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

invest@equinix.com press@equinix.com

**_FOR IMMEDIATE RELEASE_**

**EQUINIX REPORTS SECOND-QUARTER 2023 RESULTS**

**_Strong Demand for Digital Infrastructure as Customers Accelerate Integration of AI into their_**

**_Operations and Remain Committed to Hybrid Cloud Architectures_**

-  Quarterly revenues increased 11% over the same quarter last year, to $2.0 billion, or 14% on a

normalized and constant currency basis

-  Solid gross and net bookings resulted in more than 4,100 deals across more than 3,100 customers

-  Channel bookings accounted for 40% of total bookings and nearly 60% of new logos

**REDWOOD CITY, Calif. - August 2, 2023** **-** **[Equinix, Inc. (Nasdaq: EQIX), the world’s digital](https://www.equinix.com/?ls=Public%20Relations&lsd=22q3__--_/_pr-equinix_pr-newswire_press-release__us-en_AMER_23q2-earnings_awareness&utm_campaign=us-en__press-release_23q2-earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_)**

infrastructure company[TM], today reported results for the quarter ended June 30, 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.


-----

**Second-Quarter 2023 Results Summary**

-  **Revenues**

◦ $2.02 billion, an 11% increase over the same quarter last year

◦ Includes a $3 million negative foreign currency impact when compared to prior guidance
rates

**•** **Operating Income**

◦ $332 million, a 5% increase over the same quarter last year, although impacted by an
expected increase in average energy hedge costs and higher seasonal consumption

◦ Operating margin of 16%

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

◦ $207 million, a 4% decrease from the same quarter last year, primarily due to lower income
from operations and higher income tax expense given a favorable tax settlement in 2022

◦ $2.21 per share, a 7% decrease from the same quarter last year

-  **Adjusted EBITDA**

◦ $901 million, a 5% increase over the same quarter last year, and an adjusted EBITDA margin
of 45%

◦ Includes a $2 million negative foreign currency impact when compared to prior guidance
rates and $3 million of integration costs

-  **AFFO and AFFO per Share**

◦ $754 million, a 9% increase over the same quarter last year

◦ $8.04 per share, a 6% increase over the same quarter last year

**2023 Annual Guidance Summary**

**•** **Revenues**

◦ $8.171 - $8.251 billion, an increase of 12 - 14% over the previous year, or a normalized and
constant currency increase of 14 - 15%

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

-  **Adjusted EBITDA**

◦ $3.660 - $3.720 billion, a 45% adjusted EBITDA margin

◦ An increase of $20 million compared to prior guidance offset by a $5 million negative foreign
currency impact

◦ Includes $23 million of integration costs

-  **AFFO and AFFO per Share**

◦ $2.963 - $3.023 billion, an increase of 9 - 11% over the previous year, or a normalized and
constant currency increase of 11 - 14%

◦ An increase of $28 million compared to prior guidance offset by a $2 million negative foreign
currency impact

◦ $31.51 - $32.15 per share, an increase of 7 - 9% over the previous year, or a normalized and
constant currency increase of 9 - 11%

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 continue to see momentum in our business as digital transformation accelerates the pace of_

_innovation and changes the way business is done. By 2026[1], IDC is forecasting that 40% of revenue from_

_G2000 companies will come from digital products, services and experiences, a dynamic that is reshaping_

_the basis of competition in nearly every industry, and making digital an unprecedented force for economic_

_growth.”_

**Business Highlights**

-  With customers deployed in all three regions representing approximately two-thirds of recurring

revenues, Equinix continues to invest behind the scale and reach of its data center services

portfolio. The company currently has 53 major projects underway across 40 metros in 24

countries, including 11 xScale builds that are expected to deliver approximately 90 megawatts of

capacity once opened.

◦ In Q2, Equinix added 12 new projects including new International Business Exchange™

(IBX[®]) data center builds in Lisbon, Monterrey and Mumbai—in addition to the

company’s first build in Kuala Lumpur, one of the most strategic markets in Asia.

◦ Equinix was selected to build incremental data center capacity in Singapore in response

[to the Singapore Government’s Data Center Call for Application process. This build will](https://www.imda.gov.sg/resources/press-releases-factsheets-and-speeches/press-releases/2023/four-data-centre-proposals-selected-as-part-of-pilot-data-centre-call-for-application)

help to strengthen the country’s digital capabilities as well as support Singapore’s Green

Plan and digital economy.

-  Equinix’s Channel program delivered another strong quarter, accounting for 40% of bookings and

nearly 60% of new logos. It continues to see growth from partners like Accenture, Avant, Cisco,

Dell and HPE, with wins across a wide range of industry verticals and digital first use cases.

__________________________________________

1 IDC Blog: “Leadership in a Changing Digital World: Five Mandates,” April 2023.


-----

◦ In June, Equinix announced an [expanded relationship with Hewlett Packard Enterprise](https://www.hpe.com/us/en/newsroom/press-release/2023/06/hewlett-packard-enterprise-extends-private-cloud-portfolio-at-equinix-data-centers-to-give-customers-more-choice-and-fast-access-to-hybrid-cloud.html)

for pre-provisioned HPE GreenLake for Private Cloud Enterprise and HPE GreenLake

for Private Cloud Business Edition on demand at select Equinix IBX data centers in

seven metros around the globe.

