Tucows reports results for Q3 2024

Tucows Inc. (NASDAQ:TCX, TSX:TC) today reported its financial results for the third quarter ended September 30, 2024. All figures are in U.S. dollars.

“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 6.1% to $92.3 million from $87.0
  million for the third quarter of 2023, driven primarily by year-over-year revenue gains from Ting and
  Domains.
• Gross profit for the third quarter of 2024 increased 32.4% to $22.2 million from $16.8 million from the
  third quarter of 2023. The increase in gross profit was driven primarily by large gross margin gains from
  Ting, as well as gains from Domains. The increase continues to be partially offset by network
  depreciation from the Ting network.
• Net loss for the third quarter of 2024 was $22.3 million, or a loss of $2.03 per share, compared with net
  loss of $22.8 million, or $2.09 per share, for the third quarter of 2023. The decreased loss was primarily
  driven by increases in revenue and gross profit, as well as by a decrease in operating expenses.
• Adjusted EBITDA1 for the third quarter of 2024 increased 94.3% to $8.7 million from $4.5 million for the
  third quarter of 2023. The year-over-year increase was primarily due to growth of revenues from
  Domains and Ting, and cost management in the Ting business.
• Cash equivalents, restricted cash and restricted cash equivalents at the end of the third quarter of 2024
  were $91.1 million compared with $52.2 million at the end of the second quarter of 2024 and $122.4
  million at the end of the third quarter of 2023.