Tucows Reports Financial Results for Third Quarter 2024
Tucows (NASDAQ: TCX) reported Q3 2024 financial results with notable growth across key metrics. Revenue increased 6.1% to $92.3 million, while gross profit surged 32.4% to $22.2 million compared to Q3 2023. Adjusted EBITDA showed significant improvement, rising 94.3% to $8.7 million. Despite these gains, the company posted a net loss of $22.3 million ($2.03 per share), slightly improved from the $22.8 million loss in Q3 2023. The company implemented cost controls and workforce reductions in its Ting business, focusing on maximizing penetration of existing networks. Cash and equivalents stood at $91.1 million at quarter's end.
Tucows (NASDAQ: TCX) ha riportato i risultati finanziari del terzo trimestre del 2024 con una crescita notevole in metriche chiave. I ricavi sono aumentati del 6,1% a $92,3 milioni, mentre il profitto lordo è balzato del 32,4% a $22,2 milioni rispetto al terzo trimestre del 2023. EBITDA rettificato ha mostrato un miglioramento significativo, con un aumento del 94,3% a $8,7 milioni. Nonostante questi guadagni, l'azienda ha registrato una perdita netta di $22,3 milioni ($2,03 per azione), leggermente migliorata rispetto alla perdita di $22,8 milioni del terzo trimestre del 2023. La società ha implementato controlli sui costi e riduzioni della forza lavoro nel suo settore Ting, concentrandosi massimamente sulla penetrazione delle reti esistenti. Alla fine del trimestre, la liquidità e i mezzi equivalenti si attestavano a $91,1 milioni.
Tucows (NASDAQ: TCX) reportó resultados financieros del tercer trimestre de 2024 con un crecimiento notable en métricas clave. Los ingresos aumentaron un 6,1% a $92,3 millones, mientras que la ganancia bruta se disparó un 32,4% a $22,2 millones en comparación con el tercer trimestre de 2023. EBITDA ajustado mostró una mejora significativa, subiendo un 94,3% a $8,7 millones. A pesar de estas ganancias, la empresa registró una pérdida neta de $22,3 millones ($2,03 por acción), ligeramente mejor que la pérdida de $22,8 millones en el tercer trimestre de 2023. La compañía implementó controles de costos y reducciones de personal en su negocio Ting, enfocándose en maximizar la penetración de redes existentes. Al final del trimestre, el efectivo y equivalentes alcanzaban los $91,1 millones.
투카우스(Tucows) (NASDAQ: TCX)는 2024년 3분기 재무 결과를 발표하며 주요 지표에서 눈에 띄는 성장을 기록했습니다. 수익은 6.1% 증가하여 9,230만 달러에 달했으며, 총 이익은 32.4% 급증하여 2,220만 달러에 도달했습니다. 조정 EBITDA는 94.3% 증가하여 870만 달러로 나타났습니다. 이러한 수익에도 불구하고, 회사는 2,230만 달러(주당 2.03달러)의 순손실을 기록했으며, 이는 2023년 3분기 2,280만 달러의 손실보다 약간 개선된 수치입니다. 회사는 Ting 사업부에서 비용 통제 및 인력 감축을 시행하였으며, 기존 네트워크에 대한 침투를 극대화하는 데 집중하고 있습니다. 분기 말 현금 및 현금성 자산은 9,110만 달러에 달했습니다.
Tucows (NASDAQ: TCX) a publié ses résultats financiers du troisième trimestre 2024, affichant une croissance notable dans des indicateurs clés. Le chiffre d'affaires a augmenté de 6,1 % pour atteindre 92,3 millions de dollars, tandis que le bénéfice brut a bondi de 32,4 % à 22,2 millions de dollars par rapport au troisième trimestre 2023. EBITDA ajusté a montré une amélioration significative, augmentant de 94,3 % à 8,7 millions de dollars. Malgré ces gains, l'entreprise a enregistré une perte nette de 22,3 millions de dollars (2,03 dollars par action), légèrement améliorée par rapport à la perte de 22,8 millions de dollars du troisième trimestre 2023. L'entreprise a mis en place des contrôles des coûts et des réductions d'effectifs dans son activité Ting, se concentrant sur la maximisation de la pénétration des réseaux existants. À la fin du trimestre, la trésorerie et les équivalents de trésorerie s'élevaient à 91,1 millions de dollars.
