Equinix's Q4 2024 Earnings: A Strong Finish to the Year

Equinix (EQIX), the global leader in digital infrastructure, wrapped up 2024 with a strong performance in the fourth quarter, capping off an impressive year marked by consistent growth and resilience. The company's earnings call on February 12, 2025, highlighted its ability to adapt and deliver in the face of market challenges, as well as its commitment to driving future growth.

Equinix reported full-year revenues of $8.7 billion, up 8% year over year, and adjusted EBITDA of $4.1 billion, with a 160-basis-point improvement in margins. AFFO per share, the company's lighthouse metric, grew 10% year over year. These impressive results were achieved on a normalized and constant currency basis, excluding lower power costs passed through to customers.



Despite a significantly stronger U.S. dollar during Q4, which tempered the company's as-reported numbers and outlook, Equinix's team focused on executing against all variables within their control to deliver an exceptional quarter and strong outlook. The company's gross bookings in both Q4 and the full year were the best in its 26-year history, driven by solid pricing dynamics and strong execution across all three regions.

Equinix's xScale business, which focuses on high-performance compute and AI workloads, leased approximately 150 megawatts of capacity in 2024, nearly tripling the investment capital of the program. The company's channel program also delivered impressive results, with nearly 30% of bookings and more than 50% of company new logos for the year.

Looking ahead to 2025, Equinix expects revenue growth of 7% to 8% on a normalized and constant currency basis. The company also anticipates an adjusted EBITDA margin of approximately 49%, a 190-basis-point improvement over last year. AFFO per share is expected to grow between 9% and 12% in 2025. Capital expenditures are expected to range between $3.2 billion and $3.5 billion, reflecting the company's commitment to investing in its future growth.

Equinix's strong performance in Q4 2024 and its positive outlook for 2025 demonstrate the company's ability to adapt and thrive in a dynamic market. By focusing on executing against all variables within its control and investing in its future growth, Equinix is well-positioned to continue delivering value to its shareholders and meeting the needs of its customers in the years to come.