Tucows(US:TCX)2019-02-14 00:10Financial Data and Key Metrics Changes - Total revenue for Q4 2018 was $85.6 million, down from $90.6 million in Q4 2017, but grew 2% year-over-year when excluding one-time events [8][30] - Net income decreased by 60% to $4.4 million compared to Q4 2017, which benefited from a $6 million impact from the Tax Cuts and Jobs Act [9][43] - Adjusted EBITDA for Q4 2018 increased by 9% to $16.6 million [9][44] - For the full year 2018, revenues increased by 5% to $346 million, while adjusted EBITDA rose by 21% to $50.1 million [10][44] Business Line Data and Key Metrics Changes - Domains business saw a 19% increase in gross margin dollars despite a 4% year-over-year decline in registrations [11] - Wholesale channel gross margin increased by 9% to $11.2 million, with a renewal rate of 77% [12][36] - Retail Domains channel registrations decreased to approximately 360,000 from 380,000 year-over-year, maintaining a renewal rate of 77% [13] - Ting Mobile service revenue was flat in Q4 but increased by 7% for the full year, with gross margin up 12% [15] - Ting Internet added over 5,500 serviceable addresses and 800 customers in Q4, reaching over 28,000 serviceable addresses [21] Market Data and Key Metrics Changes - The company experienced a churn rate of 3.11% in Q4, slightly higher than the previous quarter [18] - Ting Mobile's account growth was flat, with a total of 162,000 accounts and 296,000 subscribers at the end of Q4 [16] Company Strategy and Development Direction - The company plans to increase fiber CapEx from $25 million to $35 million, indicating a focus on expanding its fiber network [48][49] - A new open market buyback program was announced, allowing for the repurchase of up to $40 million worth of shares [55] - The company is focused on long-term investments in technology and infrastructure to support future growth [56][58] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about a potential recession impacting strategic decisions [55] - The company is optimistic about the growth potential of Ting Internet and the overall telecom business for the Internet age [59][60] Other Important Information - Deferred revenue decreased to $144 million at the end of Q4 2018, down from $161 million a year earlier [46] - The company highlighted the importance of addressing technology debt to improve operational efficiency [56] Q&A Session Summary Question: What is the outlook for the company's growth in 2019? - The company provided guidance of $62 million in cash EBITDA for 2019, indicating a projected 15% growth [48]