Equinix Smashes Expectations in Q4 with Record-Breaking Growth
Equinix, the leading global interconnection platform company, has shattered expectations in its Q4 earnings report, delivering record-breaking growth and solidifying its position as a leader in the digital infrastructure market.
The company's CEO and President, Adaire Fox-Martin, took to the stage during the recent conference call, boasting of an "outstanding close" to 2024. The results were nothing short of spectacular, with revenues for the full year reaching $8.7 billion, up a staggering 8% year-over-year. This impressive growth marks 22 years of consecutive quarterly revenue growth, a testament to Equinix's resilience and adaptability in an ever-changing market.
Adjusted EBITDA was equally impressive, rising by a significant 160 basis points year-over-year to $4.1 billion. Meanwhile, AFFO per share grew a healthy 10% year-over-year, further solidifying the company's commitment to delivering value for its shareholders. These growth rates are on a normalized and constant currency basis, excluding lower power costs passed through to customers.
The impact of the stronger U.S. dollar during Q4 has, however, tempered both Equinix's as-reported numbers and outlook. Despite this, the company's team remains focused on executing against all variables within their control, highlighting the underlying health of its business and the scale of its opportunity.
One of the standout features of Equinix's performance in Q4 was its exceptional deal-making prowess. The company delivered its best gross bookings ever in both Q4 and 2024, with a staggering 16,200 deals across more than 6,000 customers in the latter year alone. This impressive tally is supported by proactive demand shaping, putting the right customer with the right workload in the right location.
Equinix's channel program was another notable success story, delivering nearly 30% of bookings and more than 50% of company new logos for the year. Wins were secured across a wide range of industry segments and use cases, further underlining the company's commitment to meeting its customers' evolving connectivity needs.
The xScale business also saw significant growth in Q4, with Equinix leasing approximately 150 megawatts of capacity and nearly tripling the investment capital of the program. This impressive performance is set against a backdrop of growing demand for digital infrastructure, making Equinix's unique platform an increasingly attractive proposition.
The company's best-in-class operations team delivered greater than five 9s of uptime for its customers, while also decreasing PUE by more than 6%. This not only enhances operational efficiency but also supports customers' efforts to green their digital infrastructure.
