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

invest@equinix.com press@equinix.com

**_FOR IMMEDIATE RELEASE_**

**EQUINIX REPORTS THIRD-QUARTER 2023 RESULTS**

**_Company Delivers Quarterly Revenues Greater than $2 Billion as Enterprises and Service Providers_**

**_Look to Integrate AI into their Strategies and Offerings_**

-  Quarterly revenues increased 12% over the same quarter last year to $2.1 billion, or 14% on a

normalized and constant currency basis

-  Closed 4,200 deals in Q3 across more than 3,100 customers, including record new logos from

high-propensity, targeted customers

-  Channel bookings accounted for over 65% of new logos with wins focused on digital

transformation initiatives

-  Increased quarterly cash dividend by 25% to $4.26 per share on its common stock due to

continued strong operating performance

**REDWOOD CITY, Calif. - October 25, 2023** **-** **[Equinix, Inc. (Nasdaq: EQIX), the world’s digital](https://www.equinix.com/?ls=Public%20Relations&lsd=23q4__--_/_pr-equinix_pr-newswire_press-release__us-en_AMER_23q3-earnings_awareness&utm_campaign=us-en__press-release_23q3-earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_)**

infrastructure company[®], today reported results for the quarter ended September 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.


-----

**Third-Quarter 2023 Results Summary**

-  **Revenues**

◦ $2.06 billion, a 12% increase over the same quarter last year

◦ Includes a $1 million negative foreign currency impact when compared to prior guidance
rates

**•** **Operating Income**

◦ $380 million, a 14% increase over the same quarter last year, due to strong operating
performance and an operating margin of 18%

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

◦ $276 million, a 30% increase over the same quarter last year, primarily due to higher income
from operations and a favorable tax settlement

◦ $2.93 per share, a 27% increase from the same quarter last year

-  **Adjusted EBITDA**

◦ $936 million, a 7% increase over the same quarter last year, and an adjusted EBITDA margin
of 45%

◦ Includes a $1 million negative foreign currency impact when compared to prior guidance
rates and $2 million of integration costs

-  **AFFO and AFFO per Share**

◦ $772 million, an 8% increase over the same quarter last year

◦ $8.19 per share, a 6% increase over the same quarter last year

**2023 Annual Guidance Summary**

**•** **Revenues**

◦ $8.166 - $8.206 billion, an increase of 12 - 13% over the previous year, or a normalized and
constant currency increase of 14 - 15%

◦ Includes a $25 million negative foreign currency impact compared to prior guidance rates

-  **Adjusted EBITDA**

◦ $3.680 - $3.710 billion, a 45% adjusted EBITDA margin

◦ An increase of $17 million compared to prior guidance offset by a $12 million negative
foreign currency impact

◦ Includes $15 million of integration costs

-  **AFFO and AFFO per Share**

◦ $2.996 - $3.026 billion, an increase of 10 - 12% over the previous year, or a normalized and
constant currency increase of 12 - 14%

◦ An increase of $27 million compared to prior guidance offset by a $9 million negative foreign
currency impact

◦ $31.87 - $32.19 per share, an increase of 8 - 9% over the previous year, or a normalized and
constant currency increase of 10 - 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 delivered another solid quarter of results and continue to drive strong value creation on a per share_

_basis, raising both our dividend and AFFO/share outlook for the full year. A recent Gartner poll found_

_55% of organizations are in pilot or production mode with generative AI.[1] We’re seeing this manifest in_

_accelerated interest from both enterprise customers and emerging service providers looking to service_

_this demand. We expect Equinix’s broad portfolio of offerings, in tandem with our key technology_

_partners, will allow us to capture high-value opportunities across the AI value chain, positioning_

_Platform Equinix to be the place where private AI happens and allowing customers to place compute_

_resources in proximity to data and seamlessly leverage public cloud capabilities while maintaining_

_control of high-value proprietary data.”_

**Business Highlights**

-  Given strong demand signals and the long duration in delivering new capacity, Equinix continues

to expand its global footprint. The company currently has 56 major projects underway across 39

markets in 23 countries, including 14 xScale[®] builds that are expected to deliver more than 100

megawatts of capacity once opened.

◦ In Q3, Equinix added nine new projects, including new builds in Madrid, Osaka, São

Paulo and Silicon Valley.

◦ More than 50% of expansion capital investment is supporting major metros as the

company builds in highly differentiated and scaled markets.

◦ To support India’s growing digital economy, which is expected to reach $1 trillion by

2026[2], Equinix announced an investment of $42 million for its [fourth International](https://www.equinix.com/newsroom/press-releases/2023/08/equinix-expands-footprint-in-mumbai-to-address-rising-demand-for-digital-infrastructure?ls=Public%2520Relations&lsd=23q4__--_/newsroom/press-releases/2023/08/equinix-expands-footprint-in-mumbai-to-address-rising-demand-for-digital-infrastructure/_pr-equinix_pr-newswire_press-release__us-en_AMER_23q3-earnings_awareness&utm_campaign=us-en__press-release_23q3-earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_%2520)

[Business Exchange™ (IBX[®]) data center in Mumbai, called MB4. Expected to open](https://www.equinix.com/newsroom/press-releases/2023/08/equinix-expands-footprint-in-mumbai-to-address-rising-demand-for-digital-infrastructure?ls=Public%2520Relations&lsd=23q4__--_/newsroom/press-releases/2023/08/equinix-expands-footprint-in-mumbai-to-address-rising-demand-for-digital-infrastructure/_pr-equinix_pr-newswire_press-release__us-en_AMER_23q3-earnings_awareness&utm_campaign=us-en__press-release_23q3-earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_%2520)

before the end of the year, the new facility will allow local and overseas businesses to

expand their digital capability as a foundation to accelerate digital transformation in

India.

