REDWOOD CITY, Calif., July 30, 2014 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), a global interconnection and data center company, today reported quarterly results for the quarter ended June 30, 2014. The Company 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.

Revenues were $605.2 million for the second quarter, a 4% increase over the previous quarter and a 14% increase over the same quarter last year. Recurring revenues, consisting primarily of colocation, interconnection and managed services, were $574.2 million for the second quarter, a 4% increase over the previous quarter and a 14% increase over the same quarter last year. Non-recurring revenues were $31.0 million for the quarter. Due to a lengthening of the estimated period that non-recurring installation fees are recognized, non-recurring revenues were reduced by $1.8 million for the second quarter and a total estimated revenue reduction of approximately $5.3 million for the full year 2014, a change in accounting estimate that the Company applied on a prospective basis beginning in the second quarter. MRR churn for the second quarter was 2.7%, an increase from the previous quarter but lower than prior guidance.

"We are very pleased to have delivered both revenue and adjusted EBITDA above the top end of our guidance ranges with record bookings," said Steve Smith, president and CEO of Equinix. "This quarter we passed a major milestone of having over 1,000 networks available around the globe. Our network density - combined with over 1,200 cloud and IT services providers - is at the heart of value creation for Platform Equinix creating business ecosystems in the cloud, financial, and content and digital media markets."

Cost of revenues were $292.9 million for the second quarter, a 2% increase over the previous quarter and a 10% increase from the same quarter last year. Cost of revenues, excluding depreciation, amortization, accretion and stock-based compensation of $102.0 million for the quarter, which we refer to as cash cost of revenues, were $190.9 million for the quarter, a 4% increase over the previous quarter and a 13% increase over the same quarter last year. Gross margins for the quarter were 52%, up from 50% for the previous quarter and 49% for the same quarter last year. Cash gross margins, defined as gross profit before depreciation, amortization, accretion and stock-based compensation, divided by revenues, for the quarter were 68%, unchanged from the previous quarter and the same quarter last year.

Selling, general and administrative expenses were $186.9 million for the second quarter, a 9% increase over the previous quarter and a 26% increase over the same quarter last year. Selling, general and administrative expenses, excluding depreciation, amortization, accretion and stock-based compensation of $47.9 million for the quarter, which we refer to as cash selling, general and administrative expenses, were $139.0 million for the quarter, a 3% increase over the previous quarter and a 24% increase over the same quarter last year.

Interest expense was $66.9 million for the second quarter, a 3% decrease from the previous quarter and a 10% increase over the same quarter last year, primarily attributed to additional financings such as various capital lease and other financing obligations to support the Company's expansion projects. The Company recorded an income tax benefit of $2.0 million for the second quarter as compared to an income tax benefit of $9.7 million in the same quarter last year.

During the second quarter, the Company entered into agreements with certain note holders to exchange $215.8 million of the principal amount of its 4.75% convertible subordinated notes for approximately 2.4 million shares of the Company's common stock and cash payments of approximately $51.7 million. The Company also entered into an agreement with a note holder to exchange $217.2 million of the principal amount of its 3.00% convertible subordinated notes for approximately 1.9 million shares of the Company's common stock and a cash payment of approximately $5.4 million. As a result, the Company recognized a loss on debt extinguishment of $51.2 million in the second quarter upon the exchange of the convertible subordinated notes.

Net income attributable to Equinix for the second quarter was $11.3 million. This represents a basic and diluted net income per share attributable to Equinix of $0.22 based on a weighted average share count of 51.3 million and 51.7 million, respectively, for the second quarter of 2014. This includes a charge to the income statement of $51.2 million for the loss on debt extinguishment related to the exchanges of the convertible subordinated notes.

Income from operations was $124.7 million for the second quarter, a 3% increase from the previous quarter and an 8% increase over the same quarter last year. Adjusted EBITDA, defined as income or loss from operations before depreciation, amortization, accretion, stock-based compensation, restructuring charges, impairment charges and acquisition costs, for the second quarter was $275.3 million, a 6% increase over the previous quarter and an 11% increase over the same quarter last year.

Capital expenditures, defined as gross capital expenditures less the net change in accrued property, plant and equipment in the second quarter, were $159.8 million.

The Company has repurchased approximately 1.8 million shares of its common stock under the $500 million share repurchase program authorized in December 2013, at an average price of $191.95 per share, for total consideration of $346.8 million from December 5, 2013 through July 25, 2014.

The Company generated cash from operating activities of $99.0 million for the second quarter as compared to $171.7 million in the previous quarter and $147.2 million for the same quarter last year. The decrease in cash from operating activities was primarily attributed to tax payments related to both REIT and non-REIT related obligations and cash interest payments during the second quarter. Cash provided by investing activities was $91.5 million in the second quarter as compared to cash provided by investing activities of $98.9 million in the previous quarter and cash provided by investing activities of $537.5 million in the same quarter last year, primarily attributed to $836.4 million of restricted cash released for the redemption of the $750.0 million 8.125% senior notes. Cash used in financing activities was $278.9 million for the second quarter, primarily attributed to repurchases of common stock under the share repurchase program and the exchanges of the 3.00% convertible subordinated notes and 4.75% convertible subordinated notes, as compared to cash used in financing activities of $37.3 million in the previous quarter and cash used in financing activities of $850.0 million in the same quarter last year, primarily attributed to the redemption of the $750.0 million 8.125% senior notes.

As of June 30, 2014, the Company's cash, cash equivalents and investments were $704.3 million, as compared to $1,030.1 million as of December 31, 2013.

In July 2014, the Company purchased Riverwood Capital L.P.'s interest in ALOG Data Centers do Brasil S.A. ("ALOG"), along with the approximate 10% of ALOG owned by ALOG management, for cash consideration of approximately $225.0 million. As a result, the Company owns 100% of the outstanding shares of ALOG. The Company has fully consolidated ALOG's results of operations in the Company's consolidated financial statements from the time the Company acquired a controlling equity interest in ALOG in April 2011.

