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Equinix Inc NaREIT Conference Presentation June 2023.pdf

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Equinix NAREIT REITWeek Investor Forum 2015

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FINAL TRANSCRIPT 2023-06-06 Equinix Inc (EQIX US Equity) Page 1 of 12 , Chief Accounting Officer , Analyst, BMO Capital Markets Unidentified Participant Ari Klein Simon Miller Q - Ari Klein Nareit REITweek: 2023 Investor Conference Company Participants Simon Miller Other Participants Ari Klein Presentation {BIO 20700210 <GO>} All right. Thank you all for joining us. I'm Ari Klein, Data Center analyst at BMO. We're pleased to have Equinix presenting here. And, to my left is Simon Miller, Chief Accounting Officer at Equinix. Maybe if you can just give a brief introduction on yourself, and then, I'll kick-off the Q&A. {BIO 1764376 <GO>} Yeah. You bet. So, I've been at Equinix for about 12 years. Started supporting Charles Meyers, who was then President of the Americas, he went on to be the COO and now the CEO of the company, spent another five years supporting Karl Strohmeyer who is the -- more recently the CRO with the company. Have spent time in-region as the Americas Finance VP, running commercial aspects of deal review, accounting, billing, credit collection, and financial planning. And, since taking over as CAO for the last five years, it's been more of a journey about globalizing the entire finance function. So, I spend a little less time on the commercial side of the business, but a ton of time in leadership meetings, talking about the strategy, how we're pursuing and how we're delivering against those expectations. So long-time, seen the company grow quite a bit. Back then, we used to talk about what you got to believe in 2011, used to talk about what you got to believe to get this to a $3 billion year company and here we are 12 years later sitting at about $8.2 billion. So, tremendous journey. Questions And Answers {BIO 20700210 <GO>} Thanks for that. And for those unfamiliar, maybe if you can provide a bit of an overview of Equinix. What differentiates the company, and why investors should consider investing in Equinix today?
FINAL TRANSCRIPT 2023-06-06 Equinix Inc (EQIX US Equity) Page 2 of 12 A - Simon Miller Q - Ari Klein A - Simon Miller {BIO 1764376 <GO>} Yeah, sure. While we're a traditional REIT, in a lot of senses, we're not traditional in terms of our overall business plan. We think of Equinix, its datacenters, and its suite of digital services more as a platform. We focused really since day one on our founding, on network neutral interconnection. And so you hear us talk a lot about the value of interconnection. And what that means for us when we're building out business cases for development of new properties -- (Technical Difficulty) is this good, you want this closer? You bet. When we're evaluating new projects, we really focus on what type of interconnection density can we drive and expanding on that. So, we don't build a ton of data centers with a lot of density and megawatts. We focus on access to pops and the critical applications that are low-latency sensitive for our customers. And we found through churn rates over the years that those types of deployments are the most sticky, and that's why customers come to Equinix, its access to the carriers, access to the Internet, nowadays, access to cloud providers and on-ramps. In the future, probably, access to AI as well. But through all of the waves of digital transformation across the industry, I would say that Equinix has played a key role in the delivery of those services. {BIO 20700210 <GO>} Got it. So globally, Equinix has datacenters in 71 metros in 32 countries. What are some of the benefits of having a global platform, and how is Equinix thinking about expanding further in international markets? And maybe, what are some of those markets that you could look to enter? {BIO 1764376 <GO>} Yeah. For sure. That's a great question. So, the benefits are that, when you look at our customer base, the majority of our customers are greater than $150 million in revenue. A lot of our customers greater than 65% are -- you know, utilize our entire regional platform as well. And most of them -- most of our customers or at least, what I would say is multi-market. So, the more that we globalize, the more ability that we have to capture market share or wallet share for our customers as they expand globally. And most of the time when we expand into new markets, it's because a customer has been asking us for a couple of years that that's where they want to pin the flag on the map for their next deployment. So, we spend a ton of time talking to our customers, but not just talking to our customers, because they would tell you they want you everywhere globally that they even maybe aren't even thinking of being today. But we always kind of cross-reference that with availability of power and availability of the telco -- telecommunications infrastructure there, because again, it all ties back to our strategy of being the platform of interconnection to deliver not just co- locations, but a host of digital services on-top of that. And to do that, you need
FINAL TRANSCRIPT 2023-06-06 Equinix Inc (EQIX US Equity) Page 3 of 12 Q - Ari Klein A - Simon Miller Q - Ari Klein A - Simon Miller Q - Ari Klein access to power, you need access to space expansion and really good physical infrastructure. So, with a lot of the dynamics going on in Asia, you'll hear us talk about continuing our investments in like, Indonesia, in Malaysia and in India. A lot of our customers for years have been asking us to look into those locations. And given some of the power constraints and other constraints in Hong-Kong and Singapore, we're kind of speeding that up a little bit. Africa, South Africa, we recently announced an investment in Joburg, we'll probably continue to look in West Africa. We don't have anything specific, but again, more customer questions and requests for us to explore there. And then some -- maybe a little less important, but I'd say equally strategic is Latin America. {BIO 20700210 <GO>} Got it. And when you're looking to grow the platform internationally or just the platform overall, how do you balance organic growth with M&A? {BIO 1764376 <GO>} Yeah. That's a good question. {BIO 20700210 <GO>} How do you choose between the two? How are you thinking about that? {BIO 1764376 <GO>} When we're going into an entirely new geography, an entirely new market, we prefer to buy our way in, quite honestly be in, and keep that management team on-board for a longer than normal integration period. So not just a couple of months, right. We really want to leverage their local knowledge, we want to leverage their existing contract structure, and really just how to do business locally. In some of the markets that we're getting into, it's not as crystal clear as maybe some of the traditional markets that we've gotten into in Europe and certainly in the US. And there's not like a bright line of like here is when you get your access to power, here is when this permit clears. And so, when having that local expertise is just hugely important. And I expect that we'll continue to do that. We've made a couple of, what I'd say are small bets, but like if you -- if you look at what we just announced in Johor, we're really leveraging off of our local team. You could throw a rock and basically hit the new development site compared to our existing Singapore assets are. So, where we can leverage the local talent, that's already in-place in Equinix, we'll continue to do that. But it would definitely -- it's definitely our preference when we're going into new geographies to acquire our way in there, and then maintain management for a period of time. {BIO 20700210 <GO>} Is the strategy the same in the xScale piece of the business? I think there you pretty much, you've leveraged your JV partners and you've grown organically. Could M&A
