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, Aug. 8, 2024 /PRNewswire/ - 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 quarter from Ting with robust subscriber growth, gross margin increases and a lower operating loss, which is on track with our expectation ...

Concurrent with the dissemination of its quarterly financial results news release at 5:05 p.m. ET on Thursday, August 8, 2024, management's pre-recorded audio commentary and transcript discussing the quarter and outlook for the Company will be posted to the Tucows website at http://www.tucows.com/investors/financials. SOURCE Tucows Inc. About Tucows Following management's prepared commentary, for the subsequent seven days, until Thursday, August 15, 2024, shareholders, analysts and prospective investors can ...

1. Election of Directors TORONTO, July 11, 2024 /PRNewswire/ - Tucows Inc. (NASDAQ: TCX) (TSX: TC) The following matters were voted upon at the Tucows Annual Meeting of Shareholders held on June 20, 2024. Each of the matters is described in greater detail in the 2024 Notice of Annual Meeting of Shareholders and Proxy Statement, available at www.tucows.com/investors/filings. Each of the eight nominees listed in the Tucows Proxy Statement dated May 10, 2024, was elected as a director to serve until the next a ...

TORONTO, June 28, 2024 /PRNewswire/ - Tucows Inc. (NASDAQ: TCX) (TSX: TC), a global internet services leader, announced today that it has named Ivan Ivanov as its new Chief Financial Officer (CFO), effective August 5, 2024. Ivanov assumes the role from Dave Singh—who has been with Tucows since 2017— as he steps down to pursue other opportunities. SOURCE Tucows Inc. "I am excited to welcome Ivan to the Tucows family. Ivan is an accomplished business leader with highlyrelevant financial expertise, including s ...

Tucows' growth is highlighted by a 25.6% year-over-year increase in Ting Internet subscribers and an 8.7% rise in net revenues for the first quarter of 2024. These improvements are driven by the expansion of serviceable addresses and robust performances across all segments. Ting Internet provides high-speed internet services through Gigabit Fiber and Fixed Wireless, focusing on both consumer and business markets in the United States. Ting's strategic expansion has led to a 22.5% year-overyear increase in se ...

TORONTO, June 10, 2024 /PRNewswire/ - Earlier today, Wavelo—a software company modernizing telecom operations—launched a new product catalog that will unlock a critical advantage for communication service providers (CSPs) globally as they compete for customer retention and acquisition. As the backbone of any successful telecom operation, an effective product catalog provides a comprehensive overview of available offerings and drives customer engagement. Once established, a flexible product catalog allows op ...

Tucows Inc. (NASDAQ:TCX) Q1 2024 Results Conference Call May 9, 2024 5:00 PM ET Company Participants Monica Webb - Director of Market Development and Government Affairs Elliot Noss - President and CEO Dave Woroch - CEO, Tucows Domains Justin Reilly - CEO, Wavelo Dave Singh - CFO Monica Webb Welcome to Tucows' First Quarter 2024 Management Commentary. We have prerecorded prepared remarks regarding the quarter and outlook for the Company. A Tucows-generated transcript of these remarks, with relevant links, is ...