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Cogent's Q4 Loss Narrower Than Expected, Revenues Down Y/Y
CCOICogent(CCOI) ZACKS·2025-02-28 15:05

Core Insights - Cogent Communications Inc. (CCOI) reported mixed fourth-quarter 2024 results, with net income surpassing estimates but revenue falling short due to weakness in net-centric and corporate business segments [1][3]. Financial Performance - The company reported a net loss of 43.3millionor43.3 million or 0.91 per share, compared to a net income of 200.2millionor200.2 million or 4.17 per share in the same quarter last year, with the bottom line beating the Zacks Consensus Estimate by 0.31[2].−Forthefullyear2024,CCOIreportedanetlossof0.31 [2]. - For the full year 2024, CCOI reported a net loss of 204.1 million or 4.28pershare,downfromanetincomeof4.28 per share, down from a net income of 1.27 billion or 26.62persharein2023[2].RevenueBreakdown−Servicerevenuesdecreasedto26.62 per share in 2023 [2]. Revenue Breakdown - Service revenues decreased to 252.3 million from 272.1millionyear−over−year,missingtheconsensusestimateby272.1 million year-over-year, missing the consensus estimate by 5 million [3]. - In 2024, service revenues increased to 1.03billionfrom1.03 billion from 940.92 million in 2023 [3]. Segment Performance - On-Net revenues were 128.8million,downfrom128.8 million, down from 138.1 million year-over-year, missing estimates of 135million,withcustomerconnectionsdeclining0.2135 million, with customer connections declining 0.2% to 87,500 [4]. - Off-Net revenues were 113.2 million, down from 123.7millionyear−over−year,withcustomerconnectionsdecreasingto28,963from36,676[5].−Wavelengthrevenuesincreasedto123.7 million year-over-year, with customer connections decreasing to 28,963 from 36,676 [5]. - Wavelength revenues increased to 7 million from 3.1millionyear−over−year,withcustomerconnectionsrisingto1,118from661[5].−Non−corerevenuesstoodat3.1 million year-over-year, with customer connections rising to 1,118 from 661 [5]. - Non-core revenues stood at 3.4 million, down from 7.3millionintheyear−agoquarter[6].ProfitabilityMetrics−GAAPgrossprofitwas7.3 million in the year-ago quarter [6]. Profitability Metrics - GAAP gross profit was 29.83 million, slightly up from 29.74millionayearago,withmarginsof11.829.74 million a year ago, with margins of 11.8% and 10.9% respectively [7]. - Operating loss was 32.8 million compared to a loss of 68.5millioninthepreviousyear[7].−EBITDAtotaled68.5 million in the previous year [7]. - EBITDA totaled 41.9 million compared to 6millionintheyear−agoquarter,withrespectivemarginsof16.66 million in the year-ago quarter, with respective margins of 16.6% and 2.2% [8]. Cash Flow and Liquidity - In Q4 2024, CCOI generated 14.5 million in cash from operations, compared to 48.7millioncashutilizedinthesamequarterlastyear[9].−Forthefullyear2024,thecompanyutilized48.7 million cash utilized in the same quarter last year [9]. - For the full year 2024, the company utilized 8.6 million in cash from operations, down from 17.3milliongeneratedin2023[9].−AsofDecember31,2024,CCOIhad17.3 million generated in 2023 [9]. - As of December 31, 2024, CCOI had 198.5 million in cash and cash equivalents, with 517.2millioninfinanceleaseobligations[10].DividendInformation−Cogentraiseditsquarterlydividendbyapennyto517.2 million in finance lease obligations [10]. Dividend Information - Cogent raised its quarterly dividend by a penny to 1.005 per share for Q1 2025, marking the 50th consecutive quarterly dividend increase [8]. Zacks Rank - CCOI currently holds a Zacks Rank 2 (Buy) [11].