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Equinix Reports Fourth-Quarter and Full-Year 2023 Results

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REDWOOD CITY, Calif., Feb. 14, 2024 /PRNewswire/ —

2023 annual revenues increased 13% year-over-year on an as-reported basis and 15% on a normalized and constant currency basis to $8.2 billionClosed nearly 17,000 deals across more than 5,900 customers in 2023Record 90 megawatts (“MW”) of xScale® leasing, the result of increased hyperscale demand to support artificial intelligence (AI) and cloud deployments

Equinix, Inc. (Nasdaq: EQIX), the world’s digital infrastructure company®, today reported results for the quarter and year ended December 31, 2023. Equinix uses certain non-GAAP financial measures, which are described further below and reconciled to the most comparable GAAP financial measures after the presentation of our GAAP financial statements. All per-share results are presented on a fully diluted basis.

2023 Results Summary

Revenues $8.188 billion, a 13% increase over the previous year on an as-reported basis or 15% on a normalized and constant currency basisOperating Income$1.443 billion, a 20% increase over the previous year, and an operating margin of 18% due to strong operating performanceNet Income and Net Income per Share attributable to common shareholders $969 million, a 38% increase over the previous year, primarily due to operating performance strength and other income; partially offset by higher income taxes$10.31 per share, a 34% increase over the previous yearAdjusted EBITDA$3.702 billion, a 45% adjusted EBITDA margin, an increase of 10% compared to last year on an as-reported basisIncludes $13 million of integration costsAFFO and AFFO per Share$3.019 billion, an 11% increase over the previous year on an as-reported basis or 13% on a normalized and constant currency basis$32.11 per share, a 9% increase over the previous year on an as-reported basis or 11% on a normalized and constant currency basis

2024 Annual Guidance Summary

Revenues$8.793$8.893 billion, a 7 – 9% increase over the previous year on an as-reported basis or a normalized and constant currency increase of 7 – 8% excluding the year-over-year impact of the power pass-throughAdjusted EBITDA$4.089$4.169 billion, a 47% adjusted EBITDA margin, a 10 – 13% increase over the prior year on an as-reported basisAssumes $25 million of integration costsAFFO and AFFO per Share$3.306$3.376 billion, an increase of 9 – 12% over the previous year on both an as-reported and normalized and constant currency basis$34.58$35.31 per share, an increase of 8 – 10% over the previous year on both an as-reported and normalized and constant currency basisThis guidance excludes any capital market activities the company may undertake in the future

Equinix does not provide forward-looking guidance for certain financial data, such as depreciation, amortization, accretion, stock-based compensation, net income (loss) from operations, cash generated from operating activities and cash used in investing activities, and as a result, is not able to provide a reconciliation of GAAP to non-GAAP financial measures for forward-looking data without unreasonable effort. The impact of such adjustments could be significant.

Equinix Quote

Charles Meyers, CEO and President, Equinix:

“2023 was another strong year for Equinix—we delivered more than $8 billion of revenues, achieving an amazing 21 years of consecutive quarterly revenue growth, all while driving AFFO per share performance above the top end of our long-term expectations. We made substantial progress on our ambitious agenda, positioning the business to capitalize on the immense opportunities that lie ahead. Digital transformation, especially in an AI-driven world, is as important as ever to our customers. In this context, the significance of Platform Equinix and its strong competitive advantages has never been more crucial. We plan to continue our focus on creating a platform that allows our customers to build hybrid and multicloud infrastructure, when they want, where they want, and with the ecosystem of partners they need.”

Business Highlights

Given the strong underlying demand for digital infrastructure, Equinix continues to invest broadly across its global footprint, which now includes 260 data centers across 71 metropolitan areas in 33 countries. There are 49 major builds underway in 35 markets, across 21 countries including 11 xScale builds representing nearly 20,000 cabinets of retail and more than 50 megawatts of xScale capacity through 2024.

Equinix opened 14 new data centers in 12 metros including Dublin, Frankfurt, Kuala Lumpur, Madrid, Milan, Montreal, Paris, São Paulo, Seattle, Seoul, Tokyo and Washington, D.C. In addition, the company added seven new projects in Dallas, Lagos, Madrid, Milan, Warsaw and Washington, D.C.

In December, Equinix announced plans to expand support for advanced liquid cooling technologies—including direct-to-chip—to more than 100 of its International Business ExchangeTM (IBX®) data centers in more than 45 metros around the world. This will enable more businesses to use the most performant cooling technologies for the powerful, high-density hardware that supports compute-intensive workloads such as AI.

The surge in demand for hyperscale infrastructure to support AI and cloud initiatives is resulting in strong demand and significant leasing activity for Equinix’s global xScale data center portfolio. Since the last earnings call, the company leased a record 90 megawatts of capacity across six assets in EMEA and APAC, including approximately 32 megawatts leased at the start of the year. This brings total xScale leasing to 300 megawatts globally.

In Q4, Equinix purchased the company’s London 8 IBX data center. Revenues from owned assets increased to 66% of recurring revenues, stepping up 2%, as the company continues to progress on ownership and long-term control of assets.

Last month Equinix launched a fully managed private cloud service that enables enterprises to easily acquire and manage their own NVIDIA DGX AI supercomputing infrastructure for building and running custom generative AI models. The service includes NVIDIA DGX systems, NVIDIA networking and the NVIDIA AI Enterprise software platform. Equinix installs and operates each customer’s privately owned NVIDIA infrastructure and can deploy services on their behalf in key IBX data centers globally.

Equinix continues to gain traction as a preferred location for deploying private AI infrastructure with both enterprises and service providers. In December, the company announced that customers, including Continental AG, i3D.net and Harrison.ai, are leveraging the cloud adjacency, global reach, robust ecosystems and low-latency interconnection of Platform Equinix® to deploy private AI infrastructure.

Equinix’s industry-leading global interconnection franchise continues to perform with over 462,000 total interconnections deployed on its platform. In Q4, interconnection revenues stepped up 10% year-over-year on an as reported basis or 8% year-over-year on a normalized and constant currency basis, and the company added an incremental 4,300 organic interconnections in the quarter.

In Q4, Equinix added four new native cloud on-ramps in Bogotá, Calgary and Zurich, further strengthening its cloud ecosystem. Equinix customers can now enjoy low-latency access to multiple native cloud on-ramps in 37 metros, including eight out of the world’s 10 largest metros by GDP. Equinix has nearly 40% market share of the on-ramps to the major cloud service providers—key players in the AI ecosystem.

The company recently launched Equinix Fabric Cloud Router, a virtual routing service designed to simplify networking challenges for enterprises in cloud-to-cloud and hybrid cloud environments. This service provides an easy-to-configure, enterprise-grade, multicloud routing solution that can be deployed within minutes. Customers can utilize Equinix Fabric Cloud Router in all 58 Equinix Fabric®-enabled metros globally, ensuring low-latency connectivity to major cloud providers and a wide range of service providers.

Equinix’s Channel program continued to see strong momentum, contributing to 35% of bookings and over 50% of new customers in Q4. The company saw growth from partners, including Avant, HCL, HPE, NVIDIA and WWT, with wins across a wide range of industry verticals and digital-first use cases.

Equinix remains committed to advancing its Future First Sustainability strategy and has continued to make significant progress in this area.

In December, Equinix announced the full allocation of proceeds from $4.9 billion in investment-grade green bonds to advance toward its near-term science-based target to become climate neutral by 2030 and improve the operational eco-efficiency of its business. As one of the top ten largest green bond issuers in the U.S., Equinix used the net proceeds to support 172 green building projects across 105 sites, 33 energy-efficiency projects, and two Power Purchase Agreements (“PPAs”).

Earlier this month Equinix executed a new PPA in Australia, signaling a broader industry goal of bringing additional clean power to a region where conditions have traditionally been more challenging for executing renewable energy projects. To date, Equinix has executed 21 PPAs across Australia, France, Iberia, the Nordics and the U.S., representing more than one gigawatt of clean energy once operational.

For the second year in a row, Equinix achieved the highest-ranking score of the CDP’s prestigious 2023 “Climate Change A List,” a leading environmental rating system focused on climate-related transparency and action. Equinix was also named as a leader in the IDC MarketScape: Worldwide Datacenter Services 2023 Vendor Assessment, recognized for its sustainability advancements, innovative platform capabilities, and global expansion and ecosystem growth.1

__________________________________________

1.

 IDC, “IDC MarketScape: Worldwide Datacenter Services 2023 Vendor Assessment,” Doc # US49435022e, October 2023

Business Outlook

For the first quarter of 2024, Equinix expects revenues to range between $2.127 and $2.147 billion, an increase of 1 – 2% over the previous quarter, or flat on a normalized and constant currency basis. This guidance includes lower non-recurring revenues related to significant xScale activity in Q4 2023 partly offset by a foreign currency benefit of $38 million when compared to the average FX rates in Q4 2023. Adjusted EBITDA is expected to range between $960 and $980 million, which includes a foreign currency benefit of $18 million when compared to the average FX rates in Q4 2023. Adjusted EBITDA includes $5 million of integration costs related to acquisitions. Recurring capital expenditures are expected to range between $14 and $34 million.

