NEXTDC, a data center operator in Australia, today announced its FY21 (twelve months ending June 30, 2021) earnings and provided updates on its FY22 guidance, data center portfolio, utilization, unit economics, interconnection, and development pipeline.
Financial Performance in FY21 – NEXTDC
In FY21, NEXTDC reported revenue of A$246.1m ($185m), a 23% increase year-over-year, and underlying EBITDA of A$134.5m ($101m), a 29% increase year-over-year. Therefore, the company’s EBITDA margin was 54.7% in FY21, a 2.6% improvement year-over-year.
FY22 (Twelve Months Ending June 30, 2022) Guidance
For FY22, NEXTDC provides guidance for revenue of A$285m to A$295m (~$207m to ~$214m). Additionally, the company forecasts underlying EBITDA of A$160m to A$165m (~$116m to ~$120m). Finally, the mid-point of NEXTDC’s FY22 guidance implies a year-over-year increase of 18% and 21% in revenue and EBITDA, respectively.
Operational Performance in FY21 – NEXTDC
Portfolio
NEXTDC operates 9 data centers in Australia comprising 95.8 megawatts of power capacity built. Specifically, the company’s facilities are in the major Australian markets of Sydney, Melbourne, Perth, Brisbane, and Canberra. Indeed, 80%+ of NEXTDC’s built capacity resides at its Sydney (S1, S2, S3) and Melbourne (M1, M2, M3) data centers.
During FY21, NEXTDC’s built capacity increased by 17.0 megawatts, which was primarily attributable to expansion capacity built at its Sydney (S2) and Melbourne (M2) facilities.
Utilization
In FY21, NEXTDC’s capacity billed was 65.4 megawatts, equivalent to a rate of 68.3%, compared to 67.0% in FY20, representing a 1.3% improvement. Notably, NEXTDC has 10.1 megawatts of capacity still to move from contracted (75.5 megawatts) to billing (65.4 megawatts).
Unit Economics
NEXTDC’s annualized revenue per sqm was down 3.2%, at A$10.4k in FY21, versus A$10.7k in FY20. Additionally, the company’s annualized revenue per megawatt was down 8.4%, at A$4.0m in FY21, versus A$4.4m in FY20.
Interconnection
NEXTDC added 1.7k net interconnections during FY21, bringing the company’s total interconnections to 14.7k as of June 30, 2021. Interconnection revenue for FY21 was ~A$19m ($14.3m), representing 7.7% of recurring revenue.
Additionally, NEXTDC notes that it has 9.5 average interconnections per customer as of June 30, 2021.
Development Pipeline
NEXTDC has total power planned of 400 megawatts in Australia, which includes facilities that are open, under construction, and where the company has secured full development approval. Indeed, these 400 megawatts exclude the company’s target capacity for Sydney (S4) of ~300 megawatts. Notably, NEXTDC has increased its total power planned by 154 megawatts, equivalent to ~63%, since December 31, 2020.
To fund a portion of this power capacity expansion plan, NEXTDC is budgeting capital expenditures of A$480m to A$540m (~$348m to ~$392m) for FY22.
Sydney and Melbourne – 450 MW Expansions
In late July and mid-August 2021, NEXTDC announced its plans for a new 150-megawatt hyperscale campus in Melbourne, Australia, known as M3, and a new 300-megawatt facility in Sydney, Australia, known as S4.
Assuming a build cost of A$10m per megawatt, NEXTDC’s combined 450-megawatt projects in Sydney and Melbourne represent a total development cost of A$4.5bn ($3.3bn USD).
