Global technology company Switch Inc. announced its second quarter financial results that revealed record results.
“Switch has introduced a one of a kind holistic hybrid cloud solution that for the first time allows companies to move larger and more mission critical technology environments to our differentiated cloud campus locations. After being introduced to our new product enablement tools, enterprise companies are taking the time to reimagine and reengineer their current use of software, hardware and connectivity as they get ready to embrace the hybrid cloud for their primary mission critical deployments. These companies are for the first time choosing a future legacy location outside of their own data centers for the strategic placement of their enterprise business intelligence engines that will be so important to every business over the next two decades,” said CEO Rob Roy.
Roy added, “Due to this new holistic approach to hybrid cloud solutions, the closing cycles on these projects have extended the sales timelines. Our sales pipeline is the largest it has been in our company’s history and we are extremely confident that we are on the right path to utilizing our industry’s only Tier 5 platinum data center ecosystems to deliver long term customer and shareholder value.”
For the quarter, the company posted record quarterly revenue of $102.2 million, representing a growth of 11%. In the year ago period this figure was $92.1 million.
Operating income for the quarter was $15.8 million. In the year ago quarter this number was $23.5 million, representing a decrease of 33%.
Net income of $9.5 million was compared to $15.0 million for the same quarter in 2017. Adjusted EBITDA of $50.3 million was in comparison to $46.8 million for the same quarter in 2017.
“The logistics and timing required for customer implementation of our holistic cloud solution impacted our expectations for the year,” said President Thomas Morton. “We firmly believe in the long-term growth prospects of our business, and that the unique and market defining solutions available only at the Switch PRIME campus ecosystems will establish our organization as the recognized pillar of enterprise hybrid cloud.”
“We are pleased that our Board of Directors approved a $150 million Common Unit repurchase program, which underscores the Company’s commitment to shareholder value creation,” said Gabe Nacht, the CFO of the company. “With a strong balance sheet and long-term net leverage target of 3 to 4 times annualized Adjusted EBITDA, Switch can commit to a Common Unit repurchase program while we maintain the appropriate level of investment in future growth.”
Switch has developed more than 500 issued and pending patent claims covering data center designs that manifested into their world-renowned data centers and their technology solution ecosystems.