Business
Tucows Reports Financial Results for Fourth Quarter 2022
TORONTO, Feb. 9, 2023 /PRNewswire/ - Tucows Inc. (NASDAQ: TCX) (TSX: TC), a global internet services leader, today reported its financial results for the
About this update from Tucows Inc.
[{"type":"text","content":"TORONTO, Feb. 9, 2023 /PRNewswire/ - Tucows Inc. (NASDAQ: TCX) (TSX: TC), a global internet services leader, today reported its financial results for the fourth quarter ended December 31, 2022. All figures are in U.S. dollars.\n\n \n \n \n \n \n \n\n \n\"Our fourth quarter results show Tucows weathering macroeconomic uncertainty and capital constraints with each business unit performing in line with its stage of business growth and guidance expectations. We continue to manage our businesses for the long term; investing in each one as appropriate to position them to generate stable, recurring revenues, meet future opportunities, and be operationally resilient,\" said Elliot Noss, President and Chief Executive Officer, Tucows Inc. \"We are pleased with the progress of the nascent Wavelo business, the growth trajectory of Ting, as evidenced by year over year revenue and margin growth, and the stability of our flagship Domains business.\"\nFinancial ResultsNet revenue for the fourth quarter of 2022 decreased 4.3% to $79 million from $82.5 million for the fourth quarter of 2021. The decrease was primarily the result of reduced one-time professional services revenues and as well as a revenue recognition impact related to the DISH agreement, both impacting Wavelo revenues that offset the growth of revenue from Ting.\nGross profit for the fourth quarter of 2022 decreased 30.8% to $17.0 million from $24.6 million for the fourth quarter of 2021. The decrease in Gross profit was driven by lower one-time high margin professional services and a revenue recognition impact related to the DISH agreement in Wavelo as well as increased network depreciation expenses. The decrease in Gross profit was partially offset by growth in Ting's gross margin.\nNet loss for the fourth quarter of 2022 was $13.4 million, or a loss of $1.25 per share, compared with net loss of $2.0 million, or $0.18 per share, for the fourth quarter of 2021 with the loss being the result of accelerated build of our Ting Internet Services fiber network and ramp up of operations, lower Wavelo contribution, higher effective tax rate as well as higher interest and stock based compensation expenses and higher depreciation. \nAdjusted EBITDA1 for the fourth quarter of 2022 decreased 47% to $6.7 million from $12.7 million for the fourth quarter of 2021. The decrease in adjusted EBITDA...