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 any objections, please disconnect at this time. I would now like to turn the call over to Philip Koneczny, Senior Vice President of Finance. You may begin.

Good afternoon and welcome to our Third Quarter Conference Call. Before we get started, I would like to remind everyone that some of the statements that we will 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, as well as those identified in our filings with the SEC, including our most recent Form 10-K, filed on February 12, 2025, and our most recent Form 10-Q. 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 our policy not to comment on its financial guidance during the quarter unless it is done through an explicit public disclosure. On today's conference call, we'll provide non-GAAP measures. We provide a reconciliation of those measures to the most directly comparable GAAP measures and a list of the reasons why the company uses them in today's press release on the Equinix Investor Relations 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 currently available information. With us today are Adair Fox-Martin, CEO and President, and Keith Taylor, Chief Financial Officer. Following our prepared remarks, we will be taking questions from sell-side analysts. At this time, I'll turn the call over to Adair.

Thank you, Philip. Hello, everyone, and a very warm welcome to our Q3 2025 earnings call. Equinix delivered a very strong third quarter, a performance that continues to demonstrate our ability to rapidly invest in significant expansion whilst growing our top line and improving profitability. This performance was underpinned by three highlights. First, top line growth. We are seeing continued revenue acceleration, delivering MRR growth of 8% year over year on a normalized and constant currency basis. Further, we also achieved record annualized growth bookings of 394 million, a meaningful 25% increase year over year and up 14% over Q2. Importantly, this accelerated growth comes from a highly diversified set of customers across geographies, industries and segments. Second, profitability. We again delivered strong adjusted EBITDA margins for the quarter and ASFO was up 12% year over year on a normalized and constant currency basis. This was better than expected and reflects strong flow through of our operating results favourable net interest expense and timing of recurring capex spend. As a result, we are raising our adjusted EBITDA, AFFO and AFFO per share guidance for the full year. Third, expansion. Given the strong demand backdrop, we are advancing our build bolder strategic move where our intent is to double capacity by 2029. We have recently closed on substantial land acquisitions in our greater Amsterdam, Chicago, Johannesburg, London, and Toronto metros, which will support over 900 megawatt of retail and X-scale capacity. These results indicate that our strategy is gaining even more traction and resonating with our customers as we continue to deliver differentiated infrastructure, products, and levels of service. On the topic of customer resonance, we achieved significant momentum in Q3, closing over 4,400 deals with more than 3,400 customers. This volume reflects continued demand for a wide variety of latency-sensitive AI and non-AI workloads, supporting significantly increased data residency and sovereignty requirements, and delivering seamless connectivity to distributed data sources. Our rich ecosystems continue to proliferate across a variety of sectors, including key verticals such as automotive, financial services, networks, as well as cloud and AI service providers. Hyundai Motor Group, for example, runs its proprietary H-Cloud platform at Equinix. Using Equinix Fabric, Hyundai connects to multiple cloud providers in Asia Pacific, the US, and EMEA. This enhances customer experience and improves service quality for over 10 million Hyundai connected car subscribers worldwide. Zetaris, an AI data lakehouse platform provider, relocated its AI workloads to Equinix. Using Equinix's distributed AI infrastructure, Zetaris is helping its customers develop agentic AI and other AI applications six times faster and at a third of the cost. ING is making a strategic shift by migrating its core banking infrastructure in Germany to Equinix, showcasing our ability to help customers meet strict regulatory standards and requirements. Nitori, the largest furniture and home furnishing chain in Japan, with over 1,000 stores across Asia and the US, partners with Equinix to connect its Osaka and Tokyo operations with low latency to Oracle Cloud. This helps them simplify their network for future expansion and supports Nitori's growth objectives of tripling their branches worldwide. In addition, we saw continued momentum with key AI-related magnets and enterprises, including Ally Bank, Bristol Myers Squibb, Nebios, and Grok, amongst others. As I've shared in previous earnings calls, our strategy comprises three strategic moves orchestrated across the business to accelerate our expansion, innovation, and profitable top-line growth. we continue to deliver strong results and see accelerating momentum against each. The first strategic move is serve better. As evidenced by our recent customer wins, serve better is rooted in delivering value to customers at every stage of their engagement with us. Customers are increasingly looking to secure both their immediate and their long-term infrastructure requirements. This robust demand profile resulted in our record 394 million of annualized growth bookings in Q3. For clarity, this annualized growth bookings number represents the bookings we expect to start generating revenue within the next 90 days. Additionally, we have a pre-sold balance totaling 185 million of annualized growth bookings. This pre-sold cumulative balance will start generating revenue beyond 90 days. As of yesterday, we have closed more than 40% of our Q4 bookings plan. We have ample pipeline to achieve our Q4 bookings targets and to build momentum heading into 2026. Our second strategic move, Solve Smarter, is focused on simplifying the consumption of our solutions and extending the value of our leading interconnection capabilities. Our interconnection products had an exceptional quarter. We added 7,100 net physical and virtual connections in Q3, bringing our total to more than 499,000 Interconnection revenue grew 8% year-over-year on a normalized and constant currency basis to $422 million, driven partially by a 57% year-over-year increase in our fabric bookings in Q3. We also added two new native cloud on-ramps in Barcelona and Dubai, adding to our market-leading share of native private cloud on-ramps. These results highlight the critical importance of low latency and proximity to end users and our ability to deliver it as both enterprises and service providers manage their distributed architectures. In September, we unveiled our distributed AI infrastructure solution. This includes a new AI-ready networking backbone and fabric intelligence software designed to support enterprise inferencing workloads. We showcased these capabilities at our first AI Summit, together with key partners and industry leaders, including NVIDIA, Dell, Grok, HPE, Adobe, Xeo, Zoom, and WWT. Our customers and partners provided use cases to highlight how Equinix is uniquely positioned to comprehensively deliver on their demands and requirements at enterprise level. And finally, Build Boulder. Through Build Boulder, we are both accelerating and innovating the delivery of capacity around the world and securing our future through strategic land acquisitions. As mentioned earlier, we are excited to announce that we have recently closed on land acquisitions in several high demand markets to serve customer demand across both our retail and X scale businesses. This brings our total development capacity to approximately three gigawatts, and nearly 50% increase from last quarter. These are the latest steps towards doubling our available capacity in the next five years. Since our last earnings call, we added seven new projects, including our Dallas 12 development, which is expected to deliver roughly 3,700 cabinets or approximately 67 megawatts of capacity to this key metro. We now have 58 major projects underway globally, including 12 X-scale projects. 20% of our retail capacity has been considerably accelerated from the initial delivery date. We also opened our 77th market in Chennai, India, as we continue to invest in this fast-growing region. More than 75% of our retail expansion is in major metros, and more than 90% of our expansion capex is on owned land or where we have long-term ground leases. Our stabilized cash-on-cash return expectations for these retail expansions are approximately 25%, which is consistent with our existing portfolio. Our North American JV continues to show exciting progress with the closing of our Chicago land acquisition, which we anticipate will be contributed in large part to our XScale business in 2026. In addition, we are in late stage negotiations for the lease of the entire capacity at our Hampton campus with potential XScale customers. The overall demand picture for our X-scale business remains robust as key players continue to seek capacity in major metros, aligning with our X-scale strategy. As our results show, we are consistently delivering on the immediate needs of our customers and the expectations of the market, whilst expanding our saleable capacity in anticipation of even greater sustained long-term demand. and we are doing this very profitably. We have been built for this opportunity and we will continue to build for it. Let me now turn it over to Keith to share more on the quarter and our Q4 outlook.