Global data center colocation provider Equinix has announced its financial results for the fourth quarter and the entire of 2023, setting an admirable benchmark with over $8 billion in revenue and extending its series of quarterly revenue growth to 21 years. The company has reported a 13% rise in annual revenues on an as-reported basis for 2023, reaching $8.2 billion – a number that adjusts to a 15% increase when normalized for constant currency.
The operational success of Equinix would be further highlighted by the completion of nearly 17,000 contracts with more than 5,900 clients, which reflects on its strong market position and the trust it has built among its extensive colocation customer base. An astonishing 90 megawatt of xScale hyperscale leasing was accomplished, driven by increased demand from hyperscale companies for support in cloud deployment and artificial intelligence (AI).
Looking into the detailed financial results of Equinix for 2023, the company has reported an operational income of $1.443 billion, which saw a 20% growth from the previous year, and a net income of $969 million, a 38% increase. This rise is mainly attributed to additional income and strong operational performance, even amid an environment of elevated income tax. Net income per share surged by 34% to $10.31.
“Equinix saw another strong year in 2023 – we recorded more than $8 billion of revenues, achieving an amazing 21 years of consistent quarterly revenue growth, all while driving AFFO per share performance above our long-term expectations. We made significant headway on our ambitious agenda, setting up the business to leverage the immense opportunities that are poised ahead,” said Charles Meyers, CEO and President at Equinix. “Digital transformation, especially in an AI-driven landscape, is as important as ever to our customers. In light of this, the relevance of Platform Equinix and its strong competitive advantages has never been clearer. We aim to maintain our focus on developing a platform that empowers our customers to build hybrid and multicloud infrastructure based on their needs and demand, and with the ecosystem of partners they require.”
Equinix forecasts that its revenue for 2024 would oscillate between $8.793 billion and $8.893 billion. This implies a modest growth of 7 to 9%, or 7 to 8% if adjusted for a static currency value and dismissing the effect of power pass-through on annual growth. The company expects revenues of around $2.127 to $2.147 billion for the initial quarter of 2024, while the projected Adjusted EBITDA, factoring in foreign exchange benefits and recent acquisition-related costs, may settle between $960 million and $980 million.
The anticipatory projection from Equinix suggests that the Adjusted EBITDA margin could touch 47% in 2024, with the Adjusted Funds From Operations (AFFO) lying somewhere in the range of $3.306 billion to $3.376 billion. This would denote a surge of 9 to 12% compared to the previous year. This outlook is a reflection of the company’s operational efficiency, strategically placed investments, and proven finesse in navigating the complexities of financing and advancement in digital infrastructure.
For fueling future growth and infrastructure enhancement, Equinix plans to put substantial capital investments in both regular and special sectors. This includes the expenditures relating to xScale. These proposed investments are expected to reinforce Equinix’s status as a foundation of the digital economy, enabling it to continue supplying its global customers with superior services and infrastructure solutions.
