**Equinix Investor Relations Contacts:** **Equinix Media Contacts:**

invest@equinix.com press@equinix.com

**_FOR IMMEDIATE RELEASE_**

**EQUINIX REPORTS FIRST-QUARTER 2023 RESULTS**

**_Company Delivers Quarterly Revenues of Approximately $2 Billion as Businesses Continue to_**

**_Prioritize Digital Infrastructure_**

-  Quarterly revenues increased 15% over the same quarter last year to $2.0 billion, or 16% on a

normalized and constant currency basis

-  Closed approximately 4,000 deals across more than 3,000 customers

-  Customer deployments across multiple regions increased to 76% of total recurring revenue, an

increase of 1% quarter over quarter, demonstrating the value of the Equinix global platform

**REDWOOD CITY, Calif. - May 3, 2023** **-** **[Equinix, Inc. (Nasdaq: EQIX), the world’s digital](https://www.equinix.com/?ls=Public%20Relations&lsd=23q2__--_/_pr-equinix_pr-newswire_press-release__us-en_AMER_23q1-earnings_awareness&utm_campaign=us-en__press-release_23q1-earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_)**

infrastructure company[TM], today reported results for the quarter ended March 31, 2023. Equinix uses

certain non-GAAP financial measures, which are described further below and reconciled to the most

comparable GAAP financial measures after the presentation of our GAAP financial statements. All per

share results are presented on a fully diluted basis.


-----

**First-Quarter 2023 Results Summary**

-  **Revenues**

◦ Approximately $2.0 billion, a record quarter-over-quarter step up of $127 million or a 7%
increase over the previous quarter

◦ Includes approximately $90 million from power price increases and a $2 million foreign
currency benefit when compared to prior guidance rates

**•** **Operating Income**

◦ $384 million, a 36% increase over the previous quarter, due to strong operating performance
and flat quarter-over-quarter SG&A spend and an operating margin of 19%

**•** **Net Income and Net Income per Share attributable to Equinix**

◦ $259 million, a 101% increase over the previous quarter, primarily due to higher income from
operations and lower net interest expense

◦ $2.77 per share, a 99% increase over the previous quarter

-  **Adjusted EBITDA**

◦ $944 million, a 13% increase over the previous quarter, and an adjusted EBITDA margin of
47%

◦ Includes a $2 million foreign currency benefit when compared to prior guidance rates

◦ Includes $5 million of integration costs

-  **AFFO and AFFO per Share**

◦ $802 million, a 22% increase over the previous quarter, primarily due to strong operating
performance and seasonally lower recurring capital expenditures

◦ $8.59 per share, a 21% increase over the previous quarter

◦ Includes $5 million of integration costs

**2023 Annual Guidance Summary**

**•** **Revenues**

◦ $8.175 - $8.275 billion, an increase of 13 - 14% over the previous year, or a normalized and
constant currency increase of 14 - 15%

◦ An increase of $30 million compared to prior guidance at the mid-point

-  **Adjusted EBITDA**

◦ $3.635 - $3.715 billion, a 45% adjusted EBITDA margin

◦ An increase of $20 million compared to prior guidance at the mid-point

◦ Assumes $33 million of integration costs

-  **AFFO and AFFO per Share**

◦ $2.927 - $3.007 billion, an increase of 8 - 11% over the previous year, or a normalized and
constant currency increase of 10 - 13%

◦ An increase of $44 million compared to prior guidance at the mid-point

◦ $31.15 - $32.00 per share, an increase of 5 - 8% over the previous year, or a normalized and
constant currency increase of 8 - 11%

◦ Assumes $33 million of integration costs

Equinix does not provide forward-looking guidance for certain financial data, such as depreciation,

amortization, accretion, stock-based compensation, net income (loss) from operations, cash generated

from operating activities and cash used in investing activities, and as a result, is not able to provide a

reconciliation of GAAP to non-GAAP financial measures for forward-looking data without unreasonable

effort. The impact of such adjustments could be significant.


-----

**Equinix Quote**

**Charles Meyers, President and CEO, Equinix:**

_“We had a strong start to the year, delivering nearly $2 billion of revenue for the quarter, as our outlook_

_remains positive with the overall demand for digital transformation fueling our conviction around the_

_long-term secular drivers of our business. We look forward to our upcoming analyst day next month,_

_where we plan to continue the discussion of the significant opportunity ahead and our strongly_

_differentiated position in capturing this opportunity as we enable our customers to access all the right_

_places, partners and possibilities.”_

**Business Highlights**

-  Equinix further invested in the expansion of its global platform which encompasses 248 data

centers across 71 metros in 32 countries, including 50 major builds underway in 37 markets.

Specific initiatives included:

◦ In February, Equinix [announced plans to build its second International Business](https://www.equinix.com/newsroom/press-releases/2023/02/equinix-to-build-new-data-center-in-barcelona-a-growing-connectivity-hub-of-the-mediterranean/?ls=Public%20Relations&lsd=23q2__--_/newsroom/press-releases/2023/02/equinix-to-build-new-data-center-in-barcelona-a-growing-connectivity-hub-of-the-mediterranean/_pr-equinix_pr-newswire_press-release__us-en_AMER_23q1-earnings_awareness&utm_campaign=us-en__press-release_23q1-earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_)

Exchange™ (IBX[®]) data center in Barcelona. The new site will serve as a strategic

connection point for data communications between Africa, Europe and the Middle East,

as Barcelona grows as a vital hub for regional subsea cables.

◦ In April, Equinix [invested $50 million toward a new state-of-the-art IBX data center](https://www.equinix.com/newsroom/press-releases/2023/04/equinix-expands-in-montreal-to-support-growing-financial-services-gaming-aerospace-sectors/?ls=Public%20Relations&lsd=23q2__--_/newsroom/press-releases/2023/04/equinix-expands-in-montreal-to-support-growing-financial-services-gaming-aerospace-sectors/_pr-equinix_pr-newswire_press-release__us-en_AMER_23q1-earnings_awareness&utm_campaign=us-en__press-release_23q1-earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_)

expected to open in Montreal in the second half of 2023.

◦ Equinix continues to expand its Data Center Services portfolio with four openings in

Frankfurt, Paris, Singapore and Sydney, and four newly approved projects in Frankfurt,

Lagos, Melbourne and Rio de Janeiro. The company has 10 xScale[®] projects underway

that are expected to deliver more than 90 megawatts of capacity once opened.

