Tucows delivers on 2024 Adjusted EBITDA guidance and fourth consecutive year of revenue growth
Tucows (NASDAQ: TCX) reported its Q4 and full-year 2024 results, marking its fourth consecutive year of revenue growth. Q4 consolidated net revenue increased 7.1% to $93.1 million, with gross profit up 19% to $21.2 million. However, the company recorded a net loss of $45.3 million ($4.11 per share) in Q4, primarily due to one-time impairment charges in Ting and restructuring costs.
Adjusted EBITDA for Q4 2024 showed significant improvement, increasing 403% to $12.8 million from $2.6 million in Q4 2023, driven by revenue growth from Domains and Ting businesses, along with improved cost management. The company's cash position at the end of Q4 2024 stood at $73.2 million, down from $91.1 million in Q3 2024.
The company made progress in deleveraging its business, using cash flow from Wavelo and Tucows Domains to reduce syndicated debt. Despite one-time charges affecting Q4 profitability, management reported meaningful improvements across key financial metrics through revenue and cost optimization.
Tucows (NASDAQ: TCX) ha riportato i risultati del quarto trimestre e dell'intero anno 2024, segnando il quarto anno consecutivo di crescita dei ricavi. I ricavi netti consolidati del Q4 sono aumentati del 7,1% a 93,1 milioni di dollari, con un utile lordo cresciuto del 19% a 21,2 milioni di dollari. Tuttavia, l'azienda ha registrato una perdita netta di 45,3 milioni di dollari (4,11 dollari per azione) nel Q4, principalmente a causa di oneri di impairment una tantum in Ting e costi di ristrutturazione.
EBITDA rettificato per il Q4 2024 ha mostrato un miglioramento significativo, aumentando del 403% a 12,8 milioni di dollari rispetto ai 2,6 milioni di dollari del Q4 2023, trainato dalla crescita dei ricavi delle attività Domains e Ting, insieme a una migliore gestione dei costi. La posizione di cassa dell'azienda alla fine del Q4 2024 era di 73,2 milioni di dollari, in calo rispetto ai 91,1 milioni di dollari del Q3 2024.
L'azienda ha fatto progressi nella riduzione dell'indebitamento, utilizzando il flusso di cassa da Wavelo e Tucows Domains per ridurre il debito sindacato. Nonostante gli oneri una tantum che hanno influito sulla redditività del Q4, la direzione ha riportato migliorie significative in vari indicatori finanziari chiave grazie all'ottimizzazione dei ricavi e dei costi.
Tucows (NASDAQ: TCX) reportó sus resultados del cuarto trimestre y del año completo 2024, marcando su cuarto año consecutivo de crecimiento en ingresos. Los ingresos netos consolidados del Q4 aumentaron un 7.1% a 93.1 millones de dólares, con una ganancia bruta que subió un 19% a 21.2 millones de dólares. Sin embargo, la empresa registró una pérdida neta de 45.3 millones de dólares (4.11 dólares por acción) en el Q4, principalmente debido a cargos por deterioro únicos en Ting y costos de reestructuración.
EBITDA ajustado para el Q4 2024 mostró una mejora significativa, aumentando un 403% a 12.8 millones de dólares desde 2.6 millones de dólares en el Q4 2023, impulsado por el crecimiento de ingresos de los negocios de Domains y Ting, junto con una mejor gestión de costos. La posición de efectivo de la empresa al final del Q4 2024 se situó en 73.2 millones de dólares, por debajo de los 91.1 millones de dólares en el Q3 2024.
La empresa avanzó en la reducción de su deuda, utilizando el flujo de efectivo de Wavelo y Tucows Domains para disminuir la deuda sindicada. A pesar de los cargos únicos que afectaron la rentabilidad del Q4, la dirección informó mejoras significativas en los principales indicadores financieros a través de la optimización de ingresos y costos.
Tucows (NASDAQ: TCX)는 2024년 4분기 및 전체 연도 결과를 발표하며 4년 연속 수익 성장을 기록했습니다. 4분기 통합 순매출은 7.1% 증가하여 9310만 달러에 달했으며, 총 이익은 19% 증가하여 2120만 달러에 이르렀습니다. 그러나 회사는 4분기에 4530만 달러(주당 4.11달러)의 순손실을 기록했으며, 이는 주로 Ting의 일회성 손상 차감과 구조 조정 비용 때문입니다.
