Equinix Reports Second-Quarter 2023 Results

REDWOOD CITY, Calif., Aug. 2, 2023 /PRNewswire/ —

• Quarterly revenues increased 11% over the same quarter last year, to $2.0 billion, or 14% on a normalized and constant currency basis
• Solid gross and net bookings resulted in more than 4,100 deals across more than 3,100 customers
• Channel bookings accounted for 40% of total bookings and nearly 60% of new logos

Revenues

• With customers deployed in all three regions representing approximately two-thirds of recurring revenues, Equinix continues to invest behind the scale and reach of its data center services portfolio. The company currently has 53 major projects underway across 40 metros in 24 countries, including 11 xScale builds that are expected to deliver approximately 90 megawatts of capacity once opened.
• In Q2, Equinix added 12 new projects including new International Business Exchange™ (IBX^®) data center builds in Lisbon, Monterrey and Mumbai—in addition to the company’s first build in Kuala Lumpur, one of the most strategic markets in Asia.
• Equinix was selected to build incremental data center capacity in Singapore in response to the Singapore Government’s Data Center Call for Application process. This build will help to strengthen the country’s digital capabilities as well as support Singapore’s Green Plan and digital economy.
• Equinix’s Channel program delivered another strong quarter, accounting for 40% of bookings and nearly 60% of new logos. It continues to see growth from partners like Accenture, Avant, Cisco, Dell and HPE, with wins across a wide range of industry verticals and digital first use cases.   
• In June, Equinix announced an expanded relationship with Hewlett Packard Enterprise for pre-provisioned HPE GreenLake for Private Cloud Enterprise and HPE GreenLake for Private Cloud Business Edition on demand at select Equinix IBX data centers in seven metros around the globe.
• Equinix’s global interconnection franchise continues to perform with over 456,000 total interconnections. In Q2, interconnection revenues stepped up 10% year over year as reported or 11% year over year on a normalized and constant currency basis, driven by strong gross adds, increasing traffic levels and healthy pricing.
• Equinix Fabric^® saw total virtual connections surpassing 50,000 in the quarter for the first time, as it continues to add new capabilities to support larger workloads, like data-intensive AI training models and scalable enterprise networks. Beginning in the third quarter, Equinix Fabric customers will be able to provision virtual connections to cloud providers with bandwidths of up to 50 gigabits per second, with Google Cloud as the first cloud provider to support this capability. 
• In Q2, Equinix won three new native cloud on-ramps in Bogotá, Madrid and Toronto, further strengthening its cloud ecosystem, which represents nearly 15% of total interconnections on its platform.
• Internet Exchange saw strength in Q2 in Equinix’s EMEA and APAC markets with peak traffic up 4% quarter over quarter and 25% year over year, to nearly 32 terabits per second.  

1 IDC Blog: “Leadership in a Changing Digital World: Five Mandates,” April 2023.

Business Outlook

For the third quarter of 2023, the Company expects revenues to range between $2.039 and $2.069 billion, an increase of approximately 1 – 3% over the previous quarter, on both an as-reported and normalized and constant currency basis. This guidance includes a $4 million negative foreign currency impact when compared to the average FX rates in Q2 2023. Adjusted EBITDA is expected to range between $908 and $938 million. This guidance includes a $3 million negative foreign currency impact when compared to the average FX rates in Q2 2023 and $7 million of integration costs from acquisitions. Recurring capital expenditures are expected to range between $58 and $68 million.

For the full year of 2023, total revenues are expected to range between $8.171 and $8.251 billion, a 12 – 14% increase over the previous year, or a normalized and constant currency increase of 14 – 15%. This updated guidance maintains prior full year revenue guidance, offset by a $14 million negative foreign currency impact when compared to the prior guidance rates. Adjusted EBITDA is expected to range between $3.660 and $3.720 billion, an adjusted EBITDA margin of 45%. This updated guidance includes an underlying raise of $20 million from better-than-expected operating performance and lower integration costs, partially offset by a $5 million negative foreign currency impact when compared to prior guidance rates. AFFO is expected to range between $2.963 and $3.023 billion, an increase of 9 – 11% over the previous year, or a normalized and constant currency increase of 11 – 14%. This updated guidance includes an underlying raise of $28 million from better-than-expected business performance and lower integration costs, partially offset by a $2 million negative foreign currency impact when compared to prior guidance rates. AFFO per share is expected to range between $31.51 and $32.15, an increase of 7 – 9% over the previous year, or a normalized and constant currency increase of 9 – 11%. Total capital expenditures are expected to range between $2.675 and $2.925 billion. Non-recurring capital expenditures, including xScale-related capital expenditures, are expected to range between $2.467 and $2.697 billion, and recurring capital expenditures are expected to range between $208 and $228 million. xScale-related on-balance sheet capital expenditures are expected to range between $96 and $146 million, which we anticipate will be reimbursed to Equinix from both the current and future xScale JVs.

The U.S. dollar exchange rates used for 2023 guidance, taking into consideration the impact of our current foreign currency hedges, have been updated to $1.09 to the Euro, $1.19 to the Pound, S$1.35 to the U.S. Dollar, ¥144 to the U.S. Dollar, A$1.50 to the U.S. Dollar, HK$7.84 to the U.S. Dollar, R$4.79 to the U.S. Dollar and C$1.32 to the U.S. Dollar. The Q2 2023 global revenue breakdown by currency for the Euro, British Pound, Singapore Dollar, Japanese Yen, Australian Dollar, Hong Kong Dollar, Brazilian Real and Canadian Dollar is 20%, 10%, 8%, 6%, 4%, 3%, 3% and 3%, respectively.

The adjusted EBITDA guidance is based on the revenue guidance less our expectations of cash cost of revenues and cash operating expenses. The AFFO guidance is based on the adjusted EBITDA guidance less our expectations of net interest expense, an installation revenue adjustment, a straight-line rent expense adjustment, a contract cost adjustment, amortization of deferred financing costs and debt discounts and premiums, income tax expense, an income tax expense adjustment, recurring capital expenditures, other income (expense), (gains) losses on disposition of real estate property, and adjustments for unconsolidated joint ventures’ and non-controlling interests’ share of these items.

