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

invest@equinix.com press@equinix.com

**_FOR IMMEDIATE RELEASE_**

**EQUINIX REPORTS FIRST QUARTER 2024 RESULTS**

**_Company Delivers More Than $2.1 Billion in Quarterly Revenues, Marking 85 Consecutive Quarters_**

**_of Top-Line Revenue Growth, the Longest Streak of any S&P 500 Company_**

-  Quarterly revenues increased 6% over the same quarter last year to $2.1 billion, or 7% on a

normalized and constant currency basis

-  Closed 3,800 deals across more than 3,100 customers in Q1

-  Accelerated hyperscale demand drove an incremental 48 megawatts of xScale[®] leasing in EMEA

and APAC since last earnings call, as continued cloud and artificial intelligence (AI) activity

drives strong demand

**REDWOOD CITY, Calif. - May 8, 2024** **-** **[Equinix, Inc. (Nasdaq: EQIX), the world’s digital](https://www.equinix.com/?ls=Public%20Relations&lsd=24q2__--_/_pr-equinix_pr-newswire_press-release__us-en_English_FY24_Q1 earnings_awareness&utm_campaign=us-en__press-release_FY24_Q1 earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_)**

infrastructure company[®], today reported results for the quarter ended March 31, 2024. 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.


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**First-Quarter 2024 Results Summary**

-  **Revenues**

◦ $2.13 billion, a 1% increase over the previous quarter, including a 13% reduction in nonrecurring revenues due to xScale fees

◦ Includes a $14 million negative foreign currency impact when compared to prior guidance
rates

**•** **Operating Income**

◦ $364 million, a 5% increase over the previous quarter, due to strong operating performance
and an operating margin of 17%

**•** **Net Income and Net Income per Share attributable to Common Stockholders**

◦ $231 million, a 2% increase over the previous quarter, primarily due to higher income from
operations

◦ $2.43 per share, a 1% increase over the previous quarter

-  **Adjusted EBITDA**

◦ $992 million, an 8% increase over the previous quarter, and an adjusted EBITDA margin of
47%

◦ Includes a $7 million negative foreign currency impact when compared to prior guidance
rates and $1 million of integration costs

-  **AFFO and AFFO per Share**

◦ $843 million, a 22% increase over the previous quarter, due to strong operating performance
and seasonally lower recurring capital expenditures

◦ $8.86 per share, a 21% increase over the previous quarter

**2024 Annual Guidance Summary**

**•** **Revenues**

◦ $8.692 - $8.792 billion, an increase of 6 - 7% over the previous year, or a normalized and
constant currency increase of 7 - 8%, excluding the year-over-year impact of the power passthrough

◦ Includes a $101 million negative foreign currency impact compared to prior guidance rates

-  **Adjusted EBITDA**

◦ $4.044 - $4.124 billion, a 47% adjusted EBITDA margin

◦ An increase of $5 million compared to prior guidance offset by a $50 million negative foreign
currency impact compared to prior guidance rates

◦ Includes $20 million of integration costs

-  **AFFO and AFFO per Share**

◦ $3.290 - $3.370 billion, an increase of 9 - 12% over the previous year, or a normalized and
constant currency increase of 10 - 13%

◦ An increase of $25 million compared to prior guidance offset by a $36 million negative
foreign currency impact compared to prior guidance rates

◦ $34.45 - $35.29 per share, an increase of 7 - 10% over the previous year, or a normalized and
constant currency increase of 8 - 11%

Equinix converted the presentation of results from thousands to millions in the first quarter of 2024.

Certain rounding adjustments have been made to prior period disclosed amounts.

Equinix is not reasonably able to 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


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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 $2.1 billion in revenue in Q1, a 6% increase compared to_

_the same quarter last year. The rapidly evolving AI landscape continues to serve as a catalyst for_

_economic expansion, creating immense potential for Equinix as our customers recognize the importance_

_of digital initiatives in driving long-term revenue growth and operational efficiency. This strong demand_

_from customers across multiple sectors positions Platform Equinix as the trusted partner for digital_

_leaders to interconnect and enhance the foundational digital infrastructure that powers our world.”_

**Business Highlights**

-  Today, Equinix announced that the Audit Committee of the Company’s Board of Directors

conducted and has substantially completed a previously announced independent investigation,

with the assistance of independent third-party professional advisors. Based on the findings of the

independent investigation, the Audit Committee has concluded that Equinix’s financial reporting

has been accurate, and that the application of its accounting practices has resulted in an

appropriate representation of its operating performance. The Audit Committee had full discretion

over the scope of the investigation and was not restricted in any way. As part of this assessment,

the Audit Committee did not identify any accounting inconsistencies or errors requiring an

adjustment to, or restatement of, previously issued financial statements or non-GAAP measures.