-  Equinix’s global interconnection franchise continues to perform with over 456,000 total

interconnections. In Q2, interconnection revenues stepped up 10% year over year as reported or

11% year over year on a normalized and constant currency basis, driven by strong gross adds,

increasing traffic levels and healthy pricing.

◦ Equinix Fabric[®] saw total virtual connections surpassing 50,000 in the quarter for the first

time, as it continues to add new capabilities to support larger workloads, like data
intensive AI training models and scalable enterprise networks. Beginning in the third

quarter, Equinix Fabric customers will be able to provision virtual connections to cloud

[providers with bandwidths of up to 50 gigabits per second, with Google Cloud as the first](https://www.equinix.com/newsroom/press-releases/2023/06/equinix-announces-faster-virtual-connections-to-the-cloud-partners-with-google-cloud-to-support-workloads-including-artificial-intelligence-and-machine-learning/?ls=Public%20Relations&lsd=22q3__--_/newsroom/press-releases/2023/06/equinix-announces-faster-virtual-connections-to-the-cloud-partners-with-google-cloud-to-support-workloads-including-artificial-intelligence-and-machine-learning/_pr-equinix_pr-newswire_press-release__us-en_AMER_23q2-earnings_awareness&utm_campaign=us-en__press-release_23q2-earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_)

[cloud provider to support this capability.](https://www.equinix.com/newsroom/press-releases/2023/06/equinix-announces-faster-virtual-connections-to-the-cloud-partners-with-google-cloud-to-support-workloads-including-artificial-intelligence-and-machine-learning/?ls=Public%20Relations&lsd=22q3__--_/newsroom/press-releases/2023/06/equinix-announces-faster-virtual-connections-to-the-cloud-partners-with-google-cloud-to-support-workloads-including-artificial-intelligence-and-machine-learning/_pr-equinix_pr-newswire_press-release__us-en_AMER_23q2-earnings_awareness&utm_campaign=us-en__press-release_23q2-earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_)

◦ In Q2, Equinix won three new native cloud on-ramps in Bogotá, Madrid and Toronto,

further strengthening its cloud ecosystem, which represents nearly 15% of total

interconnections on its platform.

◦ Internet Exchange saw strength in Q2 in Equinix’s EMEA and APAC markets with peak

traffic up 4% quarter over quarter and 25% year over year, to nearly 32 terabits per

second.

**Business Outlook**

For the third quarter of 2023, the Company expects revenues to range between $2.039 and $2.069 billion,

an increase of approximately 1 - 3% over the previous quarter, on both an as-reported and normalized and

constant currency basis. This guidance includes a $4 million negative foreign currency impact when

compared to the average FX rates in Q2 2023. Adjusted EBITDA is expected to range between $908 and

$938 million. This guidance includes a $3 million negative foreign currency impact when compared to the

average FX rates in Q2 2023 and $7 million of integration costs from acquisitions. Recurring capital

expenditures are expected to range between $58 and $68 million.

For the full year of 2023, total revenues are expected to range between $8.171 and $8.251 billion, a 12 
14% increase over the previous year, or a normalized and constant currency increase of 14 - 15%. This


-----

updated guidance maintains prior full year revenue guidance, offset by a $14 million negative foreign

currency impact when compared to the prior guidance rates. Adjusted EBITDA is expected to range

between $3.660 and $3.720 billion, an adjusted EBITDA margin of 45%. This updated guidance includes

an underlying raise of $20 million from better-than-expected operating performance and lower integration

costs, partially offset by a $5 million negative foreign currency impact when compared to prior guidance

rates. AFFO is expected to range between $2.963 and $3.023 billion, an increase of 9 - 11% over the

previous year, or a normalized and constant currency increase of 11 - 14%. This updated guidance

includes an underlying raise of $28 million from better-than-expected business performance and lower

integration costs, partially offset by a $2 million negative foreign currency impact when compared to

prior guidance rates. AFFO per share is expected to range between $31.51 and $32.15, an increase of 7 
9% over the previous year, or a normalized and constant currency increase of 9 - 11%. Total capital

expenditures are expected to range between $2.675 and $2.925 billion. Non-recurring capital

expenditures, including xScale-related capital expenditures, are expected to range between $2.467 and

$2.697 billion, and recurring capital expenditures are expected to range between $208 and $228 million.

xScale-related on-balance sheet capital expenditures are expected to range between $96 and $146 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$1.35 to

the U.S. Dollar, ¥144 to the U.S. Dollar, A$1.50 to the U.S. Dollar, HK$7.84 to the U.S. Dollar, R$4.79

to the U.S. Dollar and C$1.32 to the U.S. Dollar. The Q2 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%, 10%, 8%, 6%, 4%, 3%, 3% and 3%, 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.


