Equinix Inc (NASDAQ: EQIX) stock fell over 1.7% on 29th October, 2020 (as of 11:12 am GMT-4; Source: Google finance) after the company profit fell to $66.69 million compared to $120.85 million, in last year’s third quarter. The company now have more than 386,000 interconnections with 14 of the top metros having ecosystems with over 10,000 interconnections and growing. In Q3, the company has added an incremental 8,500 interconnects more than the next 15 competitors combined driven by work from home, video streaming, and enterprise cloud connectivity. Further, EMEA and APAC were the company’s fastest-growing regions by revenues on a year-over-year normalized basis at 16% and 11% respectively followed by the Americas region which stepped up to 5%.
Moreover, EMEA region posted strong bookings in the third quarter with a healthy mix of small deals and new logo adds led by the London and Amsterdam markets. Interconnection was significantly up on a year-over-year basis increasing to 12% of the region’s recurring revenues due to both strong volume performance and favorable pricing initiatives.
EQIX in the third quarter of FY 20 has reported the adjusted funds from operations (FFO) per share of $6.48, beating the analysts’ estimates for the adjusted funds from operations per share of $6.03, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 8.6 percent to $1.52 billion in the third quarter of FY 20, beating the analysts’ estimates for revenue by 1.14%. Adjusted EBITDA was up 11% year-over-year to $737 million. Interconnection revenues rose 15% year-over-year as both unit volume and pricing continue to trend favorably.
Additionally, for the quarter capital expenditures were approximately $565 million, including recurring CapEx of $38 million. The company opened three new projects in the quarter, including the entry into Muscat, Oman along with Dubai for the region’s networks and subsea cable traffic.
On the other hand, in October, the company closed the acquisition of Bell Canada’s data center portfolio, positioning Equinix as a leading national provider in Canada, while giving Canadian customers the global reach they need. The company has also announced the long-awaited entry into India, one of the world’s largest economies and fastest-growing data center markets and now the 27th country served by platform Equinix. Once completed, the GPX acquisition will add two highly interconnected data centers in Mumbai and will serve as a critical foundation for Pan-Indian expansion.