In This Article:
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Revenue: $2.2 billion, up 8% year-over-year, excluding power pass-through impact.
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Adjusted EBITDA Margin: Increased to 48% of revenues.
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AFFO per Share: Increased 9% year-over-year.
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Global Q1 MRR Churn: 2.4%, as expected.
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Interconnection Revenues: Grew 9% year-over-year on a normalized and constant currency basis.
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Total Interconnections: More than 486,000 deployed.
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Capital Expenditures: $750 million, including $26 million in recurring CapEx.
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2025 Revenue Guidance Increase: Raised by $142 million.
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2025 Adjusted EBITDA Guidance Increase: Raised by $85 million.
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2025 AFFO Guidance Increase: Raised by $69 million.
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2025 CapEx Expectation: Between $3.4 billion and $3.7 billion.
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Equinix Inc (NASDAQ:EQIX) delivered better-than-expected financial metrics, including revenues, adjusted EBITDA, and AFFO, leading to raised guidance for these metrics.
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The sales team improved customer momentum, deal conversion, and shortened deal cycles while maintaining favorable pricing.
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Equinix Inc (NASDAQ:EQIX) experienced strong recurring revenue growth, driven by the impact of second-half 2024 bookings.
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The company saw significant AI wins, including deployments with NVIDIA DGX Superpod and Groq, enhancing its position in the AI infrastructure market.
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Equinix Inc (NASDAQ:EQIX) continues to expand its global footprint with 56 major projects underway across 33 metros in 24 countries, including 12 xScale projects.
Negative Points
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Lower xScale leasing and fit-out fees offset strong recurring revenue growth in the first quarter.
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The company is closely monitoring the macroeconomic environment, with tariffs posing a concern for many customers.
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Equinix Inc (NASDAQ:EQIX) experienced some unanticipated churn events, including a bankruptcy in EMEA, impacting cabinet billing.
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Nonrecurring revenues are expected to decrease by $38 million in Q2, largely due to xScale.
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The company faces capacity constraints, requiring accelerated builds to meet customer demand, which could impact pricing dynamics.
Q & A Highlights
Q: Can you shed light on what's driving the improvements in sales cycles and whether the macro environment has impacted them in April? A: Darren Gryniuk, Global Head, Digital Sales, explained that despite macro uncertainties, bookings are on target, with no significant shifts in demand. Improvements in sales cycles are due to a more rigorous qualification process, standardized contracts, and enhanced sales productivity, leading to reduced deal cycle times.