Equinix, Inc.

Good afternoon and welcome to the Equinix third quarter earnings 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 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. Good afternoon and welcome to today's conference call. Before we get started, I'd like to remind everyone that some of the statements we'll be making today are forward-looking in nature 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, and 10-Q, filed on August 2, 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, it 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 would 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, and 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 third quarter earnings call. We had our best-ever third quarter bookings, reflecting strong execution of our strategy and demonstrating our ability to deliver clear and quantifiable value to our customers as they pursue their digital transformation agenda. Our retail business continues to thrive, generating over 4,400 deals in the quarter across 3,100 customers, with the majority of our bookings comprised of small to mid-sized multi-metro deals, fueling one of the strongest interconnection quarters in our history. We're executing effectively on our commitment to unlock the power of platform equinix for our customers, expanding our geographic reach, enhancing our market-leading interconnection portfolio, and responding to evolving customer needs with the launch of new and innovative edge services offerings. By focusing on driving enhanced operating leverage in the business, we're enabling investment across our traditional retail business while layering in incremental capabilities, which together will drive higher attach rates, reduce churn, and sustain enhanced cabinet yields over the coming years, allowing us to continue to deliver industry-leading returns. We are aggressively activating our channel, combining the value of platform economics with partner solutions to accelerate our customers' journey to hybrid and multi-cloud as the clear architecture of choice. We outgrew the market globally with notable momentum in EMEA, and Equinix now holds the number one position in 18 of the 25 countries in which we operate. And we continue to extend our global reach, announcing our plans to enter Mexico, the second largest economy in Latin America, with two new markets serving Mexico City and Monterey. In tandem with our strong operating performance, we're advancing a bold sustainability agenda with meaningful progress across environmental, social, and governance aspects. We've made significant progress on our goal to use 100% clean and renewable energy for our data centers, with over 90% of our energy consumption today now covered by renewable sources. We were recognized by the U.S. EPA for our leading green power use, ranking number four on the EPA's national top 100 partners list, and receiving the Green Power Leadership Award for the third consecutive year, recognizing our contribution in advancing the development of the nation's voluntary green power market. During the quarter, we also announced the addition of Sandra Rivera to our board of directors and the hiring of Justin Desaide as our new CTO. We are thrilled to add their deep and diverse experience as world-class technology leaders as we continue to refine and expand our vision for the future of Platform Equinix. Turning to the quarter, as depicted on slide three, revenues for Q3 were $1.397 billion, up 8% year-over-year. Adjusted EBITDA was up 9% year-over-year, and AFFO was ahead of our expectations, excluding FX and FX-related impacts. Interconnection growth, again, outpaced co-location revenues, growing 13% year-over-year, driven by solid traction across all interconnection products and particularly strong momentum across our cloud exchange fabric. These growth rates are all on a normalized and constant currency basis. In October, we closed our first hyperscale JV, a greater than $1 billion deal with GIC, the Singaporean sovereign wealth fund, This is a strategic milestone for Equinix, enhancing our ability to respond to the rapidly expanding needs of the world's largest cloud and hyperscale companies while strengthening our leadership in the cloud ecosystem. We look forward to launching similar JVs in other operating regions and believe these efforts will continue to further differentiate Equinix as the trusted center of a cloud-first world. We now have over 356,000 interconnections, adding more per quarter than our top 10 competitors combined. In Q3, we added an incremental 8,500 interconnections with high gross ads from both enterprise and network segments accompanied by lower-than-expected churn. We also surpassed 20,000 virtual connections, more than 5% of our overall count, and we expect these connections, which are dynamic and operationally efficient, to accelerate as customers leverage the capabilities on our SDN-enabled ECX fabric. With over 1,800 customers now on ECX Fabric, we're seeing the strong ecosystem effects driven by expanding use cases, including WAN re-architecture, distributed data, and rapid adoption of hybrid cloud across an increasingly rich range of cloud destinations. We also saw growth of our internet exchange in existing and new markets, with 27% year-over-year increase in IX provision capacity. Our newly launched Network Edge product is generating strong market interest with a robust pipeline. This offer provides enterprises a faster and more efficient way to deploy virtual network services at Equinix, including routers, firewalls, and load balancers from their technology providers of choice, including Cisco, Juniper, and Palo Alto networks. Now let me cover highlights from our verticals. Our network vertical experienced record bookings, led by the major telco subsegment and significant global NSP reseller activity as we partner with global providers to evolve their architectures and serve rapidly expanding enterprise demand. New wins and expansions included Silicon Networks, a leading fiber optic provider, optimizing network to support growing customer demand, and Telia, a Nordic provider extending coverage with regional edge deployments. Our financial services vertical achieved robust bookings and strong new logo growth with an uptick in the banking subsegment as firms continue to embrace digital transformation. Key new wins included Sterling Bancorp, re-architecting the network to securely connect to partners, and a U.S. exchange startup leveraging the depth and reach of our expansive electronic trading ecosystem. Our content and digital media vertical produced solid bookings led by strong growth in publishing, advertising, and video subsegments. New wins and expansions included a global social media firm upgrading infrastructure to support their growing product line, as well as a leading global ad tech firm transforming network topology to distribute and analyze data. Our cloud and IT vertical continues to over-index with strength in the security sub-vertical, as well as a strong increase in ECX fabric participants as cloud consumers diversify towards hybrid and multi-cloud architectures. We continue to lead in cloud connectivity with over three times as many metros with multi-cloud on-ramps as our nearest competitor. Our enterprise vertical experienced diversified growth across professional services, retail, as well as notable strength in government. New wins included Pruitt Health, deploying on-platform Equinix to support its growing healthcare ecosystem, Steve Madden, re-architecting network and connecting to multi-cloud to better enable digital business, the Myers-Briggs Company, optimizing network and interconnecting to business partners to support data management requirements, as well as further expansions from Walmart, deploying distributed infrastructure to support AI use cases. And our channel team had another great quarter, accounting for more than 30% of bookings with 60% of this activity being going into our enterprise vertical as we use the reach and relationship of our partners to efficiently expand our addressable market. We saw partner wins across all end-user types, including insurance, federal government, banking, public utilities, and pharma, with network optimization and hybrid multi-cloud as key use cases. New channel wins this quarter included a multi-partner win with Presidio, F5, Microsoft, and Oracle for a large U.S. energy company supporting their data center consolidation and implementations of hybrid and multi-cloud access. Now, let me turn the call over to Keith to cover the results for the quarter.