Financial Data and Key Metrics - Consolidated revenue for Q3 2024 increased 6.1% YoY to $92.3 million, driven by growth in Ting and Domains businesses [30] - Tucows Domains revenue grew 5.9% YoY to $64.7 million, with gross margin up 7.8% to $19.8 million [30][34] - Ting revenue increased 19% YoY to $15.3 million, with gross margin up 38% to $11 million [31][34] - Wavelo revenue decreased 9% YoY to $10.1 million, with gross margin down 4.6% to $10 million [31][35] - Adjusted EBITDA for Q3 2024 was $8.7 million, up 94% YoY, driven by profitability improvements in Ting and Domains [37] Business Line Performance - Tucows Domains delivered its seventh consecutive quarter of revenue growth, with domain services revenue up 6% YoY to $64.7 million [11][12] - Wholesale channel revenue for Domains increased 6% YoY to $55 million, with value-added services gross margin up 26% YoY [13] - Retail channel revenue for Domains grew 5% YoY to $9.7 million, with gross margin up 8% YoY [14] - Wavelo's revenue decreased 9% YoY to $10.1 million, primarily due to churn from DISH's Boost subscribers [17][31] - Ting added 1,400 net new subscribers in Q3, growing 21% YoY to nearly 50,000 subscribers [26] Market and Strategic Focus - Ting has shifted focus from market expansion to improving penetration, churn, and ARPU, with plans to stop all new market expansions [7][29] - Ting expects to reach adjusted EBITDA breakeven in 2025, with significant growth in adjusted EBITDA for Tucows overall [9] - Wavelo is focusing on larger telecom prospects, with sales cycles targeting MNOs, MVNOs, and ISPs with complex systems [22] - Tucows Domains continues to invest in platform and infrastructure development, with registry services being a key midterm opportunity [15] Management Commentary on Industry and Outlook - The fiber mid-market has seen little to no common equity transactions in the past year, making it challenging for Ting to secure long-term equity partners [7] - Telecom is entering an era of compounding inefficiency due to convergence, consolidation, and shifting customer needs, creating opportunities for Wavelo's platform [23] - Ting's fiber business is seen as a long-term value driver, with a focus on loading existing footprints and improving operational KPIs [44][45] - The company expects a dynamic environment for small fiber ISPs in 2025, with Ting positioned to benefit from its operational focus [47] Other Important Information - Tucows laid off over 40% of the Ting workforce, reducing cash operating expenses by $22 million, primarily in people costs [6] - The company had $75.2 million in cash and cash equivalents at the end of Q3 2024, with $15.9 million classified as restricted cash [39] - Ting's CapEx spend decreased from $12 million in Q2 to $8.2 million in Q3, with future CapEx expected to be near exclusively success-based [28] - The company repaid $2.5 million on its syndicated loan in Q3, with a leverage ratio of 3.9x [41] Q&A Summary - No live Q&A session was conducted during the call. Shareholders and analysts were invited to submit questions via email, with responses to be posted on the company's website by November 26 [2][49]

Financial Performance - Consolidated net revenue for Q3 2024 increased by 6.1% to $92.3 million from $87.0 million in Q3 2023, driven by revenue gains from Ting and Domains[3] - Gross profit for Q3 2024 rose by 32.4% to $22.2 million compared to $16.8 million in Q3 2023, primarily due to significant gross margin gains from Ting and Domains[4] - Adjusted EBITDA for Q3 2024 increased by 94.3% to $8.7 million from $4.5 million in Q3 2023, attributed to revenue growth from Domains and Ting, along with cost management in the Ting business[6] - Net loss for Q3 2024 was $22.3 million, or a loss of $2.03 per share, an improvement from a net loss of $22.8 million, or $2.09 per share, in Q3 2023[5] Cash and Liquidity - Cash equivalents at the end of Q3 2024 were $91.1 million, up from $52.2 million at the end of Q2 2024, but down from $122.4 million at the end of Q3 2023[7] - The net cash used in operating activities for the first nine months of 2024 was $(14.95) million, a slight increase in cash outflow compared to $(13.77) million in the same period of 2023[8] Revenue Breakdown - Revenue from Ting Internet Services for Q3 2024 was $15.3 million, up from $12.9 million in Q3 2023, reflecting a year-over-year growth[9] - Total revenue from Tucows Domain Services for Q3 2024 was $64.7 million, compared to $61.1 million in Q3 2023, indicating a growth of approximately 4.3%[9] Operational Efficiency - The company undertook a second workforce reduction in the Ting business as part of a capital efficiency plan aimed at maximizing existing network contributions[2] - Tucows continues to focus on cost controls across all businesses while aiming for revenue and margin gains[2] Future Outlook - Tucows expects to realize synergies from the Enom acquisition, contributing to future financial results[18] - The company anticipates growth in Ting Internet, although specific growth figures were not disclosed[18] - Forward-looking statements are subject to uncertainties and risks that could materially affect actual results[18]

