Equinix Inc (NASDAQ: EQIX) stock rose 1.1% on November 2nd, 2018 (as of 10:53 AM GMT-4; Source: Google finance) after the company posted better than expected results for the third quarter of 2018. EQIX are actively investing capital with 30 expansion projects under way across 21 of the markets in response to customer demand. In the third quarter, we opened nine builds across Frankfurt, Miami, Rio de Janeiro and Singapore. Greater than 80% of current expansion project CapEx is allocated to metros, each generating over $100 million in revenues. These markets are well-established campuses that drive predictable fill rates and high levels of interconnection. With respect to the Hyperscale Infrastructure Team or HIT, the company is seeing continued momentum and a strong pipeline as we design and build initial capacity, expand the team and work to finalize the financing structures, which have generated tremendous interest in which we expect to have in place by early next year. In parallel, the company is adding capacity in hybrid facilities such as London 9 and 10 to capture early wins and maintain momentum. The company will open the first dedicated HIT facility Paris 8 early next year and have seen strong pre-leasing with key cloud customers.
EQIX in the third quarter of FY 18 has reported the funds from operations (FFO) of $5.01 per share, beating the analysts’ estimates for funds from operations (FFO) of $4.95 per share, as per Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 9 percent to $1.28 billion in the third quarter of FY 18, beating the analysts’ estimates for revenue by 0.39%. Adjusted EBITDA was 7%, above the company’s guidance due to lower integration costs and timing expense and AFFO was ahead of the company’s expectations. These growth rates are on a normalized and constant-currency basis. Bookings were strong across the regions with a record in APAC and particularly robust growth in the cloud and content verticals. Interconnection revenues continued to outpace colocation growing 13% year-over-year. The company’s metrics across interconnection counts, billable cabinets and MRR per cab were all healthy this quarter and reflects solid execution of our strategy. The company also saw substantial progress with our three latest acquisitions, Infomart, Metronode and Verizon, all of which are tracking well against the company’s expectations.
Channel sales had another strong quarter, again contributing more than 20% of bookings and over 40% of the new logos as partners like AT&T, Telstra, Microsoft and NetApp, all mobilized their extensive go-to-market power to help extend the enterprise reach.