**Equinix Investor Relations Contact:** **Equinix Media Contact:**

invest@equinix.com press@equinix.com

**_FOR IMMEDIATE RELEASE_**

**EQUINIX REPORTS FOURTH-QUARTER AND FULL-YEAR 2023 RESULTS**

**_Delivered More Than $8 Billion in Revenue in 2023, Achieving 21 Years of Consecutive_**

**_Quarterly Revenue Growth_**

-  2023 annual revenues increased 13% year-over-year on an as-reported basis and 15% on a

normalized and constant currency basis to $8.2 billion

-  Closed nearly 17,000 deals across more than 5,900 customers in 2023

-  Record 90 megawatts (“MW”) of xScale[®] leasing, the result of increased hyperscale demand to

support artificial intelligence (AI) and cloud deployments

**REDWOOD CITY, Calif. - February 14, 2024** **-** **[Equinix, Inc. (Nasdaq: EQIX), the world’s digital](https://www.equinix.com/?ls=Public%20Relations&lsd=24q1_enterprise_no-program--not-applicable__pr-equinix_Equinix-run_press-release__gb-en_EMEA_Q4-23-earnings-press-release_awareness&utm_campaign=gb-en__press-release_Q4-23-earnings-press-release_pr-equinix&utm_source=&utm_medium=press-release&utm_content=no-program--not-applicable_)**

infrastructure company[®], today reported results for the quarter and year ended December 31, 2023.

Equinix uses certain non-GAAP financial measures, which are described further below and reconciled to

the most comparable GAAP financial measures after the presentation of our GAAP financial statements.

All per-share results are presented on a fully diluted basis.


-----

**2023 Results Summary**

◦ **Revenues**

-  $8.188 billion, a 13% increase over the previous year on an as-reported basis or 15% on a
normalized and constant currency basis

**◦** **Operating Income**

-  $1.443 billion, a 20% increase over the previous year, and an operating margin of 18% due to
strong operating performance

**◦** **Net Income and Net Income per Share attributable to common shareholders**

-  $969 million, a 38% increase over the previous year, primarily due to operating performance
strength and other income; partially offset by higher income taxes

-  $10.31 per share, a 34% increase over the previous year

◦ **Adjusted EBITDA**

-  $3.702 billion, a 45% adjusted EBITDA margin, an increase of 10% compared to last year on
an as-reported basis

-  Includes $13 million of integration costs

◦ **AFFO and AFFO per Share**

-  $3.019 billion, an 11% increase over the previous year on an as-reported basis or 13% on a
normalized and constant currency basis

-  $32.11 per share, a 9% increase over the previous year on an as-reported basis or 11% on a
normalized and constant currency basis

**2024 Annual Guidance Summary**

◦ **Revenues**

-  $8.793 - $8.893 billion, a 7 - 9% increase over the previous year on an as-reported basis or a
normalized and constant currency increase of 7 - 8% excluding the year-over-year impact of
the power pass-through

◦ **Adjusted EBITDA**

-  $4.089 - $4.169 billion, a 47% adjusted EBITDA margin, a 10 - 13% increase over the prior
year on an as-reported basis

-  Assumes $25 million of integration costs

◦ **AFFO and AFFO per Share**

-  $3.306 - $3.376 billion, an increase of 9 - 12% over the previous year on both an as-reported
and normalized and constant currency basis

-  $34.58 - $35.31 per share, an increase of 8 - 10% over the previous year on both an asreported and normalized and constant currency basis

-  This guidance excludes any capital market activities the company may undertake in the future

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, CEO and President, Equinix:**

_“2023 was another strong year for Equinix—we delivered more than $8 billion of revenues, achieving an_

_amazing 21 years of consecutive quarterly revenue growth, all while driving AFFO per share_

_performance above the top end of our long-term expectations. We made substantial progress on our_

_ambitious agenda, positioning the business to capitalize on the immense opportunities that lie ahead._

_Digital transformation, especially in an AI-driven world, is as important as ever to our customers. In this_

_context, the significance of Platform Equinix and its strong competitive advantages has never been more_

_crucial. We plan to continue our focus on creating a platform that allows our customers to build hybrid_

_and multicloud infrastructure, when they want, where they want, and with the ecosystem of partners they_

_need.”_

**Business Highlights**

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

across its global footprint, which now includes 260 data centers across 71 metropolitan areas in

33 countries. There are 49 major builds underway in 35 markets, across 21 countries including 11

xScale builds representing nearly 20,000 cabinets of retail and more than 50 megawatts of xScale

capacity through 2024.

◦ Equinix opened 14 new data centers in 12 metros including Dublin, Frankfurt, Kuala

Lumpur, Madrid, Milan, Montreal, Paris, São Paulo, Seattle, Seoul, Tokyo and

Washington, D.C. In addition, the company added seven new projects in Dallas, Lagos,

Madrid, Milan, Warsaw and Washington, D.C.

◦ In December, [Equinix announced plans to expand support for advanced liquid cooling](https://www.equinix.com/newsroom/press-releases/2023/12/equinix-to-accelerate-and-simplify-liquid-cooling-deployments-to-power-enterprise-ai-workloads?ls=Public%20Relations&lsd=24q1_enterprise_no-program--not-applicable__pr-equinix_Equinix-run_press-release__gb-en_EMEA_Q4-23-earnings-press-release_awareness&utm_campaign=gb-en__press-release_Q4-23-earnings-press-release_pr-equinix&utm_source=&utm_medium=press-release&utm_content=no-program--not-applicable_)

[technologies—including direct-to-chip—to more than 100 of its International Business](https://www.equinix.com/newsroom/press-releases/2023/12/equinix-to-accelerate-and-simplify-liquid-cooling-deployments-to-power-enterprise-ai-workloads?ls=Public%20Relations&lsd=24q1_enterprise_no-program--not-applicable__pr-equinix_Equinix-run_press-release__gb-en_EMEA_Q4-23-earnings-press-release_awareness&utm_campaign=gb-en__press-release_Q4-23-earnings-press-release_pr-equinix&utm_source=&utm_medium=press-release&utm_content=no-program--not-applicable_)

Exchange[TM] (IBX[®]) data centers in more than 45 metros around the world. This will

enable more businesses to use the most performant cooling technologies for the powerful,

high-density hardware that supports compute-intensive workloads such as AI.


-----

◦ The surge in demand for hyperscale infrastructure to support AI and cloud initiatives is

resulting in strong demand and significant leasing activity for Equinix’s global xScale

data center portfolio. Since the last earnings call, the company leased a record 90

megawatts of capacity across six assets in EMEA and APAC, including approximately 32

megawatts leased at the start of the year. This brings total xScale leasing to 300

megawatts globally.

