TORONTO, April 24, 2025 /PRNewswire/ - Tucows Inc. (NASDAQ: TCX) (TSX: TC) today announced that it will report its financial results for the first quarter ended March 31, 2025, via news release on Thursday, May 8, 2025 at 5:05 p.m. ET. Concurrent with the dissemination of its quarterly financial results news release at 5:05 p.m. ET on Thursday, May 8, 2025, management's pre-recorded audio commentary and transcript discussing the quarter and outlook for the Company will be posted to the Tucows website at htt ...

TORONTO, April 10, 2025 /PRNewswire/ - Tucows Inc. (NASDAQ: TCX, TSX: TC) today announced the nomination of five new individuals for election to its Board of Directors' slate at the company's upcoming Annual Meeting of Shareholders, as outlined in the 2025 Proxy Statement filed today. The newly-nominated directors—Dr. Sandra Matz, Laurenz Malte Nienaber, Allen Taylor, Jeffrey Tory, and Stephan Uhrenbacher—bring a breadth of experience across finance, technology, marketing, and entrepreneurship, and are eage ...

Core Viewpoint - Tucows Inc. reported an amendment to its unaudited financial results for Q4 and FY 2024, highlighting a reduction in non-cash impairment charges and significant net losses compared to the previous year [1][2][3]. Financial Results Summary - The net loss for Q4 2024 was $42.5 million, or a loss of $3.86 per share, compared to a net loss of $23.4 million, or a loss of $2.14 per share in Q4 2023, marking an 82% increase in loss [3][4]. - For the full year 2024, the net loss was $109.9 million, compared to a loss of $96.2 million in 2023, reflecting a 14% increase [4]. - Adjusted net income (loss) for Q4 2024 was ($15.8 million) and adjusted EPS was ($1.43), an improvement from ($22.4 million) and ($2.05) in Q4 2023, indicating a 30% reduction in adjusted net loss [3][4][16]. Revenue and Profit Analysis - Net revenues for Q4 2024 were $93.1 million, a 7% increase from $87.0 million in Q4 2023 [4][5]. - Gross profit for Q4 2024 was $21.2 million, up 19% from $17.8 million in Q4 2023 [4][5]. - Adjusted EBITDA for Q4 2024 was $12.8 million, compared to $2.6 million in Q4 2023, showing a significant improvement in operational performance [5][13]. Segment Performance - Ting Internet Services generated $15.7 million in revenue for Q4 2024, up from $13.8 million in Q4 2023 [5][6]. - Wavelo Platform Services reported revenues of $9.9 million, slightly up from $9.5 million in the same period last year [5][6]. - Tucows Domain Services saw total revenues of $65.7 million in Q4 2024, compared to $61.8 million in Q4 2023, reflecting growth in both wholesale and retail segments [5][6]. Management Commentary and Future Outlook - Management's pre-recorded audio commentary discussing the quarter and future outlook will be available on the Tucows website [17]. - Shareholders and analysts can submit questions to management, with responses to be posted on the company's website [18]. Company Overview - Tucows Inc. is a leader in internet services, providing domain services, fiber-optic internet infrastructure, and telecommunications software [19]. - The company manages approximately 25 million domain names and offers various value-added services through a global reseller network [19].

