Equinix registers revenue rise in Q2 2020 on the back of solid interconnection growth and activity
Interconnection revenues in the second quarter grew 14% year-over-year, or 16% on a normalized and constant currency basis, steadily rising over the last few quarters.
- Global interconnection and data center company Equinix Inc (NASDAQ:EQIX) has published its financial report for the second quarter of 2020, with the results supported by robust interconnection growth.
Revenues for the quarter to June 30, 2020 amounted to $1.470 billion, a 2% increase over the previous quarter, and up from $1.380 billion a year earlier.
Interconnection revenues in the second quarter of 2020 grew 14% year-over-year, or 16% on a normalized and constant currency basis, steadily rising over the last few quarters, reflecting the demand across the Equinix portfolio for interconnection products. Today, Equinix’s global interconnection platform comprises over 378,000 physical and virtual interconnections. In the second quarter of 2020, Equinix added an incremental 8,000 interconnections, fueled by streaming, video conferencing, enterprise cloud connectivity and work-from-home local aggregation.
Operating income for the second quarter of 2020 amounted to $282 million, an 11% increase over the previous quarter.
Adjusted EBITDA totalled $720 million. This result includes a $1 million foreign currency benefit when compared to prior guidance rates.
Net income was $133 million, a 12% increase over the previous quarter ($118.8m) but down from $143.5 million a year earlier.
For the third quarter of 2020, the company expects revenues to range between $1.493 and $1.513 billion, an increase of 2 – 3% quarter-over-quarter, or a normalized and constant currency increase of approximately 1 – 3%. This guidance includes a $5 million foreign currency benefit when compared to the averageFX rates in Q2 2020. Adjusted EBITDA is expected to range between $696 and $716 million, including a $3 million foreign currency benefit when compared to the average FX rates in Q2 2020 and $5 million of integration costs from acquisitions. Recurring capital expenditures are expected to range between $36 and $46 million.
For the full year of 2020, total revenues are expected to range between $5.919 and $5.989 billion, a 6 – 8% increase over the previous year, or a normalized and constant currency increase of approximately 8 – 9%. This $23 million guidance raise is due to a foreign currency benefit when compared to the prior guidance FX rates. Adjusted EBITDA is expected to range between $2.781 and $2.851 billion, an adjusted EBITDA margin of 47% at the mid-point. This $11 million guidance raise is due to a foreign currency benefit when compared to the prior guidance FX rates.
