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Mar 31, 2024
Cogent Q1 2024 Earnings Report
Cogent reported a decrease in service revenue compared to the previous quarter but a significant increase compared to the same quarter last year. The company's board approved an increase in the regular quarterly dividend.
Key Takeaways
Cogent Communications reported service revenue of $266.2 million for Q1 2024, a decrease of 2.2% from the previous quarter and an increase of 73.3% year-over-year. The Board approved a dividend increase of $0.01 per share to $0.975.
Service revenue decreased by 2.2% from the previous quarter but increased by 73.3% year-over-year.
On-net revenue increased by 0.4% from the previous quarter and 19.4% year-over-year.
Off-net revenue decreased by 4.4% from the previous quarter but increased by 217.0% year-over-year.
The Board approved a regular quarterly dividend of $0.975 per share, a 1.0% increase from Q1 2024.
Cogent
Cogent
Cogent Revenue by Segment
Revenue by Segment
On-Net Revenue
CapyFin.comOff-Net Revenue
CapyFin.comWavelength Revenue
CapyFin.comNon-Core Revenue
CapyFin.com Forward Guidance
The document does not contain specific forward guidance. It mentions potential impacts of COVID-19 and other risks.
Positive Outlook
- Declining vacancy rates and rising office occupancy rates observed in some areas.
- Positive trends in the corporate business in a number of areas of the United States.
- Corporate customers are integrating remote work applications into everyday use, benefiting Cogent's corporate business.
- Customers are upgrading their Internet access infrastructure to higher capacity connections.
- Potential for increased sales when companies eventually return to buildings in which Cogent operates.
Challenges Ahead
- Impact of the pandemic on leasing activity and office occupancy lingers in some cities.
- Potential for increased corporate customer turnover.
- Fewer upgrades of existing corporate customer configurations.
- Fewer new tenant opportunities.
- Uncertainty regarding the timing, path, and spread of positive trends.
Revenue & Expenses
Visualization of income flow from segment revenue to net income