Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-32600 TUCOWS INC. (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of (I.R.S. Employer ...

Tucows Inc. (NASDAQ:TCX) Q3 2023 Earnings Conference Call November 2, 2023 8:00 PM ET Company Participants Monica Webb - Director of Market Development and Government Affairs Elliot Noss - President and CEO Dave Woroch - CEO of Tucows Domains Services Justin Reilly - CEO of Wavelo Davinder Singh - CFO Conference Call Participants Monica Webb Welcome to Tucows’ Third Quarter 2023 Management Commentary. We have prerecorded prepared remarks regarding the quarter and outlook for the company. A Tucows-generated ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-32600 TUCOWS INC. Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-acce ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-32600 TUCOWS INC. ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR Pennsylvania 23-2707366 96 Mowat Avenue, Toronto, Ontario M6K 3M1, Canada (Address of Principal Executive O ...

Infrastructure and Services - As of December 31, 2022, Ting Internet had access to 96,000 owned infrastructure serviceable addresses, up from 76,000 in 2021, and 35,000 active accounts, an increase from 26,000[23]. - Tucows aims to expand its Ting Internet services into new and existing markets, focusing on reliable Fiber and Fixed Wireless Internet services[22]. - Revenues from Ting are generated in the U.S. and billed on a monthly basis with no fixed contract terms, focusing on providing reliable Fiber and Fixed Wireless Internet services[22]. - The company aims to expand its Ting Internet footprint by obtaining additional financing to support the build-out of fiber networks into selected towns and cities[14]. - The company has made significant investments in its domain services, which include OpenSRS, eNom, Ascio, and EPAG[20]. Software and Technology - Wavelo's software solutions, including MONOS and ISOS, have been integrated into Ting Internet to enable faster subscriber growth and footprint expansion[24]. - Wavelo provides full-service platforms and professional services for Communication Services Providers (CSPs), focusing on subscription and billing management, network orchestration, and developer tools[24]. - Wavelo's revenues from its Mobile Network Operating System (MONOS), Internet Service Operating System (ISOS), Subscriber Management (SM) software, and professional services are primarily generated in the U.S.[24]. - Tucows' product suite for Wavelo is modular, allowing for integration with other best-in-class software, enhancing operational efficiency for customers[54]. Domain Management - Tucows Domains manages 24 million domain names under its registrar accreditations, contributing to a robust revenue stream from domain registration services[28]. - Tucows Domains generates revenue from registration fees for new, renewed, and transferred domain name registrations, as well as from value-added services[25]. - The retail segment includes the sale of domain name registration and email services, with a focus on personal names based on over 36,000 surname domains[30]. - The primary distribution channel for Tucows Domains is a global network of about 35,000 resellers operating in over 150 countries[26]. Organizational Structure and Workforce - The company has restructured its reporting segments into Ting, Wavelo, and Tucows Domains to better align with its operational focus and management strategies[20]. - Tucows has approximately 1,020 full-time employees and 80 contracted employees globally, with 55% based in Canada and 35% in the U.S.[50]. - Approximately 450 employees support the Ting segment, while 180 support Wavelo, and 260 support Tucows Domains[50]. - The company emphasizes a flexible, remote-first work environment, allowing employees to choose their work style[52]. - The company offers competitive compensation, including employee stock options and health benefits[51]. Governance and Compliance - The company remains active in Internet governance and is recognized as a defender of end-user rights and reseller-friendly business practices[32]. - Tucows has registered the Tucows trademark in the U.S., Canada, and the European Union, ensuring protection of its intellectual property rights[33]. - The company is committed to an Open Internet and does not engage in practices like blocking or throttling content[61]. - The Wavelo Segment is less subject to government regulations, focusing on subscription and billing management[63]. - Tucows Domains segment is governed by ICANN and various federal and state laws, impacting domain name registration capabilities[64]. - Compliance with GDPR could result in fines up to 4% of the company's annual total revenue for violations[68]. - The company operates under the filing requirements of the Securities Exchange Act of 1934, ensuring transparency in financial reporting[73]. Financial Performance and Strategy - The business model is characterized by non-refundable, up-front payments leading to recurring revenue from renewals, contributing to positive operating cash flow[27]. - The management regularly reviews revenue for each service offering to forecast growth and monitor the effectiveness of operational strategies[21]. - The company has a focus on increasing the number of services offered to generate higher revenues[14]. - The company faces significant competition from traditional BSS/OSS providers and retail-oriented domain registrars, impacting its market strategies[42]. - No customer represented more than 10% of consolidated revenues in any of the last three fiscal years, indicating a diversified customer base[37]. Leadership - The Chief Executive Officer reviews the operating results of the three segments to make key operating decisions and evaluate segment performance[20]. - The Chief Financial Officer has been with the company since 2017, previously holding roles at KPMG and TELUS[77]. - The Chief Executive Officer of Tucows Domains has led the business since 2014, overseeing multiple domain services[78]. - The Chief Operating Officer joined in 2022, bringing experience from previous COO roles in other organizations[80]. Health and Safety - Tucows has implemented a vaccination policy for employees who work in offices or meet customers in person, ensuring safety during the COVID-19 pandemic[53]. - The company has established a Fiber Internet install solution to minimize risks associated with person-to-person contact during the COVID-19 pandemic[53].

