Cogent Communications Holdings Inc. (NASDAQ:CCOI) Q4 2022 Results Conference Call February 23, 2023 8:30 AM ET

Company Participants

Dave Schaeffer - Founder, Chairman, CEO & President

Thaddeus Weed - CFO and Senior VP, Audit & Operations

Conference Call Participants

Frank Louthan - Raymond James

James Breen - William Blair

Evan Young - KeyBanc

Michael Srour - MoffettNathanson

John Crawford - BofA Securities

Bora Lee - RBC Capital Markets

Michael Rollins - Citi

Operator

Good morning, and welcome to the Cogent Communications Holdings Fourth Quarter 2022 and Full Year 2022 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 Cogent's 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, sir.

Dave Schaeffer

Thank you, and good morning, everyone. Welcome to our fourth quarter 2022 and Full Year 2022 Earnings conference call. I'm Dave Schaeffer, Cogent's CEO and 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. Our press release includes a number of historical quarterly metrics and we present these in a consistent way each quarter.

Now for a couple of comments on our results. Our revenue growth accelerated this quarter and our corporate revenues increased by 0.3%. Our revenue for the quarter increased sequentially by 1.3% to $152 million, an increase of 3.2% year-over-year. Our revenue increased by 1.7% for full year to $599.6 million. On a constant currency basis, our quarterly revenue grew year-over-year by 5.5%. And for full year, on a constant currency basis, our revenue growth was 3.9%. On a constant currency basis and also adjusting for the negative impact of universal service fee revenues on our revenue quarter-over-quarter or year-over-year on a quarterly basis, our revenues grew by 5.7% and for full year 2022 grew by 4.4%.

Our corporate business continues to be influenced by real estate activity in central business district. Key statistics that we look at are building entries as measured by security card swipes in buildings and leasing activities that year-to-date indicate that while the central business district markets have seen some improvement, this improvement continues at a slow pace and is still not at pre-pandemic levels. We continue to remain cautious about the outlook for our corporate revenue growth given the uncertain economic environment and other challenges as a result of emerging from the pandemic.