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Jun 30, 2021
Cogent Q2 2021 Earnings Report
Cogent announced its Q2 2021 financial results, featuring a revenue increase and a dividend increase.
Key Takeaways
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%.
Cogent
Cogent
Cogent Revenue by Segment
Revenue by Segment
On-Net Revenue
CapyFin.comOff-Net Revenue
CapyFin.com 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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income