Cogent Communications Holdings Inc at KeyBanc Capital Markets Future of Technology Series Conference (Virtual) Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Brandon Nispel - KeyBanc Capital Markets Inc. - Analyst : But Dave, let's just kick it off. And I wanted to kick it off in your corporate business. So just as a reminder for folks, this is -- Dave's corporate business is 61% of the total revenue. It was down 6.5% year-over-year this last quarter. And, Dave, maybe I wanted to just start with the latest update there, particularly as companies are sort of changing their return to office plan with the Delta variant increasing.

Question: Brandon Nispel - KeyBanc Capital Markets Inc. - Analyst : No, absolutely. That was a good overview. Can you share with us some more specific sales metrics that you are looking at, that gives you confidence that in the next couple of quarters you'll return back to some sort of sequential growth?

Question: Brandon Nispel - KeyBanc Capital Markets Inc. - Analyst : Got it. And I guess as we think further out, does the Delta variant increase? Does that change the trajectory of this business getting back to a sequential growing business? I mean clearly that's come up. And I think what you had said previously is that, this could be sort of a U-shaped bottom, but eventually it would return. And it seems like it's taking longer than expected and I'm curious if it has at all changed your outlook. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 09, 2021 / 4:40PM, CCOI.OQ - Cogent Communications Holdings Inc at KeyBanc Capital Markets Future of Technology Series Conference (Virtual)

Question: Brandon Nispel - KeyBanc Capital Markets Inc. - Analyst : As I think about the growth of this business just from like an overall customers' perspective, it's gross adds minus churn. And I think one of the things you've called out is churn has returned or it has been trending lower. Is that the right way to think about it, is that at this point it's somewhat of just a gross add issue?

Question: Brandon Nispel - KeyBanc Capital Markets Inc. - Analyst : Got it. I want to switch gears a little bit, but still talk about the corporate business, specifically more on the ARPU side. And I think there is really two opposing trends whether it's on-net or off-net. Can you maybe talk about those from an ARPU perspective again in the corporate business?

Question: Brandon Nispel - KeyBanc Capital Markets Inc. - Analyst : Got it. And that would be a trend that you would expect to continue, correct?

Question: Brandon Nispel - KeyBanc Capital Markets Inc. - Analyst : Got it. I want to switch gears and maybe talk a little bit about NetCentric. As you look at the different customer verticals within that business, are there ones that are particularly strong and others that are maybe weaker? Maybe just give us an outline of what you are seeing there.

Question: Brandon Nispel - KeyBanc Capital Markets Inc. - Analyst : We have just a couple of minutes left. I wanted to ask maybe what are you seeing thus far in the third quarter from a traffic perspective? And maybe broadly, is traffic generally up or down sequentially in the third quarter? I would imagine that in sort of summer months, traffic might be down, but help us understand that a little bit.

Question: Brandon Nispel - KeyBanc Capital Markets Inc. - Analyst : Got it. Now maybe on some of the drivers for traffic growth, I think you mentioned streaming services. Some of the companies that are launching streaming services, they have actually delayed their launch, whether it's HBO or a couple of others, I can't remember exactly off the top of my head. Have you seen any customers sort of pull back or delay launches as well?

Question: Brandon Nispel - KeyBanc Capital Markets Inc. - Analyst : Interesting. Those stats on streaming in terms of minutes, I don't think I've heard the 40% before. That's sort of astonishing. But with that, Dave, we are out of time. So I will give you a second to maybe closing remarks or you can wrap it up there.