For the full year of 2024, total revenues are expected to range between $8.793 and $8.893 billion, a 7 – 9% increase over the previous year on an as-reported basis, or a 7 – 8% increase on a normalized and constant currency basis excluding the year-over-year impact of the power pass-through, and includes a foreign currency benefit of $127 million when compared to the prior Equinix guidance FX rates. Adjusted EBITDA is expected to range between $4.089 and $4.169 billion, an adjusted EBITDA margin of 47%. This adjusted EBITDA includes approximately 160 basis points of margin benefit from improving operating leverage and power cost decreases, as well as a foreign currency benefit of $67 million when compared to the prior Equinix guidance FX rates. For the year, the company expects to incur $25 million in integration costs related to acquisitions. AFFO is expected to range between $3.306 and $3.376 billion, a 9 – 12% increase over the previous year on both an as-reported and normalized and constant currency basis. This AFFO guidance includes $25 million in integration costs related to acquisitions. AFFO per share is expected to range between $34.58 and $35.31, an 8 – 10% increase over the previous year on both an as-reported and normalized and constant currency basis. This guidance excludes any capital market activities the company may undertake in the future. Non-recurring capital expenditures, including xScale-related costs, are expected to range between $2.570 and $2.800 billion, and recurring capital expenditures are expected to range between $210 and $230 million. xScale-related on-balance sheet capital expenditures are expected to range between $50 and $90 million, which we anticipate will be reimbursed from both the current and future xScale JVs.

The U.S. dollar exchange rates used for 2024 guidance, taking into consideration the impact of our current foreign currency hedges, have been updated to $1.10 to the Euro, $1.24 to the Pound, S$1.32 to the U.S. dollar, ¥141 to the U.S. dollar and A$1.47 to the U.S. dollar. The Q4 2023 global revenue breakdown by currency for the Euro, British Pound, Singapore Dollar, Japanese Yen and Australian Dollar is 21%, 10%, 8%, 5% and 3%, respectively.

The adjusted EBITDA guidance is based on the revenue guidance less our expectations of cash cost of revenues and cash operating expenses. The AFFO guidance is based on the adjusted EBITDA guidance less our expectations of net interest expense, an installation revenue adjustment, a straight-line rent expense adjustment, a contract cost adjustment, amortization of deferred financing costs and debt discounts and premiums, income tax expense, an income tax expense adjustment, recurring capital expenditures, other income (expense), gains (losses) on disposition of real estate property, and adjustments for unconsolidated joint ventures’ and non-controlling interests’ share of these items.

Q4 2023 Results Conference Call and Replay Information

Equinix will discuss its quarterly results for the period ended December 31, 2023, along with its future outlook, in its quarterly conference call on Wednesday, February 14, 2024, at 5:30 p.m. ET (2:30 p.m. PT). A simultaneous live webcast of the call will be available on the company’s Investor Relations website at www.equinix.com/investors. To hear the conference call live, please dial 1-517-308-9482 (domestic and international) and reference the passcode EQIX.

A replay of the call will be available one hour after the call through Wednesday, May 1, 2024, by dialing 1-800-568-3705 and referencing the passcode 2024. In addition, the webcast will be available at www.equinix.com/investors (no password required).

Investor Presentation and Supplemental Financial Information

Equinix has made available on its website a presentation designed to accompany the discussion of Equinix’s results and future outlook, along with certain supplemental financial information and other data. Interested parties may access this information through the Equinix Investor Relations website at www.equinix.com/investors.

Additional Resources

Equinix Investor Relations Resources

About Equinix

Equinix (Nasdaq: EQIX) is the world’s digital infrastructure company®. Digital leaders harness Equinix’s trusted platform to bring together and interconnect foundational infrastructure at software speed. Equinix enables organizations to access all the right places, partners and possibilities to scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value, while supporting their sustainability goals.

Non-GAAP Financial Measures

Equinix provides all information required in accordance with generally accepted accounting principles (“GAAP”), but it believes that evaluating its ongoing operating results may be difficult if limited to reviewing only GAAP financial measures. Accordingly, Equinix uses non-GAAP financial measures to evaluate its operations.

Equinix provides normalized and constant currency growth rates, which are calculated to adjust for acquisitions, dispositions, integration costs, changes in accounting principles and foreign currency.

Equinix presents adjusted EBITDA, which is a non-GAAP financial measure. Adjusted EBITDA represents net income excluding income tax expense, interest income, interest expense, other income or expense, gain or loss on debt extinguishment, depreciation, amortization, accretion, stock-based compensation expense, restructuring charges, impairment charges, transaction costs and gain or loss on asset sales.

In presenting non-GAAP financial measures, such as adjusted EBITDA, cash cost of revenues, cash gross margins, cash operating expenses (also known as cash selling, general and administrative expenses or cash SG&A), adjusted EBITDA margins, free cash flow and adjusted free cash flow, Equinix excludes certain items that it believes are not good indicators of Equinix’s current or future operating performance. These items are depreciation, amortization, accretion of asset retirement obligations and accrued restructuring charges, stock-based compensation, restructuring charges, impairment charges, transaction costs and gain or loss on asset sales. Equinix excludes these items in order for its lenders, investors and the industry analysts who review and report on Equinix to better evaluate Equinix’s operating performance and cash spending levels relative to its industry sector and competitors.

Equinix excludes depreciation expense as these charges primarily relate to the initial construction costs of a data center, and do not reflect its current or future cash spending levels to support its business. Its data centers are long-lived assets, and have an economic life greater than 10 years. The construction costs of an IBX data center do not recur with respect to such data center, and future capital expenditures remain minor relative to our initial investment throughout its useful life. Construction costs in future periods are primarily incurred with respect to additional IBX data centers. This is a trend we expect to continue. In addition, depreciation is also based on the estimated useful lives of the data centers. These estimates could vary from actual performance of the asset, are based on historic costs incurred to build out our data centers and are not indicative of current or expected future capital expenditures. Therefore, Equinix excludes depreciation from its operating results when evaluating its operations.

In addition, in presenting the non-GAAP financial measures, Equinix also excludes amortization expense related to acquired intangible assets. Amortization expense is significantly affected by the timing and magnitude of acquisitions, and these charges may vary in amount from period to period. We exclude amortization expense to facilitate a more meaningful evaluation of our current operating performance and comparisons to our prior periods. Equinix excludes accretion expense, both as it relates to its asset retirement obligations as well as its accrued restructuring charges, as these expenses represent costs which Equinix also believes are not meaningful in evaluating Equinix’s current operations. Equinix excludes stock-based compensation expense, as it can vary significantly from period to period based on share price and the timing, size and nature of equity awards. As such, Equinix and many investors and analysts exclude stock-based compensation expense to compare its operating results with those of other companies. Equinix excludes restructuring charges from its non-GAAP financial measures. The restructuring charges relate to Equinix’s decision to exit leases for excess space adjacent to several of its IBX® data centers, which it did not intend to build out, or its decision to reverse such restructuring charges. Equinix also excludes impairment charges generally related to certain long-lived assets. The impairment charges are related to expense recognized whenever events or changes in circumstances indicate that the carrying amount of assets are not recoverable. Equinix also excludes gain or loss on asset sales as it represents profit or loss that is not meaningful in evaluating the current or future operating performance. Finally, Equinix excludes transaction costs from its non-GAAP financial measures to allow more comparable comparisons of the financial results to the historical operations. The transaction costs relate to costs Equinix incurs in connection with business combinations and the formation of joint ventures, including advisory, legal, accounting, valuation and other professional or consulting fees. Such charges generally are not relevant to assessing the long-term performance of Equinix. In addition, the frequency and amount of such charges vary significantly based on the size and timing of the transactions. Management believes items such as restructuring charges, impairment charges, transaction costs and gain or loss on asset sales are non-core transactions; however, these types of costs may occur in future periods.

Equinix also presents funds from operations (“FFO”) and adjusted funds from operations (“AFFO”), both commonly used in the REIT industry, as supplemental performance measures. Additionally, Equinix presents AFFO per share, which is also commonly used in the REIT industry. AFFO per share offers investors and industry analysts a perspective of Equinix’s underlying operating performance when compared to other REIT companies. FFO is calculated in accordance with the definition established by the National Association of Real Estate Investment Trusts (“NAREIT”). FFO represents net income or loss, excluding gain or loss from the disposition of real estate assets, depreciation and amortization on real estate assets and adjustments for unconsolidated joint ventures’ and non-controlling interests’ share of these items. AFFO represents FFO, excluding depreciation and amortization expense on non-real estate assets, accretion, stock-based compensation, stock-based charitable contributions, restructuring charges, impairment charges, transaction costs, an installation revenue adjustment, a straight-line rent expense adjustment, a contract cost adjustment, amortization of deferred financing costs and debt discounts and premiums, gain or loss on debt extinguishment, an income tax expense adjustment, recurring capital expenditures, net income or loss from discontinued operations, net of tax, and adjustments from FFO to AFFO for unconsolidated joint ventures’ and non-controlling interests’ share of these items. Equinix excludes depreciation expense, amortization expense, accretion, stock-based compensation, restructuring charges, impairment charges and transaction costs for the same reasons that they are excluded from the other non-GAAP financial measures mentioned above.