As previously disclosed, shortly after the release of the short seller report, Equinix received a

subpoena from the U.S Attorney’s Office for the Northern District of California. Additionally, on

April 30, 2024, Equinix received a subpoena from the Securities and Exchange Commission. The

company is cooperating fully with both subpoenas and does not expect to comment further on

such matters until appropriate to do so.

-  With strong underlying demand for digital infrastructure, Equinix continues to invest broadly

across its global footprint. The company currently has 50 major projects underway in 34 markets,

across 21 countries. This includes 14 xScale builds, representing more than 16,000 cabinets of

retail capacity and more than 50 megawatts of xScale capacity through the end of 2024. More

than 90% of current retail expansion capital expenditures are related to owned land or owned

buildings with long-term ground leases.


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◦ In Q1, Equinix added new projects in Frankfurt, Madrid, Osaka and Silicon Valley. Since

the Q4 2023 earnings call, Equinix opened three retail projects in Mexico City, Mumbai

and Paris. Additionally, Equinix purchased the company’s Dublin 2, Mumbai 2 and

Stockholm 3 International Business Exchange[TM ] (IBX[®]) facilities resulting in recurring

revenues from owned assets increasing to 67% for Q1.

◦ xScale demand continues to be strong, driven by a significant increase in pre-leasing

activity due to the growing demand for cloud and AI services. Since the last earnings call,

Equinix has pre-leased an incremental 48 megawatts of capacity across its Frankfurt 10,

Osaka 4 and Osaka 5 assets, including approximately 34 megawatts leased in mid-April.

This brings total xScale leasing to nearly 350 megawatts globally with nearly 90% of

both operational and under-construction capacity leased and a meaningful pipeline of

opportunities that Equinix expects to drive continued xScale momentum in the quarters to

come.

◦ In addition, in mid-April, [Equinix announced its first U.S. xScale joint venture with](https://www.equinix.com/newsroom/press-releases/2024/04/equinix-and-pgim-real-estate-enter-into-600-million-jv-for-first-xscale-data-center-in-the-u-s-/?ls=Public%20Relations&lsd=24q2__--_/newsroom/press-releases/2024/04/equinix-and-pgim-real-estate-enter-into-600-million-jv-for-first-xscale-data-center-in-the-u-s-/_pr-equinix_pr-newswire_press-release__us-en_English_FY24_Q1 earnings_awareness&utm_campaign=us-en__press-release_FY24_Q1 earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_)

[PGIM Real Estate for the SV12x asset in Silicon Valley. When combined with its](https://www.equinix.com/newsroom/press-releases/2024/04/equinix-and-pgim-real-estate-enter-into-600-million-jv-for-first-xscale-data-center-in-the-u-s-/?ls=Public%20Relations&lsd=24q2__--_/newsroom/press-releases/2024/04/equinix-and-pgim-real-estate-enter-into-600-million-jv-for-first-xscale-data-center-in-the-u-s-/_pr-equinix_pr-newswire_press-release__us-en_English_FY24_Q1 earnings_awareness&utm_campaign=us-en__press-release_FY24_Q1 earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_)

existing joint ventures in Asia-Pacific, Europe and Latin America, this new joint venture

will bring the expected global xScale portfolio to more than $8 billion of investment

across more than 35 facilities and greater than 725 megawatts of power capacity when

completed.

Equinix’s global interconnection franchise continues to perform with more than 468,000 total

interconnections deployed on its platform. In Q1, Equinix interconnection adds increased to

6,200, supported by healthy gross adds activity and a moderation of consolidations into higher

bandwidth connections.

◦ Equinix Fabric[®] and Network Edge continue to over-index the broader business in terms

of revenue growth with demand from customers looking to use the combination of

Fabric, Network Edge and Equinix Metal[®] for their digital infrastructure needs. Equinix’s

engineering teams recently completed the integration of Metal and Fabric, significantly

improving the virtual connection experience for Metal users.


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◦ In Q1, Equinix added one new native cloud on-ramp in Madrid, further strengthening its

cloud ecosystem, which now includes 220 native cloud on-ramps across its portfolio,

spanning 47 metros. This represents a nearly 40% market share of private cloud on-ramps

in the markets in which the company operates. Equinix remains an integral part of

hyperscaler architectures, with these customers collectively representing more than $1.3

billion of annualized retail revenue in Q1, with deployments across an average of more

than 60 Equinix IBX data centers around the world.

◦ As the value of data becomes increasingly important, customers are seeking strategies to

enhance control of their proprietary data, enabling greater agility while balancing

performance and security requirements. By placing data in proximity to Equinix’s rich

ecosystem of cloud and storage providers, customers can unlock the value of cloud

adjacent storage and multicloud networking. In Q1, global cybersecurity leader

CrowdStrike leveraged this proximity by deploying a cloud adjacent storage solution on

Platform Equinix[®] in EMEA.

◦ Internet Exchange saw peak traffic go up 5% quarter over quarter and 24% year over

year, to nearly 38 terabits per second led by the Americas.