-----

**Q2 2023 Results Conference Call and Replay Information**

Equinix will discuss its quarterly results for the period ended June 30, 2023, along with its future outlook,

in its quarterly conference call on Wednesday, August 2, 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=22q3__--_/investors/_pr-equinix_pr-newswire_press-release__us-en_AMER_23q2-earnings_awareness&utm_campaign=us-en__press-release_23q2-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, October 25, 2023, by

dialing 1-800-839-9317 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=22q3__--_/investors/_pr-equinix_pr-newswire_press-release__us-en_AMER_23q2-earnings_awareness&utm_campaign=us-en__press-release_23q2-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=22q3__--_/investors/_pr-equinix_pr-newswire_press-release__us-en_AMER_23q2-earnings_awareness&utm_campaign=us-en__press-release_23q2-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=22q3__--_/investors/_pr-equinix_pr-newswire_press-release__us-en_AMER_23q2-earnings_awareness&utm_campaign=us-en__press-release_23q2-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=22q3__--_/_pr-equinix_pr-newswire_press-release__us-en_AMER_23q2-earnings_awareness&utm_campaign=us-en__press-release_23q2-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

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** **Six Months Ended**


**June 30,**

**2023**


**March 31,**

**2023**


**June 30,**

**2022**


**June 30,**

**2023**


**June 30,**

**2022**



Recurring revenues $ 1,917,570 $ 1,890,080 $ 1,707,451 $ 3,807,650 $ 3,349,775

Non-recurring revenues 100,838 108,129 109,703 208,967 201,826

**Revenues** **2,018,408** **1,998,209 1,817,154 4,016,617 3,551,601**

Cost of revenues 1,060,800 1,006,091 930,257 2,066,891 1,846,132

**Gross profit** **957,608** **992,118** **886,897 1,949,726 1,705,469**

Operating expenses:

Sales and marketing 215,016 210,671 193,727 425,687 386,238

General and administrative 406,429 394,874 370,348 801,303 723,035

Transaction costs 5,718 1,600 5,063 7,318 9,303

Gain (loss) on sale of asset (1,941) 852 (94) (1,089) 1,724

**Total operating expenses** **625,222** **607,997** **569,044 1,233,219 1,120,300**

**Income from operations** **332,386** **384,121** **317,853** **716,507** **585,169**

Interest and other income (expense):

Interest income 23,503 19,388 4,508 42,891 6,614

Interest expense (99,973) (97,481) (90,826) (197,454) (170,791)

Other income (expense) (11,518) 7,503 (6,238) (4,015) (15,787)

Gain (loss) on debt extinguishment — 254 (420) 254 109

**Total interest and other, net** **(87,988)** **(70,336)** **(92,976)** **(158,324)** **(179,855)**

**Income before income taxes** **244,398** **313,785** **224,877** **558,183** **405,314**

Income tax expense (37,385) (55,055) (8,635) (92,440) (41,379)

**Net income** **207,013** **258,730** **216,242** **465,743** **363,935**

Net (income) loss attributable to non-controlling

interests 17 56 80 73 (160)

**Net income attributable to Equinix** **$** **207,030 $** **258,786 $** **216,322 $** **465,816 $** **363,775**

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

Basic net income per share $ 2.21 $ 2.78 $ 2.38 $ 5.00 $ 4.00

Diluted net income per share $ 2.21 $ 2.77 $ 2.37 $ 4.98 $ 3.99

Shares used in computing basic net income per share 93,535 92,971 91,036 93,253 90,904

Shares used in computing diluted net income per

share 93,857 93,340 91,262 93,599 91,213


-----

**EQUINIX, INC.**

**Condensed Consolidated Statements of Comprehensive Income**

**(in thousands)**

**(unaudited)**

**Three Months Ended** **Six Months Ended**


**June 30,**

**2023**


**March 31,**

**2023**


**June 30,**

**2022**


**June 30,**

**2023**


**June 30,**

**2022**



Net income $ 207,013 $ 258,730 $ 216,242 $ 465,743 $ 363,935

Other comprehensive income (loss), net of tax:

Foreign currency translation adjustment

(“CTA”) income (loss) 25,923 157,214 (740,428) 183,137 (862,962)

Net investment hedge CTA gain (loss) (24,186) (39,960) 353,953 (64,146) 445,311

Unrealized gain (loss) on cash flow

hedges (4,792) (12,881) 20,617 (17,673) 84,654

Net actuarial loss on defined benefit

plans (116) (115) (19) (231) (40)

Total other comprehensive

income (loss), net of tax (3,171) 104,258 (365,877) 101,087 (333,037)

**Comprehensive income (loss), net of tax** **203,842** **362,988** **(149,635)** **566,830** **30,898**

Net (income) loss attributable to non-

controlling interests 17 56 80 73 (160)

Other comprehensive (income) loss

attributable to non-controlling
interests (97) — 35 (97) 32

**Comprehensive income (loss)**

**attributable to Equinix** **$** **203,762 $** **363,044 $ (149,520) $** **566,806 $** **30,770**


-----

**EQUINIX, INC.**

**Condensed Consolidated Balance Sheets**

**(in thousands)**

**(unaudited)**

**June 30, 2023** **December 31, 2022**


**Assets**

Cash and cash equivalents $ 2,342,177 $ 1,906,421

Accounts receivable, net 1,006,116 855,380

Other current assets 395,723 459,138

Assets held for sale — 84,316

**Total current assets** **3,744,016** **3,305,255**

Property, plant and equipment, net 17,267,282 16,649,534

Operating lease right-of-use assets 1,529,064 1,427,950

Goodwill 5,732,010 5,654,217

Intangible assets, net 1,807,485 1,897,649

Other assets 1,487,088 1,376,137

**Total assets** **$** **31,566,945** **$** **30,310,742**

**Liabilities, Redeemable Non-Controlling Interest and Stockholders’ Equity**
Accounts payable and accrued expenses $ 1,023,031 $ 1,004,800

