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Equinix (NASDAQ:EQIX) stock gained 11% in Wednesday after-hours trading after the data center REIT posted Q1 earnings that exceeded the Wall Street consensus and increased its 2023 guidance.
For the year, Equinix (EQIX) guided for adjusted FFO per share of $31.15-$32.00, up from its previous range of $30.79-$31.64. Revenue is expected to be $8.175B-$8.275B, up from its previous range of $8.145B-$8.245B.
The company expects adjusted EBITDA of $3.635B-$3.715B, as compared with its prior range of $3.615B-$3.695B.
The new guidance assumes $33M of integration costs compared with $33M in the guidance it issued in February.
"We had a strong start to the year, delivering nearly $2B of revenue for the quarter, as our outlook remains positive with the overall demand for digital transformation fueling our conviction around the long-term secular drivers of our business," said President and CEO Charles Meyers.
Q1 FFO per share of $5.87, topping the $5.33 consensus, rose from $4.39 in Q4 2022 and from $4.75 in Q1 2022.
Q1 revenue of $2.00B, exceeding the $1.97B consensus estimate, increased from $1.87B in the prior quarter and from $1.73B in the year-ago period.
Total operating expenses of $608.0M declined from $618.0M in the prior quarter and increased from $551.3M a year ago.
Q1 adjusted EBITDA rose to $944.2M from $838.7M in Q4 2022 and from $799.7M in Q1 2022. Adjusted EBITDA margin of 47% improved from 45% in the prior quarter and 46% in the year-ago quarter.
Conference call at 5:30 PM ET.
Earlier, Equinix FFO of $5.87 beats by $0.54, revenue of $2B beats by $30M