Q2 2023 Results Conference Call and Replay Information

Equinix will discuss its quarterly results for the period ended June 30, 2023, along with its future outlook, in its quarterly conference call on Wednesday, August 2, 2023, at 5:30 p.m. ET (2:30 p.m. PT). A simultaneous live webcast of the call will be available on the company’s Investor Relations website at www.equinix.com/investors. To hear the conference call live, please dial 1-517-308-9482 (domestic and international) and reference the passcode EQIX.

A replay of the call will be available one hour after the call through Wednesday, October 25, 2023, by dialing 1-800-839-9317 and referencing the passcode 2023. In addition, the webcast will be available at www.equinix.com/investors (no password required).

Investor Presentation and Supplemental Financial Information

Equinix has made available on its website a presentation designed to accompany the discussion of Equinix’s results and future outlook, along with certain supplemental financial information and other data. Interested parties may access this information through the Equinix Investor Relations website at www.equinix.com/investors.

Additional Resources

• Equinix Investor Relations Resources

About Equinix

Equinix (Nasdaq: EQIX) is the world’s digital infrastructure company^®. Digital leaders harness Equinix’s trusted platform to bring together and interconnect foundational infrastructure at software speed. Equinix enables organizations to access all the right places, partners and possibilities to scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value, while supporting their sustainability goals.

Non-GAAP Financial Measures

Equinix provides all information required in accordance with generally accepted accounting principles (“GAAP”), but it believes that evaluating its ongoing operating results may be difficult if limited to reviewing only GAAP financial measures. Accordingly, Equinix uses non-GAAP financial measures to evaluate its operations.

Equinix provides normalized and constant currency growth rates, which are calculated to adjust for acquisitions, dispositions, integration costs, changes in accounting principles and foreign currency.

Equinix presents adjusted EBITDA, which is a non-GAAP financial measure. Adjusted EBITDA represents net income excluding income tax expense, interest income, interest expense, other income or expense, gain or loss on debt extinguishment, depreciation, amortization, accretion, stock-based compensation expense, restructuring charges, impairment charges, transaction costs and gain or loss on asset sales.

In presenting non-GAAP financial measures, such as adjusted EBITDA, cash cost of revenues, cash gross margins, cash operating expenses (also known as cash selling, general and administrative expenses or cash SG&A), adjusted EBITDA margins, free cash flow and adjusted free cash flow, Equinix excludes certain items that it believes are not good indicators of Equinix’s current or future operating performance. These items are depreciation, amortization, accretion of asset retirement obligations and accrued restructuring charges, stock-based compensation, restructuring charges, impairment charges, transaction costs and gain or loss on asset sales. Equinix excludes these items in order for its lenders, investors and the industry analysts who review and report on Equinix to better evaluate Equinix’s operating performance and cash spending levels relative to its industry sector and competitors.

Equinix excludes depreciation expense as these charges primarily relate to the initial construction costs of a data center, and do not reflect its current or future cash spending levels to support its business. Its data centers are long-lived assets, and have an economic life greater than 10 years. The construction costs of a data center do not recur with respect to such data center, although Equinix may incur initial construction costs in future periods with respect to additional data centers, and future capital expenditures remain minor relative to the initial investment. This is a trend it expects to continue. In addition, depreciation is also based on the estimated useful lives of the data centers. These estimates could vary from actual performance of the asset, are based on historic costs incurred to build out our data centers and are not indicative of current or expected future capital expenditures. Therefore, Equinix excludes depreciation from its operating results when evaluating its operations.

In addition, in presenting the non-GAAP financial measures, Equinix also excludes amortization expense related to acquired intangible assets. Amortization expense is significantly affected by the timing and magnitude of acquisitions, and these charges may vary in amount from period to period. We exclude amortization expense to facilitate a more meaningful evaluation of our current operating performance and comparisons to our prior periods. Equinix excludes accretion expense, both as it relates to its asset retirement obligations as well as its accrued restructuring charges, as these expenses represent costs which Equinix also believes are not meaningful in evaluating Equinix’s current operations. Equinix excludes stock-based compensation expense, as it can vary significantly from period to period based on share price and the timing, size and nature of equity awards. As such, Equinix and many investors and analysts exclude stock-based compensation expense to compare its operating results with those of other companies. Equinix excludes restructuring charges from its non-GAAP financial measures. The restructuring charges relate to Equinix’s decision to exit leases for excess space adjacent to several of its IBX^® data centers, which it did not intend to build out, or its decision to reverse such restructuring charges. Equinix also excludes impairment charges generally related to certain long-lived assets. The impairment charges are related to expense recognized whenever events or changes in circumstances indicate that the carrying amount of assets are not recoverable. Equinix also excludes gain or loss on asset sales as it represents profit or loss that is not meaningful in evaluating the current or future operating performance. Finally, Equinix excludes transaction costs from its non-GAAP financial measures to allow more comparable comparisons of the financial results to the historical operations. The transaction costs relate to costs Equinix incurs in connection with business combinations and formation of joint ventures, including advisory, legal, accounting, valuation and other professional or consulting fees. Such charges generally are not relevant to assessing the long-term performance of Equinix. In addition, the frequency and amount of such charges vary significantly based on the size and timing of the transactions. Management believes items such as restructuring charges, impairment charges, transaction costs and gain or loss on asset sales are non-core transactions; however, these types of costs may occur in future periods.

Equinix also presents funds from operations (“FFO”) and adjusted funds from operations (“AFFO”), both commonly used in the REIT industry, as supplemental performance measures. Additionally, Equinix presents AFFO per share, which is also commonly used in the REIT industry. AFFO per share offers investors and industry analysts a perspective of Equinix’s underlying operating performance when compared to other REIT companies. FFO is calculated in accordance with the definition established by the National Association of Real Estate Investment Trusts (“NAREIT”). FFO represents net income or loss, excluding gain or loss from the disposition of real estate assets, depreciation and amortization on real estate assets and adjustments for unconsolidated joint ventures’ and non-controlling interests’ share of these items. AFFO represents FFO, excluding depreciation and amortization expense on non-real estate assets, accretion, stock-based compensation, stock-based charitable contributions, restructuring charges, impairment charges, transaction costs, an installation revenue adjustment, a straight-line rent expense adjustment, a contract cost adjustment, amortization of deferred financing costs and debt discounts and premiums, gain or loss on debt extinguishment, an income tax expense adjustment, recurring capital expenditures, net income or loss from discontinued operations, net of tax and adjustments from FFO to AFFO for unconsolidated joint ventures’ and non-controlling interests’ share of these items. Equinix excludes depreciation expense, amortization expense, accretion, stock-based compensation, restructuring charges, impairment charges and transaction costs for the same reasons that they are excluded from the other non-GAAP financial measures mentioned above.

