Iron Mountain tops revenue estimates on steady data center demand

Iron Mountain

03/08/2023 12:41

Aug 3 (Reuters) - Iron Mountain  IRM.N  narrowly beat
expectations for second-quarter revenue on Thursday, helped by
steady demand for its data centers and IT management service.
    The results follow positive earnings from peer Digital
Realty  DLR.N  and show that spending on data centers has
remained resilient even in an uncertain economy as more
businesses move to the cloud.
    Iron Mountain posted a record revenue of $1.36 billion for
the June quarter, compared with Wall Street estimates of $1.35
billion, according to Refinitiv data.
    Its adjusted funds from operations, a key measure of cash
flow, rose to 94 cents per share, from 93 cents per share a year
earlier.
    Iron Mountain reiterated its annual forecasts.
    "The resilience of our business model and the success of
Project Matterhorn are fueling our sustained growth trajectory,"
said Chief Executive Officer William Meaney.
    The company last year unveiled a plan, called Project
Matterhorn, to increase its annual revenue to more than $7
billion by 2026 from $5.10 billion in 2022 by attracting more
business for its data centers and IT management service.
    Iron Mountain's shares were down 1.6% in low volumes on
Thursday. They have risen by more than a fourth so far this
year.

 (Reporting by Aditya Soni; Editing by Shounak Dasgupta)
 ((Aditya.Soni@thomsonreuters.com; +91 80 6749 1130))