EX-99.1 2 d116344dex991.htm EX-99.1
Exhibit 99.1

Equinix Reports Fourth Quarter And Full Year 2020 Results



World's Digital Infrastructure Company™ Delivers 18th Year of Consecutive Quarterly Revenue Growth

REDWOOD CITY, Calif., Feb. 10, 2021 /PRNewswire/ --

  • 2020 annual revenues increased 8% year-over-year on both an as-reported and normalized and constant currency basis to approximately $6 billion. This represents the company's 72nd consecutive quarter of revenue growth
  • Delivered record channel bookings in Q4, accounting for more than 35% of total bookings
  • Continues to expand platform, building across 44 projects in 30 markets and 20 countries

Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company, today reported results for the quarter and year ended December 31, 2020. 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.

2020 Results Summary

  • Revenues
    • $5.999 billion, an 8% increase over the previous year on both an as-reported and normalized and constant currency basis
  • Operating Income
    • $1.053 billion, a 10% decrease from the previous year, and an operating margin of 18%, in part due to increased acquisition costs and the prior year's gain on sale of assets contributed to the EMEA joint venture
  • Adjusted EBITDA
    • $2.853 billion, a 48% adjusted EBITDA margin
    • Includes $17 million of integration costs
  • Net Income and Net Income per Share attributable to Equinix
    • $370 million, a 27% decrease from the previous year, primarily due to acquisition costs and losses on debt extinguishment related to balance sheet refinancing initiatives
    • $4.18 per share, a 30% decrease from the previous year
  • AFFO and AFFO per Share
    • $2.189 billion, a 13% increase over the previous year or 18% on a normalized and constant currency basis
    • $24.76 per share, a 9% increase over the previous year or 12% on a normalized and constant currency basis
    • Includes $17 million of integration costs

2021 Annual Guidance Summary

  • Revenues
    • $6.580 - $6.640 billion, a 10 - 11% increase over the previous year or a normalized and constant currency increase of 7 - 8%
  • Adjusted EBITDA
    • $3.067 - $3.127 billion, a 47% adjusted EBITDA margin
    • Includes operational efficiencies offset by investment in new products and services, including xScaleTM, scaling the business and expansion drag
    • Assumes $30 million of integration costs
  • AFFO and AFFO per Share
    • $2.413 - $2.463 billion, an increase of 10 - 12% over the previous year or a normalized and constant currency increase of 9 - 11%
    • $26.72 - $27.28 per share, an increase of 8 - 10% 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
    • Assumes $30 million of integration costs

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.

Quote

Charles Meyers, President and CEO, Equinix:

"While 2020 brought about a landscape of challenges and change, Equinix continued to innovate and adapt, serving as a trusted partner to our customers on their digital transformation journey. We continued to extend our market leadership, delivering approximately $6 billion of revenue and driving healthy growth both on the top-line and at the per-share level. As we look ahead, I am as optimistic as ever about our business and the expanding opportunity to serve our customers, partners and shareholders as the world's digital infrastructure company."

Business Highlights

  • Equinix continues to invest in its platform services, introducing new product capabilities and expanding market availability, helping to lower the barriers to entry and improving the value of digital transformation for new and existing customers:
    • On October 6, Equinix launched the availability of Equinix Metal™, a fully automated and interconnected Bare Metal as a Service offering. Today, Equinix Metal is available in eight global metros and is expected to be available in 18 global metros in early 2021.
    • On December 8, Equinix introduced transformative capabilities on Equinix FabricTM and Network Edge, which ease the way enterprises connect their digital infrastructure. With these new capabilities, Equinix Fabric now has native integration built into both Network Edge and Equinix Metal over the Equinix platform and is available in 49 strategic metros across five continents.
  • Equinix continued to expand the reach of its global platform and operates across 63 metros in 26 countries. In 2020, Equinix completed 16 new expansions, its most active build year ever, with a sizeable expansion roadmap planned for 2021 to meet growing customer demand. New expansions planned in 2021 include the Geneva, Genoa, Madrid, Manchester, Muscat, New York and Osaka metros, with 44 large projects underway across 30 markets and 20 countries.
  • Interconnection revenues grew 14% year-over-year on a normalized and constant currency basis driven by strong customer adoption of Equinix Fabric, good traction in internet exchange markets and solid interconnection net adds. Today, Equinix has the most comprehensive global interconnection platform, now comprising over 392,000 physical and virtual interconnections. In Q4, Equinix added 7,700 interconnections, more interconnections than its next 15 competitors combined, driven by continued strength in network and cloud connectivity. Equinix Internet Exchange® experienced peak traffic, up 8% quarter-over-quarter and 43% year-over-year, driven by cloud, content and gaming segments.
  • In Q4, the Network vertical achieved record bookings, driven by telecom carriers upgrading their core and edges to address the shifting traffic patterns resulting from the pandemic, as well as continued strength in enterprise resale. The Financial Services vertical also achieved a record quarter, led by wins and expansions with multinational financial services companies, with particular strength in the Americas region, including the greater New York City metro.
  • Equinix continues its indirect selling initiatives, as the company pursues high-value strategic channel partnerships. In Q4, channel activity accounted for approximately 35% of bookings. Strength was driven by Equinix's hyperscale and technology alliance partners, with wins across a wide range of industry segments with projects focused on digital transformation efforts, as well as COVID-19 pandemic responses.
  • Equinix continues to make significant progress with the company's hyperscale strategy with eight projects currently underway across all three regions and a strong pipeline of customer demand. In Q4, Equinix completed the formation of another greater than US$1.0 billion joint venture in the form of a limited liability partnership with GIC, Singapore's sovereign wealth fund, to develop and operate xScaleTM data centers in Japan.

