2023 Q1 TCX results KPI summary.pdf
TUCOWS, INC. QUARTERLY KPI SUMMARY
Operating Statistics
(Amounts in thousands)
| QUARTERLY | YTD | ANNUAL | ||||||
|---|---|---|---|---|---|---|---|---|
| Q1/23 | Q4/22 | Q3/22 | Q2/22 | Q1/22 | 2023 | 2022 | 2021 | |
| TING | ||||||||
| Internet Subscribers under management3 | 36.7 | 34.5 | 32.6 | 30.3 | 27.8 | 36.7 | 34.5 | 25.5 |
| Internet Subscribers under management- Net additions | 2.2 | 2.0 | 2.3 | 2.5 | 2.3 | 2.2 | 9.0 | 10.1 |
| Owned Infrastructure Serviceable Addresses1,3 | 101.6 | 96.2 | 89.8 | 85.5 | 81.1 | 101.6 | 96.2 | 75.9 |
| Owned Infrastructure Serviceable Addresses- Net additions1,3 | 5.4 | 6.4 | 4.3 | 4.4 | 5.2 | 5.4 | 20.3 | 26.6 |
| Partner Infrastructure Serviceable Addresses1 | 19.8 | 19.5 | 18.7 | 18.2 | 17.0 | 19.8 | 19.5 | 15.2 |
| Partner Infrastructure Serviceable Addresses- Net additions1 | 0.3 | 0.8 | 0.5 | 1.2 | 1.8 | 0.3 | 4.3 | 4.9 |
| Fiber Capital Expenditures-Consumption2 | $23,200 | $23,600 | $23,700 | $24,900 | $14,050 | $23,200 | $86,250 | $56,200 |
| TUCOWS DOMAINS | ||||||||
| Domains under management | 24,483 | 24,390 | 24,504 | 24,844 | 25,020 | 24,483 | 24,390 | 25,163 |
| Total new, renewed and transferred-in domain name registrations provisioned4 | 5,963 | 5,157 | 5,234 | 5,432 | 5,951 | 5,963 | 21,774 | 22,530 |
1 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 The Company’s life-to-date Fiber capex investment since February 2015 is $292.8 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.
Summary Ting Financial Results (In thousands of US dollars)
| QUARTERLY | YTD | ANNUAL | ||||||
|---|---|---|---|---|---|---|---|---|
| Q1/23(Unaudited) | Q4/22(Unaudited) | Q3/22(Unaudited) | Q2/22(Unaudited) | Q1/22(Unaudited) | 2023(Unaudited) | 2022(Unaudited) | 2021(Unaudited) | |
| Mature Market Contribution¹ | $1,952 | $2,432 | $2,257 | $1,557 | $1,617 | $1,952 | $7,863 | $6,336 |
| Growing and Other Market Contribution² | (1,461) | (1,214) | (1,001) | (779) | (450) | (1,461) | (3,444) | (4,541) |
| Subtotal Market Level Contribution | 491 | 1,218 | 1,256 | 778 | 1,167 | 491 | 4,419 | 1,795 |
| Construction Opex³ | (4,070) | (3,477) | (2,371) | (3,290) | (2,459) | (4,070) | (11,597) | (8,249) |
| National Opex⁴ | (5,694) | (3,752) | (3,925) | (3,673) | (3,029) | (5,694) | (14,379) | (12,324) |
| Subtotal Head-office OpEx | (9,764) | (7,229) | (6,296) | (6,963) | (5,488) | (9,764) | (25,976) | (20,573) |
| Total Ting Adjusted EBITDA⁵ | (9,273) | (6,011) | (5,040) | (6,185) | (4,321) | (9,273) | (21,557) | (18,778) |
| Fiber Capex | $23,200 | $23,600 | $23,700 | $24,900 | $14,050 | $23,200 | $86,250 | $56,200 |
1 Contributions from subsets of markets with weighted average age of serviceable addresses greater than 24 months, not including markets operating under brands acquired in recent acquisitions; Cedar and Simply Bits. The definition was updated in Q2 2022. The historical results were restated to reflect the refined definition.
