Equinix Inc : Equinix Reports First Quarter 2012 Results
04/25/2012| 04:05pm US/Eastern
Recommend:
0
Reported revenues of $452.2 million, a 5% increase over the
previous quarter and a 25% increase over the same quarter last year
Increased full year 2012 revenue guidance to greater than $1,890.0
million and increased 2012 adjusted EBITDA guidance to greater than
$860.0 million
Equinix,
Inc. (Nasdaq:EQIX),
a provider of global data center services, today reported quarterly
results for the quarter ended March 31, 2012. 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 $452.2 million for the first quarter, a 5% increase over
the previous quarter and a 25% increase over the same quarter last year.
Recurring revenues, consisting primarily of colocation, interconnection
and managed services were $429.6 million for the first quarter, a 5%
increase over the previous quarter and a 25% increase over the same
quarter last year. Non-recurring revenues were $22.6 million in the
quarter.
"Our strong first quarter results reflect growth in all three regions,
which is being propelled by strong secular trends in mobility, cloud
computing and data management, leaving us well positioned to achieve our
2012 objectives," said Steve Smith, president and CEO of
Equinix. "Global ecosystems being formed inside Equinix reflect these
trends as well as our unique position to power the global digital
economy."
Cost of revenues were $225.1 million for the first quarter, a 2%
decrease over the previous quarter and a 16% increase over the same
quarter last year. Cost of revenues, excluding depreciation,
amortization, accretion and stock-based compensation of $84.5 million,
which we refer to as cash cost of revenues, were $140.6 million for the
first quarter, a 2% decrease from the previous quarter and a 15%
increase over the same quarter last year. Gross margins for the quarter
were 50%, up from 47% for the previous quarter and up from 46% 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 69%, up from 67%
for the previous quarter and up from 66% for the same quarter last year.
Selling, general and administrative expenses were $125.0 million for the
first quarter, a 7% increase over the previous quarter and a 30%
increase over the same quarter last year. Selling, general and
administrative expenses, excluding depreciation, amortization and
stock-based compensation of $28.5 million, which we refer to as cash
selling, general and administrative expenses, were $96.5 million for the
first quarter, an 8% increase over the previous quarter and a 32%
increase over the same quarter last year.
Interest expense was $52.8 million for the first quarter, a 4% decrease
from the previous quarter and a 41% increase over the same quarter last
year, primarily attributed to the $750.0 million 7.00% senior notes
offering in July 2011. The Company recorded income tax expense of $14.0
million for the first quarter and income tax expense of $11.1 million in
the same quarter last year.
Net income attributable to Equinix for the first quarter was $34.5
million. This represents a basic net income per share attributable to
Equinix of $0.74 and a diluted net income per share attributable to
Equinix of $0.71 based on a weighted average share count of 47.0 million
and 51.1 million, respectively, for the first quarter of 2012.
Income from operations was $101.1 million for the first quarter, a 22%
increase from the previous quarter and a 42% 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 and acquisition costs, for the first
quarter was $215.2 million, an increase of 9% over the previous quarter
and a 29% 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 first quarter,
were $145.5 million, of which $102.4 million was attributed to expansion
capital expenditures and $43.1 million was attributed to ongoing capital
expenditures.
The Company generated cash from operating activities of $126.0 million
for the first quarter as compared to $187.6 million in the previous
quarter and $117.8 million for the same quarter last year. Cash provided
by investing activities was $269.4 million in the first quarter as
compared to cash used in investing activities of $194.6 million in the
previous quarter and cash used in investing activities of $286.4 million
for the same quarter last year. Cash used in financing activities was
$44.0 million for the first quarter.
As of March 31, 2012, the Company's cash, cash equivalents and
investments were $1,083.3 million, as compared to $1,076.3 million as of
December 31, 2011.
In April 2012, virtually all of the holders of the 2.50% $250.0 million
convertible subordinated notes converted their notes. The Company
settled the $250.0 million in aggregate principal amount of the 2.50%
convertible subordinated notes, plus accrued interest, in $253.1 million
of cash and approximately 623,000 shares of the Company's common stock.