FINAL TRANSCRIPT 2023-06-06 Equinix Inc (EQIX US Equity) Page 4 of 12 A - Simon Miller Q - Ari Klein A - Simon Miller ever be a part of that piece of business? {BIO 1764376 <GO>} For sure, yeah. I think it could be. It's going to depend on the multiples that are out there right now. Some of the multiples on the sell-side are still in excess of what the public multiples are. But once that sort of evens out, I would expect that we would look at that type of expansion, the same way that we do on the retail side of the business. {BIO 20700210 <GO>} Got it. Taking a step back, how demand -- the demand drivers for the datacenter business evolved over the years and to what extent will those be different over the next few years? {BIO 1764376 <GO>} Yeah, boy, AI comes to mind. That's a new one. And we have yet to see how that materializes at a project-level for Equinix directly. I mean, there's a lot of heat going to the hardware vendors right now as I think people queue-up to make sure that they're getting whatever allocations of chipsets, GPUs and other hardware. But gosh, for Web 1.0, then Web 2.0, and then the increase to cloud, these are all just huge shifts in the market where Equinix was at the right place, at the right time with the white -- right suite of -- of services to deliver against those applications. And I think we got a little bit more of a boost unexpectedly from the pandemic as well. That kind of -- the digital transformation, I think that's going on right now in the enterprise is bigger one as I've seen since I've been at Equinix. And boy, back about eight, ten years ago, it was a little bit cloudy, and we were wondering where we existed in that space, because there were a lot of companies that were founded in the four walls of Equinix, companies like Facebook or Yahoo that deployed their own hardware, inside of Equinix. But that was back when they were getting Series A funding in the hundreds of millions of dollars and now investors are investing in the tens of millions of dollars and people are leveraging cloud-based architectures to deliver that stuff. That was a threat to our business model at the time. So, we invested heavily and focused heavily on focusing on the enterprise's transformation in that digital world and pursuing as many cloud on-ramps as possible and cable landing stations as possible, so that no matter what it still came down to delivering and interconnection platform that provided value. Not just for the cloud or other SaaS providers or IaaS providers, but also for the enterprise. Well, if you fast-forward here another almost ten years and enterprise bookings were relative to what they were ten years ago, are an immense increase for us. And it's the other side of now investing in that hybrid cloud model, which is now the flywheel is going, and you're seeing companies like SAP or Oracle. They're no longer signing on-prem licenses for their software. They're moving everybody to cloud-based architectures, that means they're going to have to move all their boundary systems,
FINAL TRANSCRIPT 2023-06-06 Equinix Inc (EQIX US Equity) Page 5 of 12 Q - Ari Klein A - Simon Miller Q - Ari Klein A - Simon Miller in some way, shape or form to that cloud-based architecture. And Equinix is getting an unfair advantage of that. And I think we saw a little bit of an acceleration of that during the pandemic as well as more folks were looking to ensure that a big chunk of their workforce could be serviced remotely. {BIO 20700210 <GO>} Got it. You briefly mentioned AI. It's clearly emerged as a pretty big theme more recently. {BIO 1764376 <GO>} Yeah. {BIO 20700210 <GO>} How is Equinix positioned to capitalize on some of the AI trends? How early days are we? And within your business, where do you see the most opportunity? Would it be on the retail co-lo side or maybe on xScale? {BIO 1764376 <GO>} Yeah. It still feels very early, although I will say this pressure wave feels a little more ubiquitous than other recent trends like 5G or Edge datacenters and Edge computing. It feels like everyone's is going to participate whether it's the hyperscalers doing offerings or the enterprise utilizing those offerings and creating their own unique brands of AI for either their own customer set or internal-use. But it's still early in terms of seeing how it's all going to be sort of frame-worked and projectized. I think there's a run on the hardware stuff early on here, and there is a fair amount of training that needs to happen at the bot level for a period of time before something is released to production, whether that's for internal use or external use. I still think there's a lot to figure out there. But whether it's a training module or inference, I feel like Equinix is uniquely positioned to take advantage of that, in either case on the training side that's heavy compute and storage, it's more likely that we'll deliver in xScale solution in that world. And with -- given our focus on the top hyperscalers in the world, we will have a as good a shot if not a better shot than others of taking down the business that we see as strategic in that space, not every opportunity that's out there, but ones that we think are viable in long-term. And then, when we get to a larger portion of delivery being inference, I think that Equinix will again get its -- an unfair share of the opportunities out there, just simply because of how interconnected we are, and the fact that however you deploy that final solution for AI, it's going to need low-latency and proximity to the carriers and to other service providers in the datacenter to ensure that you get the best throughput. And in those situations our -- Equinix wins, right? I mean, it's just that's been our mantra since our founding, and it's been a huge driving force in our strategy holistically.
FINAL TRANSCRIPT 2023-06-06 Equinix Inc (EQIX US Equity) Page 6 of 12 Q - Ari Klein A - Simon Miller Q - Ari Klein A - Simon Miller Specifically, how it happens, sorry, I don't know. Check back in a year, something tells me that this will all actually materialize a lot faster than may be other paradigms have. It seems like there's a lot of money and momentum behind it. And I think there's a lot of enterprises specifically looking to get scale and leverage out of AI. And in a world of increasing interest rates and inflation, that's just going to be even more of a catalyst to see things happen here. {BIO 20700210 <GO>} Are you seeing those types of deals kind of start flowing through the pipeline, or is it even too early? {BIO 1764376 <GO>} Yeah. It's a little too early. I think you're seeing a lot of banter about stuff like a potential deal that might show up. But, it is entirely possible though that like when we're talking about leasing large swaths of xScale footprint right now to hyperscalers, that really we're talking to their infrastructure team. And it's hugely possible that embedded inside of that is some portion of that infrastructure that's going to be dedicated to AI. And they might -- they may not even know what it is, but if it's delivering some amount of a global SaaS office type of -- or office type allocate -- applications to the extent that they embed AI in that in the future, it could totally be on the table. {BIO 20700210 <GO>} Got it. On the demand side, it's been pretty healthy record, near-record bookings for a number of quarters in a row here. How sustainable is that in a tougher macro backdrop? We've heard cloud providers talking about slowing consumption in their businesses. How does that impact Equinix and what's the outlook, I guess in there? {BIO 1764376 <GO>} Yeah. We're definitely seeing customers sharpen their pencil a little bit. And as Charles likes to say, they're measuring twice and cutting once. But the overall pipeline still looks -- looks very healthy. We're seeing a few things slip, but no degradation or stuff falling out. You know, I've said this a lot today, and when I've met with investors in the past like, the digital transformation for enterprises, it's done, it's happening. There is a whole -- I mean, it's just very hard to find on-prem licenses for anything anymore, whether it's Infrastructure-as-a-Service or Software-as-a- Service, you have to have a hybrid cloud strategy going forward to either service your end-users and customers or your internal end-users and customers. And so, there is still a long tail on that. It's still very easy. I mean, if you were in Oracle shop internally, I just -- I got the notice two years ago. And every other customer that's on Oracle got that notice two years ago. And it's a specific negotiation with Oracle, how long you stay on the on-prem stuff. And if you are slower, thankfully, we were a little ahead, we started converting a lot of our applications to be cloud-ready like a year earlier. So, we were anticipating that Oracle would come to us. But there are other companies that, you know, they may have gotten that notice and they were caught flat-footed. And so, they're starting their journey a little later.
