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 would now like to turn the conference over to Katrina Reimel, Vice President of Investor Relations and Sustainability. You may begin.

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're 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 19, 2021, and 10-Q, filed on July 30, 2021. 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 regulations for disclosure, it is Equinix's policy not to comment on this 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, the most directly comparable GAAP measures, and a list of the reasons why the company uses these measures in today's press release of 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 self-signed 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.

Thanks, Kat. Good afternoon, everybody, and welcome to our third quarter earnings call. We had a great quarter, achieving our 75th consecutive quarter of top-line revenue growth and a record Q3 on bookings, a clear signal of strong market demand. Our results were fueled by continued strength in our American business and robust performance for our channel program globally as key partners continue to see platform mechanics as a point of nexus for digital transformation solutions. The pandemic has triggered an accelerated need to digitize business models in virtually every segment of the economy, and our strong results reflect this increasing demand for digital infrastructure. And Equinix remains uniquely positioned to help customers as they shift towards distributed, hybrid, and multi-cloud as the clear architecture of choice. As we continue to strengthen our position as the world's digital infrastructure company, our focus remains on creating distinctive and durable value for our customers and our shareholders, driving growth and scale in our market-leading co-location franchise, expanding our relevance to the cloud ecosystem through Xscale, and tapping into massive sources of incremental demand by adapting to evolving customer needs with our rapidly growing digital services business. Turning to our results as depicted on slide three, revenues for Q3 were $1.7 billion, up 8% year over year. Adjusted EBITDA was up 4% year over year, and ASPO was in line with our expectations. Interconnection revenues continued to outpace co-location revenues, growing 11% year over year, driven by solid physical cross-connect growth and broad adoption of Equinix Fabric. These growth rates are all on a normalized and constant currency basis. We process more than 4,200 deals in the quarter across more than 3,100 customers, highlighting the reach, scale, and predictability of our bookings engine. We have a solid demand pipeline as we look to the final quarter of the year, and we continue to add capacity to service this demand with 11 major projects delivered this quarter in key markets like Frankfurt, New York, and Singapore, and 31 more major projects underway across 23 markets in 16 countries. Our global interconnection franchise continues to thrive with over 414,000 total interconnections on our industry-leading platform. In Q3, we added an incremental 7,800 interconnections and now have at least one major cloud on-ramp in 42 metros around the world, two times more than the nearest competitor, a clear indication that Equinix is in the home of the interconnected cloud. Internet Exchange saw peak traffic up 6% quarter-over-quarter and 30% year-over-year to over 21 terabits per second, as traffic growth remains robust. Equinix Fabric saw excellent growth, continuing to significantly over-index within the broader interconnection portfolio. More than 2,800 customers are now on Fabric, with attach rates moving up and to the right as businesses diversify their end destinations and service providers integrate Fabric into their own solutions. In September, we extended platform equinix into our 27th country with the close of our GPX acquisition, entering the strategic Indian market. Our two data centers in Mumbai form a network-dense campus with more than 350 international and local companies, including six on-ramps to the world's leading cloud service providers and a robust network ecosystem. GPX represents an ideal entry point into this top 10 GDP country, and we expect to expand our operations significantly in India over the coming years as we tap into this rapidly growing market. In parallel with our tremendous retail success, we continue to expand our X-scale business, In October, we announced plans to expand into Australia with an agreement to establish a $575 million joint venture with PGIM Real Estate to develop two data centers in Sydney, which will provide more than 55 megawatts of capacity when fully built. Also, during the quarter, we closed the first phase of our previously announced EMEA II joint venture with GIC and signed two megawatts with a hyperscaler in Franklin. We currently have eight X-scale builds under development, including our newly announced Madrid III Mexico City 3, and Sydney 9 assets, which will collectively add 25 megawatts of capacity when they open in the first half of 2022. The total investment of our various hyperscale joint ventures, when closed and fully built out, is now expected to be more than $7.5 billion across 34 facilities globally with more than 675 megawatts of power capacity. Turning to our digital infrastructure services, our Equinix metal business saw strong revenue growth as cloud native and service provider customers continue to embrace the ability to deploy physical infrastructure at software speed. And NetworkEdge saw robust growth as established customers purchased more virtual network functions across additional metros. By year end, we expect NetworkEdge to be available in 25 metros around the world. So now let me cover highlights from our vertical. our network vertical continues to be a foundation for the business, with strength in the quarter in cable and satellite subsegments and continued momentum in joint go-to-market with our top network partners across the globe. Expansions this quarter included Xeover, a global communications infrastructure company, adding interconnection and co-location capacity to support demand. Vocus, Australia's leading specialist fiber and network solutions provider, building infrastructure between both Sydney and Melbourne to offer network services. And Hurricane Electric, a global network service provider, utilizes Antiquities Fabric to allow enterprise customers to access their IP transit product at scale and in real time. Our enterprise vertical saw another strong quarter, led by manufacturing and fintech and record channel activity. New wins and expansions included a Fortune 100 manufacturing company deploying global network hubs to enable their SaaS analytics offerings. a leading technology manufacturer deploying a custom liquid-cooled environment and solution center to support the next generation of high-performance compute, and a Fortune 250 online retailer and e-commerce platform deploying cross-platform mechanics with low-latency, cloud-adjacent network hubs to support their retail-branded sites. Our cloud and IT verticals saw particular strength in the Americas as industry-specific cloud solutions continue to be a catalyst for innovation and new growth. Expansions this quarter included Adobe, a leading cloud software provider, deploying infrastructure to support its platforms and optimize sustainable participation in key digital markets and ecosystems. Wasabi, a U.S.-based object storage company, expanding their offering on Equinix Fabric into APAC and EMEA, enabling customers to easily connect their bare metal workloads hosted on Equinix Metal. And a top five global software provider, employing core nodes to support their growing user base and demand in both Mexico City and Sao Paulo. Content and digital media had a great book this quarter, with resurgence in this vertical being led by APAC and broad-based strength in the gaming and streaming subsegments as consumer demand for at-home digital services remained strong. Expansions this quarter included Netflix, a global streaming service expanding cross-platform equities to new and existing markets to support OTT delivery. Kingsoft, a Chinese cloud provider expanding into Singapore to support rapid sales growth, and a top three content distributor extending coverage and scale for its growing platform in the delivery of new and existing security solutions. And our channel program continues to shine, delivering another robust quarter. This important go-to-market notion accounted for over 35% of total bookings, nearly half of our enterprise bookings, and more than 60% of our new logos in the quarter. we are benefiting from tremendous momentum in hybrid cloud adoption and seeing particular strength in joint enterprise pursuit with our key alliance partners such as AT&T, AWS, Dell, HPE, and Microsoft. Wins were across a wide range of industry verticals and included a marquee win with NVIDIA, IBM, and SBA for Continental Group, a worldwide automotive parts supplier building an interconnected global network to optimize workloads and speed up AI training for their advanced driver assistance systems. So now let me turn the call over to Keith and cover the results for the quarter.