◦ In Q4, Equinix purchased the company’s London 8 IBX data center. Revenues from

owned assets increased to 66% of recurring revenues, stepping up 2%, as the company

continues to progress on ownership and long-term control of assets.

[Last month Equinix launched a fully managed private cloud service that enables enterprises to](https://www.equinix.com/newsroom/press-releases/2024/01/equinix-announces-fully-managed-service-for-nvidia-dgx-ai-supercomputing?ls=Public%20Relations&lsd=24q1_enterprise_no-program--not-applicable__pr-equinix_Equinix-run_press-release__gb-en_EMEA_Q4-23-earnings-press-release_awareness&utm_campaign=gb-en__press-release_Q4-23-earnings-press-release_pr-equinix&utm_source=&utm_medium=press-release&utm_content=no-program--not-applicable_)

easily acquire and manage their own NVIDIA DGX AI supercomputing infrastructure for

building and running custom generative AI models. The service includes NVIDIA DGX systems,

NVIDIA networking and the NVIDIA AI Enterprise software platform. Equinix installs and

operates each customer's privately owned NVIDIA infrastructure and can deploy services on their

behalf in key IBX data centers globally.

◦ Equinix continues to gain traction as a preferred location for deploying private AI

infrastructure with both enterprises and service providers. In December, [the company](https://www.equinix.com/newsroom/press-releases/2023/12/companies-gaining-competitive-advantage-through-deploying-private-ai-infrastructure-at-equinix?ls=Public%20Relations&lsd=24q1_enterprise_no-program--not-applicable__pr-equinix_Equinix-run_press-release__gb-en_EMEA_Q4-23-earnings-press-release_awareness&utm_campaign=gb-en__press-release_Q4-23-earnings-press-release_pr-equinix&utm_source=&utm_medium=press-release&utm_content=no-program--not-applicable_)

[announced that customers, including Continental AG, i3D.net and Harrison.ai, are](https://www.equinix.com/newsroom/press-releases/2023/12/companies-gaining-competitive-advantage-through-deploying-private-ai-infrastructure-at-equinix?ls=Public%20Relations&lsd=24q1_enterprise_no-program--not-applicable__pr-equinix_Equinix-run_press-release__gb-en_EMEA_Q4-23-earnings-press-release_awareness&utm_campaign=gb-en__press-release_Q4-23-earnings-press-release_pr-equinix&utm_source=&utm_medium=press-release&utm_content=no-program--not-applicable_)

leveraging the cloud adjacency, global reach, robust ecosystems and low-latency

interconnection of Platform Equinix[®] to deploy private AI infrastructure.

Equinix's industry-leading global interconnection franchise continues to perform with over

462,000 total interconnections deployed on its platform. In Q4, interconnection revenues stepped

up 10% year-over-year on an as reported basis or 8% year-over-year on a normalized and

constant currency basis, and the company added an incremental 4,300 organic interconnections in

the quarter.

◦ In Q4, Equinix added four new native cloud on-ramps in Bogotá, Calgary and Zurich,

further strengthening its cloud ecosystem. Equinix customers can now enjoy low-latency

access to multiple native cloud on-ramps in 37 metros, including eight out of the world’s

10 largest metros by GDP. Equinix has nearly 40% market share of the on-ramps to the

major cloud service providers—key players in the AI ecosystem.


-----

◦ The company recently [launched Equinix Fabric Cloud Router, a virtual routing service](https://www.equinix.com/newsroom/press-releases/2024/01/equinix-enhances-multicloud-networking-portfolio-enabling-enterprises-to-easily-and-efficiently-connect-applications-across-multiple-clouds?ls=Public%20Relations&lsd=24q1_enterprise_no-program--not-applicable__pr-equinix_Equinix-run_press-release__gb-en_EMEA_Q4-23-earnings-press-release_awareness&utm_campaign=gb-en__press-release_Q4-23-earnings-press-release_pr-equinix&utm_source=&utm_medium=press-release&utm_content=no-program--not-applicable_)

designed to simplify networking challenges for enterprises in cloud-to-cloud and hybrid

cloud environments. This service provides an easy-to-configure, enterprise-grade,

multicloud routing solution that can be deployed within minutes. Customers can utilize

Equinix Fabric Cloud Router in all 58 Equinix Fabric[®]-enabled metros globally, ensuring

low-latency connectivity to major cloud providers and a wide range of service providers.

-  Equinix’s Channel program continued to see strong momentum, contributing to 35% of bookings

and over 50% of new customers in Q4. The company saw growth from partners, including Avant,

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

-  Equinix remains committed to advancing its Future First Sustainability strategy and has continued

to make significant progress in this area.

◦ In December, [Equinix announced the full allocation of proceeds from $4.9 billion in](https://www.equinix.com/newsroom/press-releases/2023/12/equinix-fully-allocates-4-9-billion-of-green-bond-proceeds?ls=Public%20Relations&lsd=24q1_enterprise_no-program--not-applicable__pr-equinix_Equinix-run_press-release__gb-en_EMEA_Q4-23-earnings-press-release_awareness&utm_campaign=gb-en__press-release_Q4-23-earnings-press-release_pr-equinix&utm_source=&utm_medium=press-release&utm_content=no-program--not-applicable_)

[investment-grade green bonds to advance toward its near-term science-based target to](https://www.equinix.com/newsroom/press-releases/2023/12/equinix-fully-allocates-4-9-billion-of-green-bond-proceeds?ls=Public%20Relations&lsd=24q1_enterprise_no-program--not-applicable__pr-equinix_Equinix-run_press-release__gb-en_EMEA_Q4-23-earnings-press-release_awareness&utm_campaign=gb-en__press-release_Q4-23-earnings-press-release_pr-equinix&utm_source=&utm_medium=press-release&utm_content=no-program--not-applicable_)

become climate neutral by 2030 and improve the operational eco-efficiency of its

business. As one of the top ten largest green bond issuers in the U.S., Equinix used the

net proceeds to support 172 green building projects across 105 sites, 33 energy-efficiency

projects, and two Power Purchase Agreements (“PPAs”).

◦ [Earlier this month Equinix executed a new PPA in Australia, signaling a broader industry](https://www.equinix.com/newsroom/press-releases/2024/02/expanding-renewable-energy-supply-in-high-impact-markets-equinix-executes-clean-energy-contract-in-australia?ls=Public%20Relations&lsd=24q1_enterprise_no-program--not-applicable__pr-equinix_Equinix-run_press-release__gb-en_EMEA_Q4-23-earnings-press-release_awareness&utm_campaign=gb-en__press-release_Q4-23-earnings-press-release_pr-equinix&utm_source=&utm_medium=press-release&utm_content=no-program--not-applicable_)

goal of bringing additional clean power to a region where conditions have traditionally

been more challenging for executing renewable energy projects. To date, Equinix has

executed 21 PPAs across Australia, France, Iberia, the Nordics and the U.S., representing

more than one gigawatt of clean energy once operational.