Business Outlook
For the second quarter of 2012, the Company expects revenues to be in
the range of $466.0 to $468.0 million, which includes $3.0 million of
negative foreign currency headwinds. Cash gross margins are expected to
approximate 68%. Cash selling, general and administrative expenses are
expected to range between $100.0 and $104.0 million. Adjusted EBITDA is
expected to be between $212.0 and $214.0 million, which includes a $3.0
million increase in professional fees and $1.0 million of negative
currency headwinds. Capital expenditures are expected to be
approximately $240.0 to $260.0 million, comprised of approximately $40.0
million of ongoing capital expenditures and $200.0 to $220.0 million of
expansion capital expenditures.
For the full year of 2012, total revenues are expected to be greater
than $1,890.0 million, which includes $9.0 million of negative foreign
currency headwinds. Total year cash gross margins are expected to
approximate 67%. Cash selling, general and administrative expenses are
expected to range between $390.0 and $420.0 million. Adjusted EBITDA for
the year is expected to be greater than $860.0 million, which includes a
$10.0 million increase in professional fees and $4.0 million of negative
currency headwinds. Capital expenditures for 2012 are expected to be in
the range of $700.0 to $800.0 million, comprised of approximately $135.0
million of ongoing capital expenditures and $565.0 to $665.0 million for
expansion capital expenditures.
Company Metricsand Q1 Results Presentation
The Company will discuss its results and guidance on its quarterly
conference call on Wednesday, April 25, 2012, at 5:30 p.m. ET (2:30 p.m.
PT). A simultaneous live Webcast of the call will be available on the
Equinix investors website located at www.equinix.com/investors.
To hear the conference call live, please dial 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, April 25,
2012, at 7:30 p.m. (ET) through May 25, 2012, by dialing 203-369-1363
(domestic and international) and reference the passcode (2012). 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 replay or the webcast.
About Equinix
Equinix, Inc. (Nasdaq: EQIX) connects businesses with partners and
customers around the world through a global platform of high performance
data centers, containing dynamic ecosystems and the broadest choice of
networks. Platform Equinix connects more than 4,000 enterprises, cloud,
digital content and financial companies including more than 700 network
service providers to help them grow their businesses, improve
application performance and protect their vital digital assets. Equinix
operates in 38 strategic markets across the Americas, EMEA and
Asia-Pacific and continually invests in expanding its platform to power
customer growth. http://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 and adjusted 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 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 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 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
March 31,
December 31,
March 31,
2012
2011
2011
Recurring revenues
$
429,621
$
410,734
$
343,909
Non-recurring revenues
22,579
20,578
19,120
Revenues
452,200
431,312
363,029
Cost of revenues
225,079
229,340
194,576
Gross profit
227,121
201,972
168,453
Operating expenses:
Sales and marketing
46,571
45,322
33,636
General and administrative
78,425
71,674
62,601
Restructuring charges
-
1,295
496
Acquisition costs
1,027
805
415
Total operating expenses
126,023
119,096
97,148
Income from operations
101,098
82,876
71,305
Interest and other income (expense):
Interest income
691
754
215
Interest expense
(52,818
)
(55,151
)
(37,361
)
Other income (expense)
(154
)
1,383
2,111
Total interest and other, net
(52,281
)
(53,014
)
(35,035
)
Income before income taxes
48,817
29,862
36,270
Income tax expense
(14,006
)
(13,769
)
(11,125
)
Net income
34,811
16,093
25,145
Net loss (income) attributable to redeemable non-controlling
interests
(288
)
1,717
-
Net income attributable to Equinix
$
34,523
$