2 Contributions from subsets of markets with weighted average age of serviceable addresses less than 24 months as well as all markets operating under brands acquired in recent acquisitions; Cedar and Simply Bits. The definition was updated in Q2 2022. The historical results were restated to reflect the refined definition.
3 Represents front-loaded growth opex that is incurred to enable expansion of the Ting Network. This includes construction, market development, and management of local installation operations.
4 Represents recurring, scalable opex that is incurred to attract and retain subscribers and manage the overall Ting business. This includes sales and marketing, product management, network operations, and allocated corporate shared services.
5 Our adjusted EBITDA definition excludes depreciation, 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, and costs that are one-time in nature and 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 foreign currency contracts not designated in accounting hedges, as well as the unrealized effect from the translation of monetary accounts denominated in non-U.S. dollars to U.S. dollars.
Summary of Historical Financial Results (In thousands of US dollars)
QUARTERLY
| Q1/23 (Unaudited) | Q4/22 (Unaudited) | Q3/22 (Unaudited) | Q2/22 (Unaudited) | Q1/22
(Unaudited) | | --- | --- | --- | --- | --- |
REVENUE
| YTD | ANNUAL | |
|---|---|---|
| 2023 | ||
| (Unaudited) | 2022 | |
| (Unaudited) | 2021 |
| Ting | $11,853 | $11,470 | $10,946 | $10,221 | $9,788 | $11,853 | $42,425 | $25,327 |
|---|---|---|---|---|---|---|---|---|
| Wavelo | 7,300 | 4,479 | 4,048 | 8,970 | 6,847 | 7,300 | 24,344 | 16,781 |
| Tucows Domains | 59,242 | 60,268 | 60,281 | 61,063 | 61,546 | 59,242 | 243,158 | 245,576 |
| Tucows Corporate1 | 2,035 | 2,692 | 2,775 | 2,830 | 2,918 | 2,035 | 11,215 | 16,653 |
| TOTAL REVENUE | 80,430 | 78,909 | 78,050 | 83,084 | 81,099 | 80,430 | 321,142 | 304,337 |
GROSS MARGIN
| Ting | 7,868 | 7,211 | 6,656 | 5,804 | 5,750 | 7,868 | 25,421 | 13,292 |
|---|---|---|---|---|---|---|---|---|
| Wavelo | 6,274 | 3,807 | 3,813 | 7,912 | 5,886 | 6,274 | 21,418 | 15,473 |
| Tucows Domains | 17,521 | 18,402 | 18,170 | 19,963 | 19,734 | 17,521 | 76,269 | 78,088 |
| Tucows Corporate1 | (523) | 244 | 1,109 | 105 | 308 | (523) | 1,766 | 4,445 |
| Network Expenses | (17,079) | (12,654) | (11,761) | (11,731) | (10,480) | (17,079) | (46,626) | (33,005) |
| TOTAL GROSS MARGIN | 14,061 | 17,010 | 17,987 | 22,053 | 21,198 | 14,061 | 78,248 | 78,293 |
ADJUSTED EBITDA²
| Ting | (9,273) | (6,011) | (5,040) | (6,185) | (4,321) | (9,273) | (21,557) | (18,778) |
|---|---|---|---|---|---|---|---|---|
| Wavelo | 335 | (1,142) | (902) | 3,872 | 2,047 | 335 | 3,875 | 7,334 |
| Tucows Domains | 10,338 | 10,568 | 10,385 | 12,107 | 11,774 | 10,338 | 44,834 | 47,765 |
| Tucows Corporate | 1,630 | 3,285 | 3,436 | 1,906 | 1,811 | 1,630 | 10,438 | 12,500 |
| TOTAL ADJUSTED EBITDA² | $3,030 | $6,700 | $7,879 | $11,700 | $11,311 | $3,030 | $37,590 | $48,821 |
1 Tucows Corporate Revenue and Gross Margin includes revenue from retail mobile services, transition services provided to DISH and intercompany revenue eliminations.
2 Our adjusted EBITDA definition excludes depreciation, 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 and costs that are one-time in nature and 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 foreign currency contracts not designated in accounting hedges, as well as the unrealized effect from the translation of monetary accounts denominated in non-U.S. dollars to U.S. dollars.