-  Equinix continues to make progress in advancing its sustainability commitments:

◦ As noted in the company’s recently published [Annual Sustainability Report, Equinix](https://sustainability.equinix.com/wp-content/uploads/2023/04/Equinix-Inc.-2022-Sustainability-Report-Highlights.pdf?ls=Public%20Relations&lsd=23q2__--_/wp-content/uploads/2023/04/Equinix-Inc.-2022-Sustainability-Report-Highlights.pdf_pr-equinix_pr-newswire_press-release__us-en_AMER_23q1-earnings_awareness&utm_campaign=us-en__press-release_23q1-earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_ )

achieved 96% renewable energy coverage of its operational load for 2022, marking the

fifth consecutive year with over 90% renewable energy coverage. This reflects a 10%

year-over-year increase in procurement of renewable energy on a GWh basis. Equinix

also advanced its science-based targets including a 23% reduction in operational

emissions across Scope 1 and Scope 2 from its 2019 baseline.


-----

◦ Year to date, Equinix has significantly increased its commitment to renewable power

projects by signing a number of new long-term Power Purchase Agreements (PPAs) in

Spain totaling 345 megawatts (MW). Once operational, the projects are expected to

generate sufficient power to match the consumption and more at Equinix's IBX data

centers in Barcelona and Madrid. The new projects, along with existing projects, will

bring Equinix's contracted PPA capacity to 715 MW globally.

-  As global data volumes continue to accelerate, Equinix surpassed a new milestone of 30 terabits

per second (TB/s) of peak traffic across its global Internet Exchanges—a 50% increase in

approximately 18 months.

-  Equinix continues to extend its leadership as the home of the interconnected cloud with five cloud

on-ramp wins in Q1 bringing Equinix’s portfolio to 210 on-ramps across 46 markets. More than

half of the metros in which Equinix operates now offer two or more on-ramps to the largest cloud

players.

-  In January, Equinix appointed Thomas Olinger to its Board of Directors. Olinger, who previously

served as the Chief Financial Officer at Prologis for the past 15 years, is a member of the Equinix

Board's Audit, Finance and Real Estate Committees. Equinix thanks Bud Lyons for his

exceptional service and contributions to the growth and success of the company over the past 15

years as he retires from the Board.

**Business Outlook**

For the second quarter of 2023, the Company expects revenues to range between $1.995 and $2.025

billion, an increase of approximately 0 - 1% over the previous quarter, or a normalized and constant

currency increase of 0 - 2%. This guidance includes a negative $10 million foreign currency impact when

compared to the average FX rates in Q1 2023 and lower non-recurring revenues. Adjusted EBITDA is

expected to range between $881 and $911 million. Adjusted EBITDA reflects the impact of increased

seasonal energy costs and the expected expiration of prior power cost commitments, and a negative $5

million foreign currency impact when compared to the average FX rates in Q1 2023. For the quarter,

integration costs from acquisitions are expected to be $5 million. Recurring capital expenditures are

expected to range between $35 and $45 million.

For the full year of 2023, total revenues are expected to range between $8.175 and $8.275 billion, a 13 
14% increase over the previous year, or a normalized and constant currency increase of 14 - 15%. This

$30 million increase from previously issued guidance is due to a foreign currency benefit when compared


-----

to the prior guidance rates. Adjusted EBITDA is expected to range between $3.635 and $3.715 billion, an

adjusted EBITDA margin of 45%. This $20 million increase from previously issued guidance is primarily

due to a $13 million foreign currency benefit when compared to prior guidance rates, $5 million of better
than-expected operating performance and a $2 million reduction of integration costs. AFFO is expected to

range between $2.927 and $3.007 billion, an increase of 8 - 11% over the previous year, or a normalized

and constant currency increase of 10 - 13%. This $44 million increase from previously issued guidance is

due to $32 million of better-than-expected business performance, a $2 million reduction of integration

costs and a $10 million foreign currency benefit when compared to prior guidance rates. AFFO per share

is expected to range between $31.15 and $32.00, an increase of 5 - 8% over the previous year, or a

normalized and constant currency increase of 8 - 11%. Total capital expenditures are expected to range

between $2.708 and $2.958 billion. Non-recurring capital expenditures, including xScale-related capital

expenditures, are expected to range between $2.510 and $2.740 billion, and recurring capital expenditures

are expected to range between $198 and $218 million. xScale-related on-balance sheet capital

expenditures are expected to range between $131 and $181 million, which we anticipate will be

reimbursed to Equinix from both the current and future xScale JVs.

The U.S. dollar exchange rates used for 2023 guidance, taking into consideration the impact of our

current foreign currency hedges, have been updated to $1.09 to the Euro, $1.19 to the Pound, S$1.33 to

the U.S. Dollar, ¥133 to the U.S. Dollar, A$1.50 to the U.S. Dollar, HK$7.85 to the U.S. Dollar, R$5.08

to the U.S. Dollar and C$1.35 to the U.S. Dollar. The Q1 2023 global revenue breakdown by currency for

the Euro, British Pound, Singapore Dollar, Japanese Yen, Australian Dollar, Hong Kong Dollar, Brazilian

Real and Canadian Dollar is 20%, 9%, 8%, 5%, 4%, 3%, 3% and 2%, respectively.

The adjusted EBITDA guidance is based on the revenue guidance less our expectations of cash cost of

revenues and cash operating expenses. The AFFO guidance is based on the adjusted EBITDA guidance

less our expectations of net interest expense, an installation revenue adjustment, a straight-line rent

expense adjustment, a contract cost adjustment, amortization of deferred financing costs and debt

discounts and premiums, income tax expense, an income tax expense adjustment, recurring capital

expenditures, other income (expense), (gains) losses on disposition of real estate property, and

adjustments for unconsolidated joint ventures’ and non-controlling interests’ share of these items.