Business Outlook

For the third quarter of 2014, the Company expects revenues to range between $614.0 and $618.0 million. Cash gross margins are expected to approximate 68% to 69%. Cash selling, general and administrative expenses are expected to approximate $140.0 million. Adjusted EBITDA is expected to range between $278.0 and $282.0 million, which includes $8.0 million in professional fees and costs primarily related to the REIT conversion. Capital expenditures are expected to range between $175.0 and $185.0 million, comprised of approximately $25.0 million of recurring capital expenditures and $150.0 to $160.0 million of expansion capital expenditures.

For the full year of 2014, total revenues are now expected to range between $2,425.0 and $2,435.0 million, or an as-reported 13% year over year growth rate, which includes a positive foreign currency benefit of approximately $6.5 million compared to the rates used from the Company's prior guidance. Total year cash gross margins are expected to approximate 68% and 69%. Cash selling, general and administrative expenses are expected to approximate $550.0 million. Adjusted EBITDA for the year is expected to range between $1,105.0 and $1,115.0 million, which includes a positive foreign currency benefit of approximately $3.0 million compared to the rates used from our prior guidance, and includes $35.0 million in professional fees and costs primarily related to the REIT conversion. Capital expenditures for 2014 are expected to range between $600.0 and $650.0 million, comprised of approximately $115.0 million of recurring capital expenditures and $485.0 to $535.0 million of expansion capital expenditures.

The U.S. dollar exchange rates used for 2014 guidance, taking into consideration the impact of our foreign currency hedges, have been updated to $1.36 to the Euro, $1.67 to the Pound, S$1.24 to the U.S. dollar and R$2.22 to the U.S. dollar. The 2014 global revenue breakdown by currency for the Euro, Pound, Singapore dollar and Brazilian Real is 15%, 9%, 7% and 4%, respectively.

Company Metrics and Q2 Results Presentation

The Company will discuss its results and guidance on its quarterly conference call on Wednesday, July 30, 2014, at 5:30 p.m. ET (2:30 p.m. PT). A simultaneous live webcast of the call will be available over the internet at Equinix.com under the Investor Relations heading. To hear the conference call live, please dial 1-210-234-8004 (domestic and international) and reference the passcode (EQIX). A presentation to accompany the call, as well as the Company's Non-Financial Metrics tracking sheet, will also be available on the website.

A replay of the call will be available beginning on Wednesday, July 30, 2014, at 7:30 p.m. ET through Thursday, October 30, 2014, by dialing 1-203-369-3450 and referencing the passcode (2014). In addition, the webcast will be available on the Investors section of the Company's website over the same time period. No password is required for the webcast.

About Equinix

Equinix, Inc. (Nasdaq: EQIX), connects more than 4,500 companies directly to their customers and partners inside the world's most networked data centers. Today, businesses leverage the Equinix interconnection platform in 32 strategic markets across the Americas, EMEA and Asia-Pacific. www.equinix.com.

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, 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, adjusted free cash flow, discretionary free cash flow and adjusted discretionary free cash flow to evaluate its operations. In presenting these non-GAAP financial measures, Equinix excludes certain items that it believes are not good indicators of the Company'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 and acquisition costs. Legislative and regulatory requirements encourage use of and emphasis on GAAP financial metrics and require companies to explain why non-GAAP financial metrics are relevant to management and investors. Equinix excludes these items in order for Equinix's lenders, investors, and industry analysts who review and report on the Company, to better evaluate the Company'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 our IBX centers and do not reflect our current or future cash spending levels to support our business. Our IBX centers are long-lived assets, and have an economic life greater than 10 years. The construction costs of our IBX centers do not recur and future capital expenditures remain minor relative to our initial investment. This is a trend we expect to continue. In addition, depreciation is also based on the estimated useful lives of our IBX centers. These estimates could vary from actual performance of the asset, are based on historic costs incurred to build out our IBX 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 excludes amortization expense related to certain intangible assets, as it represents a cost that may not recur and is not a good indicator of the Company's current or future operating performance. 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 believes are not meaningful in evaluating the Company's current operations. Equinix excludes stock-based compensation expense as it primarily represents expense attributed to equity awards that have no current or future cash obligations. As such, we, and many investors and analysts, exclude this stock-based compensation expense when assessing the cash generating performance of our operations. Equinix excludes restructuring charges from its non-GAAP financial measures. The restructuring charges relate to the Company's decision to exit leases for excess space adjacent to several of our IBX centers, which we did not intend to build out, or our decision to reverse such restructuring charges or severance charges related to the Switch and Data acquisition. Equinix also excludes impairment charges 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 long-lived assets are not recoverable. Finally, Equinix excludes acquisition costs from its non-GAAP financial measures. The acquisition costs relate to costs the Company incurs in connection with business combinations. Management believes such items as restructuring charges, impairment charges and acquisition costs are non-core transactions; however, these types of costs will or may occur in future periods.

Our management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. However, we have presented such non-GAAP financial measures to provide investors with an additional tool to evaluate our operating results in a manner that focuses on what management believes to be our 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, however, 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 that of other companies. In addition, whenever Equinix uses such non-GAAP financial measures, it provides a reconciliation of non-GAAP financial measures to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure.

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. 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, the challenges of acquiring, operating and constructing IBX centers and developing, deploying and delivering Equinix services; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenue 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; and other risks described from time to time in Equinix's filings with the Securities and Exchange Commission. In particular, see Equinix's recent 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 and IBX are registered trademarks of Equinix, Inc. International Business Exchange is a trademark of Equinix, Inc.





                                                                                                                         EQUINIX, INC.

