Data centre operator Equinix has trimmed its annual revenue forecast this week on worries that a tough macroeconomic environment would prompt companies to scale back their plans for cloud-based infrastructure.
The California-based company expects annual revenue between US$8.17 billion and US$8.21 billion, compared with its prior outlook of US$8.17 billion to US$8.25 billion.
Analysts on average expect annual revenue of US$8.20 billion, according to LSEG data.
For the third quarter, the company posted revenue of US$2.06 billion, which was in line with analysts' estimates, according to LSEG data.
Adjusted core earnings rose 7 per cent to US$936 million, and the company said it expected a figure of between US$899 million and US$929 million for the current quarter, compared with expectations of US$930.1 million.
Adjusted funds from operations - a key measure of cash flow - came in at US$8.19 per share, 6 per cent higher than a year earlier.
The company projects current-quarter revenue between US$2.09 billion and US$2.13 billion, the top end of which is in line with estimates.
While demand for data centres remains robust, the supply situation in major markets remains tight on account of availability of power, brokerage MoffettNathanson said on Monday.
Data centre spending is expected to grow more than 3 per cent this year compared with a prior outlook of 6 per cent on slowing demand while top four cloud companies, including Microsoft's Azure and Amazon Web Services are still clearing inventory, brokerage Raymond James said earlier in October.
(Reporting by Jaspreet Singh in Bengaluru)
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