-----

**Q1 2023 Results Conference Call and Replay Information**

Equinix will discuss its quarterly results for the period ended March 31, 2023, along with its future

outlook, in its quarterly conference call on Wednesday, May 3, 2023, at 5:30 p.m. ET (2:30 p.m. PT). A

simultaneous live webcast of the call will be available on the company’s Investor Relations website at

[www.equinix.com/investors. To hear the conference call live, please dial 1-517-308-9482 (domestic and](https://www.equinix.com/investors?ls=Public%20Relations&lsd=23q2__--_/investors_pr-equinix_pr-newswire_press-release__us-en_AMER_23q1-earnings_awareness&utm_campaign=us-en__press-release_23q1-earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_ )

international) and reference the passcode EQIX.

A replay of the call will be available one hour after the call through Wednesday, August 2, 2023, by

dialing 1-888-293-8912 and referencing the passcode 2023. In addition, the webcast will be available at

[www.equinix.com/investors (no password required).](https://www.equinix.com/investors?ls=Public%20Relations&lsd=23q2__--_/investors_pr-equinix_pr-newswire_press-release__us-en_AMER_23q1-earnings_awareness&utm_campaign=us-en__press-release_23q1-earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_ )

**Investor Presentation and Supplemental Financial Information**

Equinix has made available on its website a presentation designed to accompany the discussion of

Equinix’s results and future outlook, along with certain supplemental financial information and other

data. Interested parties may access this information through the Equinix Investor Relations website at

[www.equinix.com/investors.](https://www.equinix.com/investors?ls=Public%20Relations&lsd=23q2__--_/investors_pr-equinix_pr-newswire_press-release__us-en_AMER_23q1-earnings_awareness&utm_campaign=us-en__press-release_23q1-earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_ )

**Additional Resources**

-  [Equinix Investor Relations Resources](https://www.equinix.com/investors?ls=Public%20Relations&lsd=23q2__--_/investors_pr-equinix_pr-newswire_press-release__us-en_AMER_23q1-earnings_awareness&utm_campaign=us-en__press-release_23q1-earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_ )

**About Equinix**

Equinix (Nasdaq: EQIX) is the world’s digital infrastructure company, enabling digital leaders to harness

a trusted platform to bring together and interconnect the foundational infrastructure that powers their

success. Equinix enables today’s businesses to access all the right places, partners and possibilities they

need to accelerate advantage. With Equinix, they can scale with agility, speed the launch of digital

services, deliver world-class experiences and multiply their value.

**Non-GAAP Financial Measures**

Equinix provides all information required in accordance with generally accepted accounting principles

(“GAAP”), but it believes that evaluating its ongoing operating results may be difficult if limited to

reviewing only GAAP financial measures. Accordingly, Equinix uses non-GAAP financial measures to

evaluate its operations.

Equinix provides normalized and constant currency growth rates, which are calculated to adjust for

acquisitions, dispositions, integration costs, changes in accounting principles and foreign currency.


-----

Equinix presents adjusted EBITDA, which is a non-GAAP financial measure. Adjusted EBITDA

represents net income excluding income tax expense, interest income, interest expense, other income or

expense, gain or loss on debt extinguishment, depreciation, amortization, accretion, stock-based

compensation expense, restructuring charges, impairment charges, transaction costs and gain or loss on

asset sales.

In presenting non-GAAP financial measures, such as adjusted EBITDA, cash cost of revenues, cash gross

margins, cash operating expenses (also known as cash selling, general and administrative expenses or

cash SG&A), adjusted EBITDA margins, free cash flow and adjusted free cash flow, Equinix excludes

certain items that it believes are not good indicators of Equinix’s current or future operating performance.

These items are depreciation, amortization, accretion of asset retirement obligations and accrued

restructuring charges, stock-based compensation, restructuring charges, impairment charges, transaction

costs and gain or loss on asset sales. Equinix excludes these items in order for its lenders, investors and

the industry analysts who review and report on Equinix to better evaluate Equinix’s operating

performance and cash spending levels relative to its industry sector and competitors.

Equinix excludes depreciation expense as these charges primarily relate to the initial construction costs of

a data center, and do not reflect its current or future cash spending levels to support its business. Its data

centers are long-lived assets, and have an economic life greater than 10 years. The construction costs of a

data center do not recur with respect to such data center, although Equinix may incur initial construction

costs in future periods with respect to additional data centers, and future capital expenditures remain

minor relative to the initial investment. This is a trend it expects to continue. In addition, depreciation is

also based on the estimated useful lives of the data centers. These estimates could vary from actual

performance of the asset, are based on historic costs incurred to build out our data centers and are not

indicative of current or expected future capital expenditures. Therefore, Equinix excludes depreciation

from its operating results when evaluating its operations.

In addition, in presenting the non-GAAP financial measures, Equinix also excludes amortization expense

related to acquired intangible assets. Amortization expense is significantly affected by the timing and

magnitude of acquisitions, and these charges may vary in amount from period to period. We exclude

amortization expense to facilitate a more meaningful evaluation of our current operating performance and

comparisons to our prior periods. Equinix excludes accretion expense, both as it relates to its asset

retirement obligations as well as its accrued restructuring charges, as these expenses represent costs which

Equinix also believes are not meaningful in evaluating Equinix’s current operations. Equinix excludes

stock-based compensation expense, as it can vary significantly from period to period based on share price

and the timing, size and nature of equity awards. As such, Equinix and many investors and analysts


-----

exclude stock-based compensation expense to compare its operating results with those of other

companies. Equinix excludes restructuring charges from its non-GAAP financial measures. The

restructuring charges relate to Equinix’s decision to exit leases for excess space adjacent to several of its

IBX[®] data centers, which it did not intend to build out, or its decision to reverse such restructuring

charges. Equinix also excludes impairment charges generally related to certain long-lived assets. The

impairment charges are related to expense recognized whenever events or changes in circumstances

indicate that the carrying amount of assets are not recoverable. Equinix also excludes gain or loss on asset

sales as it represents profit or loss that is not meaningful in evaluating the current or future operating

performance. Finally, Equinix excludes transaction costs from its non-GAAP financial measures to allow

more comparable comparisons of the financial results to the historical operations. The transaction costs

relate to costs Equinix incurs in connection with business combinations and formation of joint ventures,

including advisory, legal, accounting, valuation and other professional or consulting fees. Such charges

generally are not relevant to assessing the long-term performance of Equinix. In addition, the frequency

and amount of such charges vary significantly based on the size and timing of the transactions.

Management believes items such as restructuring charges, impairment charges, transaction costs and gain

or loss on asset sales are non-core transactions; however, these types of costs may occur in future periods.