Tucows Inc. (NASDAQ:TCX) Q4 2022 Earnings Conference Call February 9, 2023 5:00 PM ET Company Participants Monica Webb - Director of Market Development and Government Affairs Elliot Noss - President and CEO Dave Woroch - CEO of Tucows Domains Services Justin Reilly - CEO of Wavelo Davinder Singh - CFO Conference Call Participants Monica Webb Welcome to Tucows’ Fourth Quarter 2022 management commentary. We have pre-recorded prepared remarks regarding the quarter and outlook for the company. A Tucows-generate ...

Tucows Inc. (NASDAQ:TCX) Q3 2022 Earnings Conference Call November 3, 2022 5:30 PM ET Company Participants Monica Webb - Director of Market Development and Government Affairs Elliot Noss - President and CEO David Woroch - CEO of Tucows Domains Services Justin Reilly - CEO of Wavelo Davinder Singh - CFO Conference Call Participants Monica Webb Welcome to Tucows Third Quarter 2022 Management Commentary. We have prerecorded prepared remarks regarding the quarter and outlook for the company. A Tucows-generated ...

Financial Performance - For Q3 2022, the company reported net revenue of $78.1 million, a 2.9% increase from $75.9 million in Q3 2021[138]. - For the nine months ended September 30, 2022, net revenue reached $242.2 million, up 9.1% from $221.9 million in the same period of 2021[138]. - Total net revenues for the three months ended September 30, 2022 increased by $2.2 million, or 3%, to $78.1 million compared to the same period in 2021[188]. - Total net revenues for the nine months ended September 30, 2022 increased by $20.3 million, or 9%, to $242.2 million compared to the same period in 2021[189]. - Ting generated $10.9 million in net revenue during the three months ended September 30, 2022, up $4.5 million or 70% compared to the same period in 2021[193]. - Ting generated $31 million in net revenue during the nine months ended September 30, 2022, up $14 million or 82% compared to the same period in 2021[194]. - Wavelo's net revenues for the three months ended September 30, 2022 increased by $0.2 million to $4 million compared to the same period in 2021[196]. - Wavelo's net revenues for the nine months ended September 30, 2022 increased by $10.9 million to $18.1 million compared to the same period in 2021[197]. - Net income for the nine months ended September 30, 2022, was $15.5 million, a decrease of 38% compared to the prior year[278]. Revenue Segments - Ting segment focuses on providing reliable Gigabit Internet services, with ongoing expansion into new and existing markets[141]. - Wavelo segment offers full-service platforms for Communication Services providers, enhancing telecom software accessibility globally[142]. - Tucows Domains segment manages 24.5 million domain names and derives revenue from domain registration and value-added services[147]. - The revenue from Tucows Domains is primarily derived from domain name registrations and related value-added services, which are subject to competitive pricing pressures[162]. - Net revenues from Other Professional Services increased to $1.8 million for the nine months ended September 30, 2022, compared to zero revenues in the same period of 2021[199]. - Wholesale domain services net revenue decreased by $1.2 million to $140.8 million for the nine months ended September 30, 2022, driven by normalization of domain name registration growth[201]. - Retail domain services net revenue decreased by $0.9 million or 3% to $26.0 million for the nine months ended September 30, 2022, driven by decreased retail domain name registrations[206]. - Net revenues from Tucows Corporate decreased by $4.9 million or 37% to $8.5 million for the nine months ended September 30, 2022, primarily due to decreased transitional services[208]. Subscriber Growth - Ting Internet accounts under management increased to 33,000 in Q3 2022 from 23,000 in Q3 2021, representing a growth of 43.5%[152]. - Ting Internet owned infrastructure serviceable addresses rose to 90,000 in Q3 2022 from 68,000 in Q3 2021, a growth of 32.4%[152]. - The increase in Ting's revenue was driven by subscriber growth and the continued expansion of its Fiber network footprint across the United States[189]. Costs and Expenses - Personnel costs across operating segments were impacted by wage inflation, with increases exceeding 5% to remain competitive[169]. - Total cost of revenues for the three months ended September 30, 2022, increased