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Equinix points to channel as key growth driver

Interconnection and data centre services company Equinix says the channel has been a big help in posting another set of positive quarterly results. The EMEA region also saw the biggest jump in sales. Overall, customer deployments across multiple metro data centre areas increased to 85% of total recurring revenue.

Equinix said the second quarter saw an 18% jump in year-on-year sales to $1.262bn. Interconnection revenue continued to outpace colocation revenue, reflecting the movement towards the rapid adoption of hybrid and multicloud strategies as a preferred IT deployment model, the firm said.

It added that it had continued the growth of its indirect selling initiatives, with channel sales increasing to more than 20% of bookings for the quarter. This accounted for half of the new logos the company acquired in the period, “driven by solid performance” across all regions and channels, including alliance, reseller and referral partners.

Operating income was $215m, and adjusted EBITDA was $604m (up 18.6%). Net income was $68m. At the end of the second quarter Equinix had cash, cash equivalents and short-term investments of $984.5m. Its total debt outstanding was $11.5bn as of 30 June.

The company is still searching for a new CEO after the previous incumbent Steve Smith left in January, later to join private equity firm GI Partners as managing director. Peter Van Camp, executive chairman and interim CEO and president of Equinix, said: "We delivered another strong quarter with record bookings across all three regions and virtually all key operating metrics showing solid momentum.

“Our 200 data centres, and the customer ecosystems within them, remain at the heart of our strategy, as evidenced by strong cross-regional sales and healthy interconnection activity in Q2.”