Equinix includes an adjustment for revenues from installation fees, since installation fees are deferred and recognized ratably over the period of contract term, although the fees are generally paid in a lump sum upon installation. Equinix includes an adjustment for straight-line rent expense on its operating leases, since the total minimum lease payments are recognized ratably over the lease term, although the lease payments generally increase over the lease term. Equinix also includes an adjustment to contract costs incurred to obtain contracts, since contract costs are capitalized and amortized over the estimated period of benefit on a straight-line basis, although costs of obtaining contracts are generally incurred and paid during the period of obtaining the contracts. The adjustments for installation revenues, straight-line rent expense and contract costs are intended to isolate the cash activity included within the straight-lined or amortized results in the consolidated statement of operations. Equinix excludes the amortization of deferred financing costs and debt discounts and premiums as these expenses relate to the initial costs incurred in connection with its debt financings that have no current or future cash obligations. Equinix excludes gain or loss on debt extinguishment since it represents a cost that is not a good indicator of Equinix’s current or future operating performance. Equinix includes an income tax expense adjustment, which represents the non-cash tax impact due to changes in valuation allowances and uncertain tax positions that do not relate to the current period’s operations. Equinix deducts recurring capital expenditures, which represent expenditures to extend the useful life of its IBX and xScale data centers or other assets that are required to support current revenues. Equinix excludes net income or loss from discontinued operations, net of tax, which represents results that are not a good indicator of our current or future operating performance.

Equinix presents constant currency results of operations, which is a non-GAAP financial measure and is not meant to be considered in isolation or as an alternative to GAAP results of operations. However, Equinix has presented this non-GAAP financial measure to provide investors with an additional tool to evaluate its operating results without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of Equinix’s business performance. To present this information, Equinix’s current and comparative prior period revenues and certain operating expenses from entities with functional currencies other than the U.S. dollar are converted into U.S. dollars at a consistent exchange rate for purposes of each result being compared.

Non-GAAP financial measures are not a substitute for financial information prepared in accordance with GAAP. Non-GAAP financial measures should not be considered in isolation, but should be considered together with the most directly comparable GAAP financial measures and the reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures. Equinix presents such non-GAAP financial measures to provide investors with an additional tool to evaluate its operating results in a manner that focuses on what management believes to be its core, ongoing business operations. Management believes that the inclusion of these non-GAAP financial measures provides consistency and comparability with past reports and provides a better understanding of the overall performance of the business and its ability to perform in subsequent periods. Equinix believes that if it did not provide such non-GAAP financial information, investors would not have all the necessary data to analyze Equinix effectively.

Investors should note that the non-GAAP financial measures used by Equinix may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as those of other companies. Investors should, therefore, exercise caution when comparing non-GAAP financial measures used by us to similarly titled non-GAAP financial measures of other companies. Equinix does not provide forward-looking guidance for certain financial data, such as depreciation, amortization, accretion, stock-based compensation, net income or loss from operations, cash generated from operating activities and cash used in investing activities, and as a result, is not able to provide a reconciliation of GAAP to non-GAAP financial measures for forward-looking data without unreasonable effort. The impact of such adjustments could be significant. Equinix intends to calculate the various non-GAAP financial measures in future periods consistent with how they were calculated for the periods presented within this press release.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, risks to our business and operating results related to the current inflationary environment; foreign currency exchange rate fluctuations; increased costs and increased challenges to procure power and the general volatility in the global energy market; the challenges of acquiring, operating and constructing IBX and xScale data centers and developing, deploying and delivering Equinix products and solutions; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenues from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; risks related to potential cybersecurity breaches; risks related to our taxation as a REIT and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent and upcoming Equinix quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.

EQUINIX, INC.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

Three Months Ended

Twelve Months Ended

December 31,
2023

September 30,
2023

December 31,
2022

December 31,
2023

December 31,
2022

Recurring revenues

$      1,976,038

$      1,961,043

$      1,773,380

$      7,744,731

$      6,871,287

Non-recurring revenues

134,451

99,987

97,465

443,405

391,818

Revenues

2,110,489

2,061,030

1,870,845

8,188,136

7,263,105

Cost of revenues

1,091,776

1,068,991

970,700

4,227,658

3,751,501

Gross profit

1,018,713

992,039

900,145

3,960,478

3,511,604

Operating expenses:

Sales and marketing

217,603

212,506

207,233

855,796

786,560

General and administrative

448,849

403,890

400,183

1,654,042

1,498,701

Transaction costs

5,869

(775)

10,529

12,412

21,839

(Gain) loss on asset sales

(24)

(3,933)

(5,046)

3,976

Total operating expenses

672,297

611,688

617,945

2,517,204

2,311,076

Income from operations

346,416

380,351

282,200

1,443,274

1,200,528

Interest and other expense:

Interest income

28,225

23,111

18,462

94,227

36,268

Interest expense

(103,183)

(101,385)

(94,200)

(402,022)

(356,337)

Other expense

(1,227)

(5,972)

(28,895)

(11,214)

(51,417)

Gain (loss) on debt extinguishment

71

(360)

143

(35)

327

Total interest and other, net

(76,114)

(84,606)

(104,490)

(319,044)

(371,159)

Income before income taxes

270,302

295,745

177,710

1,124,230

829,369

Income tax expense

(42,825)

(19,985)

(48,807)

(155,250)

(124,792)

Net income

227,477

275,760

128,903

968,980

704,577

Net (income) loss attributable to non-controlling interests

91

34

(140)

198

(232)

Net income attributable to common shareholders

$         227,568

$         275,794

$         128,763

$         969,178

$         704,345

Net income per share attributable to common shareholders:

Basic net income per share

$               2.41

$               2.94

$               1.39

$             10.35

$               7.69

Diluted net income per share

$               2.40

$               2.93

$               1.39

$             10.31

$               7.67

Shares used in computing basic net income per share

94,268

93,683

92,573

93,615

91,569

Shares used in computing diluted net income per share

94,667

94,168

92,752

94,009

91,828

 

EQUINIX, INC.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(in thousands)

(unaudited)

Three Months Ended

Twelve Months Ended

December 31,
2023

September 30,
2023

December 31,
2022

December 31,
2023

December 31,
2022

Net income

$       227,477

$       275,760

$       128,903

$       968,980

$       704,577

Other comprehensive income (loss), net of tax:

Foreign currency translation adjustment (“CTA”) gain (loss)

479,754

(412,910)

796,716

249,981

(769,886)

Unrealized gain (loss) on cash flow hedges

(26,382)

25,685

(50,231)

(18,370)

40,543

Net investment hedge CTA gain (loss)

(217,345)

149,608

(379,960)

(131,883)

425,701

Net actuarial loss on defined benefit plans

(112)

(119)

(42)

(462)

(101)

Total other comprehensive income (loss), net of tax

235,915

(237,736)

366,483

99,266

(303,743)

Comprehensive income, net of tax

463,392

38,024

495,386

1,068,246

400,834

Net (income) loss attributable to non-controlling interests

91

34

(140)

198

(232)

Other comprehensive (income) loss attributable to non-controlling interests

(22)

182

(12)

63

48

Comprehensive income attributable to common shareholders

$       463,461

$         38,240

$       495,234

$    1,068,507

$       400,650

 

EQUINIX, INC.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

December 31, 2023

December 31, 2022

Assets

Cash and cash equivalents

$               2,095,712

$               1,906,421

Accounts receivable, net

1,003,792

855,380

Other current assets

468,193

459,138

Assets held for sale

84,316

Total current assets

3,567,697

3,305,255

Property, plant and equipment, net

18,600,833

16,649,534

Operating lease right-of-use assets

1,448,890

1,427,950

Goodwill

5,737,122

5,654,217

Intangible assets, net

1,704,870

1,897,649

Other assets

1,591,312

1,376,137

Total assets

$             32,650,724

$             30,310,742

Liabilities, Redeemable Non-Controlling Interest and Stockholders’ Equity

Accounts payable and accrued expenses

$               1,186,618

$               1,004,800

Accrued property, plant and equipment

398,216

281,347

Current portion of operating lease liabilities

130,745

139,538

Current portion of finance lease liabilities

138,657

151,420

Current portion of mortgage and loans payable

7,705

9,847

Current portion of senior notes

998,580

Other current liabilities

301,729

251,346

Total current liabilities

3,162,250

1,838,298

Operating lease liabilities, less current portion

1,331,333

1,272,812

Finance lease liabilities, less current portion

2,122,484

2,143,690

Mortgage and loans payable, less current portion

663,263

642,708

Senior notes, less current portion

12,062,346

12,109,539

Other liabilities

795,549

797,863

Total liabilities

20,137,225

18,804,910

Redeemable non-controlling interest

25,000

Common stockholders’ equity:

Common stock

95

93

Additional paid-in capital

18,595,664

17,320,017

Treasury stock

(56,117)

(71,966)

Accumulated dividends

(8,694,647)

(7,317,570)

Accumulated other comprehensive loss

(1,290,117)

(1,389,446)

Retained earnings

3,934,016

2,964,838

Total common stockholders’ equity

12,488,894

11,505,966

Non-controlling interests

(395)

(134)

Total stockholders’ equity

12,488,499

11,505,832

Total liabilities, redeemable non-controlling interest and stockholders’ equity

$             32,650,724

$             30,310,742

Ending headcount by geographic region is as follows:

Americas headcount

5,953

5,493

EMEA headcount

4,267

3,936

Asia-Pacific headcount

2,931

2,668

Total headcount

13,151

12,097

 

EQUINIX, INC.

