Entry level above $16 with $18 as a upside breakout target
LAS VEGAS, Nov. 7, 2019 /PRNewswire/ -- Switch, Inc. ( SWCH ) ("Switch") today announced financial results for the quarter ended September 30, 2019.
"Switch's revenue growth continued to accelerate in the third quarter, resulting from strong year-to-date bookings and favorable execution across the organization," said Rob Roy, CEO , chairman and founder of Switch. "Over the past year Switch has delivered on its commitment to build a world class enterprise sales organization to match its best in class technology infrastructure platform. With our senior sales leadership team now firmly in place, we believe Switch is uniquely positioned to entrench itself as a leading destination for mission critical enterprise colocation and secure hybrid cloud ecosystems."
Third Quarter 2019 Financial Results
Total revenue of $117.6 million, compared to $102.8 million for the same quarter in 2018, an increase of 14.4%.
Income from operations of $18.1 million, compared to $12.5 million for the same quarter last year, an increase of 44.7%. Income from operations in the third quarter of 2019 also included $1.2 million in additional depreciation and amortization expense.
Net income of $7.1 million, compared to $4.7 million for the same quarter in 2018. Net income in the third quarter of 2019 includes the impact of a $3.9 million loss on interest rate swaps, reducing net income by $0.02 per diluted share.
Adjusted EBITDA of $56.7 million, compared to $50.9 million for the same quarter in 2018, an increase of 11.4%. Adjusted EBITDA margin of 48.2%, compared to 49.5% in the year ago period.
Capital expenditures of $121.2 million, compared to $60.4 million for the same quarter in 2018, an increase of 101%. Capital expenditures in the third quarter of 2019 include $28.9 million for the purchase of land parcels in The Core Campus.
Total signed contract value of $115 million, representing annualized revenue of $34 million at full deployment.
"Switch's strong third quarter financial results reflect a continuation of our organization's commitment to excellence, and a shared sense of ownership our employees have in the company's growth." said Thomas Morton, President of Switch. "We successfully negotiated several key customer contract renewals during Q3, signing multi-year extensions with six of our top 30 customers totaling more than $70 million in total contract value. This demonstrates the ongoing confidence that many of our largest and longest tenured clients have in the Switch value proposition."
"Customer activity levels in the third quarter remained robust; and we continue to be encouraged by the accelerated pace of revenue growth, particularly within our Citadel and Pyramid campus ecosystems," said Gabe Nacht, CFO of Switch. "Following another quarter of strong financial performance, we are once again increasing our outlook for 2019 revenue and adjusted EBITDA."
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