Equinix also presents funds from operations (“FFO”) and adjusted funds from operations (“AFFO”), both

commonly used in the REIT industry, as supplemental performance measures. Additionally, Equinix

presents AFFO per share, which is also commonly used in the REIT industry. AFFO per share offers

investors and industry analysts a perspective of Equinix’s underlying operating performance when

compared to other REIT companies. FFO is calculated in accordance with the definition established by

the National Association of Real Estate Investment Trusts (“NAREIT”). FFO represents net income or

loss, excluding gain or loss from the disposition of real estate assets, depreciation and amortization on real

estate assets and adjustments for unconsolidated joint ventures’ and non-controlling interests’ share of

these items. AFFO represents FFO, excluding depreciation and amortization expense on non-real estate

assets, accretion, stock-based compensation, stock-based charitable contributions, restructuring charges,

impairment charges, transaction costs, an installation revenue adjustment, a straight-line rent expense

adjustment, a contract cost adjustment, amortization of deferred financing costs and debt discounts and

premiums, gain or loss on debt extinguishment, an income tax expense adjustment, recurring capital

expenditures, net income or loss from discontinued operations, net of tax and adjustments from FFO to

AFFO for unconsolidated joint ventures’ and non-controlling interests’ share of these items. Equinix

excludes depreciation expense, amortization expense, accretion, stock-based compensation, restructuring

charges, impairment charges and transaction costs for the same reasons that they are excluded from the

other non-GAAP financial measures mentioned above.


-----

Equinix includes an adjustment for revenues from installation fees, since installation fees are deferred and

recognized ratably over the period of contract term, although the fees are generally paid in a lump sum

upon installation. Equinix includes an adjustment for straight-line rent expense on its operating leases,

since the total minimum lease payments are recognized ratably over the lease term, although the lease

payments generally increase over the lease term. Equinix also includes an adjustment to contract costs

incurred to obtain contracts, since contract costs are capitalized and amortized over the estimated period

of benefit on a straight-line basis, although costs of obtaining contracts are generally incurred and paid

during the period of obtaining the contracts. The adjustments for installation revenues, straight-line rent

expense and contract costs are intended to isolate the cash activity included within the straight-lined or

amortized results in the consolidated statement of operations. Equinix excludes the amortization of

deferred financing costs and debt discounts and premiums as these expenses relate to the initial costs

incurred in connection with its debt financings that have no current or future cash obligations. Equinix

excludes gain or loss on debt extinguishment since it represents a cost that is not a good indicator of

Equinix’s current or future operating performance. Equinix includes an income tax expense adjustment,

which represents the non-cash tax impact due to changes in valuation allowances and uncertain tax

positions that do not relate to the current period’s operations. Equinix excludes recurring capital

expenditures, which represent expenditures to extend the useful life of its IBX and xScale data centers or

other assets that are required to support current revenues. Equinix also excludes net income or loss from

discontinued operations, net of tax, which represents results that are not a good indicator of our current or

future operating performance.

Equinix presents constant currency results of operations, which is a non-GAAP financial measure and is

not meant to be considered in isolation or as an alternative to GAAP results of operations. However,

Equinix has presented this non-GAAP financial measure to provide investors with an additional tool to

evaluate its operating results without the impact of fluctuations in foreign currency exchange rates,

thereby facilitating period-to-period comparisons of Equinix’s business performance. To present this

information, Equinix’s current and comparative prior period revenues and certain operating expenses

from entities with functional currencies other than the U.S. dollar are converted into U.S. dollars at a

consistent exchange rate for purposes of each result being compared.

Non-GAAP financial measures are not a substitute for financial information prepared in accordance with

GAAP. Non-GAAP financial measures should not be considered in isolation, but should be considered

together with the most directly comparable GAAP financial measures and the reconciliation of the non
GAAP financial measures to the most directly comparable GAAP financial measures. Equinix presents

such non-GAAP financial measures to provide investors with an additional tool to evaluate its operating

results in a manner that focuses on what management believes to be its core, ongoing business operations.


-----

Management believes that the inclusion of these non-GAAP financial measures provides consistency and

comparability with past reports and provides a better understanding of the overall performance of the

business and its ability to perform in subsequent periods. Equinix believes that if it did not provide such

non-GAAP financial information, investors would not have all the necessary data to analyze Equinix

effectively.

Investors should note that the non-GAAP financial measures used by Equinix may not be the same non
GAAP financial measures, and may not be calculated in the same manner, as those of other companies.

Investors should, therefore, exercise caution when comparing non-GAAP financial measures used by us

to similarly titled non-GAAP financial measures of other companies. Equinix does not provide forward
looking guidance for certain financial data, such as depreciation, amortization, accretion, stock-based

compensation, net income or loss from operations, cash generated from operating activities and cash used

in investing activities, and as a result, is not able to provide a reconciliation of GAAP to non-GAAP

financial measures for forward-looking data without unreasonable effort. The impact of such adjustments

could be significant. Equinix intends to calculate the various non-GAAP financial measures in future

periods consistent with how they were calculated for the periods presented within this press release.


-----

**Forward-Looking Statements**

_This press release contains forward-looking statements that involve risks and uncertainties. Actual results_

_may differ materially from expectations discussed in such forward-looking statements. Factors that might_

_cause such differences include, but are not limited to, risks to our business and operating results related_

_to the current inflationary environment; foreign currency exchange rate fluctuations; increased costs to_

_procure power and the general volatility in the global energy market; the challenges of acquiring,_

_operating and constructing IBX and xScale data centers and developing, deploying and delivering_

_Equinix products and solutions; unanticipated costs or difficulties relating to the integration of_

_companies we have acquired or will acquire into Equinix; a failure to receive significant revenues from_

_customers in recently built out or acquired data centers; failure to complete any financing arrangements_

_contemplated from time to time; competition from existing and new competitors; the ability to generate_

_sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or_

_decline in business from our key customers; risks related to our taxation as a REIT and other risks_

_described from time to time in Equinix filings with the Securities and Exchange Commission. In_

_particular, see recent and upcoming Equinix quarterly and annual reports filed with the Securities and_

_Exchange Commission, copies of which are available upon request from Equinix. Equinix does not_

_assume any obligation to update the forward-looking information contained in this press release._