◦ For the second year in a row, Equinix achieved the highest-ranking score of the CDP’s

prestigious 2023 "Climate Change A List," a leading environmental rating system

focused on climate-related transparency and action. Equinix was also named as a leader

in the [IDC MarketScape: Worldwide Datacenter Services 2023 Vendor Assessment,](https://www.equinix.com/newsroom/press-releases/2023/11/equinix-named-a-leader-in-2023-idc-marketscape-report-for-worldwide-datacenter-services?ls=Public%20Relations&lsd=24q1_enterprise_no-program--not-applicable__pr-equinix_Equinix-run_press-release__gb-en_EMEA_Q4-23-earnings-press-release_awareness&utm_campaign=gb-en__press-release_Q4-23-earnings-press-release_pr-equinix&utm_source=&utm_medium=press-release&utm_content=no-program--not-applicable_)

recognized for its sustainability advancements, innovative platform capabilities, and

global expansion and ecosystem growth.[1]

__________________________________________

1. IDC, “IDC MarketScape: Worldwide Datacenter Services 2023 Vendor Assessment,” Doc # US49435022e, October 2023.


-----

**Business Outlook**

For the first quarter of 2024, Equinix expects revenues to range between $2.127 and $2.147 billion, an

increase of 1 - 2% over the previous quarter, or flat on a normalized and constant currency basis. This

guidance includes lower non-recurring revenues related to significant xScale activity in Q4 2023 partly

offset by a foreign currency benefit of $38 million when compared to the average FX rates in Q4 2023.

Adjusted EBITDA is expected to range between $960 and $980 million, which includes a foreign

currency benefit of $18 million when compared to the average FX rates in Q4 2023. Adjusted EBITDA

includes $5 million of integration costs related to acquisitions. Recurring capital expenditures are

expected to range between $14 and $34 million.

For the full year of 2024, total revenues are expected to range between $8.793 and $8.893 billion, a 7 
9% increase over the previous year on an as-reported basis, or a 7 - 8% increase on a normalized and

constant currency basis excluding the year-over-year impact of the power pass-through, and includes a

foreign currency benefit of $127 million when compared to the prior Equinix guidance FX rates. Adjusted

EBITDA is expected to range between $4.089 and $4.169 billion, an adjusted EBITDA margin of 47%.

This adjusted EBITDA includes approximately 160 basis points of margin benefit from improving

operating leverage and power cost decreases, as well as a foreign currency benefit of $67 million when

compared to the prior Equinix guidance FX rates. For the year, the company expects to incur $25 million

in integration costs related to acquisitions. AFFO is expected to range between $3.306 and $3.376 billion,

a 9 - 12% increase over the previous year on both an as-reported and normalized and constant currency

basis. This AFFO guidance includes $25 million in integration costs related to acquisitions. AFFO per

share is expected to range between $34.58 and $35.31, an 8 - 10% increase over the previous year on both

an as-reported and normalized and constant currency basis. This guidance excludes any capital market

activities the company may undertake in the future. Non-recurring capital expenditures, including xScale
related costs, are expected to range between $2.570 and $2.800 billion, and recurring capital expenditures

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

expenditures are expected to range between $50 and $90 million, which we anticipate will be reimbursed

from both the current and future xScale JVs.

The U.S. dollar exchange rates used for 2024 guidance, taking into consideration the impact of our

current foreign currency hedges, have been updated to $1.10 to the Euro, $1.24 to the Pound, S$1.32 to

the U.S. dollar, ¥141 to the U.S. dollar and A$1.47 to the U.S. dollar. The Q4 2023 global revenue

breakdown by currency for the Euro, British Pound, Singapore Dollar, Japanese Yen and Australian

Dollar is 21%, 10%, 8%, 5% 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.

**Q4 2023 Results Conference Call and Replay Information**

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

outlook, in its quarterly conference call on Wednesday, February 14, 2024, 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](https://investor.equinix.com/?ls=Public%2520Relations&lsd=23q1__--_/investors_pr-equinix_pr-newswire_press-release__us-en_AMER_22q4-earnings_awareness&utm_campaign=us-en__press-release_22q4-earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_?ls=Public%20Relations&lsd=24q1_enterprise_no-program--not-applicable__pr-equinix_Equinix-run_press-release__gb-en_EMEA_Q4-23-earnings-press-release_awareness&utm_campaign=gb-en__press-release_Q4-23-earnings-press-release_pr-equinix&utm_source=&utm_medium=press-release&utm_content=no-program--not-applicable_)

(domestic and international) and reference the passcode EQIX.

A replay of the call will be available one hour after the call through Wednesday, May 1, 2024, by dialing

1-800-568-3705 and referencing the passcode 2024. In addition, the webcast will be available at

[www.equinix.com/investors (no password required).](https://investor.equinix.com/?ls=Public%2520Relations&lsd=23q1__--_/investors_pr-equinix_pr-newswire_press-release__us-en_AMER_22q4-earnings_awareness&utm_campaign=us-en__press-release_22q4-earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_?ls=Public%20Relations&lsd=24q1_enterprise_no-program--not-applicable__pr-equinix_Equinix-run_press-release__gb-en_EMEA_Q4-23-earnings-press-release_awareness&utm_campaign=gb-en__press-release_Q4-23-earnings-press-release_pr-equinix&utm_source=&utm_medium=press-release&utm_content=no-program--not-applicable_)

**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://investor.equinix.com/?ls=Public%2520Relations&lsd=23q1__--_/investors_pr-equinix_pr-newswire_press-release__us-en_AMER_22q4-earnings_awareness&utm_campaign=us-en__press-release_22q4-earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_?ls=Public%20Relations&lsd=24q1_enterprise_no-program--not-applicable__pr-equinix_Equinix-run_press-release__gb-en_EMEA_Q4-23-earnings-press-release_awareness&utm_campaign=gb-en__press-release_Q4-23-earnings-press-release_pr-equinix&utm_source=&utm_medium=press-release&utm_content=no-program--not-applicable_)