17,810
$
25,145
Net income per share attributable to Equinix:
Basic net income per share (1)
$
0.74
$
0.36
$
0.54
Diluted net income per share (1)
$
0.71
$
0.35
$
0.53
Shares used in computing basic net income per share
46,955
47,235
46,451
Shares used in computing diluted net income per share
51,061
48,083
47,219
(1)
The net income attributable to Equinix used in the computation of
basic and diluted net income per share attributable to Equinix is
presented below:
Net income
$
34,811
$
16,093
$
25,145
Net loss (income) attributable to non-controlling interests
(288
)
1,717
-
Adjustments attributable to redemption value of non-controlling
interests
184
(837
)
-
Net income attributable to Equinix, basic
34,707
16,973
25,145
Interest on convertible debt
1,699
-
-
Net income attributable to Equinix, diluted
$
36,406
$
16,973
$
25,145
EQUINIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(in thousands)
(unaudited)
Three Months Ended
March 31,
December 31,
March 31,
2012
2011
2011
Net income
$
34,811
$
16,093
$
25,145
Other comprehensive income (loss), net of tax:
Foreign currency translation gain (loss)
34,312
(21,549
)
50,683
Unrealized gain (loss) on available for sale securities
78
253
(21
)
Other comprehensive income (loss), net of tax:
34,390
(21,296
)
50,662
Comprehensive income (loss), net of tax
69,201
(5,203
)
75,807
Net loss (income) attributable to redeemable non-controlling
interests
(288
)
1,717
-
Other comprehensive income attributable to redeemable
non-controlling interests
(1,059
)
(1,986
)
-
Comprehensive income (loss) attributable to Equinix, net of tax
$
67,854
$
(5,472
)
$
75,807
EQUINIX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
Assets
March 31,
December 31,
2012
2011
Cash and cash equivalents
$
632,944
$
278,823
Short-term investments
283,910
635,721
Accounts receivable, net
158,561
139,057
Other current assets
98,608
182,156
Total current assets
1,174,023
1,235,757
Long-term investments
166,437
161,801
Property, plant and equipment, net
3,387,369
3,225,912
Goodwill
879,914
866,495
Intangible assets, net
145,350
148,635
Other assets
131,252
146,724
Total assets
$
5,884,345
$
5,785,324
Liabilities and Stockholders' Equity
Accounts payable and accrued expenses
$
194,516
$
229,043
Accrued property and equipment
125,250
93,224
Current portion of capital lease and other financing obligations
11,961
11,542
Current portion of loans payable
75,361
87,440
Current portion of convertible debt
249,474
246,315
Other current liabilities
61,521
57,690
Total current liabilities
718,083
725,254
Capital lease and other financing obligations, less current portion
402,911
390,269
Loans payable, less current portion
144,582
168,795
Senior notes
1,500,000
1,500,000
Convertible debt
698,159
694,769
Other liabilities
291,060
286,424
Total liabilities
3,754,795
3,765,511
Redeemable non-controlling interests
69,071
67,601
Common stock
48
48
Additional paid-in capital
2,490,401
2,437,623
Treasury stock
(99,031
)
(86,666
)
Accumulated other comprehensive loss
(110,367
)
(143,698
)
Accumulated deficit
(220,572
)
(255,095
)
Total stockholders' equity
2,060,479
1,952,212
Total liabilities, redeemable non-controlling interests and
stockholders' equity
$
5,884,345
$
5,785,324
Ending headcount by geographic region is as follows:
Americas headcount
1,788
1,763
EMEA headcount
602
570
Asia-Pacific headcount
393
376
Total headcount
2,783
2,709
EQUINIX, INC.
SUMMARY OF DEBT OUTSTANDING
(in thousands)
(unaudited)
March 31,
December 31,
2012
2011
Capital lease and other financing obligations
$
414,872
$
401,811
Paris IBX financing
16,800
52,104
ALOG financing
17,323
10,288
Asia-Pacific financing
185,820
193,843
Total loans payable
219,943
256,235
Senior notes
1,500,000
1,500,000
Convertible debt, net of debt discount
947,633
941,084
Plus debt discount
72,103
78,652
Total convertible debt principal
1,019,736
1,019,736
Total debt outstanding
$
3,154,551
$
3,177,782
EQUINIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended
March 31,
December 31,
March 31,
2012
2011
2011
Cash flows from operating activities:
Net income
$
34,811
$
16,093
$
25,145
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation, amortization and accretion
93,922
94,683
79,525
Stock-based compensation
19,103
18,472
15,535
Debt issuance costs and debt discount
8,107
8,356
7,284
Restructuring charges
-
1,295
496
Other reconciling items
2,857
4,526
1,563
Changes in operating assets and liabilities:
Accounts receivable
(19,677
)
3,238
3,099
Deferred tax assets, net
5,370
4,632
5,640
Accounts payable and accrued expenses
(33,737
)
45,274
(13,606
)
Other assets and liabilities
15,237
(8,948
)
(6,911
)
Net cash provided by operating activities
125,993
187,621
117,770
Cash flows from investing activities:
Purchases, sales and maturities of investments, net
346,366
1,400
(2,185
)
Purchases of real estate
-
(4,073
)
(14,951
)
Purchases of other property, plant and equipment
(145,490
)
(190,160
)
(175,115
)
Other investing activities
68,557
(1,792
)
(94,138
)
Net cash provided by (used in) investing activities
269,433
(194,625
)
(286,389
)
Cash flows from financing activities:
Purchases of treasury stock
(13,364
)
(86,666
)
-
Proceeds from employee equity awards
30,460
3,189
15,668
Proceeds from loans payable
8,909
4,701
22,653
Repayment of capital lease and other financing obligations
(2,826
)
(3,022
)
(1,968
)
Repayment of mortgage and loans payable
(67,129
)
(1,556
)
(10,102
)
Other financing activities
-
(29
)
(125
)
Net cash provided by (used in) financing activities
(43,950
)
(83,383
)
26,126
Effect of foreign currency exchange rates on cash and cash
equivalents
2,645
(1,313
)
4,118
Net increase (decrease) in cash and cash equivalents
354,121
(91,700
)
(138,375
)
Cash and cash equivalents at beginning of period
278,823
370,523
442,841
Cash and cash equivalents at end of period
$
632,944
$
278,823
$
304,466
Supplemental cash flow information:
Cash paid for taxes
$
1,734
$
1,985
$
174
Cash paid for interest
$
63,336
$
28,846
$
36,737
Free cash flow (1)
$
49,060
$
(8,404
)
$
(166,434
)
Adjusted free cash flow (2)
$
49,060
$
(4,331
)
$
(151,483
)
(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
$
125,993
$
187,621
$
117,770
Net cash provided by (used in) investing activities as presented
above
269,433
(194,625
)
(286,389
)
Purchases, sales and maturities of investments, net
(346,366
)
(1,400
)
2,185
Free cash flow (negative free cash flow)
$
49,060
$
(8,404
)
$
(166,434
)
(2)
We define adjusted free cash flow as free cash flow (as defined
above) excluding any purchases or sales of real estate and
acquisitions as presented below:
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - NON-GAAP
PRESENTATION
(in thousands)
(unaudited)
Three Months Ended
March 31,
December 31,
March 31,
2012
2011
2011
Recurring revenues
$
429,621
$
410,734
$
343,909
Non-recurring revenues
22,579
20,578
19,120
Revenues (1)
452,200
431,312
363,029
Cash cost of revenues (2)
140,586
143,504
122,631
Cash gross profit (3)
311,614
287,808
240,398
Cash operating expenses (4):
Cash sales and marketing expenses (5)
38,186
37,085
27,104
Cash general and administrative expenses (6)
58,278
52,592
46,018
Total cash operating expenses (7)
96,464
89,677
73,122
Adjusted EBITDA (8)
$
215,150
$
198,131
$
167,276
Cash gross margins (9)
69
%
67
%
66
%
Adjusted EBITDA margins (10)
48
%
46
%
46
%
Adjusted EBITDA flow-through rate (11)
81
%
47
%
103
%
(1)
The geographic split of our revenues on a services basis is
presented below:
Americas Revenues:
Colocation
$
209,708
$
202,840
$
176,196
Interconnection
54,646
52,383
45,922
Managed infrastructure
13,970
12,476
767
Rental
439
463
504
Recurring revenues
278,763
268,162
223,389
Non-recurring revenues
9,321
9,341
9,138
Revenues
288,084
277,503
232,527
EMEA Revenues:
Colocation
83,951
80,174
68,200
Interconnection
3,824
3,600
2,812
Managed infrastructure
3,414
3,401
3,198
Rental
344
238
118
Recurring revenues
91,533
87,413
74,328
Non-recurring revenues
9,803
7,835
7,711
Revenues
101,336
95,248
82,039
Asia-Pacific Revenues:
Colocation
47,117
43,686
36,339
Interconnection
7,320
6,789
5,341
Managed infrastructure
4,888
4,684
4,512
