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Business Outlook
For the second quarter of 2024, the company expects revenues to range between $2.148 and $2.168 billion, an increase of approximately 1 - 2% over the previous quarter, or a normalized and constant currency increase of 2 - 3% excluding the quarter-over-quarter impact of the power pass-through. This guidance includes a $7 million negative foreign currency impact when compared to the average FX rates in Q1 2024. Adjusted EBITDA is expected to range between $1.019 and $1.039 billion. This guidance includes a $4 million negative foreign currency impact when compared to the average FX rates in Q1 2024 and $6 million of integration costs from acquisitions. Recurring capital expenditures are expected to range between $38 and $58 million.
For the full year of 2024, total revenues are expected to range between $8.692 and $8.792 billion, a 6 - 7% increase over the previous year, or a normalized and constant currency increase of 7 - 8% excluding the year-over-year impact of the power pass-through. This updated guidance maintains prior full year revenue guidance, offset by a $101 million negative foreign currency impact when compared to the prior guidance rates. Adjusted EBITDA is expected to range between $4.044 and $4.124 billion, an adjusted EBITDA margin of 47%. This updated guidance includes a full year adjusted EBITDA raise of $5 million, offset by a $50 million negative foreign currency impact when compared to prior guidance rates. AFFO is expected to range between $3.290 and $3.370 billion, an increase of 9 - 12% over the previous year, or a normalized and constant currency increase of 10 - 13%. This updated guidance includes an underlying raise of $25 million from lower net interest expense and lower integration costs, offset by a $36 million negative foreign currency impact when compared to prior guidance rates. AFFO per share is expected to range between $34.45 and $35.29, an increase of 7 - 10% over the previous year, or a normalized and constant currency increase of 8 - 11%. Total capital expenditures are expected to range between $2.780 and $3.030 billion. Non-recurring capital expenditures, including xScale-related capital expenditures, are expected to range between $2.570 and $2.800 billion, and recurring capital expenditures are expected to range between $210 and $230 million. xScale-related on-balance sheet capital expenditures are expected to range between $12 and $52 million, which we anticipate will be reimbursed to Equinix from both the current and future xScale JVs.
The U.S. dollar exchange rates used for 2024 guidance, taking into consideration the impact of our current foreign currency hedges, have been updated to $1.10 to the Euro, $1.27 to the Pound, S$1.35 to the U.S. Dollar, ¥151 to the U.S. Dollar, A$1.53 to the U.S. Dollar, HK$7.83 to the U.S. Dollar, R$5.01 to the U.S. Dollar and C$1.35 to the U.S. Dollar. The Q1 2024 global revenue breakdown by currency for the Euro, British Pound, Singapore Dollar, Japanese Yen, Australian Dollar, Hong Kong Dollar, Brazilian Real and Canadian Dollar is 20%, 10%, 8%, 6%, 4%, 3%, 3% and 2%, respectively.
The adjusted EBITDA guidance is based on the revenue guidance less our expectations of cash cost of revenues and cash operating expenses. The AFFO guidance is based on the adjusted EBITDA guidance less our expectations of net interest expense, an installation revenue adjustment, a straight-line rent expense adjustment, a contract cost adjustment, amortization of deferred financing costs and debt discounts and premiums, income tax expense, an income tax expense adjustment, recurring capital expenditures, other income (expense), (gains) losses on disposition of real estate property, and adjustments for unconsolidated joint ventures' and non-controlling interests' share of these items.
Posted In: EQIX
