Tucows delivers on 2024 Adjusted EBITDA guidance and fourth consecutive year of revenue growth

Core Insights - Tucows Inc. reported strong operating revenue growth for the fourth consecutive year, with adjusted EBITDA reaching the top of the guidance range, primarily driven by improved results from Ting [2][3] - The company faced a net loss in Q4 2024 due to one-time impairment charges and restructuring costs, but excluding these, there were meaningful improvements in key financial metrics [2][4] Financial Performance - Consolidated net revenue for Q4 2024 increased by 7.1% to $93.1 million from $87.0 million in Q4 2023, driven by revenue gains from Ting and Tucows Domains [3][7] - Gross profit for Q4 2024 rose by 19% to $21.2 million compared to $17.8 million in Q4 2023, attributed to gains from Ting and Domains businesses [3][7] - Adjusted EBITDA for Q4 2024 surged by 403% to $12.8 million from $2.6 million in Q4 2023, mainly due to revenue growth and cost management in the Ting business [5][7] Loss and Adjusted Metrics - The net loss for Q4 2024 was $45.3 million, or a loss of $4.11 per share, compared to a net loss of $23.4 million, or a loss of $2.14 per share, in Q4 2023 [4][7] - Adjusted net loss for Q4 2024 was $15.8 million, or an adjusted EPS of ($1.43), an improvement from the adjusted net loss of $22.4 million and adjusted EPS of ($2.05) in Q4 2023 [4][18] Cash Position - Cash equivalents, restricted cash, and restricted cash equivalents at the end of Q4 2024 were $73.2 million, down from $91.1 million at the end of Q3 2024 and $92.7 million at the end of Q4 2023 [6][7] Business Segments - Ting Internet Services generated revenue of $15.7 million in Q4 2024, up from $13.8 million in Q4 2023, while Wavelo Platform Services reported revenue of $9.9 million [9] - Tucows Domain Services saw total revenue of $65.7 million in Q4 2024, compared to $61.8 million in Q4 2023, reflecting growth in both wholesale and retail segments [9] Management Commentary - Management emphasized the resilience of the business and ongoing efforts to optimize revenue and cost efficiencies, alongside progress in deleveraging through cash flow from Wavelo and Tucows Domains [2][19]