Good afternoon and welcome to the Equinix Conference Call. All lines will be able to listen-only until we open for questions. Also, today's conference is being recorded. If anyone have objections, please disconnect at this time. I'd now like to turn the call over to Katrina Rymill, Vice President of Investor Relations. You may begin.

Good afternoon, and welcome to today's conference call. Before we get started, I'd like to remind everyone that some of the statements that we'll be making today are forward-looking in nature and involve risks and uncertainties. Actual results may vary significantly from those statements and may be affected by the risks we identified in today's press release and those identified in our filings with the SEC, including our most recent Form 10-Q filed on July 31, 2015. Equinix assumes no obligation and does not intend to update or comment on forward-looking statements made on this call. In addition, in light of Regulation Fair Disclosure, it's Equinix's policy not to comment on its financial guidance during the quarter, unless it is done through an explicit public disclosure. In addition, we'll provide non-GAAP measures on today's conference call. We provide a reconciliation of those measures to the most directly comparable GAAP measures and a list of the reasons why the company uses these measures in today's press release on the Equinix Investor Relations page at www.equinix.com. We would also like to remind you that we post important information about Equinix on the IR page of our website. We encourage you to check our website regularly for the most current available information. With us today are Steve Smith, Equinix's CEO and President; Keith Taylor, Chief Financial Officer; and Charles Meyers, Chief Operating Officer. Following our prepared remarks, we'll be taking questions from sell-side analysts. In the interest of wrapping this call within an hour, we'd like to ask these analysts to limit any follow-on questions to just one. At this time, I'll turn the call over to Steve. Stephen M. Smith - President, Chief Executive Officer & Director: Okay. Thank you, Katrina, and good afternoon and welcome to our third quarter earnings call.…

Great. Thanks, Steve. Good afternoon to everyone on the call. We had another great quarter and the value of our platform as reflected in the health of our key operating metrics continues to rise. We had once again strong gross and net bookings and our MRR churn remains at the lower end of our guidance range. Consistent with the last four quarters, we had positive net pricing actions, and we recorded the highest increase in net cabinets billing in our history, adding 4,700 incremental billing cabinets in Q3, more than double the average quarterly rate in 2014. Our MRR per cabinet on an FX neutral basis remained firm. We're delighted with the interconnection activity in the quarter, and we added significant new cross-connects and exchange ports. Interconnection revenues as a percent of our recurring revenues continue to pick up across each of our regions. So, based on the strength of our gross and net bookings activity, as well as the continued momentum across our business, we are once again raising our guidance expectations despite the continued strengthening of the U.S. dollar for each of revenues, EBITDA and AFFO for Q4 and 2015. And as we finish the year on this strong note, this clearly positions us for a solid start to 2016. Our updated revenue guidance now implies a normalized and constant currency growth rate of over 16% compared to the prior year, the highest annual growth we have seen since 2012. Now moving to some comments on the acquisitions. We continue to progress with both our Telecity and Bit-isle transactions. The Bit-isle share tender period closed this past Monday and we are happy to note that 97% of the Bit-isle shares were tendered. We expect to acquire the remaining shares of Bit-isle by the end of the year. The…

Thank you. Our first question speaker is from Mr. David Barden from Bank of America. Your line is open sir.

