WideOpenWest (NYSE:WOW) Misses Q4 Revenue Estimates, But Stock Soars 9.4%

Ladies and gentlemen, buckle up! We've got a wild ride on our hands with WideOpenWest (NYSE:WOW). The company just reported its Q4 and full-year 2024 results, and while the revenue numbers might have you scratching your head, the stock is on FIRE, up 9.4%! Let's dive in and see what's driving this madness.

First things first, the numbers. WideOpenWest reported a total revenue of $152.6 million for Q4, missing estimates by a hair. Full-year revenue was $630.9 million, down 8.1% year-over-year. Ouch! But here's where it gets interesting. Despite the revenue drop, the company's Adjusted EBITDA soared 4.7% year-over-year to $288.4 million. That's right, folks! The market is loving the cost management and operational efficiencies that WideOpenWest has been implementing.

Now, let's talk about the elephant in the room: subscriber losses. WideOpenWest reported a net loss of 10,200 HSD RGUs in Q4, with 5,400 of those losses attributed to Hurricanes Helene and Milton. That's a tough pill to swallow, but the company is making strides in its Greenfield markets. They passed an additional 31,500 new homes and increased penetration rates to 16.6% for the year ended December 31, 2024. That's a 6.7% increase from the previous year, and it's a clear sign that the company's strategy is working.

But here's the kicker: WideOpenWest's simplified pricing strategy is paying off big time. The company saw year-over-year ARPU growth, which is a huge win in a competitive market. This strategy is all about attracting and retaining customers, and it's clear that WideOpenWest is onto something.

Now, let's talk about the future. WideOpenWest has a lot of potential, but it's not without its challenges. The company's pause in market expansion construction in Q3 2024 pending additional financing raises questions about the sustainability of its expansion efforts. But with a net leverage ratio of 3.5x and a new Priority Credit Agreement providing additional liquidity, WideOpenWest is in a strong position to weather the storm.



So, what's the bottom line? WideOpenWest is a company on the move, and the market is taking notice. The stock's 9.4% surge despite missing Q4 revenue estimates is a clear sign that investors are bullish on the company's long-term prospects. With a focus on Greenfield markets, cost management, and a simplified pricing strategy, WideOpenWest is poised for growth. But remember, folks, this is a high-risk, high-reward play. Do your own research and make sure it's the right fit for your portfolio. BOO-YAH!