조정 EBITDA는 2024년 4분기 동안 403% 증가하여 1260만 달러로, 2023년 4분기의 260만 달러에서 크게 개선되었습니다. 이는 Domains 및 Ting 비즈니스에서의 수익 성장과 비용 관리 개선에 힘입은 것입니다. 2024년 4분기 말 회사의 현금 잔고는 7320만 달러로, 2024년 3분기의 9110만 달러에서 감소했습니다.
회사는 Wavelo 및 Tucows Domains로부터의 현금 흐름을 사용하여 차입금을 줄이며 사업의 레버리지를 줄이는 데 진전을 보였습니다. 일회성 비용이 4분기 수익성에 영향을 미쳤음에도 불구하고, 경영진은 수익 및 비용 최적화를 통해 주요 재무 지표 전반에 걸쳐 의미 있는 개선을 보고했습니다.
Tucows (NASDAQ: TCX) a publié ses résultats du quatrième trimestre et de l'année 2024, marquant ainsi sa quatrième année consécutive de croissance de revenus. Les revenus nets consolidés du Q4 ont augmenté de 7,1 % pour atteindre 93,1 millions de dollars, avec un bénéfice brut en hausse de 19 % à 21,2 millions de dollars. Cependant, la société a enregistré une perte nette de 45,3 millions de dollars (4,11 dollars par action) au Q4, principalement en raison de charges d'amortissement exceptionnelles dans Ting et des coûts de restructuration.
EBITDA ajusté pour le Q4 2024 a montré une amélioration significative, augmentant de 403 % pour atteindre 12,8 millions de dollars contre 2,6 millions de dollars au Q4 2023, soutenue par la croissance des revenus des activités Domains et Ting, ainsi qu'une meilleure gestion des coûts. La position de trésorerie de l'entreprise à la fin du Q4 2024 s'élevait à 73,2 millions de dollars, en baisse par rapport à 91,1 millions de dollars au Q3 2024.
L'entreprise a progressé dans la désendettement de ses activités, utilisant le flux de trésorerie de Wavelo et Tucows Domains pour réduire sa dette syndiquée. Malgré les charges exceptionnelles affectant la rentabilité du Q4, la direction a signalé des améliorations significatives dans les principaux indicateurs financiers grâce à l'optimisation des revenus et des coûts.
Tucows (NASDAQ: TCX) hat seine Ergebnisse für das vierte Quartal und das Gesamtjahr 2024 veröffentlicht und damit das vierte Jahr in Folge ein Umsatzwachstum verzeichnet. Der konsolidierte Nettoumsatz im Q4 stieg um 7,1 % auf 93,1 Millionen Dollar, während der Bruttogewinn um 19 % auf 21,2 Millionen Dollar anstieg. Das Unternehmen verzeichnete jedoch im Q4 einen Nettoverlust von 45,3 Millionen Dollar (4,11 Dollar pro Aktie), hauptsächlich aufgrund von einmaligen Abschreibungen in Ting und Umstrukturierungskosten.
Bereinigtes EBITDA für das Q4 2024 zeigte eine signifikante Verbesserung und stieg um 403 % auf 12,8 Millionen Dollar von 2,6 Millionen Dollar im Q4 2023, angetrieben durch das Umsatzwachstum in den Bereichen Domains und Ting sowie eine verbesserte Kostenkontrolle. Die Liquiditätsposition des Unternehmens betrug Ende Q4 2024 73,2 Millionen Dollar, ein Rückgang von 91,1 Millionen Dollar im Q3 2024.
Das Unternehmen hat Fortschritte bei der Entschuldung seines Geschäfts gemacht, indem es den Cashflow von Wavelo und Tucows Domains genutzt hat, um die syndizierte Verschuldung zu reduzieren. Trotz einmaliger Belastungen, die die Rentabilität im Q4 beeinträchtigten, berichtete das Management von wesentlichen Verbesserungen in den wichtigsten finanziellen Kennzahlen durch Umsatz- und Kostenoptimierung.
- Revenue growth of 7.1% YoY to $93.1M in Q4 2024
- Gross profit increased 19% YoY to $21.2M in Q4 2024
- Adjusted EBITDA surged 403% YoY to $12.8M in Q4 2024
- Successful debt reduction using cash flow from Wavelo and Domains businesses
- Net loss widened to $45.3M in Q4 2024 vs $23.4M in Q4 2023
- Cash position decreased to $73.2M from $91.1M in Q3 2024
- Income from sale of transferred assets declined 20% YoY in Q4
- Increased interest expense impacting bottom line
Insights
The Q4 2024 results reveal a company executing well operationally while managing through strategic restructuring. The 7.1% revenue growth to
The core business segments show encouraging trends:
- Domains Services revenue grew
6.2% YoY to$65.7 million , with improved margins indicating successful pricing optimization - Ting Internet Services increased
14% YoY to$15.7 million , with gross profit up39.5% , showing improved operational efficiency - Wavelo Platform maintained stable performance with
3.6% revenue growth
The
Most notably, the company's focus on deleveraging through operating cash flow from Wavelo and Domains demonstrates prudent financial management. The
The reduction in cash position to
"Tucows closed 2024 with strong operating revenue growth for the fourth consecutive year, showing the resilience of our business," said Elliot Noss, Tucows President and CEO. "Adjusted EBITDA for the year reached the top of our guidance range, driven in large part by Ting's improved results. While Q4 profitability was affected by an annual impairment charge for Ting and restructuring costs associated with workforce reductions, these were one-time impacts. Excluding these charges, we are seeing meaningful improvements across our key financial metrics as we continue to optimize revenue and cost efficiencies. Additionally, we made further progress in deleveraging the business, using cash flow from Wavelo and Tucows Domains to reduce our syndicated debt."
Financial Results
Consolidated net revenue for the fourth quarter of 2024 increased
Gross profit for the fourth quarter of 2024 increased
Net loss for the fourth quarter of 2024 was
Adjusted EBITDA1 for the fourth quarter of 2024 increased
Cash equivalents, restricted cash and restricted cash equivalents at the end of the fourth quarter of 2024 were
Summary Financial Results
(In Thousands of US Dollars, except Per Share data)
3 Months ended December 31 | 12 Months ended December 31 | |||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | |
Net Revenues | 93,098 | 86,958 | 7 % | 362,275 | 339,337 | 7 % |
Gross Profit | 21,224 | 17,821 | 19 % | 83,030 | 66,667 | 25 % |
Income Earned on Sale of Transferred Assets, net | 3,244 | 4,062 | (20) % | 13,978 | 17,033 | (18) % |
Net Income (Loss) | (45,287) | (23,374) | (94) % | (112,672) | (96,197) | (17) % |
Adjusted Net Income (Loss)¹ | (15,775) | (22,382) | 30 % | (76,817) | (74,779) | (3) % |
Basic earnings (Loss) per common share | (4.11) | (2.14) | (92) % | (10.27) | (8.85) | (16) % |
Adjusted Basic earnings (Loss) per common share¹ | (1.43) | (2.05) | 30 % | (6.98) | (6.86) | (2) % |
1. Non-GAAP financial measures are described below and reconciled to GAAP measures in the accompanying tables. |
Summary of Revenues, Gross Profit and Adjusted EBITDA
(In Thousands of US Dollars)
Revenue | Gross Profit | Adj. EBITDA¹ | ||||
3 Months ended | 3 Months ended | 3 Months ended | ||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
Ting Internet Services: | ||||||
Fiber Internet Services | 15,749 | 13,821 | 10,995 | 7,881 | (1,468) | (12,366) |
Wavelo Platform Services: | ||||||
Platform Services | 9,888 | 9,545 | 9,368 | 9,214 | 3,679 | 2,604 |
Tucows Domain Services: | ||||||
Wholesale | ||||||
Domain Services | 50,586 | 48,279 | 9,967 | 9,968 | ||
Value Added Services | 5,480 | 4,184 | 4,981 | 3,661 | ||
Total Wholesale | 56,066 | 52,463 | 14,948 | 13,629 | ||
Retail | 9,608 | 9,348 | 5,393 | 5,229 | ||
Total Tucows Domain Services | 65,674 | 61,811 | 20,341 | 18,858 | 11,633 | 10,794 |
Corporate: | ||||||
Mobile Services and Eliminations | 1,787 | 1,781 | (2,052) | (501) | (995) | 1,522 |
Network Expenses: | ||||||
Network, other costs | n/a | n/a | (5,989) | (7,584) | n/a | n/a |
Network, depreciation of property and equipment | n/a | n/a | (10,536) | (9,533) | n/a | n/a |
Network, amortization of intangible assets | n/a | n/a | (366) | (371) | n/a | n/a |
Network, impairment | n/a | n/a | (537) | (143) | n/a | n/a |
Total Network Expenses | n/a | n/a | (17,428) | (17,631) | n/a | n/a |
Total | 93,098 | 86,958 | 21,224 | 17,821 | 12,849 | 2,554 |
1 Non-GAAP financial measures are described below and reconciled to GAAP measures in the accompanying tables. |
Notes:
- Tucows reports all financial information required in conformity with
United States generally accepted accounting principles (GAAP).
