Equinix Inc.’s EQIX third-quarter 2024 adjusted funds from operations (AFFO) per share of $9.05 surpassed the Zacks Consensus Estimate of $8.70. The figure improved 10.5% from the prior-year quarter.

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Results displayed steady growth in colocation and inter-connection revenues on the back of strong demand for digital infrastructure. During the quarter, Equinix’s total interconnections reached 478,000, rising 4% year over year. The company also revised its outlook for 2024.

Total quarterly revenues were $2.2 billion, in line with the Zacks Consensus Estimate. The top line increased 6.8% year over year.

Quarter in Detail

Recurring revenues were $2.06 billion, up 5% from the year-ago quarter. Our projection for the metric was $2.08 billion. Non-recurring revenues rose 42% to $142 million. We estimated the metric to be $124 million.

Revenues from the Americas, EMEA and the Asia Pacific rose 4.9%, 4.8% and 13.9% to $958 million, $743 million and $500 million, year over year, respectively.

The adjusted EBITDA came in at $1.05 billion, up 12% year over year. We projected the metric at $1.04 billion. Adjusted EBITDA margin was reported at 48%.

AFFO rose 12.2% to $866 million from the year-ago period.

EQIX spent $69 million on recurring capital expenditure in the third quarter, up 35.3% on a year-over-year basis. Recurring capital expenditure was 3.1% of revenues in the reported quarter. Non-recurring capital expenditure was $655 million, up 15.7% year over year.

Balance Sheet

Equinix had $7.2 billion of available liquidity as of Sept. 30, 2024. This comprised cash, cash equivalents, short-term investments and its undrawn revolver. It excludes restricted cash.

Its net leverage ratio was 3.5, and the weighted average maturity was seven years as of Sept. 30, 2024.

EQIX’s Dividend Update

Concurrently, Equinix’s board of directors announced a quarterly cash dividend of $4.26 per share. The dividend will be paid out on Dec. 11 to shareholders on record as of Nov. 13, 2024.

2024 Revised EQIX Guidance

For the fourth quarter of 2024, Equinix projects revenues between $2.262 billion and $2.302 billion, implying a 3.5% increase over the prior quarter. The adjusted EBITDA is expected to be in the range of $1.010-$1.050 billion.

For the current year, AFFO per share is estimated between $34.81 and $35.22, revised upward from the prior-guided range of $34.67-$35.30. This suggests an 8-10% increase from the previous year. The Zacks Consensus Estimate for the same is currently pegged at $35.10.