FINAL TRANSCRIPT 2023-06-06 Equinix Inc (EQIX US Equity) Page 7 of 12 Q - Ari Klein A - Simon Miller Q - Ari Klein A - Simon Miller Q - Ari Klein So, there's still -- gosh, it's hard for me to even look beyond five years and say, it's going to slow down there, because it's going to enhance over time, and once you build, let's say, you have to replace an ERP and get that cloud-ready, now you got to focus on all the boundary systems to make sure that not only do they work with that cloud solution, but that they scale with it -- that they scale with it. And that's -- there's going to be a lot of try and buy solutions out there and there's going to be winners and losers on those boundary systems. But all of that is going to -- it's going to end up with being some portion of the critical infrastructure for every enterprise to be in or adjacent to Equinix. {BIO 20700210 <GO>} Okay. And then, on the cross-connect side, we have seen net-adds come in a little bit. What's kind of driving that? How do you think about just the overall demand backdrop for cross-connects and interconnection overall? I think we've seen some grooming taking place. {BIO 1764376 <GO>} Yeah, definitely. {BIO 20700210 <GO>} Are we at kind of trough levels? {BIO 1764376 <GO>} Hard to predict that, because there's so many influencers going on right now, macroeconomically, that's a big one in volatility. I would say even though we don't disclose it or -- and give a number externally, the gross adds continue to be really healthy and strong. We look at overall traffic on the Internet, Ethernet exchange as well, and that continues to be extremely robust. So, other than how it all nets out, we're still seeing good leading indicators that it continues to be a strength of the business. I would say that, given some of the probably budget challenges that some of the companies have relative to inflation, they're probably looking a little bit harder at their footprints. So some grooming related to that, just general cost cutting in consolidation of internal footprints. And then on-top of that, we have M&A and people, grooming, as it relates to integrations on that side. And then just transfer from like a 100 megabytes to 10 gigabit for instance, and aggregation points on that. You buy one piece of glass, where you needed, maybe five before or fiber-optic connection, sorry. {BIO 20700210 <GO>} Keith likes to talk a lot about the net positive pricing actions in the business. Can you just talk a little bit about the pricing levers that you have, how much opportunity you see on the business to continue to push pricing, maybe where you see the most
FINAL TRANSCRIPT 2023-06-06 Equinix Inc (EQIX US Equity) Page 8 of 12 A - Simon Miller Q - Ari Klein A - Simon Miller opportunity. And is there -- has there been pushback just in this backdrop on some of those increases that you have for sure [ph]? {BIO 1764376 <GO>} Yeah. We're always very sensitive. For those who follow us, we just did a very large power price adjustment on our customers primarily in Europe. And so, there's still a lot of sensitivity out there in the market getting better than $350 million of revenue, just from that one thing. But we generally like to increase prices kind of subtly across various markets over a period of time. We have the luxury of having shorter contract terms than traditional wholesalers. So it's not -- we don't sign like a 15-year or a 20- year lease with our customers. We generally sign them up for three to five years on the initial contract. If they -- if we don't do a stated renewal, it auto renews for another year. At any point in time upon renewal, given specific market level dynamics and what competition is doing and prices locally, when we get to a renewal spot, we'll raise prices. But given the overall economic conditions that are going on right now and globally across the entire Equinix platform, we've seen roughly about 10% inflationary impacts. In some areas, it spiked higher, in some areas, it's a little bit lower. But we've already adjusted for instance list prices on new deals. But you know, we carry like 92% of our revenue in any period -- annual period from the previous year's MRR jump-off. So, it takes a while for those new deals to be filtered in and be felt through the entire base of MRR. But, as those new deals get signed-up, we'll adjust pricing. As we go through and do renewals, you'll see this in the positive pricing actions that Keith likes to talk about, you'll see it happen there. But it will be more of a feathering-in where you look at -- you look like five years down the road, and the entire footprint is rightsized to what the current economic conditions are. But we'll always lag a little bit, just because so much of our base is coming in from pre-negotiated deals. In some markets we're tied to CPI indexes and in others we just have similar to a traditional real-estate lease. We might have a stated price increase on space somewhere from like 3% to 5%. But we always get an opportunity after like call it, three years to renegotiate everything. {BIO 20700210 <GO>} I think in Q1 same-store revenue growth was 7%. How are you thinking about that metric? Is that a reasonable level that you can continue to grow at? Does it moderate a little bit, I think historically, maybe you've been a little bit lower than that. {BIO 1764376 <GO>} Yeah. Historically, it's been lower. I mean, as we have more assets enter that stabilized tier -- I mean, they're generally some of our stronger assets, quite honestly. I think there is equal opportunity for that to continue to grow, especially as we enhance some of those offerings with digital services.
FINAL TRANSCRIPT 2023-06-06 Equinix Inc (EQIX US Equity) Page 9 of 12 Q - Ari Klein A - Simon Miller Q - Ari Klein Q - Unidentified Participant A - Simon Miller Q - Unidentified Participant But yeah, I mean overall, I think it's reflective of a strong business model, putting the right applications in there, signing people up, getting renewals and gaining efficiencies at the asset-level. {BIO 20700210 <GO>} Is there a region where you think you have the most opportunity to push pricing higher? I think EMEA probably lags, the other two regions? {BIO 1764376 <GO>} Yeah. I -- just from a practical standpoint, we just dropped so many PIs on them for power. It would just -- it would be psychological at that point to come in and hit them over the head with space as well. So I'd probably say we'll feather it in more over in EMEA. You know, between Asia and the US, it's really a hodge-podge, and it comes down to the metro level and how network-dense the facility is, who we have competing with us in-region, in-market there. Nothing I would point to that says, one is specifically better than the other. {BIO 20700210 <GO>} If anyone in the audience has any questions, we can take. (Technical Difficulty) {BIO 1764376 <GO>} Yeah. So just for those watching on webcast, the question -- and correct me if I'm wrong -- is, so with all of the continued activity of hyperscalers, do we see our core business model, I'm assuming around retail getting tangential benefit from that? And yeah, the answer is, absolutely. Most of what the hyperscalers are doing -- I mean, and they build by the way their own datacenters with the land that they bought on their own, much more than they buy it from us or our competitors, quite honestly. I mean, they build footprints that in many cases are like half the size of what Equinix has built in its entire history in one year. But, it's a game of optimization for them as well. There are some markets where it's easier for them to utilize somebody to go do all the permitting and get the allocation of power, because they just don't have the resources. So they're always doing an optimization game. And I would say the way we look at it is, how many of the on- ramps are we getting from these folks? How many markets do we have all five of the players out there that are offering cloud on-ramps? Because, that's where the enterprises and the users are going to engage with. Not just the hyperscalers, but other SaaS and IaaS providers as well. (Technical Difficulty)
FINAL TRANSCRIPT 2023-06-06 Equinix Inc (EQIX US Equity) Page 10 of 12 A - Simon Miller Q - Ari Klein Q - Unidentified Participant A - Simon Miller Q - Unidentified Participant {BIO 1764376 <GO>} Yeah, sure. So the question was, what do we see as a potential threat around power to the DC campus. I'd say the good news there is if anyone's ever seen a bird's eye view of DC and Loudoun County in general, you'll see that Equinix is actually just this little small thing in the middle of it all, and the power consumers for the big deployments are actually radiating out all-around Equinix. Look, there I think we're working on a host of opportunities to ensure that we've got power continuity for a long-term -- for long-term there. I think that the local folks in government understand the importance of Equinix to that overall ecosystem, and how much revenue it drive -- tax revenue it drives and jobs that it drives for everyone there locally. We have a very, very big voice there. And I think we have a lot of relationships going all the way back 25 years in our history. So, while there are some -- some specifics that I'm not really -- I can't really discuss here, I would say that we're always looking for ways to ensure that we've got that continuity, and we'll probably end-up be in a relatively good position compared to others in the space. {BIO 20700210 <GO>} Maybe -- oh, sorry. (Multiple Speakers) (Technical Difficulty). {BIO 1764376 <GO>} Yeah. So the question is, could the pending recession here potentially harm the business and lower occupancy rates? I think, the biggest thing that we've seen so far is that it's maybe extending sales cycles a little bit. So much of our focus and investment has been around interconnection, hybrid cloud, hyperscalers getting on- ramps to the cloud. And as I mentioned earlier, the digital transformation for enterprises is here, and it's here to stay. There's a lot of external forces from vendors that are just going to make that happen. So, for me, it's not -- we're going to win the deals we would have won anyway. It's just the specific timing. I think in the short-term, you're seeing a little bit of belt- tightening, people sharpening their pencils, making sure that they are allocating capital investments appropriately across their portfolio of investments. But the deals that need to be closed to cloud on-ramps that need to be closed to service providers, we're going to get those. It's going to happen. It just may take a little bit longer. (Technical Difficulty).
FINAL TRANSCRIPT 2023-06-06 Equinix Inc (EQIX US Equity) Page 11 of 12 A - Simon Miller Q - Ari Klein A - Simon Miller Q - Ari Klein A - Simon Miller {BIO 1764376 <GO>} Yes. The question is, will hyperscalers kind of replicate the interconnection platform that we have and go-direct to their customers. Look, they offer today, a host of connection products, quite honestly. But in the world that we live in, I think long-term where there is no provider that has a 100% of every solution, I just don't think that you can build a 100 -- a walled garden around all of that, right? And you think of some of the cloud providers' biggest partners out there, that's not - - they can't tighten down the interconnection. And I think overall, large enterprises are going to need and want access to other service providers within our datacenter or just within their own topography. And so while there might be opportunities for the hyperscalers to do that, it's hard for me to see them doing that in a way that's ubiquitous, that really chokes out competition from other service providers in general. And, we're kind of selling pickaxes and shovels during the gold rush, everybody can win. We were happy when everyone wins. And I think it's better overall for the consumer and for competition in general. {BIO 20700210 <GO>} I'll squeeze one more in, just on the balance sheet, it's in good shape, low leverage, what are the company's capital allocation priorities moving forward? {BIO 1764376 <GO>} Yeah. We're going to continue to be balanced. We've got a lot of cash on the balance sheet right now. But we also have more expansion projects than at any time in our history. So we got a lot of checks to write here in the next 12 months. But yeah, I think we're -- our strategy is going to be balanced, we'll take-down debt when it's accretive to AFFO per share, we'll take down equity when that's accretive to AFFO per share. We're viewed a little bit differently than a traditional REIT from the rating agencies. So we're constantly fighting a battle there to get improved leverage ratios. And we'll keep doing that. But you know, I could see us over time maybe limiting the amount of cash we keep on balance sheet. We'll continue to also look for creative ways just given our global platform and ability to take down debt internationally, we'll continue to do that. So, like you just saw with our Japanese Yen offering that gives us the ability to fund a lot of expansion projects in and around Asia, and we'll take advantage of that. Hard to move that money around globally, but where there is other opportunities that are similar to what we saw in Japan, you'll see us do that as well. {BIO 20700210 <GO>} Great. I think that's a good place to wrap it up. Thanks, Simon. {BIO 1764376 <GO>} Thank you, Ari. I appreciate it.
FINAL TRANSCRIPT 2023-06-06 Equinix Inc (EQIX US Equity) Page 12 of 12 Q - Ari Klein A - Simon Miller {BIO 20700210 <GO>} Thank you. {BIO 1764376 <GO>} Great. This transcript may not be 100 percent accurate and may contain misspellings and other inaccuracies. This transcript is provided "as is", without express or implied warranties of any kind. Bloomberg retains all rights to this transcript and provides it solely for your personal, non-commercial use. Bloomberg, its suppliers and third- party agents shall have no liability for errors in this transcript or for lost profits, losses, or direct, indirect, incidental, consequential, special or punitive damages in connection with the furnishing, performance or use of such transcript. Neither the information nor any opinion expressed in this transcript constitutes a solicitation of the purchase or sale of securities or commodities. Any opinion expressed in the transcript does not necessarily reflect the views of Bloomberg LP. © COPYRIGHT 2024, BLOOMBERG LP. All rights reserved. Any reproduction, redistribution or retransmission is expressly prohibited.

