Cyxtera Technologies, Inc.

Good morning and welcome to today's 6 Terra, fourth quarter 2021 earnings call. My name is Bailey and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press star followed by one on your telephone keypad. I would now like to pass the call over to Greer Aviv, Senior Vice President of Investor Relations. Greer, please go ahead.

Thank you, Bailey. Good morning and welcome to our fourth quarter and full year 2021 earnings conference call. On today's call, we will refer to materials available on our investor relations website at ir.sixpera.com. We are joined here today by Nelson Penseca, President and CEO, and Carlos Sagasta, our CFO. After prepared remarks, we'll open up the lines for Q&A. Before we begin, I would like to remind you that today's earnings materials contain forward-looking statements, including statements regarding our future expectations. All forward-looking statements are subject to risks and uncertainties. Please refer to today's earnings materials, the safe harbor language on slide two of our presentation, and our SEC filings for a discussion of the major risk factors that could cause our actual results to differ from those in our forward-looking statements. In addition, we used several non-GAAP measures when presenting our financial results. We have included the reconciliations to these measures in our supplemental financial information. With that, I'll turn the call over to Nelson.

Thank you, Greer. Good morning, and thank you for joining us for our fourth quarter earnings call. We're pleased to report continued execution of our business plan in the fourth quarter, delivering solid growth and finishing out 2021 as our first year as a publicly traded company. Our full year 2021 performance demonstrates consistent execution with an efficient go-to-market strategy that leverages the robust customer and partner ecosystem we have built across our global platform. Our team drove strong core bookings for the year, totaling $100 million in annualized revenue, a 25% increase over 2020. As you can see on slide six, average monthly core churn improved quarterly throughout the year, ending 2021 at 0.6 percent. This combination of strong bookings and low return resulted in core revenue of $639 million or growth of more than 7 percent year-over-year. Building on this momentum, the midpoint of our 2022 guidance implies year-over-year revenue and transaction-adjusted EBITDA growth of 6 percent and 9 percent, respectively. Throughout 2021, we were focused on executing on the organic growth plan and delivering on commitments we made to our customers, employees, partners, and shareholders. We focused on three key themes, growth, innovation, and strengthening our capital structure. In terms of growth, I outlined the success we achieved in 2021 with core revenue growth of more than 7% and transaction-adjusted EBITDA growth of 4%, while expanding our EBITDA margin 70 basis points year over year. In the fourth quarter, we attracted 40 new logos to our platform, which accounted for more than 25% of bookings in the quarter, demonstrating the strength of our differentiated go-to-market strategy. For the full year, new logo acquisition increased 32%. Additionally, our channel partner program, which is focused on new logo acquisitions, continues to produce results, delivering an increase of more than 40% year over year. Regarding our ecosystem, interconnection revenue saw another year of solid growth at 11% over the prior year, representing approximately 11% of total revenue in 2021. We expect the percent of revenue generated from our high-margin interconnection solutions to increase over time, as we continue to add network partners and service providers to our global ecosystem. As I mentioned on the previous earnings call, innovation is a core part of Sextera's culture, and it's the driving force behind the constant push to deliver increasing value to our customers. The innovative solutions our team develops in-house is one of the key differentiators of our business and something that is difficult for peers to emulate. Throughout 2021, we unveiled leading-edge offerings that make our data centers easier to consume, allow our customers to seamlessly connect to one another, and support our customers' digital transformation initiatives. As digital transformation efforts continue to accelerate and infrastructure agility becomes an essential component of business growth, enterprises are increasingly looking to hybrid solutions to deliver the mix of resources their workloads and applications require. Our customers are seeking both the speed and scale typically associated with the cloud and the security and reliability that comes with dedicated infrastructure. Our digital exchange platform and enterprise bare metal offering address this growing market trend, providing customers the flexibility to adjust their infrastructure as their business requirements evolve, both today and in the future. Building off these earlier innovations, we recently announced our Smart Cabs offering. which leverages the digital exchange platform to provide on-demand co-location cabinets complete with built-in power and