-----

**EQUINIX, INC.**

**Condensed Consolidated Statements of Operations**

**(in thousands, except per share data)**

**(unaudited)**

**Three Months Ended**


**March 31,**

**2023**


**December 31,**

**2022**


**March 31,**

**2022**



Recurring revenues $ 1,890,080 $ 1,773,380 $ 1,642,324

Non-recurring revenues 108,129 97,465 92,123

**Revenues** **1,998,209** **1,870,845 1,734,447**

Cost of revenues 1,006,091 970,700 915,875

**Gross profit** **992,118** **900,145** **818,572**

Operating expenses:

Sales and marketing 210,671 207,233 192,511

General and administrative 394,874 400,183 352,687

Transaction costs 1,600 10,529 4,240

Loss on asset sales 852 — 1,818

**Total operating expenses** **607,997** **617,945** **551,256**

**Income from operations** **384,121** **282,200** **267,316**

Interest and other income (expense):

Interest income 19,388 18,462 2,106

Interest expense (97,481) (94,200) (79,965)

Other income (expense) 7,503 (28,895) (9,549)

Gain on debt extinguishment 254 143 529

**Total interest and other, net** **(70,336)** **(104,490)** **(86,879)**

**Income before income taxes** **313,785** **177,710** **180,437**

Income tax expense (55,055) (48,807) (32,744)

**Net income** **258,730** **128,903** **147,693**

Net (income) loss attributable to non-controlling interests 56 (140) (240)

**Net income attributable to Equinix** **$** **258,786 $** **128,763 $** **147,453**

**Net income per share attributable to Equinix:**

Basic net income per share $ 2.78 $ 1.39 $ 1.62

Diluted net income per share $ 2.77 $ 1.39 $ 1.62

Shares used in computing basic net income per share 92,971 92,573 90,771

Shares used in computing diluted net income per share 93,340 92,752 91,162


-----

**EQUINIX, INC.**

**Condensed Consolidated Statements of Comprehensive Income**

**(in thousands)**

**(unaudited)**

**Three Months Ended**


**March 31,**

**2023**


**December**

**31, 2022**


**March 31,**

**2022**



Net income $ 258,730 $ 128,903 $ 147,693

Other comprehensive income, net of tax:

Foreign currency translation adjustment (“CTA”) gain (loss) 157,214 796,716 (122,534)

Net investment hedge CTA gain (loss) (39,960) (379,960) 91,358

Unrealized gain (loss) on cash flow hedges (12,881) (50,231) 64,037

Net actuarial loss on defined benefit plans (115) (42) (21)

Total other comprehensive loss, net of tax 104,258 366,483 32,840

**Comprehensive income, net of tax** **362,988** **495,386** **180,533**

Net (income) loss attributable to non-controlling interests 56 (140) (240)

Other comprehensive income attributable to non-controlling interests — (12) (3)

**Comprehensive income attributable to Equinix** **$** **363,044 $** **495,234 $** **180,290**


-----

**EQUINIX, INC.**

**Condensed Consolidated Balance Sheets**

**(in thousands)**

**(unaudited)**

**March 31, 2023** **December 31, 2022**


**Assets**

Cash and cash equivalents $ 2,642,578 $ 1,906,421

Accounts receivable, net 913,413 855,380

Other current assets 437,155 459,138

Assets held for sale — 84,316

**Total current assets** **3,993,146** **3,305,255**

Property, plant and equipment, net 16,913,734 16,649,534

Operating lease right-of-use assets 1,403,716 1,427,950

Goodwill 5,712,063 5,654,217

Intangible assets, net 1,859,655 1,897,649

Other assets 1,391,884 1,376,137

**Total assets** **$** **31,274,198** **$** **30,310,742**

**Liabilities and Stockholders’ Equity**

Accounts payable and accrued expenses $ 933,290 $ 1,004,800

Accrued property, plant and equipment 287,911 281,347

Current portion of operating lease liabilities 141,558 139,538

Current portion of finance lease liabilities 155,447 151,420

Current portion of mortgage and loans payable 9,869 9,847

Other current liabilities 226,077 251,346

**Total current liabilities** **1,754,152** **1,838,298**

Operating lease liabilities, less current portion 1,240,071 1,272,812

Finance lease liabilities, less current portion 2,105,130 2,143,690

Mortgage and loans payable, less current portion 653,235 642,708

Senior notes, less current portion 12,707,851 12,109,539

Other liabilities 784,900 797,863

**Total liabilities** **19,245,339** **18,804,910**

Common stock 94 93

Additional paid-in capital 17,795,701 17,320,017

Treasury stock (65,988) (71,966)

Accumulated dividends (7,639,195) (7,317,570)

Accumulated other comprehensive loss (1,285,188) (1,389,446)

Retained earnings 3,223,624 2,964,838

**Total Equinix stockholders’ equity** **12,029,048** **11,505,966**

Non-controlling interests (189) (134)

**Total stockholders’ equity** **12,028,859** **11,505,832**

**Total liabilities and stockholders’ equity** **$** **31,274,198** **$** **30,310,742**

Ending headcount by geographic region is as follows:
Americas headcount 5,620 5,493

EMEA headcount 4,027 3,936

Asia-Pacific headcount 2,701 2,668

Total headcount 12,348 12,097


-----

**EQUINIX, INC.**

**Summary of Debt Principal Outstanding**

**(in thousands)**

**(unaudited)**

**March 31, 2023** **December 31, 2022**


Finance lease liabilities $ 2,260,577 $ 2,295,110

Term loans 630,052 618,028

Mortgage payable and other loans payable 33,052 34,527

Plus: debt discount and issuance costs, net 1,003 1,062

Total loans payable principal 664,107 653,617

Senior notes 12,707,851 12,109,539

Plus: debt discount and issuance costs 117,863 117,351

Total senior notes principal 12,825,714 12,226,890

Total debt principal outstanding $ 15,750,398 $ 15,175,617


-----

**EQUINIX, INC.**

**Condensed Consolidated Statements of Cash Flows**

**(in thousands)**

**(unaudited)**

**Three Months Ended**


**March 31,**

**2023**


**December**

**31, 2022**


**March 31,**

**2022**


Cash flows from operating activities:


Net income $ 258,730 $ 128,903 $ 147,693

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, amortization and accretion 454,939 438,492 436,386

