Equinix revenue growth continues, announces further expansion plans
Thu 2 Nov 2017
Equinix revenues grew by 25% in the most recent quarter, following a period of aggressive expansion and acquisitions.
Alongside the financial results, it announced 13 new expansion projects across the world, costing the firm $615 million (approx. £464 million). These projects will be taking place in America, Europe, Asia and Australia, with three new projects in Frankfurt alone.
Equinix told The Stack that these projects are all additions to existing sites, with data provided by the firm showing that these additional phases will give the company the equivalent of approximately 13,000 extra sellable cabinet spaces, with nearly 3000 of these being in its SG3 site in Singapore.
The data centre and interconnection firm’s third quarter earnings results reveal the extent to which its global expansion efforts have paid dividends.
This quarter, the California based company took in $1.1 billion in revenue – marking its 59th consecutive quarter of revenue growth. That amounts to a growth of 25% compared to the same period last year, and 8% on the previous quarter.
That revenue converted to $225 million of operating income and $80 million in net income from continuing operations.
Though the company saw growth in all aspects of its business, it made particular progress in enterprise business and finance markets. It has recently done business with a plethora of major firms such as Alibaba, Baidu, Netflix, Oracle and Tencent.
Recent acquisition and expansion moves include its foray into Iberia, through the purchase of Itconic, giving Equinix five new data centres in Spain and Portugal. It also made a strategic purchase of a Zenium facility in Istanbul, placing it in a good position for further expansion into both Europe and Asia.
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Read more: Equinix continues expansion with announcement of site in D.C.
Equinix CEO and president, Steve Smith, said: “Equinix had a strong third quarter as customers continue to adopt interconnection oriented architectures as the preferred platform for their shift to digital.
“Robust demand is driving higher utilization levels, and we are investing in support of this momentum with expansions, both organically and through strategic acquisitions, to deliver even greater value to customers through our global platform.”
Smith also commented on the increasing demand for interconnection services as hybrid and multi-cloud environments grow in popularity, noting that Equinix has solidified its position as an interconnection provider. The firm recently partnered with both Oracle and Google on interconnection deals.
Looking forward, Equinix expects growth of 3% in the next quarter, forecasting revenue between $1.187 and $1.195 billion. For the full year, it expects revenue between $4.355 and $4.363 billion, which would amount to an increase of 21% year over year.