__________________________________________

[1 Gartner, Press Release, “Gartner Poll Finds 55% of Organizations are in Piloting or Production Mode with Generative AI,” October 3, 2023.](https://www.gartner.com/en/newsroom/press-releases/2023-10-03-gartner-poll-finds-55-percent-of-organizations-are-in-piloting-or-production-mode-with-generative-ai)
[2 The Times of India, “We plan to make India $1 trillion digital economy by 2026: Minister Rajeev Chandrasekhar,” March 10, 2023.](https://timesofindia.indiatimes.com/city/bengaluru/we-plan-to-make-india-1-trillion-digital-economy-by-2026-minister-rajeev-chandrasekhar/articleshow/98529810.cms?from=mdr)

GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with
permission. All rights reserved. The Gartner content described herein, (the "Gartner Content") represent(s) research opinion or viewpoints
published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and are not representations of fact. Gartner Content speaks as
of its original publication date (and not as of the date of this press release) and the opinions expressed in the Gartner Content are subject to
change without notice.


-----

◦ As AI demand accelerates, Equinix is innovating to build the data center of the future,

using its Co-Innovation facility in Ashburn, Virginia, to evaluate technologies to support

escalating power requirements including supporting high-power-density AI deployments

with liquid cooling technologies—such as direct-to-chip, immersion and rear door heat

exchangers. The company can support liquid-cooled deployments across all markets,

including support for direct-to-chip liquid cooling in 45 markets across all three regions,

with live liquid-cooled deployments across a range of deployment sizes and densities.

Equinix continues to invest behind its platform strategy with revenue growth from its digital

services portfolio over-indexing the broader business, including strong adoption of Equinix’s

Network Edge offering by enterprise customers.

◦ Equinix’s global interconnection franchise continues to perform with over 460,000 total

interconnections. Equinix Fabric[®] saw continued momentum with record port orders, and

Equinix Internet Exchange[®] had another strong quarter with peak traffic reaching nearly

35 terabits per second.

◦ Earlier this month, Equinix and NetApp announced an expanded collaboration with the

release of [NetApp Storage on Equinix Metal which is an integrated, full stack solution](https://investors.netapp.com/news-releases/news-release-details/netapp-and-equinix-deliver-industrys-most-comprehensive-bare)

that provides enterprise customers low-latency access to all clouds while keeping control

of their data.

◦ With nearly 40% market share of cloud on-ramps in markets where it operates, Equinix is

well-positioned with key players in the AI ecosystem, and in August, Equinix was

recognized as a [2023 Google Cloud Customer Awards winner for the company’s work](https://blog.equinix.com/blog/2023/09/21/equinix-drives-strategic-value-with-ai-ml-solutions-from-google-cloud/?ls=Public%20Relations&lsd=23q4__--_/blog/2023/09/21/equinix-drives-strategic-value-with-ai-ml-solutions-from-google-cloud/_pr-equinix_pr-newswire_press-release__us-en_AMER_23q3-earnings_awareness&utm_campaign=us-en__press-release_23q3-earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_ )

supporting Google AI technology.

[In September, Equinix expanded its relationship with Southern Cross Cables Limited to provide a](https://www.equinix.com/newsroom/press-releases/2023/09/equinix-serves-as-gateway-for-southern-cross-next-subsea-cable-system-linking-australia-and-new-zealand-with-the-u-s-/?ls=Public%20Relations&lsd=23q4__--_/newsroom/press-releases/2023/09/equinix-serves-as-gateway-for-southern-cross-next-subsea-cable-system-linking-australia-and-new-zealand-with-the-u-s-/_pr-equinix_pr-newswire_press-release__us-en_AMER_23q3-earnings_awareness&utm_campaign=us-en__press-release_23q3-earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_ )

key U.S.-based interconnectivity access point for the Southern Cross NEXT (“SX NEXT”)

submarine cable system. SX NEXT is leveraging Equinix’s next-generation cable landing station

architecture in its LA4 Los Angeles IBX data center to boost aggregate capacity on Southern

Cross’ Trans-Pacific networks by 500%.

[Earlier this month, Equinix announced that the Warsaw Stock Exchange is migrating its primary](https://www.equinix.pl/newsroom/press-releases/2023/10/warsaw-stock-exchange-selects-equinix-as-data-centre-for-its-new-trading-system-wats/?ls=Public%20Relations&lsd=23q4__--_/newsroom/press-releases/2023/10/warsaw-stock-exchange-selects-equinix-as-data-centre-for-its-new-trading-system-wats/_pr-equinix_pr-newswire_press-release__us-en_AMER_23q3-earnings_awareness&utm_campaign=us-en__press-release_23q3-earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_)

matching engine and trading system to Equinix to offer more capabilities and enhanced trading

performance.


-----

-  Adam Berlew was appointed Chief Marketing Officer in September. With more than 25 years’

experience in strategic marketing and global leadership roles, Berlew returns to Equinix after

previously serving as Vice President of Global Marketing from 2012 to 2015. He joins Equinix’s

Customer and Revenue leadership team and will be accountable for driving customer acquisition

and revenue growth through effective marketing strategies that align with the company’s vision

for Platform Equinix[®].

**Business Outlook**

For the fourth quarter of 2023, the Company expects revenues to range between $2.088 and $2.128

billion, an increase of approximately 1 - 3% over the previous quarter, or a normalized and constant

currency increase of 3 - 4%. This guidance includes a $26 million negative foreign currency impact when

compared to the average FX rates in Q3 2023. Adjusted EBITDA is expected to range between $899 and

$929 million. This guidance includes specific one-time costs attributed to corporate real estate activities,

a $13 million negative foreign currency impact when compared to the average FX rates in Q3 2023 and

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

between $100 and $120 million.

For the full year of 2023, total revenues are expected to range between $8.166 and $8.206 billion, a 12 
13% 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 $25 million negative foreign

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

between $3.680 and $3.710 billion, an adjusted EBITDA margin of 45%. This updated guidance includes

an underlying raise of $17 million from better-than-expected operating performance and lower integration

costs, offset by a $12 million negative foreign currency impact when compared to prior guidance rates.

AFFO is expected to range between $2.996 and $3.026 billion, an increase of 10 - 12% over the previous

year, or a normalized and constant currency increase of 12 - 14%. This updated guidance includes an

underlying raise of $27 million from better-than-expected business performance and lower integration

costs, partially offset by a $9 million negative foreign currency impact when compared to prior guidance

rates. AFFO per share is expected to range between $31.87 and $32.19, an increase of 8 - 9% over the

previous year, or a normalized and constant currency increase of 10 - 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 $2.462 and $2.692 billion, and

recurring capital expenditures are expected to range between $213 and $233 million. xScale-related on
balance sheet capital expenditures are expected to range between $191 and $241 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$1.37 to

the U.S. Dollar, ¥149 to the U.S. Dollar, A$1.56 to the U.S. Dollar, HK$7.83 to the U.S. Dollar, R$5.03

to the U.S. Dollar and C$1.36 to the U.S. Dollar. The Q3 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%, 11%, 8%, 5%, 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.

**Q3 2023 Results Conference Call and Replay Information**

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

outlook, in its quarterly conference call on Wednesday, October 25, 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=23q4__--_/investors/_pr-equinix_pr-newswire_press-release__us-en_AMER_23q3-earnings_awareness&utm_campaign=us-en__press-release_23q3-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, February 14, 2024, by

dialing 1-888-566-0097 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=23q4__--_/investors/_pr-equinix_pr-newswire_press-release__us-en_AMER_23q3-earnings_awareness&utm_campaign=us-en__press-release_23q3-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=23q4__--_/investors/_pr-equinix_pr-newswire_press-release__us-en_AMER_23q3-earnings_awareness&utm_campaign=us-en__press-release_23q3-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=23q4__--_/investors/_pr-equinix_pr-newswire_press-release__us-en_AMER_23q3-earnings_awareness&utm_campaign=us-en__press-release_23q3-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=23q4__--_/_pr-equinix_pr-newswire_press-release__us-en_AMER_23q3-earnings_awareness&utm_campaign=us-en__press-release_23q3-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** **Nine Months Ended**


**September**

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


**September**

**30, 2022**


**September**

**30, 2023**


**September**

**30, 2022**



Recurring revenues $ 1,961,043 $ 1,917,570 $ 1,748,132 $ 5,768,693 $ 5,097,907

Non-recurring revenues 99,987 100,838 92,527 308,954 294,353

**Revenues** **2,061,030** **2,018,408 1,840,659 6,077,647 5,392,260**

Cost of revenues 1,068,991 1,060,800 934,669 3,135,882 2,780,801

**Gross profit** **992,039** **957,608** **905,990 2,941,765 2,611,459**

Operating expenses:

Sales and marketing 212,506 215,016 193,089 638,193 579,327

General and administrative 403,890 406,429 375,483 1,205,193 1,098,518

Transaction costs (775) 5,718 2,007 6,543 11,310

(Gain) loss on asset sales (3,933) (1,941) 2,252 (5,022) 3,976

**Total operating expenses** **611,688** **625,222** **572,831 1,844,907 1,693,131**

**Income from operations** **380,351** **332,386** **333,159 1,096,858** **918,328**

Interest and other expense:

Interest income 23,111 23,503 11,192 66,002 17,806

Interest expense (101,385) (99,973) (91,346) (298,839) (262,137)

Other expense (5,972) (11,518) (6,735) (9,987) (22,522)

Gain (loss) on debt extinguishment (360) — 75 (106) 184

**Total interest and other, net** **(84,606)** **(87,988)** **(86,814)** **(242,930)** **(266,669)**

**Income before income taxes** **295,745** **244,398** **246,345** **853,928** **651,659**

Income tax expense (19,985) (37,385) (34,606) (112,425) (75,985)

**Net income** **275,760** **207,013** **211,739** **741,503** **575,674**

Net (income) loss attributable to non-controlling

interests 34 17 68 107 (92)

**Net income attributable to Equinix** **$** **275,794 $** **207,030 $** **211,807 $** **741,610 $** **575,582**

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

Basic net income per share $ 2.94 $ 2.21 $ 2.30 $ 7.94 $ 6.31

Diluted net income per share $ 2.93 $ 2.21 $ 2.30 $ 7.91 $ 6.29

Shares used in computing basic net income per share 93,683 93,535 91,896 93,396 91,234

Shares used in computing diluted net income per

share 94,168 93,857 92,135 93,788 91,519


-----

**EQUINIX, INC.**

**Condensed Consolidated Statements of Comprehensive Income**

**(in thousands)**

**(unaudited)**

**Three Months Ended** **Nine Months Ended**


**September**

**30, 2023**


**June 30,**

**2023**


**September**

**30, 2022**


**September**

**30, 2023**


**September**

**30, 2022**



Net income $ 275,760 $ 207,013 $ 211,739 $ 741,503 $ 575,674

Other comprehensive loss, net of tax:

Foreign currency translation adjustment

(“CTA”) income (loss) (412,910) 25,923 (703,640) (229,773) (1,566,602)

Net investment hedge CTA gain (loss) 149,608 (24,186) 360,350 85,462 805,661

Unrealized gain (loss) on cash flow

hedges 25,685 (4,792) 6,120 8,012 90,774

Net actuarial loss on defined benefit

plans (119) (116) (19) (350) (59)

Total other comprehensive loss,

net of tax (237,736) (3,171) (337,189) (136,649) (670,226)

**Comprehensive income (loss), net of tax** **38,024** **203,842** **(125,450)** **604,854** **(94,552)**

Net (income) loss attributable to non-

controlling interests 34 17 68 107 (92)

Other comprehensive (income) loss

attributable to non-controlling
interests 182 (97) 28 85 60

**Comprehensive income (loss)**

**attributable to Equinix** **$** **38,240 $** **203,762 $ (125,354) $** **605,046 $** **(94,584)**


-----

**EQUINIX, INC.**

**Condensed Consolidated Balance Sheets**

**(in thousands)**

**(unaudited)**

**September 30, 2023** **December 31, 2022**


**Assets**

Cash and cash equivalents $ 2,357,497 $ 1,906,421

Accounts receivable, net 1,030,694 855,380

Other current assets 497,189 459,138

Assets held for sale — 84,316

**Total current assets** **3,885,380** **3,305,255**

Property, plant and equipment, net 17,370,577 16,649,534

Operating lease right-of-use assets 1,516,011 1,427,950

Goodwill 5,589,124 5,654,217

Intangible assets, net 1,730,538 1,897,649

Other assets 1,592,972 1,376,137

**Total assets** **$** **31,684,602** **$** **30,310,742**

**Liabilities, Redeemable Non-Controlling Interest and Stockholders’ Equity**
Accounts payable and accrued expenses $ 1,058,235 $ 1,004,800

Accrued property, plant and equipment 363,549 281,347

Current portion of operating lease liabilities 135,636 139,538

Current portion of finance lease liabilities 133,360 151,420

Current portion of mortgage and loans payable 8,211 9,847

Other current liabilities 194,700 251,346

**Total current liabilities** **1,893,691** **1,838,298**

Operating lease liabilities, less current portion 1,399,852 1,272,812

Finance lease liabilities, less current portion 2,121,382 2,143,690

Mortgage and loans payable, less current portion 637,625 642,708

Senior notes, less current portion 12,945,222 12,109,539

Other liabilities 775,271 797,863

**Total liabilities** **19,773,043** **18,804,910**

Redeemable non-controlling interest 25,000 —

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

Additional paid-in capital 18,051,150 17,320,017

Treasury stock (57,199) (71,966)

Accumulated dividends (8,287,599) (7,317,570)

Accumulated other comprehensive loss (1,526,010) (1,389,446)

Retained earnings 3,706,448 2,964,838

**Total Equinix stockholders’ equity** **11,886,884** **11,505,966**

Non-controlling interests (325) (134)

**Total stockholders’ equity** **11,886,559** **11,505,832**

**Total liabilities, redeemable non-controlling interest and**
**stockholders’ equity** **$** **31,684,602** **$** **30,310,742**

Ending headcount by geographic region is as follows:
Americas headcount 5,949 5,493

EMEA headcount 4,215 3,936

Asia-Pacific headcount 2,882 2,668

Total headcount 13,046 12,097


-----

**EQUINIX, INC.**

**Summary of Debt Principal Outstanding**

**(in thousands)**

**(unaudited)**

**September 30, 2023** **December 31, 2022**


Finance lease liabilities $ 2,254,742 $ 2,295,110

Term loans 616,056 618,028

Mortgage payable and other loans payable 29,780 34,527

Plus: debt discount and issuance costs, net 777 1,062

Total loans payable principal 646,613 653,617

Senior notes 12,945,222 12,109,539

Plus: debt discount and issuance costs 111,573 117,351

Total senior notes principal 13,056,795 12,226,890

Total debt principal outstanding $ 15,958,150 $ 15,175,617


-----

**EQUINIX, INC.**

**Condensed Consolidated Statements of Cash Flows**

**(in thousands)**

**(unaudited)**

**Three Months Ended** **Nine Months Ended**


**September**

**30, 2023**


**June 30,**

**2023**


**September**

**30, 2022**


**September**

**30, 2023**


**September**

**30, 2022**


Cash flows from operating activities:


Net income $ 275,760 $ 207,013 $ 211,739 $ 741,503 $ 575,674

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

Depreciation, amortization and

accretion 466,613 459,746 431,668 1,381,298 1,300,882

Stock-based compensation 98,446 104,546 101,830 301,707 296,464

Amortization of debt issuance

costs and debt discounts 4,684 4,653 4,533 13,927 13,273

(Gain) loss on debt

extinguishment 360 — (75) 106 (184)

(Gain) loss on asset sales (3,933) (1,941) 2,252 (5,022) 3,976

Other items 12,776 20,465 10,536 42,242 22,418

Changes in operating assets and liabilities:

Accounts receivable (47,147) (99,164) 29,823 (199,703) (97,206)

