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Sep 30, 2020

Cogent Q3 2020 Earnings Report

Cogent's service revenue increased, driven by growth in on-net revenue and a positive impact from foreign exchange, while the company managed the ongoing challenges posed by the COVID-19 pandemic.

Key Takeaways

Cogent Communications reported a 3.9% year-over-year increase in service revenue, reaching $142.3 million for the quarter ended September 30, 2020. The company experienced growth in on-net revenue and managed the impact of the COVID-19 pandemic, which included a decrease in sales productivity and potential customer delays.

Service revenue increased by 3.9% year-over-year, reaching $142.3 million.

On-net revenue grew by 5.7% year-over-year, totaling $105.1 million.

GAAP gross profit increased by 7.3% year-over-year, amounting to $66.2 million.

The Board approved a regular quarterly dividend increase of $0.025 per share.

Total Revenue
$142M
Previous year: $137M
+3.9%
EPS
-$0.11
Previous year: $0.17
-164.7%
On-net customer connections
88.51K
Previous year: 85.69K
+3.3%
Gross Profit
$66.2M
Previous year: $81.7M
-19.0%
Cash and Equivalents
$0
Previous year: $396M
-100.0%
Free Cash Flow
$19.7M
Previous year: $21.4M
-8.0%
Total Assets
$1B
Previous year: $932M
+7.4%

Cogent

Cogent

Cogent Revenue by Segment

Forward Guidance

Cogent's full year 2020 expectations were discussed on the conference call with financial analysts on November 5, 2020.

Revenue & Expenses

Visualization of income flow from segment revenue to net income