Summary of Debt Principal Outstanding

(in thousands)

(unaudited)

December 31, 2023

December 31, 2022

Finance lease liabilities

$                         2,261,141

$                          2,295,110

Term loans

641,931

618,028

Mortgage payable and other loans payable

29,037

34,527

Plus: debt discount and issuance costs, net

726

1,062

Total mortgage and loans payable principal

671,694

653,617

Senior notes

13,060,926

12,109,539

Plus: debt discount and issuance costs

108,026

117,351

Total senior notes principal

13,168,952

12,226,890

Total debt principal outstanding

$                       16,101,787

$                        15,175,617

 

EQUINIX, INC.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Three Months Ended

Twelve Months Ended

December 31,
2023

September 30,
2023

December 31,
2022

December 31,
2023

December 31,
2022

Cash flows from operating activities:

Net income

$       227,477

$       275,760

$       128,903

$       968,980

$       704,577

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, amortization and accretion

462,367

466,613

438,492

1,843,665

1,739,374

Stock-based compensation

105,829

98,446

107,519

407,536

403,983

Amortization of debt issuance costs and debt discounts and premiums

4,791

4,684

4,553

18,718

17,826

(Gain) loss on debt extinguishment

(71)

360

(143)

35

(327)

Loss (gain) on asset sales

(24)

(3,933)

(5,046)

3,976

Other items

15,788

12,776

44,880

58,030

67,298

Changes in operating assets and liabilities:

Accounts receivable

49,358

(47,147)

(56,209)

(150,345)

(153,415)

Income taxes, net

10,692

(14,530)

(17,701)

4,107

(7,827)

Accounts payable and accrued expenses

76,351

69,082

31,511

161,300

114,600

Operating lease right-of-use assets

21,624

39,977

36,171

138,704

149,094

Operating lease liabilities

(27,575)

(33,654)

(34,586)

(126,539)

(132,831)

Other assets and liabilities

52,107

(83,259)

76,799

(102,550)

56,854

Net cash provided by operating activities

998,714

785,175

760,189

3,216,595

2,963,182

Cash flows from investing activities:

Purchases, sales and maturities of investments, net

(54,534)

(26,664)

(35,222)

(135,881)

(122,569)

Business acquisitions, net of cash and restricted cash acquired

(964,010)

Real estate acquisitions

(231,108)

(112,896)

(208,377)

(384,401)

(248,276)

Purchases of other property, plant and equipment

(995,720)

(617,539)

(827,927)

(2,781,018)

(2,278,004)

Proceeds from asset sales

4,682

76,936

249,906

Net cash used in investing activities

(1,281,362)

(752,417)

(1,071,526)

(3,224,364)

(3,362,953)

Cash flows from financing activities:

Proceeds from employee equity awards

(115)

42,420

86,848

81,543

Proceeds from redeemable non-controlling interest

25,000

Payment of dividend distributions

(403,176)

(324,587)

(287,573)

(1,374,168)

(1,151,459)

Proceeds from public offering of common stock, net of offering costs

432,876

733,651

796,018

Proceeds from mortgage and loans payable

676,850

Proceeds from senior notes, net of debt discounts

336,853

902,092

1,193,688

Repayment of finance lease liabilities

(50,822)

(31,629)

(36,394)

(148,913)

(134,202)

Repayment of mortgage and loans payable

(576)

(2,133)

(1,714)

(6,132)

(587,941)

Repayment of senior notes

Debt extinguishment costs

Debt issuance costs

307

(2,982)

(6,932)

(17,731)

Net cash provided by (used in) financing activities

(21,506)

17,942

(325,681)

211,446

856,766

Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash

42,209

(35,027)

37,398

(15,616)

(98,201)

Net increase (decrease) in cash, cash equivalents and restricted cash

(261,945)

15,673

(599,620)

188,061

358,794

Cash, cash equivalents and restricted cash at beginning of period

2,358,254

2,342,581

2,507,868

1,908,248

1,549,454

Cash, cash equivalents and restricted cash at end of period

$    2,096,309

$    2,358,254

$    1,908,248

$    2,096,309

$    1,908,248

Supplemental cash flow information:

Cash paid for taxes

$         26,662

$         42,021

$         44,091

$       152,988

$       140,312

Cash paid for interest

$       136,224

$         97,152

$       128,511

$       471,456

$       430,217

Free cash flow (negative free cash flow)(1)

$     (228,114)

$         59,422

$     (276,115)

$       128,112

$     (277,202)

Adjusted free cash flow (2)

$           2,994

$       172,318

$       (67,738)

$       512,513

$      935,084

(1)

We define free cash flow (negative free cash flow) as net cash provided by operating activities plus net cash provided by (used in) investing activities (excluding the net purchases, sales and maturities of investments) as presented below:

Net cash provided by operating activities as presented above

$       998,714

$       785,175

$       760,189

$    3,216,595

$    2,963,182

Net cash used in investing activities as presented above

(1,281,362)

(752,417)

(1,071,526)

(3,224,364)

(3,362,953)

Purchases, sales and maturities of investments, net

54,534

26,664

35,222

135,881

122,569

Free cash flow (negative free cash flow)

$     (228,114)

$         59,422

$     (276,115)

$       128,112

$     (277,202)

(2)

We define adjusted free cash flow as free cash flow (negative free cash flow) as defined above, excluding any real estate and business acquisitions, net of cash and restricted cash acquired as presented below:

Free cash flow (negative free cash flow) as defined above

$     (228,114)

$         59,422

$     (276,115)

$       128,112

$     (277,202)

Less business acquisitions, net of cash and restricted cash acquired

964,010

Less real estate acquisitions

231,108

112,896

208,377

384,401

248,276

Adjusted free cash flow

$           2,994

$       172,318

$        (67,738)

$       512,513

$       935,084

 

EQUINIX, INC.

Non-GAAP Measures and Other Supplemental Data

(in thousands)

(unaudited)

Three Months Ended

Twelve Months Ended

December 31, 2023

September 30, 2023

December 31, 2022

December 31, 2023

December 31, 2022

Recurring revenues

$ 1,976,038

$ 1,961,043

$ 1,773,380

$ 7,744,731

$ 6,871,287

Non-recurring revenues

134,451

99,987

97,465

443,405

391,818

Revenues (1)

2,110,489

2,061,030

1,870,845

8,188,136

7,263,105

Cash cost of revenues (2)

756,510

725,750

642,176

2,869,034

2,436,074

Cash gross profit (3)

1,353,979

1,335,280

1,228,669

5,319,102

4,827,031

Cash operating expenses (4)(7):

Cash sales and marketing expenses (5)

147,084

138,879

140,697

567,514

506,609

Cash general and administrative

    expenses (6)

286,438

260,470

249,232

1,049,747

950,722

Total cash operating expenses (4)(7)

433,522

399,349

389,929

1,617,261

1,457,331

Adjusted EBITDA (8)

$    920,457

$    935,931

$    838,740

$ 3,701,841

$ 3,369,700

Cash gross margins (9)

64 %

65 %

66 %

65 %

66 %

Adjusted EBITDA

    margins (10)

44 %

45 %

45 %

45 %

46 %

Adjusted EBITDA flow-through rate (11)

(31) %

82 %

(107) %

36 %

36 %

FFO (12)

$    524,505

$    562,080

$    406,945

$ 2,129,977

$ 1,826,334

AFFO (13) (14)

$    690,846

$    771,617

$    657,818

$ 3,018,518

$ 2,713,878

Basic FFO per share (15)

$           5.56

$           6.00

$           4.40

$         22.75

$         19.94

Diluted FFO per share (15)

$           5.54

$           5.97

$           4.39

$         22.66

$         19.89

Basic AFFO per share (15)

$           7.33

$           8.24

$           7.11

$         32.24

$         29.64

Diluted AFFO per share(15)

$           7.30

$           8.19

$           7.09

$         32.11

$         29.55

(1)

The geographic split of our revenues on a services basis is presented below:

Americas Revenues:

Colocation

$    610,512

$    596,871

$    568,240

$ 2,365,049

$ 2,187,751

Interconnection

210,550

206,552

197,337

820,007

756,214

Managed infrastructure

65,024

63,356

59,244

249,779

218,499

Other

6,657

5,503

4,885

22,118

20,727

Recurring revenues

892,743

872,282

829,706

3,456,953

3,183,191

Non-recurring revenues

38,968

41,411

42,065

160,539

166,026

Revenues

$    931,711

$    913,693

$    871,771

$ 3,617,492

$ 3,349,217

EMEA Revenues:

Colocation

$    540,935

$    538,256

$    450,480

$ 2,112,168

$ 1,744,121

Interconnection

79,619

78,795

66,710

307,337

268,398

Managed infrastructure

32,956

32,790

29,431

130,061

119,361

Other

23,816

23,283

23,882

98,591

75,449

Recurring revenues

677,326

673,124

570,503

2,648,157

2,207,329

Non-recurring revenues

73,840

35,590

31,208

189,697

135,875

Revenues

$    751,166

$    708,714

$    601,711

$ 2,837,854

$ 2,343,204

Asia-Pacific Revenues:

Colocation

$    317,969

$    329,054

$    291,480

$ 1,288,844

$ 1,150,738

Interconnection

67,538

67,411

61,572

266,966

243,664

Managed infrastructure

17,191

17,484

17,819

71,833

77,646

Other

3,271

1,688

2,300

11,978

8,719

Recurring revenues

405,969

415,637

373,171

1,639,621

1,480,767

Non-recurring revenues

21,643

22,986

24,192

93,169

89,917

Revenues

$    427,612

$    438,623

$    397,363

$ 1,732,790

$ 1,570,684

Worldwide Revenues:

Colocation

$ 1,469,416

$ 1,464,181

$ 1,310,200

$ 5,766,061

$ 5,082,610

Interconnection

357,707

352,758

325,619

1,394,310

1,268,276

Managed infrastructure

115,171

113,630

106,494

451,673

415,506

Other

33,744

30,474

31,067

132,687

104,895

Recurring revenues

1,976,038

1,961,043

1,773,380

7,744,731

6,871,287

Non-recurring revenues

134,451

99,987

97,465

443,405

391,818

Revenues

$ 2,110,489

$ 2,061,030

$ 1,870,845

$ 8,188,136

$ 7,263,105

(2)

We define cash cost of revenues as cost of revenues less depreciation, amortization, accretion and stock-based compensation as presented below:

Cost of revenues

$ 1,091,776

$ 1,068,991

$    970,700

$ 4,227,658

$ 3,751,501

Depreciation, amortization and accretion expense

(322,366)

(330,852)

(316,549)

(1,309,613)

(1,270,399)

Stock-based compensation expense

(12,900)

(12,389)

(11,975)

(49,011)

(45,028)

Cash cost of revenues

$    756,510

$    725,750

$    642,176

$ 2,869,034

$ 2,436,074

The geographic split of our cash cost of revenues is presented below:

Americas cash cost of revenues

$    263,165

$    270,272

$    263,374

$ 1,045,526

$    994,389

EMEA cash cost of revenues

326,137

304,345

226,574

1,199,345

866,292

Asia-Pacific cash cost of revenues

167,208

151,133

152,228

624,163

575,393

Cash cost of revenues

$    756,510

$    725,750

$    642,176

$ 2,869,034

$ 2,436,074

(3)

We define cash gross profit as revenues less cash cost of revenues (as defined above).

(4)

We define cash operating expense as selling, general, and administrative expense less depreciation, amortization, and stock-based compensation. We also refer to cash operating expense as cash selling, general and administrative expense or “cash SG&A”.

Selling, general, and administrative expense

$    666,452

$    616,396

$    607,416

$ 2,509,838

$ 2,285,261

Depreciation and amortization expense

(140,001)

(130,990)

(121,943)

(534,052)

(468,975)

Stock-based compensation expense

(92,929)

(86,057)

(95,544)

(358,525)

(358,955)

Cash operating expense

$    433,522

$    399,349

$    389,929

$ 1,617,261

$ 1,457,331

(5)

We define cash sales and marketing expense as sales and marketing expense less depreciation, amortization and stock-based compensation as presented below:

Sales and marketing expense

$    217,603

$    212,506

$    207,233

$    855,796

$    786,560

Depreciation and amortization expense

(50,632)

(50,989)

(49,604)

(203,698)

(197,157)

Stock-based compensation expense

(19,887)

(22,638)

(16,932)

(84,584)

(82,794)

Cash sales and marketing expense

$    147,084

$    138,879

$    140,697

$    567,514

$    506,609

(6)

We define cash general and administrative expense as general and administrative expense less depreciation, amortization and stock-based compensation as presented below:

General and administrative expense

$    448,849

$    403,890

$    400,183

$ 1,654,042

$ 1,498,701

Depreciation and amortization expense

(89,369)

(80,001)

(72,339)

(330,354)

(271,818)

Stock-based compensation expense

(73,042)

(63,419)

(78,612)

(273,941)

(276,161)

Cash general and administrative expense

$    286,438

$    260,470

$    249,232

$ 1,049,747

$    950,722

(7)

The geographic split of our cash operating expense, or cash SG&A, as defined above, is presented below:

Americas cash SG&A

$    257,581

$    238,524

$    214,560

$    958,270

$    833,053

EMEA cash SG&A

105,253

94,197

104,648

387,233

367,410

Asia-Pacific cash SG&A

70,688

66,628

70,721

271,758

256,868

Cash SG&A

$    433,522

$    399,349

$    389,929

$ 1,617,261

$ 1,457,331

(8)

We define adjusted EBITDA as income from operations excluding depreciation, amortization, accretion, stock-based compensation, restructuring charges, impairment charges, transaction costs and gain or loss on asset sales as presented below:

Net income

$    227,477

$    275,760

$    128,903

$    968,980

$    704,577

Income tax expense

42,825

19,985

48,807

155,250

124,792

Interest income

(28,225)

(23,111)

(18,462)

(94,227)

(36,268)

Interest expense

103,183

101,385

94,200

402,022

356,337

Other expense

1,227

5,972

28,895

11,214

51,417

(Gain) loss on debt extinguishment

(71)

360

(143)

35

(327)

Depreciation, amortization and accretion expense

462,367

461,842

438,492

1,843,665

1,739,374

Stock-based compensation expense

105,829

98,446

107,519

407,536

403,983

Transaction costs

5,869

(775)

10,529

12,412

21,839

(Gain) loss on asset sales

(24)

(3,933)

(5,046)

3,976

Adjusted EBITDA

$    920,457

$    935,931

$    838,740

$ 3,701,841

$ 3,369,700

The geographic split of our adjusted EBITDA is presented below:

Americas net income (loss)

$       57,548

$       37,911

$   (67,580)

$       12,703

$         (584)

Americas income tax expense (benefit)

(89,606)

19,897

(33,279)

22,818

42,587

Americas interest income

(20,633)

(17,506)

(16,259)

(71,945)

(32,265)

Americas interest expense

87,827

86,691

83,363

342,690

316,934

Americas other (income) expense

50,797

(39,137)

104,539

24,752

(42,895)

Americas loss on debt extinguishment

198

Americas depreciation, amortization and accretion expense

251,276

251,855

237,919

999,832

932,892

Americas stock-based compensation expense

70,914

64,067

76,131

272,259

282,997

Americas transaction costs

2,923

1,054

9,003

7,064

17,950

Americas (gain) loss on asset sales

(82)

65

3,523

3,961

Americas adjusted EBITDA

$    410,964

$    404,897

$    393,837

$ 1,613,696

$ 1,521,775

EMEA net income

$    174,108

$    125,992

$    195,224

$    651,057

$    477,808

EMEA income tax expense

49,560

16,531

49,560

16,650

EMEA interest income

(3,903)

(2,730)

(1,251)

(12,045)

(2,530)

EMEA interest expense

4,530

3,931

2,675

17,167

5,698

EMEA other (income) expense

(53,621)

42,284

(77,880)

(30,679)

77,705

EMEA depreciation, amortization and accretion expense

124,536

125,613

116,097

497,924

459,098

EMEA stock-based compensation expense

21,271

20,958

18,840

82,575

73,294

EMEA transaction costs

3,238

(1,878)

253

4,286

2,016

EMEA (gain) loss on asset sales

58

(3,998)

(8,569)

(237)

EMEA adjusted EBITDA

$   319,777

$    310,172

$    270,489

$ 1,251,276

$ 1,109,502

Asia-Pacific net income (loss)

$     (4,179)

$    111,857

$        1,259

$    305,220

$    227,353

Asia-Pacific income tax expense

82,871

88

65,555

82,872

65,555

Asia-Pacific interest income

(3,689)

(2,875)

(952)

(10,237)

(1,473)

Asia-Pacific interest expense

10,826

10,763

8,162

42,165

33,705

Asia-Pacific other expense

4,051

2,825

2,236

17,141

16,607

Asia-Pacific (gain) loss on debt extinguishment

(71)

360

(143)

35

(525)

Asia-Pacific depreciation, amortization and accretion expense

86,555

84,374

84,476

345,909

347,384

Asia-Pacific stock-based compensation expense

13,644

13,421

12,548

52,702

47,692

Asia-Pacific transaction costs

(292)

49

1,273

1,062

1,873

Asia-Pacific loss on asset sales

252

Asia-Pacific adjusted EBITDA

$    189,716

$    220,862

$    174,414

$    836,869

$    738,423

(9)

We define cash gross margins as cash gross profit divided by revenues.