Income taxes, net (14,530) 2,954 29,656 (6,585) 9,874

Accounts payable and accrued

expenses 69,082 88,632 103,941 84,949 83,089

Operating lease right-of-use

assets 39,977 42,337 38,684 117,080 112,923

Operating lease liabilities (33,654) (31,723) (31,873) (98,964) (98,245)

Other assets and liabilities (83,259) (56,220) (112,425) (154,657) (19,945)

**Net cash provided by operating**
**activities** **785,175** **741,298** **820,289 2,217,881 2,202,993**

Cash flows from investing activities:

Purchases, sales and maturities of

investments, net (26,664) (30,290) (22,398) (81,347) (87,347)

Business acquisitions, net of cash and

restricted cash acquired — — (80,342) — (964,010)

Real estate acquisitions (112,896) — (6,568) (153,293) (39,899)

Purchases of other property, plant

and equipment (617,539) (638,159) (552,729) (1,785,298) (1,450,077)

Proceeds from asset sales 4,682 — (1,509) 76,936 249,906

**Net cash used in investing activities** **(752,417)** **(668,449)** **(663,546) (1,943,002) (2,291,427)**

Cash flows from financing activities:

Proceeds from employee equity

programs 42,420 — 37,667 86,963 81,543

Proceeds from redeemable non-

controlling interest — 25,000 — 25,000 —

Payment of dividend distributions (324,587) (320,243) (291,169) (970,992) (863,886)

Proceeds from public offering of

common stock, net of offering
costs — — 796,018 300,775 796,018

Proceeds from mortgage and loans

payable — — — — 676,850


-----

**Three Months Ended** **Nine Months Ended**


**September**

**30, 2023**


**June 30,**

**2023**


**September**

**30, 2022**


**September**

**30, 2023**


**September**

**30, 2022**



Proceeds from senior notes, net of

debt discounts 336,853 — — 902,092 1,193,688

Repayment of finance lease liabilities (31,629) (30,964) (28,252) (98,091) (97,808)

Repayment of mortgage and loans

payable (2,133) (1,020) (25,195) (5,556) (586,227)

Debt issuance costs (2,982) — — (7,239) (17,731)

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

**financing activities** **17,942** **(327,227)** **489,069** **232,952 1,182,447**

Effect of foreign currency exchange rates

on cash, cash equivalents and restricted
cash (35,027) (46,681) (39,063) (57,825) (135,599)

Net increase (decrease) in cash, cash

equivalents, and restricted cash 15,673 (301,059) 606,749 450,006 958,414

Cash, cash equivalents and restricted cash

at beginning of period 2,342,581 2,643,640 1,901,119 1,908,248 1,549,454

**Cash, cash equivalents and restricted**

**cash at end of period** **$ 2,358,254 $ 2,342,581 $ 2,507,868 $ 2,358,254 $ 2,507,868**

Supplemental cash flow information:

Cash paid for taxes $ 42,021 $ 35,345 $ 22,462 $ 126,326 $ 96,221

Cash paid for interest $ 97,152 $ 134,176 $ 91,406 $ 335,232 $ 301,706

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

**(1)** **$** **59,422 $ 103,139 $ 179,141 $ 356,226 $** **(1,087)**

**Adjusted free cash flow (2)** **$ 172,318 $ 103,139 $ 266,051 $ 509,519 $ 1,002,822**

(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 $ 785,175 $ 741,298 $ 820,289 $ 2,217,881 $ 2,202,993

Net cash used in investing activities

as presented above (752,417) (668,449) (663,546) (1,943,002) (2,291,427)

Purchases, sales and maturities of

investments, net 26,664 30,290 22,398 81,347 87,347

Free cash flow (negative free

cash flow) $ 59,422 $ 103,139 $ 179,141 $ 356,226 $ (1,087)

(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 $ 59,422 $ 103,139 $ 179,141 $ 356,226 $ (1,087)