Core Viewpoint - Tucows Inc. demonstrated a clear focus on revenue and margin improvement in Q3 2024, primarily driven by the Ting Internet and Tucows Domain segments, alongside strategic workforce reductions to enhance capital efficiency [1][10]. Q3 Results - The company reported a net loss of $2.03 per share, an improvement from the $2.09 loss in the same quarter last year [2]. - Total revenues for the quarter reached $92.3 million, reflecting a 6.1% increase from $87 million in the prior-year quarter [2]. Segmental Performance - **Ting Internet Services**: Revenues increased by 19% to $15.3 million from $12.9 million year-over-year, with gross margin rising to $10.9 million from $8 million [3]. - **Wavelo Platform Services**: Revenues declined by 9% to $10.1 million from $11.1 million year-over-year, attributed to reduced revenues in other professional services [4]. - **Tucows Domain Services**: Revenue grew by 6% to $64.7 million from $61.1 million year-over-year, with wholesale domain services revenue rising to $55 million from $51.9 million [5]. Profitability Metrics - Gross profit increased by 32.4% to $22.2 million from $16.8 million year-over-year, driven by margin improvements in the Ting Internet and Tucows Domain segments [6]. - Adjusted EBITDA surged by 94.3% to $8.7 million from $4.5 million year-over-year, resulting from improved revenues and stringent cost management [7]. Cost Analysis - Total network expenses decreased by 10% from $19.5 million in Q3 2023 to $17.5 million in Q3 2024, reflecting lower impairment charges and operational efficiencies [8]. Cash, Debt & Capital Expenditure - At the end of Q3 2024, the company held $91.1 million in cash, up from $52.2 million in Q2 2024 but down from $122.4 million a year ago [9]. - The company is focused on deleveraging and maintaining a robust balance sheet through cost-control initiatives [9]. Other Developments - Tucows completed a second round of workforce reductions in the Ting Internet division as part of its restructuring strategy, contributing to an improved cost structure [10].

