Cogent Communications Holdings Inc

CCOI

Equity

ISIN US19239V3024 / Valor 1886547

NASDAQ (2024-09-18)

USD 70.66+0.48%

Cogent Communications Holdings Inc
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About company

Cogent Communications Holdings Inc, a publicly traded company on the NASDAQ under the symbol CCOI, is headquartered in Washington, DC, United States. Founded by Dave Schaeffer in August 1999, Cogent has grown to become one of the world's largest Internet Providers through successful acquisitions expanding its network globally. With a focus on providing services to both corporate clients ranging from small businesses to Fortune 100 companies, as well as netcentric clients such as carriers, service providers, and application/content providers, Cogent operates a facilities-based, non-oversubscribed multinational network. Thaddeus “Tad” Weed, who joined Cogent in 2000, has played a key role in the company's financial management and operational efficiency, serving as Chief Financial Officer and Treasurer.

Summarized from source with an LLMView SourceSector: Technology

Service Revenue

Cogent Communications Holdings Inc. reported service revenue of $260.4 million for the second quarter of 2024. This represents an increase of 8.6% compared to the same period in 2023, but a decrease of 2.2% from the first quarter of 2024. The fluctuations were partly influenced by foreign exchange rates, which negatively impacted revenue growth by $0.3 million from Q1 2024 to Q2 2024 and by $0.4 million from Q2 2023 to Q2 2024.

EBITDA Margin

For the second quarter of 2024, Cogent Communications Holdings Inc. achieved an EBITDA margin of 10.4%, up from 6.9% in the first quarter of 2024. However, the adjusted EBITDA, which accounts for Sprint acquisition costs and cash received under the IP Transit Agreement with T-Mobile, was $106.2 million for Q2 2024, down from $115.0 million in Q1 2024.

Gross Margin

Cogent Communications Holdings Inc. reported a Non-GAAP gross margin of 40.2% for the second quarter of 2024, an improvement from 36.7% in the first quarter of 2024. The GAAP gross margin also saw an increase, reaching 11.6% in Q2 2024 compared to 9.9% in Q1 2024. This improvement reflects better cost management and operational efficiencies.

Dividend Increase

Cogent Communications Holdings Inc. announced an increase in its regular quarterly dividend to $0.985 per share for the third quarter of 2024, up from $0.975 per share in the second quarter of 2024. This marks the company's forty-eighth consecutive quarterly dividend increase, demonstrating its commitment to returning value to shareholders.

Net Cash and Acquisition Costs

Net cash used in operating activities for Cogent Communications Holdings Inc. was $22.2 million in the second quarter of 2024. This is a significant change from the $19.2 million provided by operating activities in the first quarter of 2024. The company also incurred $12.4 million in Sprint acquisition costs during Q2 2024, up from $9.0 million in Q1 2024.

Summarized from source with an LLMView Source

Key figures

5.78%1Y

-3.43%3Y

27.6%5Y

Performance

34.6%1Y

31.0%3Y

34.1%5Y

Volatility