Less business acquisitions, net of

cash and restricted cash acquired — — 80,342 — 964,010

Less real estate acquisitions 112,896 — 6,568 153,293 39,899

Adjusted free cash flow $ 172,318 $ 103,139 $ 266,051 $ 509,519 $ 1,002,822


-----

**EQUINIX, INC.**

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

**(in thousands)**

**(unaudited)**

**Three Months Ended** **Nine Months Ended**


**September** **September**

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


**September**

**30, 2023**


**September**

**30, 2022**


Recurring revenues $ 1,961,043 $ 1,917,570 $ 1,748,132 $ 5,768,693 $ 5,097,907

Non-recurring revenues 99,987 100,838 92,527 308,954 294,353

Revenues [(1)] 2,061,030 2,018,408 1,840,659 6,077,647 5,392,260

Cash cost of revenues [(2)] 725,750 720,796 610,827 2,112,524 1,793,898

**Cash gross profit [(3)]** **1,335,280** **1,297,612** **1,229,832** **3,965,123** **3,598,362**

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

Cash sales and marketing

expenses [(5)] 138,879 141,241 120,467 420,430 365,912

Cash general and

administrative expenses [(6)] 260,470 255,201 238,449 763,309 701,490

**Total cash operating**

**expenses [(4)(7)]** **399,349** **396,442** **358,916** **1,183,739** **1,067,402**

**Adjusted EBITDA [(8)]** **$** **935,931** **$** **901,170** **$** **870,916** **$ 2,781,384** **$ 2,530,960**

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

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

**Adjusted EBITDA flow-**

**through rate [(11)]** **82 %** **(213) %** **45 %** **39 %** **45 %**

**FFO [(12)]** **$** **562,080** **$** **495,240** **$** **488,396** **$ 1,605,472** **$ 1,419,389**

**AFFO [(13)(14)]** **$** **771,617** **$** **754,262** **$** **712,036** **$ 2,327,672** **$ 2,056,060**

**Basic FFO per share [(15)]** **$** **6.00** **$** **5.29** **$** **5.31** **$** **17.19** **$** **15.56**

**Diluted FFO per share [(15)]** **$** **5.97** **$** **5.28** **$** **5.30** **$** **17.12** **$** **15.51**

**Basic AFFO per share [(15)]** **$** **8.24** **$** **8.06** **$** **7.75** **$** **24.92** **$** **22.54**

**Diluted AFFO per share [(15)]** **$** **8.19** **$** **8.04** **$** **7.73** **$** **24.82** **$** **22.47**


-----

**Three Months Ended** **Nine Months Ended**


**September** **September**

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

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

_Americas Revenues:_

Colocation $ 596,871 $ 583,568 $ 555,352 $ 1,754,537 $ 1,619,511

Interconnection 206,552 204,266 190,283 609,457 558,877

Managed infrastructure 63,356 60,539 54,704 184,755 159,255

Other 5,503 5,086 5,127 15,461 15,842

Recurring revenues 872,282 853,459 805,466 2,564,210 2,353,485

Non-recurring revenues 41,411 36,254 40,695 121,571 123,961

Revenues $ 913,693 $ 889,713 $ 846,161 $ 2,685,781 $ 2,477,446


_EMEA Revenues:_

Colocation $ 538,256 $ 517,366 $ 445,733 $ 1,571,233 $ 1,293,641

Interconnection 78,795 76,317 66,703 227,718 201,688

Managed infrastructure 32,790 32,891 28,493 97,105 89,930

Other 23,283 26,292 23,105 74,775 51,567

Recurring revenues 673,124 652,866 564,034 1,970,831 1,636,826

Non-recurring revenues 35,590 33,891 27,778 115,857 104,667

Revenues $ 708,714 $ 686,757 $ 591,812 $ 2,086,688 $ 1,741,493


_Asia-Pacific Revenues:_

Colocation $ 329,054 $ 323,116 $ 295,008 $ 970,875 $ 859,258

Interconnection 67,411 66,455 61,264 199,428 182,092

Managed infrastructure 17,484 18,195 19,269 54,642 59,827

Other 1,688 3,479 3,091 8,707 6,419

Recurring revenues 415,637 411,245 378,632 1,233,652 1,107,596

Non-recurring revenues 22,986 30,693 24,054 71,526 65,725

Revenues $ 438,623 $ 441,938 $ 402,686 $ 1,305,178 $ 1,173,321


_Worldwide Revenues:_


**September**

**30, 2023**


**September**

**30, 2022**


Colocation $ 1,464,181 $ 1,424,050 $ 1,296,093 $ 4,296,645 $ 3,772,410

Interconnection 352,758 347,038 318,250 1,036,603 942,657

Managed infrastructure 113,630 111,625 102,466 336,502 309,012

Other 30,474 34,857 31,323 98,943 73,828

Recurring revenues 1,961,043 1,917,570 1,748,132 5,768,693 5,097,907

Non-recurring revenues 99,987 100,838 92,527 308,954 294,353


-----

**Three Months Ended** **Nine Months Ended**


**September** **September**

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


**September**

**30, 2023**


**September**

**30, 2022**


Revenues $ 2,061,030 $ 2,018,408 $ 1,840,659 $ 6,077,647 $ 5,392,260


(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 $ 1,068,991 $ 1,060,800 $ 934,669 $ 3,135,882 $ 2,780,801

Depreciation, amortization and

accretion expense (330,852) (327,605) (313,110) (987,247) (953,850)

Stock-based compensation

expense (12,389) (12,399) (10,732) (36,111) (33,053)

Cash cost of revenues $ 725,750 $ 720,796 $ 610,827 $ 2,112,524 $ 1,793,898


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

Americas cash cost of revenues $ 270,272 $ 266,682 $ 247,976 $ 782,361 $ 731,015

EMEA cash cost of revenues 304,345 297,684 220,887 873,208 639,718

Asia-Pacific cash cost of

revenues 151,133 156,430 141,964 456,955 423,165

Cash cost of revenues $ 725,750 $ 720,796 $ 610,827 $ 2,112,524 $ 1,793,898


(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 $ 616,396 $ 621,445 $ 568,572 $ 1,843,386 $ 1,677,845

Depreciation and amortization

expense (130,990) (132,856) (118,558) (394,051) (347,032)

Stock-based compensation

expense (86,057) (92,147) (91,098) (265,596) (263,411)

Cash operating expense $ 399,349 $ 396,442 $ 358,916 $ 1,183,739 $ 1,067,402


(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 $ 212,506 $ 215,016 $ 193,089 $ 638,193 $ 579,327

Depreciation and amortization

expense (50,989) (51,221) (50,115) (153,066) (147,553)

Stock-based compensation

expense (22,638) (22,554) (22,507) (64,697) (65,862)

Cash sales and marketing

expense $ 138,879 $ 141,241 $ 120,467 $ 420,430 $ 365,912


-----

**Three Months Ended** **Nine Months Ended**


**September** **September**

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


**September**

**30, 2023**


**September**

**30, 2022**


(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 $ 403,890 $ 406,429 $ 375,483 $ 1,205,193 $ 1,098,518

Depreciation and amortization

expense (80,001) (81,635) (68,443) (240,985) (199,479)

Stock-based compensation

expense (63,419) (69,593) (68,591) (200,899) (197,549)