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Equinix Inc NaREIT Conference Presentation June 2023.pdf

  • 1. FINAL TRANSCRIPT 2023-06-06 Equinix Inc (EQIX US Equity) Page 1 of 12 , Chief Accounting Officer , Analyst, BMO Capital Markets Unidentified Participant Ari Klein Simon Miller Q - Ari Klein Nareit REITweek: 2023 Investor Conference Company Participants Simon Miller Other Participants Ari Klein Presentation {BIO 20700210 <GO>} All right. Thank you all for joining us. I'm Ari Klein, Data Center analyst at BMO. We're pleased to have Equinix presenting here. And, to my left is Simon Miller, Chief Accounting Officer at Equinix. Maybe if you can just give a brief introduction on yourself, and then, I'll kick-off the Q&A. {BIO 1764376 <GO>} Yeah. You bet. So, I've been at Equinix for about 12 years. Started supporting Charles Meyers, who was then President of the Americas, he went on to be the COO and now the CEO of the company, spent another five years supporting Karl Strohmeyer who is the -- more recently the CRO with the company. Have spent time in-region as the Americas Finance VP, running commercial aspects of deal review, accounting, billing, credit collection, and financial planning. And, since taking over as CAO for the last five years, it's been more of a journey about globalizing the entire finance function. So, I spend a little less time on the commercial side of the business, but a ton of time in leadership meetings, talking about the strategy, how we're pursuing and how we're delivering against those expectations. So long-time, seen the company grow quite a bit. Back then, we used to talk about what you got to believe in 2011, used to talk about what you got to believe to get this to a $3 billion year company and here we are 12 years later sitting at about $8.2 billion. So, tremendous journey. Questions And Answers {BIO 20700210 <GO>} Thanks for that. And for those unfamiliar, maybe if you can provide a bit of an overview of Equinix. What differentiates the company, and why investors should consider investing in Equinix today?
  • 2. FINAL TRANSCRIPT 2023-06-06 Equinix Inc (EQIX US Equity) Page 2 of 12 A - Simon Miller Q - Ari Klein A - Simon Miller {BIO 1764376 <GO>} Yeah, sure. While we're a traditional REIT, in a lot of senses, we're not traditional in terms of our overall business plan. We think of Equinix, its datacenters, and its suite of digital services more as a platform. We focused really since day one on our founding, on network neutral interconnection. And so you hear us talk a lot about the value of interconnection. And what that means for us when we're building out business cases for development of new properties -- (Technical Difficulty) is this good, you want this closer? You bet. When we're evaluating new projects, we really focus on what type of interconnection density can we drive and expanding on that. So, we don't build a ton of data centers with a lot of density and megawatts. We focus on access to pops and the critical applications that are low-latency sensitive for our customers. And we found through churn rates over the years that those types of deployments are the most sticky, and that's why customers come to Equinix, its access to the carriers, access to the Internet, nowadays, access to cloud providers and on-ramps. In the future, probably, access to AI as well. But through all of the waves of digital transformation across the industry, I would say that Equinix has played a key role in the delivery of those services. {BIO 20700210 <GO>} Got it. So globally, Equinix has datacenters in 71 metros in 32 countries. What are some of the benefits of having a global platform, and how is Equinix thinking about expanding further in international markets? And maybe, what are some of those markets that you could look to enter? {BIO 1764376 <GO>} Yeah. For sure. That's a great question. So, the benefits are that, when you look at our customer base, the majority of our customers are greater than $150 million in revenue. A lot of our customers greater than 65% are -- you know, utilize our entire regional platform as well. And most of them -- most of our customers or at least, what I would say is multi-market. So, the more that we globalize, the more ability that we have to capture market share or wallet share for our customers as they expand globally. And most of the time when we expand into new markets, it's because a customer has been asking us for a couple of years that that's where they want to pin the flag on the map for their next deployment. So, we spend a ton of time talking to our customers, but not just talking to our customers, because they would tell you they want you everywhere globally that they even maybe aren't even thinking of being today. But we always kind of cross-reference that with availability of power and availability of the telco -- telecommunications infrastructure there, because again, it all ties back to our strategy of being the platform of interconnection to deliver not just co- locations, but a host of digital services on-top of that. And to do that, you need
  • 3. FINAL TRANSCRIPT 2023-06-06 Equinix Inc (EQIX US Equity) Page 3 of 12 Q - Ari Klein A - Simon Miller Q - Ari Klein A - Simon Miller Q - Ari Klein access to power, you need access to space expansion and really good physical infrastructure. So, with a lot of the dynamics going on in Asia, you'll hear us talk about continuing our investments in like, Indonesia, in Malaysia and in India. A lot of our customers for years have been asking us to look into those locations. And given some of the power constraints and other constraints in Hong-Kong and Singapore, we're kind of speeding that up a little bit. Africa, South Africa, we recently announced an investment in Joburg, we'll probably continue to look in West Africa. We don't have anything specific, but again, more customer questions and requests for us to explore there. And then some -- maybe a little less important, but I'd say equally strategic is Latin America. {BIO 20700210 <GO>} Got it. And when you're looking to grow the platform internationally or just the platform overall, how do you balance organic growth with M&A? {BIO 1764376 <GO>} Yeah. That's a good question. {BIO 20700210 <GO>} How do you choose between the two? How are you thinking about that? {BIO 1764376 <GO>} When we're going into an entirely new geography, an entirely new market, we prefer to buy our way in, quite honestly be in, and keep that management team on-board for a longer than normal integration period. So not just a couple of months, right. We really want to leverage their local knowledge, we want to leverage their existing contract structure, and really just how to do business locally. In some of the markets that we're getting into, it's not as crystal clear as maybe some of the traditional markets that we've gotten into in Europe and certainly in the US. And there's not like a bright line of like here is when you get your access to power, here is when this permit clears. And so, when having that local expertise is just hugely important. And I expect that we'll continue to do that. We've made a couple of, what I'd say are small bets, but like if you -- if you look at what we just announced in Johor, we're really leveraging off of our local team. You could throw a rock and basically hit the new development site compared to our existing Singapore assets are. So, where we can leverage the local talent, that's already in-place in Equinix, we'll continue to do that. But it would definitely -- it's definitely our preference when we're going into new geographies to acquire our way in there, and then maintain management for a period of time. {BIO 20700210 <GO>} Is the strategy the same in the xScale piece of the business? I think there you pretty much, you've leveraged your JV partners and you've grown organically. Could M&A
