Equinix Inc Company Q1 2014 Earnings Presentation.pdf

© 2014 Equinix Inc.
www.equinix.com
Q1 2014 Earnings Conference Call
NASDAQ: EQIX
Presented on April 30, 2014

© 2014 Equinix Inc. 2
Public Disclosure Statement
• Forward-Looking Statements
– Except for historical information, our presentation today contains forward-looking statements, which
include words such as “believe,” “anticipate,” and “expect.” These forward-looking statements
involve risks and uncertainties that may cause Equinix’s actual results to differ materially from those
expressed or implied by these statements. Factors that may affect Equinix’s results are summarized
in our annual report on Form 10-K filed on February 28, 2014.
• Non-GAAP Information
– This presentation contains references to certain non-GAAP financial measures. For definitions of
terms such as “Cash Gross Profit,” “Cash Gross Margins,” “Cash SG&A,” “Adjusted EBITDA,”
“Discretionary Free Cash Flow,” “Adjusted Discretionary Free Cash Flow,” and a detailed
reconciliation between the non-GAAP financial results presented in this presentation and the
corresponding GAAP measures, please refer to the appendix of this presentation.

$ 240.9
$ 248.0 $ 248.4
$ 263.5 $ 260.4
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14
(2)
(2)
$ 494.5 $ 501.8 $ 515.6 $ 538.1 $ 549.7
$ 516.1 $ 528.9 $ 543.1 $ 564.7 $ 580.1
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14
Recurring Revenues Non-recurring Revenues
Revenues of $580.1 Million
• Revenues up 3% QoQ and 12% YoY
• Revenues up 3% QoQ and 13% YoY on a
normalized and constant currency basis(1)
• Recurring revenues 95% of total revenues
Adjusted EBITDA of $260.4 Million
• Adjusted EBITDA down 1% QoQ and up 8% YoY
• Adjusted EBITDA down 1% QoQ and up 9% YoY
on a normalized and constant currency basis(1)
• Adjusted EBITDA margin of 45%
Strong start to 2014 and metrics reflect continued health of the business
(1) Constant currency indicates growth rates assuming average currency rates used in our financial results remained the same compared to the previous comparative period
and normalized for the impact from purchase of FR5 real estate
(2) See Form 8-K filed November 25, 2013 for discussion regarding revised financial results
Q1 2014 Financial Highlights
Revenues ($M)
Adjusted EBITDA ($M)
(2) (2)

Market Leader: Suite of Interconnection Products
15 years experience managing a global interconnection platform
Interconnection is critical
to supporting the
strength of our
ecosystems
• 975+ Networks
• 500+ Content and Digital
Media Companies
• 800+ Financial Services
Providers
Run the world’s largest
global exchanges across
20 metros
Cross-connects
85% of Interconnection Revenue*
132,000 Cross-connects
Exchanges
13% of Interconnection Revenue*
2,261 Exchange Ports running >2.5 TB of traffic
* As of Q1 2014
Benefits
• A one-to-one connection
• Secure and private
• High performance
• Cost effective
• Available in all data centers
Customer
1,10-Gb Fiber
Benefits
• A one-to-many connection
• Flexible, dynamic, scalable
• Very cost-effective with sub-1G
access
Exchanges
• Internet Exchange (IX)
• Ethernet Exchange

Equinix: Home of the Interconnected Cloud
Cloud adoption is
ramping up
Retail data centers
will be traffic
magnets
1,200+ Cloud service
providers and IT
services
Interconnection
helps reduce latency
Enterprises
migrating to hybrid
cloud

Hybrid Deployments Critical for Application Performance
* Source: NorthBridge Venture Partners and Bain Analysis
** Source: Equinix Analysis
Interconnection improves latency,
drives application performance**
Performance
High <80ms
RTD
Med <40ms
RTD
Low <20ms
RTD
<1ms RTD
M2M Trading
Virtual
Desktop
Gaming
Video
Advertising
CRM
Payments
ERP
Finance
Test
Backup
Email
HRM
Most G5000 enterprises moving to
hybrid cloud environments*
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2018
Public
Hybrid
Private
CIOs are looking to access multiple cloud vendors

• Multi-cloud, multi-
network access a
reality
• Drives increased
performance of
hybrid cloud
deployments
• Private, QoS/CoS,
secure, scalable
• Leverage APIs to
allow automated
provisioning for
dynamic access
Announcing Equinix Cloud Exchange
Next Generation Exchange Solution to support cloud workloads
Network Service Provider
Enterprise
Performance Hub
Equinix Cloud
Exchange
Cloud Service
Providers
Microsoft Azure
ExpressRoute
HQ
Enterprise
Remote Office(s)
Enterprise Locations
Enterprise Data
Center(s)

Q1 14 Q1 14 Q4 13 Q1 13 Q1 14 vs. Q1 14 vs.
Guidance Actual Actual Actual Q4 13 % ∆ Q1 13 % ∆
Revenues $572 - $576 580.1
$ 564.7
$ 516.1
$ 3% 12%
Cash Gross Profit 395.8 390.4 354.1 1% 12%
Cash Gross Profit Margin % 68-69% 68% 69% 69%
Cash S&M 55.8 54.3 46.3
Cash G&A 79.6 72.6 66.9
Cash SG&A $133 - $137 135.4 126.9 113.2 7% 20%
Cash SG&A % ~24% 23% 22% 22%
Adjusted EBITDA $256 - $260 260.4 263.5 240.9 -1% 8%
Adjusted EBITDA Margin % ~45% 45% 47% 47%
Net Income Attributable to Equinix 41.4 45.2 32.8 -8% 26%
Net Income Margin % 7% 8% 6%
EPS - Basic $ 0.83 $ 0.91 $ 0.67 -9% 24%
EPS - Diluted $ 0.81 $ 0.88 $ 0.65 -8% 25%
Adjusted Discretionary Free Cash Flow (2)
164.4
$ 135.4
$ 75.0
$ 21% 119%
($M Except Per Share Data)
Quarter
(1) See Form 8-K filed November 25, 2013 for discussion regarding revised financial results.
(2) Adjusted discretionary free cash flow is discretionary free cash flow excluding any excess tax benefits from employee equity awards, REIT-related cash costs and cash
paid for taxes associated with reclassifying our assets for tax purposes triggered by the planned REIT conversion
Q1 2014 Consolidated Results
(1)

REIT Conversion Costs & Cash Income Taxes
Description Value/Cash impact
D&A Recapture • Reclassifying Equinix assets as “real estate” results in a tax
liability due to longer depreciation and amortization lives
• IRS requires a “recapture” of tax that would have been due
• U.S. tax liabilities related to D&A recapture expected to
be approximately $360 to $380 million. $193 million has
been settled to-date
• Ratably over the four-year period starting in 2012
E&P Purge • REIT rules require the “purging” of all previously undistributed
accumulated earnings and profits
• Impacted by depreciation recapture
• Shareholder distributions estimated to range between
$700 to $1,100 million
• REIT conversion and shareholder E&P distribution
pending a favorable PLR from the IRS
• Expected to be paid out in a combination of up to 20%
in cash and at least 80% in Equinix common stock
• Anticipate making an E&P distribution before 2015, with
the balance distributed in 2015. Potential foreign E&P
distribution may be subject to U.S. taxation
One-Time
Implementation Costs
• Legal, tax, and accounting advisory fees; audit fees, and related
overhead
• System conversions
• Expected to now range between $75 to $85 million
• Paid $10 million (opex) in Q1 2014
• In 2014, expect to incur $37 million in SG&A (opex) and
$16 million in capex; $11 million in Q2 2014 SG&A
(opex)
Recurring Operational
Costs
• Additional advisory and audit fees, headcount, and related
overhead
• Approximately $5 to $10 million annually
• Starting in 2015
Estimated Worldwide
Cash Income Taxes(1)
• Company expects to be full cash taxpayer in 2013 and 2014
before anticipated REIT conversion (i.e. no NOLs to offset tax
obligations)
• Expect to pay $145 to $200 million in 2014 (includes
portion due to D&A recapture); ~$35 million non-REIT
related
(1) REIT conversion is contingent upon receipt of a favorable PLR from the IRS, Board approval and completion of other necessary actions. The REIT conversion may trigger a re-
evaluation of the U.S. deferred tax assets in 2014. This may result in a significant write-off of our U.S. deferred tax assets to income tax expense for the year, which is not a cash tax
expense. 2014 cash income tax estimate does not include taxes from any potential foreign E&P distributed, if any. For additional information and risks, refer to our Form 10-K filed
February 28th 2014.

$305.8 $313.5 $319.4 $326.1 $330.0
$144.5 $154.3 $150.3 $159.6 $149.6
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14
Revenues Adjusted EBITDA
Key Metrics IBX Build Highlights
Q1 Business Conditions
Opened
• DA6, a new IBX in Dallas Infomart, opened with 450 cabinets
Current Expansions
• SP2 phase III in Sao Paulo in Q3 2014
• PH1 phase II in Philadelphia in Q4 2014
• TR2 phase I in Toronto in Q1 2015
• NY6 phase I in New York in 1H 2015
($M)
Americas Performance
• Q1 revenues increased 1% QoQ and 8% YoY on an as-reported basis,
and 2% QoQ and 9% YoY on a constant currency basis(2)
• Q1 Adjusted EBITDA decreased 6% QoQ on both an as-reported and a
constant currency basis, largely due to changes in salaries and benefits,
and increased 4% YoY on an as-reported basis and 5% YoY on a
constant currency basis.(2)
• Record export bookings to other regions showing strength of Platform
Equinix
• Interconnection revenue up 3% QoQ, growing at a steady pace in Q1
• Exchange ports adds above historical trends due to demand from cloud
and content providers
(2) Constant currency indicates growth rates assuming average currency rates used in our financial results remained the same compared to the previous comparative period
(3) Key Metrics exclude ALOG
Q1 Highlights
(3)
(1)
(1)
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14
Cabinets Billing 41,900 41,800 42,600 43,400 43,300
MRR / Cab Billed $ 2,223 $ 2,225 $ 2,262 $ 2,262 $ 2,261
Cross-connects 65,800 67,400 68,800 70,300 71,100

$120.0
$127.0
$133.3
$144.8
$151.4
$48.7 $50.7
$57.1 $59.6
$63.2
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14
Q1 Highlights
(1)
IBX Build Highlights
Key Metrics
($M)
EMEA Performance
(2) Constant currency indicates growth rates assuming average currency rates used in our financial results remained the same compared to the previous comparative
period and normalized for the impact from purchase of FR5 real estate
and increased 3% QoQ and 19% YoY on a normalized and constant
currency basis(2)
• Q1 Adjusted EBITDA increased 6% QoQ and 30% YoY as-reported, and
increased 4% QoQ and 24% YoY on a normalized and constant currency
basis(2)
• Platform Equinix continues to drive high levels of cross-border bookings,
particularly into Netherlands
• Strong interconnection revenue growth, up 9% QoQ, driven by UK and
Germany, with strength across cross-connects, exchange ports and fixed
antenna service offerings
Opened
• FR5 phase II in Frankfurt (Kleyer 90)
Current Expansions
• LD6 phase I in London in Q2 2015
New Announced Expansions
• AM3 phase II in Amsterdam in Q4 2014
(1)
(1)
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14
MRR / Cab Billed $ 1,401 $ 1,432 $ 1,464 $ 1,551 $ 1,584
Cross-connects 28,100 29,300 30,700 32,100 33,400

$90.4 $88.4 $90.4 $93.8
$98.6
$47.6
$43.1 $41.0 $44.3 $47.6
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14
Q1 Highlights
Key Metrics IBX Build Highlights
($M)
Asia-Pacific Performance
(2) Constant currency indicates growth rates assuming average currency rates used in our financial results remained the same compared to the previous
comparative period
and increased 7% QoQ and 15% YoY on a constant currency basis(2)
• Q1 Adjusted EBITDA increased by 8% QoQ and flat YoY as-reported,
and increased 10% QoQ and 6% YoY on a constant currency basis(2)
• Strong sales momentum driven by content, cloud and network
• Record cross-connect adds up 6% QoQ, materially higher than trailing
average
• MRR per cabinet remains firm across Asia markets, MRR/cab increased
1% on constant currency basis
Opened
• TY4 phase II in Tokyo, and SY3 phase III in Sydney
Current Expansions
• HK3 phase II in Hong Kong in Q2 2014
• SH5 phase III in Shanghai in Q3 2014
• ME1 phase I in Melbourne in Q4 2014
• SG3 phase I in Singapore in Q1 2015
New Announced Expansions
• OS1 phase II in Osaka in Q3 2014
• SG2 phase VI in Singapore in Q4 2014
(1)
(1)
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14
MRR / Cab Billed $ 1,976 $ 1,903 $ 1,859 $ 1,872 $ 1,854
Cross-connects 23,000 23,800 24,600 25,900 27,400

Q4 13 Q1 14
Cash & Cash Equivalents 1,030
$ 1,042
$
Total Debt 4,204
$ 4,321
$
Stockholders' Equity 2,459 2,517
Total Capitalization 6,663
$ 6,838
$
Total Debt / Total Capitalization 63% 63%
Net Debt / LQAAdjusted EBITDA 3.0 x 3.1 x
FY14 FY15 FY16 FY17 FY18 FY19 & thereafter
Loans Payable & Capital Leases
Convertible Debt
Senior Notes
37
59
76
451 455
2,781
Capitalization Table Debt Maturity Profile
• Blended borrowing rate of 5.91%
• 732,000 shares repurchased or $127M through April 25,
2014(3)
($M)
(1) Includes cash, cash equivalents, short-term and long-term investments (excludes restricted cash)
(2) Includes debt discount of $41M as of 3/31/14 and $46M as of 12/31/13 related to the 4.75% convertible notes
(3) $373M remaining on current authorization for share repurchase announced December 4, 2013
(4) Represents principal payments only
(4)
• $396M convertible maturing Oct 2014 expected to settle
through equity conversion
• Term loan of $130M amortizes at $10M/quarter through
June 2017
• $2.25B of aggregate fixed rate debt (Senior Notes) matures
from 2020 to 2023
• Entered into exchange agreement with 2016 convertible
note holder to retire $98.9M for shares and cash
Capital Structure & Debt Maturity
($M)
(1)
(2)

$76.4
$200.1
$292.3
$278.3
$460.0
$556.3
$557.7
$0
$100
$200
$300
$400
$500
$600
$700
2007 2008 2009 2010 2011 2012 2013 2014E
$620.0 - $650.0
(1) Discretionary free cash flow is defined as cash generated from operating activities less ongoing capex. Adjusted discretionary free cash flow is discretionary free cash flow (as defined
previously) excluding any excess tax benefits from employee equity awards, REIT-related cash costs and cash paid for taxes associated with reclassifying our assets for tax purposes
triggered by the planned REIT conversion.
(2) Compound annual growth rate for 2007 – 2014E at guidance midpoint
(3) Since guidance is not provided for “cash generated from operating activities” these estimates were derived by taking the Adjusted EBITDA guidance less (1) estimated changes in
working capital, (2) estimated cash interest of ~$240.0 million, (3) the ongoing capex guidance, and adding back REIT-related cash costs. We believe this will approximate the level of
Adjusted Discretionary Free Cash Flow generated in 2014. Adjusted Discretionary Free Cash Flow for 2007 - 2013 includes cash paid for income taxes which are non-REIT related of
$0.2M, $0.1M, $9.3M, $11.2M, $9.2M, $31.6M, $35.5M respectively
(4) ADFCF Per Share calculated as adjusted discretionary free cash flow / weighted average basic share count
(3)
Adjusted Discretionary Free Cash Flow
(1)
$2.38 $5.39 $7.59
ADFCF/Share $6.36 $9.79
(4)
$11.59 $11.28
($M)

IT / Product /
Network
23%
Installation
31%
Maintenance
& SPOF
46%
$61
Actual
2014 guidance $550 -
$650M; includes $200M
of ongoing Capex,
including:
• Global IT initiatives
• New product and
services innovation
Expansion Capex
includes managed
services Capex largely
attributable to ALOG
Expansion
($M)
$350 - $450
Guidance
$45
Actual
(1) SPOF is defined as single point of failure
Ongoing
(1)
(1)
Q1 2014 Capex and Regional Breakout
($M)
($M)
($M)
Capex
2014 Capex and Regional Breakout
(1)
$200
Guidance
Americas
62%
EMEA
12%
AP
26%
IT /
Product /
Network
29%
Installation
27%
Americas
45%
EMEA
19%
AP
36%
Maintenance
& SPOF
44%

$M Q2 2014 FY 2014
Revenues $594 - $598 > $2,395(2)
Cash Gross Margin % 68-69% 69%
Cash SG&A
Cash SG&A %
$135 - $139
~23%
$530 - $550
~23%
Adjusted EBITDA
Adjusted EBITDA Margin %
$267 - $273(1)
~45%
> $1,105(3)(4)
~46%
Capex
Expansion Capex
Ongoing Capex
(% of revenues)
$165 - $175
$105 - $115
$60
~10.1%
$550 - $650
$350 - $450
$200
~8.4%
(1) Includes $11M in professional fees and costs primarily related to the REIT conversion and special projects
(2) Includes foreign currency benefit of $7M compared to Q4 2013 guidance rates
(3) Includes foreign currency benefit of $3M compared to Q4 2013 guidance rates
(4) 2014 Adjusted EBITDA includes $37M in REIT conversion costs and special projects. Excluding these costs, pro forma Adjusted EBITDA margin would be 48%
2014 Financial Guidance

Appendix

(2,382)
972
751
21
(3,000)
(2,500)
(2,000)
(1,500)
(1,000)
(500)
-
500
1,000
1,500
Investment (Adjusted
Gross PP&E)
Revenues Cash Gross Profit Maintenance and SPOF
Includes all Equinix
IBXs open prior to Q4
2012 in U.S.
• 26 U.S. IBX data centers
with an average age of 8.0
years
• Current average utilization
of 79%(6)
Strong demand and
returns for “legacy” IBXs
due to network density
and robust ecosystems
• First eight U.S. IBXs at
~86% utilization with over
5% YoY revenue growth
in Q1
~32% annual cash generation on adjusted gross PP&E investment (5)
($M)
41% of
Investment
77% Cash
Gross
Profit Margin
2% of
Revenues
(1) Includes the following IBXs: LA1, LA2, LA3, LA4, NY1, NY2, NY4, NY5, SV1, SV2, SV3, SV4, SV5, CH1, CH2, CH3, CH4, DA1, DA2, DC1, DC2, DC3,
DC4, DC5, DC6, MI3; Excludes DC10, DC11, SE3 and all Switch and Data locations
(2) Investment (adjusted gross PP&E) includes real estate acquisition costs, capitalized leases and all ongoing capex associated with same IBXs since
opening (adjusted for SV2 and DA2 capital lease)
(3) Q1 2014 annualized
(4) 2014 full year forecast
(5) Cash generation on gross investment calculated as Q1’14 cash gross profit annualized divided by adjusted gross PP&E as of Q1’14 balance sheet
(6) Current average utilization decrease reflects incremental phased expansions in the reported 26 IBXs
(2)
(3)
(3) (4)
Same IBX Review (1)
Meeting Targeted ROI and Tracking to Expected IRRs

