In This Article:
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Full-Year Revenue: Increased 12% to $6.1 billion.
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Full-Year Adjusted EBITDA: Grew 14% to $2.2 billion.
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Full-Year AFFO: Increased 11% to $1.3 billion.
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Q4 Revenue: Increased 11% to $1.58 billion.
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Q4 Adjusted EBITDA: Grew 15% to $605 million.
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Q4 AFFO: Increased 12% to $368 million.
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Data Center Revenue: Grew 25% to $620 million for the full year.
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Asset Life Cycle Management Revenue: Increased 119% in 2024.
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Dividend Increase: Quarterly dividend increased by 10%.
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2025 Revenue Guidance: Expected to be $6.65 billion to $6.8 billion.
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2025 Adjusted EBITDA Guidance: Expected to be $2.475 billion to $2.525 billion.
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2025 AFFO Guidance: Expected to be $1.45 billion to $1.48 billion.
Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Iron Mountain Inc (NYSE:IRM) achieved record performance in 2024 with double-digit growth in revenue, adjusted EBITDA, and AFFO.
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The company's growth businesses, including digital solutions, data centers, and asset life cycle management, are collectively growing at a CAGR greater than 20%.
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Iron Mountain Inc (NYSE:IRM) increased its quarterly dividend by 10%, reflecting strong confidence in its financial outlook.
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The data center business saw a 25% revenue increase in 2024, with strong leasing activity and a robust pipeline for 2025.
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The asset life cycle management business experienced a 119% revenue increase, driven by organic growth and successful acquisitions.
Negative Points
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Iron Mountain Inc (NYSE:IRM) faced a sequential decline in organic storage revenues due to FX headwinds and strategic shifts in the consumer storage business.
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The company passed on a significant data center leasing opportunity in Q4 2024 due to pricing concerns, impacting short-term leasing numbers.
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Churn in the data center business was higher than usual in Q4 2024 due to long-term clients moving to cloud solutions.
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There are concerns about potential impacts on the asset life cycle management business if the US implements tighter restrictions on exporting IT hardware to China.
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The company is facing challenges with permitting and access to power for its data center land bank, which could affect future development timelines.
Q & A Highlights
Q: Can you elaborate on how organic growth in the ALM business in 4Q was split between volumes and component prices and what broader trends you're seeing with both? A: Barry Hytinen, CFO, explained that the growth was largely volume-driven, particularly in the enterprise segment, which is becoming more service-oriented. Component prices in data center decommissioning were generally flat, and the company is not planning for significant changes in component pricing for 2025.