NASDAQ$CCOI

Cogent Communications Holdings Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Cogent announced its Q2 2021 financial results, featuring a revenue increase and a dividend increase.

Cogent Communications reported a service revenue of $147.9 million for the three months ended June 30, 2021, representing a 0.8% increase from the previous quarter and a 4.9% increase year-over-year. The company's Board approved a regular quarterly dividend of $0.805 per common share, marking a 3.2% increase from the previous quarter.

  • Service revenue reached $147.9 million, up 0.8% QoQ and 4.9% YoY.
  • On-net revenue increased by 1.0% QoQ and 7.0% YoY, reaching $111.0 million.
  • Off-net revenue decreased slightly by 0.1% QoQ and 0.9% YoY, totaling $36.7 million.
  • GAAP gross profit increased by 3.6% year-over-year to $69.6 million, with a gross margin of 47.1%.

Headline financials

Total Revenue

$148M

Previous: $141M+4.9%
EPS (adj)

-$0.05

Previous: $0.18-127.8%
Capital Expenditures

-$32.7M

Previous: -$26.8M-21.9%
Free Cash Flow

-$16.3M

Previous: -$9.01M-81.0%
Net Income

$16.4M

Previous: $17.8M-8.1%
Operating Income

$28.2M

Previous: $27.6M+2.3%
Gross Profit

$91.7M

Previous: $87.1M+5.3%
Cash & Equivalents

$374M

Previous: $417M-10.3%
Total Assets

$1.01B

Previous: $1.01B+0.5%

Revenue & EPS history

Cogent · Revenue · Quarterly

$148M

Q2 2021+4.9%vs Q2 2020
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Cogent · $148M total across 2 segments · Q2 2021

  • On-Net
    $111M+6.9%
  • Off-Net
    $36.7M-0.8%

Forward guidance

Cogent expects to be impacted by the COVID-19 pandemic. Cogent does not know the ultimate scope and duration of the pandemic, the availability and efficacy of vaccines and therapeutic treatments, government actions that have been taken, or may be taken in the future in response to the pandemic and global economic conditions during and after the pandemic.

Tailwinds

  • Majority of Cogent’s workforce continues to work remotely with dedication.
  • Cogent's network is well-positioned to handle increased traffic demands.
  • The company is focused on maintaining its strong financial position.
  • Cogent is actively managing its costs to mitigate the impact of the pandemic.
  • The company continues to invest in its network infrastructure.

Headwinds

  • The ongoing impact of the COVID-19 pandemic and related government restrictions on Cogent’s business is unknown as a significant amount of uncertainty and volatility remains.
  • Cogent may experience slowdowns in new customer orders.
  • It may be difficult to collect from customers who are experiencing financial distress.
  • There may be an increase in customer churn.
  • Difficulties accessing the buildings and locations where Cogent installs new services and serves existing customers, or have difficulties procuring, shipping or installing necessary equipment on its network.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

-2.6%

Avg return

Earnings day

-3.8%

Avg return

5 days after

-5.1%

Avg return

30 days after

41%

26 / 64 earnings

Positive

+19.3%

Q2 2023

Best reaction

-34.8%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-29.4%-28.1%-29.3%
Q4 2025-29.4%-29.7%-31.4%
Q3 2025-34.8%-46.2%-48.8%
Q1 2025-7.3%-3.6%-10.1%
Q4 2024-9.5%-11.0%-23.1%
Q3 2024-1.1%-6.7%-7.7%
Q2 2024+5.9%+6.7%+8.4%
Q1 2024-6.0%-7.7%-13.1%
Q4 2023-2.7%-9.6%-19.1%
Q3 2023-0.8%+2.2%+5.4%
Q2 2023+19.3%+22.3%+15.6%
Q1 2023-9.1%-12.0%-14.3%
Q4 2022-4.4%-1.4%-9.1%
Q3 2022+2.2%+3.0%+9.1%
Q2 2022-8.1%-8.7%-16.7%
Q1 2022-2.4%+3.5%-0.3%
Q4 2021+5.6%+3.4%+1.9%
Q3 2021-2.0%-0.8%-3.5%
Q2 2021+4.6%+2.7%+0.3%
Q1 2021+5.3%+10.2%+9.5%
Q4 2020-3.8%+1.2%+8.4%
Q3 2020-5.6%+2.8%+1.7%
Q2 2020-13.1%-21.1%-22.3%
Q1 2020-7.5%-11.2%-8.5%
Q4 2019-2.6%+8.4%+4.7%
Q3 2019+8.5%+12.9%+7.3%
Q2 2019-8.8%-7.7%-3.1%
Q1 2019+2.3%+2.6%+6.0%
Q4 2018+1.6%-3.2%+3.9%
Q3 2018-3.8%-1.6%-6.7%
Q2 2018-3.8%-4.5%+4.3%
Q1 2018-0.9%+1.1%+4.6%
Q4 2017-1.9%-3.2%-7.3%
Q3 2017-20.4%-14.0%-12.5%
Q2 2017+8.0%+6.4%+15.0%
Q1 2017-7.7%-4.1%-5.1%
Q4 2016+0.2%-2.4%-0.1%
Q3 2016+9.5%+14.4%+2.8%
Q2 2016-13.8%-14.2%-15.4%
Q1 2016+0.7%
Q4 2015+7.0%
Q3 2015+12.2%
Q2 2015-7.4%
Q1 2015-7.8%
Q4 2014-6.5%
Q3 2014+1.4%
Q2 2014-3.7%
Q1 2014-0.5%
Q4 2013-5.7%
Q3 2013+5.1%
Q2 2013+11.4%
Q1 2013+1.8%
Q4 2012+1.6%
Q3 2012-4.9%
Q2 2012+1.8%
Q1 2012-3.6%
Q4 2011+6.6%
Q3 2011+5.2%
Q2 2010-8.7%
Q2 2011-8.7%
Q1 2011+2.2%
Q4 2010-3.3%
Q3 2010+1.8%
Q1 2010+1.5%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro