. about with look and I more of indication positive customers. always price a That reflection And you for relative how refined and years. you're don't an that there's organism. as a heard at price you've said at you gives And in have increases net be things actions it's mention going my always result, us the to that. is the will quarter It's Yes, than talk pricing of

the down, impacts, increases, that go manifests as you but through the power price but in across be per a bias on increases, come itself our only you And inflationary that that's cabinet to feel that monitor and it will -- model the some MRR very number you'll works, regions. we three the really how see to adjust because very, you're And will is all again, price closely. going not towards people, through continue currency-adjusted something

environment, the either that are only to of we signal, in profile in optimizing markets of quite optimize which rising you we some the And current sort in is proactively. rates as and capacity adept us utilization sort not rate opportunity to a particularly underlying business. how at significantly look some do and it gives I'd -- look managing we've at really or, overall in the at of that markets, a cases, look become in strong at that look as demand higher Frank, sort resell tight, return of And Yes. environment, upon that optimize unutilized renewal, offer high how sort rates and to some at the it very to have take

And so, of that works think demonstrate as business. we've continue us power well that do we for got the I that, to in pricing a level

Our with next from Rollins Citi. Michael question comes

open. Your line is

and expense of couple questions a question. then revenue a Just

of just the on the Can like looking you So should you be if XXXX, the funnel or expenses I'm there at slides, expenses, impact from for as share we some amounts on to the it and pass-throughs power dollar books you have XXXX? off Singapore. impact both looks bouncing close that discussed, of the was revenue previously EBITDA

platform And then enrich get to as XXXX, that of the then should the you examples how beyond? just, incremental enrich at or were the types And of think we discussing maybe be you I of we Charles, the specifically product XXXX and what in there of final mindful are as you're about investments sales opportunities, look for question platform? trying some the are those on to priorities to that

on want 'XX? You first the PPI take to the from one

when talk when first. I we current slightly about So better And is see QX, we Singapore, did than think that let call, you most guided the me obviously repairs step some we guide, which the quarter, back costs as sort into and accelerate largely maintenance fourth some consulting the outside normally of mentioned And we despite last work. for movements. and in some we of to --

And aspect, of Singapore moderated much we about seasonal we some as because the bit aspect. largely then we relative little as seasonal expect price. of our better reason And seen the it, to and PPIs our of And some costs, go utility less part to go but up assumptions. anticipated. Price we've in the utility was inflated the a did that moderation those power up is still didn't but rates

really at and a as we look that little would operating it to with fourth exactly anticipated performed quarter, performance the say I power benefit better you savings when revenues. with then attributed of bit So the and

at for to in the million it year, to Singapore sort the we of the $XX though, of net magnitude think hit look last when Singapore $XX of Specifically of order million.

The reason a to range you U.S. there I'm is weakening of dollar. a giving was relative substantial dollar a the or increase Singapore the

of you a higher a had net at you're obviously, the a our effect exchange little look bit results absorbing it rate. cost when impact, knock-on on a at because so And

of you And a Singapore. that that we are gives in sense so -- would where

one moved -- XXXX we As you of were that costs recover from do that basically has fast to of because the that then XXXX and Singapore part Singapore cost forward XXXX, the in $XXX increase out and in in that we XXXX. had million for not seeing we you're is market, embedded cost to we Equinix things the in of sort mentioned of recovery didn't market in recover recovering that the that it's

So magnitude you think about. it the to of gives thinking should is $XX that of, again, sense, that $XX million, million order there's of be you in number a

the And earlier. described in I much is as larger, of course, overall XXXX quantum

-- that margins. think on that's but And -- and how so but that terms both in we're affects clear I of revenue

that we sure your to answer hit asking Mike? P&L. want that for that you. Does -- to I because want the sure make question, you're make that about we I question

Yes.

it for Slide the like moment Slide just difference. another appreciate to on and the I in XX XX, fully just just make just to So looked sure dig

power power margin then and without the shows XX% shows constant it the XX% pass-through, a it pass-through as difference after in So well. currency

$XX million that million? to should an is adjustments thinking making So the when be Or XXXX? additional the to in is to just there through amount happening $XX we that compare what's it

relatively a power said. you're No. is mean, mean, consistent normalized I with part a of -- getting what normalized without pass-through. we what versus I is it's

the done have we so not would -- exposed we that if exposure. we're saying difference those is to that Singapore two And been between had a little better bit

just moving investments? on then XXXX, And there maybe that, specific or sales for any are to cost operational the

definitely. Yes,

Mike. on Let me little color that, give you a

So and tight this forums, we're different we that in few a the I've that on about -- holding a were line -- investments we pretty G&A. talked

engine We that's so are clear area definitely investment. investing go-to-market a of in the

be to approaching heads. closer I XXX think we'll quota-bearing

And investment. so made that we've definitely

of -- and speak. are some Some year. event sales sales But our board as event to for -- we're Connect many we adding are those of raring those on were already the still go kickoff at

to Metal on Edge ecosystem a opportunity. significant our in market. adapting areas to an but think to significant of really see to a has to the Crenshaw we're of how see we're something We're digital focus focus. -- on and we Network our going evolving of not investment, is the spending level continues value Product more of are the continuing momentum value bring But sort think continue in Metal we services platform incremental think product have is exactly Scott for to be area to investments. we our foundational come is I platform I in. evolving side, lot

of color that's that things so, more partnership the I to come with in investment excited ecosystem. VMC sort of the in of we're And on of terms about think sort And more the Equinix VMware. of

see. because also efficiencies in that's and And efficiency expansion to are either some to so, then AFFO to efficiencies we we're do down growth. terms think And continued I programs road, in the some per labor share going a we use that going to think you're business long-term, and/or margin that drive power improvement, make something have efficiency probably way to point as going going PUE of drive we're at the to believe

and at right? we're and it's through, at -- And but current a line being the really healthy If then very you driven flow margin. guide, top look by growth so --

PPI, an increase, we we've XX% areas business. we're So because been that delivering than I would little where XX about higher bit operating would areas of it at a on of reinvested other in you. XXXX. We for have just been the from and margin, absent are G&A bps leverage the described those into about have that But we

with the some enrich of on to in you priorities in the And us that you'd were platform just sharing that ways earlier finally examples call? terms of the like

enablement Sure. A easier on to it side. We've platform. one to value partners couple of bring their areas, to got the make that is definitely ecosystem for

our with engagement level, an our that's software be so experience software the we think in programmatic partners them clearly for think richer about and to side going easier terms -- And APIs, enabling level, APIs I area from opportunities and customers an how API the of investment. of easier and improving at portal

consistent. platform easier and the more And making use then to

the us channel deliver and a them quote continued for things we've partners, well. our our I order be of from that's think we -- one investment that's heard going to and services, easier it making area as to for of

Our of come will next question Bank David from with Barden America.

is line Your open.

expect us we telling quarter XXXX guess, XXXX, quarter mid-$XXs if the saw of growth subtract of was But million this revenue fourth versus that to your and to it closer revenue I power you I add four, which million pass-throughs suggests we're math midpoint and Keith, what you're by per in question. sequential outlook, your $XXX going the it the I mid-$XX million. see probably from multiply I take

the I June other you growth we set of the to other of think of midyear Charles, want get we guidance concerned the sure about kind didn't might so, time? and question my the that the be raising is, And we're your going hear do year, course over as to strength Day, guess you expectations to when just -- things make are the anything what want what about Analyst to need that than then we second revenue to And about. I mishear I platform

David, and let So the doing for question, take the thanks math. me first

the me let off start at level. So highest

in book more in than we we than did a XXXX to expect on We XXXX. basis net booked

at business But nice we a There's that the in the business, can xScale, in that did in to go see non-recurring So a than we perform of on you would to going to in I clip. addition, XXXX xScale. is say expect around do more lot particularly that continue XXXX. activities

of I as back. starting But million rates movements. the like top the are it's magnitude our said, average is at and feel you You've give so still meaty taking some about And XXXX of and to line. a of But sense currency got the little of rates averages a you're hit. that $XXX some currency to is order to XXXX, movements hit, on bit below just a relatively the now

had little the a you've but although been, substantial a on currencies is to I go going bit blip being currencies So of just think back of XX% last you our in if if continue got another there, as bit a a move to fundamentals, over else in couple all they revenues. we've equal, been uplift move little weeks, the

only averages XXXX. XXXX, it recapture saw would And wind for at we the more it give your you back that in would so not