Along with this information, to assist financial statement users in an assessment of our historical performance, the Company discloses non-GAAP financial measures in press releases and on investor conference calls and related events, as the Company believes that the non-GAAP information enhances investors' overall understanding of our financial performance, and should be read in addition to, rather than instead of, the financial statements prepared in accordance with GAAP.
Non-GAAP financial measures do not reflect a comprehensive system of accounting and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies and/or analysts and may differ from period to period. The Company endeavors to compensate for these limitations by providing the relevant disclosure of the items excluded in the calculation of Adjusted EBITDA to net income based on
Adjusted EBITDA
The Company believes that the provision of this supplemental non-GAAP measure allows investors to evaluate the operational and financial performance of the Company's core business using similar evaluation measures to those used by management. The Company uses Adjusted EBITDA to measure its performance and prepare its budgets. Since Adjusted EBITDA is a non-GAAP financial performance measure, the Company's calculation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies; and should not be considered in isolation, as a substitute for, or superior to measures of financial performance prepared in accordance with GAAP. Because Adjusted EBITDA is calculated before certain recurring cash charges, including interest expense and taxes, and is not adjusted for capital expenditures or other recurring cash requirements of the business, it should not be considered as a liquidity measure.
The Company's Adjusted EBITDA definition excludes depreciation, impairment and loss on disposition of property and equipment, amortization of intangible assets, income tax provision, interest expense (net), stock-based compensation, asset impairment, gains and losses from unrealized foreign currency transactions, loss on debt extinguishment and costs that are not indicative of on-going performance (profitability), including acquisition and transition costs. Gains and losses from unrealized foreign currency transactions removes the unrealized effect of the change in the mark-to-market values on outstanding unhedged foreign currency contracts, as well as the unrealized effect from the translation of monetary accounts denominated in non-
The following table reconciles net income (loss) to Adjusted EBITDA (in thousands of US dollars):
3 Months ended December 31 | 12 Months ended December 31 | |||
2024 | 2023 | 2024 | 2023 | |
Net income (Loss) for the period | (45,287) | (23,374) | (112,672) | (96,197) |
Less: | ||||
Provision (recovery) for income taxes | 1,918 | (1,316) | 7,986 | (6,873) |
Depreciation of property and equipment | 10,637 | 9,661 | 40,323 | 36,431 |
Impairment of property and equipment | 21,074 | 143 | 21,979 | 4,822 |
Amortization of intangible assets | 1,208 | 2,728 | 5,297 | 10,829 |
Interest expense, net | 13,748 | 12,651 | 51,275 | 41,771 |
Loss on debt extinguishment | - | - | - | 14,680 |
Stock-based compensation | 1,638 | 1,528 | 7,021 | 8,134 |
Unrealized loss (gain) on foreign exchange revaluation of foreign denominated monetary assets and liabilities | (525) | (316) | (168) | (62) |
Acquisition and transition costs* | 8,438 | 849 | 13,876 | 1,916 |
Adjusted EBITDA | 12,849 | 2,554 | 34,917 | 15,451 |
* Acquisition and transition costs represent transaction-related expenses and transitional expenses. Expenses include severance or transitional costs associated with department, operational or overall company restructuring efforts, including geographic alignments. |
Adjusted Net Income and Adjusted Basic Earnings Per Common Share (Adjusted EPS)
The Company believes that the provision of this supplemental non-GAAP measure allows investors to best evaluate our operating results and understand the operating trends of our core business without the effect of acquisition and transition costs, impairment expenses and losses on extinguishment of debt. Acquisition and transition costs represent transaction-related expenses and transitional expenses. Expenses include severance or transitional costs associated with department, operational or overall company restructuring efforts, including geographic alignments. Since adjusted net income and adjusted EPS are non-GAAP financial performance measures, the Company's calculation of adjusted net income and adjusted EPS may not be comparable to other similarly titled measures of other companies; and should not be considered in isolation, as a substitute for, or superior to measures of financial performance prepared in accordance with GAAP.
