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Colocation giants report record revenues

Written by Fri 6 May 2022

Equinix, Digital Realty and Iron Mountain have all released financial reports with record revenues, even in the face of supply chain shortages, inflation, and rising energy costs.

Iron Mountain earnings were 2.7% higher than previous estimations, with earnings per share (EPS) of $0.38. Revenue was more than $166 million USD higher than Q1 2021.

Barry Hytinen, CFO of Iron Mountain, said on the company’s earnings report call that rising inflation is actually a benefit to their business. “Inflation is really hurting all of us in different ways. For the business, it’s actually a net positive because we are able to price ahead of inflation and we have a high gross margin business, so it naturally expands the margins of the business.”

William Meaney, President and CEO of Iron Mountain noted that the company achieved record quarterly revenue of $1.25 billion USD, “exceeding our expectations of $1.2 billion (and) yielding 10% total organic revenue growth and an all-time record EBITDA fo $431 million.”

“We continue to be encouraged by the increased demand for our services across key markets fueling these results.”

Iron Mountain credits these record results to “double-digit growth in digital offerings, including data centre, GDS, digital transformation services and ALM (or asset lifecycle management.)”

In their earnings call, CEO Charles Meyers noted that Equinix revenues were up $1.7 billion USD, more than 10% higher than Q1 2021. He continued, “Growth continues to outpace our Analyst Day expectations, thanks to strength across multiple simultaneous growth vectors for the business, expanding geographic reach, accelerating adoption of digital services, low churn, positive pricing trends and strong channel execution.”

Digital Realty revenues were up 4% at $1.1 billion USD for the quarter, which the company noted marked a record in terms of bookings. “We continue to globalize our business with the announcement of our definitive agreement to acquire a majority stake in Teraco in early January,” said CEO and Director Bill Stein. “We also continue to grow our business organically around the world. We posted another record quarter of global bookings totaling $167 million of annualized rent, including our second-highest quarter in each of the Americas and Asia Pacific regions, together with another solid quarter in EMEA.”

Written by Fri 6 May 2022

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