Cogent Communications Holdings Inc. (CCOI) experienced a sharp decline of 10.3% during pre-market trading on Friday. The significant drop followed the release of the company's fourth-quarter financial results.

While the internet service provider reported a narrower quarterly loss per share of $0.64, beating the FactSet consensus estimate for a $1.03 loss, investors focused on the disappointing top-line performance. Cogent's Q4 service revenue of $240.5 million fell short of the $247.5 million analyst forecast, representing a 4.7% decrease compared to the same period last year. The market reaction suggests concerns over the company's revenue trajectory outweigh the positive earnings-per-share surprise.