Cogent Communications Holdings, Inc. (NASDAQ:CCOI) Q2 2023 Earnings Conference Call August 10, 2023 8:30 AM ET

Company Participants

Dave Schaeffer - Chairman & CEO

Thad Weed - CFO

Conference Call Participants

Phil Cusick - JPMorgan

Frank Louthan - Raymond James

Greg Williams - TD Cowen

Walter Piecyk - LightShed Partners

David Barden - Bank of America

Brett Feldman - Goldman Sachs

Tim Horan - Oppenheimer & Co.

Nick Del Deo - MoffettNathanson

Evan Young - KeyBanc Capital Markets

Michael Rollins - Citigroup

Operator

Good morning, and welcome to the Cogent Communications Holdings Second Quarter 2023 Earnings Conference Call. As a reminder, this conference call is being recorded, and it will be available for replay at www.Cogentco.com. A transcript of this conference call will be posted on the same website when it becomes available. Cogent's summary of financial and operational results attached to its press release can be downloaded from the Cogent website.

I would now like to turn the call over to Mr. Dave Schaeffer, Chairman and Chief Executive Officer of Cogent Communications Holdings. Please go ahead.

Dave Schaeffer

Thank you and good morning to everyone. I'm going to start by apologizing for the possible length of this call. There are a number of new topics that we are going to be chatting about, but we will try to be complete in answering everyone's questions. Welcome to our second quarter 2023 earnings conference call. I'm Dave Schaeffer, Cogent’s Chief Executive Officer. With me on this morning's call is Thad Weed, our Chief Financial Officer. Hopefully, you've had a chance to review our earnings press release and our 10-Q for the quarter. Our press release includes a number of historical quarterly metrics that we present on a consistent basis every quarter. We've included a number of additional metrics this quarter related to our acquisition of Sprint, and we will continue to provide these metrics each quarter going forward. Our press release metrics now include corporate, NetCentric, and enterprise revenue, and customer connections and metrics related to the Sprint network assets.

Now for a few summaries of round our results. We closed our acquisition of the Sprint Wireline Business purchased from T-Mobile on May 1st, 2023. This transaction significantly expanded our network, our customer base, our employee talent, and materially increased the scope and scale of our business. We now have an annualized revenue run rate in excess of $1 billion.

We acquired a number of large enterprise customers, many Fortune 500 companies. The customers are larger than the typical customers in Cogent’s corporate customer base. We acquired a significant fiber network of owned assets and owned real estate facilities. We acquired a number of right-of-way agreements and relationships. It would've been virtually impossible to assemble the set of assets on our own.