COVID-19 Update

Many of Equinix's International Business ExchangeTM (IBX®) data centers have been identified as "essential businesses" or "critical infrastructure" by local governments for purposes of remaining open during the COVID-19 pandemic, and all IBX data centers remain operational at the time of filing of this press release. Precautionary measures have been implemented during the COVID-19 pandemic to minimize the risk of operational impact and to protect the health and safety of employees, customers, partners and communities. These include implementing tools such as an appointment-based system to control timing and frequency of visits and encouraging customers to leverage IBX technicians via Smart Hands® in order to restrict visits and minimize the number of people and the amount of time spent in the IBX data centers. For the health and safety of Equinix employees, the company's corporate offices were closed in March 2020, and non-IBX employees across the globe were instructed to work from home until further notice. A phased plan has been announced for a return-to-office for non-IBX attached sites, and the company has been following this plan to open certain offices with occupancy limits as local conditions allow. Additionally, the company has decided to continue to limit employee travel and has made the decision to either postpone or virtualize global events in response to the COVID-19 pandemic.

Looking ahead, the full impact of the COVID-19 pandemic on the company's financial condition or results of operations remains uncertain and will depend on a number of factors, including its impact on Equinix customers, partners and vendors and the impact on, and functioning of, the global financial markets. The company's past results may not be indicative of future performance, and historical trends may differ materially. Additional information pertaining to the impact of the COVID-19 pandemic on Equinix and the company's response thereto will be provided in the upcoming Form 10-K for the year ended December 31, 2020.

Business Outlook

For the first quarter of 2021, Equinix expects revenues to range between $1.587 and $1.607 billion, an increase of 2% quarter-over-quarter at the midpoint or approximately 1% on a normalized and constant currency basis, including a step-down in non-recurring revenue due to timing of customer installations. This guidance includes a foreign currency benefit of $17 million when compared to the average FX rates in Q4 2020. Adjusted EBITDA is expected to range between $737 and $757 million, which includes a $9 million foreign currency benefit when compared to the average FX rates in Q4 2020, and higher seasonal salary and benefit costs of $14 million attributed to the FICA reset. Adjusted EBITDA includes $9 million of integration costs related to acquisitions. Recurring capital expenditures are expected to range between $17 and $27 million.

For the full year of 2021, total revenues are expected to range between $6.580 and $6.640 billion, a 10 - 11% increase over the previous year, or a normalized and constant currency increase of 7 - 8%. This guidance includes a foreign currency benefit of $106 million when compared to the average FX rates in 2020. Adjusted EBITDA is expected to range between $3.067 and $3.127 billion, an adjusted EBITDA margin of 47%. This adjusted EBITDA includes the impact from strategic investments and a foreign currency benefit of $56 million when compared to the average FX rates in 2020. For the year, the company expects to incur $30 million in integration costs related to acquisitions. AFFO is expected to range between $2.413 and $2.463 billion, an increase of 10 - 12% over the previous year, or a normalized and constant currency increase of 9 - 11%. This AFFO guidance includes $30 million in integration costs related to acquisitions. AFFO per share is expected to range between $26.72 and $27.28, an increase of 8 - 10% 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, excluding xScale-related costs, are expected to range between $2.125 and $2.315 billion and recurring capital expenditures are expected to approximate $180 million. xScale capital expenditures are expected to approximate $250 million.

