Technology

Equinix Reports Fourth-Quarter and Full-Year 2023 Results

Published

2 years ago

February 14, 2024

REDWOOD CITY, Calif., Feb. 14, 2024 /PRNewswire/ —

2023 annual revenues increased 13% year-over-year on an as-reported basis and 15% on a normalized and constant currency basis to $8.2 billionClosed nearly 17,000 deals across more than 5,900 customers in 2023Record 90 megawatts (“MW”) of xScale® leasing, the result of increased hyperscale demand to support artificial intelligence (AI) and cloud deployments

Equinix, Inc. (Nasdaq: EQIX), the world’s digital infrastructure company®, today reported results for the quarter and year ended December 31, 2023. Equinix uses certain non-GAAP financial measures, which are described further below and reconciled to the most comparable GAAP financial measures after the presentation of our GAAP financial statements. All per-share results are presented on a fully diluted basis.

2023 Results Summary

Revenues $8.188 billion, a 13% increase over the previous year on an as-reported basis or 15% on a normalized and constant currency basisOperating Income$1.443 billion, a 20% increase over the previous year, and an operating margin of 18% due to strong operating performanceNet Income and Net Income per Share attributable to common shareholders $969 million, a 38% increase over the previous year, primarily due to operating performance strength and other income; partially offset by higher income taxes$10.31 per share, a 34% increase over the previous yearAdjusted EBITDA$3.702 billion, a 45% adjusted EBITDA margin, an increase of 10% compared to last year on an as-reported basisIncludes $13 million of integration costsAFFO and AFFO per Share$3.019 billion, an 11% increase over the previous year on an as-reported basis or 13% on a normalized and constant currency basis$32.11 per share, a 9% increase over the previous year on an as-reported basis or 11% on a normalized and constant currency basis

2024 Annual Guidance Summary

Revenues$8.793 – $8.893 billion, a 7 – 9% increase over the previous year on an as-reported basis or a normalized and constant currency increase of 7 – 8% excluding the year-over-year impact of the power pass-throughAdjusted EBITDA$4.089 – $4.169 billion, a 47% adjusted EBITDA margin, a 10 – 13% increase over the prior year on an as-reported basisAssumes $25 million of integration costsAFFO and AFFO per Share$3.306 – $3.376 billion, an increase of 9 – 12% over the previous year on both an as-reported and normalized and constant currency basis$34.58 – $35.31 per share, an increase of 8 – 10% over the previous year on both an as-reported and normalized and constant currency basisThis guidance excludes any capital market activities the company may undertake in the future

Equinix does not provide forward-looking guidance for certain financial data, such as depreciation, amortization, accretion, stock-based compensation, net income (loss) from operations, cash generated from operating activities and cash used in investing activities, and as a result, is not able to provide a reconciliation of GAAP to non-GAAP financial measures for forward-looking data without unreasonable effort. The impact of such adjustments could be significant.

Equinix Quote

Charles Meyers, CEO and President, Equinix:

“2023 was another strong year for Equinix—we delivered more than $8 billion of revenues, achieving an amazing 21 years of consecutive quarterly revenue growth, all while driving AFFO per share performance above the top end of our long-term expectations. We made substantial progress on our ambitious agenda, positioning the business to capitalize on the immense opportunities that lie ahead. Digital transformation, especially in an AI-driven world, is as important as ever to our customers. In this context, the significance of Platform Equinix and its strong competitive advantages has never been more crucial. We plan to continue our focus on creating a platform that allows our customers to build hybrid and multicloud infrastructure, when they want, where they want, and with the ecosystem of partners they need.”

Business Highlights

Given the strong underlying demand for digital infrastructure, Equinix continues to invest broadly across its global footprint, which now includes 260 data centers across 71 metropolitan areas in 33 countries. There are 49 major builds underway in 35 markets, across 21 countries including 11 xScale builds representing nearly 20,000 cabinets of retail and more than 50 megawatts of xScale capacity through 2024.

Equinix opened 14 new data centers in 12 metros including Dublin, Frankfurt, Kuala Lumpur, Madrid, Milan, Montreal, Paris, São Paulo, Seattle, Seoul, Tokyo and Washington, D.C. In addition, the company added seven new projects in Dallas, Lagos, Madrid, Milan, Warsaw and Washington, D.C.

In December, Equinix announce d plans to expand support for advanced liquid cooling te chnologies—including direct-to-chip—to more than 100 of its International Business ExchangeTM (IBX®) data centers in more than 45 metros around the world. This will enable more businesses to use the most performant cooling technologies for the powerful, high-density hardware that supports compute-intensive workloads such as AI.

The surge in demand for hyperscale infrastructure to support AI and cloud initiatives is resulting in strong demand and significant leasing activity for Equinix’s global xScale data center portfolio. Since the last earnings call, the company leased a record 90 megawatts of capacity across six assets in EMEA and APAC, including approximately 32 megawatts leased at the start of the year. This brings total xScale leasing to 300 megawatts globally.

In Q4, Equinix purchased the company’s London 8 IBX data center. Revenues from owned assets increased to 66% of recurring revenues, stepping up 2%, as the company continues to progress on ownership and long-term control of assets.

Last month Equinix launched a fully managed private cloud service that enables enterprises to easily acquire and manage their own NVIDIA DGX AI supercomputing infrastructure for building and running custom generative AI models. The service includes NVIDIA DGX systems, NVIDIA networking and the NVIDIA AI Enterprise software platform. Equinix installs and operates each customer’s privately owned NVIDIA infrastructure and can deploy services on their behalf in key IBX data centers globally.

Equinix continues to gain traction as a preferred location for deploying private AI infrastructure with both enterprises and service providers. In December, the company announced that c ustomers, including Continental AG, i3D.net and Harrison.ai, are leveraging the cloud adjacency, global reach, robust ecosystems and low-latency interconnection of Platform Equinix® to deploy private AI infrastructure.

Equinix’s industry-leading global interconnection franchise continues to perform with over 462,000 total interconnections deployed on its platform. In Q4, interconnection revenues stepped up 10% year-over-year on an as reported basis or 8% year-over-year on a normalized and constant currency basis, and the company added an incremental 4,300 organic interconnections in the quarter.

In Q4, Equinix added four new native cloud on-ramps in Bogotá, Calgary and Zurich, further strengthening its cloud ecosystem. Equinix customers can now enjoy low-latency access to multiple native cloud on-ramps in 37 metros, including eight out of the world’s 10 largest metros by GDP. Equinix has nearly 40% market share of the on-ramps to the major cloud service providers—key players in the AI ecosystem.

The company recently launched Equinix Fabric Cloud Router, a virtual routing service designed to simplify networking challenges for enterprises in cloud-to-cloud and hybrid cloud environments. This service provides an easy-to-configure, enterprise-grade, multicloud routing solution that can be deployed within minutes. Customers can utilize Equinix Fabric Cloud Router in all 58 Equinix Fabric®-enabled metros globally, ensuring low-latency connectivity to major cloud providers and a wide range of service providers.

Equinix’s Channel program continued to see strong momentum, contributing to 35% of bookings and over 50% of new customers in Q4. The company saw growth from partners, including Avant, HCL, HPE, NVIDIA and WWT, with wins across a wide range of industry verticals and digital-first use cases.

Equinix remains committed to advancing its Future First Sustainability strategy and has continued to make significant progress in this area.

In December, Equinix announced the full allocation of proceeds from $4.9 billion in investment-grade green bonds to advance toward its near-term science-based target to become climate neutral by 2030 and improve the operational eco-efficiency of its business. As one of the top ten largest green bond issuers in the U.S., Equinix used the net proceeds to support 172 green building projects across 105 sites, 33 energy-efficiency projects, and two Power Purchase Agreements (“PPAs”).

Earlier this month Equinix executed a new PPA in Australia, signaling a broader industry goal of bringing additional clean power to a region where conditions have traditionally been more challenging for executing renewable energy projects. To date, Equinix has executed 21 PPAs across Australia, France, Iberia, the Nordics and the U.S., representing more than one gigawatt of clean energy once operational.

For the second year in a row, Equinix achieved the highest-ranking score of the CDP’s prestigious 2023 “Climate Change A List,” a leading environmental rating system focused on climate-related transparency and action. Equinix was also named as a leader in the IDC MarketScape: Worldwide Datacenter Services 2023 Vendor Assessment, recognized for its sustainability advancements, innovative platform capabilities, and global expansion and ecosystem growth.1

__________________________________________

IDC, “IDC MarketScape: Worldwide Datacenter Services 2023 Vendor Assessment,” Doc # US49435022e, October 2023

Business Outlook

For the first quarter of 2024, Equinix expects revenues to range between $2.127 and $2.147 billion, an increase of 1 – 2% over the previous quarter, or flat on a normalized and constant currency basis. This guidance includes lower non-recurring revenues related to significant xScale activity in Q4 2023 partly offset by a foreign currency benefit of $38 million when compared to the average FX rates in Q4 2023. Adjusted EBITDA is expected to range between $960 and $980 million, which includes a foreign currency benefit of $18 million when compared to the average FX rates in Q4 2023. Adjusted EBITDA includes $5 million of integration costs related to acquisitions. Recurring capital expenditures are expected to range between $14 and $34 million.

For the full year of 2024, total revenues are expected to range between $8.793 and $8.893 billion, a 7 – 9% increase over the previous year on an as-reported basis, or a 7 – 8% increase on a normalized and constant currency basis excluding the year-over-year impact of the power pass-through, and includes a foreign currency benefit of $127 million when compared to the prior Equinix guidance FX rates. Adjusted EBITDA is expected to range between $4.089 and $4.169 billion, an adjusted EBITDA margin of 47%. This adjusted EBITDA includes approximately 160 basis points of margin benefit from improving operating leverage and power cost decreases, as well as a foreign currency benefit of $67 million when compared to the prior Equinix guidance FX rates. For the year, the company expects to incur $25 million in integration costs related to acquisitions. AFFO is expected to range between $3.306 and $3.376 billion, a 9 – 12% increase over the previous year on both an as-reported and normalized and constant currency basis. This AFFO guidance includes $25 million in integration costs related to acquisitions. AFFO per share is expected to range between $34.58 and $35.31, an 8 – 10% increase over the previous year on both an as-reported and normalized and constant currency basis. This guidance excludes any capital market activities the company may undertake in the future. Non-recurring capital expenditures, including xScale-related costs, are expected to range between $2.570 and $2.800 billion, and recurring capital expenditures are expected to range between $210 and $230 million. xScale-related on-balance sheet capital expenditures are expected to range between $50 and $90 million, which we anticipate will be reimbursed from both the current and future xScale JVs.

