Covid-19 fails to stop Equinix growth as quarter revenues hit record $1.5bn

29 October 2020 | João Marques Lima

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The world’s largest data centre operator Equinix has posted its financial results for the third quarter which have shown the incapability of the Covid-19 pandemic to slow the data centre industry.

In its results, Equinix has reported a 9% increase in revenues in comparison to the same quarter last year, reaching $1.520 billion. This was the company's 71st consecutive quarter of revenue growth. 

Today, Equinix operates over 386,000 physical and virtual interconnections. In Q3, the company added 8,500 net interconnections, driven by video conferencing, streaming, enterprise cloud connectivity and work-from-home local aggregation. 

The Equinix Internet Exchange experienced peak traffic, up 43% year-over-year, with a 7% increase quarter-over-quarter. Equinix Cloud Exchange Fabric also crossed the $100 million annual run rate, with broad-based adoption across all verticals driven by virtual connections and increasing bandwidth consumption. 

In Q3, Equinix initiated its first green bond financing as a mechanism to further invest in innovative designs and technologies, while increasing the company's efficiency in sustainable operations. The debt financing closed in October 2020. 

Charles Meyers, president and CEO, Equinix, said: "As businesses navigate the economic, health and societal changes happening in the world, Equinix is in a unique position to help our customers adapt, respond and accelerate their digital transformation a key driver for economic recovery. 

“Companies in every sector are embracing digital transformation as a critical business priority, and we are well-positioned to help our customers scale with agility and create digital advantage. 

“We continue to invest in our strategy, evolving our platform in response to evolving customer needs, expanding our global reach to accelerate digital delivery, committing to a more sustainable future and ensuring that our culture is widely recognised as a place that attracts, embraces, inspires and develops exceptional and diverse talent."

For the fourth quarter of 2020, Equinix said it expects revenues to range between $1.549 and $1.569 billion, an increase of 2-3% quarter-over-quarter, or a normalised and constant currency increase of approximately 1-2%.

For the full year of 2020, total revenues are expected to range between $5.983 and $6.003 billion, an 8% increase over the previous year on both an as-reported and a normalised and constant currency basis.

However, Equinix has issued a note of warning about the possible impact of the pandemic on its results, saying that “the full impact of Covid-19 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,” it concluded.