Equinix Inc (NASDAQ:EQIX) stock fell 5.70% (As on August 3, 11:11:53 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY 23. The company attributes its success to solid gross and net bookings, which culminated in more than 4,100 deals across more than 3,100 customers. Channel bookings also played a pivotal role, accounting for 40% of total bookings and nearly 60% of new logos, showcasing the effectiveness of Equinix’s partner ecosystem. Furthermore, the company reported operating income of $332 million, a 5% increase from the previous year. Net income reached $207 million, or $2.21 per share. That’s a 4% decrease in net income from the same quarter last year, primarily from lower income from operations and higher income tax expenses following a favorable tax settlement in 2022.

Moreover, Equinix has been proactive in expanding its global interconnection franchise, evidenced by the company’s more than 456,000 total interconnections. Interconnection revenues surged by 10% year over year as reported or 11% on a constant currency basis, driven by strong gross additions, increasing traffic levels and favorable pricing dynamics. One of the key drivers of Equinix’s success lies in its Channel program, which accounted for 40% of bookings and approximately 60% of new logos. The program continues to see growth from partners like Accenture plc, Avant LLC, Cisco Systems Inc., Dell Technologies Inc. and Hewlett Packard Enterprise Co., with wins spanning various industry verticals and digital-first use cases.

Equinix Fabric, the company’s interconnection service, also achieved a significant milestone in the quarter, surpassing 50,000 total virtual connections for the first time. To support larger workloads, such as data-intensive AI training models and scalable enterprise networks, Equinix Fabric continues to enhance its capabilities. Notably, starting in the third quarter, Equinix Fabric customers can provision virtual connections to cloud providers with bandwidths of up to 50 gigabits per second, with Google Cloud leading the way as the first supported cloud provider.

EQIX in the second quarter of FY 23 has reported the adjusted funds from operations (FFO) per share of $8.04, beating the analysts’ estimates for the adjusted FFO per share of $7.51, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 11 percent to $2.02 billion in the second quarter of FY 23, beating the analysts’ estimates for revenue by 0.09%.