Equinix’s Channel program delivered another solid quarter, accounting for over 60% of new

logos. It continued to see growth from partners such as AT&T, Avant, Dell, Kyndryl and

Zenlaver, with wins across a wide range of industry verticals and a broad mix of Equinix services,

as well as strong go-to-market momentum with key hyperscalers, as it partners to meet end
customer needs for hybrid cloud and private AI needs.

Equinix remains dedicated to furthering its Future First Sustainability strategy and continues to

make strides in this area.

◦ After successfully executing Power Purchase Agreements (PPAs) in the U.S. and Europe

over the past decade, in February, [Equinix announced a new PPA in Australia, the](https://www.equinix.com/newsroom/press-releases/2024/02/expanding-renewable-energy-supply-in-high-impact-markets-equinix-executes-clean-energy-contract-in-australia/?ls=Public%20Relations&lsd=24q2__--_/newsroom/press-releases/2024/02/expanding-renewable-energy-supply-in-high-impact-markets-equinix-executes-clean-energy-contract-in-australia/_pr-equinix_pr-newswire_press-release__us-en_English_FY24_Q1 earnings_awareness&utm_campaign=us-en__press-release_FY24_Q1 earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_)

[company’s first long-term renewable energy agreement in the Asia-Pacific region. When](https://www.equinix.com/newsroom/press-releases/2024/02/expanding-renewable-energy-supply-in-high-impact-markets-equinix-executes-clean-energy-contract-in-australia/?ls=Public%20Relations&lsd=24q2__--_/newsroom/press-releases/2024/02/expanding-renewable-energy-supply-in-high-impact-markets-equinix-executes-clean-energy-contract-in-australia/_pr-equinix_pr-newswire_press-release__us-en_English_FY24_Q1 earnings_awareness&utm_campaign=us-en__press-release_FY24_Q1 earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_)

combined with agreements in France, Iberia, Nordics and the U.S., Equinix will now

support more than 1 gigawatt of clean energy generation in high-impact markets.


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◦ Last month, Equinix published its ninth annual [Integrated Sustainability Report, which](https://sustainability.equinix.com/?ls=Public%20Relations&lsd=24q2__--_/_pr-equinix_pr-newswire_press-release__us-en_English_FY24_Q1 earnings_awareness&utm_campaign=us-en__press-release_FY24_Q1 earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_)

highlights advancements in key environmental, social and governance (ESG) goals.

Equinix continues to make meaningful progress toward its long-term goal to achieve

100% renewable energy coverage by 2030. For 2023, it maintained 96% renewable

energy coverage across its portfolio, marking the sixth consecutive year of greater than

90% renewable energy coverage across its global footprint. Also in 2023, Equinix’s

operations team invested $78 million in high returning efficiency projects, which resulted

in improving its average annual Power Usage Effectiveness (PUE) by over 8% year over

[year to 1.42. In addition, the company continued to make progress on its commitment to](https://www.equinix.com/newsroom/press-releases/2022/12/equinix-to-adjust-the-thermostat-to-optimize-data-center-energy-use/?ls=Public%20Relations&lsd=24q2__--_/newsroom/press-releases/2022/12/equinix-to-adjust-the-thermostat-to-optimize-data-center-energy-use/_pr-equinix_pr-newswire_press-release__us-en_English_FY24_Q1 earnings_awareness&utm_campaign=us-en__press-release_FY24_Q1 earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_)

[reducing its overall power use by increasing operating temperature ranges within its](https://www.equinix.com/newsroom/press-releases/2022/12/equinix-to-adjust-the-thermostat-to-optimize-data-center-energy-use/?ls=Public%20Relations&lsd=24q2__--_/newsroom/press-releases/2022/12/equinix-to-adjust-the-thermostat-to-optimize-data-center-energy-use/_pr-equinix_pr-newswire_press-release__us-en_English_FY24_Q1 earnings_awareness&utm_campaign=us-en__press-release_FY24_Q1 earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_)

facilities, with more than 50 data centers now operationally ready to support a wider

range of A1A temperature standards.

-  In Q1, Equinix announced the following leadership transitions, reflecting the company’s

commitment to driving the next chapter of growth as the trusted platform for enterprise digital

transformation:

◦ [In March, Equinix announced a planned leadership transition effective late Q2 2024,](https://www.equinix.com/newsroom/press-releases/2024/03/equinix-announces-leadership-succession-plans-ceo-to-move-to-executive-chair-and-google-cloud-exec-selected-as-next-ceo/?ls=Public%20Relations&lsd=24q2__--_/newsroom/press-releases/2024/03/equinix-announces-leadership-succession-plans-ceo-to-move-to-executive-chair-and-google-cloud-exec-selected-as-next-ceo/_pr-equinix_pr-newswire_press-release__us-en_English_FY24_Q1 earnings_awareness&utm_campaign=us-en__press-release_FY24_Q1 earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_)

whereby current President and CEO Charles Meyers will transition to the role of

Executive Chairman, and Adaire Fox-Martin will begin serving as Equinix President and

CEO. Peter Van Camp, currently Executive Chairman, will step away from his formal

responsibilities as a Board member to take the role of Special Advisor to the Board. With

more than 25 years of experience in the technology sector, including four years on the

Equinix Board of Directors, Fox-Martin brings a distinguished track record, most

recently as President of Go-to-Market for Google Cloud and Head of Google Ireland.