Tucows (NASDAQ: TCX) hat die finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht, mit bemerkenswertem Wachstum in Schlüsselkennzahlen. Der Umsatz stieg um 6,1% auf 92,3 Millionen Dollar, während der Bruttogewinn um 32,4% auf 22,2 Millionen Dollar im Vergleich zum dritten Quartal 2023 anstieg. Bereinigtes EBITDA zeigte eine erhebliche Verbesserung und stieg um 94,3% auf 8,7 Millionen Dollar. Trotz dieser Gewinne verzeichnete das Unternehmen einen Nettoverlust von 22,3 Millionen Dollar (2,03 Dollar pro Aktie), was eine leichte Verbesserung gegenüber dem Verlust von 22,8 Millionen Dollar im dritten Quartal 2023 darstellt. Das Unternehmen implementierte Kostenkontrollen und Stellenabbau in seinem Ting-Geschäft und konzentrierte sich darauf, die Durchdringung bestehender Netzwerke zu maximieren. Am Ende des Quartals betrugen die liquiden Mittel und Äquivalente 91,1 Millionen Dollar.
- Revenue growth of 6.1% YoY to $92.3 million
- Gross profit increase of 32.4% YoY to $22.2 million
- Adjusted EBITDA growth of 94.3% YoY to $8.7 million
- Cash position improved to $91.1 million from $52.2 million in Q2 2024
- Operating expenses decreased year-over-year
- Net loss of $22.3 million ($2.03 per share)
- Workforce reduction in Ting business
- Income earned on sale of transferred assets declined 11% YoY
- Negative operating cash flow of $4.56 million
Insights
The Q3 2024 results show mixed signals with some notable improvements. Revenue grew 6.1% to
The cost control initiatives and operational pivot in the Ting business, including workforce reduction, signal a strategic shift towards efficiency. The deleveraging efforts using cash flow from Wavelo and Domains businesses demonstrate prudent financial management. The cash position strengthened to
Key concerns include persistent net losses and high interest expenses of
"Tucows finished the third quarter of 2024 with strong year-over-year growth of revenue, gross profit and adjusted EBITDA. We have focused on generating revenue and margin gains, and as importantly, we have implemented cost controls across all of our businesses, said Elliot Noss, Tucows President and CEO. In our Ting business, we recently undertook a second reduction in workforce as part of a capital efficiency plan and operational pivot towards maximizing penetration and contribution of existing network footprints. We also continued to deleverage the business with payments on the syndicated debt using cash flow from Wavelo and Tucows Domains."