Hey, guys. Thanks for taking the questions. Appreciate it. Good quarter. I guess, first question, I guess, Steve, would be, with respect to some of the comments on the Telecity deal and the November 13 decision that we're expecting from the EU. Obviously, there was a big filing about commitments that you guys have made with respect to closing the transaction and you spoke about some market testing of these commitments. Could you elaborate a little bit on what they are and if they affect the economics of the transaction in any material way? And then I guess, second, Keith, just on the hedge for the European market, obviously, it was a decision that you took at the beginning of this year. It's paid off to be relatively aggressive hedging the EU currency blocks. Are you planning to continue in 2016 a fairly aggressive static hedge or are you going to be a little bit more dynamic in how you think about currencies and where you think the incremental moves are going to go and how aggressive are you planning on being with respect to the hedges in the European market? Thanks. Stephen M. Smith - President, Chief Executive Officer & Director: Okay, David. Thanks. Let me start with the first one, and Keith, we'll hand to you for the second piece. So, David, we're somewhat limited in what we can provide color on around the Telecity situation, but let me tell you what we can share with everybody. So number one, we are moving forward with the EU Commission and targeting a regulatory clearance in Phase 1. We've had, as you would expect, ongoing dialogue with the Commission over the past several weeks and have had very good interaction. Based on those discussions, we have proceeded with a formal offer of proposed commitments as noted in our recent 8-K. So for a variety of reasons, we cannot comment much further on the nature of those commitments, but we remain optimistic about a Phase 1 clearance of this transaction and a first half 2016 close, that is in line with our previous guidance. And we do expect a response from the Commission by November 13 and then we'll update you accordingly after that point.

I feel like that's already written on a piece of paper in front of you, Steve. Stephen M. Smith - President, Chief Executive Officer & Director: Yeah. Well, we're somewhat limited, David, as you might expect on sharing any color on the activity until we get to the November 13 timeframe, so they have a 10-day working day period to do the market test, and that's the period we're in now.

Okay.

David, let me just move forward then just on your questions around the hedge. First and foremost, the piece that's affecting the AFFO, which was not in our prior guidance and again, it can fluctuate quarter-to-quarter, that relates to us hedging out our net investment exposure for the acquisition of the Telecity asset. And so, as you can appreciate, that will continue to fluctuate until we close. So if you will – the net – the loss that we experienced this quarter, the offsetting impact sits inside – will sit inside purchase accounting when we actually close the transaction. If I was to actually – if I was actually to use the same exchange rates – if I use the spot exchange rate today for effectively the transaction, that $11.6 million, sort of loss would turn into a gain, if it was this quarter. So, it gives you a sense of the volatility because it's almost a $1 billion hedge. As it relates to our ongoing monitory hedges and our balance sheet hedges as well as the embedded derivatives that we do, as a company, we're still going to continue to hedge where we can somewhat aggressively. And why we want to do that, we think there will continue to be strength in the U.S. dollar. But as you'll recall, we hedge out now anywhere from six to eight quarters. We feather them in, and of course effectively it's smoothing out the impact of how the currencies are going to move. In this case, we've been clearly a net beneficiary of our hedging through fiscal year. Despite where currencies have gone, we've been a net beneficiary of hedging. And so, we want to continue to use that where appropriate. There's some markets that we will not hedge. As we've said, it's just too darn expensive; Brazil is that one example. And again, the majority of our hedges, anytime you think of our European hedge, it's already going through our results. When you think about – it's going through our result, pardon me, it's going through – and we get proper hedge accounting. When we go to Asia, all of that stuff we report basically, we report as for the gains and losses in the P&L below the line. So, we'll try and be really transparent over the next little while on our hedging positions. We're certainly going to be very clear as we move to close our planned transactions, not only because of the influence that new currencies will have or the increase in currencies will have exposed to as it relates to yen, sterling and euro. But most of that will take place as or when we close the transactions for Telecity and Bit-isle.

All right. Awesome. Thanks, thanks, guys.

Thank you.

Our next question is from Michael Rollins from Citi. Your line is open.

Hi. Thanks for taking the question. Was wondering if you kind of look back over the course of the year, if I remember correctly, your original constant currency revenue guidance was around 12% for 2015. And you mentioned in this deck that it's around 16% today. I'm wondering if you can give us a bridge to what the sources of outperformance were, regionally – maybe by vertical? And at the same time, are you seeing some segments underperform where you thought they would be? Thanks.