Financial Performance - For the three months ended September 30, 2024, the company reported net revenue of $92.3 million, an increase from $87.0 million for the same period in 2023, representing a growth of approximately 2.9%[190] - Total net revenues for the three months ended September 30, 2024, increased by $5.3 million or 6%, to $92.3 million compared to the same period in 2023[245] - Total net revenues for the nine months ended September 30, 2024, increased by $16.8 million or 7%, to $269.2 million compared to the same period in 2023[246] - Ting generated $15.3 million in net revenue during the three months ended September 30, 2024, up $2.5 million or 19% compared to the same period in 2023[251] - Net revenues from Wavelo Platform Services increased by $2.4 million or 9% to $29.9 million for the nine months ended September 30, 2024, compared to the same period in 2023[255] - Net revenues from Other Professional Services decreased by $1.6 million or 98% to $26,000 for the nine months ended September 30, 2024, compared to the same period in 2023[257] - Wholesale domain services net revenue increased by $5.8 million or 4% to $146.5 million for the nine months ended September 30, 2024, compared to the same period in 2023[259] - Retail domain services net revenue increased by $1.9 million or 7% to $28.0 million for the nine months ended September 30, 2024, compared to the same period in 2023[264] - Net revenues from Mobile Services increased by $0.4 million or 7% to $6.3 million for the nine months ended September 30, 2024, compared to the same period in 2023[266] Subscriber Growth - As of September 30, 2024, Ting Internet had 50,000 active subscribers, up from 41,000 active subscribers as of September 30, 2023, indicating a growth of approximately 22%[192] - Internet subscribers under management increased to 50,000 in September 2024, up from 41,000 in September 2023, representing a growth of 21.95%[206] - Wavelo's integration into Ting Internet has enabled faster subscriber growth and footprint expansion, with revenues tied to subscriber volumes[214] Infrastructure and Services - Ting Internet had access to 132,000 owned infrastructure serviceable addresses, an increase from 114,000 in the previous year, reflecting a growth of approximately 15.8%[192] - The company operates three segments: Ting, Wavelo, and Tucows Domains, each focusing on distinct services and markets[188] - Tucows Domains manages 24.6 million domain names, with an increase of less than 0.1 million, or less than 1%, since September 30, 2023[202] - Total domain names under management reached 24,565 in September 2024, slightly up from 24,543 in September 2023, indicating a growth of 0.09%[209] Cost Management and Efficiency - The company incurred non-recurring charges of approximately $2.6 million related to a workforce reduction aimed at streamlining operations within the Ting segment[194] - The Capital Efficiency Plan is expected to incur non-recurring charges of approximately $7.4 million, impacting about 42% of Ting's workforce[195] - The company anticipates that the workforce reductions and Capital Efficiency Plan will lead to savings primarily in sales and marketing, with smaller impacts in other operational areas[196] - The company has executed a capital efficiency plan that will significantly slow new Ting Internet footprint expansion, potentially impacting long-lived asset values[222] Financial Obligations and Risks - Cash and cash equivalents decreased by $17.5 million as of September 30, 2024, primarily due to $44.8 million invested in property and equipment for Ting Internet expansion[326] - Net cash outflows from operating activities for the nine months ended September 30, 2024, totaled $15.0 million, a 9% increase compared to the same period in 2023[332] - The Company ended September 30, 2024, with a remaining principal balance of $197.4 million on the 2023 Credit Facility, with repayments due in 2026[330] - Ting may not meet its financial obligations over the twelve months following September 30, 2024, without additional financing[342] - The company is subject to market risk exposure related to changes in interest rates under the 2023 Credit Agreement[346] Internal Controls and Compliance - The company is in the process of remediating a material weakness in internal control over financial reporting[359] - Management concluded that disclosure controls and procedures were not effective due to a material weakness in internal control over financial reporting as of September 30, 2024[356] - The company believes its consolidated statements fairly represent its financial position, results of operations, and cash flows despite the material weakness[357] - The company is involved in various investigations and lawsuits, none of which are believed to materially harm the business[360] Adjusted EBITDA - Adjusted EBITDA for Q3 2024 increased by $4.2 million or 94%, reaching $8.7 million compared to Q3 2023, primarily driven by subscriber growth in Ting and reduced sales and marketing expenses[323] - For the nine months ended September 30, 2024, Adjusted EBITDA rose by $9.2 million or 71%, totaling $22.1 million, with significant contributions from Ting, Wavelo, and Tucows Domains[324] - Ting's contribution to Adjusted EBITDA increased by $10.7 million for the nine months ended September 30, 2024, driven by subscriber growth and reduced spending[324]

Core Insights - Tucows Inc. reported strong year-over-year growth in revenue, gross profit, and adjusted EBITDA for Q3 2024, emphasizing revenue generation and cost control measures [2][3][6] Financial Performance - Consolidated net revenue for Q3 2024 increased by 6.1% to $92.3 million from $87.0 million in Q3 2023, primarily driven by revenue gains from Ting and Domains [3][9] - Gross profit for Q3 2024 rose by 32.4% to $22.2 million from $16.8 million in Q3 2023, attributed to significant gross margin improvements from Ting and Domains [4][9] - Adjusted EBITDA for Q3 2024 surged by 94.3% to $8.7 million from $4.5 million in Q3 2023, mainly due to revenue growth from Domains and Ting, along with effective cost management in the Ting business [6][9] Loss and Cash Flow - The net loss for Q3 2024 was $22.3 million, or a loss of $2.03 per share, compared to a net loss of $22.8 million, or $2.09 per share, in Q3 2023, reflecting improved revenue and gross profit along with reduced operating expenses [5][9] - Cash equivalents at the end of Q3 2024 were $91.1 million, an increase from $52.2 million at the end of Q2 2024, but a decrease from $122.4 million at the end of Q3 2023 [7][9] Business Segments - In the Ting Internet Services segment, revenue for Q3 2024 was $15.3 million, up from $12.9 million in Q3 2023, while gross profit increased significantly [9][10] - The Wavelo platform services generated $10.1 million in revenue for Q3 2024, slightly down from $10.7 million in Q3 2023, indicating a need for strategic adjustments [9][10] Management Commentary - Management highlighted the implementation of cost controls and a workforce reduction in the Ting business as part of a capital efficiency plan aimed at maximizing existing network contributions [2][5]