◦ [In February, the company appointed Merrie Williamson as Executive Vice President and](https://www.equinix.com/newsroom/press-releases/2024/02/microsoft-intel-and-ai-veteran-merrie-williamson-to-join-equinix-as-chief-customer-and-revenue-officer/?ls=Public%20Relations&lsd=24q2__--_/newsroom/press-releases/2024/02/microsoft-intel-and-ai-veteran-merrie-williamson-to-join-equinix-as-chief-customer-and-revenue-officer/_pr-equinix_pr-newswire_press-release__us-en_English_FY24_Q1 earnings_awareness&utm_campaign=us-en__press-release_FY24_Q1 earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_)

[Chief Customer and Revenue Officer (CCRO). Williamson has more than 20 years of](https://www.equinix.com/newsroom/press-releases/2024/02/microsoft-intel-and-ai-veteran-merrie-williamson-to-join-equinix-as-chief-customer-and-revenue-officer/?ls=Public%20Relations&lsd=24q2__--_/newsroom/press-releases/2024/02/microsoft-intel-and-ai-veteran-merrie-williamson-to-join-equinix-as-chief-customer-and-revenue-officer/_pr-equinix_pr-newswire_press-release__us-en_English_FY24_Q1 earnings_awareness&utm_campaign=us-en__press-release_FY24_Q1 earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_)

experience in helping companies evolve their digital business through her leadership

roles at Microsoft and Intel.

**Business Outlook**

For the second quarter of 2024, the company expects revenues to range between $2.148 and $2.168

billion, an increase of approximately 1 - 2% over the previous quarter, or a normalized and constant

currency increase of 2 - 3% excluding the quarter-over-quarter impact of the power pass-through. This


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guidance includes a $7 million negative foreign currency impact when compared to the average FX rates

in Q1 2024. Adjusted EBITDA is expected to range between $1.019 and $1.039 billion. This guidance

includes a $4 million negative foreign currency impact when compared to the average FX rates in Q1

2024 and $6 million of integration costs from acquisitions. Recurring capital expenditures are expected to

range between $38 and $58 million.

For the full year of 2024, total revenues are expected to range between $8.692 and $8.792 billion, a 6 
7% increase over the previous year, or a normalized and constant currency increase of 7 - 8% excluding

the year-over-year impact of the power pass-through. This updated guidance maintains prior full year

revenue guidance, offset by a $101 million negative foreign currency impact when compared to the prior

guidance rates. Adjusted EBITDA is expected to range between $4.044 and $4.124 billion, an adjusted

EBITDA margin of 47%. This updated guidance includes a full year adjusted EBITDA raise of $5

million, offset by a $50 million negative foreign currency impact when compared to prior guidance rates.

AFFO is expected to range between $3.290 and $3.370 billion, an increase of 9 - 12% over the previous

year, or a normalized and constant currency increase of 10 - 13%. This updated guidance includes an

underlying raise of $25 million from lower net interest expense and lower integration costs, offset by a

$36 million negative foreign currency impact when compared to prior guidance rates. AFFO per share is

expected to range between $34.45 and $35.29, an increase of 7 - 10% over the previous year, or a

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

between $2.780 and $3.030 billion. Non-recurring capital expenditures, including xScale-related capital

expenditures, are expected to range between $2.570 and $2.800 billion, and recurring capital expenditures

are expected to range between $210 and $230 million. xScale-related on-balance sheet capital

expenditures are expected to range between $12 and $52 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 2024 guidance, taking into consideration the impact of our

current foreign currency hedges, have been updated to $1.10 to the Euro, $1.27 to the Pound, S$1.35 to

the U.S. Dollar, ¥151 to the U.S. Dollar, A$1.53 to the U.S. Dollar, HK$7.83 to the U.S. Dollar, R$5.01

to the U.S. Dollar and C$1.35 to the U.S. Dollar. The Q1 2024 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%, 10%, 8%, 6%, 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


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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 2024 Results Conference Call and Replay Information**

Equinix will discuss its quarterly results for the period ended March 31, 2024, along with its future

outlook, in its quarterly conference call on Thursday, May 9, 2024, at 5:30 PM ET (2:30 PM 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=24q2__--_/investors_pr-equinix_pr-newswire_press-release__us-en_English_FY24_Q1 earnings_awareness&utm_campaign=us-en__press-release_FY24_Q1 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 Sunday, June 30, 2024, by dialing