The U.S. dollar exchange rates used for 2024 guidance, taking into consideration the impact of our current foreign currency hedges, have been updated to $1.10 to the Euro, $1.24 to the Pound, S$1.32 to the U.S. dollar, ¥141 to the U.S. dollar and A$1.47 to the U.S. dollar. The Q4 2023 global revenue breakdown by currency for the Euro, British Pound, Singapore Dollar, Japanese Yen and Australian Dollar is 21%, 10%, 8%, 5% and 3%, respectively.

The adjusted EBITDA guidance is based on the revenue guidance less our expectations of cash cost of revenues and cash operating expenses. The AFFO guidance is based on the adjusted EBITDA guidance less our expectations of net interest expense, an installation revenue adjustment, a straight-line rent expense adjustment, a contract cost adjustment, amortization of deferred financing costs and debt discounts and premiums, income tax expense, an income tax expense adjustment, recurring capital expenditures, other income (expense), gains (losses) on disposition of real estate property, and adjustments for unconsolidated joint ventures’ and non-controlling interests’ share of these items.

Q4 2023 Results Conference Call and Replay Information

Equinix will discuss its quarterly results for the period ended December 31, 2023, along with its future outlook, in its quarterly conference call on Wednesday, February 14, 2024, at 5:30 p.m. ET (2:30 p.m. PT). A simultaneous live webcast of the call will be available on the company’s Investor Relations website at www.equinix.com/investors. To hear the conference call live, please dial 1-517-308-9482 (domestic and international) and reference the passcode EQIX.

A replay of the call will be available one hour after the call through Wednesday, May 1, 2024, by dialing 1-800-568-3705 and referencing the passcode 2024. In addition, the webcast will be available at www.equinix.com/investors (no password required).

Investor Presentation and Supplemental Financial Information

Equinix has made available on its website a presentation designed to accompany the discussion of Equinix’s results and future outlook, along with certain supplemental financial information and other data. Interested parties may access this information through the Equinix Investor Relations website at www.equinix.com/investors.

Additional Resources

Equinix Investor Relations Resources

About Equinix

Equinix (Nasdaq: EQIX) is the world’s digital infrastructure company®. Digital leaders harness Equinix’s trusted platform to bring together and interconnect foundational infrastructure at software speed. Equinix enables organizations to access all the right places, partners and possibilities to scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value, while supporting their sustainability goals.

Non-GAAP Financial Measures

Equinix provides all information required in accordance with generally accepted accounting principles (“GAAP”), but it believes that evaluating its ongoing operating results may be difficult if limited to reviewing only GAAP financial measures. Accordingly, Equinix uses non-GAAP financial measures to evaluate its operations.

Equinix provides normalized and constant currency growth rates, which are calculated to adjust for acquisitions, dispositions, integration costs, changes in accounting principles and foreign currency.

Equinix presents adjusted EBITDA, which is a non-GAAP financial measure. Adjusted EBITDA represents net income excluding income tax expense, interest income, interest expense, other income or expense, gain or loss on debt extinguishment, depreciation, amortization, accretion, stock-based compensation expense, restructuring charges, impairment charges, transaction costs and gain or loss on asset sales.

In presenting non-GAAP financial measures, such as adjusted EBITDA, cash cost of revenues, cash gross margins, cash operating expenses (also known as cash selling, general and administrative expenses or cash SG&A), adjusted EBITDA margins, free cash flow and adjusted free cash flow, Equinix excludes certain items that it believes are not good indicators of Equinix’s current or future operating performance. These items are depreciation, amortization, accretion of asset retirement obligations and accrued restructuring charges, stock-based compensation, restructuring charges, impairment charges, transaction costs and gain or loss on asset sales. Equinix excludes these items in order for its lenders, investors and the industry analysts who review and report on Equinix to better evaluate Equinix’s operating performance and cash spending levels relative to its industry sector and competitors.

Equinix excludes depreciation expense as these charges primarily relate to the initial construction costs of a data center, and do not reflect its current or future cash spending levels to support its business. Its data centers are long-lived assets, and have an economic life greater than 10 years. The construction costs of an IBX data center do not recur with respect to such data center, and future capital expenditures remain minor relative to our initial investment throughout its useful life. Construction costs in future periods are primarily incurred with respect to additional IBX data centers. This is a trend we expect to continue. In addition, depreciation is also based on the estimated useful lives of the data centers. These estimates could vary from actual performance of the asset, are based on historic costs incurred to build out our data centers and are not indicative of current or expected future capital expenditures. Therefore, Equinix excludes depreciation from its operating results when evaluating its operations.

In addition, in presenting the non-GAAP financial measures, Equinix also excludes amortization expense related to acquired intangible assets. Amortization expense is significantly affected by the timing and magnitude of acquisitions, and these charges may vary in amount from period to period. We exclude amortization expense to facilitate a more meaningful evaluation of our current operating performance and comparisons to our prior periods. Equinix excludes accretion expense, both as it relates to its asset retirement obligations as well as its accrued restructuring charges, as these expenses represent costs which Equinix also believes are not meaningful in evaluating Equinix’s current operations. Equinix excludes stock-based compensation expense, as it can vary significantly from period to period based on share price and the timing, size and nature of equity awards. As such, Equinix and many investors and analysts exclude stock-based compensation expense to compare its operating results with those of other companies. Equinix excludes restructuring charges from its non-GAAP financial measures. The restructuring charges relate to Equinix’s decision to exit leases for excess space adjacent to several of its IBX® data centers, which it did not intend to build out, or its decision to reverse such restructuring charges. Equinix also excludes impairment charges generally related to certain long-lived assets. The impairment charges are related to expense recognized whenever events or changes in circumstances indicate that the carrying amount of assets are not recoverable. Equinix also excludes gain or loss on asset sales as it represents profit or loss that is not meaningful in evaluating the current or future operating performance. Finally, Equinix excludes transaction costs from its non-GAAP financial measures to allow more comparable comparisons of the financial results to the historical operations. The transaction costs relate to costs Equinix incurs in connection with business combinations and the formation of joint ventures, including advisory, legal, accounting, valuation and other professional or consulting fees. Such charges generally are not relevant to assessing the long-term performance of Equinix. In addition, the frequency and amount of such charges vary significantly based on the size and timing of the transactions. Management believes items such as restructuring charges, impairment charges, transaction costs and gain or loss on asset sales are non-core transactions; however, these types of costs may occur in future periods.

Equinix also presents funds from operations (“FFO”) and adjusted funds from operations (“AFFO”), both commonly used in the REIT industry, as supplemental performance measures. Additionally, Equinix presents AFFO per share, which is also commonly used in the REIT industry. AFFO per share offers investors and industry analysts a perspective of Equinix’s underlying operating performance when compared to other REIT companies. FFO is calculated in accordance with the definition established by the National Association of Real Estate Investment Trusts (“NAREIT”). FFO represents net income or loss, excluding gain or loss from the disposition of real estate assets, depreciation and amortization on real estate assets and adjustments for unconsolidated joint ventures’ and non-controlling interests’ share of these items. AFFO represents FFO, excluding depreciation and amortization expense on non-real estate assets, accretion, stock-based compensation, stock-based charitable contributions, restructuring charges, impairment charges, transaction costs, an installation revenue adjustment, a straight-line rent expense adjustment, a contract cost adjustment, amortization of deferred financing costs and debt discounts and premiums, gain or loss on debt extinguishment, an income tax expense adjustment, recurring capital expenditures, net income or loss from discontinued operations, net of tax, and adjustments from FFO to AFFO for unconsolidated joint ventures’ and non-controlling interests’ share of these items. Equinix excludes depreciation expense, amortization expense, accretion, stock-based compensation, restructuring charges, impairment charges and transaction costs for the same reasons that they are excluded from the other non-GAAP financial measures mentioned above.

Equinix includes an adjustment for revenues from installation fees, since installation fees are deferred and recognized ratably over the period of contract term, although the fees are generally paid in a lump sum upon installation. Equinix includes an adjustment for straight-line rent expense on its operating leases, since the total minimum lease payments are recognized ratably over the lease term, although the lease payments generally increase over the lease term. Equinix also includes an adjustment to contract costs incurred to obtain contracts, since contract costs are capitalized and amortized over the estimated period of benefit on a straight-line basis, although costs of obtaining contracts are generally incurred and paid during the period of obtaining the contracts. The adjustments for installation revenues, straight-line rent expense and contract costs are intended to isolate the cash activity included within the straight-lined or amortized results in the consolidated statement of operations. Equinix excludes the amortization of deferred financing costs and debt discounts and premiums as these expenses relate to the initial costs incurred in connection with its debt financings that have no current or future cash obligations. Equinix excludes gain or loss on debt extinguishment since it represents a cost that is not a good indicator of Equinix’s current or future operating performance. Equinix includes an income tax expense adjustment, which represents the non-cash tax impact due to changes in valuation allowances and uncertain tax positions that do not relate to the current period’s operations. Equinix deducts recurring capital expenditures, which represent expenditures to extend the useful life of its IBX and xScale data centers or other assets that are required to support current revenues. Equinix excludes net income or loss from discontinued operations, net of tax, which represents results that are not a good indicator of our current or future operating performance.

Equinix presents constant currency results of operations, which is a non-GAAP financial measure and is not meant to be considered in isolation or as an alternative to GAAP results of operations. However, Equinix has presented this non-GAAP financial measure to provide investors with an additional tool to evaluate its operating results without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of Equinix’s business performance. To present this information, Equinix’s current and comparative prior period revenues and certain operating expenses from entities with functional currencies other than the U.S. dollar are converted into U.S. dollars at a consistent exchange rate for purposes of each result being compared.

Non-GAAP financial measures are not a substitute for financial information prepared in accordance with GAAP. Non-GAAP financial measures should not be considered in isolation, but should be considered together with the most directly comparable GAAP financial measures and the reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures. Equinix presents such non-GAAP financial measures to provide investors with an additional tool to evaluate its operating results in a manner that focuses on what management believes to be its core, ongoing business operations. Management believes that the inclusion of these non-GAAP financial measures provides consistency and comparability with past reports and provides a better understanding of the overall performance of the business and its ability to perform in subsequent periods. Equinix believes that if it did not provide such non-GAAP financial information, investors would not have all the necessary data to analyze Equinix effectively.

