This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Equinix's CEO Discusses Q1 2012 Results - Earnings Call Transcript

We'd also like to remind you that we post important information about Equinix on the Investor Relations page of our website. We encourage you to check our website regularly for the most current available information.

With us today are Steve Smith, Equinix's CEO and President; Keith Taylor, Chief Financial Officer; Charles Meyers, President of the Americas. Following our prepared remarks, we'll be taking questions from sell-side analysts. In the interest of wrapping this call in an hour, we'd like to ask these analysts to limit any follow-on questions to one.

At this time, I'll turn the call over to Steve.

Stephen M. Smith

Thank you, Katrina. Good afternoon, and welcome to our first quarter earnings call. I'm pleased to report that Equinix delivered strong financial results in the first quarter and a great start to 2012. As shown on Slide 3, revenues were $452.2 million, up 5% quarter-over-quarter and 25% over the same quarter last year. Adjusted EBITDA was $215.2 million for the quarter, up 29% over the same quarter last year. We continue to see growth through high-value deployments where application performance and reliability matter, resulting in record bookings in all 3 operating regions this quarter.

Our focus on creating digital ecosystems and the corresponding vertical alignment of our sales force is reflected in our market momentum, particularly in the network and cloud segments. By targeting customer applications that fully leverage the advantage of Platform Equinix, we continue to see a very favorable deal mix and a healthy pricing environment.

The breadth of our global platform remains a unique competitive advantage. In this quarter, we exported record bookings across regional boundaries. Currently, 59% of our monthly recurring revenues come from customers deployed across multiple countries, reinforcing the value of our global platform.

As the Internet continues to scale, the global data center market remains as dynamic as ever. Trends such as mobility, cloud computing, data management and social media are at the heart of this shift. There are more people interacting with data than ever before, and the world's effective capacity to exchange information through telecommunications network is predicted to reach approximately 670 exabyte annually in 2013. These global trends are forcing architecture decisions to place network data centers at the heart of multitiered architecture deployments. Our network-dense IBX stood at the intersection of these business and technology trends as a solution to both cost and performance challenges.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,265.99 +109.14 0.64%
S&P 500 2,011.36 +9.79 0.49%
NASDAQ 4,593.4250 +31.2360 0.68%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs