Data center colocation provider Switch, (NYSE: SWCH), a company headquartered in Las Vegas, Nevada, and founded by its CEO Rob Roy, has announced financial results for the quarter ended March 31, 2020. According to Mr. Roy, the data center industry has not suffered the extent of negative impacts that other industries have endured in the midst of the COVID-19 pandemic.
Switch recorded total revenue of $128.1 million in Q1 2020, compared to $107.4 million for the same quarter in 2019, an increase of 19%. Switch did report a net loss of $3.5 million though, compared to net income of $3.8 million for the same quarter in 2019. Net loss in the first quarter of 2020 includes the impact of a $17.6 million loss on interest rate swaps, compared to a $5.0 million loss in the prior year quarter. Switch recorded an income from operations of $21.0 million, an increase of 34% compared to $15.7 million for the year ago quarter.
“Switch had a strong start to 2020 despite the unprecedented circumstances faced by the business community and individuals worldwide,” said Thomas Morton, President of Switch. “We continue to closely monitor developments surrounding the COVID-19 pandemic and remain in close contact with state and local authorities in each of our Prime campus locations to ensure the safety of our employees, customers, and suppliers. Despite an uncertain economic backdrop, each day we remain focused on delivering best of breed technology solutions to clients to enable differentiated long-term growth.”
2020 Full Year Guidance
Switch is re-affirming its full year 2020 guidance, as follows: Revenue in the range of $507 million to $521 million. Adjusted EBITDA in the range of $251 million to $261 million. Capital expenditures, excluding land acquisitions, in the range of $290 million to $340 million.
Switch recently executed a multi-year colocation and network services agreement with a Fortune 1000 financial institution totaling $16 million in contract value. It also signed a three-year renewal and expansion order totaling $7 million in contract value with a leading cloud security firm. Next to that, Switch signed a six-year renewal with a Fortune 100 multinational bank, maintaining Switch’s long-tenured relationship with the firm as its preferred mission-critical colocation provider.
“Switch’s first quarter 2020 financial results demonstrate the resiliency of our business model in the midst of an extremely challenging economic environment,” said Rob Roy, CEO, chairman, and founder of Switch. “Importantly, the data center industry has not suffered the extent of negative impacts that other industries have endured in the midst of the COVID-19 pandemic. We continue to support our customers and the local communities in which we do business during this challenging time. In addition, we believe that Switch’s business will remain stable throughout this time of uncertainty. We continue our relentless drive to innovate, and to empower customers with technology solutions that will help them adapt and prepare for a shifting business landscape.”