Stock-based compensation 98,715 107,519 89,952

Amortization of debt issuance costs and debt discounts and

premiums 4,590 4,553 4,204

Gain on debt extinguishment (254) (143) (529)

Loss on asset sales 852 — 1,818

Other items 9,001 44,880 6,050

Changes in operating assets and liabilities:

Accounts receivable (68,082) (56,209) (100,727)

Income taxes, net 4,991 (17,701) 13,881

Accounts payable and accrued expenses (72,765) 31,511 (75,980)

Operating lease right-of-use assets 34,766 36,171 35,400

Operating lease liabilities (33,587) (34,586) (31,740)

Other assets and liabilities (16,054) 76,799 54,715

**Net cash provided by operating activities** **675,842** **760,189** **581,123**

Cash flows from investing activities:

Purchases, sales and maturities of investments, net (24,393) (35,222) (38,558)

Real estate acquisitions (40,397) (208,377) (3,074)

Purchases of other property, plant and equipment (529,600) (827,927) (412,518)

Proceeds from asset sales 87,820 — 195,391

**Net cash used in investing activities** **(506,570) (1,071,526)** **(258,759)**

Cash flows from financing activities:

Proceeds from employee equity awards 44,543 — 43,876

Payment of dividend distributions (326,162) (287,573) (289,669)

Proceeds from public offering of common stock, net of offering

costs 300,775 — —

Proceeds from mortgage and loans payable — — 676,850

Proceeds from senior notes, net of debt discounts 565,239 — —

Repayment of finance lease liabilities (35,498) (36,394) (40,773)

Repayment of mortgage and loans payable (2,403) (1,714) (551,833)

Debt issuance costs (4,257) — (7,366)

**Net cash provided by (used in) financing activities** **542,237** **(325,681)** **(168,915)**

Effect of foreign currency exchange rates on cash, cash equivalents and

restricted cash 23,883 37,398 4,593

Net increase in cash, cash equivalents and restricted cash 735,392 (599,620) 158,042

Cash, cash equivalents and restricted cash at beginning of period 1,908,248 2,507,868 1,549,454

**Cash, cash equivalents and restricted cash at end of period** **$ 2,643,640 $ 1,908,248 $ 1,707,496**

Supplemental cash flow information:


-----

**Three Months Ended**


**March 31,**

**2023**


**December**

**31, 2022**


**March 31,**

**2022**



Cash paid for taxes $ 48,960 $ 44,091 $ 20,150

Cash paid for interest $ 103,904 $ 128,511 $ 104,051

**Free cash flow (negative free cash flow) [(1)]** **$ 193,665 $ (276,115) $ 360,922**

**Adjusted free cash flow (negative adjusted free cash flow) [(2)]** **$ 234,062 $** **(67,738) $ 363,996**

(1) We define free cash flow (negative free cash flow) as net cash provided by operating activities plus net cash

provided by (used in) investing activities (excluding the net purchases, sales and maturities of investments)
as presented below:

Net cash provided by operating activities as presented above $ 675,842 $ 760,189 $ 581,123

Net cash used in investing activities as presented above (506,570) (1,071,526) (258,759)

Purchases, sales and maturities of investments, net 24,393 35,222 38,558

Free cash flow (negative free cash flow) $ 193,665 $ (276,115) $ 360,922

(2) We define adjusted free cash flow (negative adjusted free cash flow) as free cash flow (negative free cash

flow) as defined above, excluding any real estate and business acquisitions, net of cash and restricted cash
acquired as presented below:

Free cash flow (negative free cash flow) as defined above $ 193,665 $ (276,115) $ 360,922

Less real estate acquisitions 40,397 208,377 3,074

Adjusted free cash flow (negative adjusted free cash flow) $ 234,062 $ (67,738) $ 363,996


-----

**EQUINIX, INC.**

**Non-GAAP Measures and Other Supplemental Data**

**(in thousands)**

**(unaudited)**

**Three Months Ended**


**December 31,**

**2022**


**March 31,**

**2023**

Recurring revenues $ 1,890,080 $ 1,773,380 $ 1,642,324

Non-recurring revenues 108,129 97,465 92,123

Revenues [(1)] 1,998,209 1,870,845 1,734,447

Cash cost of revenues [(2)] 665,978 642,176 583,703

**Cash gross profit [(3)]** **1,332,231** **1,228,669** **1,150,744**

Cash operating expenses [(4)(7)]:

Cash sales and marketing expenses [(5)] 140,310 140,697 124,706

Cash general and administrative expenses [(6)] 247,638 249,232 226,326

**Total cash operating expenses [(4)(7)]** **387,948** **389,929** **351,032**

**Adjusted EBITDA [(8)]** **$** **944,283** **$** **838,740** **$** **799,712**

**Cash gross margins [(9)]** **67 %** **66 %** **66 %**

**Adjusted EBITDA margins[(10)]** **47 %** **45 %** **46 %**

**Adjusted EBITDA flow-through rate [(11)]** **83 %** **(107) %** **43 %**

**FFO [(12)]** **$** **548,152** **$** **406,945** **$** **432,644**

**AFFO [(13)(14)]** **$** **801,793** **$** **657,818** **$** **652,632**

**Basic FFO per share [(15)]** **$** **5.90** **$** **4.40** **$** **4.77**

**Diluted FFO per share [(15)]** **$** **5.87** **$** **4.39** **$** **4.75**

**Basic AFFO per share [(15)]** **$** **8.62** **$** **7.11** **$** **7.19**

**Diluted AFFO per share [(15)]** **$** **8.59** **$** **7.09** **$** **7.16**


(1) The geographic split of our revenues on a services basis is presented below:


**March 31,**

**2022**


-----

**Three Months Ended**

**December 31,**

**2022**


**March 31,**

**2023**


**March 31,**

**2022**


_Americas Revenues:_

Colocation $ 574,098 $ 568,240 $ 522,171

Interconnection 198,639 197,337 181,103

Managed infrastructure 60,860 59,244 49,222

Other 4,872 4,885 5,134

Recurring revenues 838,469 829,706 757,630

Non-recurring revenues 43,906 42,065 42,791

Revenues $ 882,375 $ 871,771 $ 800,421


_EMEA Revenues:_

Colocation $ 515,611 $ 450,480 $ 414,569

Interconnection 72,606 66,710 68,140

Managed infrastructure 31,424 29,431 30,990

Other 25,200 23,882 6,414

Recurring revenues 644,841 570,503 520,113

Non-recurring revenues 46,376 31,208 30,367

Revenues $ 691,217 $ 601,711 $ 550,480


_Asia-Pacific Revenues:_

Colocation $ 318,705 $ 291,480 $ 282,615

Interconnection 65,562 61,572 59,987

Managed infrastructure 18,963 17,819 20,642

Other 3,540 2,300 1,337

Recurring revenues 406,770 373,171 364,581

Non-recurring revenues 17,847 24,192 18,965

Revenues $ 424,617 $ 397,363 $ 383,546


_Worldwide Revenues:_

Colocation $ 1,408,414 $ 1,310,200 $ 1,219,355

Interconnection 336,807 325,619 309,230

Managed infrastructure 111,247 106,494 100,854

Other 33,612 31,067 12,885

Recurring revenues 1,890,080 1,773,380 1,642,324

Non-recurring revenues 108,129 97,465 92,123

Revenues $ 1,998,209 $ 1,870,845 $ 1,734,447


(2) We define cash cost of revenues as cost of revenues less depreciation, amortization, accretion and stock
based compensation as presented below:

Cost of revenues $ 1,006,091 $ 970,700 $ 915,875


-----

**Three Months Ended**

**December 31,**

**2022**


**March 31,**

**2023**


**March 31,**

**2022**


Depreciation, amortization and accretion expense (328,790) (316,549) (321,729)

Stock-based compensation expense (11,323) (11,975) (10,443)

Cash cost of revenues $ 665,978 $ 642,176 $ 583,703


The geographic split of our cash cost of revenues is presented below:

Americas cash cost of revenues $ 245,407 $ 263,374 $ 239,403

EMEA cash cost of revenues 271,179 226,574 202,848

Asia-Pacific cash cost of revenues 149,392 152,228 141,452

Cash cost of revenues $ 665,978 $ 642,176 $ 583,703


(3) We define cash gross profit as revenues less cash cost of revenues (as defined above).

(4) We define cash operating expense as selling, general, and administrative expense less depreciation,

amortization, and stock-based compensation. We also refer to cash operating expense as cash selling,
general and administrative expense or “cash SG&A”.


Selling, general, and administrative expense $ 605,545 $ 607,416 $ 545,198

Depreciation and amortization expense (130,205) (121,943) (114,657)

Stock-based compensation expense (87,392) (95,544) (79,509)

Cash operating expense $ 387,948 $ 389,929 $ 351,032


(5) We define cash sales and marketing expense as sales and marketing expense less depreciation, amortization

and stock-based compensation as presented below:

Sales and marketing expense $ 210,671 $ 207,233 $ 192,511

Depreciation and amortization expense (50,856) (49,604) (47,621)

Stock-based compensation expense (19,505) (16,932) (20,184)

Cash sales and marketing expense $ 140,310 $ 140,697 $ 124,706


(6) We define cash general and administrative expense as general and administrative expense less

depreciation, amortization and stock-based compensation as presented below:

General and administrative expense $ 394,874 $ 400,183 $ 352,687

Depreciation and amortization expense (79,349) (72,339) (67,036)

Stock-based compensation expense (67,887) (78,612) (59,325)

Cash general and administrative expense $ 247,638 $ 249,232 $ 226,326


(7) The geographic split of our cash operating expense, or cash SG&A, as defined above, is presented below:


Americas cash SG&A $ 231,881 $ 214,560 $ 204,463

EMEA cash SG&A 93,525 104,648 87,287

Asia-Pacific cash SG&A 62,542 70,721 59,282

Cash SG&A $ 387,948 $ 389,929 $ 351,032


-----

**Three Months Ended**

**December 31,**

**2022**


**March 31,**

**2023**


**March 31,**

**2022**


(8) We define adjusted EBITDA as net income excluding income tax expense, interest income, interest expense,

other income or expense, loss or gain on debt extinguishment, depreciation, amortization, accretion, stockbased compensation expense, restructuring charges, impairment charges, transaction costs, and gain or loss
on asset sales as presented below:

Net income $ 258,730 $ 128,903 $ 147,693

Income tax expense 55,055 48,807 32,744

Interest income (19,388) (18,462) (2,106)

Interest expense 97,481 94,200 79,965

Other expense (income) (7,503) 28,895 9,549

Gain on debt extinguishment (254) (143) (529)

Depreciation, amortization and accretion expense 458,995 438,492 436,386

Stock-based compensation expense 98,715 107,519 89,952

Transaction costs 1,600 10,529 4,240

Loss on asset sales 852 — 1,818

Adjusted EBITDA $ 944,283 $ 838,740 $ 799,712


The geographic split of our adjusted EBITDA is presented below:

Americas net loss $ (40,492) $ (67,580) $ (19,572)

Americas income tax expense (benefit) 55,142 (33,279) 32,744

Americas interest income (15,175) (16,259) (1,728)

Americas interest expense 84,280 83,363 70,730

Americas other expense (income) 5,104 104,539 (23,390)

Americas gain on debt extinguishment — — (261)

Americas depreciation, amortization and accretion expense 245,107 237,919 230,086

Americas stock-based compensation expense 67,814 76,131 63,917

Americas transaction costs 477 9,003 2,991

Americas loss on asset sales 2,830 — 1,038

Americas adjusted EBITDA $ 405,087 $ 393,837 $ 356,555

EMEA net income $ 199,015 $ 195,224 $ 98,388

EMEA income tax expense — 16,531 —

EMEA interest income (2,540) (1,251) (267)

EMEA interest expense 4,149 2,675 916

EMEA other expense (income) (16,480) (77,880) 29,171

EMEA depreciation, amortization and accretion expense 124,675 116,097 114,866

EMEA stock-based compensation expense 18,836 18,840 16,112

EMEA transaction costs 836 253 1,157

EMEA (gain) loss on asset sales (1,978) — 2

EMEA adjusted EBITDA $ 326,513 $ 270,489 $ 260,345


Asia-Pacific net income $ 100,207 $ 1,259 $ 68,877


-----

**Three Months Ended**


**December 31,**

**2022**


**March 31,**

**2023**

Asia-Pacific income tax expense (benefit) (87) 65,555 —

Asia-Pacific interest income (1,673) (952) (111)

Asia-Pacific interest expense 9,052 8,162 8,319

Asia-Pacific other expense 3,873 2,236 3,768

Asia-Pacific gain on debt extinguishment (254) (143) (268)

Asia-Pacific depreciation, amortization and accretion expense 89,213 84,476 91,434

Asia-Pacific stock-based compensation expense 12,065 12,548 9,923

Asia-Pacific transaction costs 287 1,273 92

Asia-Pacific loss on asset sales — — 778

Asia-Pacific adjusted EBITDA $ 212,683 $ 174,414 $ 182,812


(9) We define cash gross margins as cash gross profit divided by revenues.

