Equinix Sees Revenue Growth Despite EPS Shortfall

Equinix, a major name in digital infrastructure, has announced its fourth quarter earnings for 2024 on February 12, 2025. The company's revenue reached $2.26 billion, slightly below the expected $2.27 billion, yet still represents a 7.1% increase compared to the same period last year. During this quarter, Equinix reported a loss of $0.14 per share. Despite this, the adjusted EBITDA margin improved to 45%, up from 44% in the same quarter the previous year, showcasing the company's operational efficiency.

Metric	Q4 2024	Q4 Estimate	Q4 2023	Y/Y Change
EPS	($0.14)	$2.67	$2.40	-105%
Revenue	$2.26B	$2.27B	$2.11B	+7.1%
Adjusted EBITDA Margin	45%	N/A	44%	+1 p.p
AFFO per Share	$7.92	N/A	$7.30	+8.5%

Equinix operates 268 data centers worldwide, playing a crucial role in connecting businesses and enabling secure digital operations. The company is focused on expanding its global reach, enhancing interconnection capabilities, and pursuing sustainability initiatives.

In Q4 2024, Equinix experienced marked progress, notably a 9% growth in its interconnection services. This growth aligns with the overall global trend toward increased digital connectivity. Despite a slight revenue miss compared to management's earlier projections, the total revenue for 2024 amounted to $8.748 billion, confirming the strong demand for Equinix's services.

Financially, while the adjusted EBITDA margin increased to 45%, operating income faced an 8% decline due to $314 million in one-time expenses related to asset impairments and restructuring efforts. These charges adversely impacted net income as well. Nevertheless, Equinix maintained a solid performance with an Adjusted Funds from Operations (AFFO) growth of 8.5%, reaching $7.92 per share.

This quarter also highlighted Equinix's strategic expansion, with 62 major projects currently underway, including 16 xScale developments aimed at boosting AI and hyperscale services. While these expansions are promising for future growth, they also require significant investment, which can pressure profitability.

Equinix has consistently delivered dividends, reaffirming its commitment to shareholder returns.

Future Outlook for Equinix

Looking ahead to 2025, Equinix's management is optimistic, forecasting revenue growth between 3% and 4% on a reported basis, and 7% to 8% when adjusted for currency changes. The company aims to further refine its adjusted EBITDA margins by 190 basis points. Strategic investments in AI infrastructure and sustainability initiatives will remain key areas of focus.

Investors should closely watch Equinix's adaptability to changing energy trends and measure its operational efficiency amid industry challenges. The successful execution of expansion strategies, particularly around AI, will be essential for harnessing potential opportunities while managing associated risks.

Equinix, EPS, Revenue