We're environment And bottom line was so we're very is giving given it's the economic year. there's very today. nothing and obviously deliberate that little early in the wider fundamental. a operating in That range, you bit

just to execute mentioned. And against for a got It's reasons, and so plan those look, wide the I the we're planning that say, guide. I that's range

platform to in to I the update of customers number really able hybrid I on infrastructure also multi-cloud as we'll driving into continue a to areas. of I So Analyst the I visibility of talk more how for give proposition. you momentum we'll we're as in But terms Day, be a that the continued the a evolution in implement -- evolving, and think think of well progressed and they comprehensive be choice. being platform think you give actually value architecture we'll We'll the year, mean, choice about will

I expansion as And customer the experience. think then probably means what interconnected continue that terms for the of with of foundational the service a Metal that networking. in piece the cloud to a evolve also side, real digital updating traditional of means we'll business offerings the services platform that. and on focus how continued on so, what on And colo improvement sort our on And then of you platform, of for

in have I variety of an platform our definitely evolve it very of terms continue to of infrastructure an customers the area is we add we that make customers and Networking easier interconnect had in a of for value that forms a we can to think for how world. always area cloud-centric

see we'll investments a we're how And think you those talk result. the of playing on where evolutions making so, strategy and the as through long-term and you update out we outlook I

next Luebchow come with question Fargo. from will Wells Eric Our

Your line is open.

as fill I about, it Is in you can big seen new on about pretty just you expansion periods? rates talk on rates based on think happening So development than what to it ever I've development. new kind terms as utilization of has Maybe curious your your it's supply, pipeline, tight of faster capacity. in industry expect some deliver historical

curve to pass-throughs much as some terms in rents, raise to flatten dictate we inflation, could how ability have we your cost do that cost started Then you extent, to out? see the of And development think excluding look power is that, year? throughout

sure. we've -- Yes. -- I profiles the I rates return seeing to think past. that informing are that's so investment of the would we're light and -- in what consistent the seen underwriting I for continued -- development we're I that's strong say very with we're we're in definitely that, I and that think mean, in pipeline fill think seeing that's And

we've a in other uptick and -- power words, we expecting profile. pricing and our I think strong. are part materialize maintain the to in we're second ability your anticipating question, I meaningful remains in consistent managing on that cost, have seen seeing a to of thus definitely do return And pricing are far, price increases market, those think, in that we the and increases toward our

forward. strong -- our supply bit situation, think, we of stable, and stabilizing, about is that think, I good a we we're to managed So I the be I whether I on we Keith the capabilities and due our more I said, chain in I And were, it think scale to have, execution some think that, as and do think part diligent effectively. continuing a and terms quite they're of going think

the lot So, stabilized we've I on of risks supply the a side. chain think

advance time you sure. France, with And there, up, Olympics where tight is that some the ability it's markets. projects those just for in is the lines Labor a like to example, coming want task in challenging finding for still on the

the to us. I piece a watch the an probably So, more little for supply would that chain area is on one the say is labor bit

really good But record edge sort of have campuses underwriting, ahead a think about a into overall, we perform expectations. some we're track continue to really, rate. I also of well-established it very feel of the that of our still seeing fill But newer core markets going well of lot our

about underwriting. it feeling of good well and our So pipeline, to to managing think ability perform that yes, development big sort I

one add fact said. business. share the again, let we that is that important me our Charles of maybe Eric, wanted really has And just with to things to we're funding group the the prepared remarks, -- was that in our here the what And

more now. not far fund So, the XX projects across we've capital have to balance sheet on many sheet, XX be least at metros balance capital only major thus -- we far metros. And that not to we're on announced the the going cash in we're bringing in too from

got sense, well chain you We plan capital think So, secured. got a increasing. we've supply the is one, the

in as have We global and team, strategic good got construction doing it's quickly that And they're can the then an excellent team design a and just out delivering job as really a procurement capacity we we there sourcing And the deliver makes have you've team sure some resources it. tough markets. that available.

