#CotD - $EQIX
I'm writing about 5 digital infra cos in 5 days.
1: Equinix is a global Data Center leader. It epitomizes the compelling nature of digital infra, like those in the $BYTE Index.
• Huge Growing TAM
• Global
• High-Quality Assets
• Growth & Profitablty
🧵👇👇
1/x
I'm writing about 5 digital infra cos in 5 days.
1: Equinix is a global Data Center leader. It epitomizes the compelling nature of digital infra, like those in the $BYTE Index.
• Huge Growing TAM
• Global
• High-Quality Assets
• Growth & Profitablty
🧵👇👇
1/x
Huge Growing TAM:
Using data requires either internet access (off-premises) or local storage (your device, local server).
Off-premises data comes from Data Centers (video, SaaS, cloud, social). EQIX is a huge Data Center owner, selling into the inexorable digitization trend.
2/
Using data requires either internet access (off-premises) or local storage (your device, local server).
Off-premises data comes from Data Centers (video, SaaS, cloud, social). EQIX is a huge Data Center owner, selling into the inexorable digitization trend.
2/
Global:
$EQIX is one of the largest Data Center cos, w/ 230 DCs globally.
It's a "1 stop shop" for enterprises that want to deploy cloud anywhere. Other DCs may focus on "hyperscale" cloud providers (FAANG). EQIX has HCPs but also a broader enterprise focus, w/ >10k clients.
3/
$EQIX is one of the largest Data Center cos, w/ 230 DCs globally.
It's a "1 stop shop" for enterprises that want to deploy cloud anywhere. Other DCs may focus on "hyperscale" cloud providers (FAANG). EQIX has HCPs but also a broader enterprise focus, w/ >10k clients.
3/
High-Quality Assets
Since its founding, $EQIX invested >$30B of capital.
Its DCs knit together the internet: once in an EQIX DC, customers often "interconnect" w/ other networks & clouds inside the same DC, improving customer performance & stickiness. 95% of rev is recurring.
4/
Since its founding, $EQIX invested >$30B of capital.
Its DCs knit together the internet: once in an EQIX DC, customers often "interconnect" w/ other networks & clouds inside the same DC, improving customer performance & stickiness. 95% of rev is recurring.
4/
Consistent Growth & Profitability
$EQIX has grown revenue 500x since its 2000 IPO, increasing rev each yr.
Its adj EBITDA margin % is highly consistent (👇), as the economic profile of new Data Centers remains attractive.
It deploys capital via dividends, new build, & M&A.
5/
$EQIX has grown revenue 500x since its 2000 IPO, increasing rev each yr.
Its adj EBITDA margin % is highly consistent (👇), as the economic profile of new Data Centers remains attractive.
It deploys capital via dividends, new build, & M&A.
5/
Summary:
Data Centers knit together the internet. The data we live on comes from DCs and $EQIX is one of the largest DC owners globally, growing alongside data consumption.
At 24x EBITDA, it's a "4 cap" w/ growth as far as the eye can see, recurring revenues, & strong assets.
6/
Data Centers knit together the internet. The data we live on comes from DCs and $EQIX is one of the largest DC owners globally, growing alongside data consumption.
At 24x EBITDA, it's a "4 cap" w/ growth as far as the eye can see, recurring revenues, & strong assets.
6/
Note: I never intend Tweets as investment advice. This is simply a basic, high-level overview of what Equinix does and how one might begin to look at the business.
@maybebullish & @IODigitalIndex love cartwheels🤸♀️.
Like, follow, & RT if you want to see the next 4 overviews.
7/
@maybebullish & @IODigitalIndex love cartwheels🤸♀️.
Like, follow, & RT if you want to see the next 4 overviews.
7/
One down, four to go. I'm using the hashtag #CotD to track my Company of the Day tweets.
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https://twitter.com/compound248/status/1453731224267026439?s=20
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