DLR - Equinix Affirms Financial Reporting Accuracy After Independent Review

2024-05-10 05:31:38 ET

Summary

• EQIX addresses allegations of accounting manipulation and financial fraud raised by Hindenburg Research.
• The company's Audit Committee concludes that Equinix's financial reporting has been accurate, and its accounting practices are appropriate.
• Hindenburg's allegations included accounting manipulation, overselling power, and disruption of Equinix's core business by hyperscalers.
• We add some research to prove that the Hindenburg Research report lacked originality and accuracy.

On May 8, 2024, Equinix ( EQIX ) released Q1 24 results, and, more importantly, addressed the Hindenburg Research short seller report, that was published on March 20, 2024:

Equinix announced that the Audit Committee of the Company’s Board of Directors conducted and has substantially completed a previously announced independent investigation, with the assistance of independent third-party professional advisors.

Based on the findings of the independent investigation, the Audit Committee has concluded that Equinix’s financial reporting has been accurate, and that the application of its accounting practices has resulted in an appropriate representation of its operating performance.

As part of this assessment, the Audit Committee did not identify any accounting inconsistencies or errors requiring an adjustment to, or restatement of, previously issued financial statements or non-GAAP measures.

edited for clarity

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