Cogent's Q4 Loss Narrower Than Expected, Revenues Down Y/Y

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 $43.3 million or $0.91 per share, compared to a net income of $200.2 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]. - For the full year 2024, CCOI reported a net loss of $204.1 million or $4.28 per share, down from a net income of $1.27 billion or $26.62 per share in 2023 [2]. Revenue Breakdown - Service revenues decreased to $252.3 million from $272.1 million year-over-year, missing the consensus estimate by $5 million [3]. - In 2024, service revenues increased to $1.03 billion from $940.92 million in 2023 [3]. Segment Performance - On-Net revenues were $128.8 million, down from $138.1 million year-over-year, missing estimates of $135 million, with customer connections declining 0.2% to 87,500 [4]. - Off-Net revenues were $113.2 million, down from $123.7 million year-over-year, with customer connections decreasing to 28,963 from 36,676 [5]. - Wavelength revenues increased to $7 million from $3.1 million year-over-year, with customer connections rising to 1,118 from 661 [5]. - Non-core revenues stood at $3.4 million, down from $7.3 million in the year-ago quarter [6]. Profitability Metrics - GAAP gross profit was $29.83 million, slightly up from $29.74 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 $68.5 million in the previous year [7]. - EBITDA totaled $41.9 million compared to $6 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 $48.7 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 $17.3 million generated in 2023 [9]. - As of December 31, 2024, CCOI had $198.5 million in cash and cash equivalents, with $517.2 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].