Capital Efficiency Plan - Tucows Inc has implemented a capital efficiency plan, including significant layoffs in its Ting business and at the head office level, as part of a shared services reorganization [1] - The plan impacts approximately 42% of Ting's workforce and 17% of Tucows' total workforce [2] - The decision was made to cut expenses and move towards Ting becoming self-sufficient, with the goal of transitioning Ting to a cash-generating business that sustains its own operations and growth [2] Financial Impact and Goals - The capital efficiency plan is expected to lead to significant Adjusted EBITDA growth for Tucows in 2025, with Ting business projected to be around Adjusted EBITDA breakeven in 2025 [2] - The plan aims to put Ting and Tucows businesses back on paths of growing Adjusted EBITDA, with a focus on increasing penetration within existing footprints and large partner markets like Memphis and Colorado Springs [2] - The company has secured capital from a recent asset-backed securitization to support this plan [2] Upcoming Details - The capital efficiency plan will be discussed in more detail in the upcoming Q3 2024 Management Remarks on November 7, 2024 [3] - Links to the third quarter remarks and related earnings reports will be available on Tucows' investor relations website [3] Company Overview - Tucows Inc is a global internet services leader, providing communications service technology, domain services, and fiber-optic internet infrastructure [4] - Ting delivers fixed fiber Internet access with outstanding customer support, while Wavelo offers a telecommunications software suite for service providers [4] - Tucows Domains manages approximately 25 million domain names and millions of value-added services through a global reseller network of over 35,000 web hosts and ISPs [4] - Hover provides domain name and email management services for individuals and small businesses [4]

TORONTO, Oct. 24, 2024 /PRNewswire/ - Tucows Inc. (NASDAQ: TCX) (TSX: TC) today announced that it will report its financial results for the third quarter ended September 30, 2024, via news release on Thursday, November 7, 2024 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, November 7, 2024, management's pre-recorded audio commentary and transcript discussing the quarter and outlook for the Company will be posted to the Tucows w ...

TORONTO, Aug. 20, 2024 /PRNewswire/ - Tucows Inc. (NASDAQ: TCX) (TSX: TC), announced today that its subsidiary, Ting Fiber, LLC ("Ting"), has closed an offering by one of its subsidiaries for $63 million. The offering consists of Series 2024-1 Fixed Rate Senior Secured Notes, Class A-2 and Class B, (collectively, the "Notes"), maturing August 2054. All figures are in U.S. dollars. Ting will use the net proceeds from the Notes to fund the expansion of its fiber networks, create capacity for growth, and other ...

Exhibit 99.1 Monica Webb, Vice President, Investor Relations mwebb@tucows.com I 647.898.9924 Tucows Reports Financial Results for Second Quarter 2024 TORONTO, August 8, 2024 – Tucows Inc. (NASDAQ:TCX, TSX:TC), a global internet services leader, today reported its financial results for the second quarter ended June 30, 2024. All figures are in U.S. dollars. "We finished the second quarter of 2024 with strong year-over-year growth of consolidated revenue, gross profit and adjusted EBITDA, driven by a solid qu ...

Tucows Inc. (TCX) reported a narrower net loss in the second quarter of 2024, driven by solid revenue growth across its key segments and improved cost management, particularly within its Ting Internet Services division. Despite ongoing challenges related to increased network-related expenses, TCX saw notable improvements in gross profit and adjusted EBITDA, reflecting the company's strategic focus on operational efficiencies and scaling its infrastructure. The continued execution of a deleveraging strategy, ...