Datacenter specialist Equinix (EQIX) reported earnings today, and the results were as muscular as past quarters. Comparing with guidance as discussed in my earnings preview post the other day, revenues were solid at $183.7M and EBITDA exceeded guidance at $77M. Gross margins of 62% and EPS of 0.19 were both good numbers as well. Full year projections were narrowed within the current ranges. Capex was a bit lower than expected, presumeably shifted to the fourth quarter since the annual projection was unchanged.
More importantly, economic conditions didn’t stop the company from giving 2009 revenue guidance of $870-890M, which would be some 23-26% annual growth. 2009 EBITDA guidance of $365-385M represents 28-33% growth as well. The sky may be falling over Wall Street, but none of it seems to have landed on the datacenter market. The tight credit markets don’t seem to be frightening the company away from its expansion plans, with $350M more in capex on their plate. Now that *is* down from the $450-460 in 2008, but it still represents almost $300M in expansion plans.
Equinix’s results would seem to offer comfort to other datacenter-focused stocks set to report in the next few weeks, such as Savvis (SVVS), Switch & Data (SDXC), and Internap (INAP).
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Categories: Datacenter · Financials
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Great quarter. Very predictable revenue and earnings stream if managed tightly. I don’t know that EQIX is that good of a tell for the other data center operators. EQIX has a much higher quality tenant base than the others.
Better yet is to look at the port growth last qtr.
EQIX had a surprisingly high # of 10GigE ports additions which translates to very strong IP data demand… which should bode well for pipe providers like lvlt.