an integrated configurable core network fabric. SmartCabs delivers dedicated on-demand IT infrastructure resources to OEMs and technology service providers, significantly reducing deployment schedules and accelerating time to solution. In a recent press release, We called out how companies like Dell Technologies and Packet Fabric gain immediate access to a ready-to-buy audience of enterprises who are looking to purchase technology solutions in an on-demand as a service model. For OEMs and service providers, this capability makes it easier for them to leverage Sixtera's global data center platform as a high-growth sales channel. Our most recent innovation comes in interconnection. an area that's foundational to our customers' ability to architect their hybrid IT environments. Building on the strength of existing capabilities, we're extending the value provided by Sixterra's ecosystem by enabling customers to establish on-demand connections to every major cloud provider directly via our digital exchange. The offering allows our customers to reduce network cost, increase bandwidth throughput, and improve network performance and reliability. While we have long offered reliable low-latency cloud connectivity via partner solutions, we now enable customers to natively connect to cloud providers on demand directly through the customer portal. To close out 2021, we made meaningful progress on strengthening our balance sheet and optimizing our capital structure, which Carlos will discuss in more detail. We are well-positioned to enter our next phase of growth, with greater access to capital and the flexibility to support our strategic growth initiatives. As we look ahead to the remainder of 2022, we will maintain our focus on sustaining our organic growth while building on our differentiation through additional innovation. We will also prioritize our environmental, social, and corporate governance initiatives while evaluating strategic opportunities to expand our global data center platform. At Sixtera, we believe in harnessing our people, our products, and our culture of innovation to leave the world just a little bit better than we found it. To achieve this, we developed a holistic ESG approach that prioritizes the needs of each of our stakeholders, including our customers, employees, shareholders, partners, the environment, and society as a whole. To ensure we continue to make meaningful progress across all areas, Sixtera has prioritized ESG initiatives at the board level and established multiple levels of oversight across the organization. When looking at our responsibilities in ESG and based on the sector in which we operate, mitigating the impact of our operations on the environment is top of mind. To this end, we've established proactive sustainability and efficiency measures that enable us to minimize energy demands without compromising reliability. On slide 10, we list some of the key metrics that are guiding our ESG efforts. Sixtera's share of non-carbon emitting energy is currently at 53%, with the goal of achieving 100% by 2030. In addition, our average PUE of 1.5 is in line with our retail co-location peers. From a social impact perspective, we're focused on maintaining our culture of high-performing teams, by cultivating a diverse and inclusive workforce, investing in our employees to develop our next generation of leaders, and providing opportunities for employees to give back to their communities. Currently, 43% of our company's leaders at the BP level and above represent gender and ethnic diversity. In addition, 60% of the employees participating in our leadership development program also represent gender and ethnic diversity. From a governance perspective, We are focused on maintaining trust with our customers, partners, shareholders, and the overall industry from our board of directors on down. Our board consists of separate CEO and chairman roles. 78% of our directors are independent, and 56% represent gender and ethnic diversity. We are proud of our strong corporate culture and our ESG focus and have the governance structure in place to deliver continued improvement. As we look to further accelerate growth, we will evaluate expansion into new markets and other inorganic initiatives opportunistically. We have implemented an internal process to effectively evaluate the many opportunities that are available to us. We intend to focus our geographic expansion efforts in international markets, which we believe adds to our strategic positioning and provides increasing value to our customers. More importantly, we will focus on those opportunities that are accretive to our organic plan with a disciplined approach to capital allocation decisions. In summary, we are pleased to deliver strong financial results for 2021, highlighted by continued core revenue growth and expanding EBITDA margins. We are excited about the opportunities ahead of us and look to leverage our differentiated global platform, strong ecosystem, and innovative solutions to drive accelerated growth, increase profitability, and attractive returns on capital. Now, I'll turn the call over to Carlos to cover the financial results in more detail.