NASDAQ$CCOI

Cogent Communications Holdings Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Cogent's service revenue increased, driven by on-net and off-net growth, with wavelength revenue contributing following the Sprint acquisition. However, GAAP gross profit decreased, and the company reported a net loss per share.

Cogent Communications reported a significant increase in service revenue for Q3 2023, primarily driven by growth in on-net and off-net services, along with contributions from wavelength revenue following the Sprint acquisition. Despite revenue growth, the company experienced a decrease in GAAP gross profit and reported a net loss per share.

  • Service revenue increased by 14.9% compared to the previous quarter and 83.6% year-over-year.
  • On-net revenue grew by 1.9% sequentially and 14.9% year-over-year, while off-net revenue increased by 28.4% sequentially and 257.7% year-over-year.
  • Wavelength revenue, related to the Sprint acquisition, reached $3.0 million for the quarter.
  • The Board approved a regular quarterly dividend increase of $0.01 per share, or 1.1%, from the third quarter 2023.

Headline financials

Total Revenue

$275M

Previous: $150M+83.6%
EPS (adj)

-$1.20

Previous: -$0.17-605.9%
Capital Expenditures

-$86M

Previous: -$59.4M-44.9%
Free Cash Flow

$987M

Previous: -$55.1M+1892.2%
Net Income

$1.07B

Previous: $4.29M+24895.1%
Operating Income

-$50.6M

Previous: $28.1M-280.0%
Gross Profit

$102M

Previous: $92.8M+9.8%
Cash & Equivalents

$110M

Previous: $269M-59.2%
Total Assets

$2.96B

Previous: $1.02B+190.2%

Revenue & EPS history

Cogent · Revenue · Quarterly

$275M

Q3 2023+83.6%vs Q3 2022
Beat estimate in 3 of 15 quarters(20%)
ActualEstimate

Revenue by segment

Cogent · $275M total across 4 segments · Q3 2023

  • Off-Net
    $131M+257.9%
  • On-Net
    $130M+14.8%
  • Non-Core
    $11.4M
  • Wavelength
    $3M

Forward guidance

Cogent will host a conference call with financial analysts at 8:30 a.m. (ET) on November 9, 2023 to discuss Cogent’s operating results for the third quarter of 2023 and expectations for full year 2023.

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 Q3 2023

Historical avgQ3 2023

-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%

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