Investors should note that the non-GAAP financial measures used by Equinix may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as those of other companies. Investors should, therefore, exercise caution when comparing non-GAAP financial measures used by us to similarly titled non-GAAP financial measures of other companies. Equinix does not provide forward-looking guidance for certain financial data, such as depreciation, amortization, accretion, stock-based compensation, net income or loss from operations, cash generated from operating activities and cash used in investing activities, and as a result, is not able to provide a reconciliation of GAAP to non-GAAP financial measures for forward-looking data without unreasonable effort. The impact of such adjustments could be significant. Equinix intends to calculate the various non-GAAP financial measures in future periods consistent with how they were calculated for the periods presented within this press release.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, risks to our business and operating results related to the current inflationary environment; foreign currency exchange rate fluctuations; increased costs and increased challenges to procure power and the general volatility in the global energy market; the challenges of acquiring, operating and constructing IBX and xScale data centers and developing, deploying and delivering Equinix products and solutions; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenues from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; risks related to potential cybersecurity breaches; risks related to our taxation as a REIT and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent and upcoming Equinix quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.

EQUINIX, INC.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

Three Months Ended

Twelve Months Ended

December 31,
2023

September 30,
2023

December 31,
2022

December 31,
2023

December 31,
2022

Recurring revenues

$ 1,976,038

$ 1,961,043

$ 1,773,380

$ 7,744,731

$ 6,871,287

Non-recurring revenues

134,451

99,987

97,465

443,405

391,818

Revenues

2,110,489

2,061,030

1,870,845

8,188,136

7,263,105

Cost of revenues

1,091,776

1,068,991

970,700

4,227,658

3,751,501

Gross profit

1,018,713

992,039

900,145

3,960,478

3,511,604

Operating expenses:

Sales and marketing

217,603

212,506

207,233

855,796

786,560

General and administrative

448,849

403,890

400,183

1,654,042

1,498,701

Transaction costs

5,869

(775)

10,529

12,412

21,839

(Gain) loss on asset sales

(24)

(3,933)

—

(5,046)

3,976

Total operating expenses

672,297

611,688

617,945

2,517,204

2,311,076

Income from operations

346,416

380,351

282,200

1,443,274

1,200,528

Interest and other expense:

Interest income

28,225

23,111

18,462

94,227

36,268

Interest expense

(103,183)

(101,385)

(94,200)

(402,022)

(356,337)

Other expense

(1,227)

(5,972)

(28,895)

(11,214)

(51,417)

Gain (loss) on debt extinguishment

(360)

143

(35)

327

Total interest and other, net

(76,114)

(84,606)

(104,490)

(319,044)

(371,159)

Income before income taxes

270,302

295,745

177,710

1,124,230

829,369

Income tax expense

(42,825)

(19,985)

(48,807)

(155,250)

(124,792)

Net income

227,477

275,760

128,903

968,980

704,577

Net (income) loss attributable to non-controlling interests

(140)

198

(232)

Net income attributable to common shareholders

$ 227,568

$ 275,794

$ 128,763

$ 969,178

$ 704,345

Net income per share attributable to common shareholders:

Basic net income per share

$ 2.41

$ 2.94

$ 1.39

$ 10.35

$ 7.69

Diluted net income per share

$ 2.40

$ 2.93

$ 1.39

$ 10.31

$ 7.67

Shares used in computing basic net income per share

94,268

93,683

92,573

93,615

91,569

Shares used in computing diluted net income per share

94,667

94,168

92,752

94,009

91,828

EQUINIX, INC.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(in thousands)

(unaudited)

Three Months Ended

Twelve Months Ended

December 31,
2023

September 30,
2023

December 31,
2022

December 31,
2023

December 31,
2022

Net income

$ 227,477

$ 275,760

$ 128,903

$ 968,980

$ 704,577

Other comprehensive income (loss), net of tax:

Foreign currency translation adjustment (“CTA”) gain (loss)

479,754

(412,910)

796,716

249,981

(769,886)

Unrealized gain (loss) on cash flow hedges

(26,382)

25,685

(50,231)

(18,370)

40,543

Net investment hedge CTA gain (loss)

(217,345)

149,608

(379,960)

(131,883)

425,701

Net actuarial loss on defined benefit plans

(112)

(119)

(42)

(462)

(101)

Total other comprehensive income (loss), net of tax

235,915

(237,736)

366,483

99,266

(303,743)

Comprehensive income, net of tax

463,392

38,024

495,386

1,068,246

400,834

Net (income) loss attributable to non-controlling interests

(140)

198

(232)

Other comprehensive (income) loss attributable to non-controlling interests

(22)

182

(12)

Comprehensive income attributable to common shareholders

$ 463,461

$ 38,240

$ 495,234

$ 1,068,507

$ 400,650

EQUINIX, INC.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

December 31, 2023

December 31, 2022

Assets

Cash and cash equivalents

$ 2,095,712

$ 1,906,421

Accounts receivable, net

1,003,792

855,380

Other current assets

468,193

459,138

Assets held for sale

—

84,316

Total current assets

3,567,697

3,305,255

Property, plant and equipment, net

18,600,833

16,649,534

Operating lease right-of-use assets

1,448,890

1,427,950

Goodwill

5,737,122

5,654,217

Intangible assets, net

1,704,870

1,897,649

Other assets

1,591,312

1,376,137

Total assets

$ 32,650,724

$ 30,310,742

Liabilities, Redeemable Non-Controlling Interest and Stockholders’ Equity

Accounts payable and accrued expenses

$ 1,186,618

$ 1,004,800

Accrued property, plant and equipment

398,216

281,347

Current portion of operating lease liabilities

130,745

139,538

Current portion of finance lease liabilities

138,657

151,420

Current portion of mortgage and loans payable

7,705

9,847

Current portion of senior notes

998,580

—

Other current liabilities

301,729

251,346

Total current liabilities

3,162,250

1,838,298

Operating lease liabilities, less current portion

1,331,333

1,272,812

Finance lease liabilities, less current portion

2,122,484

2,143,690

Mortgage and loans payable, less current portion

663,263

642,708

Senior notes, less current portion

12,062,346

12,109,539

Other liabilities

795,549

797,863

Total liabilities

20,137,225

18,804,910

Redeemable non-controlling interest

25,000

—

Common stockholders’ equity:

Common stock

Additional paid-in capital

18,595,664

17,320,017

Treasury stock

(56,117)

(71,966)

Accumulated dividends

(8,694,647)

(7,317,570)

Accumulated other comprehensive loss

(1,290,117)

(1,389,446)

Retained earnings

3,934,016

2,964,838

Total common stockholders’ equity

12,488,894

11,505,966

Non-controlling interests

(395)

(134)

Total stockholders’ equity

12,488,499

11,505,832

Total liabilities, redeemable non-controlling interest and stockholders’ equity

$ 32,650,724

$ 30,310,742

Ending headcount by geographic region is as follows:

Americas headcount

5,953

5,493

EMEA headcount

4,267

3,936

Asia-Pacific headcount

2,931

2,668

Total headcount

13,151

12,097

EQUINIX, INC.

Summary of Debt Principal Outstanding

(in thousands)

(unaudited)

December 31, 2023

December 31, 2022

Finance lease liabilities

$ 2,261,141

$ 2,295,110

Term loans

641,931

618,028

Mortgage payable and other loans payable

29,037

34,527

Plus: debt discount and issuance costs, net

726

1,062

Total mortgage and loans payable principal

671,694

653,617

Senior notes

13,060,926

12,109,539

Plus: debt discount and issuance costs

108,026

117,351

Total senior notes principal

13,168,952

12,226,890

Total debt principal outstanding

$ 16,101,787

$ 15,175,617

EQUINIX, INC.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Three Months Ended

Twelve Months Ended

December 31,
2023

September 30,
2023

December 31,
2022

December 31,
2023

December 31,
2022

Cash flows from operating activities:

Net income

$ 227,477

$ 275,760

$ 128,903

$ 968,980

$ 704,577

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, amortization and accretion

462,367

466,613

438,492

1,843,665

1,739,374

Stock-based compensation

105,829

98,446

107,519

407,536

403,983

Amortization of debt issuance costs and debt discounts and premiums

4,791

4,684

4,553

18,718

17,826

(Gain) loss on debt extinguishment

(71)

360

(143)

(327)

Loss (gain) on asset sales

(24)

(3,933)

—

(5,046)

3,976

Other items

15,788

12,776

44,880

58,030

67,298

Changes in operating assets and liabilities:

Accounts receivable

49,358

(47,147)

(56,209)

(150,345)

(153,415)

Income taxes, net

10,692

(14,530)

(17,701)

4,107

(7,827)

Accounts payable and accrued expenses

76,351

69,082

31,511

161,300

114,600

Operating lease right-of-use assets

21,624

39,977

36,171

138,704

149,094

Operating lease liabilities

(27,575)

(33,654)

(34,586)

(126,539)

(132,831)

Other assets and liabilities

52,107

(83,259)

76,799

(102,550)

56,854

Net cash provided by operating activities

998,714

785,175

760,189

3,216,595

2,963,182

Cash flows from investing activities:

Purchases, sales and maturities of investments, net

(54,534)

(26,664)

(35,222)

(135,881)

(122,569)

Business acquisitions, net of cash and restricted cash acquired

—

(964,010)

Real estate acquisitions

(231,108)

(112,896)

(208,377)

(384,401)

(248,276)

Purchases of other property, plant and equipment

(995,720)

(617,539)

(827,927)

(2,781,018)

(2,278,004)

Proceeds from asset sales

—

4,682

—

76,936

249,906

Net cash used in investing activities

(1,281,362)

(752,417)

(1,071,526)

(3,224,364)

(3,362,953)

Cash flows from financing activities:

Proceeds from employee equity awards

(115)

42,420

—

86,848

81,543

Proceeds from redeemable non-controlling interest

—

25,000

—

Payment of dividend distributions

(403,176)

(324,587)

(287,573)

(1,374,168)

(1,151,459)

Proceeds from public offering of common stock, net of offering costs

432,876

—

733,651

796,018

Proceeds from mortgage and loans payable

—

676,850

Proceeds from senior notes, net of debt discounts

—

336,853

—

902,092

1,193,688

Repayment of finance lease liabilities

(50,822)

(31,629)

(36,394)

(148,913)

(134,202)

Repayment of mortgage and loans payable

(576)

(2,133)

(1,714)

(6,132)

(587,941)