Financial Performance - Ting incurred a net loss of $121.7 million for the year ended December 31, 2024, compared to a net loss of $119 million for the year ended December 31, 2023[149]. - Ting had $61.7 million in cash and cash equivalents as of December 31, 2024, with long-term liabilities including $287.6 million on the 2023 and 2024 Term Notes and $122.1 million on Redeemable Preferred Units[149]. - Ting incurred an operating cash flow deficit of $49.9 million for the year ended December 31, 2024[149]. - The company is obligated to redeem Generate's equity interests for the outstanding capital balance plus unsatisfied preferred return, which could have a material adverse effect on the business[145]. - Rising inflation and interest rates may adversely affect the company's financial condition and operating results, particularly in the Ting segment[152]. - The company's ability to service its substantial debt obligations depends on operational cash flows and prevailing interest rates, with rising rates potentially increasing debt servicing costs[154]. Business Segments and Operations - Tucows operates in three segments: Ting, Wavelo, and Tucows Domains, each focusing on different markets and services[18]. - The company generates recurring revenue primarily from non-refundable, up-front payments related to domain name registrations and renewals[26]. - The retail segment includes the sale of rights to surname domains, allowing approximately two-thirds of Americans to purchase email addresses based on their last name[29]. - Wavelo's software solutions are integrated with EchoStar's Digital Operator Platform and Ting's Internet Service Operating System, enhancing subscriber growth and operational efficiency[22]. - The wholesale domain services manage 24.5 million domain names, with a slight decrease of 0.1 million, or less than 0.2%, since December 31, 2023[27]. - Tucows Domains generates revenues primarily from registration fees charged to resellers for new, renewed, and transferred domain name registrations[24]. Workforce and Operational Efficiency - The February 2024 Workforce Reduction aimed to reduce Ting's workforce by 13%, impacting 7% of the total workforce, incurring non-recurring charges of approximately $3.2 million[48]. - The Capital Efficiency Plan reduced Ting's workforce by 42%, or 17% of the total workforce, with non-recurring charges of approximately $7.7 million[49]. - Approximately 765 full-time employees and 99 contracted employees were reported as of December 31, 2024, with 58% based in Canada[45]. - The company has invested in employee wellness initiatives, including daily mindfulness sessions and support for various Employee Resource Groups[55][56]. - The company emphasizes the importance of maintaining a good working relationship with vendors and customers to ensure operational success[16]. Market and Competitive Landscape - Tucows is positioned as a defender of end-user rights and maintains a strong brand presence in the domain registration market[31]. - The company operates in a competitive landscape with significant competition from U.S. broadband providers and domain registrars[39][40]. - The company anticipates challenges related to competition, regulatory compliance, and economic conditions impacting its business operations[16]. - The company aims to mitigate pricing pressure by delivering high value through business and technical practices, maintaining long-term customer relationships[43]. Regulatory and Compliance Risks - Compliance with regulations such as GDPR and ICANN is critical for Tucows' operations in the domain registration and internet service sectors[61][65]. - The company is subject to evolving regulatory requirements that could increase compliance costs and impact its ability to scale operations[102]. - The company is subject to potential fines of up to 4% of annual total revenue for violations of GDPR, which could impact its financial performance[120]. - Changes in ICANN policies and fees may impact the company's domain registration business[80]. - The Domain Services business operates under standard customer agreements that may be challenged in certain jurisdictions, potentially increasing legal liability and compliance costs[161]. Financial Obligations and Debt - The company has outstanding 2023 Term Notes amounting to $238.5 million as of March 13, 2025, with net proceeds from issuance totaling $220.5 million after costs[131]. - The company issued 2024 Term Notes with outstanding amounts of $63 million as of March 13, 2025, generating net proceeds of $61 million after issuance costs[132]. - The 2023 Credit Facility provides a revolving credit facility of up to $240 million, with an option to increase by $60 million if certain financial ratios are met[135]. - As of March 13, 2025, the company has $195.4 million outstanding under the 2023 Credit Facility, with remaining committed funds of $44.6 million[135]. - The company faces significant operating and financial restrictions under its debt agreements, which may limit its ability to capitalize on business opportunities[137]. - The company may need to engage in equity or further debt financing to fund the planned expansion of Ting Internet and cover future operating losses[134]. Cybersecurity and Operational Risks - The company faces cybersecurity risks that could disrupt its business and result in financial and legal liabilities[80]. - Cybersecurity risks pose a threat to the company's domain name assets, potentially leading to reputational and financial harm[128]. - The company relies on third-party network operators and data centers, and any disruptions could lead to service interruptions and financial liabilities[101]. - The company faces potential disruptions in service offerings if its Network Operator's license is not renewed or if compliance requirements change, which could increase operational costs[160]. - The company is exposed to risks related to online payment fraud and chargebacks, which could negatively impact its financial results[80]. Future Outlook and Strategic Initiatives - The company aims to expand its fiber networks while maintaining liquidity and managing operational efficiencies[12]. - The company expects to realize savings primarily in sales and marketing, with a focus on completing builds in existing markets rather than expanding into new ones[50]. - The company anticipates that maintaining and enhancing its brands will become increasingly difficult and expensive as the market becomes more competitive[95]. - The company must continuously invest in technology and infrastructure to remain competitive, particularly in the face of advancements in wireless broadband and AI-driven services[99]. - The company has a stock repurchase program authorized for up to $40 million, expected to run from February 14, 2025, to February 13, 2026, but there is no guarantee it will enhance long-term shareholder value[174].

