Iron Mountain Incorporated

Good morning and welcome to the Iron Mountain third quarter 2024 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. And to withdraw your question, please press star then two. We will limit analysts to one question. You can rejoin the queue. Please note this event is being recorded. I would now like to turn the conference over to Ms. Jillian Tiltman, Senior Vice President and Head of Investor Relations. Please go ahead, ma'am.

Thank you, Chuck. Good morning, and welcome to our third quarter 2024 earnings conference call. On today's call, we'll refer to materials available on our investor relations website. We're joined here today by Bill Meany, President and Chief Executive Officer, and Barry Heitman, Executive Vice President and Chief Financial Officer. After prepared remarks, we'll open the lines for Q&A. Today's earnings materials contain forward-looking statements, including statements regarding our 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, and our quarterly report on Form 10-Q 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 Bill.

Thank you, Jillian, and thank you all for taking time to join us today to discuss our third quarter results. We delivered another excellent quarter with record results across all financial metrics of revenue, adjusted EBITDA, and AFFO. This is a direct result of the portfolio-based momentum we have built which will continue to deliver sustained double-digit growth. During the quarter, we achieved our highest ever quarterly revenue of $1.6 billion, up 12% from the prior year. We also set a new adjusted EBITDA record of $568 million, up 14%. In addition, AFFO per share on a normalized basis was $1.12, up 10% compared to the prior year. Given our strong performance year to date, we are now on track to achieve the high end of our full year 2024 guidance range. I'll now turn to an update of our key achievements during the quarter, which are grounded in the following strategic priorities. Driving continued revenue growth in our physical storage records management business. delivering differentiated digital solutions which give truly transformative results to our customers in terms of revenue, cost, and cybersecurity, providing asset lifecycle management capabilities which are both economic and environmentally sustainable, and supplying differentiated data center offerings through our global scale and customer trust. Now let me highlight some important wins from the quarter that showcase how we demonstrate the power of our platform. Let's begin with our records and information management business. In Australia, a large government department was looking for a partner that could provide a number of services. We earned their trust and signed a seven-year contract delivering storage, digital solutions, and asset lifecycle management services. Turning to our digital solutions business, This quarter, we launched our Insight Digital Experience, or DXP, a SaaS-based platform. DXP allows customers to automate the generation of metadata, as well as having the ability to access, manage, govern, and monetize physical and digital information. We launched this enhanced platform on the 1st of August, and we have already booked 24 recurring revenue deals. I'll speak to two existing customer wins where we cross-sold our DXP offering. Let's start with a customer in Mexico. Due to new requirements in the country for all pension information to be digitized, a long-standing customer turned to Iron Mountain to swiftly gain compliance. We have secured a DXP contract with this large financial services company to sort, digitize, and manage their pension records over the next 12 months comprising more than 50 million images. Secondly, in the U.S., a large healthcare company that is an existing records management and ALM customer will leverage our DXP platform to manage a complex set of multi-format records. By digitizing and migrating this data into our DXP platform, our customer will be able to manage their records more effectively, including the elimination of ineligible claims. This is an example how the power of our DXP platform drives value for our customers and our unique ability to support their physical and digital information management needs. Turning to our asset lifecycle management business, we are pleased with the progress we are making to expand our capabilities and geographic footprint. In Australia, a telecommunications provider needed services for the secure destruction and disposal of e-waste and IT assets. Given our nationwide scale, this customer determined that we are the right partner for handling a high volume of IT hardware efficiently. As a result, Iron Mountain was awarded a recurring contract for these services. In the U.S., our expanded footprint and capabilities following our acquisition of Regency Technologies has resulted in a significant ALM contract with a global technology company. Under this agreement, we will be managing all IT asset disposition services for our customers' U.S. operations, in addition to the records management services that we already provide. The strength of our logistics capabilities was a major factor in winning this contract. Consistent with our strategy to significantly grow our presence in the large and fragmented enterprise asset lifecycle management space, we are pleased to announce the acquisition of WiseTech, an end-to-end IT asset disposition company, which will provide us with an expanded footprint across Europe and the United States. We also completed the acquisition of APCD, a leading Australian IT asset disposition specialist. These acquisitions will enable us to continue to expand our reach across a number of categories. Turning to our data center business, I would like to share two examples that demonstrate the continued demand for capacity at our campuses across the world. In Virginia, our team won a second two megawatt deal with a global technology company, building on a similar deal with this customer at our data center in Pennsylvania earlier this year. In Arizona, we are supporting a global FinTech provider to migrate from an internal data center in a 1.5 megawatt deal with scope for further expansion. Our compliance program was a deciding factor for this highly regulated customer. The leasing achieved in the first three quarters brings us to 106 megawatts compared to the increased guidance for the year of 130 megawatts. To conclude, I'll leave you with three key takeaways. Our strategy is built on the strength of our portfolio of growth businesses, including digital solutions, data center, and asset lifecycle management, each growing at a CAGR of 20 plus percent. This, coupled with the mid to high single digit growth of our records management business, will continue to deliver consolidated growth in excess of 10% for years to come. This growth is sustained and resilient given it is based upon a portfolio of products and services that meet the current and future needs of our customer base of nearly 250,000 customers, including 95% of the Fortune 1000. And the cornerstone of this strategy is our company's DNA of placing our customers' needs and well-being at the heart of how we serve them. This is all thanks to our dedicated team of Mountaineers. With that, I'll turn it over to Barry to provide more details on our financial results and outlook.