Our cash gross margins by geographic region is presented below:

Americas cash gross margins

72 %

70 %

70 %

71 %

70 %

EMEA cash gross margins

57 %

57 %

62 %

58 %

63 %

Asia-Pacific cash gross margins

61 %

66 %

62 %

64 %

63 %

(10)

We define adjusted EBITDA margins as adjusted EBITDA divided by revenues.

Americas adjusted EBITDA margins

44 %

44 %

45 %

45 %

45 %

EMEA adjusted EBITDA margins

43 %

44 %

45 %

44 %

47 %

Asia-Pacific adjusted EBITDA margins

44 %

50 %

44 %

48 %

47 %

(11)

We define adjusted EBITDA flow-through rate as incremental adjusted EBITDA growth divided by incremental revenue growth as follows:

Adjusted EBITDA – current period

$    920,457

$    935,931

$    838,740

$ 3,701,841

$ 3,369,700

Less adjusted EBITDA – prior period

(935,931)

(901,170)

(870,916)

(3,369,700)

(3,144,384)

Adjusted EBITDA growth

$   (15,474)

$      34,761

$   (32,176)

$   332,141

$    225,316

Revenues – current period

$ 2,110,489

$ 2,061,030

$ 1,870,845

$ 8,188,136

$ 7,263,105

Less revenues – prior period

(2,061,030)

(2,018,408)

(1,840,659)

(7,263,105)

(6,635,537)

Revenue growth

$     49,459

$      42,622

$      30,186

$   925,031

$    627,568

Adjusted EBITDA flow-through rate

(31) %

82 %

(107) %

36 %

36 %

(12)

FFO is defined as net income or loss, excluding gain or loss from the disposition of real estate assets, depreciation and amortization on real estate assets and adjustments for unconsolidated joint ventures’ and non-controlling interests’ share of these items.

Net income

$    227,477

$    275,760

$    128,903

$    968,980

$    704,577

Net (income) loss attributable to non-controlling interests

91

34

(140)

198

(232)

Net income attributable to common shareholders

227,568

275,794

128,763

969,178

704,345

Adjustments:

Real estate depreciation

289,747

284,760

274,625

1,141,861

1,104,787

(Gain) loss on disposition of real estate property

1,642

(3,480)

437

1,898

7,134

Adjustments for FFO from unconsolidated joint ventures

5,548

5,006

3,120

17,040

10,068

FFO attributable to common shareholders

$    524,505

$    562,080

$    406,945

$ 2,129,977

$ 1,826,334

(13)

AFFO is defined as FFO, excluding depreciation and amortization expense on non-real estate assets, accretion, stock-based compensation, stock-based charitable contributions, restructuring charges, impairment charges, transaction costs, an installation revenue adjustment, a straight-line rent expense adjustment, a contract cost adjustment, amortization of deferred financing costs and debt discounts and premiums, gain or loss on debt extinguishment, an income tax expense adjustment, net income or loss from discontinued operations, net of tax, recurring capital expenditures and adjustments from FFO to AFFO for unconsolidated joint ventures’ and non-controlling interests’ share of these items.

FFO attributable to common shareholders

$    524,505

$    562,080

$    406,945

$ 2,129,977

$ 1,826,334

Adjustments:

Installation revenue adjustment

507

(481)

6,975

3,910

17,745

Straight-line rent expense adjustment

(5,952)

6,323

1,585

12,164

16,263

Amortization of deferred financing costs and debt discounts

4,792

4,684

4,553

18,719

17,826

Contract cost adjustment

(16,349)

(9,835)

(17,380)

(46,601)

(52,888)

Stock-based compensation expense

105,829

98,446

107,519

407,536

403,983

Stock-based charitable contributions

34,974

2,543

49,013

Non-real estate depreciation expense

121,852

125,882

111,342

494,214

426,666

Amortization expense

51,864

52,297

51,438

209,063

204,755

Accretion expense

(1,096)

(1,097)

1,086

(1,473)

3,166

Recurring capital expenditures

(105,150)

(51,736)

(80,047)

(218,287)

(188,885)

(Gain) loss on debt extinguishment

(71)

360

(143)

35

(327)

Transaction costs

5,869

(775)

10,529

12,412

21,839

Impairment charges (1)

1,518

1,518

1,815

Income tax expense (benefit) adjustment (1)

1,462

(16,719)

19,806

(12,133)

(31,165)

Adjustments for AFFO from unconsolidated joint ventures

2,784

670

(1,364)

4,921

(2,262)

AFFO attributable to common shareholders

$    690,846

$    771,617

$    657,818

$ 3,018,518

$ 2,713,878

(1)  Impairment charges relate to the impairment of an indemnification asset resulting from the settlement of a pre-acquisition uncertain tax position, which was recorded as Other Income (Expense) on the Condensed Consolidated Statements of Operations. This impairment charge was offset by the recognition of tax benefits in the same amount, which was included within the Income tax expense adjustment line on the table above.

(14)

Below is how we reconcile from adjusted EBITDA to AFFO:

Adjusted EBITDA

$    920,457

$    935,931

$    838,740

$ 3,701,841

$ 3,369,700

Adjustments:

Interest expense, net of interest income

(74,958)

(78,274)

(75,738)

(307,795)

(320,069)

Amortization of deferred financing costs and debt discounts

4,792

4,684

4,553

18,719

17,826

Income tax expense

(42,825)

(19,985)

(48,807)

(155,250)

(124,792)

Income tax expense (benefit) adjustment (1)

1,462

(16,719)

19,806

(12,133)

(31,165)

Straight-line rent expense adjustment

(5,952)

6,323

1,585

12,164

16,263

Stock-based charitable contributions

34,974

2,543

49,013

Contract cost adjustment

(16,349)

(9,835)

(17,380)

(46,601)

(52,888)

Installation revenue adjustment

507

(481)

6,975

3,910

17,745

Recurring capital expenditures

(105,150)

(51,736)

(80,047)

(218,287)

(188,885)

Other expense

(1,227)

(5,972)

(28,895)

(11,214)

(51,417)

(Gain) loss on disposition of real estate property

1,642

(3,480)

437

1,898

7,134

Adjustments for unconsolidated JVs’ and non-controlling interests

8,423

5,710

1,615

22,159

7,574

Adjustments for impairment charges (1)

1,518

1,518

1,815

Adjustment for gain (loss) on sale of assets

24

3,933

5,046

(3,976)

AFFO attributable to common shareholders

$    690,846

$    771,617

$    657,818

$ 3,018,518

$ 2,713,878

(1)  Impairment charges relate to the impairment of an indemnification asset resulting from the settlement of a pre-acquisition uncertain tax position, which was recorded as Other Income (Expense) on the Condensed Consolidated Statements of Operations. This impairment charge was offset by the recognition of tax benefits in the same amount, which was included within the Income tax expense adjustment line on the table above.

(15)

The shares used in the computation of basic and diluted FFO and AFFO per share attributable to common shareholders is presented below:

Shares used in computing basic net income per share, FFO per share and AFFO per share

94,268

93,683

92,573

93,615

91,569

Effect of dilutive securities:

Employee equity awards

399

485

179

394

259

Shares used in computing diluted net income per share, FFO per share and AFFO per share

94,667

94,168

92,752

94,009

91,828

Basic FFO per share

$           5.56

$           6.00

$           4.40

$         22.75

$         19.94

Diluted FFO per share

$           5.54

$           5.97

$           4.39

$         22.66

$         19.89

Basic AFFO per share

$           7.33

$           8.24

$           7.11

$         32.24

$         29.64

Diluted AFFO per share

$           7.30

$           8.19

$           7.09

$         32.11

$         29.55

 

 

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Technology

CES 2025: The Global Stage for Innovation, Connecting the World, Creating the Future

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Where Technology Meets Humanity to Create Extraordinary Possibilities

LAS VEGAS, Jan. 10, 2025 /PRNewswire/ — CES® 2025, the most powerful tech event in the world, welcomed over 141,000 attendees from around the globe. With more than 4500 exhibitors, including 1400 startups, and more than 6000 media attendees, CES highlights the innovation and technology trends addressing global challenges and shaping the future.

“CES is where innovation comes to life,” said Gary Shapiro, CEO and Vice Chair, Consumer Technology Association (CTA)®, owner and producer of CES. “From the largest companies to trailblazing startups, the entire tech ecosystem is at the show. CES is the stage for groundbreaking product launches, transformative partnerships, and serendipitous business moments that define the future of technology.”