by $2.2 million, or 4%, to $60.1 million from $57.9 million in the same period of 2021[221]. - For the nine months ended September 30, 2022, total cost of revenues increased by $12.9 million, or 8%, to $181 million from $168.1 million in the same period of 2021[222]. - Costs related to provisioning high-speed Internet access for the three months ended September 30, 2022, increased by $0.7 million or 19%, to $4.3 million compared to $3.6 million in the same period of 2021[224]. - Costs related to provisioning high-speed Internet access for the nine months ended September 30, 2022, increased by $3.5 million or 38%, to $12.7 million compared to $9.2 million in the same period of 2021[225]. - Sales and marketing expenses for the three months ended September 30, 2022, increased by $4.0 million, or 40%, to $13.9 million compared to $9.9 million in the same period of 2021[242]. - Sales and marketing expenses for the nine months ended September 30, 2022, increased by $11.8 million, or 43%, to $39.4 million compared to $27.6 million in the same period of 2021[243]. - General and administrative expenses for the three months ended September 30, 2022 increased by $2.8 million, or 56%, to $7.9 million compared to the same period in 2021[248]. - General and administrative expenses for the nine months ended September 30, 2022 increased by $6.8 million, or 44%, to $22 million compared to the same period in 2021[249]. Financing and Debt - The company has access to a $240 million Credit Facility, with a maturity extended to June 14, 2024[140]. - The maximum Total Funded Debt to Adjusted EBITDA Ratio is set at 4.00:1.00 until September 29, 2023, and 3.75:1.00 thereafter[140]. - The company requires additional financing to expand the Ting Internet footprint, with a standby fee of 0.50% on an unpaid capital commitment of $140 million[281]. - As of September 30, 2022, the company had an outstanding balance of $238.9 million on the Amended Credit Agreement, which includes SOFR Loans[292]. - Net cash inflows from financing activities increased by 243% to $104.6 million for the nine months ended September 30, 2022, driven by $60 million from redeemable preferred shares and $48.3 million from the Credit Facility drawdown[279]. Market and Economic Factors - The company is actively monitoring the impacts of COVID-19, geopolitical developments, and economic factors such as inflation and interest rates[132]. - The ongoing global COVID-19 pandemic has had limited financial and operational impacts on the company, with trends stabilizing in U.S. markets[167]. - A hypothetical 10% adverse movement in foreign currency exchange rates would decrease net income by approximately $1.5 million for the three months ended September 30, 2022[288]. - The company’s financial results are sensitive to changes in foreign currency exchange rates and interest rates[283]. Adjusted EBITDA - Adjusted EBITDA is disclosed to enhance understanding of financial performance, excluding certain non-cash and other charges[151]. - Adjusted EBITDA decreased by $4.3 million to $7.9 million for the three months ended September 30, 2022, compared to the same period in 2021[266]. - For the nine months ended September 30, 2022, adjusted EBITDA decreased by $5.2 million to $30.9 million compared to the prior year, primarily due to increased investments in Ting's Fiber Internet network[267].

Tucows Inc. (NASDAQ:TCX) Q2 2022 Earnings Conference Call August 9, 2022 5:05 PM ET Company Participants Monica Webb - Senior Director, Market Development and Strategic Partnerships, and Investor Relations Elliot Noss - President and Chief Executive Officer David Woroch - Chief Executive Officer of Tucows Domains Justin Reilly - Chief Executive Officer of Wavelo Dave Singh - Chief Financial Officer Conference Call Participants Monica Webb Welcome to Tucows’ Second Quarter 2022 Management Commentary, we have ...

08.09.2022 Investor presentation tuco%s Nasdaq (TCX) | TSX (TC) Safe Harbor Statement 2 This presentation may contain forward-looking statements, relating to the Company's operations or to the environment in which it operates, which are based on Tucows Inc.'s operations, estimates, forecasts and projections. These statements are not guarantees of future performance and are subject to important risks, uncertainties and assumptions concerning future conditions that may ultimately prove to be inaccurate or dif ...