Accrued property, plant and equipment 316,090 281,347

Current portion of operating lease liabilities 139,661 139,538

Current portion of finance lease liabilities 151,554 151,420

Current portion of mortgage and loans payable 8,419 9,847

Other current liabilities 215,473 251,346

**Total current liabilities** **1,854,228** **1,838,298**

Operating lease liabilities, less current portion 1,403,269 1,272,812

Finance lease liabilities, less current portion 2,136,159 2,143,690

Mortgage and loans payable, less current portion 665,916 642,708

Senior notes, less current portion 12,672,826 12,109,539

Other liabilities 785,547 797,863

**Total liabilities** **19,517,945** **18,804,910**

Redeemable non-controlling interest 25,000 —

**Equinix stockholders’ equity:**
Common stock 94 93

Additional paid-in capital 17,909,043 17,320,017

Treasury stock (63,973) (71,966)

Accumulated dividends (7,963,253) (7,317,570)

Accumulated other comprehensive loss (1,288,456) (1,389,446)

Retained earnings 3,430,654 2,964,838

**Total Equinix stockholders’ equity** **12,024,109** **11,505,966**

Non-controlling interests (109) (134)

**Total stockholders’ equity** **12,024,000** **11,505,832**

**Total liabilities, redeemable non-controlling interest and**
**stockholders’ equity** **$** **31,566,945** **$** **30,310,742**

Ending headcount by geographic region is as follows:
Americas headcount 5,774 5,493

EMEA headcount 4,081 3,936

Asia-Pacific headcount 2,766 2,668

Total headcount 12,621 12,097


-----

**EQUINIX, INC.**

**Summary of Debt Principal Outstanding**

**(in thousands)**

**(unaudited)**

**June 30, 2023** **December 31, 2022**


Finance lease liabilities $ 2,287,713 $ 2,295,110

Term loans 642,275 618,028

Mortgage payable and other loans payable 32,060 34,527

Plus: debt discount and issuance costs, net 878 1,062

Total loans payable principal 675,213 653,617

Senior notes 12,672,826 12,109,539

Plus: debt discount and issuance costs 113,449 117,351

Total senior notes principal 12,786,275 12,226,890

Total debt principal outstanding $ 15,749,201 $ 15,175,617


-----

**EQUINIX, INC.**

**Condensed Consolidated Statements of Cash Flows**

**(in thousands)**

**(unaudited)**

**Three Months Ended** **Six Months Ended**


**June 30,**

**2023**


**March 31,**

**2023**


**June 30,**

**2022**


**June 30,**

**2023**


**June 30,**

**2022**


Cash flows from operating activities:


Net income $ 207,013 $ 258,730 $ 216,242 $ 465,743 $ 363,935

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

Depreciation, amortization and

accretion 459,746 454,939 432,828 914,685 869,214

Stock-based compensation 104,546 98,715 104,682 203,261 194,634

Amortization of debt issuance

costs and debt discounts 4,653 4,590 4,536 9,243 8,740

(Gain) loss on debt

extinguishment — (254) 420 (254) (109)

(Gain) loss on asset sales (1,941) 852 (94) (1,089) 1,724

Other items 20,465 9,001 5,832 29,466 11,882

Changes in operating assets and liabilities:

Accounts receivable (99,164) (53,392) (26,302) (152,556) (127,029)

Income taxes, net 2,954 4,991 (33,663) 7,945 (19,782)

Accounts payable and accrued

expenses 88,632 (72,765) 55,128 15,867 (20,852)

Operating lease right-of-use

assets 42,337 34,766 38,839 77,103 74,239

Operating lease liabilities (31,723) (33,587) (34,632) (65,310) (66,372)

Other assets and liabilities (56,220) (15,178) 37,765 (71,398) 92,480

**Net cash provided by operating**
**activities** **741,298** **691,408** **801,581 1,432,706 1,382,704**

Cash flows from investing activities:

Purchases, sales and maturities of

investments, net (30,290) (24,393) (26,391) (54,683) (64,949)

Business acquisitions, net of cash and

restricted cash acquired — — (883,668) — (883,668)

Real estate acquisitions — (40,397) (30,257) (40,397) (33,331)

Purchases of other property, plant

and equipment (638,159) (529,600) (484,830) (1,167,759) (897,348)

Proceeds from asset sales — 72,254 56,024 72,254 251,415

**Net cash used in investing activities** **(668,449)** **(522,136) (1,369,122) (1,190,585) (1,627,881)**

Cash flows from financing activities:

Proceeds from employee equity

programs — 44,543 — 44,543 43,876

Proceeds from redeemable non-

controlling interest 25,000 — — 25,000 —

Payment of dividend distributions (320,243) (326,162) (283,048) (646,405) (572,717)