**Additional Resources**

-  [Equinix Investor Relations Resources](https://investor.equinix.com/?ls=Public%2520Relations&lsd=23q1__--_/investors_pr-equinix_pr-newswire_press-release__us-en_AMER_22q4-earnings_awareness&utm_campaign=us-en__press-release_22q4-earnings_pr-equinix&utm_source=&utm_medium=press-release&utm_content=--_?ls=Public%20Relations&lsd=24q1_enterprise_no-program--not-applicable__pr-equinix_Equinix-run_press-release__gb-en_EMEA_Q4-23-earnings-press-release_awareness&utm_campaign=gb-en__press-release_Q4-23-earnings-press-release_pr-equinix&utm_source=&utm_medium=press-release&utm_content=no-program--not-applicable_)

**About Equinix**

Equinix (Nasdaq: EQIX) is the world’s digital infrastructure company[®]. Digital leaders harness Equinix’s

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

an IBX data center do not recur with respect to such data center, and future capital expenditures remain

minor relative to our initial investment throughout its useful life. Construction costs in future periods are

primarily incurred with respect to additional IBX data centers. This is a trend we expect 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 the 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 deducts 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 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 and_

_increased challenges 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 potential_

_cybersecurity breaches; 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** **Twelve Months Ended**


**December 31,**

**2023**


**September 30,**

**2023**


**December 31,**

**2022**


**December 31,**

**2023**


**December 31,**

**2022**




Recurring revenues $ 1,976,038 $ 1,961,043 $ 1,773,380 $ 7,744,731 $ 6,871,287

Non-recurring revenues 134,451 99,987 97,465 443,405 391,818

**Revenues** **2,110,489** **2,061,030** **1,870,845** **8,188,136** **7,263,105**

Cost of revenues 1,091,776 1,068,991 970,700 4,227,658 3,751,501

**Gross profit** **1,018,713** **992,039** **900,145** **3,960,478** **3,511,604**

Operating expenses:

Sales and marketing 217,603 212,506 207,233 855,796 786,560

General and administrative 448,849 403,890 400,183 1,654,042 1,498,701

Transaction costs 5,869 (775) 10,529 12,412 21,839

(Gain) loss on asset sales (24) (3,933) — (5,046) 3,976

**Total operating expenses** **672,297** **611,688** **617,945** **2,517,204** **2,311,076**

**Income from operations** **346,416** **380,351** **282,200** **1,443,274** **1,200,528**

Interest and other expense:

Interest income 28,225 23,111 18,462 94,227 36,268

Interest expense (103,183) (101,385) (94,200) (402,022) (356,337)

Other expense (1,227) (5,972) (28,895) (11,214) (51,417)

Gain (loss) on debt extinguishment 71 (360) 143 (35) 327

**Total interest and other, net** **(76,114)** **(84,606)** **(104,490)** **(319,044)** **(371,159)**

**Income before income taxes** **270,302** **295,745** **177,710** **1,124,230** **829,369**

Income tax expense (42,825) (19,985) (48,807) (155,250) (124,792)

**Net income** **227,477** **275,760** **128,903** **968,980** **704,577**

Net (income) loss attributable to

non-controlling interests 91 34 (140) 198 (232)

**Net income attributable to common**
**shareholders** **$** **227,568** **$** **275,794** **$** **128,763** **$** **969,178** **$** **704,345**

**Net income per share attributable to common shareholders:**

Basic net income per share $ 2.41 $ 2.94 $ 1.39 $ 10.35 $ 7.69

Diluted net income per share $ 2.40 $ 2.93 $ 1.39 $ 10.31 $ 7.67

Shares used in computing basic net

income per share 94,268 93,683 92,573 93,615 91,569

Shares used in computing diluted

net income per share 94,667 94,168 92,752 94,009 91,828


-----

**EQUINIX, INC.**

**Condensed Consolidated Statements of Comprehensive Income (Loss)**

**(in thousands)**

**(unaudited)**

**Three Months Ended** **Twelve Months Ended**


**December 31,**

**2023**


**September 30,**

**2023**


**December 31,**

**2022**


**December 31,**

**2023**


**December 31,**

**2022**



Net income $ 227,477 $ 275,760 $ 128,903 $ 968,980 $ 704,577

Other comprehensive income (loss), net of tax:

Foreign currency translation

adjustment (“CTA”) gain
(loss) 479,754 (412,910) 796,716 249,981 (769,886)

Unrealized gain (loss) on cash

flow hedges (26,382) 25,685 (50,231) (18,370) 40,543

Net investment hedge CTA gain

(loss) (217,345) 149,608 (379,960) (131,883) 425,701

Net actuarial loss on defined

benefit plans (112) (119) (42) (462) (101)

Total other comprehensive

income (loss), net of tax 235,915 (237,736) 366,483 99,266 (303,743)

**Comprehensive income, net of**

**tax** **463,392** **38,024** **495,386** **1,068,246** **400,834**

Net (income) loss attributable to

non-controlling interests 91 34 (140) 198 (232)

Other comprehensive (income)

loss attributable to non-
controlling interests (22) 182 (12) 63 48

**Comprehensive income**

**attributable to common**
**shareholders** **$** **463,461 $** **38,240 $** **495,234 $ 1,068,507 $** **400,650**


-----

**EQUINIX, INC.**

**Condensed Consolidated Balance Sheets**

**(in thousands)**

**(unaudited)**

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

**Assets**
Cash and cash equivalents $ 2,095,712 $ 1,906,421

Accounts receivable, net 1,003,792 855,380

Other current assets 468,193 459,138

Assets held for sale — 84,316

**Total current assets** **3,567,697** **3,305,255**

Property, plant and equipment, net 18,600,833 16,649,534

Operating lease right-of-use assets 1,448,890 1,427,950

Goodwill 5,737,122 5,654,217

Intangible assets, net 1,704,870 1,897,649

Other assets 1,591,312 1,376,137

**Total assets** **$** **32,650,724** **$** **30,310,742**

**Liabilities, Redeemable Non-Controlling Interest and Stockholders’ Equity**

Accounts payable and accrued expenses $ 1,186,618 $ 1,004,800

Accrued property, plant and equipment 398,216 281,347

Current portion of operating lease liabilities 130,745 139,538

Current portion of finance lease liabilities 138,657 151,420

Current portion of mortgage and loans payable 7,705 9,847

Current portion of senior notes 998,580 —

Other current liabilities 301,729 251,346

**Total current liabilities** **3,162,250** **1,838,298**

Operating lease liabilities, less current portion 1,331,333 1,272,812

Finance lease liabilities, less current portion 2,122,484 2,143,690

Mortgage and loans payable, less current portion 663,263 642,708

Senior notes, less current portion 12,062,346 12,109,539

Other liabilities 795,549 797,863

**Total liabilities** **20,137,225** **18,804,910**

Redeemable non-controlling interest 25,000 —

**Common stockholders’ equity:**
Common stock 95 93

Additional paid-in capital 18,595,664 17,320,017

Treasury stock (56,117) (71,966)

