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Equinix Inc. (EQIX) provides a network of interconnected data centers around the world that enables its customers to deliver information and applications to their users.
The company’s business is based on a recurring revenue model consisting of colocation and related interconnection and managed infrastructure services. Over the past three years, more than 90% of the company’s revenue has come from recurring sources with just over 40% coming from its largest 50 customers during the third quarter of 2020.
The company generated most (71%) of its revenue from colocation with the remainder coming from interconnection (17%), managed infrastructure (5%), and non-recurring revenue (6%) during the third quarter of 2020. These revenues were split between the Americas (44%), the EMEA (34%), and the Asia Pacific (22%) regions.
Equinix reported revenue that grew 9.9% to $1.56 billion during the fourth quarter of 2020, which was in line with consensus estimates. On the bottom line, the company’s FFO reached $5.76 per share, which came in ahead of analyst estimates by $1.44 per share. Management expects revenue of $6.58 billion to $6.64 billion with a 47% adjusted EBITDA margin in FY 2021.
The company raised its quarterly dividend by 7.9% to $2.87 per share, which represents a 1.65% forward yield. The dividend is payable on March 17, 2021 to shareholders on record as of February 24, 2021.
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