• Full-Year Revenue: Increased 12% to $6.1 billion.
• Full-Year Adjusted EBITDA: Grew 14% to $2.2 billion.
• Full-Year AFFO: Increased 11% to $1.3 billion.
• Q4 Revenue: Increased 11% to $1.58 billion.
• Q4 Adjusted EBITDA: Grew 15% to $605 million.
• Q4 AFFO: Increased 12% to $368 million.
• Data Center Revenue: Grew 25% to $620 million for the full year.
• Asset Life Cycle Management Revenue: Increased 119% in 2024.
• Dividend Increase: Quarterly dividend increased by 10%.
• 2025 Revenue Guidance: Expected to be $6.65 billion to $6.8 billion.
• 2025 Adjusted EBITDA Guidance: Expected to be $2.475 billion to $2.525 billion.
• 2025 AFFO Guidance: Expected to be $1.45 billion to $1.48 billion.

• Warning! GuruFocus has detected 8 Warning Signs with IRM.

Release Date: February 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Iron Mountain Inc (NYSE:IRM) achieved record performance in 2024 with double-digit growth in revenue, adjusted EBITDA, and AFFO.
• The company's growth businesses, including digital solutions, data centers, and asset life cycle management, are collectively growing at a CAGR greater than 20%.
• Iron Mountain Inc (NYSE:IRM) increased its quarterly dividend by 10%, reflecting strong confidence in its financial outlook.
• The data center business saw a 25% revenue increase in 2024, with strong leasing activity and a robust pipeline for 2025.
• The asset life cycle management business experienced a 119% revenue increase, driven by organic growth and successful acquisitions.

Negative Points

• Iron Mountain Inc (NYSE:IRM) faced a sequential decline in organic storage revenues due to FX headwinds and strategic shifts in the consumer storage business.
• The company passed on a significant data center leasing opportunity in Q4 2024 due to pricing concerns, impacting short-term leasing numbers.
• Churn in the data center business was higher than usual in Q4 2024 due to long-term clients moving to cloud solutions.
• There are concerns about potential impacts on the asset life cycle management business if the US implements tighter restrictions on exporting IT hardware to China.
• The company is facing challenges with permitting and access to power for its data center land bank, which could affect future development timelines.

Q & A Highlights

Q: Can you elaborate on how organic growth in the ALM business in 4Q was split between volumes and component prices and what broader trends you're seeing with both? A: Barry Hytinen, CFO, explained that the growth was largely volume-driven, particularly in the enterprise segment, which is becoming more service-oriented. Component prices in data center decommissioning were generally flat, and the company is not planning for significant changes in component pricing for 2025.

Q: What's your expectation for RIM volumes in Q1 and the balance of 2025? And what should we expect for RIM pricing growth this year? A: William Meaney, CEO, stated that RIM volumes are expected to be flat to slightly up, with most growth coming from revenue management and pricing. Barry Hytinen added that revenue management actions will be more consistent this year, supporting mid- to upper single-digit revenue growth.

Q: Can you discuss any longer-term implications from the DeepSeek announcement and its impact on the data centers? A: William Meaney noted that despite the noise from the DeepSeek announcement, there has been no reduction in CapEx expenditure from customers. The company remains confident in its pipeline and leasing activity, maintaining a disciplined approach to pricing and returns.

Q: If the US were to implement tighter restrictions on exporting IT hardware to China, how would that affect the ALM business? A: William Meaney explained that most ALM business components sold into China are multi-generation old and not subject to export restrictions. The company is diversifying to be less reliant on China and focusing on enterprise business, which includes reintroducing components back into OEM supply chains.

Q: Can you explain the factors that led to revenue coming in slightly lower than expected in the quarter? A: Barry Hytinen attributed the lower revenue to FX headwinds and intentional focus on profitability in the consumer storage business. The company is emphasizing profitable segments and operational efficiencies, which contributed to improved margins.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.