The U.S. dollar exchange rates used for 2021 guidance, taking into consideration the impact of our current foreign currency hedges, have been updated to $1.19 to the Euro, $1.33 to the Pound, S$1.32 to the U.S. dollar, ¥103 to the U.S. dollar and R$5.19 to the U.S. dollar. The Q4 2020 global revenue breakdown by currency for the Euro, British Pound, Singapore Dollar, Japanese Yen and Brazilian Real is 20%, 10%, 7%, 7% and 2%, 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 2020 Results Conference Call and Replay Information

Equinix will discuss its quarterly results for the period ended December 31, 2020, along with its future outlook, in its quarterly conference call on Wednesday, February 10, 2021, 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, April 28, 2021, by dialing 1-203-369-1057 and entering passcode (2021). In addition, the webcast will be available on the company's website 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, enabling digital leaders to harness a trusted platform to bring together and interconnect the foundational infrastructure that powers their success. Equinix enables today's businesses to access all the right places, partners and possibilities they need to accelerate advantage. With Equinix, they can scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value.

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 income from operations excluding 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 an IBX data center, and do not reflect its current or future cash spending levels to support its business. Its IBX 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, although Equinix may incur initial construction costs in future periods with respect to additional IBX data centers, and future capital expenditures remain minor relative to the initial investment. This is a trend it expects to continue. In addition, depreciation is also based on the estimated useful lives of the IBX data centers. These estimates could vary from actual performance of the asset, are based on historic costs incurred to build out our IBX 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 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 long-lived 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 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, 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 excludes recurring capital expenditures, which represent expenditures to extend the useful life of its IBX data centers or other assets that are required to support current revenues. Equinix also 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 COVID-19 pandemic; the challenges of acquiring, operating and constructing IBX 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 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,
2020

September 30,
2020

December 31,
2019

December 31,
2020

December 31,
2019

Recurring revenues

$

1,466,126

$

1,432,072

$

1,337,977

$

5,658,030

$

5,238,186

Non-recurring revenues

97,989

87,695

79,158

340,515

323,954

Revenues

1,564,115

1,519,767

1,417,135

5,998,545

5,562,140

Cost of revenues

830,735

767,979

725,636

3,074,340

2,810,184

Gross profit

733,380

751,788

691,499

2,924,205

2,751,956

Operating expenses:








Sales and marketing

187,055

172,727

160,556

718,356

651,046

General and administrative

293,144

279,350

245,504

1,090,981

935,018

Transaction costs

24,948

5,840

16,545

55,935

24,781

Impairment charges

—

7,306

(233)

7,306

15,790

Gain on asset sales

(373)

(1,785)

(43,847)

(1,301)

(44,310)

Total operating expenses

504,774

463,438

378,525

1,871,277

1,582,325

Income from operations

228,606

288,350

312,974

1,052,928

1,169,631

Interest and other income (expense):








Interest income

1,244

1,452

7,532

8,654

27,697

Interest expense

(90,912)

(99,736)

(117,617)

(406,466)

(479,684)

Other income (expense)

(2,697)

162

12,336

6,913

27,778

Loss on debt extinguishment

(44,001)

(93,494)

(52,758)

(145,804)

(52,825)

Total interest and other, net

(136,366)

(191,616)

(150,507)

(536,703)

(477,034)

Income before income taxes

92,240

96,734

162,467

516,225

692,597

Income tax expense

(41,304)

(29,903)

(37,632)

(146,151)

(185,352)

Net income

50,936

66,831

124,835

370,074

507,245

Net (income) loss attributable to non-controlling interests

58

(144)

160

(297)

205

Net income attributable to Equinix

$

50,994

$

66,687

$

124,995

$

369,777

$

507,450

Net income per share attributable to Equinix:





Basic net income per share

$

0.57

$

0.75

$

1.47

$

4.22

$

6.03

Diluted net income per share

$

0.57

$

0.74

$

1.46

$

4.18

$

5.99

Shares used in computing basic net income per share

89,113

88,806

85,289

87,700

84,140

Shares used in computing diluted net income per share

89,726

89,519

85,831

88,410

84,679












EQUINIX, INC.

Condensed Consolidated Statements of Comprehensive Income

(in thousands)

(unaudited)



Three Months Ended

Twelve Months Ended


December 31,
2020

September 30,
2020

December 31,
2019

December 31,
2020

December 31,
2019

Net income

$

50,936

$

66,831

$

124,835

$

370,074

$

507,245

Other comprehensive income (loss), net of tax:

Foreign currency translation adjustment ("CTA") gain (loss)

481,625

299,441

283,185

548,560

(58,334)

Unrealized loss on cash flow hedges

(27,824)

(33,842)

(22,928)

(82,790)

(3,842)

Net investment hedge CTA gain (loss)

(265,340)

(227,101)

(154,596)

(444,553)

73,294

Net actuarial gain (loss) on defined benefit plans

8

22

(22)

85

(48)

Total other comprehensive income, net of tax

188,469

38,520

105,639

21,302

11,070

Comprehensive income, net of tax

239,405

105,351

230,474

391,376

518,315

Net (income) loss attributable to non-controlling interests

58

(144)