Repayment of senior notes

—

Debt extinguishment costs

—

Debt issuance costs

307

(2,982)

—

(6,932)

(17,731)

Net cash provided by (used in) financing activities

(21,506)

17,942

(325,681)

211,446

856,766

Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash

42,209

(35,027)

37,398

(15,616)

(98,201)

Net increase (decrease) in cash, cash equivalents and restricted cash

(261,945)

15,673

(599,620)

188,061

358,794

Cash, cash equivalents and restricted cash at beginning of period

2,358,254

2,342,581

2,507,868

1,908,248

1,549,454

Cash, cash equivalents and restricted cash at end of period

$ 2,096,309

$ 2,358,254

$ 1,908,248

$ 2,096,309

$ 1,908,248

Supplemental cash flow information:

Cash paid for taxes

$ 26,662

$ 42,021

$ 44,091

$ 152,988

$ 140,312

Cash paid for interest

$ 136,224

$ 97,152

$ 128,511

$ 471,456

$ 430,217

Free cash flow (negative free cash flow)(1)

$ (228,114)

$ 59,422

$ (276,115)

$ 128,112

$ (277,202)

Adjusted free cash flow (2)

$ 2,994

$ 172,318

$ (67,738)

$ 512,513

$ 935,084

(1)

We define free cash flow (negative free cash flow) as net cash provided by operating activities plus net cash provided by (used in) investing activities (excluding the net purchases, sales and maturities of investments) as presented below:

Net cash provided by operating activities as presented above

$ 998,714

$ 785,175

$ 760,189

$ 3,216,595

$ 2,963,182

Net cash used in investing activities as presented above

(1,281,362)

(752,417)

(1,071,526)

(3,224,364)

(3,362,953)

Purchases, sales and maturities of investments, net

54,534

26,664

35,222

135,881

122,569

Free cash flow (negative free cash flow)

$ (228,114)

$ 59,422

$ (276,115)

$ 128,112

$ (277,202)

(2)

We define adjusted free cash flow as free cash flow (negative free cash flow) as defined above, excluding any real estate and business acquisitions, net of cash and restricted cash acquired as presented below:

Free cash flow (negative free cash flow) as defined above

$ (228,114)

$ 59,422

$ (276,115)

$ 128,112

$ (277,202)

Less business acquisitions, net of cash and restricted cash acquired

—

964,010

Less real estate acquisitions

231,108

112,896

208,377

384,401

248,276

Adjusted free cash flow

$ 2,994

$ 172,318

$ (67,738)

$ 512,513

$ 935,084

EQUINIX, INC.

Non-GAAP Measures and Other Supplemental Data

(in thousands)

(unaudited)

Three Months Ended

Twelve Months Ended

December 31, 2023

September 30, 2023

December 31, 2022

December 31, 2023

December 31, 2022

Recurring revenues

$ 1,976,038

$ 1,961,043

$ 1,773,380

$ 7,744,731

$ 6,871,287

Non-recurring revenues

134,451

99,987

97,465

443,405

391,818

Revenues (1)

2,110,489

2,061,030

1,870,845

8,188,136

7,263,105

Cash cost of revenues (2)

756,510

725,750

642,176

2,869,034

2,436,074

Cash gross profit (3)

1,353,979

1,335,280

1,228,669

5,319,102

4,827,031

Cash operating expenses (4)(7):

Cash sales and marketing expenses (5)

147,084

138,879

140,697

567,514

506,609

Cash general and administrative

expenses (6)

286,438

260,470

249,232

1,049,747

950,722

Total cash operating expenses (4)(7)

433,522

399,349

389,929

1,617,261

1,457,331

Adjusted EBITDA (8)

$ 920,457

$ 935,931

$ 838,740

$ 3,701,841

$ 3,369,700

Cash gross margins (9)

64 %

65 %

66 %

65 %

66 %

Adjusted EBITDA

margins (10)

44 %

45 %

46 %

Adjusted EBITDA flow-through rate (11)

(31) %

82 %

(107) %

36 %

FFO (12)

$ 524,505

$ 562,080

$ 406,945

$ 2,129,977

$ 1,826,334

AFFO (13) (14)

$ 690,846

$ 771,617

$ 657,818

$ 3,018,518

$ 2,713,878

Basic FFO per share (15)

$ 5.56

$ 6.00

$ 4.40

$ 22.75

$ 19.94

Diluted FFO per share (15)

$ 5.54

$ 5.97

$ 4.39

$ 22.66

$ 19.89

Basic AFFO per share (15)

$ 7.33

$ 8.24

$ 7.11

$ 32.24

$ 29.64

Diluted AFFO per share(15)

$ 7.30

$ 8.19

$ 7.09

$ 32.11

$ 29.55

(1)

The geographic split of our revenues on a services basis is presented below:

Americas Revenues:

Colocation

$ 610,512

$ 596,871

$ 568,240

$ 2,365,049

$ 2,187,751

Interconnection

210,550

206,552

197,337

820,007

756,214

Managed infrastructure

65,024

63,356

59,244

249,779

218,499

Other

6,657

5,503

4,885

22,118

20,727

Recurring revenues

892,743

872,282

829,706

3,456,953

3,183,191

Non-recurring revenues

38,968

41,411

42,065

160,539

166,026

Revenues

$ 931,711

$ 913,693

$ 871,771

$ 3,617,492

$ 3,349,217

EMEA Revenues:

Colocation

$ 540,935

$ 538,256

$ 450,480

$ 2,112,168

$ 1,744,121

Interconnection

79,619

78,795

66,710

307,337

268,398

Managed infrastructure

32,956

32,790

29,431

130,061

119,361

Other

23,816

23,283

23,882

98,591

75,449

Recurring revenues

677,326

673,124

570,503

2,648,157

2,207,329

Non-recurring revenues

73,840

35,590

31,208

189,697

135,875

Revenues

$ 751,166

$ 708,714

$ 601,711

$ 2,837,854

$ 2,343,204

Asia-Pacific Revenues:

Colocation

$ 317,969

$ 329,054

$ 291,480

$ 1,288,844

$ 1,150,738

Interconnection

67,538

67,411

61,572

266,966

243,664

Managed infrastructure

17,191

17,484

17,819

71,833

77,646

Other

3,271

1,688

2,300

11,978

8,719

Recurring revenues

405,969

415,637

373,171

1,639,621

1,480,767

Non-recurring revenues

21,643

22,986

24,192

93,169

89,917

Revenues

$ 427,612

$ 438,623

$ 397,363

$ 1,732,790

$ 1,570,684

Worldwide Revenues:

Colocation

$ 1,469,416

$ 1,464,181

$ 1,310,200

$ 5,766,061

$ 5,082,610

Interconnection

357,707

352,758

325,619

1,394,310

1,268,276

Managed infrastructure

115,171

113,630

106,494

451,673

415,506

Other

33,744

30,474

31,067

132,687

104,895

Recurring revenues

1,976,038

1,961,043

1,773,380

7,744,731

6,871,287

Non-recurring revenues

134,451

99,987

97,465

443,405

391,818

Revenues

$ 2,110,489

$ 2,061,030

$ 1,870,845

$ 8,188,136

$ 7,263,105

(2)

We define cash cost of revenues as cost of revenues less depreciation, amortization, accretion and stock-based compensation as presented below:

Cost of revenues

$ 1,091,776

$ 1,068,991

$ 970,700

$ 4,227,658

$ 3,751,501

Depreciation, amortization and accretion expense

(322,366)

(330,852)

(316,549)

(1,309,613)

(1,270,399)

Stock-based compensation expense

(12,900)

(12,389)

(11,975)

(49,011)

(45,028)

Cash cost of revenues

$ 756,510

$ 725,750

$ 642,176

$ 2,869,034

$ 2,436,074

The geographic split of our cash cost of revenues is presented below:

Americas cash cost of revenues

$ 263,165

$ 270,272

$ 263,374

$ 1,045,526

$ 994,389

EMEA cash cost of revenues

326,137

304,345

226,574

1,199,345

866,292

Asia-Pacific cash cost of revenues

167,208

151,133

152,228

624,163

575,393

Cash cost of revenues

$ 756,510

$ 725,750

$ 642,176

$ 2,869,034

$ 2,436,074

(3)

We define cash gross profit as revenues less cash cost of revenues (as defined above).

(4)

We define cash operating expense as selling, general, and administrative expense less depreciation, amortization, and stock-based compensation. We also refer to cash operating expense as cash selling, general and administrative expense or “cash SG&A”.

Selling, general, and administrative expense

$ 666,452

$ 616,396

$ 607,416

$ 2,509,838

$ 2,285,261

Depreciation and amortization expense

(140,001)

(130,990)

(121,943)

(534,052)

(468,975)

Stock-based compensation expense

(92,929)

(86,057)

(95,544)

(358,525)

(358,955)

Cash operating expense

$ 433,522

$ 399,349

$ 389,929

$ 1,617,261

$ 1,457,331

(5)

We define cash sales and marketing expense as sales and marketing expense less depreciation, amortization and stock-based compensation as presented below:

Sales and marketing expense

$ 217,603

$ 212,506

$ 207,233

$ 855,796

$ 786,560

Depreciation and amortization expense

(50,632)

(50,989)

(49,604)

(203,698)

(197,157)

Stock-based compensation expense

(19,887)

(22,638)

(16,932)

(84,584)

(82,794)

Cash sales and marketing expense

$ 147,084

$ 138,879

$ 140,697

$ 567,514

$ 506,609

(6)

We define cash general and administrative expense as general and administrative expense less depreciation, amortization and stock-based compensation as presented below:

General and administrative expense

$ 448,849

$ 403,890

$ 400,183

$ 1,654,042

$ 1,498,701

Depreciation and amortization expense

(89,369)

(80,001)

(72,339)

(330,354)

(271,818)

Stock-based compensation expense

(73,042)

(63,419)

(78,612)

(273,941)

(276,161)

Cash general and administrative expense

$ 286,438

$ 260,470

$ 249,232

$ 1,049,747

$ 950,722

(7)

The geographic split of our cash operating expense, or cash SG&A, as defined above, is presented below:

Americas cash SG&A

$ 257,581

$ 238,524

$ 214,560

$ 958,270

$ 833,053

EMEA cash SG&A

105,253

94,197

104,648

387,233

367,410

Asia-Pacific cash SG&A

70,688

66,628

70,721

271,758

256,868

Cash SG&A

$ 433,522

$ 399,349

$ 389,929

$ 1,617,261

$ 1,457,331

(8)

