Cogent Communications Holdings, Inc. (NASDAQ:CCOI) Q3 2022 Results Earnings Conference Call November 6, 2022 8:30 AM ET
Company Participants
Dave Schaeffer - Founder and Chief Executive Officer
Tad Weed - Chief Financial Officer
Conference Call Participants
James Breen - William Blair
Frank Louthan - Raymond James
Nick Del Deo - MoffettNathanson
David Barden - Bank of America Merrill Lynch
Brett Feldman - Goldman Sachs
George Engroff - Credit Suisse
Michael Rollins - Citigroup Global Markets
Bora Lee - RBC Capital Markets
Operator
Good morning and welcome to the Cogent Communications Holdings Third Quarter 2022 Earnings Conference Call. As a reminder, this 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. [Operator Instructions]
I would like to turn the call over to Mr. Dave Schaeffer, Chairman and Chief Executive Officer of Cogent Communications Holdings.
Dave Schaeffer
Thank you. And good morning3, everyone. Welcome to our third quarter 2022 earnings conference call. I'm Dave Schaffer, Cogent CEO. And with me on this morning's call is Tad Weed, our Chief Financial Officer. Hopefully you've had a chance to review our earnings press release. The press release includes a number of historical metrics that we present in a consistent manner for every quarter.
Our revenue growth accelerated this quarter and our corporate revenues increased sequentially by 0.4% from the first quarter, the first time since the beginning of the pandemic, and is in part due to the increase in USF revenues. Excluding the $670,000 sequential increase in USF revenues, our corporate revenues were essentially flat sequentially for the quarter.
Our total revenues increased sequentially by 1% to exactly $150 million, an increase of 1.4% year-over-year. Our total revenues and our Netcentric revenues were materially impacted by the negative impact of foreign exchange in the quarter and the continuing strengthening of the US dollar. For the quarter, the sequential negative impact of foreign exchange was $1.5 million and was negative $4.2 million on a year-over-year basis. On a constant currency basis, our revenues grew sequentially by 2% and grew by 4.3% year-over-year.
Our Corporate business continues to be influenced by real estate activities in the central business districts of major North American cities. Two key statistics, including the level of security cards, rights and buildings, and leasing activities indicate that, year to date, the real estate market and leasing activities in these central business districts have seen some improvement, but have not yet returned to their pre-pandemic levels. Leasing activity across major markets and workers' return to offices continue to improve albeit slowly.