CES 2025 by the Numbers*

4500+ exhibitors, including 1400 startups141,000+ attendees, of which 40% were international from over 150 countries, regions, and territories6000+ global media, content creators, and industry analystsOver 60% of Fortune 500 companies300+ conference sessions with 1200+ speakers27,000+ news stories and content

*pre-audit figures

“From groundbreaking innovations that improve lives to transformative ideas that redefine industries, CES is a celebration of the art of the possible, showcasing how technology enriches our world and inspires a brighter future for all,” said Kinsey Fabrizio, President, CTA. “The evolution of CES has surged at this year’s show, where creativity, connectivity, and innovation inspire with visionary keynotes, thought-provoking conference sessions, and mind-blowing exhibits.”

As one of the most transparent trade shows, CES adheres to rigorous auditing standards established by UFI, The Global Association of the Exhibition Industry. To maintain the integrity of its reports, CES engages independent auditors, fostering trust among stakeholders.

“CES reaffirms its status as the largest audited annual business event,” said Fabrizio. “We look forward to releasing third-party confirmation in the spring, because at CTA we believe auditing is not just a nice-to-have, but the gold standard for global business events.” 

Catch all the highlights and announcements from CES 2025 – including all conference programming—via CES YouTube and the CES Tech Talk Podcast. Watch the CES 2025 State of the Industry Address here.

CES 2025 Highlights 

Artificial Intelligence – CES 2025 connected the dots between humanity and AI through powerful exhibits and programming. From AI-driven productivity tools to breakthroughs in medical advancements, products and services on the show floor demonstrated that artificial intelligence is not just a technology trend but a transformative force improving lives worldwide.
Exhibitors included: AMD, Hisense, LG, NVIDIA, Qualcomm, Samsung, Siemens, TCL

Digital Health – This year, CES 2025 saw tremendous energy at the Venetian where attendees witnessed the category’s seamless alignment with the smart living experience. CES has cemented itself as a premier convenor for the healthcare industry, bringing together trailblazers to explore biotechnology, telehealth, and wellness advancements that enhance patient care and longevity. Attendees celebrated the vibrant and dynamic environment that underscored how technology is transforming everyday life, particularly in health and wellness.
Exhibitors & Sponsors included: AARP, Abbott, Eyebot, FlowBeams, Lumia Health, OnMed, Panasonic, ResMed, Withings

Energy Transition – With the growth of high-power demand technologies like AI, cloud, and other data center innovations, the energy transition to zero carbon sources was a significant focus at CES 2025. Experimental energy solutions including battery and energy storage technologies, emerging energy sources like green hydrogen, and small modular nuclear reactors were highlights on the show floor.
Exhibitors included: Eaton, Jackery, Otrera, SK, Sony Honda Mobility

Mobility – Mobility innovation spanned construction, agriculture, marine tech, and advanced air travel. At CES 2025, self-driving and electric technologies enhanced planes and boats, and EV market growth brought new models from global OEMs to the show. Automation in construction and industry enhanced safety and addressed workforce gaps in labor-intensive roles.
Exhibitors included: Aptera Motors, BMW, Bosch, Brunswick, Caterpillar, Daedong, Garmin, Honda, Invo Station, John Deere, Kubota, Mobileye, Oshkosh, Scout Motors, Sumitomo Rubber, Scout Motors, Suzuki, Waymo, Xpeng AeroHT, Zeekr

Quantum – CES 2025 featured the latest innovations in quantum technologies, offering a glimpse into the future. Quantum technology uses properties of quantum mechanics to enable three distinct disciplines: improved networking, computing, and sensing. Innovations at the show demonstrated how quantum computing, working alongside AI, will allow for breakthroughs in research and computing for finance, chemistry, materials, logistics, and more.
Exhibitors included: Integrated Quantum Photonic, IonQ, QSIMPLUS, Quandela, SK

Sustainability – Sustainability is a crucial trend shaping technology innovation, especially in the context of energy transition. CES featured key advancements including new battery technologies, alternative material development like graphene, and off-grid renewable energy solutions. The show also put a spotlight on innovations such as synthetic microbes, bioplastics, and self-healing concrete that will contribute to sustainable construction.
Exhibitors included: Hydrific, Lyten, Melliens, Panasonic

Startups – Eureka Park was completely full, with 1400 startups from 39 countries including country pavilions representing Africa, European Union (EU), France, Italy, Israel, Japan, Korea, Netherlands, Switzerland, and Ukraine. Eureka Park is where innovators, investors, and the media meet to highlight and get hands-on with the technologies that will shape our collective future in core areas including accessibility, AI, digital health, and sustainability.

Keynotes 

NVIDIA
NVIDIA founder and CEO Jensen Huang on Monday drew 6300 attendees to unveil the GeForce RTX 50, surpassing the RTX 4090 in performance, and introduced Agentic AI, a real-time assistant to streamline consumer workflows. Huang also showcased the Cosmos World Foundation Model and generative AI tools to advance robotics navigation. Highlighting AI-driven innovation, Huang announced a partnership with Toyota to develop next-gen autonomous vehicles using the safety-certified NVIDIA DriveOS. 

Panasonic Holdings Corporation
Panasonic Holdings Group CEO Yuki Kusumi shared Panasonic Group’s vision for sustainability, artificial intelligence, and the health of future generations. DJ and record producer Steve Aoki jump-started the keynote with a performance before Mr. Kusumi, joined on stage by Marvel actor Anthony Mackie and other Panasonic Group leaders, delivered Panasonic’s “Well Into the Future” message. As an extension of the current Panasonic Well portfolio, Panasonic announced Umi, a holistic digital family wellness platform and coach. 

SiriusXM
Jennifer Witz, CEO, SiriusXM, joined Ashley Flowers, #1 female podcaster in the U.S. and host of the hit podcast Crime Junkie, on the C Space stage to deliver a keynote on the intersection of technology, creativity, and storytelling in audio. The conversation covered the importance of authenticity, how AI is changing the creative landscape, and adapting consumer interests.

X Corp.
Linda Yaccarino, CEO, X Corp., spoke with award-winning journalist Catherine Herridge about how the company is defining the future of digital communication. The conversation focused on X’s transformational work to create a “global newsroom in your pocket.” Yaccarino highlighted the significance of Meta’s announcement that the company will follow X’s lead in adopting a community notes approach to content moderation.

Delta Air Lines at Sphere
The first keynote at Sphere in CES history wowed over 8000 attendees! The immersive experience spotlighted Delta Air Lines’ innovations in seamless travel, onboard experiences, and the future of flight. Ed Bastian, CEO, Delta Air Lines, announced Delta Concierge and partnerships with Airbus, DraftKings, Joby, Uber, and YouTube. Special guests included actress Viola Davis, football legend Tom Brady, and GRAMMY-winning icon Lenny Kravitz.

Volvo Group
Martin Lundstedt, President and CEO, Volvo Group, emphasized the company’s commitment to building a safer, more sustainable, and more productive future. He called on policymakers and industry leaders to accelerate the transition to zero emission vehicles and discussed the company’s partnership with Aurora, aimed at advancing the development of safer, self-driving vehicles.

Accenture
Julie Sweet, Chair and CEO, Accenture, discussed how data, AI, and new ways of working are transforming industries and addressing global challenges with Julia Boorstin, CNBC senior media & tech correspondent. Sweet emphasized the need for businesses to build trust in AI technologies, especially as AI becomes increasingly autonomous in a society where trust is scarce. She also highlighted Accenture’s 25th annual Tech Vision, which explores the paths leaders can take when AI is ubiquitous.

Waymo
Tekedra Mawakana, co-CEO, Waymo, spoke with Bloomberg Technology’s Ed Ludlow on the company’s progress in developing its self-driving technology, Waymo Driver. Mawakana emphasized safety and expanding its autonomous ride-hailing service to new cities while showcasing advancements in technology and outlining a vision for a safer and more accessible future.

Conference Programming
CES 2025 offered more than 300 conference sessions, exploring how tech solves some of the world’s greatest challenges.

C Space – C Space at ARIA brought together thousands of senior-level marketing professionals to explore the intersection of technology, media, and branding. Attendees heard from leading industry innovators from brands like Reddit, NBCUniversal, and Microsoft Advertising about how technology is shaping the future of storytelling, consumer engagement, and brand strategy. C Space sessions emphasized the importance of creativity and authenticity in navigating the ever-evolving digital landscape.CES Creator Space – The first-ever CES Creator Space, presented by Sony, gathered storytellers to network, create content, and relax in between visiting exhibitors. Sessions led by industry experts helped creators elevate their craft, featuring discussions on storytelling, content monetization, brand partnerships, rights and ownership, and more.Digital Health Summit brought together the entire health ecosystem to learn, network, and explore the role technology plays in advancing and reforming medicine, healthcare, and consumer wellness.Great Minds series explored the intersection of technology and humanity. Speakers included C-Suite executives, philanthropists, influencers, government leaders, entrepreneurs, venture capitalists, and more.Innovation for All Track included dedicated programming focused on ensuring all voices are represented in technology and innovation, bringing together thought leaders for a series of engagement opportunities, dynamic session content, and networking events.Innovation Policy Summit advanced CTA’s Innovation Agenda. CES brought together policymakers and government guests from around the world to discuss domestic and global tech policy issues including AI, privacy, trade, competition, and more. Conference sessions featured high-level government speakers from the White House, Department of Commerce, Department of Homeland Security, Department of Transportation, Federal Communications Commission, Federal Maritime Commission, Federal Trade Commission, and more.Mobility Stage made its debut in West Hall, exploring the future of mobility tech on the CES show floor. Topics included AI, connected vehicles, software, supply chain, and more.Quantum Means Business, a multi-session conference track developed with Quantum World Congress, gathered some of the brightest quantum minds, showcasing breakthroughs that were once confined to science fiction. Industry leaders from IBM, Microsoft, and beyond shared insights into how quantum, paired with advancements in AI and machine learning, creates unparalleled opportunities across industries.Startup Stage in Eureka Park brought together visionaries to discuss AI, health, startup funding, and more.