Proceeds from public offering of

common stock, net of offering
costs — 300,775 — 300,775 —

Proceeds from mortgage and loans

payable — — — — 676,850


-----

**Three Months Ended** **Six Months Ended**


**June 30,**

**2023**


**March 31,**

**2023**


**June 30,**

**2022**


**June 30,**

**2023**


**June 30,**

**2022**



Proceeds from senior notes, net of

debt discounts — 565,239 1,193,688 565,239 1,193,688

Repayment of finance lease liabilities (30,964) (35,498) (28,783) (66,462) (69,556)

Repayment of mortgage and loans

payable (1,020) (2,403) (9,199) (3,423) (561,032)

Debt issuance costs — (4,257) (10,365) (4,257) (17,731)

**Net cash provided by (used in)**

**financing activities** **(327,227)** **542,237** **862,293** **215,010** **693,378**

Effect of foreign currency exchange rates

on cash, cash equivalents and restricted
cash (46,681) 23,883 (101,129) (22,798) (96,536)

Net increase (decrease) in cash, cash

equivalents, and restricted cash (301,059) 735,392 193,623 434,333 351,665

Cash, cash equivalents and restricted cash

at beginning of period 2,643,640 1,908,248 1,707,496 1,908,248 1,549,454

**Cash, cash equivalents and restricted**

**cash at end of period** **$ 2,342,581 $ 2,643,640 $ 1,901,119 $ 2,342,581 $ 1,901,119**

Supplemental cash flow information:

Cash paid for taxes $ 35,345 $ 48,960 $ 53,609 $ 84,305 $ 73,759

Cash paid for interest $ 134,176 $ 103,904 $ 106,249 $ 238,080 $ 210,300

**Free cash flow (negative free cash flow)**

**(1)** **$ 103,139 $ 193,665 $ (541,150) $ 296,804 $ (180,228)**

**Adjusted free cash flow (2)** **$ 103,139 $ 234,062 $ 372,775 $ 337,201 $ 736,771**

(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 $ 741,298 $ 691,408 $ 801,581 $ 1,432,706 $ 1,382,704

Net cash used in investing activities

as presented above (668,449) (522,136) (1,369,122) (1,190,585) (1,627,881)

Purchases, sales and maturities of

investments, net 30,290 24,393 26,391 54,683 64,949

Free cash flow (negative free

cash flow) $ 103,139 $ 193,665 $ (541,150) $ 296,804 $ (180,228)

(2) We define 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 $ 103,139 $ 193,665 $ (541,150) $ 296,804 $ (180,228)