Financial Results
Consolidated net revenue for the third quarter of 2024 increased
Gross profit for the third quarter of 2024 increased
Net loss for the third quarter of 2024 was
Adjusted EBITDA1 for the third quarter of 2024 increased
Cash equivalents, restricted cash and restricted cash equivalents at the end of the third quarter of 2024 were
Summary Financial Results
(In Thousands of US Dollars, Except Per Share Data)
3 Months ended September 30 | 9 Months ended September 30 | |||||
2024 (unaudited) | 2023 (unaudited) | % Change | 2024 (unaudited) | 2023 (unaudited) | % Change | |
Net Revenues | 92,297 | 86,971 | 6 % | 269,177 | 252,379 | 7 % |
Gross Profit | 22,188 | 16,753 | 32 % | 61,314 | 48,846 | 26 % |
Income Earned on Sale of Transferred Assets, net | 3,853 | 4,312 | (11 %) | 10,831 | 12,971 | (16) % |
Net Income (Loss) | (22,297) | (22,772) | 2 % | (67,385) | (72,823) | 7 % |
Basic earnings (Loss) per common share | (2.03) | (2.09) | 3 % | (6.15) | (6.71) | 8 % |
Adjusted EBITDA¹ | 8,688 | 4,472 | 94 % | 22,068 | 12,897 | 71 % |
Net cash provided by (used in) operating activities | (4,564) | (6,936) | 34 % | (14,950) | (13,774) | (9) % |
1. This Non-GAAP financial measure is described below and reconciled to GAAP net income in the accompanying table. |
Summary of Revenues, Gross Profit and Adjusted EBITDA
(In Thousands of US Dollars)
Revenue | Gross Margin | Adj. EBITDA¹ | ||||
3 Months ended | 3 Months ended | 3 Months ended | ||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
Ting Internet Services: | ||||||
Fiber Internet Services | 15,310 | 12,855 | 10,989 | 7,986 | (5,070) | (12,176) |
Wavelo Platform Services: | ||||||
Platform Services | 10,075 | 10,697 | 10,012 | 10,355 | ||
Other Professional Services | 7 | 377 | 7 | 149 | ||
Total Wavelo Platform Services | 10,082 | 11,074 | 10,019 | 10,504 | 3,429 | 4,207 |
Tucows Domain Services: | ||||||
Wholesale | ||||||
Domain Services | 49,871 | 47,657 | 9,691 | 9,597 | ||
Value Added Services | 5,175 | 4,252 | 4,666 | 3,715 | ||
Total Wholesale | 55,046 | 51,909 | 14,357 | 13,312 | ||
Retail | 9,669 | 9,179 | 5,453 | 5,063 | ||
Total Tucows Domain Services | 64,715 | 61,088 | 19,810 | 18,375 | 11,529 | 10,913 |
Corporate: | ||||||
Mobile Services and Eliminations | 2,190 | 1,954 | (1,134) | (611) | (1,200) | 1,528 |
Network Expenses: | ||||||
Network, other costs | n/a | n/a | (6,864) | (7,322) | n/a | n/a |
Network, depreciation of property and equipment | n/a | n/a | (9,414) | (9,138) | n/a | n/a |
Network, amortization of intangible assets | n/a | n/a | (366) | (378) | n/a | n/a |
Network, impairment | n/a | n/a | (852) | (2,663) | n/a | n/a |
Total Network Expenses | n/a | n/a | (17,496) | (19,501) | n/a | n/a |
Total | 92,297 | 86,971 | 22,188 | 16,753 | 8,688 | 4,472 |
1 This Non-GAAP financial measure is described below and reconciled to GAAP net income in the accompanying table. |
Notes:
1. Adjusted EBITDA
Tucows reports all financial information required in accordance with
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. 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
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), accretion of contingent consideration, 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 income before provision for income taxes to Adjusted EBITDA (dollars in thousands):
3 Months ended September 30 | 9 Months ended September 30 | |||
2024 | 2023 | 2024 | 2023 | |
Net income (Loss) for the period | (22,297) | (22,772) | (67,385) | (72,823) |
Less: | ||||
Provision (recovery) for income taxes | 3,074 | (822) | 6,068 | (5,557) |
Depreciation of property and equipment | 9,526 | 9,275 | 29,686 | 26,770 |
Impairment of property and equipment | 852 | 2,663 | 905 | 4,679 |
Amortization of intangible assets | 1,209 | 2,620 | 4,089 | 8,101 |
Interest expense, net | 13,095 | 10,739 | 37,527 | 29,120 |
Loss on debt extinguishment | - | - | - | 14,680 |
Stock-based compensation | 1,808 | 2,308 | 5,383 | 6,606 |
Unrealized loss (gain) on foreign exchange revaluation of foreign denominated monetary assets and liabilities | (197) | 340 | 357 | 254 |
Acquisition and transition costs* | 1,618 | 121 | 5,438 | 1,067 |
Adjusted EBITDA | ||||
* Acquisition and other 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, November 7, 2024, 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, November 14, 2024, 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, November 26, 2024, at approximately 4 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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