The following is a summary of the Tucows, Inc. (TCX) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Tucows reported a consolidated revenue of $92.3 million in Q3 2024, an increase of 6.1% YoY.

• Gross profit increased 32.4% YoY to $22.2 million, with notable contributions from Ting and Domains businesses.

• Adjusted EBITDA reached $8.7 million, up 94% compared to $4.5 million in Q3 2023.

• Net loss was slightly reduced to $22.3 million or $2.03 per share.

• Cash and cash equivalents stood at $75.2 million as of the end of Q3 2024.

Business Progress:

• Tucows Domains reported its seventh consecutive quarter of revenue growth with significant improvements in gross margin and adjusted EBITDA.

• The Wavelo platform experienced a decline in revenue and adjusted EBITDA year-over-year but showed resilience in its gross margin performance.

• Major restructuring in the Ting business including a workforce reduction and cessation of expansion into new markets to focus on maximization of existing infrastructure.

Opportunities:

• Ting's focus on loading the existing 132,000 owned addresses and over 40,000 partner addresses provides an opportunity for future subscriber growth and revenue.

• Growth in Wavelo's enterprise-scale platform could attract larger MNOs, MVNOs, and ISPs.

Risks:

• Ting business restructuring, including the halt of expansion and $40 million in impending annual interest payments, represents significant financial pressure.

• The decline in subscriber base in Wavelo reflects challenges in maintaining growth.

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