Service, Data Center Revenue Drive Iron Mountain's Q2 Earnings Beat, Hiked FY21 Outlook

Iron Mountain Inc IRM reported second-quarter FY21 revenue growth of 14% year-on-year to $1.12 billion, beating the analyst consensus of $1.09 billion.
Storage Rental Revenue grew 6.1% Y/Y to $718.3 million, and Service Revenue increased 31.5% Y/Y to $401.5 million. Global Data Center business revenue increased 15.3% Y/Y.
The adjusted EBITDA rose 12.8% Y/Y to $405.6 million driven by strength in Service revenue, benefits from Project Summit, and the flow-through from revenue management. The adjusted EBITDA margin contracted 40 bps to 36.2%.
Adjusted EPS of $0.38 beat the analyst consensus of $0.35. AFFO per share was $0.85.
Iron Mountain has executed 12.6 megawatts of new and expansion leasing. It is increasing its outlook for full-year data center leasing to over 30 megawatts from the previous guidance of 25 - 30 megawatts.
Iron Mountain held $315.9 million in cash and equivalents.
The board declared a Q3 cash dividend of $0.6185 per share.
Outlook: Iron Mountain raised FY21 revenue guidance from $4.365 billion- $4.515 billion to $4.415 billion- $4.515 billion versus the analyst consensus of $4.42 billion.
The company raised the AFFO per share outlook from $3.28 - $3.45 to $3.33 - $3.45.
Price action: IRM shares traded higher by 1.78% at $44.10 premarket on the last check Thursday.

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