Equinix, Inc.

Good afternoon and welcome to the Equinix first quarter earning conference call. All lines will be able to listen only until we open for questions. Also, today's conference is being recorded. If anyone has any objections, please disconnect at this time. I'd now like to turn the call over to Katrina Reimel, Vice President of Investor Relations. You may begin.

Thank you, Jennifer. Good afternoon and welcome to today's conference call. Before we get started, I'd like to remind everyone that some of the statements that we'll be making today are forward-looking in nature and and involve risks and uncertainties. Actual results may vary significantly from those statements and may be affected by the risks we identified in today's press release and those identified in our filings with the SEC, including our most recent Form 10-K, filed on February 22, 2019. Equinix assumes no obligation and does not intend to update or comment on forward-looking statements made on this call. In addition, in light of regulation fair disclosure, is Equinix's policy not to comment on its financial guidance during the quarter unless it is done through an explicit public disclosure. In addition, we will provide non-GAAP measures on today's conference call. We provide a reconciliation of those measures to the most directly comparable GAAP measures and a list of the reasons why the company uses these measures in today's press release on the Equinix IR page at www.equinix.com. We have made available on the IR page of our website a presentation designed to accompany this discussion, along with certain supplemental financial information and other data. We'd also like to remind you that we post important information about Equinix on the IR page from time to time and encourage you to check our website regularly for the most current available information. With us today are Charles Myers, Equinix's CEO and President, Keith Taylor, Chief Financial Officer. Following our prepared remarks, we'll be taking questions from sell-side analysts. In the interest of wrapping this call up in an hour, we'd like to ask these analysts to limit any following questions to just one. At this time, I'll turn the call over to Charles.

Thank you, Katrina. Good afternoon and welcome to our first quarter earnings call. We had a great start to the year delivering our best Q1 ever, including the largest revenue step up in our history and our second best net bookings quarter, reflecting strong customer demand and low return. Our bookings span more than 3,000 customers with cross-border bookings up substantially year over year. We processed over 4,000 deals in the quarter, highlighting the diversity and high-volume nature of our retail co-location business and the scale we've built across our entire go-to-market and customer support engine. During the quarter, we also announced adjustments to our org structure to globalize our operating model, scale our business, and execute with increased velocity against the growing opportunity for Equinix as a strategic platform on which customers architect their digital business. We moved three company veterans into new roles, including concentrating all of our customer-facing functions into a single global organization under Carl Strohmeyer, enabling us to provide consistent execution and deliver increased value as a trusted advisor to the businesses undergoing digital transformation. As depicted on slide three, revenues for Q1 were $1.36 billion, up 11% year-over-year. Adjusted EBITDA was up 12% year-over-year, and AFFO was meaningfully ahead of our expectations. Our market-leading interconnection franchise is performing well, with revenues continuing to outpace colocation, growing 12% year-over-year, as the cloud ecosystem continues to scale. These growth rates are all on a normalized and constant currency basis. Penetration in Lighthouse accounts increased to nearly 50% of the Fortune 500 and 35% of the Global 2000, showcasing the expanding opportunity as we deepen our reach into the enterprise. We are now the market leader in 16 out of the 24 countries in which we operate, and we're expanding our platform with 32 projects announced across 27 markets, with Q1 openings in Frankfurt, Hong Kong, London, Paris, and Shanghai. With regard to our hyperscale initiative, we are now in the final stages of discussions with a short and highly attractive list of potential financing partners. We expect to announce our first JV in EMEA in Q2 with a collection of both stabilized and development assets. We continue to see strong customer demand and lease up for our London 10 and Paris 8 assets is tracking ahead of expectations. we remain highly confident that the JV structure will allow us to extend our cloud leadership while mitigating the strain of hyperscale development on our balance sheet. We'll provide additional details when we announce the transaction, but fully expect that the JV structure will deliver significant strategic value and solid returns, all with minimal impact on our P&L in 2019. Shifting to interconnection, we now have over 341,000 interconnections and continue to add at a rapid clip. In Q1, we added an incremental 7,400, including 1,900 virtual connections. We added more interconnections year over year than the rest of the top 10 competitors combined. For our internet exchange platform, we're seeing strength in the new EMEA and Latin American markets with IX peak traffic up 20% year over year. ECX Fabric, our SDN-enabled interconnection service, now has over 1,500 customers and saw strong growth from enterprise ads. In Q1, We completed the full globalization of our ECX fabric, enabling customers for the first time to establish on-demand network connections between the Americas, Europe, and Asia Pacific. Our vision is to continue to evolve platform Equinix into a broader platform that interconnects and integrates global businesses at the digital edge. Expanding our capabilities at the edge is critical for our service provider customers looking to fuel the wave of digital transformation and for global enterprises striving to keep pace in an increasingly digital world. We are excited about the possibilities of our evolving platform and have developed a roadmap of compelling new services we anticipate rolling out over the next several quarters. Now let me cover highlights from our verticals. Our network vertical experienced solid bookings led by strength in AP and driven by major telcos, mobile operators, and NSP resale. Expansions this quarter included Hutchison, a leading British mobile network operator, upgrading infrastructure to support 5G and cloud services, as well as a leading Asian communication provider, migrating subsea cable nodes and connecting to ECX fabric for lower latency. Our financial services vertical saw near-record bookings led by EMEA and strong growth in insurance and banking. New wins included a Fortune 500 global insurer transforming IT delivery with a cloud-first strategy. a top three auto insurer transforming network topology while securely connecting to multiple clouds, and one of the largest global payment technology companies optimizing their corporate and commercial networks. The content digital media vertical produced solid bookings led by strong demand in the social media sub-segment as providers continue to strive to improve user experience and expand the scope of their business models. Our gaming and e-commerce sub-segments grew the fastest year over year led by customers including Tencent, Naver, and Roblox. Our cloud and IT vertical also captured strong bookings led by SaaS as the cloud diversifies towards a hybrid multi-cloud architecture. We see a robust pipeline as cloud service providers continue to push to new markets and roll out additional services. Expansions included a leading SaaS provider expanding to support growth in new markets and with the federal government, as well as an AI-powered commerce platform upgrading to enhance user experience and support a rapidly growing customer base. As digital transformation accelerates, the enterprise vertical continues to be our fastest growing vertical, led by healthcare, legal, and travel subsegments this quarter. New wins included Air Canada, a top five North American airline, deploying a hybrid multi-cloud strategy, SpaceX, deploying infrastructure to interconnect dense network and partner ecosystems, and one of the big four audit firms, re-architecting networks and interconnecting to multi-cloud to improve the user experience for both employees and clients. Channel bookings also saw continued strength, delivering over 20% of bookings and accounting for half of our new logos. We're seeing accelerated success selling with our key cloud and technology alliance partners, including Cisco, Google, Microsoft, and Oracle. New channel wins this quarter included a win with Anixter for a leading French transportation and freight logistics company deploying a mobility platform, as well as a win with AT&T for a top five U.S. bank accessing our network and cloud provider ecosystems. Now let me turn the call over to Keith and cover the results for the quarter.