Recurring & Non-Recurring Region
Vertical Product Category
Q1 2014 Diversified Recurring Revenue Model
Recurring
Revenues
95%
Non-
recurring
Revenues
5%
Asia-
Pacific
17%
EMEA
26%
Americas
57%
Cloud &
IT
Services
24%
Content &
Digital
Media
20%
Enterprise
9%
Financial
Services
21%
Network
26%
Colocation
79%
Intercon
16%
MIS
5%

Long-Term Lease Renewals
Majority of last potential date lease renewals occur after 2027
Global Lease Portfolio Expiration Waterfall(1)
Extending lease term protects our site cash flow and brand
(1) This lease expiration waterfall presents when leased square feet would be renewed if we assume all available renewal options are being exercised, as
of October 1, 2013
(2) Owned assets defined as title to land or long-term ground lease.
Equinix Owned Sites(2)
• Own 21 of 101 IBXs
• 3.4M of 9.9M total gross square
feet
• 37% of total revenues
Extended DLR Leases
• Negotiated six leases up for
renewal within seven years to
provide:
– Potentially up to 35 years of
lease term control
– Fixed annual escalations
with no mark-to-market
– Increased operational
flexibility
• One additional DLR lease is in
negotiations to renew

Non-GAAP Reconciliations
EQUINIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - NON-GAAP PRESENTATION
(in thousands)
(unaudited)
Three Months
Ended
Three Months
Ended
Three Months
Ended
Three Months
Ended
Three Months
Ended
Mar 31, Dec 31, Sep 30, Jun 30, Mar 31,
2014 2013 2013 2013 2013
Cost of revenues 287,525
$ 269,743
$ 268,960
$ 267,109
$ 258,591
$
Depreciation, amortization and accretion expense (101,407) (93,270) (92,579) (96,894) (94,979)
Stock-based compensation expense (1,870) (2,189) (2,270) (1,794) (1,602)
Cash cost of revenues 184,248
$ 174,284
$ 174,111
$ 168,421
$ 162,010
$
The geographic split of our cash cost of revenues is presented below:
Americas cash cost of revenues 91,037
$ 87,794
$ 92,882
$ 89,890
$ 87,724
$
EMEA cash cost of revenues 58,116 52,363 47,924 47,304 43,629
Asia-Pacific cash cost of revenues 35,095 34,127 33,305 31,227 30,657
Cash cost of revenues 184,248
$ 174,284
$ 174,111
$ 168,421
$ 162,010
$
We define cash gross profit as revenues less cash cost of revenues (as defined above).
(1) (1)

EQUINIX, INC.
(in thousands)
(unaudited)
Three Months
Ended
Three Months
Ended
Three Months
Ended
Three Months
Ended
Three Months
Ended
2014 2013 2013 2013 2013
We define cash operating expenses as operating expenses less depreciation, amortization, stock-based
compensation, restructuring charges and acquisition costs. We also refer to cash operating expenses as
cash selling, general and administrative expenses or "cash SG&A".
We define cash sales and marketing expenses as sales and marketing expenses less depreciation,
amortization and stock-based compensation as presented below:
Sales and marketing expenses 67,428
$ 67,250
$ 61,619
$ 59,478
$ 58,276
$
Depreciation and amortization expense (4,629) (6,273) (6,197) (6,223) (6,275)
Cash sales and marketing expenses 55,799
$ 54,235
$ 48,172
$ 46,430
$ 46,280
$
We define cash general and administrative expenses as general and administrative expenses less depreciation,
amortization and stock-based compensation as presented below:
General and administrative expenses 103,303
$ 98,466
$ 96,874
$ 88,632
$ 90,818
$
Depreciation and amortization expense (7,574) (7,139) (6,758) (7,072) (7,349)
Cash general and administrative expenses 79,618
$ 72,628
$ 72,356
$ 65,985
$ 66,956
$
Our cash operating expenses, or cash SG&A, as defined above, is presented below:
Cash sales and marketing expenses 55,799
$ 54,235
$ 48,172
$ 46,430
$ 46,280
$
Cash general and administrative expenses 79,618 72,628 72,356 65,985 66,956
Cash SG&A 135,417
$ 126,863
$ 120,528
$ 112,415
$ 113,236
$
The geographic split of our cash operating expenses, or cash SG&A, is presented below:
Americas cash SG&A 89,433
$ 78,701
$ 76,227
$ 69,287
$ 73,551
$
EMEA cash SG&A 30,109 32,794 28,191 29,016 27,611
Asia-Pacific cash SG&A 15,875 15,368 16,110 14,112 12,074
Cash SG&A 135,417
$ 126,863
$ 120,528
$ 112,415
$ 113,236
$
(1)
(1)