160

(297)

205

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

(36)

(30)

(16)

(57)

19

Comprehensive income attributable to Equinix

$

239,427

$

105,177

$

230,618

$

391,022

$

518,539



EQUINIX, INC.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)



December 31, 2020

December 31, 2019

Assets


Cash and cash equivalents

$

1,604,869

$

1,869,577

Short-term investments

4,532

10,362

Accounts receivable, net

676,738

689,134

Other current assets

355,016

303,543

Total current assets

2,641,155

2,872,616

Property, plant and equipment, net

14,503,084

12,152,597

Operating lease right-of-use assets

1,475,057

1,475,367

Goodwill

5,472,553

4,781,858

Intangible assets, net

2,170,945

2,102,389

Other assets

776,047

580,788

Total assets

$

27,038,841

$

23,965,615

Liabilities and Stockholders' Equity


Accounts payable and accrued expenses

$

876,862

$

760,718

Accrued property, plant and equipment

301,155

301,535

Current portion of operating lease liabilities

154,207

145,606

Current portion of finance lease liabilities

137,683

75,239

Current portion of mortgage and loans payable

82,289

77,603

Current portion of senior notes

150,186

643,224

Other current liabilities

354,368

153,938

Total current liabilities

2,056,750

2,157,863

Operating lease liabilities, less current portion

1,308,627

1,315,656

Finance lease liabilities, less current portion

1,784,816

1,430,882

Mortgage and loans payable, less current portion

1,287,254

1,289,434

Senior notes, less current portion

9,018,277

8,309,673

Other liabilities

948,999

621,725

Total liabilities

16,404,723

15,125,233

Common stock

89

86

Additional paid-in capital

15,028,357

12,696,433

Treasury stock

(122,118)

(144,256)

Accumulated dividends

(5,119,274)

(4,168,469)

Accumulated other comprehensive loss

(913,368)

(934,613)

Retained earnings

1,760,302

1,391,425

Total Equinix stockholders' equity

10,633,988

8,840,606

Non-controlling interests

130

(224)

Total stockholders' equity

10,634,118

8,840,382

Total liabilities and stockholders' equity

$

27,038,841

$

23,965,615








Ending headcount by geographic region is as follows:


Americas headcount

4,599

3,672

EMEA headcount

3,405

2,941

Asia-Pacific headcount

2,009

1,765

Total headcount

10,013

8,378



EQUINIX, INC.

Summary of Debt Principal Outstanding

(in thousands)

(unaudited)



December 31, 2020

December 31, 2019


Finance lease liabilities

$

1,922,499

$

1,506,121




Term loans

1,288,779

1,282,302

Mortgage payable and other loans payable

80,764

84,735

Plus: debt discount and issuance costs, net

1,427

3,081

Total mortgage and loans payable principal

1,370,970

1,370,118




Senior notes

9,168,463

8,952,897

Plus: debt issuance costs

92,773

78,030

Less: debt premium

(186)

(1,716)

Total senior notes principal

9,261,050

9,029,211




Total debt principal outstanding

$

12,554,519

$

11,905,450




EQUINIX, INC.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Three Months Ended

Twelve Months Ended

December 31,
2020

September 30,
2020

December 31,
2019

December 31,
2020

December 31,
2019









Cash flows from operating activities:






Net income

$

50,936

$

66,831

$

124,835

$

370,074

$

507,245

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


Depreciation, amortization and accretion

378,859

362,286

328,295

1,427,010

1,285,296

Stock-based compensation

79,361

75,248

62,126

294,952

236,539

Amortization of debt issuance costs and debt discounts and premiums

3,951

3,884

3,613

15,739

13,042

Loss on debt extinguishment

44,001

93,494

52,758

145,804

52,825

Gain on asset sales

(373)

(1,785)

(43,847)

(1,301)

(44,310)

Impairment charges

—

7,306

(233)

7,306

15,790

Other items

(158)

(2,518)

3,831

18,071

19,620

Changes in operating assets and liabilities:






Accounts receivable

63,516

(23,871)

96,480

25,412

(26,909)

Income taxes, net

(2,448)

(32,054)

(40,649)

(22,641)

32,495

Accounts payable and accrued expenses

21,955

61,410

(34,588)

57,801

(27,928)

Operating lease right-of-use assets

39,039

38,319

40,805

153,650

149,031

Operating lease liabilities

(35,472)

(35,300)

(40,032)

(142,863)

(152,091)

Other assets and liabilities

42,981

(81,088)

(23,724)

(39,188)

(67,917)

Net cash provided by operating activities

686,148

532,162

529,670

2,309,826

1,992,728

Cash flows from investing activities:




Purchases, sales and maturities of investments, net

(62,099)

