Switch unveils ‘strong’ Q1 results despite uncertain economic backdrop caused by COVID-19 outbreak
The company reported a 19% increase in its total Q1 2020 revenue compared to the same quarter in 2019, where the company reported a revenue of $107.4 million.
Switch (NYSE: SWCH) has announced financial results for the quarter ended March 31, 2020 and reported revenues of $128.1 million.
Q1 2020 revenue includes $4.2 million in non-recurring revenue resulting from a joint fibre build and indefeasible right of use transactions with a strategic cloud partner.
The Las Vegas headquartered firm reported income from operations of $21.0 million, an increase of 34% compared to $15.7 million for the year ago quarter.
“Switch’s first quarter 2020 financial results demonstrate the resiliency of our business model in the midst of an extremely challenging economic environment,” said Rob Roy, CEO, chairman, and founder of Switch.
“Importantly, the data centre industry has not suffered the extent of negative impacts that other industries have endured in the midst of the COVID-19 pandemic.
“We continue to support our customers and the local communities in which we do business during this challenging time.
“In addition, we believe that Switch’s business will remain stable throughout this time of uncertainty.
“We continue our relentless drive to innovate, and to empower customers with technology solutions that will help them adapt and prepare for a shifting business landscape.”
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The company began operations at its Keep Campus in Atlanta, with an official grand opening scheduled for June 2020.
Switch also executed a multi-year colocation and network services agreement with a Fortune 1000 financial institution in The Pyramid Campus totalling $16 million in contract value.
The company reported a net loss of $3.5 million, compared to a net income of $3.8 million for the same quarter in 2019, and reported capital expenditures of $80.9 million, compared to $45.9 million for the same quarter in 2019.
“Switch had a strong start to 2020 despite the unprecedented circumstances faced by the business community and individuals worldwide,” said Thomas Morton, President of Switch.
“We continue to closely monitor developments surrounding the COVID-19 pandemic and remain in close contact with state and local authorities in each of our Prime campus locations to ensure the safety of our employees, customers, and suppliers.
“Despite an uncertain economic backdrop, each day we remain focused on delivering best of breed technology solutions to clients to enable differentiated long-term growth.”
The technology infrastructure corporation also reported a total signed contract value of $73 million, representing annualised revenue of $18 million at full deployment, including $10 million of incremental recurring revenue.
“We are pleased with our solid first quarter performance, particularly our strong top-line growth in the face of broader economic headwinds,” said Gabe Nacht, CFO of Switch.
“Importantly, our balance sheet, cash flow, and liquidity position has remained healthy during the COVID-19 crisis, with sufficient access to non-dilutive capital in order to fund our operations and growth initiatives for the foreseeable future.”
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