Equinix reported Q3 revenues of $540.5m up 11% year on year and 3% up on the previous quarter. Net income was $36.6 million.
Recurring revenues, consisting primarily of colocation, interconnection and managed services were $517.0m for the third quarter, a 3% increase over the previous quarter and a 12% increase over the same quarter last year. Non-recurring revenues were $23.5m in the quarter.
Income from operations was $108.6m for the third quarter, a 3% decrease from the previous quarter and a 13% increase over the same quarter last year. Adjusted EBITDA, for the third quarter was $245.2m, a slight increase over the previous quarter and a 7% increase over the same quarter last year.
Capital expenditures were $171m, of which $130m was attributed to expansion capital expenditures and $41m was attributed to ongoing capital expenditures.
Churn for the third quarter was 2.5%, up from 2.4% for the previous quarter and in line with prior guidance.
"Equinix delivered its 43rd quarter of revenue and adjusted EBITDA growth, with healthy demand in our target markets as evidenced by the strong interconnection growth, operating margins and firm MRR per cabinet globally," said Steve Smith, president and CEO of Equinix. "In addition, we had a number of strategic wins in our cloud vertical, including a multi-site partnership with Microsoft Azure, that leverages our unique global platform, network density, and customer base to enable the hybrid-cloud deployments of the future, further widening the moat around our business."
Cost of revenues were $273.0 million for the third quarter, a 2% increase over the previous quarter and a 9% increase over the same quarter last year.
Selling, general and administrative expenses were $158.5 million for the third quarter, a 7% increase over the previous quarter, primarily attributed to professional fees related to the REIT conversion, and a 16% increase over the same quarter last year.
For the fourth quarter of 2013, the Company expects revenues to be in the range of $559.0 to $563.0 million
The company appointed Ihab Tarazi as chief technology officer (CTO). Tarazi joins Equinix from Verizon where, as vice president of Enterprise Network Services. He will be responsible for Equinix International Business ExchangeTM network operations, platform strategy, leading the next generation technology and innovation function and contributing to the company's cloud initiatives.