Equinix includes an adjustment for revenues from installation fees, since installation fees are deferred and recognized ratably over the period of contract term, although the fees are generally paid in a lump sum upon installation. Equinix includes an adjustment for straight-line rent expense on its operating leases, since the total minimum lease payments are recognized ratably over the lease term, although the lease payments generally increase over the lease term. Equinix also includes an adjustment to contract costs incurred to obtain contracts, since contract costs are capitalized and amortized over the estimated period of benefit on a straight-line basis, although costs of obtaining contracts are generally incurred and paid during the period of obtaining the contracts. The adjustments for installation revenues, straight-line rent expense and contract costs are intended to isolate the cash activity included within the straight-lined or amortized results in the consolidated statement of operations. Equinix excludes the amortization of deferred financing costs and debt discounts and premiums as these expenses relate to the initial costs incurred in connection with its debt financings that have no current or future cash obligations. Equinix excludes gain or loss on debt extinguishment since it represents a cost that is not a good indicator of Equinix’s current or future operating performance. Equinix includes an income tax expense adjustment, which represents the non-cash tax impact due to changes in valuation allowances and uncertain tax positions that do not relate to the current period’s operations. Equinix excludes recurring capital expenditures, which represent expenditures to extend the useful life of its IBX and xScale data centers or other assets that are required to support current revenues. Equinix also excludes net income or loss from discontinued operations, net of tax, which represents results that are not a good indicator of our current or future operating performance.

Equinix presents constant currency results of operations, which is a non-GAAP financial measure and is not meant to be considered in isolation or as an alternative to GAAP results of operations. However, Equinix has presented this non-GAAP financial measure to provide investors with an additional tool to evaluate its operating results without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of Equinix’s business performance. To present this information, Equinix’s current and comparative prior period revenues and certain operating expenses from entities with functional currencies other than the U.S. dollar are converted into U.S. dollars at a consistent exchange rate for purposes of each result being compared.

Non-GAAP financial measures are not a substitute for financial information prepared in accordance with GAAP. Non-GAAP financial measures should not be considered in isolation, but should be considered together with the most directly comparable GAAP financial measures and the reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures. Equinix presents such non-GAAP financial measures to provide investors with an additional tool to evaluate its operating results in a manner that focuses on what management believes to be its core, ongoing business operations. Management believes that the inclusion of these non-GAAP financial measures provides consistency and comparability with past reports and provides a better understanding of the overall performance of the business and its ability to perform in subsequent periods. Equinix believes that if it did not provide such non-GAAP financial information, investors would not have all the necessary data to analyze Equinix effectively.

Investors should note that the non-GAAP financial measures used by Equinix may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as those of other companies. Investors should, therefore, exercise caution when comparing non-GAAP financial measures used by us to similarly titled non-GAAP financial measures of other companies. Equinix does not provide forward-looking guidance for certain financial data, such as depreciation, amortization, accretion, stock-based compensation, net income or loss from operations, cash generated from operating activities and cash used in investing activities, and as a result, is not able to provide a reconciliation of GAAP to non-GAAP financial measures for forward-looking data without unreasonable effort. The impact of such adjustments could be significant. Equinix intends to calculate the various non-GAAP financial measures in future periods consistent with how they were calculated for the periods presented within this press release.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, risks to our business and operating results related to the current inflationary environment; foreign currency exchange rate fluctuations; increased costs to procure power and the general volatility in the global energy market; the challenges of acquiring, operating and constructing IBX and xScale data centers and developing, deploying and delivering Equinix products and solutions; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenues from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; risks related to our taxation as a REIT and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent and upcoming Equinix quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.

 

EQUINIX, INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
	Three Months Ended						Six Months Ended
	June 30, 2023		March 31, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Recurring revenues	$ 1,917,570		nbsp;  1,890,080		$ 1,707,451		$ 3,807,650		$ 3,349,775
Non-recurring revenues	100,838		108,129		109,703		208,967		201,826
Revenues	2,018,408		1,998,209		1,817,154		4,016,617		3,551,601
Cost of revenues	1,060,800		1,006,091		930,257		2,066,891		1,846,132
Gross profit	957,608		992,118		886,897		1,949,726		1,705,469
Operating expenses:
Sales and marketing	215,016		210,671		193,727		425,687		386,238
General and administrative	406,429		394,874		370,348		801,303		723,035
Transaction costs	5,718		1,600		5,063		7,318		9,303
Gain (loss) on sale of asset	(1,941)		852		(94)		(1,089)		1,724
Total operating expenses	625,222		607,997		569,044		1,233,219		1,120,300
Income from operations	332,386		384,121		317,853		716,507		585,169
Interest and other income (expense):
Interest income	23,503		19,388		4,508		42,891		6,614
Interest expense	(99,973)		(97,481)		(90,826)		(197,454)		(170,791)
Other income (expense)	(11,518)		7,503		(6,238)		(4,015)		(15,787)
Gain (loss) on debt extinguishment	—		254		(420)		254		109
Total interest and other, net	(87,988)		(70,336)		(92,976)		(158,324)		(179,855)
Income before income taxes	244,398		313,785		224,877		558,183		405,314
Income tax expense	(37,385)		(55,055)		(8,635)		(92,440)		(41,379)
Net income	207,013		258,730		216,242		465,743		363,935
Net (income) loss attributable to non-controlling interests	17		56		80		73		(160)
Net income attributable to Equinix	nbsp;    207,030		nbsp;     258,786		nbsp;    216,322		nbsp;    465,816		nbsp;    363,775
Net income per share attributable to Equinix:
Basic net income per share	nbsp;          2.21		nbsp;            2.78		nbsp;          2.38		nbsp;          5.00		nbsp;          4.00
Diluted net income per share	nbsp;          2.21		nbsp;            2.77		nbsp;          2.37		nbsp;          4.98		nbsp;          3.99
Shares used in computing basic net income per share	93,535		92,971		91,036		93,253		90,904
Shares used in computing diluted net income per share	93,857		93,340		91,262		93,599		91,213

 

EQUINIX, INC.
Condensed Consolidated Statements of Comprehensive Income
(in thousands)
(unaudited)
	Three Months Ended						Six Months Ended
	June 30, 2023		March 31, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Net income	nbsp;    207,013		nbsp;    258,730		nbsp;    216,242		nbsp;    465,743		nbsp;    363,935
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment (“CTA”) income (loss)	25,923		157,214		(740,428)		183,137		(862,962)
Net investment hedge CTA gain (loss)	(24,186)		(39,960)		353,953		(64,146)		445,311
Unrealized gain (loss) on cash flow hedges	(4,792)		(12,881)		20,617		(17,673)		84,654
Net actuarial loss on defined benefit plans	(116)		(115)		(19)		(231)		(40)
Total other comprehensive income (loss), net of tax	(3,171)		104,258		(365,877)		101,087		(333,037)
Comprehensive income (loss), net of tax	203,842		362,988		(149,635)		566,830		30,898
Net (income) loss attributable to non-controlling interests	17		56		80		73		(160)
Other comprehensive (income) loss attributable to non-controlling interests	(97)		—		35		(97)		32
Comprehensive income (loss) attributable to Equinix	nbsp;    203,762		nbsp;    363,044		nbsp;  (149,520)		nbsp;    566,806		nbsp;      30,770

 

EQUINIX, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
	June 30, 2023		December 31, 2022
Assets
Cash and cash equivalents	nbsp;                 2,342,177		nbsp;             1,906,421
Accounts receivable, net	1,006,116		855,380
Other current assets	395,723		459,138
Assets held for sale	—		84,316
Total current assets	3,744,016		3,305,255
Property, plant and equipment, net	17,267,282		16,649,534
Operating lease right-of-use assets	1,529,064		1,427,950
Goodwill	5,732,010		5,654,217
Intangible assets, net	1,807,485		1,897,649
Other assets	1,487,088		1,376,137
Total assets	nbsp;               31,566,945		nbsp;           30,310,742
Liabilities, Redeemable Non-Controlling Interest and Stockholders’ Equity
Accounts payable and accrued expenses	nbsp;                 1,023,031		nbsp;             1,004,800
Accrued property, plant and equipment	316,090		281,347
Current portion of operating lease liabilities	139,661		139,538
Current portion of finance lease liabilities	151,554		151,420
Current portion of mortgage and loans payable	8,419		9,847
Other current liabilities	215,473		251,346
Total current liabilities	1,854,228		1,838,298
Operating lease liabilities, less current portion	1,403,269		1,272,812
Finance lease liabilities, less current portion	2,136,159		2,143,690
Mortgage and loans payable, less current portion	665,916		642,708
Senior notes, less current portion	12,672,826		12,109,539
Other liabilities	785,547		797,863
Total liabilities	19,517,945		18,804,910
Redeemable non-controlling interest	25,000		—
Equinix stockholders’ equity:
Common stock	94		93
Additional paid-in capital	17,909,043		17,320,017
Treasury stock	(63,973)		(71,966)
Accumulated dividends	(7,963,253)		(7,317,570)
Accumulated other comprehensive loss	(1,288,456)		(1,389,446)
Retained earnings	3,430,654		2,964,838
Total Equinix stockholders’ equity	12,024,109		11,505,966
Non-controlling interests	(109)		(134)
Total stockholders’ equity	12,024,000		11,505,832
Total liabilities, redeemable non-controlling interest and stockholders’ equity	nbsp;               31,566,945		nbsp;           30,310,742
Ending headcount by geographic region is as follows:
Americas headcount	5,774		5,493
EMEA headcount	4,081		3,936
Asia-Pacific headcount	2,766		2,668
Total headcount	12,621		12,097

 

EQUINIX, INC.
Summary of Debt Principal Outstanding
(in thousands)
(unaudited)
	June 30, 2023		December 31, 2022
Finance lease liabilities	nbsp;                2,287,713		nbsp;                2,295,110
Term loans	642,275		618,028
Mortgage payable and other loans payable	32,060		34,527
Plus: debt discount and issuance costs, net	878		1,062
Total loans payable principal	675,213		653,617
Senior notes	12,672,826		12,109,539
Plus: debt discount and issuance costs	113,449		117,351
Total senior notes principal	12,786,275		12,226,890
Total debt principal outstanding	nbsp;             15,749,201		nbsp;             15,175,617

 

