Tucows Reports Financial Results for Third Quarter 2024
TORONTO, Nov. 7, 2024 /PRNewswire/ - Tucows Inc. (NASDAQ:TCX) (TSX:TC), a global internet services leader, 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.
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 September 30
3 Months ended September 30
3 Months ended September 30
2024 (unaudited)
2023(unaudited)
2024 (unaudited)
2023(unaudited)
2024 (unaudited)
2023(unaudited)
Ting Internet Services:
