Equinix Channel Partners Now Account For 40 Percent Of Bookings

Equinix generated $1.71 billion in revenue for its fourth quarter thanks, in part, to its growing channel partner business, which posted a record quarter.

Equinix’s plan to make channel sales represent 50 percent of Equinix’s total business is going as planned, as the $6.6 billion data center giant reported record channel sales for fourth-quarter 2021.

“Our channel program delivered a record quarter to close the year, accounting for 40 percent of bookings and nearly 60 percent of new logos,” said Charles Meyers, president and CEO of Equinix, during the company’s fourth-quarter financial earnings report with media and analysts. “We have line of sight for channels to grow to 50 percent of our bookings in the coming years as we enhance our systems and processes and leverage our diverse set of partners to scale our reach.”

Meyers said one of Equinix’s top priorities in 2022 “is continuing to refine our segmentation and make sure that we’re delivering the right services, to the right segments, through the right channels.”

[Related: Enterprises Spend $178 Billion On Cloud Services In 2021, Doubling Data Center Market]

The Redwood City, Calif.-based data center behemoth generated $1.71 billion in revenue during the fourth quarter, which ended Dec. 31, 2021, representing an increase of 9 percent year over year. It was Equinix’s 76th consecutive quarter of revenue growth, meaning the data center company has grown sales for 19 straight years.

One large customer win in the quarter included channel partner powerhouse Wipro teaming up with AT&T to help “a utility company modernize its IT infrastructure in Europe and the U.S.,” said Meyers.

Net income for the fourth quarter was $123 million, up a whopping 141 percent compared with $51 million in fourth-quarter 2020.

Equinix Will ‘Continue To Look At’ M&A In 2022

When asked about Equinix’s acquisition strategy this year, Meyers said M&A is a “very appropriate and powerful tool” that the company has “been very successful at.”

“We’re going to continue to look at [M&A] as an opportunity to extend our reach, scale, our business in key markets, and bring in critical air connection assets,” said Meyers. “So yes, we’re actively involved in those processes. We’re going to maintain a level of discipline on that as we always do. … I’m sure you’ll hear more from us over the course of the year on that front.”

In December, Equinix unveiled plans to acquire MainOne, a leading West African data center provider for $320 million as the company doubles down on the region. Meyers said the acquisition of MainOne is expected to close within the next few months.

“We continue to believe Africa is a very attractive long-term market. It is one that’s going to evolve over many years. And we’re active in that market,” said Meyers. “We’re very excited about MainOne, and we think it’s a great cornerstone to build from.”

Financial Guidance For 2022: $7.2 Billion

For the full year 2021, Equinix generated $6.6 billion in revenue, representing an increase of 11 percent compared with 2020. Equinix closed over 17,500 deals in 2021.

Net income for 2021 was $500 million, up 35 percent annually, primarily due to lower interest expense and debt extinguishment costs related to balance sheet refinancing initiatives, the company said.

Looking ahead in 2022, Equinix expects to generate between $7.2 billion and $7.25 billion in total sales, which would represent a 9 percent annual revenue increase.

For the first quarter of 2022, Equinix projects revenue to be approximately $1.73 billion.

“As we look to 2022, the trajectory and underlying momentum in our business is exceptionally strong with a solid demand pipeline, stable churn and a rising price trend, resulting in a revenue outlook for the year that is at or above the high end of our long-term guidance range,” said Meyers.