Recurring revenues
59,325
55,159
46,192
Non-recurring revenues
3,455
3,402
2,271
Revenues
62,780
58,561
48,463
Worldwide Revenues:
Colocation
340,776
326,700
280,735
Interconnection
65,790
62,772
54,075
Managed infrastructure
22,272
20,561
8,477
Rental
783
701
622
Recurring revenues
429,621
410,734
343,909
Non-recurring revenues
22,579
20,578
19,120
Revenues
$
452,200
$
431,312
$
363,029
(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
$
225,079
$
229,340
$
194,576
Depreciation, amortization and accretion expense
(83,098
)
(84,289
)
(70,600
)
Stock-based compensation expense
(1,395
)
(1,547
)
(1,345
)
Cash cost of revenues
$
140,586
$
143,504
$
122,631
The geographic split of our cash cost of revenues is presented below:
Americas cash cost of revenues
$
83,307
$
84,664
$
70,210
EMEA cash cost of revenues
35,353
36,677
34,491
Asia-Pacific cash cost of revenues
21,926
22,163
17,930
Cash cost of revenues
$
140,586
$
143,504
$
122,631
(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,
restructuring charges 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
$
46,571
$
45,322
$
33,636
Depreciation and amortization expense
(4,350
)
(4,308
)
(3,666
)
Stock-based compensation expense
(4,035
)
(3,929
)
(2,866
)
Cash sales and marketing expenses
$
38,186
$
37,085
$
27,104
(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
$
78,425
$
71,674
$
62,601
Depreciation and amortization expense
(6,474
)
(6,086
)
(5,259
)
Stock-based compensation expense
(13,673
)
(12,996
)
(11,324
)
Cash general and administrative expenses
$
58,278
$
52,592
$
46,018
(7)
Our cash operating expenses, or cash SG&A, as defined above, is
presented below:
Cash sales and marketing expenses
$
38,186
$
37,085
$
27,104
Cash general and administrative expenses
58,278
52,592
46,018
Cash SG&A
$
96,464
$
89,677
$
73,122
The geographic split of our cash operating expenses, or cash SG&A,
is presented below:
Americas cash SG&A
$
67,025
$
59,881
$
48,812
EMEA cash SG&A
19,099
18,853
16,936
Asia-Pacific cash SG&A
10,340
10,943
7,374
Cash SG&A
$
96,464
$
89,677
$
73,122
(8)
We define adjusted EBITDA as income from operations plus
depreciation, amortization, accretion, stock-based compensation
expense, restructuring charges and acquisition costs as presented
below:
Income from operations
$
101,098
$
82,876
$
71,305
Depreciation, amortization and accretion expense
93,922
94,683
79,525
Stock-based compensation expense
19,103
18,472
15,535
Restructuring charges
-
1,295
496
Acquisition costs
1,027
805
415
Adjusted EBITDA
$
215,150
$
198,131
$
167,276
The geographic split of our adjusted EBITDA is presented below:
Americas income from operations
$
61,918
$
57,145
$
47,319
Americas depreciation, amortization and accretion expense
60,421
59,597
53,482
Americas stock-based compensation expense
15,151
14,669
11,842
Americas restructuring charges
-
1,295
496
Americas acquisition costs
262
252
366
Americas adjusted EBITDA
137,752
132,958
113,505
EMEA income from operations
27,279
17,466
11,471
EMEA depreciation, amortization and accretion expense
17,312
19,776
16,844
EMEA stock-based compensation expense
2,164
2,119
2,295
EMEA acquisition costs
129
357
2
EMEA adjusted EBITDA
46,884
39,718
30,612
Asia-Pacific income from operations
11,901
8,265
12,515
Asia-Pacific depreciation, amortization and accretion expense
16,189
15,310
9,199
Asia-Pacific stock-based compensation expense
1,788
1,684
1,398
Asia-Pacific acquisition costs
636
196
47
Asia-Pacific adjusted EBITDA
30,514
25,455
23,159
Adjusted EBITDA
$
215,150
$
198,131
$
167,276
(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
71
%
69
%
70
%
EMEA cash gross margins
65
%
61
%
58
%
Asia-Pacific cash gross margins
65
%
62
%
63
%
(10)
We define adjusted EBITDA margins as adjusted EBITDA divided by
revenues.
Americas adjusted EBITDA margins
48
%
48
%
49
%
EMEA adjusted EBITDA margins
46
%
42
%
37
%
Asia-Pacific adjusted EBITDA margins
49
%
43
%
48
%
(11)
We define adjusted EBITDA flow-through rate as incremental
adjusted EBITDA growth divided by incremental revenue growth as
follows:
Recommend:
