Switch Inc (NYSE:SWCH) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 05:00 pm ET


Switch Inc (NYSE:SWCH) Q2 2020 Earnings Conference Call - Final Transcript


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Good day, and welcome to the Switch, Inc. Second Quarter 2020 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note, this event is being recorded.

And I would now like to turn the conference over to Matt Heinz, Vice President of Investor Relations. Please go ahead.

Matt Heinz

Thank you, operator. Good afternoon, and welcome to Switch's Second Quarter 2020 Conference Call. On the call today are Thomas Morton, Switch's President; and Gabe Nacht, Switch's CFO. Today's call may include forward-looking statements, including references to expectations, projections or other characterizations of future events or market conditions. Actual results may differ materially from those expressed in our forward-looking statements, which are subject to certain risks, uncertainties and assumptions. Our statements are made as of today, and we assume no obligation to update our disclosures. We described some of these risks in our SEC filings, specifically our Form 10-K, particularly in the section entitled Risk Factors.

In addition, today's call includes discussion of non-GAAP financial measures, which should not be considered in isolation from or as a substitute for financial information prepared in accordance with GAAP. Please refer to today's press release and supplemental package for further information, including a reconciliation of non-GAAP measures.

Our second quarter 2020 earnings press release has been furnished to the SEC as part of our Form 8-K and is available on our investor website at investors.switch.com.

I will now turn the call over to Switch's President, Thomas Morton.

Thomas Morton

Thank you, Matt, and good afternoon, everyone. Thank you for joining us today for our second quarter 2020 earnings call. Switch continued to execute favorably upon our strategic and financial objectives through the first half of 2020.

Our second quarter financial results reflect sustained momentum and solid demand trends across all of our PRIME Campus locations. Second quarter revenue increased 13% year-over-year to $126.9 million and adjusted EBITDA of $69.1 million represents a 17% year-over-year growth. We continue to track in line with our 2020 operating plan, and our sales pipeline for the second half of 2020 remains robust. As such, we are reaffirming our 2020 financial outlook and guidance.

Importantly, Switch has maintained 100% continuity of our operations for our clients across all of our data centers on all 4 of our PRIME Campus locations throughout the COVID-19 pandemic. We have implemented a comprehensive set of protocols to ensure the health and safety of our data center employees and visitors, including entry questionnaires, contact tracing, hand sanitizing stations in high-traffic areas, no-touch temperature checks and mandatory base coverings.

Meanwhile, our non-data center operation staff has adapted favorably to a remote work environment, for which the mandate has been extended through the end of Q3 2020. Our return to office time line remains dynamic as we continue to closely monitor the COVID-19 case trends and adhere to the state and federal protocols.

We continue to experience favorable customer expansion trends toward our newer PRIMEs, as evidenced by a 54% year-over-year increase in multi campus revenue