  • 4. FINAL TRANSCRIPT 2023-06-06 Equinix Inc (EQIX US Equity) Page 4 of 12 A - Simon Miller Q - Ari Klein A - Simon Miller ever be a part of that piece of business? {BIO 1764376 <GO>} For sure, yeah. I think it could be. It's going to depend on the multiples that are out there right now. Some of the multiples on the sell-side are still in excess of what the public multiples are. But once that sort of evens out, I would expect that we would look at that type of expansion, the same way that we do on the retail side of the business. {BIO 20700210 <GO>} Got it. Taking a step back, how demand -- the demand drivers for the datacenter business evolved over the years and to what extent will those be different over the next few years? {BIO 1764376 <GO>} Yeah, boy, AI comes to mind. That's a new one. And we have yet to see how that materializes at a project-level for Equinix directly. I mean, there's a lot of heat going to the hardware vendors right now as I think people queue-up to make sure that they're getting whatever allocations of chipsets, GPUs and other hardware. But gosh, for Web 1.0, then Web 2.0, and then the increase to cloud, these are all just huge shifts in the market where Equinix was at the right place, at the right time with the white -- right suite of -- of services to deliver against those applications. And I think we got a little bit more of a boost unexpectedly from the pandemic as well. That kind of -- the digital transformation, I think that's going on right now in the enterprise is bigger one as I've seen since I've been at Equinix. And boy, back about eight, ten years ago, it was a little bit cloudy, and we were wondering where we existed in that space, because there were a lot of companies that were founded in the four walls of Equinix, companies like Facebook or Yahoo that deployed their own hardware, inside of Equinix. But that was back when they were getting Series A funding in the hundreds of millions of dollars and now investors are investing in the tens of millions of dollars and people are leveraging cloud-based architectures to deliver that stuff. That was a threat to our business model at the time. So, we invested heavily and focused heavily on focusing on the enterprise's transformation in that digital world and pursuing as many cloud on-ramps as possible and cable landing stations as possible, so that no matter what it still came down to delivering and interconnection platform that provided value. Not just for the cloud or other SaaS providers or IaaS providers, but also for the enterprise. Well, if you fast-forward here another almost ten years and enterprise bookings were relative to what they were ten years ago, are an immense increase for us. And it's the other side of now investing in that hybrid cloud model, which is now the flywheel is going, and you're seeing companies like SAP or Oracle. They're no longer signing on-prem licenses for their software. They're moving everybody to cloud-based architectures, that means they're going to have to move all their boundary systems,
  • 5. FINAL TRANSCRIPT 2023-06-06 Equinix Inc (EQIX US Equity) Page 5 of 12 Q - Ari Klein A - Simon Miller Q - Ari Klein A - Simon Miller in some way, shape or form to that cloud-based architecture. And Equinix is getting an unfair advantage of that. And I think we saw a little bit of an acceleration of that during the pandemic as well as more folks were looking to ensure that a big chunk of their workforce could be serviced remotely. {BIO 20700210 <GO>} Got it. You briefly mentioned AI. It's clearly emerged as a pretty big theme more recently. {BIO 1764376 <GO>} Yeah. {BIO 20700210 <GO>} How is Equinix positioned to capitalize on some of the AI trends? How early days are we? And within your business, where do you see the most opportunity? Would it be on the retail co-lo side or maybe on xScale? {BIO 1764376 <GO>} Yeah. It still feels very early, although I will say this pressure wave feels a little more ubiquitous than other recent trends like 5G or Edge datacenters and Edge computing. It feels like everyone's is going to participate whether it's the hyperscalers doing offerings or the enterprise utilizing those offerings and creating their own unique brands of AI for either their own customer set or internal-use. But it's still early in terms of seeing how it's all going to be sort of frame-worked and projectized. I think there's a run on the hardware stuff early on here, and there is a fair amount of training that needs to happen at the bot level for a period of time before something is released to production, whether that's for internal use or external use. I still think there's a lot to figure out there. But whether it's a training module or inference, I feel like Equinix is uniquely positioned to take advantage of that, in either case on the training side that's heavy compute and storage, it's more likely that we'll deliver in xScale solution in that world. And with -- given our focus on the top hyperscalers in the world, we will have a as good a shot if not a better shot than others of taking down the business that we see as strategic in that space, not every opportunity that's out there, but ones that we think are viable in long-term. And then, when we get to a larger portion of delivery being inference, I think that Equinix will again get its -- an unfair share of the opportunities out there, just simply because of how interconnected we are, and the fact that however you deploy that final solution for AI, it's going to need low-latency and proximity to the carriers and to other service providers in the datacenter to ensure that you get the best throughput. And in those situations our -- Equinix wins, right? I mean, it's just that's been our mantra since our founding, and it's been a huge driving force in our strategy holistically.
  • 6. FINAL TRANSCRIPT 2023-06-06 Equinix Inc (EQIX US Equity) Page 6 of 12 Q - Ari Klein A - Simon Miller Q - Ari Klein A - Simon Miller Specifically, how it happens, sorry, I don't know. Check back in a year, something tells me that this will all actually materialize a lot faster than may be other paradigms have. It seems like there's a lot of money and momentum behind it. And I think there's a lot of enterprises specifically looking to get scale and leverage out of AI. And in a world of increasing interest rates and inflation, that's just going to be even more of a catalyst to see things happen here. {BIO 20700210 <GO>} Are you seeing those types of deals kind of start flowing through the pipeline, or is it even too early? {BIO 1764376 <GO>} Yeah. It's a little too early. I think you're seeing a lot of banter about stuff like a potential deal that might show up. But, it is entirely possible though that like when we're talking about leasing large swaths of xScale footprint right now to hyperscalers, that really we're talking to their infrastructure team. And it's hugely possible that embedded inside of that is some portion of that infrastructure that's going to be dedicated to AI. And they might -- they may not even know what it is, but if it's delivering some amount of a global SaaS office type of -- or office type allocate -- applications to the extent that they embed AI in that in the future, it could totally be on the table. {BIO 20700210 <GO>} Got it. On the demand side, it's been pretty healthy record, near-record bookings for a number of quarters in a row here. How sustainable is that in a tougher macro backdrop? We've heard cloud providers talking about slowing consumption in their businesses. How does that impact Equinix and what's the outlook, I guess in there? {BIO 1764376 <GO>} Yeah. We're definitely seeing customers sharpen their pencil a little bit. And as Charles likes to say, they're measuring twice and cutting once. But the overall pipeline still looks -- looks very healthy. We're seeing a few things slip, but no degradation or stuff falling out. You know, I've said this a lot today, and when I've met with investors in the past like, the digital transformation for enterprises, it's done, it's happening. There is a whole -- I mean, it's just very hard to find on-prem licenses for anything anymore, whether it's Infrastructure-as-a-Service or Software-as-a- Service, you have to have a hybrid cloud strategy going forward to either service your end-users and customers or your internal end-users and customers. And so, there is still a long tail on that. It's still very easy. I mean, if you were in Oracle shop internally, I just -- I got the notice two years ago. And every other customer that's on Oracle got that notice two years ago. And it's a specific negotiation with Oracle, how long you stay on the on-prem stuff. And if you are slower, thankfully, we were a little ahead, we started converting a lot of our applications to be cloud-ready like a year earlier. So, we were anticipating that Oracle would come to us. But there are other companies that, you know, they may have gotten that notice and they were caught flat-footed. And so, they're starting their journey a little later.
  • 7. FINAL TRANSCRIPT 2023-06-06 Equinix Inc (EQIX US Equity) Page 7 of 12 Q - Ari Klein A - Simon Miller Q - Ari Klein A - Simon Miller Q - Ari Klein So, there's still -- gosh, it's hard for me to even look beyond five years and say, it's going to slow down there, because it's going to enhance over time, and once you build, let's say, you have to replace an ERP and get that cloud-ready, now you got to focus on all the boundary systems to make sure that not only do they work with that cloud solution, but that they scale with it -- that they scale with it. And that's -- there's going to be a lot of try and buy solutions out there and there's going to be winners and losers on those boundary systems. But all of that is going to -- it's going to end up with being some portion of the critical infrastructure for every enterprise to be in or adjacent to Equinix. {BIO 20700210 <GO>} Okay. And then, on the cross-connect side, we have seen net-adds come in a little bit. What's kind of driving that? How do you think about just the overall demand backdrop for cross-connects and interconnection overall? I think we've seen some grooming taking place. {BIO 1764376 <GO>} Yeah, definitely. {BIO 20700210 <GO>} Are we at kind of trough levels? {BIO 1764376 <GO>} Hard to predict that, because there's so many influencers going on right now, macroeconomically, that's a big one in volatility. I would say even though we don't disclose it or -- and give a number externally, the gross adds continue to be really healthy and strong. We look at overall traffic on the Internet, Ethernet exchange as well, and that continues to be extremely robust. So, other than how it all nets out, we're still seeing good leading indicators that it continues to be a strength of the business. I would say that, given some of the probably budget challenges that some of the companies have relative to inflation, they're probably looking a little bit harder at their footprints. So some grooming related to that, just general cost cutting in consolidation of internal footprints. And then on-top of that, we have M&A and people, grooming, as it relates to integrations on that side. And then just transfer from like a 100 megabytes to 10 gigabit for instance, and aggregation points on that. You buy one piece of glass, where you needed, maybe five before or fiber-optic connection, sorry. {BIO 20700210 <GO>} Keith likes to talk a lot about the net positive pricing actions in the business. Can you just talk a little bit about the pricing levers that you have, how much opportunity you see on the business to continue to push pricing, maybe where you see the most
  • 8. FINAL TRANSCRIPT 2023-06-06 Equinix Inc (EQIX US Equity) Page 8 of 12 A - Simon Miller Q - Ari Klein A - Simon Miller opportunity. And is there -- has there been pushback just in this backdrop on some of those increases that you have for sure [ph]? {BIO 1764376 <GO>} Yeah. We're always very sensitive. For those who follow us, we just did a very large power price adjustment on our customers primarily in Europe. And so, there's still a lot of sensitivity out there in the market getting better than $350 million of revenue, just from that one thing. But we generally like to increase prices kind of subtly across various markets over a period of time. We have the luxury of having shorter contract terms than traditional wholesalers. So it's not -- we don't sign like a 15-year or a 20- year lease with our customers. We generally sign them up for three to five years on the initial contract. If they -- if we don't do a stated renewal, it auto renews for another year. At any point in time upon renewal, given specific market level dynamics and what competition is doing and prices locally, when we get to a renewal spot, we'll raise prices. But given the overall economic conditions that are going on right now and globally across the entire Equinix platform, we've seen roughly about 10% inflationary impacts. In some areas, it spiked higher, in some areas, it's a little bit lower. But we've already adjusted for instance list prices on new deals. But you know, we carry like 92% of our revenue in any period -- annual period from the previous year's MRR jump-off. So, it takes a while for those new deals to be filtered in and be felt through the entire base of MRR. But, as those new deals get signed-up, we'll adjust pricing. As we go through and do renewals, you'll see this in the positive pricing actions that Keith likes to talk about, you'll see it happen there. But it will be more of a feathering-in where you look at -- you look like five years down the road, and the entire footprint is rightsized to what the current economic conditions are. But we'll always lag a little bit, just because so much of our base is coming in from pre-negotiated deals. In some markets we're tied to CPI indexes and in others we just have similar to a traditional real-estate lease. We might have a stated price increase on space somewhere from like 3% to 5%. But we always get an opportunity after like call it, three years to renegotiate everything. {BIO 20700210 <GO>} I think in Q1 same-store revenue growth was 7%. How are you thinking about that metric? Is that a reasonable level that you can continue to grow at? Does it moderate a little bit, I think historically, maybe you've been a little bit lower than that. {BIO 1764376 <GO>} Yeah. Historically, it's been lower. I mean, as we have more assets enter that stabilized tier -- I mean, they're generally some of our stronger assets, quite honestly. I think there is equal opportunity for that to continue to grow, especially as we enhance some of those offerings with digital services.
