Equinix, Inc. (NASDAQ: EQIX) has reported its fourth-quarter and full-year 2023 results, demonstrating strong performance and robust growth in its digital infrastructure business. The company achieved over $8 billion in revenue in 2023, marking 21 consecutive quarters of revenue growth.
In 2023, Equinix's annual revenues increased by 13% year-over-year on an as-reported basis and 15% on a normalized and constant currency basis, reaching $8.2 billion. The company closed nearly 17,000 deals across more than 5,900 customers during the year. Notably, Equinix recorded 90 megawatts of xscale® leasing, driven by increased hyperscale demand to support artificial intelligence (AI) and cloud deployments.
Charles Meyers, CEO and President of Equinix, commented on the company's performance, saying, "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."
Looking ahead, the company provided its 2024 annual guidance, expecting revenues to range between $8.793 billion and $8.893 billion, representing 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.
Equinix's industry-leading global interconnection franchise continued to perform well, with over 462,000 total interconnections deployed on its platform. The company added four new native cloud on-ramps in Bogotá, Calgary, and Zurich, further strengthening its cloud ecosystem.
In terms of sustainability efforts, Equinix has made significant progress in advancing its "future first" sustainability strategy. The company announced the full allocation of proceeds from $4.9 billion in investment-grade green bonds to advance toward its near-term science-based target to become climate neutral by 2030.
The company's full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $5,072 | $5,562 | $5,999 | $6,636 | $7,263 | $7,948 |
| Revenue Growth | n/a | 9.67% | 7.85% | 10.62% | 9.46% | 9.44% |
| Operating Margins | 19% | 21% | 18% | 17% | 17% | 17% |
| Net Margins | 7% | 9% | 6% | 8% | 10% | 11% |
| Net Income (MM) | $365 | $507 | $370 | $500 | $704 | $870 |
| Net Interest Expense (MM) | $521 | $480 | $406 | $336 | $356 | $393 |
| Depreciation & Amort. (MM) | $1,024 | $1,089 | $1,224 | $1,451 | $1,531 | $1,610 |
| Earnings Per Share | $4.56 | $5.99 | $4.18 | $5.53 | $7.67 | $9.29 |
| EPS Growth | n/a | 31.36% | -30.22% | 32.3% | 38.7% | 21.12% |
| Diluted Shares (MM) | 80 | 85 | 88 | 90 | 92 | 94 |
| Free Cash Flow (MM) | -$281 | -$87 | $27 | -$204 | $685 | $365 |
| Capital Expenditures (MM) | $2,096 | $2,080 | $2,283 | $2,752 | $2,278 | $2,613 |
| Current Ratio | 1.0 | 1.33 | 1.29 | 1.84 | 1.8 | 2.05 |
| Total Debt (MM) | $9,891 | $10,401 | $10,634 | $11,722 | $12,881 | $13,703 |
| Net Debt / EBITDA | 4.64 | 3.78 | 3.96 | 3.98 | 4.02 | 3.8 |
Equinix has rapidly growing revenues and increasing reinvestment in the business and an excellent current ratio of 2.05. Additionally, the company's financial statements display a strong EPS growth trend and positive cash flows. However, the firm suffers from weak operating margins with a stable trend and a highly leveraged balance sheet.