EQUINIX, INC.
(in thousands)
(unaudited)
Three Months
Ended
Three Months
Ended
Three Months
Ended
Three Months
Ended
Three Months
Ended
2014 2013 2013 2013 2013
We define adjusted EBITDA as income from operations plus depreciation, amortization, accretion, stock-
based compensation expense, restructuring charges, impairment charges and acquisition costs as presented below:
Income from continuing operations 121,612
$ 124,989
$ 115,193
$ 115,963
$ 104,787
$
Depreciation, amortization and accretion expense 113,610 106,682 105,534 110,189 108,603
Stock-based compensation expense 24,981 27,630 27,280 24,194 23,836
Restructuring charges - - - (4,837) -
Acquisition costs 185 4,229 438 2,526 3,662
Adjusted EBITDA 260,388
$ 263,530
$ 248,445
$ 248,035
$ 240,888
$
The geographic split of our adjusted EBITDA is presented below:
Americas income from continuing operations 71,735
$ 76,042
$ 70,691
$ 73,673
$ 59,379
$
Americas depreciation, amortization and accretion expense 58,933 62,623 58,939 65,149 63,296
Americas stock-based compensation expense 18,793 20,926 20,591 18,168 18,444
Americas restructuring charges - - - (4,837) -
Americas acquisition costs 102 15 83 2,138 3,398
Americas adjusted EBITDA 149,563 159,606 150,304 154,291 144,517
EMEA income from continuing operations 29,903
$ 31,187
$ 28,685
$ 23,811
$ 22,538
$
EMEA depreciation, amortization and accretion expense 29,902 20,612 24,503 23,424 23,071
EMEA stock-based compensation expense 3,317 3,616 3,596 3,065 3,038
EMEA acquisition costs 83 4,214 355 389 82
EMEA adjusted EBITDA 63,205 59,629 57,139 50,689 48,729
Asia-Pacific income from continuing operations 19,974
$ # 17,760
$ 15,817
$ 18,479
$ 22,870
$
Asia-Pacific depreciation, amortization and accretion expense 24,775 # 23,447 22,092 21,616 22,236
Asia-Pacific stock-based compensation expense 2,871 # 3,088 3,093 2,961 2,354
Asia-Pacific acquisition costs - # - - (1) 182
Asia-Pacific adjusted EBITDA 47,620 44,295 41,002 43,055 47,642
Adjusted EBITDA 260,388
$ 263,530
$ 248,445
$ 248,035
$ 240,888
$
(1) (1)

EQUINIX, INC.
(in thousands)
(unaudited)
Three Months
Ended
Three Months
Ended
Three Months
Ended
Three Months
Ended
Three Months
Ended
2014 2013 2013 2013 2013
We define cash gross margins as cash gross profit divided by revenues.
Our cash gross margins by geographic region is presented below:
Americas cash gross margins 72% 73% 71% 71% 71%
EMEA cash gross margins 62% 64% 64% 63% 64%
Asia-Pacific cash gross margins 64% 64% 63% 65% 66%
We define adjusted EBITDA margins as adjusted EBITDA divided by revenues.
Americas adjusted EBITDA margins 45% 49% 47% 49% 47%
EMEA adjusted EBITDA margins 42% 41% 43% 40% 41%
Asia-Pacific adjusted EBITDA margins 48% 47% 45% 49% 53%
(1)
(1)

