Tucows(US:TCX)2020-05-07 22:27Financial Data and Key Metrics Changes - Total revenue increased 6% year-over-year to $84 million, while gross profit increased 11% [19][43] - Net income increased just over 1% year-over-year to over $2.8 million, or $0.27 a share, while adjusted EBITDA increased 34% to $12.7 million [19][55] - Cash flow from operations was $14.1 million, up 57% from the first quarter of last year [20][56] Business Line Data and Key Metrics Changes - Domains business saw total gross margin dollars increase 20% year-over-year, with gross margin dollars for Domain Services increasing 23% [20][21] - Ting Mobile service revenue for Q1 was down 2.9% year-over-year, but gross margin on service revenue was flat versus a year ago [27][28] - Ting Internet showed continued progress with 11,600 Internet subscribers, despite temporary suspension of new installs [36][33] Market Data and Key Metrics Changes - Total wholesale registrations for the first quarter increased 5% year-over-year to 4.3 million, driven mainly by the Ascio acquisition [22] - Renewal rate for the Wholesale channel was 78%, consistent with recent performance and above the industry average [22] - Retail Domains channel saw total registrations up slightly to 421,000, following previous declines [24] Company Strategy and Development Direction - Company is taking a conservative view and planning for current circumstances to persist for the foreseeable future [61][63] - Management is rethinking installation practices, marketing practices, and product offerings, believing changes are more or less permanent [63][64] - The pandemic is seen as an acceleration of existing trends, with a focus on reliability and predictability of earnings [71][72] Management Comments on Operating Environment and Future Outlook - Management acknowledges the uncertainty in the current environment and emphasizes the importance of distinguishing between what can be known and what cannot [62] - The company is optimistic about the resilience of its business model, with all three business lines having strong performance during the pandemic [70][71] - Future growth opportunities are being evaluated, particularly in light of changes in consumer behavior and market dynamics [72][73] Other Important Information - The company has a renewed open market buyback program, allowing for the purchase of up to $40 million of its stock until February 2021 [60] - Deferred revenue at the end of the first quarter was $153 million, up from $149 million at the end of the fourth quarter of last year [58] Summary of Q&A Session Questions and Answers Question: What is the company's outlook regarding the impact of COVID-19 on its operations? - Management indicated that the pandemic has accelerated existing trends and that the company is adapting its practices accordingly [63][64] Question: How is the company managing its workforce and operations during the pandemic? - The company has moved to a distributed workforce model and has been proactive in adjusting installation processes to ensure safety [10][39]