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Intellectia.AI Updated: 1970-01-01
Cogent Communications Holdings, Inc. Reports Q2 2024 Financial Results
Overview
Cogent Communications Holdings, Inc. (NASDAQ: CCOI) reported its financial results for the quarter ending June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q1 2024 | Q2 2023 | Y-o-Y % Change | Q-o-Q % Change | Consensus Estimates (Q2 2024) |
|---|---|---|---|---|---|---|
| Revenue (millions) | $260.4 | $239.8 | $239.8 | 8.6% | 8.6% | $264.44 |
| EPS (Basic) | -$0.68 | -$1.38 | $23.84 | NM* | NM | -$1.27 |
| EBITDA (Adjusted) | $106.2 | $115.0 | $54.1 | 96.2% | -7.6% | N/A |
* Not meaningful due to large variations.
Interpretation
:
Cogent slightly missed consensus revenue estimates for Q2 2024, reporting $260.4 million against the expected $264.44 million. The earnings per share (EPS) also came in better than expected but negative, at -$0.68 against consensus of -$1.27. EBITDA, adjusted for Sprint acquisition costs and cash received under the IP Transit Agreement with T-Mobile, declined by 7.6% quarter-over-quarter. However, year-over-year EBITDA growth was significant at 96.2%.
Revenue by Segment
| Segment | Q2 2024 | Q1 2024 | Q2 2023 | Y-o-Y % Change | Q-o-Q % Change |
|---|---|---|---|---|---|
| On-net Revenue | $140.6 | $138.5 | $127.5 | 10.3% | 1.5% |
| Off-net Revenue | $111.5 | $118.3 | $102.0 | 9.3% | -5.7% |
| Wavelength Revenue | $3.6 | $3.3 | $1.6 | 128.7% | 9.0% |
| Non-core Revenue | $4.6 | $6.0 | $8.6 | -46.5% | -23.3% |
Interpretation
:
On-net revenue saw a moderate increase of 1.5% quarter-over-quarter and a robust 10.3% year-over-year. Despite a 5.7% decline in off-net revenue from Q1 2024, it displayed a healthy 9.3% increase year-over-year. Wavelength revenue surged dramatically by 128.7% year-over-year. Non-core services continued to decline both quarter-over-quarter and year-over-year, reflecting Cogent's move away from legacy services.
Operational Metrics
| Metric | Q2 2024 | Q1 2024 | Q2 2023 | Y-o-Y % Change | Q-o-Q % Change |
|---|---|---|---|---|---|
| Total Customer Connections | 128,782 | 132,962 | 151,504 | -15.0% | -3.1% |
| On-net Customer Connections | 87,387 | 87,568 | 92,789 | -5.9% | -0.2% |
| Off-net Customer Connections | 32,758 | 34,563 | 38,754 | -15.5% | -5.3% |
| Wavelength Customer Connections | 754 | 693 | 414 | 82.1% | 8.8% |
| Non-core Customer Connections | 7,883 | 10,138 | 19,408 | -59.4% | -22.2% |
| On-net Buildings Added | 3,386 | 3,321 | 3,227 | 4.9% | 2.0% |
Dividends
The Board approved an increase of $0.01 per share to its regular quarterly dividend for a total of $0.985 per share for Q3 2024 as compared to $0.975 per share for Q2 2024. This represents Cogent's forty-eighth consecutive quarterly dividend increase.
Stock Price Movement
Post-earnings release, Cogent’s stock experienced a decline of approximately 1.89%.
Conclusion
Despite missing revenue estimates slightly, Cogent demonstrated strong year-over-year growth in several key metrics, including EBITDA and wavelength revenue. The consistent increase in dividends underscores management's confidence in the company's financial health, despite recognizing ongoing market challenges.
For more detailed financial tables and non-GAAP measures, consult Cogent's complete earnings release and SEC filings.
