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Tucows(TCX) - 2024 Q4 - Earnings Call Transcript
TCXTucows(TCX)2025-02-13 23:45

Financial Data and Key Metrics Changes - The company achieved consolidated revenue growth for the fourth consecutive year, with a 7.1% year-over-year increase to 93.1millioninQ42024[50][63]Grossprofitincreasedby1993.1 million in Q4 2024 [50][63] - Gross profit increased by 19% to 21.2 million, reflecting disciplined cost controls [50][51] - Adjusted EBITDA grew 403% to 12.8million,drivenbyrevenuegrowthandoperationalimprovements[50][51]BusinessLineDataandKeyMetricsChangesTucowsDomainsreportedQ4revenueof12.8 million, driven by revenue growth and operational improvements [50][51] Business Line Data and Key Metrics Changes - Tucows Domains reported Q4 revenue of 65.7 million, up 6% year-over-year, with Adjusted EBITDA of 11.6million,alsoup811.6 million, also up 8% [15][52] - Ting's revenue increased by 14% year-over-year to 15.7 million, with a significant improvement in gross margin to 11.0million,up4011.0 million, up 40% [42][55] - Wavelo's revenue for the full year 2024 was 39.9 million, up from 38.7millionin2023,withAdjustedEBITDAof38.7 million in 2023, with Adjusted EBITDA of 13.8 million, exceeding guidance [28][100] Market Data and Key Metrics Changes - Ting's subscriber base grew by 17% year-over-year, reaching 50,700 subscribers [42][55] - The total serviceable addresses for Ting increased to 178,800, with a 53% year-over-year growth in partner markets [43][55] Company Strategy and Development Direction - The company is focusing on optimizing operations, maximizing margins, and deleveraging to enhance long-term shareholder value [61][62] - Tucows Domains is exploring adjacent revenue opportunities and new products to drive growth in a mature industry [16][89] - Wavelo aims to balance growth and profitability while expanding its customer base and enhancing its go-to-market strategy [28][108] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum and the positive trajectory of Adjusted EBITDA, particularly for Ting [10][44] - The company anticipates significant changes in the fiber space in 2025, which could create new opportunities [47][119] - The impact of AI is expected to be transformative for the telecom industry, with Wavelo positioned to leverage this change [40][72] Other Important Information - The company authorized a buyback program for up to 40millioninTucowsstockfor2025[12][63]Aonetimerestructuringandimpairmentchargeof40 million in Tucows stock for 2025 [12][63] - A one-time restructuring and impairment charge of 28.2 million was recorded, primarily related to Ting's capital efficiency plan [51][60] Summary of Q&A Session Questions and Answers - No live Q&A session was held; instead, stakeholders were invited to submit questions via email, with responses to be provided later [2][3][76]