Switch Announces 3rd Quarter 2022 Financial Results.
LAS VEGAS: Switch, Inc. (NYSE: SWCH) ("Switch") today announced financial results for the quarter ended September 30, 2022.
"Switch maintained a strong double-digit revenue growth trajectory in the third quarter of 2022," said Rob Roy, Founder and CEO of Switch. "Our sales pipeline remains active as we continue to have good visibility on customer demand for facilities that are currently under construction across the Five Primes. LAS VEGAS 15 is substantially committed to clients just six months after its opening, and we have pre-sold multiple megawatts at the TAHOE RENO 2 and ATLANTA 3 facilities which are on track for delivery in H1 2023 and H2 2023, respectively. In addition, we remain committed to our long-term development plan to deliver more than four million square feet of capacity through 2026, with enough land to construct an additional seven million square feet thereafter."
Third Quarter 2022 Financial Results
Financial Summary
($ in millions, except per share amounts)
Q3 2021
Q2 2022
Q3 2022
Y/Y%
Change
Q/Q%
Change
Consolidated revenue
$ 158.1
$ 168.2
$ 174.5
10 %
4 %
Income from operations
$ 17.8
$ 21.2
$ 7.5
-58 %
-65 %
Net (loss) income1
$ (0.9)
$ 380.7
$ (0.2)
n.m.
n.m.
Net (loss) income per diluted share1
$ (0.00)
$ 1.51
$ (0.00)
n.m.
n.m.
Adjusted net (loss) income per diluted share
$ 0.01
$ 0.02
$ (0.03)
n.m.
n.m.
Adjusted EBITDA
$ 76.9
$ 84.6
$ 69.5
-10 %
-18 %
Adjusted EBITDA Margin %
49 %
50 %
40 %
-880 bp
-1,050 bp
Adjusted Funds from Operations
$ 51.1
$ 66.4
$ 56.4
10 %
-15 %
Key Performance Indicators
Q3 2021
Q2 2022
Q3 2022
LTM Average
Total Contract Value
$ 94.1
$ 104.0
$ 63.3
$130.2
Annualized Monthly Recurring Revenue
$ 26.9
$ 37.4
$ 21.9
$39.9
Incremental Annualized Revenue
$ 16.2
$ 22.3
$ 8.1
$22.0
Weighted Average Term (yrs)
4.3
3.1
3.6
4.1
1Q2 2022 net income and net income per diluted share include a $372.8 million gain on termination of the tax receivable agreement.
"We are pleased with our team's strong execution during a challenging macroeconomic period, as we continue to deliver the most resilient technology infrastructure to meet our clients' mission critical demands," said Thomas Morton, President of Switch. "Management remains focused on achieving its operational goals while making continued progress toward closing our go-private transaction with Digital Bridge and IFM. Switch's Board of Directors and senior management team continue to believe in the merits of this transaction and its tremendous...
To continue reading
Request your trial