Switch, Inc. (SWCH) Tops Q3 EPS by 1c, Beats on Revenues; Offers FY17 Revenue Mid-Point Guidance Above Consensus

Switch, Inc. (NYSE: SWCH) reported Q3 EPS of $0.08, $0.01 better than the analyst estimate of $0.07. Revenue for the quarter came in at $97.7 million versus the consensus estimate of $95.81 million.

2017 Guidance

For the full year 2017, Switch provides the following guidance:

• Total revenue in the range of $372 million to $380 million.
• Adjusted EBITDA in the range of $190 million to $195 million.
• Capital expenditures in the range of $345 million to $365 million.
• Class A fully weighted average basic share count of 36 million to 37 million.
• Class A fully weighted average diluted share count of 36.5 million to 38 million.

Third Quarter 2017 Financial Highlights

• Total revenue of $97.7 million, compared to $81.7 million for the same quarter last year, an increase of 20%.
• Operating income of $25.5 million, compared to operating income of $16.4 million for the same quarter last year, an increase 55%.
• Net income of $16.5 million, compared to $15.9 million for the same quarter last year.
• Adjusted EBITDA of $49.7 million, compared to $34.6 million for the same quarter last year, an increase of 44%. Adjusted EBITDA margin of 50.9%, compared to 42.4% for the same quarter last year, an increase of 850 basis points.
• Capital expenditures of $64.1million, compared to $88.9 million in the same quarter of 2016, a decrease of 28%.
• Churn of 0.3% and 0.5% for the three and nine months ended September 30, 2017. Churn is defined as a reduction in recurring revenue attributed to customer terminations or non-renewal of expired contracts, as a percentage of revenue at the beginning of the period.

GUIDANCE:

Switch, Inc. sees FY2017 revenue of $372-380 million, versus the consensus of $374.58 million.

For earnings history and earnings-related data on Switch, Inc. (SWCH) click here.

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