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WASHINGTON - Cogent Communications Holdings, Inc. (NASDAQ:CCOI) reported fourth-quarter results that fell short of analyst expectations, sending shares down 9.5% in trading following the announcement.
The telecommunications company posted revenue of $252.3 million for the quarter ended December 31, 2024, missing the consensus estimate of $258.04 million. Revenue decreased 1.9% from the previous quarter and 7.3% YoY. The company reported a loss of $0.91 per share, which was better than analysts’ expectations for a loss of $1.22 per share.
The company noted that lower office occupancy rates continue to impact its corporate revenue results, though it has seen improving trends in some markets.
Cogent’s on-net revenue, derived from customers in buildings physically connected to its network, fell 5.7% sequentially to $128.8 million. Off-net revenue increased 1.7% from the previous quarter to $113.2 million.
The company saw bright spots in its wavelength and IPv4 leasing businesses. Wavelength revenue jumped 31.8% sequentially to $7.0 million, while revenue from leasing IPv4 addresses rose 11.8% to $12.6 million.
"While we faced challenges in our core business this quarter, we’re encouraged by the strong growth in our wavelength and IP address leasing segments," said Dave Schaeffer, Cogent’s CEO. "We remain focused on expanding our optical wave network and capitalizing on opportunities in the evolving telecommunications landscape."
Cogent approved a dividend increase of $0.01 per share to $1.005 for the first quarter of 2025, marking its fiftieth consecutive quarterly dividend increase.
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