in place. it there, sourcing was important strategic planning, not volume got really to understand the think I But only we've

in setting capital really good to as XXXX We XXXX. the fund a we're position start ourselves things And those up have that we and through put need. we us all

shift so flexibility. to way enhanced not that it meaningful leverage us gives is And in so any going

all the effectively growth both this on of large to, a And or the at digital prefunded are of the into costs has side Charles expansion enjoying that physical side. the lot same this and now benefits time, and alluded we initiative we've model, the on the

position the about our things our very make give in plan, balance feel liquidity it's sheet of the us good those so, -- all capital we're And combination right that us really and now.

we And have more do just for time you. Thank one question.

question SVB with Del will MoffettNathanson. last Deo Our Nick come from

some virtual that more guess, I going interconnections driving seasonality, trends, it's adds one those can due what's on were of soft First, the Charles, why each bit bit you you consolidated. relative comfortable course to and normalize over to feel importance of expand interconnection specifically just being year? and the that grooming the you a a noted

in spending like you outlays. like today about a And customers more you net sort for you've as net the second, that them? to net you're of in averse of more current or positive Do maybe environment, do neutral feel general customers And cautious but to your Metal capital services got then negative? take see or educating appropriately advantage

good the about being the question. Starting interconnection look, adjustments we We're prices, strong to XX%. clearly feel make is the Yes, interconnection to element broader growing pricing pricing on alongside at overall so list there. great able really business interaction,

is seasonally As weaker, than little QX weaker I definitely, a think And QX said, this -- is bit there we QXs. did I see a some but weaker prior is consolidation.

we usage-based to to have It to I digital close was a customers of usage for more based. due the services interconnection partially it's as think our behavior of is are I as just, service. probably -- said, -- some

the environment, the get that's things we services. at as paid, have to the usage-based can they impact look fastest. When close But things in start colo as -- immediately people to people

higher and pretty that the say, or circuits? that's that I'm for of it's to And that's so I have the common seeing. I on And think not some I them we're using look at do the interconnection think underutilized I consolidate could dynamic portfolio

we tilt that a people sort of, saying still terms growth rates gross the reducing But and on a I their what the of it terms workload it virtual in bit adds very the was. So, very. and by very cloud little despite did seeing I'd cloud gross BCs to of little gross see a because full healthy business, migration ZNs, lighter bit to expect we're -- is little cloud -- of these adds, in then still continues cloud about of and adds, are than think way, lower

burst of that's to go run ability -- through as -- a cycles think squeeze we so they that sort that. on of budget bit a that but something and of tend their of to of see then people those as more kinds kind gas activity out of I out dynamics of And

multi-cloud And hybrid see continue how that like they're closely. so to interconnection and to as we'll the is I go-forward thinking platform customers line feel monitor bottom it our really architectures. fundamental about

ability on over part demand to be And going around definitely profile the services, think think And the the interconnection we're is teams see to second is a realization the for ability that so, Metal on-demand I then that services the long agile articulate sales of for continue their that starting to to term and to help from on. customers more I can strong. business seeing our digital infrastructure customers point be something the really an like deliver inflection more we're and

QX We won of some year. marquee very in deals last

of I provider the customers enterprise and test starting service seeing waters. we're to think very large sort

opportunity an lot be to management their a I agile infrastructure. think obligations I how they see life of reduce technology and in more it cycle as they think implement to

definitely the think that. seeing so, I of we're edge And front

on excitement lot about things seeing I of VMware a Metal. like Cloud think we're Equinix

how of continue know but and it. I sell learning areas, to And sort the that that very think of evolving go-to-market and get business. are approach in But so we're we'll And those to about the I to of definitely our how feel that optimistic about quite in teams personas. front be we effectively optimistic Karl really piece different

that of current kind this helps feel more proposition environment it you do or And makes Okay. challenging? selling

I think it in helps respects. many it

looking digital have they advance possible. and with as are as do and to agility way and as people overall, think the as for much agenda effectively that a efficiently it I

strong seen And we've demand. again, so

think, I I customers. more to agile, think more on-demand, that level -- of are appeal those the increasing do services have an that

concludes This us. Thank conference call. QX our joining for you

today's That for Thank participating. does conclude conference. you

You time. may at this disconnect