Business
Tucows Reports Financial Results for First Quarter 2020
TORONTO, May 07, 2020 (GLOBE NEWSWIRE) -- Tucows Inc. (NASDAQ:TCX, TSX:TC), a provider of network access, domain names and other Internet services, today
About this update from Tucows Inc.
[{"type":"text","content":"TORONTO, May 07, 2020 (GLOBE NEWSWIRE) -- Tucows Inc. (NASDAQ:TCX, TSX:TC), a provider of network access, domain names and other Internet services, today reported its financial results for the first quarter ended March 31, 2020. All figures are in U.S. dollars.\n COVID-19: Tucows shareholders and prospective investors are encouraged to read Tucows’ public statement regarding COVID-19, which is available here: https://bit.ly/2LavpOc. Summary Financial Results(In Thousands of US Dollars, Except Per Share Data) 3 Months Ended March 312020(Unaudited)2019(Unaudited)% ChangeNet revenue83,98578,9536%Gross Profit25,15022,65111%Net income2,8342,7991%Basic Net earnings per common share0.270.264%Adjusted EBITDA1,212,6819,43134%Net cash provided by operating activities14,0738,99157% 1. This Non-GAAP financial measure is described below and reconciled to GAAP net income in the accompanying table.2. Adjusted EBITDA for the three-month period ended March 31, 2020 reflects the impact of the purchase price accounting adjustment related to the fair value write down of deferred revenue from the Ascio acquisition on March 18, 2019, which lowered Adjusted EBITDA by $0.1 million, compared to $0.2 million for the three-month period ended March 31, 2019. Summary of Revenues and Gross profit(In Thousands of US Dollars) RevenueGross Profit 3 Months endedMarch 31 3 Months ended March 31 2020(Unaudited)2019(Unaudited)2020(Unaudited)2019(Unaudited)Network Access Services:Mobile Services20,14820,80910,291 10,066 Other Services4,3082,4432,592 1,374 Total Network Access Services24,45623,25212,883 11,440 Domain Services:Wholesale Domain Services45,96442,5919,495 7,752 Value Added Services4,7074,1843,922 3,390 Total Wholesale50,67146,77513,417 11,142 Retail8,4498,6424,215 4,283 Portfolio3409284282 156 Total Domain Services59,52955,70117,914 15,581 Network Expenses:Network, other costs--(2,416)(2,395)Network, depreciation and amortization costs--(3,231)(1,975)Total Network expenses--(5,647)(4,370) Total83,98578,95325,150 22,651 3. During the first quarter of 2020, portfolio revenue consisted of individual sales from its surname portfolio following the sale of the Company’s remaining domain name portfolio in the fourth quarter of 2019. Going forward, portfolio revenue will only consist of surname portfolio sales. “The first quarter was a very solid start to 2020, ...