Feb. 20 at 6:48 PM
$CCOI CC today was as poor today. Data centre sales and waves were the priority to deleverage but communication was not clear from Dave.
What I liked -
Waves increase 18.8% - positive even if small number to go from
EBITDA margins - increased by 1.4% - shows firing unprofitable customers is helping
What I didn’t like -
Data centre sales need to be completed by Q1 now. Bring in 200-400million cash
Capex actually increased from 36 mil to 37 after they reaffirmed in q3 estimated to come down to closer to 25mil
IPV4 revenue actually decreased from 17,475 - 17,323 (frustrating)
Interest expense increased from 43 mil to 53 mil
Overall - I think we are still early. If waves ramps to 100 million run rate by end of this year ( currently at 50 million) &
$200 million + next year, data centre sales cut leverage by 600 million and this business turns into a monster stock.