                                                                                                        CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                                                                                             (in thousands, except per share data)

                                                                                                                          (unaudited)



                                                                     Three Months Ended                                          Six Months Ended
                                                                     ------------------                                          ----------------

                                                                      June 30,                                March 31,                                 June 30,             June 30,              June 30,

                                                                                    2014                                     2014                                       2013                  2014                   2013
                                                                                    ----                                     ----                                       ----                  ----                   ----


    Recurring revenues                                                        $574,158                                 $549,703                                   $501,814            $1,123,861               $996,336

    Non-recurring revenues                                                      31,003                                   30,350                                     27,057                61,353                 48,669
                                                                                ------                                   ------                                     ------                ------                 ------

                             Revenues                                            605,161                                  580,053                                    528,871             1,185,214              1,045,005


    Cost of revenues                                                           292,859                                  287,525                                    267,109               580,384                525,700
                                                                               -------                                  -------                                    -------               -------                -------

                             Gross profit                                        312,302                                  292,528                                    261,762               604,830                519,305
                                                                                 -------                                  -------                                    -------               -------                -------


    Operating expenses:

                              Sales and
                              marketing                                           75,254                                   67,428                                     59,478               142,682                117,754

                              General and
                              administrative                                     111,675                                  103,303                                     88,632               214,978                179,450

                              Restructuring
                              charges                                                  -                                       -                                   (4,837)                    -               (4,837)

                              Acquisition
                              costs                                                  676                                      185                                      2,526                   861                  6,188


                             Total operating expenses                            187,605                                  170,916                                    145,799               358,521                298,555
                                                                                 -------                                  -------                                    -------               -------                -------


    Income from operations                                                     124,697                                  121,612                                    115,963               246,309                220,750
                                                                               -------                                  -------                                    -------               -------                -------


    Interest and other income (expense):

                             Interest income                                         744                                    1,434                                        917                 2,178                  1,664

                              Interest
                              expense                                           (66,874)                                (68,820)                                  (61,001)            (135,694)             (121,332)

                              Loss on debt
                              extinguishment                                    (51,183)                                       -                                  (93,602)             (51,183)              (93,602)

                              Other income
                              (expense)                                              681                                      678                                      2,768                 1,359                  2,309

                              Total interest and other,
                              net                                              (116,632)                                (66,708)                                 (150,918)            (183,340)             (210,961)
                                                                                --------                                  -------                                   --------              --------               --------


    Income (loss) before income taxes                                            8,065                                   54,904                                   (34,955)               62,969                  9,789


                              Income tax
                              benefit
                              (expense)                                            2,014                                 (13,567)                                     9,668              (11,553)               (1,792)
                             -----------


    Net income (loss)                                                           10,079                                   41,337                                   (25,287)               51,416                  7,997


    Net (income) loss attributable to
     redeemable non-controlling
     interests                                                                   1,249                                       50                                      (529)                1,299                  (970)


    Net income (loss) attributable to
     Equinix                                                                   $11,328                                  $41,387                                  $(25,816)              $52,715                 $7,027
                                                                               =======                                  =======                                   ========               =======                 ======


    Net income (loss) per share attributable to Equinix:


                              Basic net
                              income (loss)
                              per share (1)                                        $0.22                                    $0.83                                    $(0.52)                $1.04                  $0.14
                             ==============


                              Diluted net
                              income (loss)
                              per share (1)                                        $0.22                                    $0.81                                    $(0.52)                $1.04                  $0.14
                             ==============


                             Shares used in
                              computing
                              basic net
                              income (loss)
                              per share                                           51,332                                   49,598                                     49,379                50,470                 49,205
                             ===========


                             Shares used in
                              computing
                              diluted net
                              income (loss)
                              per share                                           51,652                                   53,386                                     49,379                50,884                 49,976
                             ===========



                      (1)    The net income (loss) attributable to Equinix used in the computation of basic and
                              diluted net income (loss) per share attributed to Equinix is presented below:


                              Net income
                              (loss)                                             $10,079                                  $41,337                                  $(25,287)              $51,416                 $7,997

                             Net (income)
                              loss
                              attributable
                              to non-
                              controlling
                              interests                                            1,249                                       50                                      (529)                1,299                  (970)
                             -----------

                              Net income (loss)
                              attributable to Equinix,
                              basic                                               11,328                                   41,387                                   (25,816)               52,715                  7,027

                              Interest on
                              convertible
                              debt                                                     -                                   1,984                                          -                    -                     -


                              Net income (loss)
                              attributable to Equinix,
                              diluted                                            $11,328                                  $43,371                                  $(25,816)              $52,715                 $7,027
                                                                                 =======                                  =======                                   ========               =======                 ======



                                                                              EQUINIX, INC.

                                                     CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

                                                                              (in thousands)

                                                                               (unaudited)


                                                                                                    Three Months Ended                         Six Months Ended
                                                                                                    ------------------                         ----------------

                                                                June 30,                              March 31,                June 30,               June 30,             June 30,

                                                                                             2014                       2014                   2013                  2014                      2013
                                                                                             ----                       ----                   ----                  ----                      ----


    Net income (loss)                                                          $10,079                   $41,337                 $(25,287)               $51,416                 $7,997
                                                                               -------                   -------                  --------                -------                 ------


    Other comprehensive income (loss), net of tax:

                                                   Foreign currency translation gain
                                                    (loss)                                   23,081                     14,970               (30,666)               38,051                 (103,220)

                                                   Unrealized gain (loss) on available
                                                    for sale securities                        (73)                       839                  (458)                  766                     (360)

                                                   Unrealized gain on cash flow hedges           54                        200                      -                  254                         -

     Other comprehensive income
      (loss), net of tax:                                                                  23,062                     16,009               (31,124)               39,071                 (103,580)
                                                                                           ------                     ------                -------                ------                  --------


     Comprehensive income (loss),
      net of tax                                                                           33,141                     57,346               (56,411)               90,487                  (95,583)
                                                                                           ------                     ------                -------                ------                   -------


                                                   Net (income) loss attributable to
                                                    redeemable non-controlling
                                                    interests                                 1,249                         50                  (529)                1,299                     (970)

                                                   Other comprehensive (income) loss
                                                    attributable to redeemable non-
                                                    controlling interests                     (750)                   (2,067)                 5,309               (2,817)                    4,540
                                                                                            -----


     Comprehensive income (loss)
      attributable to Equinix, net
      of tax                                                                   $33,640                   $55,329                 $(51,631)               $88,969              $(92,013)
                                                                               =======                   =======                  ========                =======               ========



                                                                  EQUINIX, INC.

                                                      CONDENSED CONSOLIDATED BALANCE SHEETS

                                                                  (in thousands)

                                                                   (unaudited)


                          Assets                                      June 30,               December 31,

                                                                                        2014                      2013
                                                                                        ----                      ----


    Cash and cash equivalents                                                     $408,334                  $261,894

    Investments                                                                    296,015                   768,198

    Accounts receivable, net                                                       237,831                   184,840

    Property, plant and equipment, net                                           4,922,380                 4,591,650

    Goodwill                                                                     1,058,363                 1,042,153

    Intangible assets, net                                                         170,130                   184,182

    Other assets                                                                   508,764                   459,442
                                                                                   -------                   -------

                               Total assets                                       $7,601,817                $7,492,359
                               ============


                            Liabilities and Stockholders' Equity


    Accounts payable and accrued
     expenses                                                                     $224,109                  $263,223

    Accrued property and equipment                                                  82,014                    64,601

    Capital lease and other financing
     obligations                                                                 1,134,607                   931,246

    Mortgage and loans payable                                                     230,654                   253,208

    Senior notes                                                                 2,250,000                 2,250,000

    Convertible debt                                                               320,914                   724,202

    Other liabilities                                                              449,304                   422,913
                                                                                   -------                   -------

                                Total
                                liabilities                                        4,691,602                 4,909,393
                               ------------


    Redeemable non-controlling
     interests                                                                     227,156                   123,902
                                                                                   -------                   -------


    Common stock                                                                        53                        50

    Additional paid-in capital                                                   2,797,186                 2,693,887

    Treasury stock                                                                (52,938)                 (84,663)

    Accumulated other comprehensive
     loss                                                                         (77,514)                (113,767)

    Retained earnings (accumulated
     deficit)                                                                       16,272                  (36,443)
                                                                                    ------                   -------

                                Total
                                stockholders'
                                equity                                             2,683,059                 2,459,064
                               -------------


                                Total
                                  liabilities,
                                  redeemable
                                  non-
                                  controlling
                                  interests and
                                  stockholders'
                                  equity                                          $7,601,817                $7,492,359
                               =============



    Ending headcount by geographic region is as follows:


                                Americas
                                headcount                                              2,059                     1,984

                               EMEA headcount                                            945                       899

                                Asia-Pacific
                                headcount                                                655                       617

                               Total headcount                                         3,659                     3,500
                                                                                       =====                     =====



                           EQUINIX, INC.

                    SUMMARY OF DEBT OUTSTANDING

                           (in thousands)

                            (unaudited)


                          June 30,                         December 31,

                                                    2014                      2013
                                                    ----                      ----


     Capital
     lease
     and
     other
     financing
     obligations                 $1,134,607                     $931,246
                                 ----------                     --------


     U.S.
     term
     loan                                        120,000                   140,000

     ALOG
     financings                                   65,972                    67,882

     Mortgage
     payable                                      42,634                    43,497

     Other
     loans
     payable                                       2,048                     1,829

                 Total mortgage and loans
                 payable                           230,654                   253,208
                                                 -------


     Senior
     notes                                     2,250,000                 2,250,000
                                               ---------                 ---------


     Convertible
     debt,
     net
     of
     debt
     discount                                    320,914                   724,202

     Plus:
     debt
     discount                                     15,762                    45,508

                 Total convertible debt
                 principal                         336,676                   769,710
                                                 -------


     Total
     debt
     outstanding                 $3,951,937                   $4,204,164
                                 ==========                   ==========



                                                                                                                                     EQUINIX, INC.

                                                                                                                    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                                                                                                     (in thousands)

                                                                                                                                      (unaudited)


                                                                                                   Three Months Ended                                             Six Months Ended
                                                                                                   ------------------                                             ----------------

                                                                                               June 30,                                   March 31,                                   June 30,                            June 30,                            June 30,

                                                                                                                 2014                                         2014                                       2013                                2014                               2013
                                                                                                                 ----                                         ----                                       ----                                ----                               ----


    Cash flows from operating activities:

                             Net income (loss)                              $10,079                                      $41,337                                           $(25,287)                            $51,416                              $7,997

                              Adjustments to
                              reconcile net income
                              (loss) to net cash

                              provided by operating
                              activities:

                              Depreciation,
                              amortization and
                              accretion                                     116,074                                      113,610                                             110,189                             229,684                             218,792

                              Stock-based
                              compensation                                   33,830                                       24,981                                              24,194                              58,811                              48,030

                              Debt issuance
                              costs and debt
                              discount                                        4,717                                        6,409                                               5,884                              11,126                              11,637

                              Loss on debt
                              extinguishment                                 51,183                                            -                                             93,602                              51,183                              93,602

                              Restructuring
                              charges                                             -                                           -                                            (4,837)                                  -                            (4,837)

                              Excess tax
                              benefits from
                              employee equity
                              awards                                        (1,614)                                    (10,018)                                            (3,431)                           (11,632)                           (22,421)

                              Other reconciling
                              items                                           7,455                                        5,292                                               3,949                              12,747                               7,034

                              Changes in
                              operating assets
                              and liabilities:

                                          Accounts
                                          receivable                         (24,510)                                    (28,995)                                           (19,098)                           (53,505)                           (43,761)

                                          Income taxes,
                                          net                                (76,764)                                    (15,749)                                           (73,209)                           (92,513)                           (75,556)

                                          Accounts
                                          payable and
                                          accrued
                                          expenses                           (16,498)                                       8,830                                              28,392                             (7,668)                                396

                                          Other assets
                                          and
                                          liabilities                         (4,988)                                      26,021                                               6,811                              21,033                             (9,573)

                                                           Net cash provided by
                                                           operating activities                                98,964                                      171,718                                    147,159                             270,682                            231,340
                                                                                                               ------                                      -------                                    -------                             -------                            -------

    Cash flows from investing activities:

                              Purchases, sales and
                              maturities of
                              investments, net                              250,737                                      221,654                                           (175,593)                            472,391                           (408,558)

                              Purchase of Asia Tone,
                              less cash acquired                                  -                                           -                                                  -                                  -                              (107)

                              Purchase of real
                              estate                                              -                                    (16,791)                                            (2,960)                           (16,791)                            (2,960)

                              Purchases of other
                              property, plant and
                              equipment                                   (159,816)                                   (105,907)                                           (122,863)                          (265,723)                           (198,530)

                              Other investing
                              activities                                        582                                         (71)                                            838,963                                 511                               5,162

                                                           Net cash provided by (used
                                                           in) investing activities                            91,503                                       98,885                                    537,547                             190,388                          (604,993)
                                                                                                               ------                                       ------                                    -------                             -------                           --------

    Cash flows from financing activities:

                              Purchases of treasury
                              stock                                       (208,263)                                    (47,120)                                                  -                          (255,383)                                   -

                              Proceeds from employee
                              equity awards                                   1,434                                       14,387                                               1,512                              15,821                              15,880

                              Proceeds from senior
                              notes                                               -                                           -                                                  -                                  -                          1,500,000

                              Repayment of capital
                              lease and other
                              financing obligations                         (5,033)                                     (4,250)                                            (4,157)                            (9,283)                            (7,673)

                              Repayment of mortgage
                              and loans payable                            (16,777)                                    (10,317)                                           (18,139)                           (27,094)                           (32,191)

                              Repayment of senior
                              notes                                               -                                           -                                          (750,000)                                  -                          (750,000)

                              Repayment of
                              convertible debt                             (29,479)                                           -                                                  -                           (29,479)                                  -

                              Debt extinguishment
                              costs                                        (22,552)                                           -                                           (80,925)                           (22,552)                           (80,925)

                              Excess tax benefits
                              from employee equity
                              awards                                          1,614                                       10,018                                               3,431                              11,632                              22,421

                              Other financing
                              activities                                        128                                            -                                            (1,756)                                128                            (20,786)

                                                           Net cash provided by (used
                                                           in) financing activities                         (278,928)                                    (37,282)                                 (850,034)                          (316,210)                           646,726
                                                                                                             --------                                      -------                                   --------                            --------                            -------

    Effect of foreign currency exchange rates on cash
     and cash equivalents                                                                                   1,621                                         (41)                                   (2,195)                              1,580                            (7,790)
                                                                                                            -----                                          ---                                     ------                               -----                             ------

    Net increase (decrease) in cash and cash equivalents                                                 (86,840)                                     233,280                                  (167,523)                            146,440                            265,283

    Cash and cash equivalents at beginning of period                                                      495,174                                      261,894                                    685,019                             261,894                            252,213

    Cash and cash equivalents at end of period                                                           $408,334                                     $495,174                                   $517,496                            $408,334                           $517,496
                                                                                                         ========                                     ========                                   ========                            ========                           ========


                              Supplemental cash flow
                              information:

                              Cash paid for
                              taxes                                         $75,371                                      $29,913                                             $62,818                            $105,284                             $76,854
                                                                            =======                                      =======                                             =======                            ========                             =======

                              Cash paid for
                              interest                                      $79,517                                      $42,385                                             $29,440                            $121,902                             $96,280
                                                                            =======                                      =======                                             =======                            ========                             =======


    Free cash flow (1)                                                                                  $(60,270)                                     $48,949                                   $860,299                           $(11,321)                           $34,905
                                                                                                         ========                                      =======                                   ========                            ========                            =======


    Adjusted free cash flow (2)                                                                           $12,119                                     $103,375                                   $923,876                            $115,494                           $123,370
                                                                                                          =======                                     ========                                   ========                            ========                           ========


    Ongoing capital expenditures (3)                                                                      $63,581                                      $44,914                                    $40,210                            $108,495                            $74,207
                                                                                                          =======                                      =======                                    =======                            ========                            =======


    Discretionary free cash flow (4)                                                                      $35,383                                     $126,804                                   $106,949                            $162,187                           $157,133
                                                                                                          =======                                     ========                                   ========                            ========                           ========


    Adjusted discretionary free cash flow (5)                                                            $107,772                                     $164,439                                   $167,566                            $272,211                           $242,531
                                                                                                         ========                                     ========                                   ========                            ========                           ========



                      (1)    We define 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                            $98,964                                     $171,718                                            $147,159                            $270,682                            $231,340

                              Net cash provided by
                              (used in) investing
                              activities as
                              presented above                                91,503                                       98,885                                             537,547                             190,388                           (604,993)

                              Purchases, sales and
                              maturities of
                              investments, net                            (250,737)                                   (221,654)                                             175,593                           (472,391)                             408,558

                              Free cash flow
                              (negative free
                              cash flow)                                  $(60,270)                                     $48,949                                            $860,299                           $(11,321)                            $34,905
                                                                           ========                                      =======                                            ========                            ========                             =======


                      (2)    We define adjusted free cash flow as free cash flow (as defined above) excluding any
                              purchases of real estate, acquisitions, any excess tax benefits from employee equity awards,
                              cash paid for taxes associated with reclassifying our assets for tax purposes triggered by
                              our planned conversion into a real estate investment trust ("REIT") and costs related to the
                              planned REIT conversion, as presented below:


                              Free cash flow (as
                              defined above)                              $(60,270)                                     $48,949                                            $860,299                           $(11,321)                            $34,905

                              Less purchase of Asia
                              Tone, less cash
                              acquired                                            -                                           -                                                  -                                  -                                107

                              Less purchase of real
                              estate                                              -                                      16,791                                               2,960                              16,791                               2,960

                              Less excess tax
                              benefits from
                              employee equity
                              awards                                          1,614                                       10,018                                               3,431                              11,632                              22,421

                              Less cash paid for
                              taxes resulting from
                              the planned REIT
                              conversion                                     61,873                                       17,827                                              53,570                              79,700                              57,304

                              Less costs related to
                              the planned REIT
                              conversion                                      8,902                                        9,790                                               3,616                              18,692                               5,673

                              Adjusted free cash
                              flow                                          $12,119                                     $103,375                                            $923,876                            $115,494                            $123,370
                                                                            =======                                     ========                                            ========                            ========                            ========


                              We categorize our cash paid for taxes into cash paid for taxes resulting from the planned
                              REIT conversion (as defined above) and other cash taxes paid.


