But we do see our channel wins as very on par in terms of quality of business and our ability to sell into them. Sometimes even more readily — we can capture incremental wallet share even more readily because of the strength of our channel partners from a relationship perspective inside of those accounts. And so I’d say very much a positive force for us. And as we look at now sort of deepening our channel relationship with key technology partners, we talked about the NetApp offering with NetApp Storage on Metal. Those are great examples. We do have a similar sort of offering with Pure. And so those things are really relevant as customers are saying, hey, we’re really deeply thinking about where to place our data, we have technology opinion about the storage providers we’d like to use, and we really would like to that at Equinix to get proximity and adjacency to the cloud.
And so I think those — that’s a great example for the kind of deals that we’re winning in the channel, and that continues to be an important part of the business.
Frank Louthan: Okay, great. Thank you.
Operator: Our next question comes from Jon Atkin with RBC Capital Markets. You may go ahead.
Jon Atkin: Thanks. So, I was interested in if there’s anything notable to call out that drove the growth in EMEA where things seem to have accelerated a bit versus APAC, which saw a slightly slower growth. And then on pricing, which I think you mentioned in the earlier part of your prepared remarks, where do you see the main levers? Would it be renewal spreads on cabinets or harmonizing cross connects or anything to kind of call out around pricing to think about in 2024? Thanks.
Charles Meyers: Sure. Yes, I mean I think when you adjust for the PPI, I mean, because the EMEA numbers are obviously done on an as-reported basis are driven significantly by PPI. And so there is that we certainly are seeing, I think, good performance across our regions. APAC, I think, is over a multi-quarter period here, a little — has more constraints to deal with. And so from a capacity perspective, and as we’ve talked about Singapore being sort of a prominent example there. But I would also say that in EMEA, I think a more prominent feature for us to continue to be looking at internally. And I realize that there’s not as deep a transparency or granularity in the information ability, but the deal mix in EMEA continues to be extremely favorable.
And the team has done a really great job going from, what I think, was a little more dependency on some of the large footprint business over time and now in a post xScale world, really shunting the really large stuff off xScale and I think weaning away from a dependency on large footprint demand even in the enterprise I think always has the sort of the prospect of greater churn probability over time. And so the deal mix in EMEA has really shaped nicely, I think, over the last couple of years, and I think really kudos to the team on the ground there to make that happen. Then on pricing, I would just say that I think pricing broadly speaking, is very favorable. Part of that is just simply driven by, I think, an understanding from customers that increases in underlying costs are driving a rising price environment across a whole range of things and so that’s one factor.
But then I think that perhaps the more important one for us is, I think, being able to deliver really compelling value for them and being able to articulate that effectively to them. And so in terms of the — where it’s coming from, yes, I do think there’s continued pricing activity on all — across our portfolio, interconnection, space and power, and on our digital services. And then I think that the — and that includes both uplifts on list pricing, and as well as on renewals. And so I think you’re really seeing that show up in terms of — as I just — I tell you, when you look at a dynamic that says okay, if you’re churning cabinets at X and you’re selling new cabinets at 1.6 or 1.65x, that’s a very attractive dynamic. It’s not driven entirely by price because power density is a meaningful part of that.
And then actually, new cabs mature even further as interconnection goes into those over time. And so I think those are some of the dynamics on the pricing front. And I think it’s has been a little hard for people to hold all that in their head and figure out exactly why that you have some of these dynamics in there. But I think you’re seeing it show up in terms of the MRR per cab as well as the overall revenue growth rates and then particularly dropping it to the AFFO per share results.
Jon Atkin: And then lastly, the new logos you mentioned, are there any particular verticals where you’re seeing penetration that’s driving the vertical? And then on the churn side, anything to kind of think about for the coming quarter or year around where you might fall within your typical range for MRR churn? Thanks.
Charles Meyers: You always get full value for your questions, Jon. So, new logos, I would say, the — I think we’re seeing a pretty varied set of — across verticals in terms of — we’re not really seeing a heavy concentration. I think that more — I would say that more, what I would consider, data-centric or data-intensive industries are where we’re seeing that focus on digital transformation and on AI. And so we talked about some of those in terms of transportation, healthcare, et cetera, and we’ve identified a few wins there. But interestingly, things like manufacturing have been tremendously strong for us. Retail has been tremendously strong for us. Financial Services, very strong, very forward-leaning posture on AI, a very forward-leaning posture on cloud, but one that is moderated by sort of compliance, security, distributed infrastructure requirements, et cetera.
And so they continue to be that sort of ideal customer for us that really is using a broad range of infrastructure options but wants to place their data and some of their private infrastructure in proximity to all that. And so we have seen, I think, very strong performance across verticals on new logos. It seems like every earnings report has a different highlight in terms of what we’re talking about on new logos. And then on churn, I think we kind of gave the key highlights there. We are, again, well within our range, a little bit of churn that we are either being proactive about or that we’re being sort of receptive to customers looking to optimize footprints because we believe there’s meaningful upside there. And again, I think an environment that in transparency does have some level of optimization from customers who maybe were buying a little more than they needed at, I think, in the 2021, 2022 timeframe, but I think are really tightening that up to ensure that they’re buying just what they need and then adapting to the multi — the hybrid and multi-cloud architectures.
And so churn is something that I think we have to continue to really keep a close eye on and right now, they’re performing where we would have expected in terms of our churn as a percentage of MR.
Jon Atkin: Thank you.
Operator: Thank you. Our next caller is David Barden with Bank of America. You may go ahead.
David Barden: Hey guys, thanks so much. Two questions, if I could, please. Just Keith, apologies for my voice. Keith, what — I’m trying to kind of understand my takeaways for the 2024 trajectory. You’ve had a stronger-than-expected year-to-date through 3Q and you’re guiding to kind of a weaker-than-expected jumping off point in 4Q into 2024, but then you’re talking about the strong bookings. And so I’m wondering if it’s too easy to read into the fourth quarter and maybe we should be looking at the second half as a jumping off point for first half 2024 rather than the fourth quarter specifically? And then the second question, if I could. Maybe Charles, when you mentioned that your churn is 4K and the new clients are coming in to 547, what does that look like? Is that like 1/10 for every three new 4s? Or is that literally just the directional movement of the new client is 50% more power dense? Thank you.
