Equinix Inc (NASDAQ:EQIX) stock fell 1.52% (As on February 13, 11:21:23 AM UTC-4, Source: Google Finance) after the company misses analysts’ expectations for the fourth quarter of FY 24. Adjusted EBITDA reached $4.1 billion, and AFFO per share grew 10% year-over-year. The company closed 16,200 deals across 6,000 customers, supported by record megawatts sold and strong performance in non-Tier 1 metros. The company implemented three strategic priorities for 2025: “serve better,” which includes automated tools and refined segmentation; “solve smarter,” focusing on interconnection and hybrid multi-cloud solutions; and “build bolder,” emphasizing larger data centers to address capacity constraints. The company noted that capital expenditures of approximately $1 billion in the quarter supported growth, with $3.6 billion in cash and short-term investments to meet 2025 capital needs. He also detailed one-time charges, including $160 million for Equinix Metal and $73 million for the Hong Kong 4 asset. Management highlighted strong demand for AI-related workloads, with 50% of Q4 top 25 deals tied to AI training and inferencing use cases.
Further, the Americas region achieved $1 billion in quarterly revenue for the first time. Interconnection revenue grew 9% year-over-year, representing 19% of recurring revenues. Net billable cabinets increased by 2,200, supported by robust bookings and market expansions in Tier 1 and non-Tier 1 metros. Regional highlights included APAC as the fastest-growing market at 13%, followed by the Americas at 8% and EMEA at 2%.
EQIX in the fourth quarter of FY 24 has reported the adjusted funds from operations (FFO) per share of $7.92, missing the analysts’ estimates for the adjusted FFO per share of $8.09, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $2.26 billion in the fourth quarter of FY 24, missing the analysts’ estimates for revenue by 0.79%.
Additionally, the company has declared a quarterly cash dividend of $4.69 per share on its common stock, a 10% increase over the previous quarter. The quarterly common stock dividend will be paid on March 19, 2025, to shareholders of record on February 26, 2025.
Equinix projects 2025 revenue growth of 7%-8%, driven by strong bookings momentum and a large backlog. Adjusted EBITDA margins are expected to rise to approximately 49%, with AFFO per share anticipated to grow 7%-9%. CapEx for the year is forecasted at $3.2 billion to $3.5 billion, including $200 million for xScale projects.