Less business acquisitions, net of

cash and restricted cash acquired — — 883,668 — 883,668

Less real estate acquisitions — 40,397 30,257 40,397 33,331

Adjusted free cash flow $ 103,139 $ 234,062 $ 372,775 $ 337,201 $ 736,771


-----

**EQUINIX, INC.**

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

**(in thousands)**

**(unaudited)**

**Three Months Ended** **Six Months Ended**


**March 31,**

**2023** **June 30, 2022** **June 30, 2023** **June 30, 2022**


**June 30, 2023**


Recurring revenues $ 1,917,570 $ 1,890,080 $ 1,707,451 $ 3,807,650 $ 3,349,775

Non-recurring revenues 100,838 108,129 109,703 208,967 201,826

Revenues [(1)] 2,018,408 1,998,209 1,817,154 4,016,617 3,551,601

Cash cost of revenues [(2)] 720,796 665,978 599,368 1,386,774 1,183,071

**Cash gross profit [(3)]** **1,297,612** **1,332,231** **1,217,786** **2,629,843** **2,368,530**

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

Cash sales and marketing

expenses [(5)] 141,241 140,310 120,739 281,551 245,445

Cash general and

administrative expenses [(6)] 255,201 247,638 236,715 502,839 463,041

**Total cash operating**

**expenses [(4)(7)]** **396,442** **387,948** **357,454** **784,390** **708,486**

**Adjusted EBITDA [(8)]** **$** **901,170** **$** **944,283** **$** **860,332** **$ 1,845,453** **$ 1,660,044**

**Cash gross margins [(9)]** **64 %** **67 %** **67 %** **65 %** **67 %**

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

**Adjusted EBITDA flow-**

**through rate [(11)]** **(213) %** **83 %** **73 %** **45 %** **51 %**

**FFO [(12)]** **$** **495,240** **$** **548,152** **$** **498,349** **$ 1,043,392** **$** **930,993**

**AFFO [(13)(14)]** **$** **754,262** **$** **801,793** **$** **691,392** **$ 1,556,055** **$ 1,344,024**

**Basic FFO per share [(15)]** **$** **5.29** **$** **5.90** **$** **5.47** **$** **11.19** **$** **10.24**

**Diluted FFO per share [(15)]** **$** **5.28** **$** **5.87** **$** **5.46** **$** **11.15** **$** **10.21**

**Basic AFFO per share [(15)]** **$** **8.06** **$** **8.62** **$** **7.59** **$** **16.69** **$** **14.79**

**Diluted AFFO per share [(15)]** **$** **8.04** **$** **8.59** **$** **7.58** **$** **16.62** **$** **14.74**


-----

**Three Months Ended** **Six Months Ended**


**March 31,**

**2023** **June 30, 2022** **June 30, 2023** **June 30, 2022**


**June 30, 2023**


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

_Americas Revenues:_

Colocation $ 583,568 $ 574,098 $ 541,988 $ 1,157,666 $ 1,064,159

Interconnection 204,266 198,639 187,491 402,905 368,594

Managed infrastructure 60,539 60,860 55,329 121,399 104,551

Other 5,086 4,872 5,581 9,958 10,715

Recurring revenues 853,459 838,469 790,389 1,691,928 1,548,019

Non-recurring revenues 36,254 43,906 40,475 80,160 83,266

Revenues $ 889,713 $ 882,375 $ 830,864 $ 1,772,088 $ 1,631,285


_EMEA Revenues:_

Colocation $ 517,366 $ 515,611 $ 433,339 $ 1,032,977 $ 847,908

Interconnection 76,317 72,606 66,845 148,923 134,985

Managed infrastructure 32,891 31,424 30,447 64,315 61,437

Other 26,292 25,200 22,048 51,492 28,462

Recurring revenues 652,866 644,841 552,679 1,297,707 1,072,792

Non-recurring revenues 33,891 46,376 46,522 80,267 76,889

Revenues $ 686,757 $ 691,217 $ 599,201 $ 1,377,974 $ 1,149,681


_Asia-Pacific Revenues:_

Colocation $ 323,116 $ 318,705 $ 281,635 $ 641,821 $ 564,250

Interconnection 66,455 65,562 60,841 132,017 120,828

Managed infrastructure 18,195 18,963 19,916 37,158 40,558

Other 3,479 3,540 1,991 7,019 3,328

Recurring revenues 411,245 406,770 364,383 818,015 728,964

Non-recurring revenues 30,693 17,847 22,706 48,540 41,671

Revenues $ 441,938 $ 424,617 $ 387,089 $ 866,555 $ 770,635


_Worldwide Revenues:_


Colocation $ 1,424,050 $ 1,408,414 $ 1,256,962 $ 2,832,464 $ 2,476,317

Interconnection 347,038 336,807 315,177 683,845 624,407

Managed infrastructure 111,625 111,247 105,692 222,872 206,546

Other 34,857 33,612 29,620 68,469 42,505

Recurring revenues 1,917,570 1,890,080 1,707,451 3,807,650 3,349,775

Non-recurring revenues 100,838 108,129 109,703 208,967 201,826


-----

**Three Months Ended** **Six Months Ended**


**March 31,**

**2023** **June 30, 2022** **June 30, 2023** **June 30, 2022**


**June 30, 2023**


Revenues $ 2,018,408 $ 1,998,209 $ 1,817,154 $ 4,016,617 $ 3,551,601


(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 $ 1,060,800 $ 1,006,091 $ 930,257 $ 2,066,891 $ 1,846,132

Depreciation, amortization and

accretion expense (327,605) (328,790) (319,011) (656,395) (640,740)

Stock-based compensation

expense (12,399) (11,323) (11,878) (23,722) (22,321)

Cash cost of revenues $ 720,796 $ 665,978 $ 599,368 $ 1,386,774 $ 1,183,071


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

Americas cash cost of revenues $ 266,682 $ 245,407 $ 243,636 $ 512,089 $ 483,039

EMEA cash cost of revenues 297,684 271,179 215,983 568,863 418,831

Asia-Pacific cash cost of

revenues 156,430 149,392 139,749 305,822 281,201

Cash cost of revenues $ 720,796 $ 665,978 $ 599,368 $ 1,386,774 $ 1,183,071


(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 $ 621,445 $ 605,545 $ 564,075 $ 1,226,990 $ 1,109,273

Depreciation and amortization

expense (132,856) (130,205) (113,817) (263,061) (228,474)

Stock-based compensation

expense (92,147) (87,392) (92,804) (179,539) (172,313)

Cash operating expense $ 396,442 $ 387,948 $ 357,454 $ 784,390 $ 708,486


(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 $ 215,016 $ 210,671 $ 193,727 $ 425,687 $ 386,238

Depreciation and amortization

expense (51,221) (50,856) (49,817) (102,077) (97,438)

Stock-based compensation

expense (22,554) (19,505) (23,171) (42,059) (43,355)

Cash sales and marketing

expense $ 141,241 $ 140,310 $ 120,739 $ 281,551 $ 245,445


-----

**Three Months Ended** **Six Months Ended**


**March 31,**

**2023** **June 30, 2022** **June 30, 2023** **June 30, 2022**


**June 30, 2023**


(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 $ 406,429 $ 394,874 $ 370,348 $ 801,303 $ 723,035

Depreciation and amortization

expense (81,635) (79,349) (64,000) (160,984) (131,036)

Stock-based compensation

expense (69,593) (67,887) (69,633) (137,480) (128,958)

Cash general and

administrative expense $ 255,201 $ 247,638 $ 236,715 $ 502,839 $ 463,041


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

Americas cash SG&A $ 230,284 $ 231,881 $ 211,004 $ 462,165 $ 415,467

EMEA cash SG&A 94,258 93,525 87,836 187,783 175,123

Asia-Pacific cash SG&A 71,900 62,542 58,614 134,442 117,896

Cash SG&A $ 396,442 $ 387,948 $ 357,454 $ 784,390 $ 708,486


(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 $ 207,013 $ 258,730 $ 216,242 $ 465,743 $ 363,935