1-888-566-0094 and referencing the passcode 2024. In addition, the webcast will be available at

[www.equinix.com/investors (no password required).](https://www.equinix.com/investors?ls=Public%20Relations&lsd=24q2__--_/investors_pr-equinix_pr-newswire_press-release__us-en_English_FY24_Q1 earnings_awareness&utm_campaign=us-en__press-release_FY24_Q1 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=24q2__--_/investors_pr-equinix_pr-newswire_press-release__us-en_English_FY24_Q1 earnings_awareness&utm_campaign=us-en__press-release_FY24_Q1 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=24q2__--_/investors_pr-equinix_pr-newswire_press-release__us-en_English_FY24_Q1 earnings_awareness&utm_campaign=us-en__press-release_FY24_Q1 earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_)

**About Equinix**

[Equinix (Nasdaq: EQIX) is the world’s digital infrastructure company[®]. Digital leaders harness Equinix's](https://www.equinix.com/?ls=Public%20Relations&lsd=24q2__--_/_pr-equinix_pr-newswire_press-release__us-en_English_FY24_Q1 earnings_awareness&utm_campaign=us-en__press-release_FY24_Q1 earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_)

trusted platform to bring together and interconnect foundational infrastructure at software speed. Equinix

enables organizations to access all the right places, partners and possibilities to scale with agility, speed

the launch of digital services, deliver world-class experiences and multiply their value, while supporting

their sustainability goals.

**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


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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


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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; stock price_

_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; risks related to regulatory inquiries or litigation 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 millions, except per share data)**

**(unaudited)**

**Three Months Ended**


**March 31,**

**2024**


**December 31,**

**2023**


**March 31,**

**2023**



Recurring revenues $ 2,010 $ 1,976 $ 1,890

Non-recurring revenues 117 134 108

**Revenues** **2,127** **2,110** **1,998**

Cost of revenues 1,091 1,092 1,006

**Gross profit** **1,036** **1,018** **992**

Operating expenses:

Sales and marketing 226 217 210

General and administrative 444 449 395

Transaction costs 2 6 2

Loss on asset sales — — 1

**Total operating expenses** **672** **672** **608**

**Income from operations** **364** **346** **384**

Interest and other expense:

Interest income 24 28 19

Interest expense (104) (103) (97)

Other income (expense) (6) (1) 8

Loss on debt extinguishment (1) — —

**Total interest and other, net** **(87)** **(76)** **(70)**

**Income before income taxes** **277** **270** **314**

Income tax expense (46) (43) (55)

**Net income** **$** **231 $** **227 $** **259**

**Earnings per share (“EPS”) attributable to common stockholders:**

Basic EPS $ 2.44 $ 2.41 $ 2.78

Diluted EPS $ 2.43 $ 2.40 $ 2.77

Weighted-average shares for basic EPS (in thousands) 94,665 94,268 92,971

Weighted-average shares for diluted EPS (in thousands) 95,156 94,667 93,340


-----

**EQUINIX, INC.**

**Condensed Consolidated Statements of Comprehensive Income**

**(in millions)**

**(unaudited)**

**Three Months Ended**


**March 31,**

**2024**


**December**

**31, 2023**


**March 31,**

**2023**



Net income $ 231 $ 227 $ 259

Other comprehensive income (loss), net of tax:

Foreign currency translation adjustment (“CTA”) gain (loss) (358) 480 157

Net investment hedge CTA gain (loss) 130 (217) (40)

Unrealized gain (loss) on cash flow hedges 20 (26) (13)

Total other comprehensive income (loss), net of tax (208) 237 104

**Comprehensive income, net of tax** **$** **23 $** **464 $** **363**


-----

**EQUINIX, INC.**

**Condensed Consolidated Balance Sheets**

**(in millions, except headcount)**

**(unaudited)**

**March 31, 2024** **December 31, 2023**


**Assets**
Cash and cash equivalents $ 1,527 $ 2,096

Accounts receivable, net 1,079 1,004

Other current assets 561 468

**Total current assets** **3,167** **3,568**

Property, plant and equipment, net 18,511 18,601

Operating lease right-of-use assets 1,395 1,449

Goodwill 5,621 5,737

Intangible assets, net 1,624 1,705

Other assets 1,619 1,591

**Total assets** **$** **31,937** **$** **32,651**

**Liabilities, Redeemable Non-Controlling Interest and Stockholders’ Equity**
Accounts payable and accrued expenses $ 1,077 $ 1,187

Accrued property, plant and equipment 321 398

Current portion of operating lease liabilities 136 131

Current portion of finance lease liabilities 165 138

Current portion of mortgage and loans payable 7 8

Current portion of senior notes 999 998

Other current liabilities 186 302

**Total current liabilities** **2,891** **3,162**

Operating lease liabilities, less current portion 1,280 1,331

Finance lease liabilities, less current portion 2,058 2,123

Mortgage and loans payable, less current portion 654 663

Senior notes, less current portion 11,978 12,062

Other liabilities 752 796

**Total liabilities** **19,613** **20,137**

Redeemable non-controlling interest 25 25

**Common stockholders’ equity:**
Common stock — —

Additional paid-in capital 18,779 18,596

Treasury stock (50) (56)

