Cogent Communications Holdings Inc at KeyBanc Technology Leadership Forum Transcript

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

Question: Brandon Nispel - KeyBanc Capital Markets - Analyst : May 1. What are the positive and negative surprises that you've learned thus far?

Question: Brandon Nispel - KeyBanc Capital Markets - Analyst : Got it. One of the things I get questions on, and it came out in your 8K is the way that the T-Mobile contract is actually going to be recognized. Can you maybe outline what you know thus far in terms of the payment from T-Mobile?

Question: Brandon Nispel - KeyBanc Capital Markets - Analyst : Right. And what's the difference to you, whether or not you recognize that contract as revenue? Because cash is coming in regardless. 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 07, 2023 / 9:00PM, CCOI.OQ - Cogent Communications Holdings Inc at KeyBanc Technology Leadership Forum

Question: Brandon Nispel - KeyBanc Capital Markets - Analyst : Got it. Let's talk about the growth prospects for that business. I think what we've heard is, most exciting aspect maybe to you is wavelength. Where are you now? Where can you be in a year in terms of wavelength sales? We've heard maybe the longer-term view of 25% share and $2 billion in revenue. What's the near term look like?

Question: Brandon Nispel - KeyBanc Capital Markets - Analyst : Got it. I may switch gears a little bit. Let's go back to your core business. (multiple speakers) Corporate. Let's start there. Corporate trends is minus one year over year. You've improved it from a trough of minus eight? And what's the outlook from you in terms of getting that business up to either a low or mid-single growth rate?

Question: Brandon Nispel - KeyBanc Capital Markets - Analyst : You're talking specifically for 2Q?

Question: Brandon Nispel - KeyBanc Capital Markets - Analyst : What's the mix there? I generally think of it as P times Q, right? Volumes have been fairly soft recently. ARPUs are actually pretty good. Part of the underlying trend in ARPU is shifting from 100 meg to one gig circuit and ultimately going to something higher than that. Maybe can you talk about that transition from 100 to a gig to, I think, 10 gig?

Question: Brandon Nispel - KeyBanc Capital Markets - Analyst : Going back to the corporate business a little bit. One of the things you probably noticed within your business is differences from a geographic perspective and how the corporate business is doing. Are there markets where you're doing far better than that 1% corporate revenue growth rate? And then what markets are they, and what type of percentage of your footprint does they make up?

Question: Brandon Nispel - KeyBanc Capital Markets - Analyst : Can you characterize how they're growing relative to the total, historically?

Question: Brandon Nispel - KeyBanc Capital Markets - Analyst : Like double-digit declines, I would assume.

Question: Brandon Nispel - KeyBanc Capital Markets - Analyst : We have about six minutes left. We're going to switch to net-centric segment. If anybody has any questions, feel free to raise your hand. I'll try to get them addressed. In the net-centric segment, we've always talked about that business being driven up video traffic. I can't help but ask with sort of marquee sports properties going towards streaming, whether it was last year in Amazon and Thursday Night Football this year in Google and Sunday NFL Ticket, what do you think that means to your business? Do you get more confidence when you see more and more sports properties go into streaming?

Question: Brandon Nispel - KeyBanc Capital Markets - Analyst : Got it. So do you actually see noticeable shifts in traffic when some of those properties go online?

Question: Brandon Nispel - KeyBanc Capital Markets - Analyst : Love your perspective in terms of different applications besides video streaming that's going to drive traffic. One notable one that I've covered since I cover Apple is the Vision Pro, right? What's your view on --

Question: Brandon Nispel - KeyBanc Capital Markets - Analyst : Absolutely, let's say, they scale to several million units a year at some point in the future. What would your thoughts be in terms of like bandwidth consumption of that specific type of product?

Question: Brandon Nispel - KeyBanc Capital Markets - Analyst : Got it. We have about two minutes left. Are there any questions from audience? Yes.

Question: Brandon Nispel - KeyBanc Capital Markets - Analyst : The question was on costs for the DC to AC conversion and the data center facilities.

Question: Brandon Nispel - KeyBanc Capital Markets - Analyst : Anybody else? With that, we're about out of time. Dave, thank you very much.