Equinix Sees 2% Revenue Increase To $1.4bn In Q1 2020 As Data Centre Hubs Remain Operational
07 May 2020 | Abigail Opiah
The data centre giants saw a 2% increase over the previous quarter including $15 million of negative foreign currency impact when compared to prior guidance rates.
Equinix, Inc. (Nasdaq: EQIX) has reported revenues of $1.445 billion in its results for the quarter ended March 31, 2020.
In regards to the company’s operating income, Equinix reported $253 million, which was a 19% decrease from the previous quarter, largely due to the sale of certain assets in Q4 to the EMEA xScale joint venture.
The company also reported an adjusted EBITDA of $684 million, a 47% adjusted EBITDA margin, including higher seasonal costs.
Equinix’s 2020 annual revenue was $5.877 – $5.985 billion, a 6 – 8% increase over the previous year, or a normalized and constant currency increase of 7 – 9%.
“These are unprecedented times and our hearts go out to those who have been impacted by Covid-19,” said Charles Meyers, President and CEO, Equinix (pictured).
“We extend our gratitude to all the front-line workers who are helping to keep us safe and healthy during this global pandemic.
“The Equinix business continues to perform well and show resiliency through these times of uncertainty, enabling us to remain focused on the clear set of priorities we laid out at the beginning of the year—investing in our people, evolving our platform and service portfolio to meet the changing needs of customers, expanding our go-to-market engine to fuel long-term growth, and simplifying our business to drive operating leverage and enhance our customer experience.”
The company’s interconnection revenues in Q1 grew 14% year-over-year. In Q1, Equinix added an incremental 6,800 interconnections, driven by content video streaming and unified communication services.
Equinix also recently signed a greater than $1.0 billion initial joint venture in the form of a limited liability partnership with GIC, Singapore’s sovereign wealth fund, to develop and operate xScale data centres in Japan, and in March this year, the company completed the $335 million acquisition of Packet.
In regards to the Coronavirus outbreak and its effects on the company, Equinix stated that all IBX data centres remain open during the Covid-19 pandemic as local governments identified the facilities as “essential businesses” or “critical infrastructure”.
“The full potential impact of the Covid-19 pandemic on our financial condition or results of operations remains uncertain and will depend on a number of factors, including its impact on our customers, partners and vendors, and the impact and functioning of the global financial markets,” added Equinix.