Accumulated dividends (9,097) (8,695)

Accumulated other comprehensive loss (1,498) (1,290)

Retained earnings 4,165 3,934

**Total stockholders’ equity** **12,299** **12,489**

**Total liabilities, redeemable non-controlling interest and**
**stockholders’ equity** **$** **31,937** **$** **32,651**

Ending headcount by geographic region is as follows:
Americas headcount 6,055 5,953

EMEA headcount 4,283 4,267

Asia-Pacific headcount 3,016 2,931

Total headcount 13,354 13,151


-----

**EQUINIX, INC.**

**Summary of Debt Principal Outstanding**

**(in millions)**

**(unaudited)**

**March 31, 2024** **December 31, 2023**


Finance lease liabilities $ 2,223 $ 2,261

Term loans 634 642

Mortgage payable and other loans payable 27 29

Plus: debt discount and issuance costs, net 1 1

Total mortgage and loans payable principal 662 672

Senior notes 12,977 13,060

Plus: debt discount and issuance costs 103 108

Total senior notes principal 13,080 13,168

Total debt principal outstanding $ 15,965 $ 16,101


-----

**EQUINIX, INC.**

**Condensed Consolidated Statements of Cash Flows**

**(in millions)**

**(unaudited)**


**Three Months Ended**


**March 31,**

**2024**


**December**

**31, 2023**


**March 31,**

**2023**


Cash flows from operating activities:


Net income $ 231 $ 227 $ 259

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

Depreciation, amortization and accretion 525 462 459

Stock-based compensation 101 106 99

Amortization of debt issuance costs and debt discounts 5 4 5

Loss on debt extinguishment 1 — —

Loss on asset sales — — 1

Other items 6 17 5

Changes in operating assets and liabilities:

Accounts receivable (85) 50 (54)

Income taxes, net (9) 11 5

Accounts payable and accrued expenses (56) 76 (73)

Operating lease right-of-use assets 38 22 35

Operating lease liabilities (32) (28) (34)

Other assets and liabilities (127) 52 (15)

**Net cash provided by operating activities** **598** **999** **692**

Cash flows from investing activities:

Purchases, sales and maturities of investments, net (3) (54) (24)

Real estate acquisitions (17) (231) (40)

Purchases of other property, plant and equipment (707) (996) (530)

Proceeds from asset sales — — 72

**Net cash used in investing activities** **(727)** **(1,281)** **(522)**

Cash flows from financing activities:

Proceeds from employee equity programs 48 — 45

Payment of dividend distributions (412) (403) (326)

Proceeds from public offering of common stock, net of offering costs — 433 301

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

Repayment of finance lease liabilities (31) (51) (36)

Repayment of mortgage and loans payable (2) (1) (3)

Debt issuance costs — — (4)

**Net cash provided by (used in) financing activities** **(397)** **(22)** **542**

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

restricted cash (40) 42 24

Net increase (decrease) in cash, cash equivalents, and restricted cash (566) (262) 736

Cash, cash equivalents and restricted cash at beginning of period 2,096 2,358 1,908

**Cash, cash equivalents and restricted cash at end of period** **$** **1,530 $** **2,096 $** **2,644**

Supplemental cash flow information:

Cash paid for taxes $ 64 $ 27 $ 49

Cash paid for interest $ 101 $ 136 $ 104


-----

**Three Months Ended**


**March 31,**

**2024**


**December**

**31, 2023**


**March 31,**

**2023**



**Free cash flow (negative free cash flow) (1)** **$** **(126) $** **(228) $** **194**

**Adjusted free cash flow (adjusted negative free cash flow) (2)** **$** **(109) $** **3 $** **234**

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

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 $ 598 $ 999 $ 692

Net cash used in investing activities as presented above (727) (1,281) (522)

Purchases, sales and maturities of investments, net 3 54 24

Free cash flow (negative free cash flow) $ (126) $ (228) $ 194

(2) We define adjusted free cash flow (adjusted negative 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 $ (126) $ (228) $ 194

