Iron Mountain misses third-quarter revenue estimates on tighter tech spending

Iron Mountain

02/11/2023 12:03

Nov 2(Reuters) - Iron Mountain  IRM.N  missed
third-quarter revenue expectations on Thursday as businesses
reined in tech spending due to high interest rates and economic
uncertainty.
    Peers of the company, including Digital Realty  DLR.N  and
Equinix  EQIX.O , trimmed their revenue projections for the
year, highlighting weakness in demand for some cloud-based
infrastructure such as data storage.
    The Boston, Massachusetts-based company posted a
third-quarter revenue of $1.39 billion, compared with estimates
of $1.41 billion, according to LSEG data.
    Iron Mountain also announced that it will buy electronic
recycling company Regency Technologies for an initial purchase
price of $200 million, with $125 million to be paid when the
deal closes and the remainder in 2025.
    The company looks to improve foothold in the IT asset
remarketing and recycling space with the acquisition.
    Adjusted funds from operations, which indicates cash flow,
rose to 99 cents per share in the quarter ended Sep. 30, from 98
cents per share a year earlier.
    Adjusted profit in the third quarter fell to 45 cents per
share from 48 cents per share a year earlier.
    The company reaffirmed its annual revenue growth forecast of
about 9%, compared with market expectation of 8.7%.

 (Reporting by Harshita Mary Varghese; Editing by Mrigank
Dhaniwala)
 ((HarshitaMary.Varghese@thomsonreuters.com;))