Let me take one piece of it, Michael, and then I'm going to defer – I'm going to look at Charles and Steve for some other color. So, I want to make sure that we're clear with everybody on what we did. When we started out the year, as you will recall, we said that we could do greater than and clearly – so, when you look at our internal plan relative to what we performed, we felt we could do a bit better than the guidance that we delivered because those are greater than – that all said, as we progressed through the year, there's a number of things that worked very much in our benefit. Number one, we are booking a little bit more in the gross line than we originally anticipated, so that's net positive. Second piece is, churn is not as great as we anticipated, and you've seen that in each of our actuals relative to our quarterly guide, so we get the benefit of churn. Three, our net pricing actions are positive. And again, as I said, we've had steady quarterly flow of net pricing actions, and that's – that does wonders – wonders for the revenue line. Four, we've done more, more than we originally anticipated, on the non-recurring line in this quarter, sorry – pardon me – Q3, as we guide forward for Q4, we're going to do roughly $40 million on the non-recurring line, so it gives you a sense that that was – that was a lot higher than we originally anticipated to that – it's probably to the tune of $30 million odd. And then the fifth thing I'll tell you is, the sales leadership has done a real good job of better managing the booking and billing activity through…

Yeah. Maybe a little more color again. One, I think regionally, we've had strength across all three markets obviously with Europe and Asia in particular growing faster, but really very strong growth in the Americas given the overall size of the business. As Steve said, there are strong bookings across the board also as I think I mentioned in the last call, cloud and enterprise in particular are over-indexing meaningfully in bookings, meaning that comparing our percentage of bookings coming from those segments to the percentage of the installed base, those are really growing faster. But that's not – that over-indexing isn't caused by weakness in the others, it's really caused by strength in that particular ecosystem taking shape. And then the other thing I guess I'd point to as you can see, interconnection, we just said is a 21% grower on a constant currency basis compared to 15% or 16% overall. And so again, interconnection is also over-indexing significantly, which obviously has a materially positive impact to the business. And if you look at it and you unpack that a bit further and peel the onion back, it's really strong across our ecosystems. So, what I would say is in network, for example, we're actually seeing good strength on a net cross-connect basis, driven in part by really some of the grooming activity that occurred over the last couple of years subsiding and now actually networking – network providers and carriers really looking to add to their service portfolio in a variety of ways, which is increasing their appetite for interconnection. And now, also cloud is our fastest growing sort of end destination for interconnection, which I think is further evidence that that ecosystem is really starting to take shape. And that the secular trends are just extraordinary. If you look at the momentum in our Internet Exchange in terms of the port volumes and the – and how those translate into traffic growth, it just continues to say that mobile Big Data, Big Data and analytics, social media, et cetera and how people are really architecting to deliver greater levels of application performance in a hybrid multi-cloud world, really all adding across all the verticals. So I don't think there is any particular segment that has underperformed. I think there are some that are evolving, how people use us in the content and digital media sector has changed. One of the things, and it's been several years now, where some of those larger players moved to these multi-tiered architectures, which has really been a net benefit for us, has opened up capacity that we resold at higher rates and really they are using us more for content delivery, private CDN type implementations, hubbing applications and interaction between the cloud and the content and digital media world particularly in the advertising segment. So, really strong performance across the board.

Thank you very much. Stephen M. Smith - President, Chief Executive Officer & Director: Sure.

Our next question is from Mr. Jonathan Schildkraut from Evercore. Your line is open.

Great. Thank you for taking the questions. I was wondering, Steve, if you could spend a little bit more time talking about what's happening with these enterprises that are coming in to plug into the hybrid and multi-cloud environments. On average, maybe how many different clouds are plugging into, how involved is Nimbo or your other sort of tech professionals in helping these people onboard? And then, I'm wondering if there's any relationship between what we're seeing in terms of the enterprises taking advantage of that ecosystem and some of the net pricing actions on the positive side that you guys have been talking to? And in fact, if there's any additional color in terms of breaking down those net positive pricing actions, that'd be great too. Thank you. Stephen M. Smith - President, Chief Executive Officer & Director: Sure. Why don't I start out here and then you guys can add around the edges? So with the enterprises, the primary draw with us right now, Jonathan, as most people on this phone know are with the large IaaS cloud providers, it's AWS, Microsoft, with Azure and the work we're doing with Office 365, Google, IBM, SoftLayer. And then there's a variety of other providers, SaaS and other infrastructure providers. But as you all know, the primary uptick today, as many of those enterprises are connecting to the larger IaaS providers, because that's where – we're making that really easy for them to do and it's highly secure and it's helping performance of applications, it's helping latency and all the things we've been talking about for years. So, it is the draw. The sales teams are setting a hook, as you've heard us talk about, with our network – with our Performance Hub offering. We very quickly transitioned into how…