                              Cash paid for taxes
                              resulting from the
                              planned REIT
                              conversion                                    $61,873                                      $17,827                                             $53,570                             $79,700                             $57,304

                             Other cash taxes paid                           13,498                                       12,086                                               9,248                              25,584                              19,550

                              Total cash paid
                              for taxes                                     $75,371                                      $29,913                                             $62,818                            $105,284                             $76,854
                                                                            =======                                      =======                                             =======                            ========                             =======


                      (3)    We refer to our purchases of other property, plant and equipment as our capital expenditures
                              (or capex).  We categorize our capital expenditures into expansion and ongoing capex.
                              Expansion capex is capex spent to build out our new data centers and data center expansions.
                              Our ongoing capex represents all of our other capex spending.


                              Ongoing capital
                              expenditures                                  $63,581                                      $44,914                                             $40,210                            $108,495                             $74,207

                              Expansion capital
                              expenditures                                   96,235                                       60,993                                              82,653                             157,228                             124,323

                              Total capital
                              expenditures                                 $159,816                                     $105,907                                            $122,863                            $265,723                            $198,530
                                                                           ========                                     ========                                            ========                            ========                            ========


                      (4)    We define discretionary free cash flow as net cash provided by operating activities less
                              ongoing capital expenditures (as described above), as presented below:


                              Net cash provided by
                              operating activities,
                              as presented above                            $98,964                                     $171,718                                            $147,159                            $270,682                            $231,340

                              Less ongoing capital
                              expenditures                                 (63,581)                                    (44,914)                                           (40,210)                          (108,495)                            (74,207)

                              Discretionary free
                              cash flow                                     $35,383                                     $126,804                                            $106,949                            $162,187                            $157,133
                                                                            =======                                     ========                                            ========                            ========                            ========


                      (5)    We define adjusted discretionary free cash flow as discretionary free cash flow (as defined
                              above), excluding any excess tax benefits from employee equity awards, cash paid for taxes
                              associated with reclassifying our assets for tax purposes triggered by our planned REIT
                              conversion and costs related to the planned REIT conversion, as presented below:


                              Discretionary free
                              cash flow (as defined
                              above)                                        $35,383                                     $126,804                                            $106,949                            $162,187                            $157,133

                              Excess tax benefits
                              from employee equity
                              awards                                          1,614                                       10,018                                               3,431                              11,632                              22,421

                              Cash paid for taxes
                              resulting from the
                              planned REIT
                              conversion                                     61,873                                       17,827                                              53,570                              79,700                              57,304

                              Costs related to the
                              planned REIT
                              conversion                                      8,902                                        9,790                                               3,616                              18,692                               5,673

                              Adjusted
                              discretionary
                              free cash flow                               $107,772                                     $164,439                                            $167,566                            $272,211                            $242,531
                                                                           ========                                     ========                                            ========                            ========                            ========



                                                                                                        EQUINIX, INC.

                                                                           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - NON-GAAP PRESENTATION
                                                                           -----------------------------------------------------------------------

                                                                                                       (in thousands)

                                                                                                         (unaudited)


                                                                                                                                              Three Months Ended                                   Six Months Ended
                                                                                                                                              ------------------                                   ----------------

                                                                                                            June 30,                            March 31,                   June 30,                    June 30,                     June 30,

                                                                                                                                       2014                         2014                        2013                          2014                       2013
                                                                                                                                       ----                         ----                        ----                          ----                       ----


    Recurring revenues                                                                                                           $574,158                     $549,703                    $501,814                    $1,123,861                   $996,336

    Non-recurring revenues                                                                                                         31,003                       30,350                      27,057                        61,353                     48,669

                                    Revenues (1)                                                                       605,161                      580,053                     528,871                    1,185,214                     1,045,005



    Cash cost of revenues (2)                                                                                                     190,901                      184,248                     168,421                       375,149                    330,431
                                                                                                                                  -------                      -------                     -------                       -------                    -------

                                                                                                Cash gross profit (3)               414,260                      395,805                     360,450                       810,065                    714,574
                                                                                                                                    -------                      -------                     -------                       -------                    -------


    Cash operating expenses (4):

                                     Cash sales and marketing
                                     expenses (5)                                        58,785                                         55,799                       46,430                     114,584                        92,710

                                     Cash general and
                                     administrative expenses
                                     (6)                                                 80,198                                         79,618                       65,985                     159,816                       132,941

                                                                                                 Total cash operating
                                                                                                   expenses (7)                       138,983                      135,417                     112,415                       274,400                    225,651
                                                                                                                                    -------                      -------                     -------                       -------                    -------


    Adjusted EBITDA (8)                                           $275,277                                             $260,388                     $248,035                    $535,665                     $488,923
                                                                  ========                                             ========                     ========                    ========                     ========


    Cash gross margins (9)                                                                                                            68%                         68%                        68%                          68%                       68%
                                                                                                                                      ===                          ===                         ===                           ===                        ===


    Adjusted EBITDA margins (10)                                                                                                      45%                         45%                        47%                          45%                       47%
                                                                                                                                      ===                          ===                         ===                           ===                        ===


    Adjusted EBITDA flow-through rate (11)                                                                                            59%                       (20%)                        56%                          31%                       45%
                                                                                                                                      ===                         ====                         ===                           ===                        ===



