Cogent(US:CCOI)2021-11-04 15:30Company Overview - Cogent operates a global network carrying over 20% of all internet traffic[8] - The company offers high-speed internet access to two customer bases: Corporate (60% of revenues) and Netcentric (40% of revenues)[8] - Cogent operates its network in 50 countries across 215 markets[8] Market Opportunity - Cogent wins approximately 40% of all On-Net proposals in the corporate sector[9] - The potential corporate market consists of over 92,000 MTOB tenants[9] - Cogent prices new Netcentric services at 50% of the market rate[10] Customer Segmentation - Corporate customers account for 60% of revenue and 4% of traffic, with 61% customer longevity of 4+ years and a monthly churn of 1.2%[11] - Netcentric customers account for 40% of revenue and 96% of traffic, with 45% customer longevity of 4+ years and a monthly churn of 0.9%[11] Network and Cost Advantages - Cogent's network is approximately 29% utilized, indicating substantial network capacity[17] - Cogent purchased $14 Billion of original investment for $60 Million[24] - Approximately 69% of Cogent's traffic originates and terminates on-net[22] Financial Performance - On-Net Revenue in Q3 2021 was $111.1 million, a 5.7% year-over-year increase[36] - Off-Net Revenue in Q3 2021 was $36.7 million, a 1.2% year-over-year decrease[36] - Total Revenue in Q3 2021 was $147.9 million, a 4.0% year-over-year increase[36] - EBITDA as adjusted Margin in Q3 2021 was 39.0%[36] - Cogent has returned over $1 Billion to shareholders since its 2005 public offering[38]