Tucows Reports Financial Results for Third Quarter, 2022

TORONTO, Nov 3, 2022 – Tucows Inc. (NASDAQ:TCX, TSX:TC), a provider of network access, domain names and other Internet services, today reported its financial results for the third quarter ended September 30, 2022. All figures are in U.S. dollars.

“Total revenue for the third quarter of 2022 increased 2.8% to $78.1 million, while gross profit was essentially flat. We had strong gains in the Ting business, with revenue up 71%, and gross profit up 141% year over year. The Ting business gains were offset primarily by the expected revenue declines in the Tucows Corporate business, from the impact of reduced transitional services from DISH on revenues, and the ongoing gross profit impact of the fiber network related depreciation within network expenses.” said Elliot Noss, President and Chief Executive Officer, Tucows Inc. “Year-to-date total revenue for 2022 is $242 million, up 9% from the year-to-date total revenue of $222 million at the end of Q3 of 2021. Adjusted EBITDA declined 35% year over year, driven primarily by the growth investment required by Wavelo and Ting, and we remain on track for end of year 2022 EBITDA guidance.”

Read the full news release here.

Financial Statement

Highlights

• Total revenue: $78.1 million (up 2.8%)
• Ting business revenue: Up 71%
• Ting business gross profit: Up 141%
• Year-to-date total revenue 2022: $242 million (up 9%)
• Adjusted EBITDA: Decline of 35% year over year.

Key Issues

• Revenue declines in Tucows Corporate business.
• Impact of reduced transitional services from DISH.
• Ongoing gross profit impact from fiber network depreciation.