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Dec 31, 2023
Cogent Q4 2023 Earnings Report
Cogent reported an increase in revenue compared to the previous year, with on-net revenue surpassing off-net revenue, and the board approved a dividend increase.
Key Takeaways
Cogent Communications Holdings, Inc. reported a service revenue of $272.1 million for Q4 2023, representing a 79.0% increase year-over-year. On-net revenue reached $141.2 million, while off-net revenue was $123.7 million. The Board approved a quarterly dividend increase to $0.965 per share.
Service revenue increased by 79.0% compared to Q4 2022, reaching $272.1 million.
On-net revenue grew by 22.8% year-over-year, totaling $141.2 million.
Off-net revenue increased significantly by 235.4% compared to the same period last year, amounting to $123.7 million.
The Board approved a regular quarterly dividend increase of $0.01 per share, setting the new dividend at $0.965 per share.
Cogent
Cogent
Cogent Revenue by Segment
Revenue by Segment
On-Net Revenue
CapyFin.comOff-Net Revenue
CapyFin.comNon-Core Revenue
CapyFin.com Forward Guidance
Cogent anticipates continued growth and strategic development, focusing on expanding its network and enhancing service offerings.
Positive Outlook
- Declining vacancy rates and rising office occupancy rates observed in several US cities.
- Positive trends in the corporate business segment in multiple areas of the United States.
- Integration of new applications from the remote work environment benefits Cogent's corporate business.
- Opportunity for increased sales when companies eventually return to buildings in which Cogent operates.
- Board approved a regular quarterly dividend of $0.965 per share payable on April 9, 2024.
Challenges Ahead
- Deteriorating real estate market impacts sales to corporate customers.
- Slowdown in new sales due to remote work policies.
- Increased corporate customer turnover.
- Fewer upgrades of existing corporate customer configurations.
- Fewer new tenant opportunities could negatively impact corporate revenue growth.
Revenue & Expenses
Visualization of income flow from segment revenue to net income