Tucows(US:TCX)2021-11-06 14:29Financial Data and Key Metrics Changes - Total revenue for Q3 2021 was $75.9 million, a 2% increase from $74.3 million in Q3 2020, driven by growth in Fiber Internet Services revenue [21][4] - Net income for Q3 2021 was $1.4 million or $0.13 per share, compared to $700,000 or $0.07 per share in Q3 2020 [5][28] - Cash flow from operations was $1.5 million, down from $11.4 million in Q3 2020, primarily due to short-term accounting impacts and supply chain measures [5][29] - Adjusted EBITDA for Q3 2021 was $12.2 million, compared to $13.3 million in Q3 2020 [6][28] Business Line Data and Key Metrics Changes - Domain Services revenue was essentially unchanged year-over-year, with gross margin slightly down to $18.5 million from $18.9 million [23][7] - Mobile Services revenue decreased by 4%, reflecting a 30-day loss of revenue from customers sold to DISH, but MSE revenue increased over 200% year-over-year [21][12] - Fiber Internet Services revenue increased by 42% year-over-year, with gross margin slightly up to just over $3 million [21][25] Market Data and Key Metrics Changes - Total registrations in the Domain Services segment were 3.8 million, down 6% from last year but in line with Q3 2019 [8][10] - Retail channel registrations were just over 370,000, down 4% from last year but up 2% from Q3 2019 [10] - The renewal rate for wholesale domains was 78%, down from around 80% historically, but still above the industry average [8] Company Strategy and Development Direction - The company plans to separate its three businesses further in 2022, allowing for operational efficiency and clearer investor communication [30][32] - The acquisition of Simply Bits is seen as a strategic move to leverage wireless expertise and expand market opportunities in Southern Arizona [17][18] - The company aims to double its serviceable addresses and subscribers in the Ting Internet business next year [16] Management Comments on Operating Environment and Future Outlook - Management noted that the MSE model is expected to become more predictable in 2022, with financial benefits from additional work coming in [14][15] - The company is optimistic about new market opportunities and plans to announce developments in the coming months [19] - Management emphasized the importance of culture and talent attraction as key differentiators for future growth [33] Other Important Information - The company experienced a 38% increase in network expenses due to depreciation on fiber network assets [27] - Deferred revenue at the end of Q3 was $152 million, down 2% from the previous quarter [29] Q&A Session Summary - The company invited written questions from shareholders and analysts, with responses to be posted on November 18 [36]