EQUINIX, INC. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited)
		Three Months Ended						Six Months Ended
		June 30, 2023		March 31, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Cash flows from operating activities:
	Net income	nbsp;   207,013		nbsp;   258,730		nbsp;   216,242		nbsp;   465,743		nbsp;   363,935
	Adjustments to reconcile net income to net cash provided by operating activities:
	Depreciation, amortization and accretion	459,746		454,939		432,828		914,685		869,214
	Stock-based compensation	104,546		98,715		104,682		203,261		194,634
	Amortization of debt issuance costs and debt discounts	4,653		4,590		4,536		9,243		8,740
	(Gain) loss on debt extinguishment	—		(254)		420		(254)		(109)
	(Gain) loss on asset sales	(1,941)		852		(94)		(1,089)		1,724
	Other items	20,465		9,001		5,832		29,466		11,882
	Changes in operating assets and liabilities:
	Accounts receivable	(99,164)		(53,392)		(26,302)		(152,556)		(127,029)
	Income taxes, net	2,954		4,991		(33,663)		7,945		(19,782)
	Accounts payable and accrued expenses	88,632		(72,765)		55,128		15,867		(20,852)
	Operating lease right-of-use assets	42,337		34,766		38,839		77,103		74,239
	Operating lease liabilities	(31,723)		(33,587)		(34,632)		(65,310)		(66,372)
	Other assets and liabilities	(56,220)		(15,178)		37,765		(71,398)		92,480
Net cash provided by operating activities		741,298		691,408		801,581		1,432,706		1,382,704
Cash flows from investing activities:
	Purchases, sales and maturities of investments, net	(30,290)		(24,393)		(26,391)		(54,683)		(64,949)
	Business acquisitions, net of cash and restricted cash acquired	—		—		(883,668)		—		(883,668)
	Real estate acquisitions	—		(40,397)		(30,257)		(40,397)		(33,331)
	Purchases of other property, plant and equipment	(638,159)		(529,600)		(484,830)		(1,167,759)		(897,348)
	Proceeds from asset sales	—		72,254		56,024		72,254		251,415
Net cash used in investing activities		(668,449)		(522,136)		(1,369,122)		(1,190,585)		(1,627,881)
Cash flows from financing activities:
	Proceeds from employee equity programs	—		44,543		—		44,543		43,876
	Proceeds from redeemable non-controlling interest	25,000		—		—		25,000		—
	Payment of dividend distributions	(320,243)		(326,162)		(283,048)		(646,405)		(572,717)
	Proceeds from public offering of common stock, net of offering costs	—		300,775		—		300,775		—
	Proceeds from mortgage and loans payable	—		—		—		—		676,850
	Proceeds from senior notes, net of debt discounts	—		565,239		1,193,688		565,239		1,193,688
	Repayment of finance lease liabilities	(30,964)		(35,498)		(28,783)		(66,462)		(69,556)
	Repayment of mortgage and loans payable	(1,020)		(2,403)		(9,199)		(3,423)		(561,032)
	Debt issuance costs	—		(4,257)		(10,365)		(4,257)		(17,731)
Net cash provided by (used in) financing activities		(327,227)		542,237		862,293		215,010		693,378
Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash		(46,681)		23,883		(101,129)		(22,798)		(96,536)
Net increase (decrease) in cash, cash equivalents, and restricted cash		(301,059)		735,392		193,623		434,333		351,665
Cash, cash equivalents and restricted cash at beginning of period		2,643,640		1,908,248		1,707,496		1,908,248		1,549,454
Cash, cash equivalents and restricted cash at end of period		$ 2,342,581		$ 2,643,640		$ 1,901,119		$ 2,342,581		$ 1,901,119
Supplemental cash flow information:
Cash paid for taxes		nbsp;     35,345		nbsp;     48,960		nbsp;     53,609		nbsp;     84,305		nbsp;     73,759
Cash paid for interest		nbsp;   134,176		nbsp;   103,904		nbsp;   106,249		nbsp;   238,080		nbsp;   210,300
Free cash flow (negative free cash flow) (1)		nbsp;   103,139		nbsp;   193,665		nbsp; (541,150)		nbsp;   296,804		nbsp; (180,228)
Adjusted free cash flow (2)		nbsp;   103,139		nbsp;   234,062		nbsp;   372,775		nbsp;   337,201		nbsp;   736,771
(1)	We define free cash flow (negative free cash flow) as net cash provided by operating activities plus net cash used in investing activities (excluding the net purchases, sales and maturities of investments) as presented below:
	Net cash provided by operating activities as presented above	nbsp;   741,298		nbsp;   691,408		nbsp;   801,581		$ 1,432,706		$ 1,382,704
	Net cash used in investing activities as presented above	(668,449)		(522,136)		(1,369,122)		(1,190,585)		(1,627,881)
	Purchases, sales and maturities of investments, net	30,290		24,393		26,391		54,683		64,949
	Free cash flow (negative free cash flow)	nbsp;   103,139		nbsp;   193,665		nbsp; (541,150)		nbsp;   296,804		nbsp; (180,228)
(2)	We define adjusted free cash flow as free cash flow (negative free cash flow) as defined above, excluding any real estate and business acquisitions, net of cash and restricted cash acquired as presented below:
	Free cash flow (negative free cash flow) as defined above	nbsp;   103,139		nbsp;   193,665		nbsp; (541,150)		nbsp;   296,804		nbsp; (180,228)
	Less business acquisitions, net of cash and restricted cash acquired	—		—		883,668		—		883,668
	Less real estate acquisitions	—		40,397		30,257		40,397		33,331
	Adjusted free cash flow	nbsp;   103,139		nbsp;   234,062		nbsp;   372,775		nbsp;   337,201		nbsp;   736,771

 

