Global data center colocation and interconnection company Equinix has reported results for the quarter ended March 31, 2020. The company’s quarterly revenues increased by 2% over the previous quarter to $1.445 billion in total. For the second quarter of 2020, Equinix expects revenues to range between $1.446 and $1.466 billion, an increase of 0 – 2% quarter-over-quarter.
Key customer expansions for Equinix in Q1 2020 included Hurricane Electric, TikTok and Zoom. For the full year of 2020, Equinix expects its total revenues to range between $5.877 and $5.985 billion, a 6 – 8% increase over the previous year.
“These are unprecedented times and our hearts go out to those who have been impacted by COVID-19. We extend our gratitude to all the front-line workers who are helping to keep us safe and healthy during this global pandemic,” said Charles Meyers, President and CEO of Equinix. “The Equinix business continues to perform well and shows resiliency through these times of uncertainty, enabling us to remain focused on the clear set of priorities we laid out at the beginning of the year – investing in our people, evolving our platform and service portfolio to meet the changing needs of customers, expanding our go-to-market engine to fuel long-term growth, and simplifying our business to drive operating leverage and enhance our customer experience.”
Customer deployments across multiple metros comprised 87% of total recurring revenues, which would demonstrate the value of the Equinix global platform.
Equinix’s interconnection revenues in the quarter increased 14% over the same quarter last year, or 15% on a normalized and constant currency basis, a sustainable and steady increase over the past few quarters.
Peak Equinix Internet Exchange traffic increased 44% over the same quarter last year, or over 20% compared to the prior quarter, reflecting the impact of the sudden global shift to remote and work-from-home practices.
Colocation – Indirect Selling
Equinix continues the growth of its indirect selling initiatives, as the company pursues high-value strategic channel partnerships. In Q1, channel activity accounted for approximately 30% of bookings, including wins across a wide range of industry segments with projects focused on digital transformation efforts, as well as COVID-19 responses.
As part of the company’s hyperscale initiative, on April 21, 2020, Equinix signed a greater than $1.0 billion initial joint venture in the form of a limited liability partnership with GIC, Singapore’s sovereign wealth fund, to develop and operate xScale data centers in Japan. The three initial facilities in the joint venture – one in Osaka and two in Tokyo – will serve the unique core workload deployment needs of a targeted group of hyperscale companies, including the world’s largest cloud service providers. This is Equinix’s second joint venture with GIC. In 2019, Equinix and GIC announced the formation of a joint venture to develop and operate xScale data centers in Europe.
On March 3, 2020, Equinix announced the completion of the $335 million acquisition of Packet. Now operating as ‘Packet, an Equinix company,’ the Packet team is contributing to Equinix’s strategy to help enterprises seamlessly deploy hybrid multicloud architectures by developing new solutions that combine Packet’s leading bare metal automation technology with the rich ecosystems, global reach and interconnection fabric of Platform Equinix.