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Sep 30, 2023

Cogent Q3 2023 Earnings Report

Cogent's service revenue increased, driven by on-net and off-net growth, with wavelength revenue contributing following the Sprint acquisition. However, GAAP gross profit decreased, and the company reported a net loss per share.

Key Takeaways

Cogent Communications reported a significant increase in service revenue for Q3 2023, primarily driven by growth in on-net and off-net services, along with contributions from wavelength revenue following the Sprint acquisition. Despite revenue growth, the company experienced a decrease in GAAP gross profit and reported a net loss per share.

Service revenue increased by 14.9% compared to the previous quarter and 83.6% year-over-year.

On-net revenue grew by 1.9% sequentially and 14.9% year-over-year, while off-net revenue increased by 28.4% sequentially and 257.7% year-over-year.

Wavelength revenue, related to the Sprint acquisition, reached $3.0 million for the quarter.

The Board approved a regular quarterly dividend increase of $0.01 per share, or 1.1%, from the third quarter 2023.

Total Revenue
$275M
Previous year: $150M
+83.6%
EPS
-$1.2
Previous year: -$0.17
+605.9%
On-net customer connections
23.21K
Previous year: 96.32K
-75.9%
Off-net customer connections
12.9M
Previous year: 82.61K
+15514.8%
Gross Profit
$15.1M
Previous year: $69.9M
-78.4%
Cash and Equivalents
$166M
0
Free Cash Flow
-$77.8M
Previous year: $29.6M
-362.9%
Total Assets
$2.96B
Previous year: $1.02B
+190.2%

Cogent

Cogent

Cogent Revenue by Segment

Forward Guidance

Cogent will host a conference call with financial analysts at 8:30 a.m. (ET) on November 9, 2023 to discuss Cogent’s operating results for the third quarter of 2023 and expectations for full year 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income