Equinix sees FY23 AFFO $30.79-$31.64, consensus $31.55

Sees FY23 revenue revenue $8.145B-$8.245B, consensus $8.01B. FY23 revenue view represents a 12%-14% increase over the previous year on an as-reported basis, or a 14%-15% increase on a normalized and constant currency basis, and includes a foreign currency benefit of $267M when compared to the prior Equinix guidance FX rates. Excluding the impact of power price increases, this guidance represents a 9%-10% increase on a normalized and constant currency basis. Adjusted EBITDA is expected to range between $3.615B-$3.695B an adjusted EBITDA margin of 45%. This adjusted EBITDA includes approximately 290 basis points of cumulative negative margin impact due to inflated power rates across EMEA and APAC markets and a foreign currency benefit of $123M when compared to the prior Equinix guidance FX rates. For the year, the company expects to incur $35M in integration costs related to acquisitions. AFFO is expected to range between $2.883B-$2.963B a 6%-9% increase over the previous year on an as-reported basis, or a 9%-12% increase on a normalized and constant currency basis. This AFFO guidance includes $35M in integration costs related to acquisitions. AFFO per share is expected to range between $30.79 and $31.64, a 4%-7% increase over the previous year on an as-reported basis, or an 8%-10% increase on a normalized and constant currency basis. This guidance excludes any capital market activities the company may undertake in the future. Non-recurring capital expenditures, including xScale-related costs, are expected to range between $2.511B-$2.741B, and recurring capital expenditures are expected to range between $197M-$217M. xScale-related on-balance sheet capital expenditures are expected to range between $131M-$181M, which the company anticipates will be reimbursed 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 $1.10 to the Euro, $1.23 to the Pound, S$1.34 to the U.S. dollar, 131 to the U.S. dollar and R$5.29 to the U.S. dollar. The Q4 2022 global revenue breakdown by currency for the Euro, British Pound, Singapore Dollar, Japanese Yen and Brazilian Real is 17%, 9%, 8%, 6% and 3%, respectively.