Switch, Inc. (NYSE: SWCH) shares fell Tuesday, after reporting a Q4 loss of $67 million, or $2.09 per share. The company posted revenue of $99.3 million, missing analysts’ estimates of $99.6 million.
The Las Vegas-based Switch reported Adjusted EBITDA of $51.1 million, compared to $41.0 million for the same quarter in 2016, an increase of 25%. Adjusted EBITDA margin of 51.4%, compared to 50.0% for the same quarter in 2016, an increase of 140 basis points.
CEO Rob Roy declared, "Switch achieved another year of revenue growth as it continued to expand its presence and grow its customer base, while advancing its role in sustainability.
"With our innovative, patent-protected technology, we believe Switch is highly differentiated, decidedly competitive and unrivaled in our expansion capacity."
Capital expenditures in 2017 totaled $402.6 million as Switch invested in all of its Prime locations. Capital expenditures included $15.3 million for the purchase of additional parcels of land in Las Vegas and in Atlanta totaling 22 acres, and the acceleration of $14.8 million in purchases to take advantage of vendor discounts, which was not in our previous guidance.
Maintenance capital expenditure was $4.6 million in 2017, compared to $5.1 million in 2016.
Last December, Switch announced that Switch's Board of Directors declared a cash dividend of $0.014 per share of Switch's Class A common stock for the fourth quarter of 2017.
Shares in Switch tumbled $2.48, or 15.6%, to $13.37 Tuesday noon.