Accumulated dividends (8,694,647) (7,317,570)

Accumulated other comprehensive loss (1,290,117) (1,389,446)

Retained earnings 3,934,016 2,964,838

**Total common stockholders’ equity** **12,488,894** **11,505,966**

Non-controlling interests (395) (134)

**Total stockholders’ equity** **12,488,499** **11,505,832**

**Total liabilities, redeemable non-controlling interest and**
**stockholders’ equity** **$** **32,650,724** **$** **30,310,742**


Ending headcount by geographic region is as follows:

Americas headcount 5,953 5,493

EMEA headcount 4,267 3,936

Asia-Pacific headcount 2,931 2,668

Total headcount 13,151 12,097


-----

**EQUINIX, INC.**

**Summary of Debt Principal Outstanding**

**(in thousands)**

**(unaudited)**

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


Finance lease liabilities $ 2,261,141 $ 2,295,110

Term loans 641,931 618,028

Mortgage payable and other loans payable 29,037 34,527

Plus: debt discount and issuance costs, net 726 1,062

Total mortgage and loans payable principal 671,694 653,617

Senior notes 13,060,926 12,109,539

Plus: debt discount and issuance costs 108,026 117,351

Total senior notes principal 13,168,952 12,226,890

Total debt principal outstanding $ 16,101,787 $ 15,175,617


-----

**EQUINIX, INC.**

**Condensed Consolidated Statements of Cash Flows**

**(in thousands)**

**(unaudited)**

**Three Months Ended** **Twelve Months Ended**


**December 31,**

**2023**


**September 30,**

**2023**


**December 31,**

**2022**


**December 31,**

**2023**


**December 31,**

**2022**



Cash flows from operating activities:

Net income $ 227,477 $ 275,760 $ 128,903 $ 968,980 $ 704,577

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

Depreciation, amortization

and accretion 462,367 466,613 438,492 1,843,665 1,739,374

Stock-based compensation 105,829 98,446 107,519 407,536 403,983

Amortization of debt

issuance costs and debt
discounts and premiums 4,791 4,684 4,553 18,718 17,826

(Gain) loss on debt

extinguishment (71) 360 (143) 35 (327)

Loss (gain) on asset sales (24) (3,933) — (5,046) 3,976

Other items 15,788 12,776 44,880 58,030 67,298

Changes in operating assets and liabilities:

Accounts receivable 49,358 (47,147) (56,209) (150,345) (153,415)

Income taxes, net 10,692 (14,530) (17,701) 4,107 (7,827)

Accounts payable and

accrued expenses 76,351 69,082 31,511 161,300 114,600

Operating lease right-of-

use assets 21,624 39,977 36,171 138,704 149,094

Operating lease liabilities (27,575) (33,654) (34,586) (126,539) (132,831)

Other assets and liabilities 52,107 (83,259) 76,799 (102,550) 56,854

**Net cash provided by operating**

**activities** **998,714** **785,175** **760,189** **3,216,595** **2,963,182**

Cash flows from investing activities:

Purchases, sales and maturities

of investments, net (54,534) (26,664) (35,222) (135,881) (122,569)

Business acquisitions, net of

cash and restricted cash
acquired — — — — (964,010)

Real estate acquisitions (231,108) (112,896) (208,377) (384,401) (248,276)

Purchases of other property,

plant and equipment (995,720) (617,539) (827,927) (2,781,018) (2,278,004)

Proceeds from asset sales — 4,682 — 76,936 249,906

**Net cash used in investing**

**activities** **(1,281,362)** **(752,417)** **(1,071,526)** **(3,224,364)** **(3,362,953)**

Cash flows from financing activities:

Proceeds from employee

equity awards (115) 42,420 — 86,848 81,543

Proceeds from redeemable

non-controlling interest — — — 25,000 —

Payment of dividend

distributions (403,176) (324,587) (287,573) (1,374,168) (1,151,459)


-----

**Three Months Ended** **Twelve Months Ended**


**December 31,**

**2023**


**September 30,**

**2023**


**December 31,**

**2022**


**December 31,**

**2023**


**December 31,**

**2022**


Proceeds from public offering

of common stock, net of
offering costs 432,876 — — 733,651 796,018

Proceeds from mortgage and
loans payable — — — — 676,850

Proceeds from senior notes,

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

Repayment of finance lease

liabilities (50,822) (31,629) (36,394) (148,913) (134,202)

Repayment of mortgage and

loans payable (576) (2,133) (1,714) (6,132) (587,941)

Repayment of senior notes — — — — —

Debt extinguishment costs — — — — —

Debt issuance costs 307 (2,982) — (6,932) (17,731)

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

**financing activities** **(21,506)** **17,942** **(325,681)** **211,446** **856,766**

Effect of foreign currency

exchange rates on cash, cash
equivalents and restricted cash 42,209 (35,027) 37,398 (15,616) (98,201)

Net increase (decrease) in cash,

cash equivalents and restricted
cash (261,945) 15,673 (599,620) 188,061 358,794

Cash, cash equivalents and

restricted cash at beginning of
period 2,358,254 2,342,581 2,507,868 1,908,248 1,549,454

**Cash, cash equivalents and**

**restricted cash at end of period $ 2,096,309 $ 2,358,254 $ 1,908,248 $ 2,096,309 $ 1,908,248**

Supplemental cash flow information:

Cash paid for taxes $ 26,662 $ 42,021 $ 44,091 $ 152,988 $ 140,312

Cash paid for interest $ 136,224 $ 97,152 $ 128,511 $ 471,456 $ 430,217

**Free cash flow (negative free cash**

**flow)[(1)]** **$** **(228,114) $** **59,422 $** **(276,115) $** **128,112 $** **(277,202)**

**Adjusted free cash flow [(2)]** **$** **2,994 $** **172,318 $** **(67,738) $** **512,513 $** **935,084**

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

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


Net cash provided by

operating activities as
presented above $ 998,714 $ 785,175 $ 760,189 $ 3,216,595 $ 2,963,182

Net cash used in investing

activities as presented above (1,281,362) (752,417) (1,071,526) (3,224,364) (3,362,953)

Purchases, sales and maturities

of investments, net 54,534 26,664 35,222 135,881 122,569

Free cash flow (negative

free cash flow) $ (228,114) $ 59,422 $ (276,115) $ 128,112 $ (277,202)

(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:


-----

**Three Months Ended** **Twelve Months Ended**


**December 31,**

**2023**


**September 30,**

**2023**


**December 31,**

**2022**


**December 31,**

**2023**


**December 31,**

**2022**



Free cash flow (negative free

cash flow) as defined above $ (228,114) $ 59,422 $ (276,115) $ 128,112 $ (277,202)

Less business acquisitions, net

of cash and restricted cash
acquired — — — — 964,010

Less real estate acquisitions 231,108 112,896 208,377 384,401 248,276

Adjusted free cash flow $ 2,994 $ 172,318 $ (67,738) $ 512,513 $ 935,084


-----

**EQUINIX, INC.**

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

**(in thousands)**

**(unaudited)**

**Three Months Ended** **Twelve Months Ended**


**December**

**31, 2023**


**September**

**30, 2023**


**December**

**31, 2022**


**December**

**31, 2023**


**December**

**31, 2022**


Recurring revenues $ 1,976,038 $ 1,961,043 $ 1,773,380 $ 7,744,731 $ 6,871,287

Non-recurring revenues 134,451 99,987 97,465 443,405 391,818

**Revenues [(1)]** **2,110,489** **2,061,030** **1,870,845** **8,188,136** **7,263,105**

Cash cost of revenues [(2)] 756,510 725,750 642,176 2,869,034 2,436,074

**Cash gross profit [(3)]** **1,353,979** **1,335,280** **1,228,669** **5,319,102** **4,827,031**

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

Cash sales and marketing

expenses [(5)] 147,084 138,879 140,697 567,514 506,609

Cash general and

administrative

expenses [(6)] 286,438 260,470 249,232 1,049,747 950,722

**Total cash operating**

**expenses [(4)(7)]** **433,522** **399,349** **389,929** **1,617,261** **1,457,331**

**Adjusted EBITDA [(8)]** **$ 920,457** **$ 935,931** **$ 838,740** **$ 3,701,841** **$ 3,369,700**

**Cash gross margins [(9)]** **64 %** **65 %** **66 %** **65 %** **66 %**

**Adjusted EBITDA**
**margins [(10)]** **44 %** **45 %** **45 %** **45 %** **46 %**

**Adjusted EBITDA flow-**

**through rate [(11)]** **(31) %** **82 %** **(107) %** **36 %** **36 %**

**FFO [(12)]** **$ 524,505** **$ 562,080** **$ 406,945** **$ 2,129,977** **$ 1,826,334**

**AFFO [(13) (14)]** **$ 690,846** **$ 771,617** **$ 657,818** **$ 3,018,518** **$ 2,713,878**

**Basic FFO per share [(15)]** **$** **5.56** **$** **6.00** **$** **4.40** **$** **22.75** **$** **19.94**

**Diluted FFO per share [(15)]** **$** **5.54** **$** **5.97** **$** **4.39** **$** **22.66** **$** **19.89**

**Basic AFFO per share [(15)]** **$** **7.33** **$** **8.24** **$** **7.11** **$** **32.24** **$** **29.64**

**Diluted AFFO per share[(15)]** **$** **7.30** **$** **8.19** **$** **7.09** **$** **32.11** **$** **29.55**


-----

**Three Months Ended** **Twelve Months Ended**


**December**

**31, 2023**


**September**

**30, 2023**


**December**

**31, 2022**


**December**

**31, 2023**


**December**

**31, 2022**


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

_Americas Revenues:_

Colocation $ 610,512 $ 596,871 $ 568,240 $ 2,365,049 $ 2,187,751

Interconnection 210,550 206,552 197,337 820,007 756,214

Managed infrastructure 65,024 63,356 59,244 249,779 218,499

Other 6,657 5,503 4,885 22,118 20,727

Recurring revenues 892,743 872,282 829,706 3,456,953 3,183,191

Non-recurring revenues 38,968 41,411 42,065 160,539 166,026

Revenues $ 931,711 $ 913,693 $ 871,771 $ 3,617,492 $ 3,349,217


_EMEA Revenues:_

Colocation $ 540,935 $ 538,256 $ 450,480 $ 2,112,168 $ 1,744,121

Interconnection 79,619 78,795 66,710 307,337 268,398

Managed infrastructure 32,956 32,790 29,431 130,061 119,361

Other 23,816 23,283 23,882 98,591 75,449

Recurring revenues 677,326 673,124 570,503 2,648,157 2,207,329

Non-recurring revenues 73,840 35,590 31,208 189,697 135,875

Revenues $ 751,166 $ 708,714 $ 601,711 $ 2,837,854 $ 2,343,204


_Asia-Pacific Revenues:_

Colocation $ 317,969 $ 329,054 $ 291,480 $ 1,288,844 $ 1,150,738

Interconnection 67,538 67,411 61,572 266,966 243,664

Managed infrastructure 17,191 17,484 17,819 71,833 77,646

Other 3,271 1,688 2,300 11,978 8,719

Recurring revenues 405,969 415,637 373,171 1,639,621 1,480,767

Non-recurring revenues 21,643 22,986 24,192 93,169 89,917

Revenues $ 427,612 $ 438,623 $ 397,363 $ 1,732,790 $ 1,570,684


_Worldwide Revenues:_


Colocation $ 1,469,416 $ 1,464,181 $ 1,310,200 $ 5,766,061 $ 5,082,610

Interconnection 357,707 352,758 325,619 1,394,310 1,268,276

Managed infrastructure 115,171 113,630 106,494 451,673 415,506

Other 33,744 30,474 31,067 132,687 104,895

Recurring revenues 1,976,038 1,961,043 1,773,380 7,744,731 6,871,287

Non-recurring revenues 134,451 99,987 97,465 443,405 391,818

Revenues $ 2,110,489 $ 2,061,030 $ 1,870,845 $ 8,188,136 $ 7,263,105


-----

**Three Months Ended** **Twelve Months Ended**


**December**

**31, 2023**


**September**

**30, 2023**


**December**

**31, 2022**


**December**

**31, 2023**


**December**

**31, 2022**


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

Cost of revenues $ 1,091,776 $ 1,068,991 $ 970,700 $ 4,227,658 $ 3,751,501

Depreciation, amortization
and accretion expense (322,366) (330,852) (316,549) (1,309,613) (1,270,399)

Stock-based compensation
expense (12,900) (12,389) (11,975) (49,011) (45,028)

Cash cost of revenues $ 756,510 $ 725,750 $ 642,176 $ 2,869,034 $ 2,436,074


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

Americas cash cost of
revenues $ 263,165 $ 270,272 $ 263,374 $ 1,045,526 $ 994,389

