Cogent Q4 2020 Earnings Report
Key Takeaways
Cogent Communications announced its Q4 2020 results, revealing a service revenue of $143.9 million, a 2.6% increase year-over-year. The company's GAAP gross profit reached $66.6 million, reflecting a 3.6% increase from the previous year. The Board also approved a quarterly dividend increase.
Service revenue increased by 2.6% year-over-year, reaching $143.9 million.
On-net revenue increased by 4.3% year-over-year, totaling $107.1 million.
GAAP gross profit increased by 3.6% year-over-year, reaching $66.6 million.
The Board approved a regular quarterly dividend of $0.755 per common share.
Cogent
Cogent
Cogent Revenue by Segment
Forward Guidance
Cogent expects to continue to be impacted by the COVID-19 pandemic and the accompanying responses by governments around the world. Cogent’s workforce continues to work remotely with dedication. 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.
Challenges Ahead
- Cogent may experience slowdowns in new customer orders.
- Cogent may find it difficult to collect from customers who are experiencing financial distress.
- Cogent may undergo an increase in customer churn.
- Cogent may encounter difficulties accessing the buildings and locations where Cogent installs new services and serves existing customers.
- Cogent may have difficulties procuring, shipping or installing necessary equipment on its network.
Revenue & Expenses
Visualization of income flow from segment revenue to net income