Iron Mountain posts higher fourth-quarter FFO on resilient data storage demand (updated)

Iron Mountain

22/02/2024 16:23

(Adds share movement in paragraph 2, CEO comment in paragraph
3)
       Feb 22 (Reuters) - Iron Mountain  IRM.N  posted a rise
in its funds from operations (FFO) for the fourth quarter on
Thursday, driven by resilient demand for its data storage and
records business.
    Shares of the Boston, Massachusetts-based real estate
investment trust, which offers cloud data management services
and leases its data centers, rose more than 5% in morning trade.
    "We continue to be pleased with the growth trajectory of our
data center business, which is only accelerated with the rapid
adoption of AI-enabled services," CEO William Meaney said on a
post-earnings call.
    The company's adjusted FFO, which indicates cash flow, rose
9% over the year earlier to $1.11 per share for the quarter
ended Dec. 31.
    Iron Mountain, which counts cloud services providers Oracle
 ORCL.N  and Akamai Technologies  AKAM.O  among its clients,
posted adjusted profit of 52 cents per share. Analysts on
average estimated 45 cents, according to LSEG data.
    The company's storage rental revenue rose 13% to $871
million.
    It posted revenue of $1.42 billion for the fourth quarter,
compared with analysts' estimate of $1.45 billion.
    Iron Mountain expects its full-year 2024 revenue to be
between $6.00 billion and $6.15 billion, the midpoint of which
is slightly below analysts' average estimate of $6.09 billion.

 (Reporting by Priyanka.G in Bengaluru; Editing by Shilpi
Majumdar)
 ((Priyanka.G@thomsonreuters.com))