EMEA cash cost of revenues 326,137 304,345 226,574 1,199,345 866,292

Asia-Pacific cash cost of
revenues 167,208 151,133 152,228 624,163 575,393

Cash cost of revenues $ 756,510 $ 725,750 $ 642,176 $ 2,869,034 $ 2,436,074


(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 $ 666,452 $ 616,396 $ 607,416 $ 2,509,838 $ 2,285,261

Depreciation and amortization
expense (140,001) (130,990) (121,943) (534,052) (468,975)

Stock-based compensation
expense (92,929) (86,057) (95,544) (358,525) (358,955)

Cash operating expense $ 433,522 $ 399,349 $ 389,929 $ 1,617,261 $ 1,457,331


(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 $ 217,603 $ 212,506 $ 207,233 $ 855,796 $ 786,560

Depreciation and amortization
expense (50,632) (50,989) (49,604) (203,698) (197,157)

Stock-based compensation
expense (19,887) (22,638) (16,932) (84,584) (82,794)

Cash sales and marketing
expense $ 147,084 $ 138,879 $ 140,697 $ 567,514 $ 506,609


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

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


-----

**Three Months Ended** **Twelve Months Ended**


**December**

**31, 2023**


**September**

**30, 2023**


**December**

**31, 2022**


**December**

**31, 2023**


**December**

**31, 2022**


General and administrative
expense $ 448,849 $ 403,890 $ 400,183 $ 1,654,042 $ 1,498,701

Depreciation and amortization
expense (89,369) (80,001) (72,339) (330,354) (271,818)

Stock-based compensation
expense (73,042) (63,419) (78,612) (273,941) (276,161)

Cash general and
administrative expense $ 286,438 $ 260,470 $ 249,232 $ 1,049,747 $ 950,722


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

Americas cash SG&A $ 257,581 $ 238,524 $ 214,560 $ 958,270 $ 833,053

EMEA cash SG&A 105,253 94,197 104,648 387,233 367,410

Asia-Pacific cash SG&A 70,688 66,628 70,721 271,758 256,868

Cash SG&A $ 433,522 $ 399,349 $ 389,929 $ 1,617,261 $ 1,457,331


(8) We define adjusted EBITDA as income from operations excluding depreciation, amortization, accretion,

stock-based compensation, restructuring charges, impairment charges, transaction costs and gain or loss
on asset sales as presented below:

Net income $ 227,477 $ 275,760 $ 128,903 $ 968,980 $ 704,577

Income tax expense 42,825 19,985 48,807 155,250 124,792

Interest income (28,225) (23,111) (18,462) (94,227) (36,268)

Interest expense 103,183 101,385 94,200 402,022 356,337

Other expense 1,227 5,972 28,895 11,214 51,417

(Gain) loss on debt

extinguishment (71) 360 (143) 35 (327)

Depreciation, amortization

and accretion expense 462,367 461,842 438,492 1,843,665 1,739,374

Stock-based compensation

expense 105,829 98,446 107,519 407,536 403,983

Transaction costs 5,869 (775) 10,529 12,412 21,839

(Gain) loss on asset sales (24) (3,933) — (5,046) 3,976

Adjusted EBITDA $ 920,457 $ 935,931 $ 838,740 $ 3,701,841 $ 3,369,700


The geographic split of our adjusted EBITDA is presented below:

Americas net income (loss) $ 57,548 $ 37,911 $ (67,580) $ 12,703 $ (584)


Americas income tax expense

(benefit) (89,606) 19,897 (33,279) 22,818 42,587

Americas interest income (20,633) (17,506) (16,259) (71,945) (32,265)

Americas interest expense 87,827 86,691 83,363 342,690 316,934

Americas other (income)

expense 50,797 (39,137) 104,539 24,752 (42,895)


-----

**Three Months Ended** **Twelve Months Ended**


**December**

**31, 2023**


**September**

**30, 2023**


**December**

**31, 2022**


**December**

**31, 2023**


**December**

**31, 2022**


Americas loss on debt

extinguishment — — — — 198

Americas depreciation,

amortization and accretion
expense 251,276 251,855 237,919 999,832 932,892

Americas stock-based

compensation expense 70,914 64,067 76,131 272,259 282,997

Americas transaction costs 2,923 1,054 9,003 7,064 17,950

Americas (gain) loss on asset

sales (82) 65 — 3,523 3,961

Americas adjusted EBITDA $ 410,964 $ 404,897 $ 393,837 $ 1,613,696 $ 1,521,775

EMEA net income $ 174,108 $ 125,992 $ 195,224 $ 651,057 $ 477,808

EMEA income tax expense 49,560 — 16,531 49,560 16,650

EMEA interest income (3,903) (2,730) (1,251) (12,045) (2,530)

EMEA interest expense 4,530 3,931 2,675 17,167 5,698

EMEA other (income)

expense (53,621) 42,284 (77,880) (30,679) 77,705

EMEA depreciation,

amortization and accretion
expense 124,536 125,613 116,097 497,924 459,098

EMEA stock-based

compensation expense 21,271 20,958 18,840 82,575 73,294

EMEA transaction costs 3,238 (1,878) 253 4,286 2,016

EMEA (gain) loss on asset

sales 58 (3,998) — (8,569) (237)

EMEA adjusted EBITDA $ 319,777 $ 310,172 $ 270,489 $ 1,251,276 $ 1,109,502


Asia-Pacific net income (loss) $ (4,179) $ 111,857 $ 1,259 $ 305,220 $ 227,353

Asia-Pacific income tax

expense 82,871 88 65,555 82,872 65,555

Asia-Pacific interest income (3,689) (2,875) (952) (10,237) (1,473)

Asia-Pacific interest expense 10,826 10,763 8,162 42,165 33,705

Asia-Pacific other expense 4,051 2,825 2,236 17,141 16,607

Asia-Pacific (gain) loss on

debt extinguishment (71) 360 (143) 35 (525)

Asia-Pacific depreciation,

amortization and accretion
expense 86,555 84,374 84,476 345,909 347,384

Asia-Pacific stock-based

compensation expense 13,644 13,421 12,548 52,702 47,692

Asia-Pacific transaction costs (292) 49 1,273 1,062 1,873

Asia-Pacific loss on asset

sales — — — — 252

Asia-Pacific adjusted
EBITDA $ 189,716 $ 220,862 $ 174,414 $ 836,869 $ 738,423


-----

**Three Months Ended** **Twelve Months Ended**


**December**

**31, 2023**


**September**

**30, 2023**


**December**

**31, 2022**


**December**

**31, 2023**


**December**

**31, 2022**


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

Our cash gross margins by geographic region is presented below:

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

EMEA cash gross margins 57 % 57 % 62 % 58 % 63 %

Asia-Pacific cash gross

margins 61 % 66 % 62 % 64 % 63 %


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

Americas adjusted EBITDA

margins 44 % 44 % 45 % 45 % 45 %

EMEA adjusted EBITDA

margins 43 % 44 % 45 % 44 % 47 %

Asia-Pacific adjusted

EBITDA margins 44 % 50 % 44 % 48 % 47 %


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

incremental revenue growth as follows:


Adjusted EBITDA - current

period $ 920,457 $ 935,931 $ 838,740 $ 3,701,841 $ 3,369,700

Less adjusted EBITDA - prior

period (935,931) (901,170) (870,916) (3,369,700) (3,144,384)

Adjusted EBITDA growth $ (15,474) $ 34,761 $ (32,176) $ 332,141 $ 225,316


Revenues - current period $ 2,110,489 $ 2,061,030 $ 1,870,845 $ 8,188,136 $ 7,263,105

Less revenues - prior period (2,061,030) (2,018,408) (1,840,659) (7,263,105) (6,635,537)

Revenue growth $ 49,459 $ 42,622 $ 30,186 $ 925,031 $ 627,568


Adjusted EBITDA flow
through rate (31) % 82 % (107) % 36 % 36 %

(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 $ 227,477 $ 275,760 $ 128,903 $ 968,980 $ 704,577

Net (income) loss

attributable to non-
controlling interests 91 34 (140) 198 (232)

Net income attributable to

common shareholders 227,568 275,794 128,763 969,178 704,345

Adjustments:

Real estate depreciation 289,747 284,760 274,625 1,141,861 1,104,787


-----

**Three Months Ended** **Twelve Months Ended**


**December**

**31, 2023**


**September**

**30, 2023**


**December**

**31, 2022**


**December**

**31, 2023**


**December**

**31, 2022**


(Gain) loss on disposition

of real estate property 1,642 (3,480) 437 1,898 7,134

Adjustments for FFO from

unconsolidated joint
ventures 5,548 5,006 3,120 17,040 10,068

FFO attributable to

common shareholders $ 524,505 $ 562,080 $ 406,945 $ 2,129,977 $ 1,826,334


(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 $ 524,505 $ 562,080 $ 406,945 $ 2,129,977 $ 1,826,334

Adjustments:

Installation revenue

adjustment 507 (481) 6,975 3,910 17,745

Straight-line rent expense

adjustment (5,952) 6,323 1,585 12,164 16,263

Amortization of deferred

financing costs and debt
discounts 4,792 4,684 4,553 18,719 17,826

Contract cost adjustment (16,349) (9,835) (17,380) (46,601) (52,888)

Stock-based compensation

expense 105,829 98,446 107,519 407,536 403,983

Stock-based charitable

contributions — — 34,974 2,543 49,013

Non-real estate depreciation

expense 121,852 125,882 111,342 494,214 426,666

Amortization expense 51,864 52,297 51,438 209,063 204,755

Accretion expense (1,096) (1,097) 1,086 (1,473) 3,166

Recurring capital

expenditures (105,150) (51,736) (80,047) (218,287) (188,885)

(Gain) loss on debt

extinguishment (71) 360 (143) 35 (327)

Transaction costs 5,869 (775) 10,529 12,412 21,839

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

Income tax expense

(benefit) adjustment [(1)] 1,462 (16,719) 19,806 (12,133) (31,165)

Adjustments for AFFO

from unconsolidated joint
ventures 2,784 670 (1,364) 4,921 (2,262)

AFFO attributable to

common shareholders $ 690,846 $ 771,617 $ 657,818 $ 3,018,518 $ 2,713,878


-----

**Three Months Ended** **Twelve Months Ended**

**December** **September** **December** **December** **December**

**31, 2023** **30, 2023** **31, 2022** **31, 2023** **31, 2022**

(1) Impairment charges relate to the impairment of an indemnification asset resulting from the
settlement of a pre-acquisition 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.

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

Adjusted EBITDA $ 920,457 $ 935,931 $ 838,740 $ 3,701,841 $ 3,369,700

Adjustments:

Interest expense, net of

interest income (74,958) (78,274) (75,738) (307,795) (320,069)

Amortization of deferred

financing costs and debt
discounts 4,792 4,684 4,553 18,719 17,826

Income tax expense (42,825) (19,985) (48,807) (155,250) (124,792)

Income tax expense

(benefit) adjustment [(1)] 1,462 (16,719) 19,806 (12,133) (31,165)

Straight-line rent expense

adjustment (5,952) 6,323 1,585 12,164 16,263

Stock-based charitable

contributions — — 34,974 2,543 49,013

Contract cost adjustment (16,349) (9,835) (17,380) (46,601) (52,888)

Installation revenue

adjustment 507 (481) 6,975 3,910 17,745

Recurring capital

expenditures (105,150) (51,736) (80,047) (218,287) (188,885)

Other expense (1,227) (5,972) (28,895) (11,214) (51,417)

(Gain) loss on disposition

of real estate property 1,642 (3,480) 437 1,898 7,134

Adjustments for

unconsolidated JVs’ and
non-controlling interests 8,423 5,710 1,615 22,159 7,574

Adjustments for impairment

charges [(1)] — 1,518 — 1,518 1,815

Adjustment for gain (loss)

on sale of assets 24 3,933 — 5,046 (3,976)

AFFO attributable to

common shareholders $ 690,846 $ 771,617 $ 657,818 $ 3,018,518 $ 2,713,878


(1) Impairment charges relate to the impairment of an indemnification asset resulting from the
settlement of a pre-acquisition 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.

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

shareholders is presented below:


Shares used in computing

basic net income per share,
FFO per share and AFFO
per share 94,268 93,683 92,573 93,615 91,569


-----

**Three Months Ended** **Twelve Months Ended**


**December**

**31, 2023**


**September**

**30, 2023**


**December**

**31, 2022**


**December**

**31, 2023**


**December**

**31, 2022**


Effect of dilutive securities:

Employee equity awards 399 485 179 394 259

Shares used in computing

diluted net income per
share, FFO per share and
AFFO per share 94,667 94,168 92,752 94,009 91,828

Basic FFO per share $ 5.56 $ 6.00 $ 4.40 $ 22.75 $ 19.94

Diluted FFO per share $ 5.54 $ 5.97 $ 4.39 $ 22.66 $ 19.89

Basic AFFO per share $ 7.33 $ 8.24 $ 7.11 $ 32.24 $ 29.64

Diluted AFFO per share $ 7.30 $ 8.19 $ 7.09 $ 32.11 $ 29.55


-----

