Saturday, November 25, 2017

Switch has just released its quarterly results for the first time ever

Company cements intentions of building out existing facilities adding millions of square feet to its current portfolio.

Giant data centres operator Switch has made public for the first time its quarterly financial results following its IPO in October.

The company has reported positive results across the board, with only a 28% decrease in capital expenditure from $88.9m in Q3 2016 to $64.1 in Q3 2017.

Total revenues topped $97.7m, up from $81.7m in same quarter last year, an increase of 20%. Operating income was up 55% to $25.5m from $16.4m.

Net income has not grown as much as the other financials, however, it has gone from $15.9m in Q3 2016 to $16.5m in the same quarter of 2017.

Rob Roy, CEO, chairman and founder of Switch, said: “Switch delivered a strong third quarter, achieving its highest-ever revenue and operating profit for a single quarter.

“All of our growth was organic, and we ended the quarter with over 800 customers, adding notable enterprises to our customer base.

“Our innovative, patent-protected technology and strategically located hyperscale campus ecosystems continue to be key differentiators leading customers to choose Switch for their mission critical data.”

Switch’s strong quarter has been backed by the signing up of several more customers to its fast expanding data centre footprint.

During the third quarter of 2017, Switch has spent $37.6m in The Core Campus to expand power and cooling in response to additional customer density needs, and to begin site work on its Las Vegas 11 facility, which is planned to open in the fourth quarter of 2018, adding another 340,000 gross sqf.

Switch has also invested $21.7m in The Citadel Campus to support additional power and cooling, and for construction in preparation for the opening of additional data centre space in the fourth quarter of 2017.  Finally, Switch has spent $4.8m on an additional buildout of The Pyramid Campus.

Looking ahead, Switch expects to report a total revenue in the range of $372m to $380m, with capital expenditures topping .between $345m and $365m.

Thomas Morton, president and general counsel of Switch, said: “In the third quarter, we continued to expand our strategically located PRIME campus ecosystems in North America.

“We recently announced our plan to develop a more than one million square foot campus in Atlanta to meet customer demand in the Southeast region, with construction expected to begin in the fourth quarter of 2017.

“We believe our ability to operate multiple Tier 5 Platinum data centres across the country solidifies our leadership in powering the growth of services enabled by the growth of the internet.”