Tucows(TCX) - 2024 Q3 - Quarterly Results

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]