Switch Inc (NYSE:SWCH) reported upbeat earnings for its fourth quarter, while sales missed estimates. The company issued weak full-year 2019 sales forecast.
The Las Vegas-based company, the technology infrastructure corporation headquartered in Las Vegas, Nevada is built on the intelligent and sustainable growth of the internet.
Total revenue of $405.9 million, an increase of 7% compared to $378.3 million in 2017.
Operating income of $54.7 million, compared to $18.8 million in 2017, which included the impact of $71.3 million in non-recurring equity-based compensation expense resulting from the accelerated vesting of certain incentive units of Switch, Ltd. and related awards granted under Switch's 2017 Incentive Award Plan in connection with Switch's initial public offering
Net income of $29.3 million, compared to a loss of $8.6 million during 2017, which included the impact of $71.3 million in non-recurring equity-based compensation expense previously discussed.
According to CEO Rob Roy, "Switch continues to execute on its strategic plan to cultivate hyperscale technology environments across its Primes, which represent the most resilient and technologically advanced colocation facilities in the industry.
"In 2019, we remain focused on supporting the continued growth of Switch's Enterprise Elite Hybrid Cloud Ecosystems, including both Fortune 1000 enterprise and leading cloud service provider deployments."
In terms of guidance, Switch foresees revenue in the range of $436 million to $445 million, representing 8.5% growth at the midpoint.
Adjusted EBITDA in the range of $217 million to $223 million, representing a 50% EBITDA margin at the midpoint. Capital expenditures in the range of $210 million to $260 million.
Shares gained 27 cents, or 2.9%, to $9.58