EQUINIX, INC.
(in thousands)
(unaudited)
Three Months
Ended
Three Months
Ended
Three Months
Ended
Twelve Months
Ended
Twelve Months
Ended
Twelve Months
Ended
Twelve Months
Ended
Twelve Months
Ended
Mar 31, Dec 31, Mar 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31,
2014 2013 2013 2013 2012 2011 2010 2009
We define discretionary free cash flow as cash flow from operations less ongoing capital expenditures as presented below:
Ongoing capital expenditures 44,914
$ 68,059
$ 33,997
$ 183,330
$ 157,089
$ 127,690
$ 114,562
$ 63,200
$
Expansion capital expenditures 60,993 134,782 41,670 389,076 607,411 557,985 464,835 306,342
Total capital expenditures 105,907
$ 202,841
$ 75,667
$ 572,406
$ 764,500
$ 685,675
$ 579,397
$ 369,542
$
Cash generated from operating activities 171,718
$ 166,706
$ 84,181
$ 604,608
$ 632,026
$ 587,609
$ 392,583
$ 355,492
$
Ongoing capital expenditures (44,914) (68,059) (33,997) (183,330) (157,089) (127,690) (114,562) (63,200)
Discretionary free cash flow 126,804
$ 98,647
$ 50,184
$ 421,278
$ 474,937
$ 459,919
$ 278,310
$ 292,292
$
Discretionary free cash flow 126,804
$ 98,647
$ 50,184
$ 421,278
$ 474,937
$ 459,919
$ 278,310
$ 292,292
$
Excess tax benefits from employee equity awards 10,018 (42) 18,990 27,330 72,631 81 - -
Cash paid for taxes related to the REIT conversion 17,827 30,040 3,734 88,149 5,116 - - -
REIT operating expenses 9,790 6,796 2,057 20,969 3,631 - - -
Adjusted discretionary free cash flow 164,439
$ 135,441
$ 74,965
$ 557,726
$ 556,315
$ 460,000
$ 278,310
$ 292,292
$
We define adjusted discretionary free cash flow as discretionary free cash flow (as defined above), excluding any excess tax benefits from employee equity awards and cash paid for taxes associated with reclassifying our
assets for tax purposes triggered by our planned conversion into a real estate investment trust ("REIT"), and excluding REIT-related cash costs and taxes that will not be required post-REIT conversion, as presented below:
(1) (1) (1) (1) (1)

(1) We define Equinix Same IBX Organic Americas to include the following IBXs: LA1, LA2, LA3, LA4, NY1, NY2, NY4, NY5, SV1, SV2, SV3, SV4, SV5,
CH1, CH2, CH3, CH4, DA1, DA2, DC1, DC2, DC3, DC4, DC5, DC6 and MI3; We exclude DC10, DC11, SE3 and all Switch and Data locations
(2) We define Other as Equinix Americas Total minus Equinix Same IBX Organic Americas
EQUINIX, INC.
(in thousands)
(unaudited)
Three Months Ended Three Months Ended Three Months Ended
Mar 31, Mar 31, Mar 31,
2014 2014 2014
The following is a further break-out of the Americas' cash gross profit. We define cash gross profit as revenues less cash cost of revenues (as
already defined). We define cash gross margin as cash gross profit divided by revenues.
Equinix Same IBX
Organic Americas (1)
Other (2)
Equinix Americas
Total
Americas revenues 242,971
$ 87,062
$ 330,033
$
Americas cost of revenues 83,006
$ 58,759
$ 141,765
$
Americas depreciation, amortization and accretion expense (26,667) (22,873) (49,540)
Americas stock-based compensation expense (1,007) (181) (1,188)
Americas cash cost of revenues 55,332
$ 35,705
$ 91,037
$
Americas cash gross profit 187,638
$ 51,358
$ 238,996
$
Americas cash gross margin
77% 59% 72%

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Equinix Inc Company Q1 2014 Earnings Presentation.pdf

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Equinix Inc Company Q1 2014 Earnings Presentation.pdf