Yeah. I would add I guess a few things. One, I'd point you to slide five in the deck around those four use cases that we're really starting to see take hold and importantly the bottom of that page which talks about the sort of quantifiable proof points of how enterprise customers in particular are creating value by using platform Equinix to implement a hybrid cloud and multi-cloud kind of strategy. It is definitely a longer and more complex sales cycle. We are clearly prosecuting the market from the top-down, meaning sort of targeting the top of the enterprise pyramid and as I said, probably more sophisticated enterprise buyers. Nimbo is having an impact. The interesting thing is I would say that there is virtually nobody at the top of that enterprise pyramid that we're engaged with, that is not already using or considering to use of either AWS or Azure or Google Cloud as a fundamental part of their hybrid cloud architecture. I mean, our Nimbo team is very well-positioned to help them through how to migrate applications into a hybrid cloud environment. Our solution architects, which we have now – we expanded significantly over the last couple of years. This quarter was actually the largest – we track the percentage of deals that they impact in our bookings and this is the largest quarter ever in terms of percentage of deals impacted and directly touched by that group. So definitely having an impact, still early innings I think in the overall evolution, but at least my experience in terms of how enterprise technology markets proceed, I think we're very much seeing this sort of early stage of lighthouse wins, which then begins to translate to the mid-market taking hold, particularly through channel, which also is proceeding well. So continue to be excited about that, but page five is I think a great place to look in terms of what's really attracting these customers.

Thanks. And did you guys talk about the positive pricing actions and where that's coming from? Stephen M. Smith - President, Chief Executive Officer & Director: Yeah, I think on balance what you're seeing is that we are pretty rigorous about implementing annual price increases into our contracts and because we have I think increased the level of discipline around installations we're taking into the facilities and as we say, right applications – right customer, right applications, right assets, what we're seeing is the churn is mitigating and also the sort of price pressure upon renewal when you're talking about high-value implementations is substantially sort of mitigated. And so, as a result what we were seeing, which is potentially a – that flipped on its head, is really now seeing that the price actions and the price increases really giving us a net benefit versus any kind of pressure on renewals, so. And I think that reflects also in the churn line.

All right. Thanks for taking the questions. Stephen M. Smith - President, Chief Executive Officer & Director: Thanks, Jonathan.

Thank you. Our next question is from Mr. Jonathan Atkin from RBC Capital Markets. Your line is open.

Thanks. So, for Keith, I've got a question regarding slide 13 and the stabilized IBX comparison. I think that's a global slide and I wonder if you can just update us on a regional basis, how the cash-on-cash returns would compare for stabilized IBXs in EMEA versus Asia-Pac versus Americas? And then, kind of the same question for kind of the organic revenue growth that you're seeing across the regions in stabilized assets. And then, the second question is just around the indirect channel and you talked about an increasing portion of the bookings coming from agents and resellers and so forth and I wondered, are you still at the point where you're establishing that network of partners and broadening it or are you focusing more on depth within your existing set of indirect partners? Thank you. Stephen M. Smith - President, Chief Executive Officer & Director: Yeah, Jonathan. Let me take the second one first and then, I'll kick it back to Keith to hit the first one on slide 13. We are definitely expanding the overall scope of the partner program, but I will say is that what we are doing is starting to focus our efforts more on what we believe the really high impact partners are. There's a set of a particularly sort of capable resellers that bring a very complete solution in the cloud space to customers who are looking to use us, again, as a hybrid cloud, sort of multi-cloud hub and we're having real success in terms of working with those partners to penetrate large enterprise customers. But we are selectively looking to expand that reseller base. Probably not a lot of focus on – I think we've got a pretty good set of referral and agent type partners that we're working with and those continue to be a solid source of lead generation for us. But our focus really is on the real value-added resellers and on our partnerships, our evolving partnerships with the technology platform players. So, we've got some nice success in the market with both AWS and Microsoft in terms of sell with type of motion with them. And that's something I think we'll continue to put a lot of energy and in fact we're increasing our field force now to really accelerate the investment in that. And we think there's a lot of upside in that, so continuing to grow, but probably more focused on generating more volume from our productive partners at this stage rather than a focus on more partners.