Less real estate acquisitions 17 231 40

Adjusted free cash flow (adjusted negative free cash flow) $ (109) $ 3 $ 234


-----

**EQUINIX, INC.**

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

**(in millions)**

**(unaudited)**

**Three Months Ended**


**December 31,**

**2023**


**March 31,**

**2024**


**March 31,**

**2023**


Recurring revenues $ 2,010 $ 1,976 $ 1,890

Non-recurring revenues 117 134 108

Revenues [(1)] 2,127 2,110 1,998

Cash cost of revenues [(2)] 714 757 666

**Cash gross profit [(3)]** **1,413** **1,353** **1,332**

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

Cash sales and marketing expenses [(5)] 154 146 139

Cash general and administrative expenses [(6)] 267 287 248

**Total cash operating expenses [(4)(7)]** **421** **433** **387**

**Adjusted EBITDA [(8)]** **$** **992** **$** **920** **$** **945**

**Cash gross margins [(9)]** **66 %** **64 %** **67 %**

**Adjusted EBITDA margins[(10)]** **47 %** **44 %** **47 %**

**Adjusted EBITDA flow-through rate [(11)]** **424 %** **(31) %** **83 %**

**FFO [(12)]** **$** **553** **$** **525** **$** **548**

**AFFO [(13)(14)]** **$** **843** **$** **691** **$** **802**

**Basic FFO per share [(15)]** **$** **5.84** **$** **5.56** **$** **5.90**

**Diluted FFO per share [(15)]** **$** **5.81** **$** **5.54** **$** **5.87**

**Basic AFFO per share [(15)]** **$** **8.91** **$** **7.33** **$** **8.62**

**Diluted AFFO per share [(15)]** **$** **8.86** **$** **7.30** **$** **8.59**


-----

**Three Months Ended**

**December 31,**

**2023**


**March 31,**

**2024**

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

_Americas Revenues:_

Colocation $ 607 $ 610 $ 573

Interconnection 215 211 199

Managed infrastructure 66 65 61

Other 6 7 5

Recurring revenues 894 893 838

Non-recurring revenues 45 39 44

Revenues $ 939 $ 932 $ 882


_EMEA Revenues:_

Colocation $ 549 $ 541 $ 516

Interconnection 83 79 73

Managed infrastructure 35 33 31

Other 24 24 25

Recurring revenues 691 677 645

Non-recurring revenues 36 74 46

Revenues $ 727 $ 751 $ 691


_Asia-Pacific Revenues:_

Colocation $ 334 $ 318 $ 319

Interconnection 70 68 65

Managed infrastructure 17 17 19

Other 4 3 4

Recurring revenues 425 406 407

Non-recurring revenues 36 21 18

Revenues $ 461 $ 427 $ 425


_Worldwide Revenues:_


**March 31,**

**2023**


Colocation $ 1,490 $ 1,469 $ 1,408

Interconnection 368 358 337

Managed infrastructure 118 115 111

Other 34 34 34

Recurring revenues 2,010 1,976 1,890

Non-recurring revenues 117 134 108

Revenues $ 2,127 $ 2,110 $ 1,998


(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 $ 1,091 $ 1,092 $ 1,006


-----

**Three Months Ended**


**December 31,**

**2023**


**March 31,**

**2024**

Depreciation, amortization and accretion expense (364) (322) (329)

Stock-based compensation expense (13) (13) (11)

Cash cost of revenues $ 714 $ 757 $ 666


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

Americas cash cost of revenues $ 270 $ 263 $ 246

EMEA cash cost of revenues 305 326 271

Asia-Pacific cash cost of revenues 139 168 149

Cash cost of revenues $ 714 $ 757 $ 666


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


**March 31,**

**2023**


(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 $ 670 $ 666 $ 605

Depreciation and amortization expense (161) (140) (130)

Stock-based compensation expense (88) (93) (88)

Cash operating expense $ 421 $ 433 $ 387


(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 $ 226 $ 217 $ 210

Depreciation and amortization expense (51) (51) (51)

Stock-based compensation expense (21) (20) (20)

Cash sales and marketing expense $ 154 $ 146 $ 139


(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 $ 444 $ 449 $ 395

Depreciation and amortization expense (110) (89) (79)

Stock-based compensation expense (67) (73) (68)

Cash general and administrative expense $ 267 $ 287 $ 248


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

Americas cash SG&A $ 259 $ 257 $ 230

EMEA cash SG&A 95 105 94

Asia-Pacific cash SG&A 67 71 63


-----

**Three Months Ended**

**December 31,**

**2023**


**March 31,**

**2024**


**March 31,**

**2023**


Cash SG&A $ 421 $ 433 $ 387


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

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

Net income $ 231 $ 227 $ 259

Income tax expense 46 43 55

Interest income (24) (28) (19)

Interest expense 104 103 97

Other expense (income) 6 1 (8)

Loss on debt extinguishment 1 — —

Depreciation, amortization and accretion expense 525 462 459

Stock-based compensation expense 101 106 99

Transaction costs 2 6 2

Loss on asset sales — — 1

Adjusted EBITDA $ 992 $ 920 $ 945


The geographic split of our adjusted EBITDA is presented below:


Americas net income (loss) $ (46) $ 57 $ (40)

Americas income tax expense (benefit) 46 (89) 55

Americas interest income (15) (20) (15)

