What drove EQIX's earnings surprises in 2024?

Equinix Inc (EQIX) experienced an earnings surprise of -$2.89 in 2024, with a diluted EPS of $8.5, primarily due to:

1. **Currency Challenges**: Equinix faced a significantly stronger US dollar during Q4, negatively impacting its as-reported numbers and outlook. This foreign currency impact had a minimal negative effect in Q3 but became more pronounced in Q4, contributing to the earnings surprise. The company reported that currency fluctuations had a $6 million negative impact on revenues in Q2 and a $18 million negative impact for the year, indicating that the currency headwind intensified in the latter part of the year.
2. **Capacity Constraints**: Equinix faced capacity constraints in Tier 1 metros, which limited its ability to meet customer demand fully. This constraint, combined with the strong demand for its services, likely led to lost revenues and contributed to the earnings surprise. The company reported record gross bookings in both Q4 and the full year, with over 16,200 deals across more than 6,000 customers, suggesting that the capacity constraints were a result of the high demand rather than a lack of supply.

In summary, the earnings surprise at Equinix in 2024 was primarily driven by currency challenges and capacity constraints, despite strong revenue growth and strategic expansions.

|code|Ticker|Name|Date|Total Revenue|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|EQIX|EQIX.O|Equinix|2024 Q1|2.127E9|2.43|185|
|EQIX|EQIX.O|Equinix|2024 Q2|2.159E9|3.16|185|
|EQIX|EQIX.O|Equinix|2024 Q3|2.201E9|3.1|185|
|EQIX|EQIX.O|Equinix|2024 Q4|2.261E9||185|

|code|Ticker|Name|Date|Revenue Surprise|Revenue Surprise YoY|market_code|
|---|---|---|---|---|---|---|
|EQIX|EQIX.O|Equinix|2024 Q1|-1.3E7|-172.22222222222223|185|
|EQIX|EQIX.O|Equinix|2024 Q2|-1000000|50|185|
|EQIX|EQIX.O|Equinix|2024 Q3|0|-100|185|
|EQIX|EQIX.O|Equinix|2024 Q4|-2.0E7|-4189.97955010225|185|