The Company's adjusted net income and adjusted EPS definitions exclude from the calculation of reported GAAP net income and GAAP EPS, the effect of the following items: impairment of property and expenses, acquisition and transition costs (including restructuring charges) and loss on debt extinguishment.
The following table reconciles adjusted net income and adjusted EPS to GAAP net income (In thousands of US dollars, except Per Share data):
3 Months ended December 31 | 12 Months ended December 31 | |||
2024 | 2023 | 2024 | 2023 | |
Net Income (Loss) for the period | (45,287) | (23,374) | (112,672) | (96,197) |
Less: | ||||
Loss on debt extinguishment | - | - | - | 14,680 |
Acquisition and transition costs* | 8,438 | 849 | 13,876 | 1,916 |
Impairment of property and equipment | 21,074 | 143 | 21,979 | 4,822 |
Adjusted Net Income (Loss)¹ for the period | (15,775) | (22,382) | (76,817) | (74,779) |
Adjusted Basic Earnings (Loss) Per Common Share¹ | (1.43) | (2.05) | (7.00) | (6.88) |
* Acquisition and transition costs represent transaction-related expenses and transitional expenses. Expenses include severance or transitional costs associated with department, operational or overall company restructuring efforts, including geographic alignments. |
Management Commentary
Concurrent with the dissemination of its quarterly financial results news release at 5:05 p.m. ET on Thursday, February 13, 2025, management's pre-recorded audio commentary (and transcript), discussing the quarter and outlook for the Company will be posted to the Tucows website at http://www.tucows.com/investors/financials.
Following management's prepared commentary, for the subsequent seven days, until Thursday, February 20, 2025, shareholders, analysts and prospective investors can submit questions to Tucows' management at ir@tucows.com. Management will post responses to questions in an audio recording and transcript to the Company's website at http://www.tucows.com/investors/financials, on Tuesday, March 4, 2025, at approximately 5 p.m. ET. All questions will receive a response, however, questions of a more specific nature may be responded to directly.
About Tucows
Tucows helps connect more people to the benefit of internet access through communications service technology, domain services, and fiber-optic internet infrastructure. Ting (https://ting.com) delivers fixed fiber Internet access with outstanding customer support. Wavelo (https://wavelo.com) is a telecommunications software suite for service providers that simplifies the management of mobile and internet network access; provisioning, billing and subscription; developer tools; and more. Tucows Domains (https://tucowsdomains.com) manages approximately 25 million domain names and millions of value-added services through a global reseller network of over 35,000 web hosts and ISPs. Hover (https://hover.com) makes it easy for individuals and small businesses to manage their domain names and email addresses. More information can be found on Tucows' corporate website (https://tucows.com).
Tucows, Ting, Wavelo, and Hover are registered trademarks of Tucows Inc. or its subsidiaries.
This release includes forward-looking statements as that term is defined in the
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SOURCE Tucows Inc.
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