Financial Performance - The company is facing significant financial challenges, with an increase in liquidity risk reported for the current quarter [1] - In the third quarter of 2024, the company announced a reduction in the build-out of fiber infrastructure [1] Investment Perspective - The investment approach focuses on long-only strategies, evaluating companies from an operational and buy-and-hold perspective [1] - The analysis emphasizes understanding the long-term earnings potential of companies and the competitive dynamics within their industries [1] - Most investment calls are expected to be holds, indicating a cautious approach to market dynamics [1]

Financial Performance - Consolidated net revenue for Q4 2024 increased 7.1% to $93.1 million from $87.0 million in Q4 2023, driven by revenue gains from Ting and Tucows Domains[4] - Gross profit for Q4 2024 rose 19% to $21.2 million compared to $17.8 million in Q4 2023, primarily due to gains from Ting and Domains businesses[4] - Adjusted EBITDA for Q4 2024 increased 403% to $12.8 million from $2.6 million in Q4 2023, attributed to revenue growth and cost management in the Ting business[6] - For the full year 2024, consolidated net revenue increased 7% to $362.3 million from $339.3 million in 2023[9] - Full year gross profit for 2024 rose 25% to $83.0 million compared to $66.7 million in 2023[9] Net Loss and Adjusted Loss - Net loss for Q4 2024 was $45.3 million, or a loss of $4.11 per share, compared to a net loss of $23.4 million, or a loss of $2.14 per share in Q4 2023[5] - Adjusted net loss for Q4 2024 improved by 30% to $15.8 million, or an adjusted EPS of ($1.43), compared to an adjusted net loss of $22.4 million, or an adjusted EPS of ($2.05) in Q4 2023[5][20] Cash Flow and Debt Management - Cash equivalents at the end of Q4 2024 were $73.2 million, down from $91.1 million at the end of Q3 2024 and $92.7 million at the end of Q4 2023[7] - The company made progress in deleveraging, using cash flow from Wavelo and Tucows Domains to reduce syndicated debt[3] Operational Efficiency and Future Outlook - Management indicated ongoing optimization of revenue and cost efficiencies despite one-time impacts from impairment charges and restructuring costs[3] - Tucows expects to realize synergies from the Enom acquisition, contributing to future financial results[25] - The company anticipates growth in Ting Internet, although specific growth figures were not disclosed[25] - Forward-looking statements are subject to uncertainties and risks that could materially affect actual results[25]

Financial Data and Key Metrics Changes - The company achieved consolidated revenue growth for the fourth consecutive year, with a 7.1% year-over-year increase to $93.1 million in Q4 2024 [50][63] - Gross profit increased by 19% to $21.2 million, reflecting disciplined cost controls [50][51] - Adjusted EBITDA grew 403% to $12.8 million, driven by revenue growth and operational improvements [50][51] Business Line Data and Key Metrics Changes - Tucows Domains reported Q4 revenue of $65.7 million, up 6% year-over-year, with Adjusted EBITDA of $11.6 million, also up 8% [15][52] - Ting's revenue increased by 14% year-over-year to $15.7 million, with a significant improvement in gross margin to $11.0 million, up 40% [42][55] - Wavelo's revenue for the full year 2024 was $39.9 million, up from $38.7 million in 2023, with Adjusted EBITDA of $13.8 million, exceeding guidance [28][100] Market Data and Key Metrics Changes - Ting's subscriber base grew by 17% year-over-year, reaching 50,700 subscribers [42][55] - The total serviceable addresses for Ting increased to 178,800, with a 53% year-over-year growth in partner markets [43][55] Company Strategy and Development Direction - The company is focusing on optimizing operations, maximizing margins, and deleveraging to enhance long-term shareholder value [61][62] - Tucows Domains is exploring adjacent revenue opportunities and new products to drive growth in a mature industry [16][89] - Wavelo aims to balance growth and profitability while expanding its customer base and enhancing its go-to-market strategy [28][108] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum and the positive trajectory of Adjusted EBITDA, particularly for Ting [10][44] - The company anticipates significant changes in the fiber space in 2025, which could create new opportunities [47][119] - The impact of AI is expected to be transformative for the telecom industry, with Wavelo positioned to leverage this change [40][72] Other Important Information - The company authorized a buyback program for up to $40 million in Tucows stock for 2025 [12][63] - A one-time restructuring and impairment charge of $28.2 million was recorded, primarily related to Ting's capital efficiency plan [51][60] Summary of Q&A Session Questions and Answers - No live Q&A session was held; instead, stakeholders were invited to submit questions via email, with responses to be provided later [2][3][76]