Cash general and

administrative expense $ 260,470 $ 255,201 $ 238,449 $ 763,309 $ 701,490


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

Americas cash SG&A $ 238,524 $ 230,284 $ 203,026 $ 700,689 $ 618,493

EMEA cash SG&A 94,197 94,258 87,639 281,980 262,762

Asia-Pacific cash SG&A 66,628 71,900 68,251 201,070 186,147

Cash SG&A $ 399,349 $ 396,442 $ 358,916 $ 1,183,739 $ 1,067,402


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

other expense, gain (loss) 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 $ 275,760 $ 207,013 $ 211,739 $ 741,503 $ 575,674

Income tax expense 19,985 37,385 34,606 112,425 75,985

Interest income (23,111) (23,503) (11,192) (66,002) (17,806)

Interest expense 101,385 99,973 91,346 298,839 262,137

Other expense 5,972 11,518 6,735 9,987 22,522

(Gain) loss on debt
extinguishment 360 — (75) 106 (184)

Depreciation, amortization and

accretion expense 461,842 460,461 431,668 1,381,298 1,300,882

Stock-based compensation

expense 98,446 104,546 101,830 301,707 296,464

Transaction costs (775) 5,718 2,007 6,543 11,310

(Gain) loss on asset sales (3,933) (1,941) 2,252 (5,022) 3,976

Adjusted EBITDA $ 935,931 $ 901,170 $ 870,916 $ 2,781,384 $ 2,530,960


The geographic split of our adjusted EBITDA is presented below:

Americas net income (loss) $ 37,911 $ (42,264) $ 48,369 $ (44,845) $ 66,996

Americas income tax expense 19,897 37,385 34,606 112,424 75,866

Americas interest income (17,506) (18,631) (10,374) (51,312) (16,006)


-----

**Three Months Ended** **Nine Months Ended**


**September** **September**

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


**September**

**30, 2023**


**September**

**30, 2022**


Americas interest expense 86,691 83,892 80,681 254,863 233,571

Americas other expense

(income) (39,137) 7,988 (68,241) (26,045) (147,434)

Americas loss on debt

extinguishment — — 39 — 198

Americas depreciation,

amortization and accretion
expense 251,855 251,594 234,788 748,556 694,973

Americas stock-based

compensation expense 64,067 69,464 69,272 201,345 206,866

Americas transaction costs 1,054 2,610 3,241 4,141 8,947

Americas loss on asset sales 65 710 2,778 3,605 3,961

Americas adjusted

EBITDA $ 404,897 $ 392,748 $ 395,159 $ 1,202,732 $ 1,127,938


EMEA net income $ 125,992 $ 151,942 $ 82,558 $ 476,949 $ 282,584

EMEA income tax expense — — — — 119

EMEA interest income (2,730) (2,872) (487) (8,142) (1,279)

EMEA interest expense 3,931 4,557 2,219 12,637 3,023

EMEA other expense (income) 42,284 (2,862) 69,245 22,942 155,585

EMEA depreciation,

amortization and accretion
expense 125,613 123,100 112,065 373,388 343,001

EMEA stock-based

compensation expense 20,958 21,510 19,174 61,304 54,454

EMEA transaction costs (1,878) 2,090 (1,488) 1,048 1,763

EMEA gain on asset sales (3,998) (2,651) — (8,627) (237)

EMEA adjusted EBITDA $ 310,172 $ 294,814 $ 283,286 $ 931,499 $ 839,013


Asia-Pacific net income $ 111,857 $ 97,335 $ 80,812 $ 309,399 $ 226,094

Asia-Pacific income tax

expense 88 — — 1 —

Asia-Pacific interest income (2,875) (2,000) (331) (6,548) (521)

Asia-Pacific interest expense 10,763 11,524 8,446 31,339 25,543

Asia-Pacific other expense 2,825 6,392 5,731 13,090 14,371

Asia-Pacific (gain) loss on debt

extinguishment 360 — (114) 106 (382)

Asia-Pacific depreciation,

amortization and accretion
expense 84,374 85,767 84,815 259,354 262,908

Asia-Pacific stock-based

compensation expense 13,421 13,572 13,384 39,058 35,144

Asia-Pacific transaction costs 49 1,018 254 1,354 600

Asia-Pacific (gain) loss on asset
sales — — (526) — 252

Asia-Pacific adjusted

EBITDA $ 220,862 $ 213,608 $ 192,471 $ 647,153 $ 564,009


-----

**Three Months Ended** **Nine Months Ended**


**September** **September**

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

(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 70 % 70 % 71 % 71 % 70 %

EMEA cash gross margins 57 % 57 % 63 % 58 % 63 %

Asia-Pacific cash gross margins 66 % 65 % 65 % 65 % 64 %


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


**September**

**30, 2023**


**September**

**30, 2022**


Americas adjusted EBITDA

margins 44 % 44 % 47 % 45 % 46 %

EMEA adjusted EBITDA

margins 44 % 43 % 48 % 45 % 48 %

Asia-Pacific adjusted EBITDA

margins 50 % 48 % 48 % 50 % 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 $ 935,931 $ 901,170 $ 870,916 $ 2,781,384 $ 2,530,960

Less adjusted EBITDA - prior

period (901,170) (944,283) (860,332) (2,569,988) (2,371,152)

Adjusted EBITDA growth $ 34,761 $ (43,113) $ 10,584 $ 211,396 $ 159,808

Revenues - current period $ 2,061,030 $ 2,018,408 $ 1,840,659 $ 6,077,647 $ 5,392,260