Celebrities at CES
Celebrity brand ambassadors like Alexis Ohanian, Denim Richards, Karlie Kloss, Maria Shriver, Mark Cuban, Martha Stewart, Meghan Trainor, Sophia Bush, Stevie Wonder, Terry Crews, Tim Meadows, Tunde Oyeneyin, and will.i.am attended the show. Read more about CES 2025 celebrity guest participation here.

Visit CES or the CES App, sponsored by Panasonic, for keynotes, sessions, and product announcements. View the high-res image gallery and download B-roll. Check out news from this week with CTA press releases including CTA’s U.S. Consumer Technology One-Year Industry Forecast, CES 2025 Green Grants, CTA 2025 Global Innovation Scorecard, CES 2025 Open, and a new investment in Quantum Word Congress.

We’ll DIVE IN again as CES returns to Las Vegas January 6-9, 2026.

About CES®:
CES is the most powerful tech event in the world – the proving ground for breakthrough technologies and global innovators. This is where the world’s biggest brands do business and meet new partners, and the sharpest innovators hit the stage. Owned and produced by the Consumer Technology Association (CTA) ®, CES features every aspect of the tech sector. CES 2025 takes place Jan. 7-10, 2025, in Las Vegas. Learn more at CES.tech and follow CES on social

About Consumer Technology Association (CTA)®:
As North America’s largest technology trade association, CTA is the tech sector. Our members are the world’s leading innovators – from startups to global brands – helping support more than 18 million American jobs. CTA owns and produces CES® – the most powerful tech event in the world. Find us at CTA.tech. Follow us @CTAtech

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SOURCE Consumer Technology Association

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KNEX Technology CTO Gustavo Gonzalez Elected 2025 President-Elect of OATUG

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Gustavo Gonzalez, KNEX Technology’s CTO, has been elected 2025 President-Elect of OATUG, emphasizing his dedication to Oracle innovation, collaboration, and leadership, including Ascend 2025’s strategic initiatives.

IRVINE, Calif., Jan. 10, 2025 /PRNewswire-PRWeb/ — KNEX Technology, a leading Oracle Cloud solutions provider, is proud to announce that its Chief Technology Officer, Gustavo Gonzalez, has been elected as the 2025 President-Elect of the Oracle Applications & Technology Users Group (OATUG). This esteemed appointment highlights Gonzalez’s longstanding commitment to advancing innovation and collaboration within the Oracle community.

OATUG has played a pivotal role in my professional growth, and it is a privilege to contribute to this community which has enriched my career. As President-Elect, I look forward to collaborating with my peers to strengthen the Oracle user community and further its impact on businesses worldwide.

In his new role, Gonzalez will work closely with the OATUG leadership team throughout 2025, preparing to serve as OATUG President in 2026. He will focus on empowering Oracle professionals worldwide by fostering knowledge-sharing, community engagement, and professional development. OATUG, a globally recognized organization, supports its members in overcoming challenges, enhancing the value of Oracle solutions, and driving organizational success.

“OATUG has played a pivotal role in my professional growth, and it is a privilege to contribute to this community which has enriched my career,” said Gustavo Gonzalez. “As President-Elect, I look forward to collaborating with my peers to strengthen the Oracle user community and further its impact on businesses worldwide.”

Gonzalez’s election underscores his dedication to giving back to the Oracle ecosystem. A key focus of his role will include shaping OATUG’s strategic initiatives, such as the annual Ascend Conference, which unites Oracle users, thought leaders, and technology innovators for unparalleled learning and networking opportunities.

The upcoming Ascend 2025 Conference, scheduled for June 8–11 in Orlando, Florida, promises to build on the success of the 2024 event, which attracted more than 1,800 attendees. With early bird registration now open, Gonzalez aims to ensure the conference continues to deliver transformative insights and experiences for the Oracle community.

About OATUG

The Oracle Applications & Technology Users Group (OATUG) is the premier global organization for Oracle users, providing year-round education, networking, and advocacy. OATUG empowers its members to unlock the full potential of Oracle solutions, fostering innovation and collaboration across industries.

About KNEX Technology

KNEX Technology is a trusted leader in Oracle Cloud solutions, delivering cutting-edge products and services to help businesses achieve their objectives. Through its innovative approach and customer-focused strategies, KNEX enables organizations to navigate the complexities of today’s technology landscape. For more information, visit www.knextech.com.

Media Contact

Husna Gyasi, KNEX Technology, 1 (949) 232-0786, husna.ghayaisi@knextech.com, https://knextech.com/

Twitter, LinkedIn

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SOURCE KNEX Technology

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Dr. Gerard van Belle Appointed Director of Science at Lowell Observatory, Charting a Bold Future for Research

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Dr. van Belle to guide scientific exploration and foster innovation in the next era of astronomical research

FLAGSTAFF, Ariz., Jan. 10, 2025 /PRNewswire/ — Lowell Observatory is pleased to announce the appointment of Dr. Gerard van Belle as the new Director of Science. Van Belle, who has been an astronomer at the observatory since 2011, has been serving as the interim Director of Science.

In his new role, van Belle will lead a diverse team of astronomers and planetary scientists. He will spearhead the observatory’s new Science Vision, which focuses on advancing research capabilities and implementing cutting-edge technological improvements supporting Lowell’s leadership in astronomical research.

Under his leadership, the science department will continue to advance Lowell Observatory’s mission to pursue the study of astronomy, including the study of our solar system and its evolution, and to conduct pure research in astrophysical phenomena.

Van Belle’s own research focuses on fundamental stellar parameters, including the sizes, shapes, masses, distances, and temperatures of various types of stars. He is also renowned for his expertise in optical and near-infrared astronomical interferometry.

He earned his bachelor’s degree in physics from Whitman College in 1990, followed by a master’s degree from The Johns Hopkins University in 1993, and a Ph.D. in physics from the University of Wyoming in 1996.

Throughout his career, van Belle has been instrumental in the development and commissioning of major optical interferometers worldwide, including the Palomar Testbed Interferometer, the Keck Interferometer, and the Very Large Telescope Interferometer. His pioneering work in stellar surface imaging earned him the inaugural Edward Stone Award for Outstanding Research Publication at NASA’s Jet Propulsion Laboratory in 2002.

In 2011, van Belle joined Lowell Observatory’s science staff, where he applied high-resolution astronomical techniques to detect nearby exoplanets and map stellar surfaces. He served as the Director of the Navy Precision Optical Interferometer (NPOI) in Flagstaff, Arizona, from 2017 to 2018, and subsequently as its Chief Scientist until 2022.

Notably, van Belle was among the astronomers who voted against the definition of ‘planet’ advanced during the 2006 International Astronomical Union (IAU) conference in Prague, which relegated Pluto to being a ‘dwarf planet’ (which according to the IAU resolution is not a planet).

His extensive experience and dedication to advancing astronomical research make him a valuable leader for Lowell Observatory’s scientific endeavors.

“I am honored to take on this role at such a pivotal time for Lowell Observatory,” said van Belle. “Our Science Vision will guide us in exploring new frontiers in astronomy while strengthening our commitment to public engagement and education.”

Executive Director Dr. Amanda Bosh expressed her confidence in van Belle’s leadership: “Gerard’s extensive experience and dedication to our mission make him the ideal person to lead our scientific endeavors. I look forward to working closely with him as we embark on this exciting new chapter for Lowell Observatory.”

For more information about Lowell Observatory’s research and public programs, visit lowell.edu.

About Lowell Observatory
Founded in 1894, Lowell Observatory in Flagstaff, Arizona, is a renowned nonprofit research institution. It is the site of historic and groundbreaking discoveries, including the first evidence of the expanding universe and the discovery of Pluto. Today, Lowell’s astronomers utilize global ground-based and space telescopes, along with NASA spacecraft, for diverse astronomical and planetary science research. The observatory hosts more than 100,000 visitors annually for educational tours, presentations, and telescope viewing through a suite of world-class public telescopes.

View original content to download multimedia:https://www.prnewswire.com/news-releases/dr-gerard-van-belle-appointed-director-of-science-at-lowell-observatory-charting-a-bold-future-for-research-302348440.html

SOURCE Lowell Observatory

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