Equinix has reported its Q3 profits topped analysts' expectations and has predicgted that Q4's revenue will also be higher.
Despite the Covid-19 pandemic, Equinix says its business has been insulated due to being designated essential by authorities the world over. Its data centers are still operating with staff working on-site while other corporate staff work from home.
Good news despite Covid-19
"The full impact of the COVID-19 pandemic,” the company said, “on the Company's financial condition or results of operations remains uncertain and will depend on a number of factors, including its impact on Equinix customers, partners, and vendors and the impact on, and functioning of, the global financial markets."
Revenue in Q3 rose by almost 9 percent, year over year, to $1.52bn, beating a prediction of $1.5bn. Now the company expects revenue in Q4 to be as high as $1.569bn, more than its forecasted $1.55bn.
Funds from operations per share came in at $6.48, beating Wall Street's expectation for $4.40 per share in Q3, while annual funds are expected in a range between $24.38 to $24.61; beating forecasts for $16.79 per share.
Equinix expects Ebitda (earnings before interest, taxes, deprecation, and amortization), to grow this quarter from $685m to $705m. This is due to repairs, maintenance, and utility expenses including COVID-19 related costs.
The Q2 report by Equinix back in July hinted at the company’s success last quarter as well.
The company reported that revenue was up two percent in Q2, while at the same time operating income rose 11 percent and operating margins to 19 percent.
Previously it was uncertain whether the company would be experiencing a delayed impact from Covid-19 which could cause a knock-on effect on Equinix's future revenue.
Charles Meyers, President and CEO, said: “As businesses navigate the economic, health, and societal changes happening in the world, Equinix is in a unique position to help our customers adapt, respond and accelerate their digital transformation – a key driver for economic recovery. Companies in every sector are embracing digital transformation as a critical business priority, and we are well-positioned to help our customers scale with agility and create a digital advantage.
"We continue to invest in our strategy, evolving our platform in response to evolving customer needs, expanding our global reach to accelerate digital delivery, committing to a more sustainable future and ensuring that our culture is widely recognized as a place that attracts, embraces, inspires and develops exceptional and diverse talent.”