Less revenues - prior period (2,018,408) (1,998,209) (1,817,154) (5,528,658) (5,039,473)

Revenue growth $ 42,622 $ 20,199 $ 23,505 $ 548,989 $ 352,787

Adjusted EBITDA flow
through rate 82 % (213) % 45 % 39 % 45 %


(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 $ 275,760 $ 207,013 $ 211,739 $ 741,503 $ 575,674

Net (income) loss attributable

to non-controlling interests 34 17 68 107 (92)

Net income attributable to

Equinix 275,794 207,030 211,807 741,610 575,582

Adjustments:

Real estate depreciation 284,760 283,673 271,920 852,114 830,162

(Gain) loss on disposition of

real estate property (3,480) 1,175 2,002 256 6,697


-----

**Three Months Ended** **Nine Months Ended**


**September** **September**

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


**September**

**30, 2023**


**September**

**30, 2022**


Adjustments for FFO from

unconsolidated joint
ventures 5,006 3,362 2,667 11,492 6,948

FFO attributable to

common shareholders $ 562,080 $ 495,240 $ 488,396 $ 1,605,472 $ 1,419,389


(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 $ 562,080 $ 495,240 $ 488,396 $ 1,605,472 $ 1,419,389

Adjustments:

Installation revenue

adjustment (481) 6,121 9,959 3,403 10,770

Straight-line rent expense

adjustment 6,323 10,614 6,811 18,116 14,678

Contract cost adjustment (9,835) (13,735) (12,678) (30,252) (35,508)

Amortization of deferred

financing costs and debt
discounts 4,684 4,653 4,533 13,927 13,273

Stock-based compensation

expense 98,446 104,546 101,830 301,707 296,464

Stock-based charitable

contributions — 2,543 — 2,543 14,039

Non-real estate depreciation

expense 125,882 125,535 106,400 372,362 315,324

Amortization expense 52,297 52,428 51,873 157,199 153,317

Accretion expense adjustment (1,097) (1,175) 1,476 (377) 2,080

Recurring capital

expenditures (51,736) (39,672) (50,182) (113,137) (108,838)

(Gain) loss on debt

extinguishment 360 — (75) 106 (184)

Transaction costs (775) 5,718 2,007 6,543 11,310

Impairment charges [(1)] 1,518 — 1,815 1,518 1,815

Income tax expense (benefit)

adjustment [(1)] (16,719) 1,542 (965) (13,595) (50,971)

Adjustments for AFFO from

unconsolidated joint
ventures 670 (96) 836 2,137 (898)

AFFO attributable to common

shareholders $ 771,617 $ 754,262 $ 712,036 $ 2,327,672 $ 2,056,060


(1) Impairment charges relate to the impairment of an indemnification asset resulting from the settlement of a preacquisition uncertain tax position, which was recorded as Other Income (Expense) on the Condensed
Consolidated Statements of Operations. This impairment charge was offset by the recognition of tax benefits in
the same amount, which was included within the Income tax expense adjustment line on the table above.


-----

**Three Months Ended** **Nine Months Ended**


**September** **September**

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

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


**September**

**30, 2023**


**September**

**30, 2022**


Adjusted EBITDA $ 935,931 $ 901,170 $ 870,916 $ 2,781,384 $ 2,530,960

Adjustments:

Interest expense, net of

interest income (78,274) (76,470) (80,154) (232,837) (244,331)

Amortization of deferred

financing costs and debt
discounts 4,684 4,653 4,533 13,927 13,273

Income tax expense (19,985) (37,385) (34,606) (112,425) (75,985)

Income tax expense (benefit)

adjustment (16,719) 1,542 (965) (13,595) (50,971)

Straight-line rent expense

adjustment 6,323 10,614 6,811 18,116 14,678

Stock-based charitable

contributions — 2,543 — 2,543 14,039

Contract cost adjustment (9,835) (13,735) (12,678) (30,252) (35,508)

Installation revenue

adjustment (481) 6,121 9,959 3,403 10,770

Recurring capital

expenditures (51,736) (39,672) (50,182) (113,137) (108,838)

Other expense (5,972) (11,518) (6,735) (9,987) (22,522)

(Gain) loss on disposition of

real estate property (3,480) 1,175 2,002 256 6,697

Adjustments for

unconsolidated JVs’ and
non-controlling interests 5,710 3,283 3,572 13,736 5,959

Adjustments for impairment

charges 1,518 — 1,815 1,518 1,815

Adjustment for gain (loss) on

sale of assets 3,933 1,941 (2,252) 5,022 (3,976)

AFFO attributable to common

shareholders $ 771,617 $ 754,262 $ 712,036 $ 2,327,672 $ 2,056,060


(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 93,683 93,535 91,896 93,396 91,234

Effect of dilutive securities:

Employee equity awards 485 322 239 392 285


-----

**Three Months Ended** **Nine Months Ended**


**September** **September**

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


**September**

**30, 2023**


**September**

**30, 2022**


Shares used in computing

diluted net income per share,
FFO per share and AFFO per
share 94,168 93,857 92,135 93,788 91,519

Basic FFO per share $ 6.00 $ 5.29 $ 5.31 $ 17.19 $ 15.56

Diluted FFO per share $ 5.97 $ 5.28 $ 5.30 $ 17.12 $ 15.51

Basic AFFO per share $ 8.24 $ 8.06 $ 7.75 $ 24.92 $ 22.54

Diluted AFFO per share $ 8.19 $ 8.04 $ 7.73 $ 24.82 $ 22.47


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