Equinix Reports $212 Million in Net Income for Q3 2022

Equinix (NQ:EQIX), a Nasdaq-listed digital infrastructure company, published its financials for the third quarter of 2022 on Thursday. However, revenues and operating income recorded a modest increase in comparison to the previous quarter. The net income of $212 million was 2% lower when compared to Q2 2022.

According to Equinix, a mild net income decrease was caused by lower non-recurring fees of the xScale data center Data Center A data center is a building or network used to house computer systems and associated components, such as telecommunications and storage systems.This generally includes redundant or backup power supplies, redundant data communications connections, environmental controls, and various security devices. Large data centers are industrial scale operations using as much electricity as a small town.Over the past decade, data center space has been growing at an incredible rate. This has increased as more A data center is a building or network used to house computer systems and associated components, such as telecommunications and storage systems.This generally includes redundant or backup power supplies, redundant data communications connections, environmental controls, and various security devices. Large data centers are industrial scale operations using as much electricity as a small town.Over the past decade, data center space has been growing at an incredible rate. This has increased as more Read this Term and a favorable tax settlement in the previous quarter. It was partially covered by higher operational performance and a lower net interest expense. The net income per share reached $2.30, decreasing 3% from the last three-month period.

Revenues stood at $1.8 billion, increasing 1% while operating income rose to $333 million, which is up 5% compared to the previous quarter. For Equinix, it was the 79^th consecutive quarter of revenue growth, and any other S&P 500 company could not hold on to such a longstanding streak.

"We had another record quarter as global demand for digital infrastructure continues to grow and customer preferences trend convincingly toward architectures that are highly distributed, persistently hybrid, deeply cloud-connected, and increasingly on-demand — all factors fueling our position as a trusted partner in digital transformation," Charles Meyers, the President and CEO of Equinix, said.

"Even in a complex and challenging macro environment, our expansive global reach and robust interconnected ecosystems continue to attract a wide and diverse customer set, as businesses prioritize digital investments and embrace Platform Equinix as a point of nexus to support hybrid and multicloud."

In October 2022, Equinix dedicated $45 million to build its second data center in Colombia. According to the announcement, the new facility should launch in the first half of 2023.

Outlook for Q4 and Full 2022

For the full year, Equinix is expecting a visible surge in revenue. According to the forecasts shaded by the publicly-listed company, total revenue should range between $7.240 and $7.260 billion, increasing by 9% year-over-year (YoY).

However, in Q4 2022 alone, the company expects a modest increase of approximately 1%. Revenues should range between $1.848 and $1.868 billion.

"This guidance includes a negative $35 million foreign currency impact when compared to the average FX rates in Q3 2022. Adjusted EBITDA is expected to range between $821 and $841 million," Equinix highlighted.