• Revenue: $2.2 billion, up 8% year-over-year, excluding power pass-through impact.
• Adjusted EBITDA Margin: Increased to 48% of revenues.
• AFFO per Share: Increased 9% year-over-year.
• Global Q1 MRR Churn: 2.4%, as expected.
• Interconnection Revenues: Grew 9% year-over-year on a normalized and constant currency basis.
• Total Interconnections: More than 486,000 deployed.
• Capital Expenditures: $750 million, including $26 million in recurring CapEx.
• 2025 Revenue Guidance Increase: Raised by $142 million.
• 2025 Adjusted EBITDA Guidance Increase: Raised by $85 million.
• 2025 AFFO Guidance Increase: Raised by $69 million.
• 2025 CapEx Expectation: Between $3.4 billion and $3.7 billion.

• Warning! GuruFocus has detected 6 Warning Signs with EQIX.

Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Equinix Inc (NASDAQ:EQIX) delivered better-than-expected financial metrics, including revenues, adjusted EBITDA, and AFFO, leading to raised guidance for these metrics.
• The sales team improved customer momentum, deal conversion, and shortened deal cycles while maintaining favorable pricing.
• Equinix Inc (NASDAQ:EQIX) experienced strong recurring revenue growth, driven by the impact of second-half 2024 bookings.
• The company saw significant AI wins, including deployments with NVIDIA DGX Superpod and Groq, enhancing its position in the AI infrastructure market.
• Equinix Inc (NASDAQ:EQIX) continues to expand its global footprint with 56 major projects underway across 33 metros in 24 countries, including 12 xScale projects.

Negative Points

• Lower xScale leasing and fit-out fees offset strong recurring revenue growth in the first quarter.
• The company is closely monitoring the macroeconomic environment, with tariffs posing a concern for many customers.
• Equinix Inc (NASDAQ:EQIX) experienced some unanticipated churn events, including a bankruptcy in EMEA, impacting cabinet billing.
• Nonrecurring revenues are expected to decrease by $38 million in Q2, largely due to xScale.
• The company faces capacity constraints, requiring accelerated builds to meet customer demand, which could impact pricing dynamics.

Q & A Highlights

Q: Can you shed light on what's driving the improvements in sales cycles and whether the macro environment has impacted them in April? A: Darren Gryniuk, Global Head, Digital Sales, explained that despite macro uncertainties, bookings are on target, with no significant shifts in demand. Improvements in sales cycles are due to a more rigorous qualification process, standardized contracts, and enhanced sales productivity, leading to reduced deal cycle times.

Q: Can you elaborate on the expectation for recurring revenue growth in the second half of the year and its drivers? A: Adaire Fox-Martin, CEO and President, stated that recurring revenue growth will be driven by the momentum from 2024 bookings, strong Q1 performance, and continued implementation of customer solutions. Despite challenges in EMEA, the overall pipeline remains strong, supporting growth expectations.

Q: What drove the strength in interconnection, including Equinix Fabric, and are there any emerging use cases? A: Adaire Fox-Martin highlighted strong demand for interconnections, with 3,900 new additions in Q1. Growth is driven by new customer deployments, market entries, and the increasing volume and variety of use cases, emphasizing the importance of network density and counterparties.

Q: Can you update us on the progress of the US xScale JV and the outlook for nonrecurring revenue? A: Adaire Fox-Martin noted a strong xScale pipeline with consistent engagement and pre-leasing sentiment. Keith Taylor, CFO, added that nonrecurring revenues will decrease in Q2, providing a clearer view of core business performance, while investments in xScale continue to support long-term growth.

Q: How is Equinix managing potential supply constraints, and can you raise prices to address this? A: Adaire Fox-Martin explained that firm pricing and strategic build acceleration under the Build Bolder program help manage capacity constraints. Efforts include reducing build times and optimizing capacity allocation to meet customer needs, allowing for premium pricing in certain scenarios.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.