Welcome to 2024, a year that we expect to be a landmark in the history of Flexential. Reflecting on our transformative journey, it's clear that the blend of resilience, innovation, and excellence exhibited by our team has not only defined our past year but has also paved the way for a future of extraordinary possibilities. As we step into this new era, Flexential stands on the cusp of unprecedented growth and breakthrough innovation.
A year of strategic expansion, innovation, and growth
In 2023, our FlexAnywhere™ Platform played a pivotal role in unifying our efforts and driving us toward exceeding our ambitious growth goals. But this year was not just about growth; it was about strategic coherence and alignment across the business. Every step we took was meticulously planned to ensure it reinforced our overall direction.
A significant part of our strategy involved the expansion of our data centers, where we added over 50 MW of capacity in key locations such as Portland, Denver, Las Vegas, Atlanta, Tampa, and Dallas and are set to deliver an additional 72 MW in the coming months. Our innovative efforts in interconnection—Flexential was the first to market with IX Mesh Layer 3 and 40G IP Bandwidth have laid the foundation for future modernization, further strengthening our value proposition for our customers. An additional significant innovation was the establishment of another major international communication subsea cable link connecting U.S. to Asia, our 3rd direct landing in the Hillsboro campus, enhancing our prominent role in global connectivity.
Our focus on innovation and growth is further exemplified by advances in Flexential cloud technology. Embarking on the largest, most complex, multi-year initiative to consolidate multiple disparate legacy cloud platforms onto our next-generation cloud platform signifies our continued investment and commitment to enabling customers’ hybrid IT journeys.
Internally, our organization's transformation has been remarkable, centered around a single Platform Services Organization to foster a culture of unity and focus. Our people have been the cornerstone of this transformation, with engagement levels soaring above the national average, reflecting a workforce that is not just skilled but passionately committed. Flexential enhanced its flexible work approach, emphasizing both remote and in-person collaboration, and we held multiple community service events to support and engage with local communities. A new leadership development program was introduced, along with professional coaching opportunities for top-tier executives.
The impact Flexential has made is profound, not just through our innovative service offering accomplishments or through the strong culture we’ve built but in our financial performance. In 2023, we surpassed our booking targets for the year achieving 124% of plan, significantly increased new logo sales, up nearly 200% YoY, and we added over 200 customers to our roster. 2023 revenue and earnings exceeded our plans, up ~15%, and ~28%, respectively, marking a historic accomplishment for Flexential.
At Flexential, we also made significant strides in our financing and investment programs in 2023. Through multiple Asset-Backed Securities (ABS) offerings in 2022 and 2023, we secured $500 million in additional capital. This was facilitated by increased earnings and the integration of specific data centers into our financing framework. For this additional funding, we adhered to our Green Bond Principles, in line with our initial Green Bond issuance under the ABS format in 2021. This new capital enabled us to sustainably expand our data center investment initiatives and in 2023, we invested over $400 million to enhance our infrastructure, reflecting our commitment to sustainable growth for the benefit of our clients, partners, and employees.
However, the most exciting development lies in the groundbreaking cycle we are entering in the data center industry. With AI and other rapid technology advancements reshaping the industry, modern data centers have become crucial in enabling hybrid IT environments for our customers. We are at the edge of a revolutionary phase where our expertise and infrastructure are more vital than ever.
Driving customer success with sustainable, AI-optimized high-density data centers
In the last year, at Flexential, we not only expanded our capacity but also deepened our commitment to sustainability, both crucial for meeting the growing demand for data center capacity and high-density workloads required for advanced AI technologies. Our FlexAnywhere™ Platform has been pivotal in enabling this strategic expansion, ensuring that we stay at the forefront of the industry.
Central to our sustainability efforts is the evolution to Flexential Generation 5 data centers. Building upon the successes of our Generation 4 facilities, first designed and deployed in 2011, these data centers are not solely focused on expanding next-generation computing capabilities. They represent a shift towards a more intelligent and sustainable model for growth. With high-performance computing capabilities exceeding 50KW per cabinet, our Generation 5 data centers feature state-of-the-art cooling systems, encompassing both air and liquid cooling technologies. Their design is methodically optimized for Power Usage Effectiveness (PUE), ensuring that as Flexential capacity grows, we work to minimize environmental impact.
2023 also marked the release of our first Environmental, Social, and Governance (ESG) Report. This report showcases our accomplishments in integrating ESG principles into our operations and sets the stage for our future initiatives. It reflects our commitment to sustainability, with new data centers designed for reduced environmental impact and our efforts in promoting diversity, equity, inclusion, and belonging (DEIB) within our workforce and engaging in community service.
Our dedication to innovation and excellence is reflected in the success of our customers, including industry leaders like Nvidia, CoreWeave, and Applied Digital. By providing these power users with tailored, efficient, and sustainable data solutions, we've demonstrated our capability to meet and exceed the demanding needs of high-performance computing environments. Their trust in us underscores our role as a partner in their success, empowering them with the infrastructure necessary to deploy the latest AI technologies and digital advancements.
Looking ahead: 2024+
As we move into 2024, the journey we've embarked on at Flexential is not just ours alone; it’s a shared narrative of innovation, resilience, and growth. Our milestones in expanding capacity, advancing sustainability, scaling our interconnection platform, and fostering technology excellence are just the beginning. The story of Flexential is one of transformation, validating the power of unity, innovation, and foresight.
I invite you, our valued readers, partners, and customers, to join us in this exciting chapter. Whether it’s through following our updates, exploring collaborations, or leveraging our services, your participation is integral to our shared success.
Looking ahead, we are not just anticipating change; we are creating it. At Flexential, we are more than just a company; we are a catalyst for transformation, powering not only our data centers but the very future of technology itself. Here's to a year of pioneering, redefining the possible, and trailblazing a future that resonates with progress, sustainability, and unmatched excellence.
Stay tuned for updates and visit our Newsroom to learn how Flexential supports enterprise businesses with essential infrastructure solutions. We're committed to providing the robust services that businesses need to operate effectively and efficiently in today's market.