We define adjusted EBITDA as income from operations excluding depreciation, amortization, accretion, stock-based compensation, restructuring charges, impairment charges, transaction costs and gain or loss on asset sales as presented below:

Net income

$ 227,477

$ 275,760

$ 128,903

$ 968,980

$ 704,577

Income tax expense

42,825

19,985

48,807

155,250

124,792

Interest income

(28,225)

(23,111)

(18,462)

(94,227)

(36,268)

Interest expense

103,183

101,385

94,200

402,022

356,337

Other expense

1,227

5,972

28,895

11,214

51,417

(Gain) loss on debt extinguishment

(71)

360

(143)

(327)

Depreciation, amortization and accretion expense

462,367

461,842

438,492

1,843,665

1,739,374

Stock-based compensation expense

105,829

98,446

107,519

407,536

403,983

Transaction costs

5,869

(775)

10,529

12,412

21,839

(Gain) loss on asset sales

(24)

(3,933)

—

(5,046)

3,976

Adjusted EBITDA

$ 920,457

$ 935,931

$ 838,740

$ 3,701,841

$ 3,369,700

The geographic split of our adjusted EBITDA is presented below:

Americas net income (loss)

$ 57,548

$ 37,911

$ (67,580)

$ 12,703

$ (584)

Americas income tax expense (benefit)

(89,606)

19,897

(33,279)

22,818

42,587

Americas interest income

(20,633)

(17,506)

(16,259)

(71,945)

(32,265)

Americas interest expense

87,827

86,691

83,363

342,690

316,934

Americas other (income) expense

50,797

(39,137)

104,539

24,752

(42,895)

Americas loss on debt extinguishment

—

198

Americas depreciation, amortization and accretion expense

251,276

251,855

237,919

999,832

932,892

Americas stock-based compensation expense

70,914

64,067

76,131

272,259

282,997

Americas transaction costs

2,923

1,054

9,003

7,064

17,950

Americas (gain) loss on asset sales

(82)

—

3,523

3,961

Americas adjusted EBITDA

$ 410,964

$ 404,897

$ 393,837

$ 1,613,696

$ 1,521,775

EMEA net income

$ 174,108

$ 125,992

$ 195,224

$ 651,057

$ 477,808

EMEA income tax expense

49,560

—

16,531

49,560

16,650

EMEA interest income

(3,903)

(2,730)

(1,251)

(12,045)

(2,530)

EMEA interest expense

4,530

3,931

2,675

17,167

5,698

EMEA other (income) expense

(53,621)

42,284

(77,880)

(30,679)

77,705

EMEA depreciation, amortization and accretion expense

124,536

125,613

116,097

497,924

459,098

EMEA stock-based compensation expense

21,271

20,958

18,840

82,575

73,294

EMEA transaction costs

3,238

(1,878)

253

4,286

2,016

EMEA (gain) loss on asset sales

(3,998)

—

(8,569)

(237)

EMEA adjusted EBITDA

$ 319,777

$ 310,172

$ 270,489

$ 1,251,276

$ 1,109,502

Asia-Pacific net income (loss)

$ (4,179)

$ 111,857

$ 1,259

$ 305,220

$ 227,353

Asia-Pacific income tax expense

82,871

65,555

82,872

65,555

Asia-Pacific interest income

(3,689)

(2,875)

(952)

(10,237)

(1,473)

Asia-Pacific interest expense

10,826

10,763

8,162

42,165

33,705

Asia-Pacific other expense

4,051

2,825

2,236

17,141

16,607

Asia-Pacific (gain) loss on debt extinguishment

(71)

360

(143)

(525)

Asia-Pacific depreciation, amortization and accretion expense

86,555

84,374

84,476

345,909

347,384

Asia-Pacific stock-based compensation expense

13,644

13,421

12,548

52,702

47,692

Asia-Pacific transaction costs

(292)

1,273

1,062

1,873

Asia-Pacific loss on asset sales

—

252

Asia-Pacific adjusted EBITDA

$ 189,716

$ 220,862

$ 174,414

$ 836,869

$ 738,423

(9)

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 %

70 %

71 %

70 %

EMEA cash gross margins

57 %

62 %

58 %

63 %

Asia-Pacific cash gross margins

61 %

66 %

62 %

64 %

63 %

(10)

We define adjusted EBITDA margins as adjusted EBITDA divided by revenues.

Americas adjusted EBITDA margins

44 %

45 %

EMEA adjusted EBITDA margins

43 %

44 %

45 %

44 %

47 %

Asia-Pacific adjusted EBITDA margins

44 %

50 %

44 %

48 %

47 %

(11)

We define adjusted EBITDA flow-through rate as incremental adjusted EBITDA growth divided by incremental revenue growth as follows:

Adjusted EBITDA – current period

$ 920,457

$ 935,931

$ 838,740

$ 3,701,841

$ 3,369,700

Less adjusted EBITDA – prior period

(935,931)

(901,170)

(870,916)

(3,369,700)

(3,144,384)

Adjusted EBITDA growth

$ (15,474)

$ 34,761

$ (32,176)

$ 332,141

$ 225,316

Revenues – current period

$ 2,110,489

$ 2,061,030

$ 1,870,845

$ 8,188,136

$ 7,263,105

Less revenues – prior period

(2,061,030)

(2,018,408)

(1,840,659)

(7,263,105)

(6,635,537)

Revenue growth

$ 49,459

$ 42,622

$ 30,186

$ 925,031

$ 627,568

Adjusted EBITDA flow-through rate

(31) %

82 %

(107) %

36 %

(12)

FFO is defined as net income or loss, excluding gain or loss from the disposition of real estate assets, depreciation and amortization on real estate assets and adjustments for unconsolidated joint ventures’ and non-controlling interests’ share of these items.

Net income

$ 227,477

$ 275,760

$ 128,903

$ 968,980

$ 704,577

Net (income) loss attributable to non-controlling interests

(140)

198

(232)

Net income attributable to common shareholders

227,568

275,794

128,763

969,178

704,345

Adjustments:

Real estate depreciation

289,747

284,760

274,625

1,141,861

1,104,787

(Gain) loss on disposition of real estate property

1,642

(3,480)

437

1,898

7,134

Adjustments for FFO from unconsolidated joint ventures

5,548

5,006

3,120

17,040

10,068

FFO attributable to common shareholders

$ 524,505

$ 562,080

$ 406,945

$ 2,129,977

$ 1,826,334

(13)

AFFO is defined as FFO, excluding depreciation and amortization expense on non-real estate assets, accretion, stock-based compensation, stock-based charitable contributions, restructuring charges, impairment charges, transaction costs, an installation revenue adjustment, a straight-line rent expense adjustment, a contract cost adjustment, amortization of deferred financing costs and debt discounts and premiums, gain or loss on debt extinguishment, an income tax expense adjustment, net income or loss from discontinued operations, net of tax, recurring capital expenditures and adjustments from FFO to AFFO for unconsolidated joint ventures’ and non-controlling interests’ share of these items.

FFO attributable to common shareholders

$ 524,505

$ 562,080

$ 406,945

$ 2,129,977

$ 1,826,334

Adjustments:

Installation revenue adjustment

507

(481)

6,975

3,910

17,745

Straight-line rent expense adjustment

(5,952)

6,323

1,585

12,164

16,263

Amortization of deferred financing costs and debt discounts

4,792

4,684

4,553

18,719

17,826

Contract cost adjustment

(16,349)

(9,835)

(17,380)

(46,601)

(52,888)

Stock-based compensation expense

105,829

98,446

107,519

407,536

403,983

Stock-based charitable contributions

—

34,974

2,543

49,013

Non-real estate depreciation expense

121,852

125,882

111,342

494,214

426,666

Amortization expense

51,864

52,297

51,438

209,063

204,755

Accretion expense

(1,096)

(1,097)

1,086

(1,473)

3,166

Recurring capital expenditures

(105,150)

(51,736)

(80,047)

(218,287)

(188,885)

(Gain) loss on debt extinguishment

(71)

360

(143)

(327)

Transaction costs

5,869

(775)

10,529

12,412

21,839

Impairment charges (1)

—

1,518

—

1,518

1,815

Income tax expense (benefit) adjustment (1)

1,462

(16,719)

19,806

(12,133)

(31,165)

Adjustments for AFFO from unconsolidated joint ventures

2,784

670

(1,364)

4,921

(2,262)

AFFO attributable to common shareholders

$ 690,846

$ 771,617

$ 657,818

$ 3,018,518

$ 2,713,878

(1) Impairment charges relate to the impairment of an indemnification asset resulting from the settlement of a pre-acquisition uncertain tax position, which was recorded as Other Income (Expense) on the Condensed Consolidated Statements of Operations. This impairment charge was offset by the recognition of tax benefits in the same amount, which was included within the Income tax expense adjustment line on the table above.

(14)

Below is how we reconcile from adjusted EBITDA to AFFO:

Adjusted EBITDA

$ 920,457

$ 935,931

$ 838,740

$ 3,701,841

$ 3,369,700

Adjustments:

Interest expense, net of interest income

(74,958)

(78,274)

(75,738)

(307,795)

(320,069)

Amortization of deferred financing costs and debt discounts

4,792

4,684

4,553

18,719

17,826

Income tax expense

(42,825)

(19,985)

(48,807)

(155,250)

(124,792)

Income tax expense (benefit) adjustment (1)

1,462

(16,719)

19,806

(12,133)

(31,165)

Straight-line rent expense adjustment

(5,952)

6,323

1,585

12,164

16,263

Stock-based charitable contributions

—

34,974

2,543

49,013

Contract cost adjustment

(16,349)

(9,835)

(17,380)

(46,601)

(52,888)

Installation revenue adjustment

507

(481)

6,975

3,910

17,745

Recurring capital expenditures

(105,150)

(51,736)

(80,047)

(218,287)

(188,885)

Other expense

(1,227)

(5,972)

(28,895)

(11,214)

(51,417)

(Gain) loss on disposition of real estate property

1,642

(3,480)

437

1,898

7,134

Adjustments for unconsolidated JVs’ and non-controlling interests

8,423

5,710

1,615

22,159

7,574

Adjustments for impairment charges (1)

—

1,518

—

1,518

1,815

Adjustment for gain (loss) on sale of assets

3,933

—

5,046

(3,976)

AFFO attributable to common shareholders

$ 690,846

$ 771,617

$ 657,818

$ 3,018,518

$ 2,713,878

(15)

The shares used in the computation of basic and diluted FFO and AFFO per share attributable to common shareholders is presented below:

Shares used in computing basic net income per share, FFO per share and AFFO per share

94,268

93,683

92,573

93,615

91,569

Effect of dilutive securities:

Employee equity awards

399

485

179

394

259

Shares used in computing diluted net income per share, FFO per share and AFFO per share

94,667

94,168

92,752

94,009

91,828

Basic FFO per share

$ 5.56

$ 6.00

$ 4.40

$ 22.75

$ 19.94

Diluted FFO per share

$ 5.54

$ 5.97

$ 4.39

$ 22.66

$ 19.89

Basic AFFO per share

$ 7.33

$ 8.24

$ 7.11

$ 32.24

$ 29.64

Diluted AFFO per share

$ 7.30

$ 8.19

$ 7.09

$ 32.11

$ 29.55

View original content to download multimedia:https://www.prnewswire.com/news-releases/equinix-reports-fourth-quarter-and-full-year-2023-results-302062112.html

SOURCE Equinix, Inc.