3,969

(5,776)

(98,411)

(20,523)

Business acquisitions, net of cash and restricted cash acquired

(702,024)

—

—

(1,180,272)

(34,143)

Purchases of real estate

(75,720)

(41,895)

(104,865)

(200,182)

(169,153)

Purchases of other property, plant and equipment

(834,330)

(565,285)

(714,561)

(2,282,504)

(2,079,521)

Proceeds from asset sales

334,397

—

358,656

334,397

358,773

Net cash used in investing activities

(1,339,776)

(603,211)

(466,546)

(3,426,972)

(1,944,567)







Cash flows from financing activities:






Proceeds from employee equity awards

—

31,727

—

62,118

52,018

Payment of dividend distributions

(237,756)

(240,690)

(210,360)

(947,933)

(836,164)

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

—

196,477

—

1,981,375

1,660,976

Proceeds from loans payable

—

—

—

750,790

—

Proceeds from senior notes, net of debt discounts

1,845,891

—

2,797,906

4,431,627

2,797,906

Repayment of finance lease liabilities

(40,842)

(31,765)

(63,701)

(115,288)

(126,486)

Repayment of mortgage and loans payable

(20,857)

(19,431)

(19,431)

(829,466)

(73,227)

Repayment of senior notes

(1,923,000)

(1,947,050)

(2,056,289)

(4,363,761)

(2,206,289)

Debt extinguishment costs

(29,296)

(77,785)

(43,311)

(111,700)

(43,311)

Debt issuance costs

(15,970)

—

(23,341)

(42,236)

(23,341)

Other financing activities

—

—

—

—

—

Net cash provided by (used in) financing activities

(421,830)

(2,088,517)

381,473

815,526

1,202,082

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

35,065

18,513

21,883

40,702

8,766

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

(1,040,393)

(2,141,053)

466,480

(260,918)

1,259,009

Cash, cash equivalents and restricted cash at beginning of period

2,666,088

4,807,141

1,420,133

1,886,613

627,604

Cash, cash equivalents and restricted cash at end of period

$

1,625,695

$

2,666,088

$

1,886,613

$

1,625,695

$

1,886,613

Supplemental cash flow information:





Cash paid for taxes

$

27,385

$

55,473

$

47,507

$

143,934

$

136,583

Cash paid for interest

$

132,034

$

115,174

$

141,140

$

498,408

$

553,815











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

$

(591,529)

$

(75,018)

$

68,900

$

(1,018,735)

$

68,684











Adjusted free cash flow (adjusted negative free cash flow) (2)

$

186,215

$

(33,123)

$

173,765

$

361,719

$

271,980






















(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

$

686,148

$

532,162

$

529,670

$

2,309,826

$

1,992,728

Net cash used in investing activities as presented above

(1,339,776)

(603,211)

(466,546)

(3,426,972)

(1,944,567)

Purchases, sales and maturities of investments, net

62,099

(3,969)

5,776

98,411

20,523

Free cash flow (negative free cash flow)

$

(591,529)

$

(75,018)

$

68,900

$

(1,018,735)

$

68,684











(2)

We define adjusted free cash flow (adjusted negative free cash flow) as free cash flow (negative free cash flow) as defined above, excluding any purchases of 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)

$

(591,529)

$

(75,018)

$

68,900

$

(1,018,735)

$

68,684

Less business acquisitions, net of cash and restricted cash acquired

702,024

—

—

1,180,272

34,143

Less purchases of real estate

75,720

41,895

104,865

200,182

169,153

Adjusted free cash flow (adjusted negative free cash flow)

$

186,215

$

(33,123)

$

173,765

$

361,719

$

271,980



EQUINIX, INC.

Non-GAAP Measures and Other Supplemental Data

(in thousands)

(unaudited)

Three Months Ended  

Twelve Months Ended  

December 31,
2020  

September 30,
2020  

December 31,
2019  

December 31,
2020  

December 31,

2019  


Recurring revenues

$

1,466,126

$

1,432,072

$

1,337,977

$

5,658,030

$

5,238,186


Non-recurring revenues

97,989

87,695

79,158

340,515

323,954


Revenues (1)

1,564,115

1,519,767

1,417,135

5,998,545

5,562,140










Cash cost of revenues (2)

539,667

494,187

477,144

1,991,341

1,851,458


Cash gross profit (3)

1,024,448

1,025,580

939,991

4,007,204

3,710,682










Cash operating expenses (4)(7):








Cash sales and marketing expenses (5)

119,805

106,317

100,430

452,800

401,877


Cash general and administrative

    expenses (6)

193,241

182,018

163,701

701,506

621,078


Total cash operating expenses (4)(7)

313,046

288,335

264,131

1,154,306

1,022,955










Adjusted EBITDA (8)

