Tucows Reports Financial Results for Third Quarter 2024

Core Insights - Tucows Inc. reported strong year-over-year growth in revenue, gross profit, and adjusted EBITDA for Q3 2024, emphasizing revenue generation and cost control measures [2][3][6] Financial Performance - Consolidated net revenue for Q3 2024 increased by 6.1% to $92.3 million from$87.0 million in Q3 2023, primarily driven by revenue gains from Ting and Domains [3][9] - Gross profit for Q3 2024 rose by 32.4% to $22.2 million from$16.8 million in Q3 2023, attributed to significant gross margin improvements from Ting and Domains [4][9] - Adjusted EBITDA for Q3 2024 surged by 94.3% to $8.7 million from$4.5 million in Q3 2023, mainly due to revenue growth from Domains and Ting, along with effective cost management in the Ting business [6][9] Loss and Cash Flow - The net loss for Q3 2024 was $22.3 million, or a loss of$2.03 per share, compared to a net loss of $22.8 million, or$2.09 per share, in Q3 2023, reflecting improved revenue and gross profit along with reduced operating expenses [5][9] - Cash equivalents at the end of Q3 2024 were $91.1 million, an increase from$52.2 million at the end of Q2 2024, but a decrease from $122.4 million at the end of Q3 2023 [7][9] Business Segments - In the Ting Internet Services segment, revenue for Q3 2024 was$15.3 million, up from $12.9 million in Q3 2023, while gross profit increased significantly [9][10] - The Wavelo platform services generated$10.1 million in revenue for Q3 2024, slightly down from $10.7 million in Q3 2023, indicating a need for strategic adjustments [9][10] Management Commentary - Management highlighted the implementation of cost controls and a workforce reduction in the Ting business as part of a capital efficiency plan aimed at maximizing existing network contributions [2][5]