Tucows Announces Capital Efficiency Plan

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]