$

711,402

$

737,245

$

675,860

$

2,852,898

$

2,687,727










Cash gross margins (9)

65%

67%

66%

67%

67%










Adjusted EBITDA

    margins (10)

45%

49%

48%

48%

48%










Adjusted EBITDA flow-through rate (11)

(58)%

35%

6%

38%

56%










FFO (12)

$

301,747

$

298,183

$

304,025

$

1,300,630

$

1,314,556










AFFO (13) (14)

$

516,965

$

579,682

$

472,611

$

2,189,145

$

1,931,122










Basic FFO per share (15)

$

3.39

$

3.36

$

3.56

$

14.83

$

15.62










Diluted FFO per share (15)

$

3.36

$

3.33

$

3.54

$

14.71

$

15.52










Basic AFFO per share (15)

$

5.80

$

6.53

$

5.54

$

24.96

$

22.95










Diluted AFFO per share(15)

$

5.76

$

6.48

$

5.51

$

24.76

$

22.81




















(1)

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















Americas Revenues:


















Colocation

$

472,227

$

450,030

$

443,991

$

1,820,709

$

1,769,654


Interconnection

161,334

156,677

149,474

622,327

576,709


Managed infrastructure

36,787

28,954

21,485

120,159

90,262


Other

5,393

3,911

5,020

19,605

19,743


Recurring revenues

675,741

639,572

619,970

2,582,800

2,456,368


Non-recurring revenues

36,361

32,760

33,696

124,958

131,359


Revenues

$

712,102

$

672,332

$

653,666

$

2,707,758

$

2,587,727





















EMEA Revenues:




















Colocation

$

369,523

$

391,773

$

359,423

$

1,504,770

$

1,395,544


Interconnection

58,345

55,700

44,350

213,490

161,552


Managed infrastructure

37,883

30,690

28,495

127,722

113,631


Other

4,561

5,581

3,458

18,738

10,019


Recurring revenues

470,312

483,744

435,726

1,864,720

1,680,746


Non-recurring revenues

40,995

34,339

28,063

131,669

125,698


Revenues

$

511,307

$

518,083

$

463,789

$

1,996,389

$

1,806,444










Asia-Pacific Revenues:

















Colocation

$

246,864

$

236,762

$

219,306

$

933,522

$

857,009


Interconnection

51,065

48,565

41,180

187,441

155,328


Managed infrastructure

22,876

22,614

21,795

89,464

88,735


Other

(732)

815

—

83

—


Recurring revenues

320,073

308,756

282,281

1,210,510

1,101,072


Non-recurring revenues

20,633

20,596

17,399

83,888

66,897


Revenues

$

340,706

$

329,352

$

299,680

$

1,294,398

$

1,167,969










Worldwide Revenues:

















Colocation

$

1,088,614

$

1,078,565

$

1,022,720

$

4,259,001

$

4,022,207


Interconnection

270,744

260,942

235,004

1,023,258

893,589


Managed infrastructure

97,546

82,258

71,775

337,345

292,628


Other

9,222

10,307

8,478

38,426

29,762


Recurring revenues

1,466,126

1,432,072

1,337,977

5,658,030

5,238,186


Non-recurring revenues

97,989

87,695

79,158

340,515

323,954


Revenues

$

1,564,115

$

1,519,767

$

1,417,135

$

5,998,545

$

5,562,140




















(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

$

830,735

$

767,979

$

725,636

$

3,074,340

$

2,810,184


Depreciation, amortization and accretion expense

(283,029)

(265,936)

(241,753)

(1,050,106)

(933,371)


Stock-based compensation expense

(8,039)

(7,856)

(6,739)

(32,893)

(25,355)


Cash cost of revenues

$

539,667

$

494,187

$

477,144

$

1,991,341

$

1,851,458










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















Americas cash cost of revenues

$

217,170

$

196,731

$

184,029

$

793,601

$

729,100


EMEA cash cost of revenues

199,827

189,423

187,972

754,056

720,890


Asia-Pacific cash cost of revenues

122,670

108,033

105,143

443,684

401,468


Cash cost of revenues

$

539,667

$

494,187

$

477,144

$

1,991,341

$

1,851,458



(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

$

480,199

$

452,077

$

406,060

$

1,809,337

$

1,586,064


Depreciation and amortization expense

(95,830)

(96,350)

(86,542)

(376,904)

(351,925)


Stock-based compensation expense

(71,323)

(67,392)

(55,387)

(278,127)

(211,184)


Cash operating expense

$

313,046

$

288,335

$

264,131

$

1,154,306

$

1,022,955









(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

$

187,055

$

172,727

$

160,556

$

718,356

$

651,046


Depreciation and amortization expense

(48,745)

