Business
Tucows Reports Financial Results for First Quarter 2023
TORONTO, May 8, 2023 /PRNewswire/ - Tucows Inc. (NASDAQ: TCX) (TSX: TC), a global internet services leader, today reported its financial results for the first
About this update from Tucows Inc.
[{"type":"text","content":"TORONTO, May 8, 2023 /PRNewswire/ - Tucows Inc. (NASDAQ: TCX) (TSX: TC), a global internet services leader, today reported its financial results for the first quarter ended March 31, 2023. All figures are in U.S. dollars.\n\n \n \n \n \n \n \n\n \n\"Our first quarter results show the resilience of the Tucows businesses in the face of macroeconomic uncertainty over the last year, as well as the active role we're taking in managing our operations for efficiency and long-term growth, said Elliot Noss, Tucows President and CEO. Our Ting business saw a 21% increase in revenue year over year, and just closed on $239 million in new funding. Wavelo has accelerated subscriber migration, and saw a 63% increase in revenue from last quarter. Our Tucows Domains business has seen domains under management and transactions stabilize post-pandemic, and we expect revenues and margin to similarly return to incremental growth as we realize the benefits of foreign exchange related price increases in the second half of 2022. And we've used cash flow from Wavelo and Tucows Domains to reduce our syndicated debt this quarter.\"\nFinancial Results\nConsolidated net revenue for the first quarter of 2023 decreased 0.8% to $80.4 million from $81.1 million for the first quarter of 2022. The growth in Ting and Wavelo revenues was offset primarily by a decrease in revenues in Tucows Domains. Although domains under management and transactions have stabilized post pandemic, there was a lower contribution from Expiry aftermarket sales in our Domains business.\nGross profit for the first quarter of 2023 decreased 34% to $14.1 million from $21.2 million for the first quarter of 2022. The decrease in Gross profit was driven primarily by increased network depreciation and impairment costs, as well as lower margin from our Domains business related to the lower Expiry aftermarket sales and prior year's elevated pandemic related results and the impact of the foreign exchange related price increases not being fully realized yet. The decrease in Gross profit was partially offset by growth in the gross margin for both Ting and Wavelo.\nNet loss for the first quarter of 2023 was $19.1 million, or a loss of $1.77 per share, compared with net loss of $3.0 million, or $0.28 per share, for the first quarter of 2022, with the loss being the result of accelerated build of our Tin...