Equinix (EQIX) Q2 2024 earnings summary

Executive summary

• Achieved 86th consecutive quarter of top-line revenue growth, with Q2 2024 revenues reaching $2.2 billion, up 7%-8% year-over-year, and record gross bookings driven by strong AI and xScale demand.

• Net income for Q2 2024 was $301 million, a 45% increase year-over-year, with diluted EPS of $3.16.

• Adjusted EBITDA for Q2 2024 exceeded $1 billion for the first time, up 15%-17% year-over-year, with a 48% margin.

• Leadership transition completed, with a focus on customer value, operational excellence, and disciplined execution.

• Significant events included the sale of the SV12 data center into a joint venture, $750 million in senior notes issued, and expansion into the Philippines via acquisition of three data centers.

Financial highlights

• Q2 2024 revenue was $2.16–$2.2 billion, up 7%-8% year-over-year, with recurring revenues over 90% of total.

• Adjusted EBITDA reached $1.036 billion, up 15%-17% year-over-year, with a 48% margin.

• AFFO was $877 million, up 16%-17% year-over-year, with AFFO per share at $9.22.

• Net income for Q2 2024 was $301 million, up 45% year-over-year; diluted EPS was $3.16.

• MRR per cabinet increased 7% year-over-year to $2,287, driven by favorable pricing and higher power densities.

Outlook and guidance

• Full-year 2024 revenue guidance is $8.692–$8.772 billion, up 7%-8% normalized constant currency.

• Adjusted EBITDA guidance raised to $4.066–$4.126 billion; AFFO guidance raised to $3.310–$3.370 billion.

• AFFO per share projected to grow 9%-11% to $34.67–$35.30.

• 2024 CapEx expected between $2.8–$3.1 billion, including $240 million recurring CapEx.

• 2024 cash dividend expected at $1,618 million ($17.04/share), up 18% year-over-year.