TUCOWS INC. 05.09.2024
Investor presentation
Nasdaq (TCX) | TSX (TC)
safe harbor statement
This presentation may contain forward-looking statements, relating to the Company's operations or to the environment in which it operates, which are based on Tucows Inc.'s operations, estimates, forecasts and projections. These statements are not guarantees of future performance and are subject to important risks, uncertainties and assumptions concerning future conditions that may ultimately prove to be inaccurate or differ materially from actual future events or results. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, investors should not place undue reliance on these forward-looking statements, which are based on Tucows Inc.'s current expectations, estimates, projections, beliefs and assumptions. These forward-looking statements speak only as of the date of this presentation and are based upon the information available to Tucows Inc. at this time. Tucows Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
2
table of contents
01
02
03
Quarterly business highlights
Page 4
Tucows
Page 8
Tucows Domains
Page 14
04
05
06
Wavelo
Page 18
Ting
Page 22
Resources
Page 28
3
Quarterly business
highlights
4
Tucows | Q1 business highlights
- Consolidated KPI growth year over year
- Revenue +9%
- Gross Margin +30%
- Adjusted EBITDA +39%
- Continued leverage reduction with $5.5m payment on syndicated loan in Q1
- Continued robust year over year growth in Revenue (29%), Margin (44%) and Adjusted EBITDA (732%)
- Three new Wavelo customers signed in Q1
- Domains under management and transactions up year over year
- Year over year growth in Revenue (+5%), Margin (+6%)
- Launch of Orange Domains partnership
- Strong year over year growth in:
- Revenue (+19%)
- Subscribers (+25%)
- Owned Serviceable Addresses (+23%)
- Partner Serviceable Addresses (+71%)
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Tucows | quarterly business highlights
Quarterly KPI summary
Operating Statistics (Amounts in thousands)
QUARTERLY
Q1/24 | Q4/23 | Q3/23 | Q2/23 | Q1/23 |
ANNUAL
2024 YTD | 2023 | 2022 |
TING INTERNET
Internet Subscribers under management3 | 46.1 | 43.4 | 41.1 | 38.6 | 36.7 | 46.1 | 43.4 | 34.5 | |
Internet Subscribers under management | 2.7 | 2.3 | 2.6 | 1.9 | 2.2 | 2.7 | 9.0 | 9.0 | |
- Net additions3 | |||||||||
Owned Infrastructure Serviceable Addresses1,3,5 | 124.0 | 121.3 | 114.5 | 109.3 | 101.2 | 124.0 | 121.3 | 95.8 | |
Owned Infrastructure Serviceable Addresses | 2.7 | 6.8 | 5.2 | 8.1 | 5.4 | 2.7 | 25.6 | 19.9 | |
- Net additions1,3,5 | |||||||||
Partner Infrastructure Serviceable Addresses1,5 | 33.0 | 29.4 | 25.4 | 21.1 | 19.4 | 33.0 | 29.4 | 19.1 | |
Partner Infrastructure Serviceable Addresses | 3.6 | 4.0 | 4.3 | 1.7 | 0.3 | 3.6 | 10.3 | 3.9 | |
- Net additions1,5 | |||||||||
Fiber Capital Expenditures - Consumption2 | $18,100 | $18,000 | $17,250 | $21,800 | $23,200 | $18,100 | $80,250 | $86,250 |
TUCOWS DOMAIN SERVICES
Domains under management | 24,700 | 24,560 | 24,543 | 24,429 | 24,483 | 24,700 | 24,560 | 24,390 | |
Total new, renewal and transferred-in domain name transactions4 | 5,996 | 5,253 | 5,391 | 5,424 | 5,963 | 5,996 | 22,031 | 21,774 |
- Defined as premises to which Ting Owned Infrastructure or Ting partner infrastructure has the capability to provide a customer connection in a service area.
2 This includes all capital expenditures used to build and expand the Ting footprint, including construction and activation of the network and customers, capitalized labor, materials and acquisitions. The Company's life-to-date Fiber capex investment since February 2015 is $365.1 million, including the Blue Ridge Websoft, Cedar Holdings, and Simply Bits acquisitions, net of capex write-offs.
3 Internet Subscribers and Serviceable Addresses from Simply Bits are not included in Ting metrics.
4 Includes all transactions processed under our accreditations for our resellers and our retail brands, as well as transactions processed on behalf of other registrars using our platform.
5 Serviceable addresses were revised for Q1 2023 and Q4 2022 based on new address recognition methodology, resulting in a reduction of 419 Owned Infrastructure Serviceable Addresses and 420 Partner Infrastructure Serviceable Addresses.
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Tucows | quarterly business highlights
Summary financial results
3 MONTHS ENDED March 31, 2024 ($000s except per share amounts)
Q1 2024 (unaudited) | Q1 2023 (unaudited) | % Change |
Total revenue | 87,457 | 80,430 | 9% |
Gross Profit | 18,316 | 14,061 | 30% |
Income Earned on Sale of Transferred Assets, Net | 3,621 | 4,370 | (17%) |
Net Income (loss) | (26,484) | (19,083) | (39%) |
Basic Net earnings (loss) per common share | (2.42) | (1.77) | (37%) |
Adjusted EBITDA | 4,202 | 3,030 | 39% |
Net cash provided (used) by operating activities | (5,678) | (5,251) | (8%) |
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Portfolio of tech businesses
Balancing cash generation with investment in long-term growth
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Tucows | business structure
Corporate parent allocating capital
and providing efficient shared services to three subsidiary companies
DOMAIN SERVICES
Pioneer and leading provider in the global domain services market
PLATFORM SERVICES | FIBER INTERNET SERVICES |
Internet service & mobile | Building and providing |
network operating software that | |
in-demand services over | |
delivers customizable, human | |
fiber-to-the premise | |
solutions for communications | |
networks | |
service providers |
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Tucows | investment summary
Consistent revenue and cash flow generation + growth opportunities
through high volume, low-cost subscription services
DOMAIN SERVICES | PLATFORM SERVICES | FIBER INTERNET SERVICES |
Reliable cash flow + global | A visible revenue stream | Outsized long-term growth |
relationships + dominant | and strong growth | as an early mover in next |
position in wholesale | potential in a critical and | generation telecom |
domains market | underserved space | infrastructure & services |
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Tucows Inc. published this content on 09 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2024 22:14:22 UTC.