Technology

Sabio Holdings Inc. Announces Fiscal 2025 Results, Achieves Continued Growth and Advances Strategic Revenue Diversification

Published

52 minutes ago

April 30, 2026

Achieved full-year IFRS revenue of $38.2 million and consolidated gross revenues1 of $41.3 million in FY2025, with continued growth in core ad-supported streaming businessFull-year gross margin of 60% in FY2025Scaled programmatic and international channels to 48% of Q4 2025 gross revenue1 mixEntering 2026 with strong momentum ahead of U.S. mid-term election cycle expected to drive increased demand and margin expansionConference call to be hosted on May 01, 2026 at 10:00 a.m. ET / 7 a.m. PT

TORONTO, April 30, 2026 /PRNewswire/ — Sabio Holdings Inc. (TSXV: SBIO) (OTCQB: SABOF) (the “Company” or “Sabio”), a Los Angeles-based ad-tech company helping global brands reach, engage and validate (R.E.V.) streaming TV audiences, today announced its audited consolidated financial results for the fiscal fourth quarter and year ended December 31, 2025. Unless otherwise indicated, all amounts are expressed in U.S. dollars.

“Despite economic uncertainties, including tariff-related impacts on two of our larger verticals, automotive and telecommunications, Sabio delivered double-digit top-line growth in its core business, supported by ongoing investment in product innovation and geographic expansion,” said Aziz Rahimtoola, Sabio Holdings’ CEO. “2025 was a year of strategic execution and transformation for Sabio. We scaled programmatic, expanded internationally, and built out Creator TV, further diversifying our revenue base. These initiatives are now contributing meaningfully to our results and positioning us for more predictable, scalable growth, underscoring the resilience of our platform and customer base even amid category-specific softness.”

“As we enter 2026, we are doing so with strong momentum across our business and ahead of a major U.S. mid-term election cycle. Historically, these cycles drive significant demand for streaming TV and mobile video advertising, and we believe Sabio is better positioned than ever to capture that opportunity.”

Fiscal 2025 Financial Highlights

Full-year consolidated gross revenue1 of $41.3 million (vs. $49.6 million in FY2024) and up 15% from $36.0 million in the last non-election year (2023). Core-business gross revenue2 grew 10% year over year, normalized for political and advocacy.Core ad-supported streaming gross revenue2 grew 18% year over year (normalized for political and advocacy). Total ad-supported streaming gross revenue2 declined to $30.2 million from $38.6 million, reflecting the expected post-election pullback in political and advocacy spending.Sabio’s newest international and programmatic offerings accelerated through 2025, with international sales3 rising from $0.2 million in Q1 to $2.6 million in Q4, and programmatic sales from $0.2 million to $2.7 million.Full year gross margin of 60%.Full-year Adjusted EBITDA4 loss of $7.1 million (vs. $3.8 million gain in FY2024), driven by lower political and advocacy spend in a non-election year, continued investment in growth initiatives (international, programmatic and Creator TV), and higher cloud infrastructure costs to support scaling programmatic and international volumes.

Fourth Quarter 2025 Financial Highlights

Consolidated gross revenue1 of $11.2 million in Q4 2025 (vs. $18.3 million in Q4 2024), reflecting the expected post-election decline in political and advocacy spend, with some softness in select verticals tied to tariff uncertainty. Despite these headwinds, core-business gross revenue2 grew 10% year over year, normalized for political and advocacy.Core ad-supported streaming gross revenue2 grew 29% year over year (normalized for political and advocacy). Total ad-supported streaming gross revenue2 declined to $8.4 million from $14.5 million, reflecting elevated spend in the prior year tied to the 2024 U.S. general election.Programmatic and international channels represented 48% of Q4 2025 revenue mix.Gross margin remained strong (57%), supported by Sabio’s end-to-end technology stack amid an evolving revenue mix.Adjusted EBITDA4 loss of $2.1 million (vs. $2.8 million gain in Q4 2024), reflecting lower political and advocacy spend in a non-election year and temporary softness in select advertiser categories tied to tariff uncertainty.

Subsequent Highlights

On April 29, 2026, the Company completed a tranche of a non-brokered private placement of 12% subordinated, secured convertible debentures for gross proceeds of CAD $900,000. The debentures have a 12-month term, bear 12% simple interest (calculated daily, paid semi-annually in arrears and at conversion or maturity), and are convertible at the holder’s option at C$0.30 per share. The debentures are secured by a general security agreement over all present and after-acquired personal property. At maturity, any unconverted principal is repayable at 107% plus accrued interest. The Company may complete additional tranches.

Business Highlights

Strategic Diversification Driving Scalable Growth

Programmatic and international channels scaled significantly throughout 2025, reaching 48% of Q4 2025 revenue mixBoth channels contributed meaningfully to full-year revenue growth, reflecting successful execution of diversification strategy

Core Branded Business

Core ad-supported streaming revenue2 grew 29% year-over-year (normalized)Growth was achieved despite softness in the automotive category in the second half of 2025, reflecting broader industry headwindsApproximately 80% reoccurring revenue5 base, supporting revenue stability Strong client retention with increased spend from existing customers

Expanding and Diversifying Customer Base

New customer logos increased 153% year-over-yearGrowth across telecommunications, financial services, entertainment, and technology verticalsIncreasing engagement with Fortune 500 advertisers

Creator TV Growth and Monetization

Expanded Creator TV distribution across major streaming platformsGrowth in original content and live programmingStrengthening of Sabio’s owned-and-operated media ecosystem

App Science® Platform and Data Leadership

Reaches approximately 80 million U.S. households, representing ~70% of the estimated 115 million U.S. streaming households, according to eMarketer6AI-powered targeting, analytics, and performance measurement capabilitiesIncreasing adoption across campaigns and insights offerings

Operational and Financial Position

Continued investments in programmatic, Creator TV, and international expansionBalance sheet strengthened through financing and debt restructuring initiatives Positioned to benefit from increasing operating leverage as scalable channels grow

Business Outlook
Sabio enters fiscal 2026 with strong momentum following the successful diversification of its revenue base in 2025.

The Company’s scaled programmatic and international offerings, combined with its expanding Creator TV ecosystem, are expected to contribute more meaningfully to results in 2026. As these channels grow, Sabio expects to benefit from increased operating leverage through its technology platform, enabling more efficient revenue growth with limited incremental headcount.

Sabio’s strengthened customer base and high level of reoccurring revenue also provide increased visibility and predictability entering the year.

Early 2026 Trends
Based on current internal data and sales pipeline trends, early activity in the first quarter of 2026 indicates continued strong momentum, with programmatic and international revenues3 growing at over 20x year-over-year levels.

________________________

Gross revenue is a non‑IFRS (non‑GAAP) financial measure; see “Use of Non‑IFRS Measures” and “Selected Financials” for definitions and reconciliations to the most directly comparable IFRS measure.

Core-business gross revenue, core ad-supported streaming gross revenue and total ad-supported streaming gross revenue are supplementary financial measures; see “Use of Non‑IFRS Measures” for definitions.

International sales is a supplementary financial measure; see “Use of Non‑IFRS Measures” for its definition.

Adjusted EBITDA is a non‑IFRS (non‑GAAP) financial measure; see “Use of Non‑IFRS Measures” and “Selected Financials” for definitions and reconciliations to the most directly comparable IFRS measure.

Reoccurring revenue is a non‑IFRS (non‑GAAP) financial measure; see “Use of Non‑IFRS Measures” and “Selected Financials” for definitions and reconciliations to the most directly comparable IFRS measure

eMarketer “CTV households will be more than double traditional pay TV ones by next year“

Positioned for U.S. Mid-Term Election Cycle
Sabio is entering the 2026 U.S. mid-term election cycle, which historically drives significant demand across streaming TV and mobile video advertising.

The Company expects:

Increased political and advocacy advertising spendImproved cash flow visibility due to prepaid campaign spendingPotential margin expansion driven by premium demand for targeted advertising

With a more diversified revenue base, expanded product capabilities, and scaled global footprint, Sabio expects strong performance throughout 2026, with momentum building through the election cycle and continuing into the remainder of the year.

Conference Call Details

Date: May 01, 2026Time: 10:00 a.m. ET / 7:00 a.m. PTWebcast Registration Link: https://us02web.zoom.us/webinar/register/WN_jj3qt1ZbSMKAHOTuS5_sZg

Selected Financials
(All figures in US$ unless otherwise noted)

For the three months ended

For the twelve months ended

December
31, 2025

December
31, 2024

December
31, 2025

December
31, 2024

Revenue

9,778,763

18,301,162

38,231,397

49,602,885

Gross profit

5,563,171

11,286,755

22,753,955

30,627,389

Gross margin

57 %

62 %

60 %

62 %

Adjusted EBITDA(*)

(2,100,718)

2,843,977

(7,147,846)

3,832,162

Net increase in cash and cash
equivalents during the period

(633,639)

428,553

(1,957,308)

688,327

Cash and cash equivalents – end of
the period

1,343,131

3,300,439

1,343,131

3,300,439

For the three months ended

For the twelve months ended

December
31, 2025

December
31, 2024

December
31, 2025

December
31, 2024

Income (loss) for the period

(2,817,019)

1,194,528

(9,834,993)

(110,875)

Finance costs

444,032

329,055

1,395,878

1,292,344

Interest earned

(9,199)

(9,957)

(39,177)

(41,568)

Amortization of intangible Assets

39,224

45,053

172,346

193,668

Stock-based compensation

52,571

53,129

281,791

216,037

Employee retention tax credit
received

(225,918)

–

(809,063)

–

Impairment loss on ROU asset

–

20,275

–

Gain on early lease termination

–

(7,317)

–

Loss on loan forgiveness

–

935,567

–

935,567

Amortization of lease

185,061

148,627

694,617

689,255

Income taxes

35,985

8,600

80,504

41,606

Foreign exchange differences

22,618

7,379

45,587

20,151

State and local taxes

123,343

1,457

171,874

42,340

Severance expenses

48,584

128,539

679,832

553,637

Adjusted EBITDA(*)

(2,100,718)

2,843,977

(7,147,846)

3,832,162

For the three months ended

For the twelve months ended

December
31, 2025

December
31, 2024

December
31, 2025

December
31, 2024

Net revenue

9,778,763

18,301,162

38,231,397

49,602,885

Add: platform costs

1,431,691

–

3,070,269

–

Gross revenue*

11,210,454

18,301,162

41,301,666

49,602,885

*See “Use of Non-IFRS Measures” below.