(48,780)

(47,659)

(192,661)

(192,450)


Stock-based compensation expense

(18,505)

(17,630)

(12,467)

(72,895)

(56,719)


Cash sales and marketing expense

$

119,805

$

106,317

$

100,430

$

452,800

$

401,877































(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

$

293,144

$

279,350

$

245,504

$

1,090,981

$

935,018


Depreciation and amortization expense

(47,085)

(47,570)

(38,883)

(184,243)

(159,475)


Stock-based compensation expense

(52,818)

(49,762)

(42,920)

(205,232)

(154,465)


Cash general and administrative expense

$

193,241

$

182,018

$

163,701

$

701,506

$

621,078









(7)

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










Americas cash SG&A

$

195,180

$

185,051

$

155,561

$

728,135

$

621,005


EMEA cash SG&A

74,205

65,444

69,072

268,087

257,574


Asia-Pacific cash SG&A

43,661

37,840

39,498

158,084

144,376


Cash SG&A

$

313,046

$

288,335

$

264,131

$

1,154,306

$

1,022,955









(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:










Income from operations

$

228,606

$

288,350

$

312,974

$

1,052,928

$

1,169,631


Depreciation, amortization and accretion expense

378,859

362,286

328,295

1,427,010

1,285,296


Stock-based compensation expense

79,362

75,248

62,126

311,020

236,539


Impairment charges

—

7,306

(233)

7,306

15,790


Transaction costs

24,948

5,840

16,545

55,935

24,781


Gain on asset sales

(373)

(1,785)

(43,847)

(1,301)

(44,310)


Adjusted EBITDA

$

711,402

$

737,245

$

675,860

$

2,852,898

$

2,687,727










The geographic split of our adjusted EBITDA is presented below:















Americas income from operations

$

22,066

$

50,657

$

136,236

$

178,454

$

413,936


Americas depreciation, amortization and accretion expense

195,437

182,899

165,580

731,979

668,727


Americas stock-based compensation expense

59,956

55,044

44,878

234,015

170,102


Americas impairment charges

—

—

(233)

—

15,790


Americas transaction costs

23,634

3,735

13,378

43,922

14,830


Americas gain on asset sales

(1,341)

(1,785)

(45,763)

(2,348)

(45,763)


Americas adjusted EBITDA

$

299,752

$

290,550

$

314,076

$

1,186,022

$

1,237,622










EMEA income from operations

$

118,380

$

148,992

$

96,453

$

531,530

$

421,786


EMEA depreciation, amortization and accretion expense

103,067

101,265

95,264

390,025

354,930


EMEA stock-based compensation expense

12,139

12,770

10,788

48,151

40,796


EMEA transaction costs

718

189

2,324

1,490

9,015


EMEA loss on asset sales

2,971

—

1,916

3,050

1,453


EMEA adjusted EBITDA

$

237,275

$

263,216

$

206,745

$

974,246

$

827,980










Asia-Pacific income from operations

$

88,160

$

88,701

$

80,285

$

342,944

$

333,909


Asia-Pacific depreciation, amortization and accretion expense

80,355

78,122

67,451

305,006

261,639


Asia-Pacific stock-based compensation expense

7,267

7,434

6,460

28,854

25,641


Asia-Pacific impairment charges

—

7,306

—

7,306

—


Asia-Pacific transaction costs

596

1,916

843

10,523

936


Asia-Pacific gain on asset sales

(2,003)

—

—

(2,003)

—


Asia-Pacific adjusted EBITDA

$

174,375

$

183,479

$

155,039

$

692,630

$

622,125









(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

70

%

71

%

72

%

71

%

72

%


EMEA cash gross margins

61

%

63

%

59

%

62

%

60

%


Asia-Pacific cash gross margins

64

%

67

%

65

%

66

%

66

%









(10)

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










Americas adjusted EBITDA margins

42

%

43

%

48

%

44

%

48

%


EMEA adjusted EBITDA margins

46

%

51

%

45

%

49

%

46

%


Asia-Pacific adjusted EBITDA margins

51

%

56

%

52

%

54

%

53

%

(11)

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










Adjusted EBITDA - current period

$

711,402

$

737,245

$

675,860

$

2,852,898

$

2,687,727


Less adjusted EBITDA - prior period

(737,245)

(720,041)

(674,702)

(2,687,727)

(2,413,240)


Adjusted EBITDA growth

$

(25,843)

$

17,204

$

1,158

$

165,171

$

274,487










Revenues - current period

$

1,564,115

$

1,519,767

$

1,417,135

$

5,998,545

$

5,562,140


Less revenues - prior period

(1,519,767)

(1,470,121)

(1,396,810)

(5,562,140)

(5,071,654)


