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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.

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