Core Insights - Tucows Inc. reported strong operating revenue growth for the fourth consecutive year, with adjusted EBITDA reaching the top of the guidance range, primarily driven by improved results from Ting [2][3] - The company faced a net loss in Q4 2024 due to one-time impairment charges and restructuring costs, but excluding these, there were meaningful improvements in key financial metrics [2][4] Financial Performance - Consolidated net revenue for Q4 2024 increased by 7.1% to $93.1 million from $87.0 million in Q4 2023, driven by revenue gains from Ting and Tucows Domains [3][7] - Gross profit for Q4 2024 rose by 19% to $21.2 million compared to $17.8 million in Q4 2023, attributed to gains from Ting and Domains businesses [3][7] - Adjusted EBITDA for Q4 2024 surged by 403% to $12.8 million from $2.6 million in Q4 2023, mainly due to revenue growth and cost management in the Ting business [5][7] Loss and Adjusted Metrics - The net loss for Q4 2024 was $45.3 million, or a loss of $4.11 per share, compared to a net loss of $23.4 million, or a loss of $2.14 per share, in Q4 2023 [4][7] - Adjusted net loss for Q4 2024 was $15.8 million, or an adjusted EPS of ($1.43), an improvement from the adjusted net loss of $22.4 million and adjusted EPS of ($2.05) in Q4 2023 [4][18] Cash Position - Cash equivalents, restricted cash, and restricted cash equivalents at the end of Q4 2024 were $73.2 million, down from $91.1 million at the end of Q3 2024 and $92.7 million at the end of Q4 2023 [6][7] Business Segments - Ting Internet Services generated revenue of $15.7 million in Q4 2024, up from $13.8 million in Q4 2023, while Wavelo Platform Services reported revenue of $9.9 million [9] - Tucows Domain Services saw total revenue of $65.7 million in Q4 2024, compared to $61.8 million in Q4 2023, reflecting growth in both wholesale and retail segments [9] Management Commentary - Management emphasized the resilience of the business and ongoing efforts to optimize revenue and cost efficiencies, alongside progress in deleveraging through cash flow from Wavelo and Tucows Domains [2][19]

Core Points - Tucows Inc. has announced a new stock buyback program to repurchase up to $40 million of its common stock in the open market [1][2] - The buyback program will start on February 14, 2025, and will end on or before February 13, 2026 [2] - The previous buyback program, also worth $40 million, which began on February 23, 2024, has been terminated [2] Buyback Program Details - Purchases will be made exclusively through the Nasdaq Capital Market and will depend on available cash and market conditions [2][3] - Tucows may suspend or discontinue the repurchases at any time, particularly if it is deemed to be making an acquisition of its own shares under relevant regulations [3] - All shares purchased will be retired and returned to treasury [2] Financial Information - The buyback will be funded from available working capital and existing credit facilities [4] - As of February 12, 2025, Tucows had 11,030,156 common shares outstanding [4] Company Overview - Tucows provides internet access through various services including communications technology, domain services, and fiber-optic internet infrastructure [5] - The company operates Ting, which offers fixed fiber Internet access, and Wavelo, a telecommunications software suite [5] - Tucows Domains manages approximately 25 million domain names through a global reseller network [5]

Core Points - Tucows Inc. will report its financial results for the fourth quarter ended December 31, 2024, on February 13, 2025, at 5:05 p.m. ET [1] - A pre-recorded audio commentary and transcript discussing the quarter and outlook will be available on the Tucows website concurrently with the financial results release [2] - Shareholders, analysts, and prospective investors can submit questions to management for seven days following the results announcement, with responses to be posted on March 4, 2025 [3] Company Overview - Tucows connects people to internet access through various services including communications technology, domain services, and fiber-optic internet infrastructure [4] - The company operates Ting, which provides fixed fiber internet access, and Wavelo, a telecommunications software suite for service providers [4] - Tucows Domains manages approximately 25 million domain names and offers services through a global reseller network of over 35,000 web hosts and ISPs [4]