Our cash gross margins by geographic region are presented below:

Americas cash gross margins 72 % 70 % 70 %

EMEA cash gross margins 61 % 62 % 63 %

Asia-Pacific cash gross margins 65 % 62 % 63 %


(10) We define adjusted EBITDA margins as adjusted EBITDA divided by revenues.


**March 31,**

**2022**


Americas adjusted EBITDA margins 46 % 45 % 45 %

EMEA adjusted EBITDA margins 47 % 45 % 47 %

Asia-Pacific adjusted EBITDA margins 50 % 44 % 48 %


(11) We define adjusted EBITDA flow-through rate as incremental adjusted EBITDA growth divided by

incremental revenue growth as follows:

Adjusted EBITDA - current period $ 944,283 $ 838,740 $ 799,712

Less adjusted EBITDA - prior period (838,740) (870,916) (787,577)

Adjusted EBITDA growth $ 105,543 $ (32,176) $ 12,135

Revenues - current period $ 1,998,209 $ 1,870,845 $ 1,734,447

Less revenues - prior period (1,870,845) (1,840,659) (1,706,378)

Revenue growth $ 127,364 $ 30,186 $ 28,069

Adjusted EBITDA flow-through rate 83 % (107) % 43 %


(12) FFO is defined as net income or loss, excluding gain or loss from the disposition of real estate assets,

depreciation and amortization on real estate assets and adjustments for unconsolidated joint ventures’ and
non-controlling interests’ share of these items.

Net income $ 258,730 $ 128,903 $ 147,693


-----

**Three Months Ended**

**December 31,**

**2022**


**March 31,**

**2023**


**March 31,**

**2022**


Net (income) loss attributable to non-controlling interests 56 (140) (240)

Net income attributable to Equinix 258,786 128,763 147,453

Adjustments:

Real estate depreciation 283,681 274,625 280,196

Loss on disposition of real estate property 2,561 437 2,845

Adjustments for FFO from unconsolidated joint ventures 3,124 3,120 2,150

FFO attributable to common shareholders $ 548,152 $ 406,945 $ 432,644


(13) AFFO is defined as FFO, excluding depreciation and amortization expense on non-real estate assets,

accretion, stock-based compensation, stock-based charitable contributions, restructuring charges,
impairment charges, transaction costs, an installation revenue adjustment, a straight-line rent expense
adjustment, a contract cost adjustment, amortization of deferred financing costs and debt discounts and
premiums, gain or loss on debt extinguishment, an income tax expense adjustment, net income or loss from
discontinued operations, net of tax, recurring capital expenditures and adjustments from FFO to AFFO
for unconsolidated joint ventures’ and non-controlling interests’ share of these items.

FFO attributable to common shareholders $ 548,152 $ 406,945 $ 432,644

Adjustments:

Installation revenue adjustment (2,237) 6,975 845

Straight-line rent expense adjustment 1,179 1,585 3,660

Amortization of deferred financing costs and debt discounts

and premiums 4,590 4,553 4,204

Contract cost adjustment (6,682) (17,380) (14,939)

Stock-based compensation expense 98,715 107,519 89,952

Stock-based charitable contributions — 34,974 —

Non-real estate depreciation expense 120,945 111,342 105,575

Amortization expense 52,474 51,438 49,569

Accretion expense 1,895 1,086 1,046

Recurring capital expenditures (21,729) (80,047) (23,881)

Gain on debt extinguishment (254) (143) (529)

Transaction costs 1,600 10,529 4,240

Income tax expense (benefit) adjustment 1,582 19,806 (323)

Adjustments for AFFO from unconsolidated joint ventures 1,563 (1,364) 569

AFFO attributable to common shareholders $ 801,793 $ 657,818 $ 652,632


(14) Following is how we reconcile from adjusted EBITDA to AFFO:

Adjusted EBITDA $ 944,283 $ 838,740 $ 799,712

Adjustments:

Interest expense, net of interest income (78,093) (75,738) (77,859)


Amortization of deferred financing costs and debt discounts

and premiums 4,590 4,553 4,204

Income tax expense (55,055) (48,807) (32,744)


-----

**Three Months Ended**

**December 31,**

**2022**


**March 31,**

**2023**


**March 31,**

**2022**


Income tax expense (benefit) adjustment 1,582 19,806 (323)

Straight-line rent expense adjustment 1,179 1,585 3,660

Stock-based charitable contributions — 34,974 —

Contract cost adjustment (6,682) (17,380) (14,939)

Installation revenue adjustment (2,237) 6,975 845

Recurring capital expenditures (21,729) (80,047) (23,881)

Other (expense) income 7,503 (28,895) (9,549)

Loss on disposition of real estate property 2,561 437 2,845

Adjustments for unconsolidated JVs’ and non-controlling
interests 4,743 1,615 2,479

Adjustment for loss on sale of assets (852) — (1,818)

AFFO attributable to common shareholders $ 801,793 $ 657,818 $ 652,632


(15) The shares used in the computation of basic and diluted FFO and AFFO per share attributable to Equinix is

presented below:


Shares used in computing basic net income per share, FFO per

share and AFFO per share 92,971 92,573 90,771

Effect of dilutive securities:

Employee equity awards 369 179 391

Shares used in computing diluted net income per share, FFO

per share and AFFO per share 93,340 92,752 91,162

Basic FFO per share $ 5.90 $ 4.40 $ 4.77

Diluted FFO per share $ 5.87 $ 4.39 $ 4.75

Basic AFFO per share $ 8.62 $ 7.11 $ 7.19

Diluted AFFO per share $ 8.59 $ 7.09 $ 7.16


-----