Revenue growth

$

44,348

$

49,646

$

20,325

$

436,405

$

490,486










Adjusted EBITDA flow-through rate

(58)

%

35

%

6

%

38

%

56

%









(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

$

50,936

$

66,831

$

124,835

$

370,074

$

507,245


Net loss attributable to non-controlling interests

58

(144)

160

(297)

205


Net income attributable to Equinix

50,994

66,687

124,995

369,777

507,450


Adjustments:









Real estate depreciation

247,554

232,110

221,143

924,064

845,798


(Gain) loss on disposition of real estate property

2,494

(1,313)

(42,758)

4,063

(39,337)


Adjustments for FFO from unconsolidated joint ventures

705

699

645

2,726

645


FFO attributable to common shareholders

$

301,747

$

298,183

$

304,025

$

1,300,630

$

1,314,556









(13)

AFFO is defined as FFO, excluding depreciation and amortization expense on non-real estate assets, accretion, stock-based compensation, 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

$

301,747

$

298,183

$

304,025

$

1,300,630

$

1,314,556


Adjustments:









Installation revenue adjustment

3,504

(3,797)

2,751

(125)

11,031


Straight-line rent expense adjustment

3,567

3,019

773

10,787

8,167


Amortization of deferred financing costs and debt discounts and premiums

3,951

3,884

3,613

15,739

13,042


Contract cost adjustment

(12,823)

(7,111)

(11,556)

(35,675)

(40,861)


Stock-based compensation expense

79,362

75,248

62,126

311,020

236,539


Non-real estate depreciation expense

79,693

78,356

60,712

300,258

242,761


Amortization expense

50,972

50,222

48,689

199,047

196,278


Accretion expense (adjustment)

640

1,598

(2,249)

3,641

459


Recurring capital expenditures

(74,446)

(38,327)

(80,925)

(160,637)

(186,002)


Loss on debt extinguishment

44,001

93,494

52,758

145,804

52,825


Transaction costs

24,948

5,840

16,545

55,935

24,781


Impairment charges

—

7,306

(233)

7,306

15,790


Income tax expense adjustment

10,837

11,480

13,502

33,220

39,676


Adjustments for AFFO from unconsolidated joint ventures

1,012

287

2,080

2,195

2,080


AFFO attributable to common shareholders

$

516,965

$

579,682

$

472,611

$

2,189,145

$

1,931,122









(14)

 Following is how we reconcile from adjusted EBITDA to AFFO:









Adjusted EBITDA

$

711,402

$

737,245

$

675,860

$

2,852,898

$

2,687,727


Adjustments:









Interest expense, net of interest income

(89,668)

(98,284)

(110,085)

(397,812)

(451,987)


Amortization of deferred financing costs and debt discounts and premiums

3,951

3,884

3,613

15,739

13,042


Income tax expense

(41,304)

(29,903)

(37,632)

(146,151)

(185,352)


Income tax expense adjustment

10,837

11,480

13,502

33,220

39,676


Straight-line rent expense adjustment

3,567

3,019

773

10,787

8,167


Contract cost adjustment

(12,823)

(7,111)

(11,556)

(35,675)

(40,861)


Installation revenue adjustment

3,504

(3,797)

2,751

(125)

11,031


Recurring capital expenditures

(74,446)

(38,327)

(80,925)

(160,637)

(186,002)


Other income

(2,697)

162

12,336

6,913

27,778


(Gain) loss on disposition of real estate property

2,494

(1,313)

(42,758)

4,063

(39,337)


Adjustments for unconsolidated JVs' and non-controlling interests

1,775

842

2,885

4,624

2,930


Adjustment for gain on sale of asset

373

1,785

43,847

1,301

44,310


AFFO attributable to common shareholders

$

516,965

$

579,682

$

472,611

$

2,189,145

$

1,931,122









(15)

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










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

89,113

88,806

85,289

87,700

84,140


Effect of dilutive securities:









Employee equity awards

613

713

542

710

539


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

89,726

89,519

85,831

88,410

84,679










Basic FFO per share

$

3.39

$

3.36

$

3.56

$

14.83

$

15.62


Diluted FFO per share

$

3.36

$

3.33

$

3.54

$

14.71

$

15.52










Basic AFFO per share

$

5.80

$

6.53

$

5.54

$

24.96

$

22.95


Diluted AFFO per share

$

5.76

$

6.48

$

5.51

$

24.76

$

22.81





















CONTACT: Investor Relations, Katrina Rymill, Equinix, Inc., (650) 598-6583, krymill@equinix.com; Chip Newcom, Equinix, Inc., (650) 598-6262, cnewcom@equinix.com; Media, Michelle Lindeman, Equinix, Inc., (650) 598-6361, mlindeman@equinix.com