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


                                    Americas Revenues:


                                    Colocation                                                                        $242,873                     $236,614                    $226,290                     $479,487                      $449,575

                                     Interconnection                                                                    66,451                       64,302                      59,800                      130,753                       118,006

                                    Managed infrastructure                               14,885                                         13,112                       13,567                      27,997                        26,714

                                    Rental                                                                                                943                          952                         445                         1,895                        905

                                                                            Recurring
                                                                              revenues                                 325,152                      314,980                     300,102                      640,132                       595,200

                                    Non-recurring revenues                               17,104                                         15,053                       13,366                      32,157                        24,060

                                                                           Revenues                                  342,256                      330,033                     313,468                      672,289                       619,260
                                                                                                                     -------                      -------                     -------                      -------                       -------


                                    EMEA Revenues:


                                    Colocation                                                                         127,132                      122,176                     103,916                      249,308                       204,448

                                     Interconnection                                                                    12,329                       11,366                       8,854                       23,695                        17,235

                                    Managed infrastructure                                7,434                                          6,865                        5,734                      14,299                         9,983

                                    Rental                                                                                              1,730                        1,718                         138                         3,448                        258

                                                                            Recurring
                                                                              revenues                                 148,625                      142,125                     118,642                      290,750                       231,924

                                    Non-recurring revenues                                8,537                                          9,305                        8,367                      17,842                        15,054

                                                                           Revenues                                  157,162                      151,430                     127,009                      308,592                       246,978
                                                                                                                     -------                      -------                     -------                      -------                       -------


                                    Asia-Pacific Revenues:


                                    Colocation                                                                          82,655                       75,833                      67,881                      158,488                       138,895

                                     Interconnection                                                                    12,189                       11,358                       9,699                       23,547                        19,103

                                    Managed infrastructure                                5,537                                          5,407                        5,490                      10,944                        11,214

                                                                            Recurring
                                                                              revenues                                 100,381                       92,598                      83,070                      192,979                       169,212

                                    Non-recurring revenues                                5,362                                          5,992                        5,324                      11,354                         9,555

                                                                           Revenues                                  105,743                       98,590                      88,394                      204,333                       178,767
                                                                                                                     -------                       ------                      ------                      -------                       -------


                                    Worldwide Revenues:


                                    Colocation                                                                         452,660                      434,623                     398,087                      887,283                       792,918

                                     Interconnection                                                                    90,969                       87,026                      78,353                      177,995                       154,344

                                    Managed infrastructure                               27,856                                         25,384                       24,791                      53,240                        47,911

                                    Rental                                                                                              2,673                        2,670                         583                         5,343                      1,163

                                                                            Recurring
                                                                              revenues                                 574,158                      549,703                     501,814                    1,123,861                       996,336

                                    Non-recurring revenues                               31,003                                         30,350                       27,057                      61,353                        48,669

                                                                           Revenues                                 $605,161                     $580,053                    $528,871                   $1,185,214                    $1,045,005
                                                                                                                    ========                     ========                    ========                   ==========                    ==========


                             (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                                   $292,859                                       $287,525                     $267,109                               $580,384                      $525,700

                                     Depreciation, amortization
                                     and accretion expense                             (99,730)                                     (101,407)                    (96,894)                  (201,137)                    (191,873)

                                     Stock-based compensation
                                     expense                                            (2,228)                                       (1,870)                     (1,794)                    (4,098)                      (3,396)

                                     Cash cost of
                                     revenues                                          $190,901                                       $184,248                     $168,421                    $375,149                      $330,431
                                                                                       ========                                       ========                     ========                    ========                      ========


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


                                     Americas cash cost of
                                     revenues                                           $94,684                                        $91,037                      $89,890                    $185,721                      $177,614

                                    EMEA cash cost of revenues                           58,727                                         58,116                       47,304                     116,843                        90,933

                                     Asia-Pacific cash cost of
                                     revenues                                            37,490                                         35,095                       31,227                      72,585                        61,884

                                     Cash cost of
                                     revenues                                          $190,901                                       $184,248                     $168,421                    $375,149                      $330,431
                                                                                       ========                                       ========                     ========                    ========                      ========


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


                             (4)    We define cash operating expenses as operating expenses less depreciation, amortization, stock-based
                                     compensation and acquisition costs. We also refer to cash operating expenses as cash selling, general and
                                     administrative expenses or "cash SG&A".


                             (5)    We define cash sales and marketing expenses as sales and marketing expenses less depreciation,
                                     amortization and stock-based compensation as presented below:


                                     Sales and marketing
                                     expenses                                           $75,254                                        $67,428                      $59,478                    $142,682                      $117,754

                                     Depreciation and
                                     amortization expense                               (8,526)                                       (4,629)                     (6,223)                   (13,155)                     (12,498)

                                     Stock-based compensation
                                     expense                                            (7,943)                                       (7,000)                     (6,825)                   (14,943)                     (12,546)

                                     Cash sales and
                                     marketing
                                     expenses                                           $58,785                                        $55,799                      $46,430                    $114,584                       $92,710
                                                                                        =======                                        =======                      =======                    ========                       =======


                             (6)    We define cash general and administrative expenses as general and administrative expenses less
                                     depreciation, amortization and stock-based compensation as presented below:


                                     General and administrative
                                     expenses                                          $111,675                                       $103,303                      $88,632                    $214,978                      $179,450

                                     Depreciation and
                                     amortization expense                               (7,818)                                       (7,574)                     (7,072)                   (15,392)                     (14,421)

                                     Stock-based compensation
                                     expense                                           (23,659)                                      (16,111)                    (15,575)                   (39,770)                     (32,088)

                                     Cash general and
                                     administrative
                                     expenses                                           $80,198                                        $79,618                      $65,985                    $159,816                      $132,941
                                                                                        =======                                        =======                      =======                    ========                      ========


                             (7)   Our cash operating expenses, or cash SG&A, as defined above, is presented below:


                                     Cash sales and marketing
                                     expenses                                           $58,785                                        $55,799                      $46,430                    $114,584                       $92,710

                                     Cash general and
                                     administrative expenses                             80,198                                         79,618                       65,985                     159,816                       132,941

                                    Cash SG&A                                          $138,983                                       $135,417                     $112,415                    $274,400                      $225,651
                                                                                       ========                                       ========                     ========                    ========                      ========


                                     The geographic split of our cash operating expenses,
                                     or cash SG&A, is presented below:


                                    Americas cash SG&A                                  $89,447                                        $89,433                      $69,287                    $178,880                      $142,838

                                    EMEA cash SG&A                                       33,084                                         30,109                       29,016                      63,193                        56,627

                                    Asia-Pacific cash SG&A                               16,452                                         15,875                       14,112                      32,327                        26,186

                                    Cash SG&A                                          $138,983                                       $135,417                     $112,415                    $274,400                      $225,651
                                                                                       ========                                       ========                     ========                    ========                      ========


                             (8)    We define adjusted EBITDA as income from operations plus depreciation, amortization, accretion, stock-
                                     based compensation expense and acquisition costs as presented below:


                                    Income from operations                             $124,697                                       $121,612                     $115,963                               $246,309                      $220,750

                                     Depreciation, amortization
                                     and accretion expense                              116,074                                        113,610                      110,189                     229,684                       218,792

                                     Stock-based compensation
                                     expense                                             33,830                                         24,981                       24,194                      58,811                        48,030

                                    Acquisition costs                                       676                                            185                        2,526                         861                         6,188

                                    Adjusted EBITDA                                    $275,277                                       $260,388                     $248,035                    $535,665                      $488,923
                                                                                       ========                                       ========                     ========                    ========                      ========


                                     The geographic split of
                                     our adjusted EBITDA is
                                     presented below:


                                     Americas income from
                                     operations                                         $67,739                                        $71,735                      $73,673                    $139,474                      $133,052

                                     Americas depreciation,
                                     amortization and
                                     accretion expense                                   62,481                                         58,933                       65,149                     121,414                       128,445

                                     Americas stock-based
                                     compensation expense                                27,177                                         18,793                       18,168                      45,970                        36,612

                                    Americas acquisition costs                              728                                            102                        2,138                         830                         5,536

                                                                            Americas adjusted
                                                                              EBITDA                                   158,125                      149,563                     154,291                      307,688                       298,808
                                                                                                                     -------                      -------                     -------                      -------                       -------


                                     EMEA income from
                                     operations                                          34,067                                         29,903                       23,811                      63,970                        46,349

                                     EMEA depreciation,
                                     amortization and
                                     accretion expense                                   27,901                                         29,902                       23,424                      57,803                        46,495

                                     EMEA stock-based
                                     compensation expense                                 3,385                                          3,317                        3,065                       6,702                         6,103

                                    EMEA acquisition costs                                  (2)                                            83                          389                          81                           471

                                                                            EMEA adjusted
                                                                              EBITDA                                    65,351                       63,205                      50,689                      128,556                        99,418
                                                                                                                      ------                       ------                      ------                      -------                        ------


                                     Asia-Pacific income from
                                     operations                                          22,891                                         19,974                       18,479                      42,865                        41,349

                                     Asia-Pacific
                                     depreciation,
                                     amortization and
                                     accretion expense                                   25,692                                         24,775                       21,616                      50,467                        43,852

                                     Asia-Pacific stock-based
                                     compensation expense                                 3,268                                          2,871                        2,961                       6,139                         5,315

                                     Asia-Pacific acquisition
                                     costs                                                 (50)                                                        -                        (1)                        (50)                          181

                                                                            Asia-Pacific
                                                                              adjusted EBITDA                           51,801                       47,620                      43,055                       99,421                        90,697
                                                                                                                      ------                       ------                      ------                       ------                        ------


                                                                             Adjusted EBITDA                          $275,277                     $260,388                    $248,035                     $535,665                      $488,923
                                                                                                                      ========                     ========                    ========                     ========                      ========


                             (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%                                           72%                         71%                        72%                          71%
                                                                                          ===


                                    EMEA cash gross margins                                 63%                                           62%                         63%                        62%                          63%
                                                                                          ===


                                     Asia-Pacific cash gross
                                     margins                                                65%                                           64%                         65%                        64%                          65%
                                                                                          ===


                            (10)   We define adjusted EBITDA margins as adjusted EBITDA divided by revenues.


                                     Americas adjusted EBITDA
                                     margins                                                46%                                           45%                         49%                        46%                          48%
                                                                                          ===


                                     EMEA adjusted EBITDA
                                     margins                                                42%                                           42%                         40%                        42%                          40%
                                                                                          ===


                                     Asia-Pacific adjusted
                                     EBITDA margins                                         49%                                           48%                         49%                        49%                          51%
                                                                                          ===


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


                                     Adjusted EBITDA -current
                                     period                                            $275,277                                       $260,388                     $248,035                               $535,665                      $488,923

                                     Less adjusted EBITDA -
                                     prior period                                     (260,388)                                     (263,530)                   (240,888)                  (511,975)                    (464,702)

                                     Adjusted EBITDA
                                     growth                                             $14,889                                       $(3,142)                      $7,147                     $23,690                       $24,221
                                                                                        =======                                        =======                       ======                     =======                       =======


                                    Revenues - current period                          $605,161                                       $580,053                     $528,871                  $1,185,214                    $1,045,005

                                     Less revenues -prior
                                     period                                           (580,053)                                     (564,677)                   (516,134)                (1,107,761)                    (990,894)

                                    Revenue growth                                      $25,108                                        $15,376                      $12,737                     $77,453                       $54,111
                                                                                        =======                                        =======                      =======                     =======                       =======


                                     Adjusted EBITDA flow-
                                     through rate                                           59%                                         (20%)                         56%                        31%                          45%
                                                                                          ===

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SOURCE Equinix