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Revenue: $1.6 billion, up 12% from the prior year.
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Adjusted EBITDA: $568 million, up 14% year on year.
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AFFO per Share: $1.12, up 10% compared to the prior year.
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Total Storage Revenue: $936 million, up $77 million year on year.
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Total Service Revenue: $622 million, up $92 million from last year.
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Adjusted EBITDA Margin: 36.5%, up 50 basis points year on year.
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Global RIM Business Revenue: $1.26 billion, an increase of $78 million year on year.
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Global Data Center Business Revenue: $153 million, an increase of $26 million year on year.
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Data Center Adjusted EBITDA Margin: 43.6%, an increase of 190 basis points from the third quarter of last year.
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Asset Lifecycle Management Revenue: $102 million, an increase of 145% year on year.
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Capital Expenditures: $415 million, with $373 million of growth and $41 million of recurring.
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Net Lease Adjusted Leverage: 5.0 times, the lowest level since prior to the Company’s reconversion in 2014.
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Dividend: $0.715 per share to be paid in early January.
Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Iron Mountain Inc (NYSE:IRM) achieved record quarterly revenue of $1.6 billion, up 12% from the prior year.
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The company set a new adjusted EBITDA record of $568 million, up 14% year-over-year.
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AFFO per share on a normalized basis increased by 10% to $1.12 compared to the prior year.
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Strong performance in the digital solutions business with the launch of the DXP platform, securing 24 recurring revenue deals.
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Significant growth in the asset lifecycle management (ALM) business, with a 145% year-over-year increase in revenue.
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The strength of the US dollar posed a headwind, impacting revenue and AFFO on a constant currency basis.
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Data center service revenue was slightly down due to customer-specific installation work from the previous year.
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The company faces challenges in maintaining consistent growth in the data center business due to the lumpiness of large hyperscale contracts.
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Capital expenditures are expected to increase significantly, with a projection of $1.8 billion for the year, primarily for data center growth.
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Exposure to Latin American currencies, such as the Argentine peso and Brazilian real, negatively impacted financial results.
Q: Can you elaborate on trends in the data center and enterprise side of the ALM business, including contributions from volumes and pricing? A: William Meaney, CEO, explained that strong growth is seen in data center decommissioning, particularly with hyperscale clients upgrading to new equipment. Barry Hytinen, CFO, added that pricing trends are stable, with some variability in component pricing. Organic revenue growth in ALM was significant, driven by volume increases and synergies from the Regency acquisition.
