Equinix Earnings Analysis

Implications: Equinix momentum continues, backed by a strong balance sheet and aggressive growth plans.  While pricing growth in the Americas has fallen to inflation levels, the well diversified company will continue to see strong revenue growth.  G&A growth is their one weakness.

Analysis: There were no real surprises from the Equinix release - Equinix is by far the strongest player in the data center space today, with few true "form" competitors.  Similar to many multinational firms, Equinix is benefiting from it's now diversivied business, racking up $1 MM in quarterly revenue from currency fluctions alone.  Per cabinet revenue grew materially on the back of the currency fluctions, though US cabinet revenue grew modestly y-o-y to $1,693 from $1,681.  Another interesting statistic was their new bookings, now at 85% from existing customers.  This high figure is typically a positive; however, lack of new client growth may have contributed to an uptick.  The company is investing aggressively - you can find a schedule via their website - in the face of continued strong demand.  Slowing economy or not, I see little on the horizon that will blunt their continued growth.  Now if they could just get a hangle on the G&A growth....