EQUINIX, INC.
Non-GAAP Measures and Other Supplemental Data
(in thousands)
(unaudited)
		Three Months Ended						Six Months Ended
		June 30, 2023		March 31, 2023		June 30, 2022		June 30, 2023		June 30, 2022
	Recurring revenues	nbsp; 1,917,570		nbsp; 1,890,080		nbsp; 1,707,451		nbsp; 3,807,650		nbsp; 3,349,775
	Non-recurring revenues	100,838		108,129		109,703		208,967		201,826
	Revenues (1)	2,018,408		1,998,209		1,817,154		4,016,617		3,551,601
	Cash cost of revenues (2)	720,796		665,978		599,368		1,386,774		1,183,071
	Cash gross profit (3)	1,297,612		1,332,231		1,217,786		2,629,843		2,368,530
	Cash operating expenses (4)(7):
	Cash sales and marketing expenses (5)	141,241		140,310		120,739		281,551		245,445
	Cash general and administrative expenses (6)	255,201		247,638		236,715		502,839		463,041
	Total cash operating expenses (4)(7)	396,442		387,948		357,454		784,390		708,486
	Adjusted EBITDA (8)	nbsp;    901,170		nbsp;    944,283		nbsp;    860,332		nbsp; 1,845,453		nbsp; 1,660,044
	Cash gross margins (9)	64 %		67 %		67 %		65 %		67 %
	Adjusted EBITDA margins(10)	45 %		47 %		47 %		46 %		47 %
	Adjusted EBITDA flow-through rate (11)	(213) %		83 %		73 %		45 %		51 %
	FFO (12)	nbsp;    495,240		nbsp;    548,152		nbsp;    498,349		nbsp; 1,043,392		nbsp;    930,993
	AFFO (13)(14)	nbsp;    754,262		nbsp;    801,793		nbsp;    691,392		nbsp; 1,556,055		nbsp; 1,344,024
	Basic FFO per share (15)	nbsp;           5.29		nbsp;           5.90		nbsp;           5.47		nbsp;         11.19		nbsp;         10.24
	Diluted FFO per share (15)	nbsp;           5.28		nbsp;           5.87		nbsp;           5.46		nbsp;         11.15		nbsp;         10.21
	Basic AFFO per share (15)	nbsp;           8.06		nbsp;           8.62		nbsp;           7.59		nbsp;         16.69		nbsp;         14.79
	Diluted AFFO per share (15)	nbsp;           8.04		nbsp;           8.59		nbsp;           7.58		nbsp;         16.62		nbsp;         14.74
(1)	The geographic split of our revenues on a services basis is presented below:
	Americas Revenues:
	Colocation	nbsp;    583,568		nbsp;    574,098		nbsp;    541,988		nbsp; 1,157,666		nbsp; 1,064,159
	Interconnection	204,266		198,639		187,491		402,905		368,594
	Managed infrastructure	60,539		60,860		55,329		121,399		104,551
	Other	5,086		4,872		5,581		9,958		10,715
	Recurring revenues	853,459		838,469		790,389		1,691,928		1,548,019
	Non-recurring revenues	36,254		43,906		40,475		80,160		83,266
	Revenues	nbsp;    889,713		nbsp;    882,375		nbsp;    830,864		nbsp; 1,772,088		nbsp; 1,631,285
	EMEA Revenues:
	Colocation	nbsp;    517,366		nbsp;    515,611		nbsp;    433,339		nbsp; 1,032,977		nbsp;    847,908
	Interconnection	76,317		72,606		66,845		148,923		134,985
	Managed infrastructure	32,891		31,424		30,447		64,315		61,437
	Other	26,292		25,200		22,048		51,492		28,462
	Recurring revenues	652,866		644,841		552,679		1,297,707		1,072,792
	Non-recurring revenues	33,891		46,376		46,522		80,267		76,889
	Revenues	nbsp;    686,757		nbsp;    691,217		nbsp;    599,201		nbsp; 1,377,974		nbsp; 1,149,681
	Asia-Pacific Revenues:
	Colocation	nbsp;    323,116		nbsp;    318,705		nbsp;    281,635		nbsp;    641,821		nbsp;    564,250
	Interconnection	66,455		65,562		60,841		132,017		120,828
	Managed infrastructure	18,195		18,963		19,916		37,158		40,558
	Other	3,479		3,540		1,991		7,019		3,328
	Recurring revenues	411,245		406,770		364,383		818,015		728,964
	Non-recurring revenues	30,693		17,847		22,706		48,540		41,671
	Revenues	nbsp;    441,938		nbsp;    424,617		nbsp;    387,089		nbsp;    866,555		nbsp;    770,635
	Worldwide Revenues:
	Colocation	nbsp; 1,424,050		nbsp; 1,408,414		nbsp; 1,256,962		nbsp; 2,832,464		nbsp; 2,476,317
	Interconnection	347,038		336,807		315,177		683,845		624,407
	Managed infrastructure	111,625		111,247		105,692		222,872		206,546
	Other	34,857		33,612		29,620		68,469		42,505
	Recurring revenues	1,917,570		1,890,080		1,707,451		3,807,650		3,349,775
	Non-recurring revenues	100,838		108,129		109,703		208,967		201,826
	Revenues	nbsp; 2,018,408		nbsp; 1,998,209		nbsp; 1,817,154		nbsp; 4,016,617		nbsp; 3,551,601
(2)	We define cash cost of revenues as cost of revenues less depreciation, amortization, accretion and stock-based compensation as presented below:
	Cost of revenues	nbsp; 1,060,800		nbsp; 1,006,091		nbsp;    930,257		nbsp; 2,066,891		nbsp; 1,846,132
	Depreciation, amortization and accretion expense	(327,605)		(328,790)		(319,011)		(656,395)		(640,740)
	Stock-based compensation expense	(12,399)		(11,323)		(11,878)		(23,722)		(22,321)
	Cash cost of revenues	nbsp;    720,796		nbsp;    665,978		nbsp;    599,368		nbsp; 1,386,774		nbsp; 1,183,071
	The geographic split of our cash cost of revenues is presented below:
	Americas cash cost of revenues	nbsp;    266,682		nbsp;    245,407		nbsp;    243,636		nbsp;    512,089		nbsp;    483,039
	EMEA cash cost of revenues	297,684		271,179		215,983		568,863		418,831
	Asia-Pacific cash cost of revenues	156,430		149,392		139,749		305,822		281,201
	Cash cost of revenues	nbsp;    720,796		nbsp;    665,978		nbsp;    599,368		nbsp; 1,386,774		nbsp; 1,183,071
(3)	We define cash gross profit as revenues less cash cost of revenues (as defined above).
(4)	We define cash operating expense as selling, general, and administrative expense less depreciation, amortization, and stock-based compensation. We also refer to cash operating expense as cash selling, general and administrative expense or “cash SG&A”.
	Selling, general, and administrative expense	nbsp;    621,445		nbsp;    605,545		nbsp;    564,075		nbsp; 1,226,990		nbsp; 1,109,273
	Depreciation and amortization expense	(132,856)		(130,205)		(113,817)		(263,061)		(228,474)
	Stock-based compensation expense	(92,147)		(87,392)		(92,804)		(179,539)		(172,313)
	Cash operating expense	nbsp;    396,442		nbsp;    387,948		nbsp;    357,454		nbsp;    784,390		nbsp;    708,486
(5)	We define cash sales and marketing expense as sales and marketing expense less depreciation, amortization and stock-based compensation as presented below:
	Sales and marketing expense	nbsp;    215,016		nbsp;    210,671		nbsp;    193,727		nbsp;    425,687		nbsp;    386,238
	Depreciation and amortization expense	(51,221)		(50,856)		(49,817)		(102,077)		(97,438)
	Stock-based compensation expense	(22,554)		(19,505)		(23,171)		(42,059)		(43,355)
	Cash sales and marketing expense	nbsp;    141,241		nbsp;    140,310		nbsp;    120,739		nbsp;    281,551		nbsp;    245,445
(6)	We define cash general and administrative expense as general and administrative expense less depreciation, amortization and stock-based compensation as presented below:
	General and administrative expense	nbsp;    406,429		nbsp;    394,874		nbsp;    370,348		nbsp;    801,303		nbsp;    723,035
	Depreciation and amortization expense	(81,635)		(79,349)		(64,000)		(160,984)		(131,036)
	Stock-based compensation expense	(69,593)		(67,887)		(69,633)		(137,480)		(128,958)
	Cash general and administrative expense	nbsp;    255,201		nbsp;    247,638		nbsp;    236,715		nbsp;    502,839		nbsp;    463,041
(7)	The geographic split of our cash operating expense, or cash SG&A, as defined above, is presented below:
	Americas cash SG&A	nbsp;    230,284		nbsp;    231,881		nbsp;    211,004		nbsp;    462,165		nbsp;    415,467
	EMEA cash SG&A	94,258		93,525		87,836		187,783		175,123
	Asia-Pacific cash SG&A	71,900		62,542		58,614		134,442		117,896
	Cash SG&A	nbsp;    396,442		nbsp;    387,948		nbsp;    357,454		nbsp;    784,390		nbsp;    708,486
(8)	We define adjusted EBITDA as net income excluding income tax expense, interest income, interest expense, other income or expense, loss or gain on debt extinguishment, depreciation, amortization, accretion, stock-based compensation expense, restructuring charges, impairment charges, transaction costs, and gain or loss on asset sales as presented below:
	Net income	nbsp;    207,013		nbsp;    258,730		nbsp;    216,242		nbsp;    465,743		nbsp;    363,935
	Income tax expense	37,385		55,055		8,635		92,440		41,379
	Interest income	(23,503)		(19,388)		(4,508)		(42,891)		(6,614)
	Interest expense	99,973		97,481		90,826		197,454		170,791
	Other expense (income)	11,518		(7,503)		6,238		4,015		15,787
	(Gain) loss on debt extinguishment	—		(254)		420		(254)		(109)
	Depreciation, amortization and accretion expense	460,461		458,995		432,828		919,456		869,214
	Stock-based compensation expense	104,546		98,715		104,682		203,261		194,634
	Transaction costs	5,718		1,600		5,063		7,318		9,303
	(Gain) loss on asset sales	(1,941)		852		(94)		(1,089)		1,724
	Adjusted EBITDA	nbsp;    901,170		nbsp;    944,283		nbsp;    860,332		nbsp; 1,845,453		nbsp; 1,660,044
	The geographic split of our adjusted EBITDA is presented below:
	Americas net income (loss)	nbsp;   (42,264)		nbsp;   (40,492)		nbsp;       38,199		nbsp;   (82,756)		nbsp;       18,627
	Americas income tax expense	37,385		55,142		8,516		92,527		41,260
	Americas interest income	(18,631)		(15,175)		(3,904)		(33,806)		(5,632)
	Americas interest expense	83,892		84,280		82,160		168,172		152,890
	Americas other expense (income)	7,988		5,104		(55,803)		13,092		(79,193)
	Americas loss on debt extinguishment	—		—		420		—		159
	Americas depreciation, amortization and accretion expense	251,594		245,107		230,099		496,701		460,185
	Americas stock-based compensation expense	69,464		67,814		73,677		137,278		137,594
	Americas transaction costs	2,610		477		2,715		3,087		5,706
	Americas gain on asset sales	710		2,830		145		3,540		1,183
	Americas adjusted EBITDA	nbsp;    392,748		nbsp;    405,087		nbsp;    376,224		nbsp;    797,835		nbsp;    732,779
	EMEA net income	nbsp;    151,942		nbsp;    199,015		nbsp;    101,638		nbsp;    350,957		nbsp;    200,026
	EMEA income tax expense	—		—		119		—		119
	EMEA interest income	(2,872)		(2,540)		(525)		(5,412)		(792)
	EMEA interest expense	4,557		4,149		(112)		8,706		804
	EMEA other expense (income)	(2,862)		(16,480)		57,169		(19,342)		86,340
	EMEA depreciation, amortization and accretion expense	123,100		124,675		116,070		247,775		230,936
	EMEA stock-based compensation expense	21,510		18,836		19,168		40,346		35,280
	EMEA transaction costs	2,090		836		2,094		2,926		3,251
	EMEA loss on asset sales	(2,651)		(1,978)		(239)		(4,629)		(237)
	EMEA adjusted EBITDA	nbsp;    294,814		nbsp;    326,513		nbsp;    295,382		nbsp;    621,327		nbsp;    555,727
	Asia-Pacific net income	nbsp;      97,335		nbsp;    100,207		nbsp;       76,405		nbsp;    197,542		nbsp;    145,282
	Asia-Pacific income tax benefit	—		(87)		—		(87)		—
	Asia-Pacific interest income	(2,000)		(1,673)		(79)		(3,673)		(190)
	Asia-Pacific interest expense	11,524		9,052		8,778		20,576		17,097
	Asia-Pacific other expense	6,392		3,873		4,872		10,265		8,640
	Asia-Pacific gain on debt extinguishment	—		(254)		—		(254)		(268)
	Asia-Pacific depreciation, amortization and accretion expense	85,767		89,213		86,659		174,980		178,093
	Asia-Pacific stock-based compensation expense	13,572		12,065		11,837		25,637		21,760
	Asia-Pacific transaction costs	1,018		287		254		1,305		346
	Asia-Pacific gain on asset sales	—		—		—		—		778
	Asia-Pacific adjusted EBITDA	nbsp;    213,608		nbsp;    212,683		nbsp;    188,726		nbsp;    426,291		nbsp;    371,538
(9)	We define cash gross margins as cash gross profit divided by revenues.
	Our cash gross margins by geographic region are presented below:
	Americas cash gross margins	70 %		72 %		71 %		71 %		70 %
	EMEA cash gross margins	57 %		61 %		64 %		59 %		64 %
	Asia-Pacific cash gross margins	65 %		65 %		64 %		65 %		64 %
(10)	We define adjusted EBITDA margins as adjusted EBITDA divided by revenues.
	Americas adjusted EBITDA margins	44 %		46 %		45 %		45 %		45 %
	EMEA adjusted EBITDA margins	43 %		47 %		49 %		45 %		48 %
	Asia-Pacific adjusted EBITDA margins	48 %		50 %		49 %		49 %		48 %
(11)	We define adjusted EBITDA flow-through rate as incremental adjusted EBITDA growth divided by incremental revenue growth as follows:
	Adjusted EBITDA – current period	nbsp;    901,170		nbsp;    944,283		nbsp;    860,332		nbsp; 1,845,453		nbsp; 1,660,044