Americas interest expense 89 87 84

Americas other expense (income) (37) 51 4

Americas depreciation, amortization and accretion expense 305 251 245

Americas stock-based compensation expense 66 71 68

Americas transaction costs 1 3 1

Americas loss on asset sales — — 3

Americas adjusted EBITDA $ 409 $ 411 $ 405


EMEA net income $ 135 $ 174 $ 199

EMEA income tax expense — 49 —

EMEA interest income (5) (4) (3)

EMEA interest expense 4 5 4

EMEA other expense (income) 39 (54) (16)

EMEA depreciation, amortization and accretion expense 133 125 125

EMEA stock-based compensation expense 21 21 19

EMEA transaction costs 1 3 1

EMEA gain on asset sales — — (2)

EMEA adjusted EBITDA $ 328 $ 319 $ 327


-----

**Three Months Ended**

**December 31,**

**2023**


**March 31,**

**2024**

Asia-Pacific net income (loss) $ 142 $ (4) $ 100

Asia-Pacific income tax expense — 83 —

Asia-Pacific interest income (4) (4) (1)

Asia-Pacific interest expense 11 11 9

Asia-Pacific other expense 4 4 4

Asia-Pacific loss on debt extinguishment 1 — —

Asia-Pacific depreciation, amortization and accretion expense 87 86 89

Asia-Pacific stock-based compensation expense 14 14 12

Asia-Pacific adjusted EBITDA $ 255 $ 190 $ 213


(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 71 % 72 % 72 %

EMEA cash gross margins 58 % 57 % 61 %

Asia-Pacific cash gross margins 70 % 61 % 65 %


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


**March 31,**

**2023**


Americas adjusted EBITDA margins 44 % 44 % 46 %

EMEA adjusted EBITDA margins 45 % 43 % 47 %

Asia-Pacific adjusted EBITDA margins 55 % 44 % 50 %


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

incremental revenue growth as follows:

Adjusted EBITDA - current period $ 992 $ 920 $ 945

Less adjusted EBITDA - prior period (920) (936) (839)

Adjusted EBITDA growth $ 72 $ (16) $ 106

Revenues - current period $ 2,127 $ 2,110 $ 1,998

Less revenues - prior period (2,110) (2,061) (1,871)

Revenue growth $ 17 $ 49 $ 127

Adjusted EBITDA flow-through rate 424 % (33) % 83 %


(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 noncontrolling interests’ share of these items.

Net income $ 231 $ 227 $ 259


-----

**Three Months Ended**

**December 31,**

**2023**


**March 31,**

**2024**


**March 31,**

**2023**


Adjustments:

Real estate depreciation 316 290 284

Loss on disposition of real estate property — 2 2

Adjustments for FFO from unconsolidated joint ventures 6 6 3

FFO attributable to common stockholders $ 553 $ 525 $ 548


(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 noncontrolling interests’ share of these items.

FFO attributable to common stockholders $ 553 $ 525 $ 548

Adjustments:

Installation revenue adjustment (2) 1 (2)

Straight-line rent expense adjustment 6 (6) 1

Contract cost adjustment (8) (16) (7)

Amortization of deferred financing costs and debt discounts 5 4 5

Stock-based compensation expense 101 106 99

Non-real estate depreciation expense 158 121 121

Amortization expense 52 52 52

Accretion expense adjustment (1) (1) 2

Recurring capital expenditures (21) (105) (23)

Loss on debt extinguishment 1 — —

Transaction costs 2 6 2

Income tax expense adjustment — 1 2

Adjustments for AFFO from unconsolidated joint ventures (3) 3 2

AFFO attributable to common stockholders $ 843 $ 691 $ 802


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

Adjusted EBITDA $ 992 $ 920 $ 945

Adjustments:

Interest expense, net of interest income (80) (75) (78)

Amortization of deferred financing costs and debt discounts 5 4 5

Income tax expense (46) (43) (55)

Income tax expense adjustment — 1 2

Straight-line rent expense adjustment 6 (6) 1

Contract cost adjustment (8) (16) (7)


-----

**Three Months Ended**

**December 31,**

**2023**


**March 31,**

**2024**


**March 31,**

**2023**


Installation revenue adjustment (2) 1 (2)

Recurring capital expenditures (21) (105) (23)

Other income (expense) (6) (1) 8

Loss on disposition of real estate property — 2 2

Adjustments for unconsolidated JVs’ and non-controlling interests 3 9 5

Adjustment for loss on sale of assets — — (1)

AFFO attributable to common stockholders $ 843 $ 691 $ 802


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

stockholders is presented below:


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

and AFFO per share (in thousands) 94,665 94,268 92,971

Effect of dilutive securities:

Employee equity awards (in thousands) 491 399 369

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

share and AFFO per share (in thousands) 95,156 94,667 93,340

Basic FFO per share $ 5.84 $ 5.56 $ 5.90

Diluted FFO per share $ 5.81 $ 5.54 $ 5.87

Basic AFFO per share $ 8.91 $ 7.33 $ 8.62

Diluted AFFO per share $ 8.86 $ 7.30 $ 8.59


-----

