NASDAQ$CCOI

Cogent Communications Holdings Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Cogent reported an increase in revenue compared to the previous year, with on-net revenue surpassing off-net revenue, and the board approved a dividend increase.

Cogent Communications Holdings, Inc. reported a service revenue of $272.1 million for Q4 2023, representing a 79.0% increase year-over-year. On-net revenue reached $141.2 million, while off-net revenue was $123.7 million. The Board approved a quarterly dividend increase to $0.965 per share.

  • Service revenue increased by 79.0% compared to Q4 2022, reaching $272.1 million.
  • On-net revenue grew by 22.8% year-over-year, totaling $141.2 million.
  • Off-net revenue increased significantly by 235.4% compared to the same period last year, amounting to $123.7 million.
  • The Board approved a regular quarterly dividend increase of $0.01 per share, setting the new dividend at $0.965 per share.

Headline financials

Total Revenue

$272M

Previous: $152M+79.0%
EPS (adj)

-$1.20

Previous: $0.02-6100.0%
Capital Expenditures

-$43.6M

Previous: $19.6M-322.6%
Net Income

$202M

Previous: $0.00
Operating Income

$169M

Previous: $0.00
Gross Profit

$29.7M

Previous: $71.4M-58.4%

Revenue & EPS history

Cogent · Revenue · Quarterly

$272M

Q4 2023+79%vs Q4 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 anticipates continued growth and strategic development, focusing on expanding its network and enhancing service offerings.

Tailwinds

  • Declining vacancy rates and rising office occupancy rates observed in several US cities.
  • Positive trends in the corporate business segment in multiple areas of the United States.
  • Integration of new applications from the remote work environment benefits Cogent's corporate business.
  • Opportunity for increased sales when companies eventually return to buildings in which Cogent operates.
  • Board approved a regular quarterly dividend of $0.965 per share payable on April 9, 2024.

Headwinds

  • Deteriorating real estate market impacts sales to corporate customers.
  • Slowdown in new sales due to remote work policies.
  • Increased corporate customer turnover.
  • Fewer upgrades of existing corporate customer configurations.
  • Fewer new tenant opportunities could negatively impact corporate revenue growth.

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 Q4 2023

Historical avgQ4 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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