Question-and-Answer Session
Operator
(Operator Instructions) Your first call comes from Jonathan Atkin – RBC Capital Markets.
Jonathan Atkin – RBC Capital Markets
With respect to your 2009 guidance for revenues and EBITDA, I wanted to get a feel for what you're assuming over the next several quarter with respect to churn, maybe average customer size as well as spot pricing that underlies the guidance relative to what we saw in the past quarter.
Keith Olson
Let me first address the pricing bit, then I'll come back to churn. Our pricing as we've shared on a number of calls remains very consistent as far as the rational as well as what we see as strength in pricing. We're still expecting somewhere between 3% and 3.5% percent positive impact to revenue from pricing, re-pricing of contract renewals and incremental price points in the markets.
As it relates to churn, right now we've seen an uptick and we have not modified yet our outlook on the annual churn rate. What we were just reporting is that the economic headwinds, looking at the reasons and rationales for churn increase were due to the economic conditions of people grooming or some insolvency.
Jonathan Atkin – RBC Capital Markets
And with respect to average customer size, I guess I'm curious as to whether that is going to tick up. You sort of alluded to that in your comments.
Keith Olson
Yes, year over year the average size of deal is up 10%, frequency is up 27% when we do that top five sales report.
Jonathan Atkin – RBC Capital Markets
And the frequency means what exactly?
Keith Olson
The number of deals year over year in that category.
Jonathan Atkin – RBC Capital Markets
And with the average deal size up in terms of, I would assume that means more cabinets taken down, can we expect exiting this year inter-connection revenues as a portion of the total might start to dip a little below 30%?
George Pollock
That's something that will be interesting to see the types of deals that are landing, and that's a very good question. Right now the biggest contributing factor to the changes in percentiles is really centered around power, and specifically not only in more power per rack, but a lot more B power, so redundant power being added as well.
So there's kind of a couple of different moving parts, but that's what we see as the biggest contribution the change of percentages, is centered around power.
- To read the full transcript on Seeking Alpha, click here »