The financial disclosures in this news release are subject to a number of cautionary statements, assumptions, contingencies and risks as set forth in this news release. The foregoing outlook and expectations constitute forward-looking statements and financial outlook and are qualified in their entirety by the “Forward-Looking Statements” cautionary statement below. Readers are cautioned that this release if for information purposes only and may not be appropriate for other purposes.

* Use of Non-IFRS Measures
This press release makes reference to certain non-IFRS (International Financial Reporting Standards) measures including, but not limited to, Adjusted EBITDA and Gross Revenue. These measures do not have a standardized meaning prescribed by IFRS and therefore they may not be comparable to similarly titled measures presented by other companies and should not be considered in isolation nor as a substitute for analysis of financial information reported under IFRS. Rather, these non-IFRS measures are provided as additional information to complement IFRS measures by providing a further understanding of operations from management’s perspective.

Management uses adjusted earnings before interest, income taxes, depreciation, and amortization (“Adjusted EBITDA”) as a key financial metric to evaluate Sabio’s operating performance as a complement to results provided in accordance with IFRS. The term “Adjusted EBITDA”, as defined by management, refers to net income (loss) before adjusting earnings for finance costs, income taxes, stock-based compensation, amortization, non-recurring items, and severance costs. Management believes that the items excluded from Adjusted EBITDA are not connected to and do not represent the operating performance of Sabio. Management believes that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by Sabio’s main business activities prior to taking into consideration how those activities are financed and taxed as well as expenses related to stock-based compensation, depreciation, amortization, restructuring costs, other expense (income), and foreign exchange (gain) loss. Accordingly, management believes that this measure may also be useful to investors in enhancing their understanding of Sabio’s operating performance. It is a key measure used by Sabio’s management and board of directors to understand and evaluate Sabio’s operating performance, to prepare annual budgets, and to help develop operating plans.

The term “Gross Revenue”, as defined by management, represents revenue adjusted by adding back third-party platform costs that are deducted under IFRS presentation. This measure is intended to provide additional insight into the scale of Sabio’s advertising operations, particularly in its programmatic advertising business. Management believes that Gross Revenue is useful supplemental information as it provides an indication of the overall transaction volume processed by Sabio’s platform, which management uses to evaluate operational scale and market penetration. Accordingly, management believes that this measure may also be useful to investors in understanding the size and growth of Sabio’s advertising operations. It is a key measure used by Sabio’s management and board of directors to assess platform activity, monitor business trends, and support strategic planning.

Refer to reconciliation to Adjusted EBITDA and Gross Revenue under the “Selected Financials” section of this release and in the Company’s MD&A for the three and twelve months ended December 31, 2025 and December 31, 2024, copies of which can be found under Sabio Holdings Inc.’s profile on SEDAR Plus at sedarplus.ca.

Reoccurring revenue is a supplementary financial measure. This measure refers to the percentage of quarterly revenue generated from customers who have previously transacted with Sabio (defined as those with the same brand logo). It is derived from internal tracking systems and is used to assess customer retention and revenue predictability. This metric is not audited.

Ad-supported streaming sales and Mobile advertising revenue are supplementary financial measures that represent the proportion of the Company’s consolidated revenue as reported in its financial statements contributed by the Company’s ad-supported and mobile display product offerings, as is also presented in the Company’s MD&A for the three and twelve months ended December 31, 2025 and December 31, 2024, copies of which can be found under Sabio’s profile on SEDAR+ at sedarplus.ca.

Core ad-supported streaming revenue is a supplementary financial measure that represents revenue generated from Sabio’s core streaming TV and mobile video advertising services, excluding revenue from political and advocacy advertising campaigns.

Programmatic revenue is a supplementary financial measure represents revenue earned from advertising transactions executed through programmatic platforms, including Sabio’s and/or third parties.

International revenue is a supplementary financial measure which represents revenue generated from customers located outside the United States.

About Sabio
‍Sabio Holdings (TSXV: SBIO, OTCQB: SABOF) is a technology and services leader in the fast-growing ad-supported streaming space. Its cloud-based, end-to-end technology stack works with top blue-chip, global brands and the agencies that represent them to reach, engage, and validate (R.E.V.) streaming audiences.

Sabio consists of a proprietary ad-serving technology platform that partners with the top ad-supported streaming platforms and apps in the world, App Science™, a non-cookie-based software as a service (SAAS) analytics and insights platform with AI natural language capabilities, and Creator Television®(Creator TV), the first creator-led streaming network and content studio dedicated to bringing the authenticity and energy of social media storytelling to TV. For more information, visit: sabioctv.com

Forward-Looking Statements
This press release may contain certain forward-looking information and statements (“forward-looking information”) within the meaning of applicable Canadian securities legislation, which is often, but not always, identified by the use of words such as “believes,” “anticipates,” “plans,” “intends,” “will,” “should,” “expects,” “continue,” “estimate,” “forecasts,” or the negative thereof and other similar expressions. All statements herein other than statements of historical fact constitute forward-looking information, including but not limited to, statements relating to Sabio’s outlook for fiscal 2026; expectations regarding growth in programmatic, international and Creator TV revenues; anticipated operating leverage, margin expansion and cash flow visibility; expected increased demand for streaming TV and mobile video advertising during the 2026 U.S. mid‑term election cycle; the timing, magnitude and revenue mix of political and advocacy advertising spend; expectations regarding scalability of the Company’s technology platform; anticipated benefits from revenue diversification initiatives; early‑stage indications of year‑over‑year growth rates in programmatic and international channels; and the Company’s ability to maintain customer retention and reoccurring revenue levels. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. The Company undertakes no obligation to comment on analyses, expectations, or statements made by third parties in respect of the Company, its securities, or financial or operating results (as applicable). Material assumptions used to develop the forward-looking information in this press release include, but are not limited to: continued advertiser demand for connected TV and mobile video advertising; historical spending patterns associated with U.S. election cycles; successful execution and adoption of Sabio’s programmatic, international and Creator TV offerings; stable pricing and availability of streaming inventory; continued access to data, measurement and distribution partners. Although the Company believes that the expectations reflected in forward-looking information in this press release are reasonable, such forward-looking information has been based on expectations, factors, and assumptions concerning future events that may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company’s control, including fluctuations or delays in political and advocacy advertising spend; changes in advertiser budgeting or campaign timing; continued or worsening macroeconomic conditions, including tariff‑related impacts affecting key advertiser verticals; increased competition in the ad‑tech and streaming advertising markets; changes in consumer viewing behavior; pricing pressure or shifts in advertising mix; reliance on third‑party platforms, data providers and cloud infrastructure and other risk factors disclosed in the Company’s annual information form and management’s discussion and analysis (MD&A), which are publicly available on SEDAR Plus at www.sedarplus.ca . The Company has assumed that the material factors referred to herein will not cause such forward-looking statements and information to differ materially from actual results or events. However, there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. The forward-looking information contained in this press release is expressly qualified by this cautionary statement and is made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events, or otherwise.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information: Sajid Premji, Chief Financial Officer, investor@sabio.inc, Phone: 1.844.974.2662; Sam Wang, Investor Relations, investor@sabio.inc

View original content:https://www.prnewswire.com/news-releases/sabio-holdings-inc-announces-fiscal-2025-results-achieves-continued-growth-and-advances-strategic-revenue-diversification-302759594.html

SOURCE Sabio Inc.

Technology

TMO Labs Integrates with Sei Network to Bring Blockchain into Everyday Payments in Korea

Published

52 minutes ago

April 30, 2026

NEW YORK, April 30, 2026 /PRNewswire/ — The Sei Development Foundation announced today that TMO Labs, a Web3 fintech company, will integrate with Sei Network, a high-performance Layer-1 blockchain, with the integration aimed at bringing blockchain technology into Korea’s everyday payments and financial infrastructure.

As part of the integration, TMO Labs will use Sei as the core blockchain behind TMO Wallet, with a focus on expanding real-world use cases across consumer payments, rewards, and digital finance in Korea.

Sei was chosen for its ability to handle real-time payment environments. With sub-second finality and high throughput, it supports large-scale activity and high-frequency transactions without sacrificing the speed and reliability users expect from modern payment systems.

TMO Labs is a Korean payment infrastructure company with deep experience in transit payments, mobile payments, loyalty systems, and consumer financial services. Built on this foundation, TMO Labs develops platforms that connect digital assets with real-world utility.

Its flagship product, TMO Wallet, is already connected to DaemDaem, a widely used transportation top-up and lifestyle rewards app in Korea, and has access to a large existing user base. TMO Wallet is also designed to connect with major domestic payment and loyalty ecosystems, including Naver Pay, Payco, Happy Point, L.POINT, and transportation-linked payment rails such as TMONEY and EZL.

Even accounting for overlapping users, these platforms represent tens of millions of consumer touchpoints across Korea’s payment and rewards landscape.

Sei will serve as the blockchain layer powering TMO Wallet‘s next phase of real-world financial utility. Users will be able to hold Sei-based digital assets, including stablecoins, within the wallet and link those assets to TMO Labs’ point and payment infrastructure for use in everyday transactions.

This will enable a more unified wallet experience where users can manage digital assets, rewards points, and payment balances in one place, and apply them across real-life use cases such as retail purchases, online commerce, and transportation top-ups.

More broadly, the integration is part of an effort to better connect blockchain infrastructure with the real economy—linking onchain assets to the payment and rewards systems people in Korea already use every day.