So, Jonathan, just on your first question as related to where we're seeing the growth across the regions. The 67 stabilized assets, it's broken down and again it's on page – if you look at page 27, 28 and 29 of the deck that we shared with you. We break down where the assets are. I don't actually have the specifics on a region basis on the revenue growth, but let me just give you some broad color. As I said, when you look at the Americas, it's growing roughly 10%, you've got Europe growing roughly 22% year-over-year and then you've got Asia growing 26% year-over-year. You can see where the stabilized assets are and where we're investing. I think it's something that we'll have to – as we think about the question, we'll have to probably respond offline to that specific request. But as Charles alluded to, let me just give you some color in the sense that as we commented on, we're filling up our capacity in a very meaningful way. As we said 4,700 cabinets sold this quarter, our utilization levels are moving up. We can see it across our inventory base. We're looking at our expansion activities. So suffice it to say, we're seeing good growth across the organization, across all three regions and so I'm very excited about where we are. But to give you a specific right now, I don't actually have that at hand and so we'll take that as a to do. Stephen M. Smith - President, Chief Executive Officer & Director: It's a probably a little dangerous speculation, but what I would say is the likelihood is because of the strength of the interconnection business in the Americas and the higher average price point of interconnection on a unit basis, I would guess that you're going to see slightly higher stabilized yield – growth rates in those assets, but again, we'd have to break that down. But we are seeing good momentum also in interconnection in the other two regions. And again, you see continued power uptake in all of those facilities as well, so it's going to be a blend of those things, but I think I would say there is strength across the board.

And then just real quick on Bit-isle, what would be a typical integration timeframe for that size of acquisition from both an IT and organizational perspective? Are we talking months or quarters before we see full integration? Stephen M. Smith - President, Chief Executive Officer & Director: Yeah, it'll take a little bit long. This is Steve, Jonathan. It'll take a little bit longer than a typical integration plan in Japan, just due to the culture and the language barriers, et cetera. There's a fairly sizable team that we're picking up, and there's pretty significant language challenges, but we'll convert the financials, the IT pretty quickly, but we're going to take our time with branding decisions and marketing decisions and go-to-market decisions, and the plan is being built now, but it is going to be a little bit longer than a typical integration just because of those complexities.

Thank you.

Our next question is from Mr. Mike McCormack from Jefferies. Your line is open.

Hey, guys, thanks. Maybe just a quick comment on the combined DLR/Telx, as far as competition goes, any change there? And then I guess secondly on the Asia-Pac margin expansion has been really steady and increasing, your just thoughts on drivers there? And then how high can those margins go in APAC? Stephen M. Smith - President, Chief Executive Officer & Director: Well, why don't I start with the DLR/Telx, just a couple of thoughts and then Charles, you probably have a thought or two you could add, but I think our general belief across the company is that the combination will not change the competitive landscape meaningfully, and I think they understand and I think the market understands that the degree of difficulty to – attempt to – I think the question is getting at, can they replicate what's been going on here for 17 years? And I believe the degree of difficulty to replicate a global at-scale platform that has the consistency of service delivery and full portfolio of services that we built in 17 years is a pretty high bar to attack and huge investment in some fairly unfamiliar areas to get a global retail business up and running. So, I think it's going to help in their Americas business for sure, but there's a lot between the wholesale and retail when you talk about what happens between the executive suite and the assets on the frontlines that really matters, and I think there's a lot of work to be done there and that's where Equinix spends a lot of time. Services, all the stuff you're hearing about today is really our sweet spot and the core difference I think between a retail and a wholesale model.

Yeah. I mean, just same themes I think, but in the end, competition isn't about what we're saying on investor calls or analyst days or anything else, it's about what happens at the customer and it's about – and competition is created. If there is a company that can provide a reasonably comparable solution to a customer requirement and in that regard I've maintained and continue to maintain that the competitive overlap between our businesses and that of DLR even in a post Telx world remains very small. So, digital is a good choice and a very credible provider for companies who have very large footprint requirements that are part of a multi-tiered architecture and we've seen that dynamic play out for several years now. And if customer needs good reliable space and power in large chunks at competitive prices then digital is going to be an effective provider, given their cost of capital and their reach. But if they're looking to architecture, IT infrastructure to improve application performance, reduce network costs, enable hybrid multi-cloud, then they typically need a highly distributed environment, and that requires global reach, broad and deep network and cloud density, and a level of retail scale and delivery capability that we've invested hundreds of millions of dollars in over the years and have 4,000-plus employees delivering globally. So, we feel very good about our ability to be effective with the customer in terms of meeting their needs and that's the critical piece. So, bottom line is, we don't see a ton of competitive overlap between the businesses.

Okay.

So as it relates to your question just on the margin for Asia-Pacific. Clearly, we saw a great result this quarter of 52%, part of the metaphor we're seeing albeit, it might be something that will not continue on an extended period of days or time period is that with the weakening of the Singapore dollar, there's a number of contracts that we have in Singapore that are U.S. dollar denominated and so with your cost in one currency and your revenue in another, that bodes very well when it's going the right direction. We do hedge against that, but the bottom line we're getting some tailwind from that. In addition, there was some one-off utility benefits roughly of $1 million in Singapore and Hong Kong that we were able to achieve this quarter. But I think more fundamentally to your question, Mike is that look the Asia-Pacific region is running – roughly 13% of its revenues are in the form of interconnection. The Americas is roughly 22%. It would not surprise me to see the Asian market continue to move its margins up into the right as it continues to fill its assets. But I don't think you'll get to the same level of the Americas, which is roughly 62% today excluding the corporate overhead cost. And so, we see it moving up towards, I would think the mid-50%s over an extended period of time, just like I would see Europe moving up a little bit to roughly the 50% mark, and then of course the Americas is at the highest level. So as an organization, I think increasing our – sorry, filling up our capacity, looking to bend our cost curve, and run the organization more efficiently, I think it bodes well for our overall targets of continuing to scale and drive margin into the business.

Great. Thanks.

Thank you. Our last question will come from Mr. Simon Flannery from Morgan Stanley. Your line is open. Simon Flannery - Morgan Stanley & Co. LLC: Great. Thanks a lot for fitting me in. I think Keith you said that churn would be at the higher end of the 2% to 2.5% range. Can you just provide a little bit more color around that and is that sort of coming through the quarter or is it coming at the end of the quarter as we think about the guidance that you've given and then perhaps just thinking forward into 2016, should we still think about that 2% to 2.5% range, it's sort of been up and down quite a bit, been good for a few quarters, this is going to be the highest in a little while, some color on that would be great?

Yeah. Simon,, I'd have to say clearly, as we've said in the past, sometimes churn is lumpy and as much as we anticipated churn activity this quarter, we said on an earlier call, there are some deals that are still coming. They're larger than the average, let's put it that way. And so there's one deal where we said in European markets, where a customer was going to relocate to their own data center. We knew we'd have them in one of our facilities for a couple to three years. That time period has ended, and so we're anticipating that move, albeit, it has been delayed. And so I'd tell you it's going to happen at the backend of the quarter. And so, we'll recognize the churn this period. As we look forward, I'd tell you there's no reason for us to come off. At this point our churn metrics for – I'm sorry, our guidance for 2016, I think is very reasonable to assume anywhere between 2% and 2.5%. But we'll fully update you on that on the Q4 call once we have the clarity, but there's nothing that's sitting out there that's of a concern. And so I think an average of somewhere between 2% and 2.5% per quarter is very reasonable to assume in your models. Simon Flannery - Morgan Stanley & Co. LLC: All right. Thank you.

Thank you. That concludes our Q3 call. Thank you for joining us.