Income tax expense 37,385 55,055 8,635 92,440 41,379

Interest income (23,503) (19,388) (4,508) (42,891) (6,614)

Interest expense 99,973 97,481 90,826 197,454 170,791

Other expense (income) 11,518 (7,503) 6,238 4,015 15,787

(Gain) loss on debt
extinguishment — (254) 420 (254) (109)

Depreciation, amortization and

accretion expense 460,461 458,995 432,828 919,456 869,214

Stock-based compensation

expense 104,546 98,715 104,682 203,261 194,634

Transaction costs 5,718 1,600 5,063 7,318 9,303

(Gain) loss on asset sales (1,941) 852 (94) (1,089) 1,724

Adjusted EBITDA $ 901,170 $ 944,283 $ 860,332 $ 1,845,453 $ 1,660,044


The geographic split of our adjusted EBITDA is presented below:

Americas net income (loss) $ (42,264) $ (40,492) $ 38,199 $ (82,756) $ 18,627

Americas income tax expense 37,385 55,142 8,516 92,527 41,260

Americas interest income (18,631) (15,175) (3,904) (33,806) (5,632)


-----

**Three Months Ended** **Six Months Ended**


**March 31,**

**2023** **June 30, 2022** **June 30, 2023** **June 30, 2022**


**June 30, 2023**


Americas interest expense 83,892 84,280 82,160 168,172 152,890

Americas other expense

(income) 7,988 5,104 (55,803) 13,092 (79,193)

Americas loss on debt

extinguishment — — 420 — 159

Americas depreciation,

amortization and accretion
expense 251,594 245,107 230,099 496,701 460,185

Americas stock-based

compensation expense 69,464 67,814 73,677 137,278 137,594

Americas transaction costs 2,610 477 2,715 3,087 5,706

Americas gain on asset sales 710 2,830 145 3,540 1,183

Americas adjusted

EBITDA $ 392,748 $ 405,087 $ 376,224 $ 797,835 $ 732,779


EMEA net income $ 151,942 $ 199,015 $ 101,638 $ 350,957 $ 200,026

EMEA income tax expense — — 119 — 119

EMEA interest income (2,872) (2,540) (525) (5,412) (792)

EMEA interest expense 4,557 4,149 (112) 8,706 804

EMEA other expense (income) (2,862) (16,480) 57,169 (19,342) 86,340

EMEA depreciation,

amortization and accretion
expense 123,100 124,675 116,070 247,775 230,936

EMEA stock-based

compensation expense 21,510 18,836 19,168 40,346 35,280

EMEA transaction costs 2,090 836 2,094 2,926 3,251

EMEA loss on asset sales (2,651) (1,978) (239) (4,629) (237)

EMEA adjusted EBITDA $ 294,814 $ 326,513 $ 295,382 $ 621,327 $ 555,727


Asia-Pacific net income $ 97,335 $ 100,207 $ 76,405 $ 197,542 $ 145,282

Asia-Pacific income tax benefit — (87) — (87) —

Asia-Pacific interest income (2,000) (1,673) (79) (3,673) (190)

Asia-Pacific interest expense 11,524 9,052 8,778 20,576 17,097

Asia-Pacific other expense 6,392 3,873 4,872 10,265 8,640

Asia-Pacific gain on debt

extinguishment — (254) — (254) (268)

Asia-Pacific depreciation,

amortization and accretion
expense 85,767 89,213 86,659 174,980 178,093

Asia-Pacific stock-based

compensation expense 13,572 12,065 11,837 25,637 21,760

Asia-Pacific transaction costs 1,018 287 254 1,305 346

Asia-Pacific gain on asset sales — — — — 778

Asia-Pacific adjusted

EBITDA $ 213,608 $ 212,683 $ 188,726 $ 426,291 $ 371,538


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


-----

**Three Months Ended** **Six Months Ended**


**March 31,**

**2023** **June 30, 2022** **June 30, 2023** **June 30, 2022**


**June 30, 2023**


Our cash gross margins by geographic region are presented below:

Americas cash gross margins 70 % 72 % 71 % 71 % 70 %

EMEA cash gross margins 57 % 61 % 64 % 59 % 64 %

Asia-Pacific cash gross margins 65 % 65 % 64 % 65 % 64 %


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

Americas adjusted EBITDA

margins 44 % 46 % 45 % 45 % 45 %

EMEA adjusted EBITDA

margins 43 % 47 % 49 % 45 % 48 %

Asia-Pacific adjusted EBITDA

margins 48 % 50 % 49 % 49 % 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 $ 901,170 $ 944,283 $ 860,332 $ 1,845,453 $ 1,660,044

Less adjusted EBITDA - prior

period (944,283) (838,740) (799,712) (1,709,656) (1,573,875)

Adjusted EBITDA growth $ (43,113) $ 105,543 $ 60,620 $ 135,797 $ 86,169

Revenues - current period $ 2,018,408 $ 1,998,209 $ 1,817,154 $ 4,016,617 $ 3,551,601

Less revenues - prior period (1,998,209) (1,870,845) (1,734,447) (3,711,504) (3,381,554)

Revenue growth $ 20,199 $ 127,364 $ 82,707 $ 305,113 $ 170,047

Adjusted EBITDA flow
through rate (213) % 83 % 73 % 45 % 51 %

(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 $ 207,013 $ 258,730 $ 216,242 $ 465,743 $ 363,935

Net (income) loss attributable

to non-controlling interests 17 56 80 73 (160)

Net income attributable to

Equinix 207,030 258,786 216,322 465,816 363,775

Adjustments:

Real estate depreciation 283,673 283,681 278,046 567,354 558,242

Loss on disposition of real

estate property 1,175 2,561 1,850 3,736 4,695


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**Three Months Ended** **Six Months Ended**


**March 31,**

**2023** **June 30, 2022** **June 30, 2023** **June 30, 2022**


**June 30, 2023**


Adjustments for FFO from

unconsolidated joint
ventures 3,362 3,124 2,131 6,486 4,281

FFO attributable to

common shareholders $ 495,240 $ 548,152 $ 498,349 $ 1,043,392 $ 930,993


(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 $ 495,240 $ 548,152 $ 498,349 $ 1,043,392 $ 930,993

Adjustments:

Installation revenue

adjustment 6,121 (2,237) (34) 3,884 811

Straight-line rent expense

adjustment 10,614 1,179 4,207 11,793 7,867

Amortization of deferred

financing costs and debt
discounts and premiums 4,653 4,590 4,536 9,243 8,740

Contract cost adjustment (13,735) (6,682) (7,891) (20,417) (22,830)

Stock-based compensation

expense 104,546 98,715 104,682 203,261 194,634

Stock-based charitable

contributions 2,543 — 14,039 2,543 14,039

Non-real estate depreciation

expense 125,535 120,945 103,349 246,480 208,924

Amortization expense 52,428 52,474 51,875 104,902 101,444

Accretion expense (1,175) 1,895 (442) 720 604

Recurring capital

expenditures (39,672) (21,729) (34,775) (61,401) (58,656)

(Gain) loss on debt

extinguishment — (254) 420 (254) (109)

Transaction costs 5,718 1,600 5,063 7,318 9,303

Income tax expense (benefit)

adjustment 1,542 1,582 (49,683) 3,124 (50,006)

Adjustments for AFFO from

unconsolidated joint
ventures (96) 1,563 (2,303) 1,467 (1,734)

AFFO attributable to common

shareholders $ 754,262 $ 801,793 $ 691,392 $ 1,556,055 $ 1,344,024


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


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**Three Months Ended** **Six Months Ended**


**March 31,**

**2023** **June 30, 2022** **June 30, 2023** **June 30, 2022**


**June 30, 2023**


Adjusted EBITDA $ 901,170 $ 944,283 $ 860,332 $ 1,845,453 $ 1,660,044

Adjustments:

Interest expense, net of

interest income (76,470) (78,093) (86,318) (154,563) (164,177)

Amortization of deferred

financing costs and debt
discounts and premiums 4,653 4,590 4,536 9,243 8,740

Income tax expense (37,385) (55,055) (8,635) (92,440) (41,379)

Income tax expense (benefit)

adjustment 1,542 1,582 (49,683) 3,124 (50,006)

Straight-line rent expense

adjustment 10,614 1,179 4,207 11,793 7,867

Stock-based charitable

contributions 2,543 — 14,039 2,543 14,039

Contract cost adjustment (13,735) (6,682) (7,891) (20,417) (22,830)

Installation revenue

adjustment 6,121 (2,237) (34) 3,884 811

Recurring capital

expenditures (39,672) (21,729) (34,775) (61,401) (58,656)

Other income (expense) (11,518) 7,503 (6,238) (4,015) (15,787)

Loss on disposition of real

estate property 1,175 2,561 1,850 3,736 4,695

Adjustments for

unconsolidated JVs’ and
non-controlling interests 3,283 4,743 (92) 8,026 2,387

Adjustment for gain (loss) on

sale of assets 1,941 (852) 94 1,089 (1,724)

AFFO attributable to common

shareholders $ 754,262 $ 801,793 $ 691,392 $ 1,556,055 $ 1,344,024


(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 93,535 92,971 91,036 93,253 90,904

Effect of dilutive securities:

Employee equity awards 322 369 226 346 309

Shares used in computing

diluted net income per share,
FFO per share and AFFO per
share 93,857 93,340 91,262 93,599 91,213

Basic FFO per share $ 5.29 $ 5.90 $ 5.47 $ 11.19 $ 10.24

Diluted FFO per share $ 5.28 $ 5.87 $ 5.46 $ 11.15 $ 10.21


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**Three Months Ended** **Six Months Ended**


**March 31,**

**2023** **June 30, 2022** **June 30, 2023** **June 30, 2022**


**June 30, 2023**


Basic AFFO per share $ 8.06 $ 8.62 $ 7.59 $ 16.69 $ 14.79

Diluted AFFO per share $ 8.04 $ 8.59 $ 7.58 $ 16.62 $ 14.74


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