	Less adjusted EBITDA – prior period	(944,283)		(838,740)		(799,712)		(1,709,656)		(1,573,875)
	Adjusted EBITDA growth	nbsp;   (43,113)		nbsp;    105,543		nbsp;       60,620		nbsp;    135,797		nbsp;       86,169
	Revenues – current period	nbsp; 2,018,408		nbsp; 1,998,209		nbsp; 1,817,154		nbsp; 4,016,617		nbsp; 3,551,601
	Less revenues – prior period	(1,998,209)		(1,870,845)		(1,734,447)		(3,711,504)		(3,381,554)
	Revenue growth	nbsp;      20,199		nbsp;    127,364		nbsp;       82,707		nbsp;    305,113		nbsp;    170,047
	Adjusted EBITDA flow-through rate	(213) %		83 %		73 %		45 %		51 %
(12)	FFO is defined as net income or loss, excluding gain or loss from the disposition of real estate assets, depreciation and amortization on real estate assets and adjustments for unconsolidated joint ventures’ and non-controlling interests’ share of these items.
	Net income	nbsp;    207,013		nbsp;    258,730		nbsp;    216,242		nbsp;    465,743		nbsp;    363,935
	Net (income) loss attributable to non-controlling interests	17		56		80		73		(160)
	Net income attributable to Equinix	207,030		258,786		216,322		465,816		363,775
	Adjustments:
	Real estate depreciation	283,673		283,681		278,046		567,354		558,242
	Loss on disposition of real estate property	1,175		2,561		1,850		3,736		4,695
	Adjustments for FFO from unconsolidated joint ventures	3,362		3,124		2,131		6,486		4,281
	FFO attributable to common shareholders	nbsp;    495,240		nbsp;    548,152		nbsp;    498,349		nbsp; 1,043,392		nbsp;    930,993
(13)	AFFO is defined as FFO, excluding depreciation and amortization expense on non-real estate assets, accretion, stock-based compensation, stock-based charitable contributions, restructuring charges, impairment charges, transaction costs, an installation revenue adjustment, a straight-line rent expense adjustment, a contract cost adjustment, amortization of deferred financing costs and debt discounts and premiums, gain or loss on debt extinguishment, an income tax expense adjustment, net income or loss from discontinued operations, net of tax, recurring capital expenditures and adjustments from FFO to AFFO for unconsolidated joint ventures’ and non-controlling interests’ share of these items.
	FFO attributable to common shareholders	nbsp;    495,240		nbsp;    548,152		nbsp;    498,349		nbsp; 1,043,392		nbsp;    930,993
	Adjustments:
	Installation revenue adjustment	6,121		(2,237)		(34)		3,884		811
	Straight-line rent expense adjustment	10,614		1,179		4,207		11,793		7,867
	Amortization of deferred financing costs and debt discounts and premiums	4,653		4,590		4,536		9,243		8,740
	Contract cost adjustment	(13,735)		(6,682)		(7,891)		(20,417)		(22,830)
	Stock-based compensation expense	104,546		98,715		104,682		203,261		194,634
	Stock-based charitable contributions	2,543		—		14,039		2,543		14,039
	Non-real estate depreciation expense	125,535		120,945		103,349		246,480		208,924
	Amortization expense	52,428		52,474		51,875		104,902		101,444
	Accretion expense	(1,175)		1,895		(442)		720		604
	Recurring capital expenditures	(39,672)		(21,729)		(34,775)		(61,401)		(58,656)
	(Gain) loss on debt extinguishment	—		(254)		420		(254)		(109)
	Transaction costs	5,718		1,600		5,063		7,318		9,303
	Income tax expense (benefit) adjustment	1,542		1,582		(49,683)		3,124		(50,006)
	Adjustments for AFFO from unconsolidated joint ventures	(96)		1,563		(2,303)		1,467		(1,734)
	AFFO attributable to common shareholders	nbsp;    754,262		nbsp;    801,793		nbsp;    691,392		nbsp; 1,556,055		nbsp; 1,344,024
(14)	Following is how we reconcile from adjusted EBITDA to AFFO:
	Adjusted EBITDA	nbsp;    901,170		nbsp;    944,283		nbsp;    860,332		nbsp; 1,845,453		nbsp; 1,660,044
	Adjustments:
	Interest expense, net of interest income	(76,470)		(78,093)		(86,318)		(154,563)		(164,177)
	Amortization of deferred financing costs and debt discounts and premiums	4,653		4,590		4,536		9,243		8,740
	Income tax expense	(37,385)		(55,055)		(8,635)		(92,440)		(41,379)
	Income tax expense (benefit) adjustment	1,542		1,582		(49,683)		3,124		(50,006)
	Straight-line rent expense adjustment	10,614		1,179		4,207		11,793		7,867
	Stock-based charitable contributions	2,543		—		14,039		2,543		14,039
	Contract cost adjustment	(13,735)		(6,682)		(7,891)		(20,417)		(22,830)
	Installation revenue adjustment	6,121		(2,237)		(34)		3,884		811
	Recurring capital expenditures	(39,672)		(21,729)		(34,775)		(61,401)		(58,656)
	Other income (expense)	(11,518)		7,503		(6,238)		(4,015)		(15,787)
	Loss on disposition of real estate property	1,175		2,561		1,850		3,736		4,695
	Adjustments for unconsolidated JVs’ and non-controlling interests	3,283		4,743		(92)		8,026		2,387
	Adjustment for gain (loss) on sale of assets	1,941		(852)		94		1,089		(1,724)
	AFFO attributable to common shareholders	nbsp;    754,262		nbsp;    801,793		nbsp;    691,392		nbsp; 1,556,055		nbsp; 1,344,024
(15)	The shares used in the computation of basic and diluted FFO and AFFO per share attributable to Equinix is presented below:
	Shares used in computing basic net income per share, FFO per share and AFFO per share	93,535		92,971		91,036		93,253		90,904
	Effect of dilutive securities:
	Employee equity awards	322		369		226		346		309
	Shares used in computing diluted net income per share, FFO per share and AFFO per share	93,857		93,340		91,262		93,599		91,213
	Basic FFO per share	nbsp;           5.29		nbsp;           5.90		nbsp;           5.47		nbsp;         11.19		nbsp;         10.24
	Diluted FFO per share	nbsp;           5.28		nbsp;           5.87		nbsp;           5.46		nbsp;         11.15		nbsp;         10.21
	Basic AFFO per share	nbsp;           8.06		nbsp;           8.62		nbsp;           7.59		nbsp;         16.69		nbsp;         14.79
	Diluted AFFO per share	nbsp;           8.04		nbsp;           8.59		nbsp;           7.58		nbsp;         16.62		nbsp;         14.74

 

 

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SOURCE Equinix, Inc.