TMO Labs’ integration with Sei will span several key areas, including:

blockchain-based payment and rewards infrastructure;integration with Korean payment and loyalty services;expansion into transportation, mobility, and lifestyle use cases; anddevelopment of consumer-facing Web3 financial services grounded in real-world utility.

Jin Kim, Founder of TMO Labs said, “This partnership marks an important step toward making blockchain technology a natural part of everyday financial activity and consumer spending in Korea. By combining TMO Labs’ payment infrastructure with Sei’s high-performance blockchain, we aim to deliver a practical digital finance experience centered on real usage.”

Justin Barlow, Executive Director of Sei Development Foundation added, “TMO Labs is closely connected to Korea’s payment, transit, and rewards infrastructure. Through this integration, TMO Labs is well positioned to deliver one of the most meaningful examples of blockchain being applied in real consumer environments.”

About TMO Labs

TMO Labs is a Korean payment infrastructure company. It develops services that connect digital assets with real-world financial use cases. Its flagship product, TMO Wallet, is an all-in-one digital wallet that enables users to manage blockchain assets, reward points, and prepaid balances in a single platform and apply them across transportation, shopping, and everyday consumer activities.

To learn more about TMO Labs, visit www.tmolabs.io.

About Sei Development Foundation

Sei Development Foundation is an independent US non-profit dedicated to the advancement and adoption of open source, permissionless protocols like Sei – the fastest EVM Layer 1 blockchain built to support world-scale decentralized applications. Through education, funding, and ecosystem support, the Sei Development Foundation collaborates with a global community of builders and users to promote and expand the benefits of Sei and related projects.

To learn more about Sei Development Foundation, visit www.seifdn.org.

About Sei Network

Sei is a blockchain designed for fast, cheap financial transactions, combining the network effects of Ethereum with the performance of Solana. Sei has processed more than five billion transactions across more than 95 million wallets and has become the #1 EVM chain by number of active users.

Learn more at www.sei.io.

View original content:https://www.prnewswire.com/news-releases/tmo-labs-integrates-with-sei-network-to-bring-blockchain-into-everyday-payments-in-korea-302759158.html

SOURCE Sei Development Foundation

Technology

ANGHAMI REPORTS FY2025 REVENUE OF $99.3M, UP 27%, ON 3.5M SUBSCRIBERS AND LANDMARK STRATEGIC PARTNERSHIPS

Published

2 hours ago

April 30, 2026

ABU DHABI, UAE, April 30, 2026 /PRNewswire/ — Anghami Inc. (NASDAQ: ANGH) (“Anghami”), the leading music and entertainment streaming platform in the MENA region, today announced its consolidated financial results for the year ended December 31, 2025, marked by revenue growth and subscribers reaching 3.5 million with a registered user base now exceeding 130 million, supported by landmark strategic partnerships.

HIGHLIGHTS

Revenue increased to $99.3 million in 2025, up 27% from $78.1 million in 2024. Growth came from subscriber gains across OSN+ and Anghami Plus, and the first full-year consolidation of OSN+ (April 1, 2024).Paid Subscribers exceeded 3.5 million across Anghami and OSN+, and registered users crossed 130 million.Warner Bros. Discovery closed its $57 million minority investment in OSN Streaming Limited in March 2025, expanding the content partnership and committing to joint investment in regional original production.Multiple strategic partnerships launched for OSN+ with Noon as well as a regional distribution agreement with talabat and the first-of-its-kind “Epic Bundle” with Shahid and Disney+ in December, delivering strong subscriber traction, high activation rates, and above-average conversion, reinforcing Anghami’s expanding distribution and monetization ecosystem.

Commenting on Anghami’s results, Elie Habib, CEO of Anghami, said: “2025 was the first full year of the combined Anghami and OSN+ business, and a year in which the scale of the opportunity became clear. Revenue grew 27% to $99.3 million. Paying subscribers exceeded 3.5 million, and our registered user base crossed 130 million across the MENA region.

We made important progress across the business. We rebuilt the OSN+ platform in-house, launched our first OSN+ Original, expanded strategic distribution partnerships with talabat and Noon, and signed the Epic Bundle with Shahid and Disney+, bringing three leading entertainment platforms into one subscription for the first time in the region. Warner Bros. Discovery’s investment in OSN Streaming Limited reflects confidence in our model, our market position, and the long-term value of premium regional streaming. Our HBO content commitments remain contractual and unchanged.

With a stronger product, a deeper content slate, Ramadan momentum, and early Epic Bundle traction, we enter 2026 focused on scaling revenue, improving unit economics, and converting momentum into sustainable growth.”

BUSINESS UPDATE

2025 marked a significant year in Anghami’s evolution as it progressed the integration of OSN+ into its multi-media streaming ecosystem and expanded its content, partnerships, and technology capabilities.

Anghami continued to invest in its proprietary technology, including AI-powered content recommendations, and completed the in-house rebuild of the OSN+ streaming platform, delivering improved performance, 4K capabilities, and full control over the user experience.

In January 2025, OSN+ premiered its original production The Fashionista, reinforcing the platform’s investment in locally relevant content alongside its exclusive HBO catalogue, which includes House of the Dragon, The Last of Us, and Game of Thrones.

In March 2025, Warner Bros. Discovery announced an agreement to acquire a minority stake in OSN Streaming Limited, Anghami’s majority shareholder, investing $57 million. The transaction expands the existing content partnership and includes plans to jointly invest in locally produced content targeting regional audiences.

OSN+ partnerships with talabat and Noon expanded distribution and opened new customer acquisition channels, while high-profile live events including the Amr Diab & Adam Port concert in Abu Dhabi and Nancy Ajram Riyadh Boulevard activation reinforced Anghami’s cultural leadership position. Regional conflicts have impacted live events and regional content production; however, Anghami continued to scale its cultural footprint through flagship initiatives such as “Aktar Men Ayya Waqt,” a pan-Arab collaboration uniting leading artists across the region, alongside a focused Ramadan content strategy that delivered resilient engagement and outperformed industry trends that typically see lower metrics during the period.

As the year drew to a close, OSN+ launched the “Epic Bundle”, a first-of-its-kind bundled subscription with Shahid and Disney+, bringing all three platforms together under a single plan and broadening content access for consumers.

Anghami also continued to expand its telco partnership ecosystem in 2025, maintaining integrations with 45 telco operators across the MENA region. Telco partnerships serve as a dual-purpose growth lever by facilitating frictionless subscription payments, helping Anghami maintain one of the highest paying conversion rates among music streaming services in the MENA region, while also providing a significant marketing channel through co-branded campaigns and data bundle offerings.

From a financial perspective, revenue increased to $99.3 million in 2025, from $78.1 million in 2024, driven by subscriber growth across Anghami Plus and OSN+ and the first full-year contribution from the OSN+ video streaming segment which was consolidated from 1 April 2024. Profitability was impacted by the fixed video content licensing fees reflecting the full 12 month impact compared to 2024.

During 2025 and early 2026, the Company strengthened its Board of Directors with the appointments of Bassil Almouallimi (SRMG), James Cooke (Warner Bros. Discovery), Moustapha Chami (KIPCO), and Eman Al Awadhi (KIPCO).

OUTLOOK

Anghami is positioned to capitalize on continued growth in digital entertainment demand across the MENA region. The Company’s platform-led partnerships enhance distribution, content access and audience reach, further differentiating Anghami within an increasingly competitive streaming market.

Strategic collaborations with leading regional and global platforms, including Shahid, Disney+, talabat, and the expanded Warner Bros. Discovery relationship, are expected to remain key growth drivers. The content lineup is set to remain exceptional throughout the year, featuring highly anticipated global releases and returning flagship series. This includes A Knight of the Seven Kingdoms, Euphoria Season 3, Season 2 of The Pitt, which has emerged as one of the most widely watched series globally, and Season 4 of FROM. This is further reinforced by upcoming seasons of The House of the Dragon and a robust pipeline of award-winning and globally successful films, including major 2025 theatrical releases such as Sinners, Superman, and other leading box office titles.

Building on this early traction, Anghami aims to scale embedded and bundled distribution models to support more efficient user acquisition and deeper engagement across its core markets.

Management remains focused on balancing growth with operational discipline, as continued investment in platform capabilities, reshaping content acquisition costs, advertising optimization and partner integrations support scale benefits over time. As these initiatives mature, Anghami aims to drive improved monetization and stronger operating leverage across its digital entertainment platform that will lead to material unit economics improvements in 2026.

Anghami’s annual report on Form 20-F (the “Form 20-F”) for the year ended December 31, 2025 was filed today with the U.S. Securities and Exchange Commission. The Form 20-F can be accessed by visiting either the SEC’s website at www.sec.gov or the Company’s website at https://www.anghami.com/investors.

About Anghami Inc. (NASDAQ: ANGH)

Anghami is the leading multi-media technology streaming platform in the Middle East and North Africa (“MENA”) region, offering a comprehensive ecosystem of exclusive premium video, music, podcasts, live entertainment, audio services, and more.

With a user base exceeding 130 million registered users and over 3.5 million paid subscribers, Anghami has partnered with 45 telcos across MENA, facilitating customer acquisition and subscription payment, in addition to establishing relationships with major film studios, entertainment giants, and music labels, both regional and international. Headquartered in Abu Dhabi, UAE, Anghami operates in 16 countries across MENA, with offices in Beirut, Dubai, Cairo, and Riyadh.

To learn more about Anghami, please visit: https://anghami.com. Any questions for the Investors Relations Department can be emailed to IR@anghami.com or anghami@apcoworldwide.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Anghami’s actual results may differ from its expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “start,” “project,” “budget,” “forecast,” “preliminary,” “anticipate,” “position,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “continue,” “predicts,” “potential,” “transform,” “commitment” and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements. These statements include those related to the effect of the OSN+ integration, Warner Bros. Discovery investment in OSN Streaming, other new partnerships and collaborations, and future growth. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside Anghami’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: the outcome of any legal proceedings that may be instituted against Anghami; wars, conflicts and political instability; foreign exchange fluctuations, changes in applicable laws or regulations; and the possibility that Anghami may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties identified in Anghami’s fiscal 2025 annual report on Form 20-F filed with the SEC on April 30, 2026, including those under “Risk Factors” therein, and in other documents filed or to be filed with the SEC by Anghami and available at the SEC’s website at www.sec.gov. Anghami cautions that the foregoing list of factors is not exclusive. Anghami cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Except as required by law, Anghami does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based.

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SOURCE Anghami

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