  • 9. FINAL TRANSCRIPT 2023-06-06 Equinix Inc (EQIX US Equity) Page 9 of 12 Q - Ari Klein A - Simon Miller Q - Ari Klein Q - Unidentified Participant A - Simon Miller Q - Unidentified Participant But yeah, I mean overall, I think it's reflective of a strong business model, putting the right applications in there, signing people up, getting renewals and gaining efficiencies at the asset-level. {BIO 20700210 <GO>} Is there a region where you think you have the most opportunity to push pricing higher? I think EMEA probably lags, the other two regions? {BIO 1764376 <GO>} Yeah. I -- just from a practical standpoint, we just dropped so many PIs on them for power. It would just -- it would be psychological at that point to come in and hit them over the head with space as well. So I'd probably say we'll feather it in more over in EMEA. You know, between Asia and the US, it's really a hodge-podge, and it comes down to the metro level and how network-dense the facility is, who we have competing with us in-region, in-market there. Nothing I would point to that says, one is specifically better than the other. {BIO 20700210 <GO>} If anyone in the audience has any questions, we can take. (Technical Difficulty) {BIO 1764376 <GO>} Yeah. So just for those watching on webcast, the question -- and correct me if I'm wrong -- is, so with all of the continued activity of hyperscalers, do we see our core business model, I'm assuming around retail getting tangential benefit from that? And yeah, the answer is, absolutely. Most of what the hyperscalers are doing -- I mean, and they build by the way their own datacenters with the land that they bought on their own, much more than they buy it from us or our competitors, quite honestly. I mean, they build footprints that in many cases are like half the size of what Equinix has built in its entire history in one year. But, it's a game of optimization for them as well. There are some markets where it's easier for them to utilize somebody to go do all the permitting and get the allocation of power, because they just don't have the resources. So they're always doing an optimization game. And I would say the way we look at it is, how many of the on- ramps are we getting from these folks? How many markets do we have all five of the players out there that are offering cloud on-ramps? Because, that's where the enterprises and the users are going to engage with. Not just the hyperscalers, but other SaaS and IaaS providers as well. (Technical Difficulty)
  • 10. FINAL TRANSCRIPT 2023-06-06 Equinix Inc (EQIX US Equity) Page 10 of 12 A - Simon Miller Q - Ari Klein Q - Unidentified Participant A - Simon Miller Q - Unidentified Participant {BIO 1764376 <GO>} Yeah, sure. So the question was, what do we see as a potential threat around power to the DC campus. I'd say the good news there is if anyone's ever seen a bird's eye view of DC and Loudoun County in general, you'll see that Equinix is actually just this little small thing in the middle of it all, and the power consumers for the big deployments are actually radiating out all-around Equinix. Look, there I think we're working on a host of opportunities to ensure that we've got power continuity for a long-term -- for long-term there. I think that the local folks in government understand the importance of Equinix to that overall ecosystem, and how much revenue it drive -- tax revenue it drives and jobs that it drives for everyone there locally. We have a very, very big voice there. And I think we have a lot of relationships going all the way back 25 years in our history. So, while there are some -- some specifics that I'm not really -- I can't really discuss here, I would say that we're always looking for ways to ensure that we've got that continuity, and we'll probably end-up be in a relatively good position compared to others in the space. {BIO 20700210 <GO>} Maybe -- oh, sorry. (Multiple Speakers) (Technical Difficulty). {BIO 1764376 <GO>} Yeah. So the question is, could the pending recession here potentially harm the business and lower occupancy rates? I think, the biggest thing that we've seen so far is that it's maybe extending sales cycles a little bit. So much of our focus and investment has been around interconnection, hybrid cloud, hyperscalers getting on- ramps to the cloud. And as I mentioned earlier, the digital transformation for enterprises is here, and it's here to stay. There's a lot of external forces from vendors that are just going to make that happen. So, for me, it's not -- we're going to win the deals we would have won anyway. It's just the specific timing. I think in the short-term, you're seeing a little bit of belt- tightening, people sharpening their pencils, making sure that they are allocating capital investments appropriately across their portfolio of investments. But the deals that need to be closed to cloud on-ramps that need to be closed to service providers, we're going to get those. It's going to happen. It just may take a little bit longer. (Technical Difficulty).
  • 11. FINAL TRANSCRIPT 2023-06-06 Equinix Inc (EQIX US Equity) Page 11 of 12 A - Simon Miller Q - Ari Klein A - Simon Miller Q - Ari Klein A - Simon Miller {BIO 1764376 <GO>} Yes. The question is, will hyperscalers kind of replicate the interconnection platform that we have and go-direct to their customers. Look, they offer today, a host of connection products, quite honestly. But in the world that we live in, I think long-term where there is no provider that has a 100% of every solution, I just don't think that you can build a 100 -- a walled garden around all of that, right? And you think of some of the cloud providers' biggest partners out there, that's not - - they can't tighten down the interconnection. And I think overall, large enterprises are going to need and want access to other service providers within our datacenter or just within their own topography. And so while there might be opportunities for the hyperscalers to do that, it's hard for me to see them doing that in a way that's ubiquitous, that really chokes out competition from other service providers in general. And, we're kind of selling pickaxes and shovels during the gold rush, everybody can win. We were happy when everyone wins. And I think it's better overall for the consumer and for competition in general. {BIO 20700210 <GO>} I'll squeeze one more in, just on the balance sheet, it's in good shape, low leverage, what are the company's capital allocation priorities moving forward? {BIO 1764376 <GO>} Yeah. We're going to continue to be balanced. We've got a lot of cash on the balance sheet right now. But we also have more expansion projects than at any time in our history. So we got a lot of checks to write here in the next 12 months. But yeah, I think we're -- our strategy is going to be balanced, we'll take-down debt when it's accretive to AFFO per share, we'll take down equity when that's accretive to AFFO per share. We're viewed a little bit differently than a traditional REIT from the rating agencies. So we're constantly fighting a battle there to get improved leverage ratios. And we'll keep doing that. But you know, I could see us over time maybe limiting the amount of cash we keep on balance sheet. We'll continue to also look for creative ways just given our global platform and ability to take down debt internationally, we'll continue to do that. So, like you just saw with our Japanese Yen offering that gives us the ability to fund a lot of expansion projects in and around Asia, and we'll take advantage of that. Hard to move that money around globally, but where there is other opportunities that are similar to what we saw in Japan, you'll see us do that as well. {BIO 20700210 <GO>} Great. I think that's a good place to wrap it up. Thanks, Simon. {BIO 1764376 <GO>} Thank you, Ari. I appreciate it.
  • 12. FINAL TRANSCRIPT 2023-06-06 Equinix Inc (EQIX US Equity) Page 12 of 12 Q - Ari Klein A - Simon Miller {BIO 20700210 <GO>} Thank you. {BIO 1764376 <GO>} Great. This transcript may not be 100 percent accurate and may contain misspellings and other inaccuracies. This transcript is provided "as is", without express or implied warranties of any kind. Bloomberg retains all rights to this transcript and provides it solely for your personal, non-commercial use. Bloomberg, its suppliers and third- party agents shall have no liability for errors in this transcript or for lost profits, losses, or direct, indirect, incidental, consequential, special or punitive damages in connection with the furnishing, performance or use of such transcript. Neither the information nor any opinion expressed in this transcript constitutes a solicitation of the purchase or sale of securities or commodities. Any opinion expressed in the transcript does not necessarily reflect the views of Bloomberg LP. © COPYRIGHT 2024, BLOOMBERG LP. All rights reserved. Any reproduction, redistribution or retransmission is expressly prohibited.