Business
Tucows Reports Financial Results for Second Quarter 2023
TORONTO, Aug. 3, 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, Aug. 3, 2023 /PRNewswire/ - Tucows Inc. (NASDAQ: TCX) (TSX: TC), a global internet services leader, today reported its financial results for the second quarter ended June 30, 2023. All figures are in U.S. dollars.\n\n \n \n \n \n \n \n\n \n\"Our second quarter results continue to show the potential of the Tucows growth businesses, said Elliot Noss, Tucows President and CEO. Our Ting and Wavelo businesses saw 21% and 20% increases in revenue respectively, year over year. But Wavelo was our standout business this quarter. The business completed the migration of 8 million-plus subscribers and had increases of 47% in revenue, 60% in gross profit, and 923% in Adjusted EBITDA in Q2 compared to Q1. 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 from the second half of 2022. And we've again used cash flow from Wavelo and Tucows Domains to reduce our syndicated debt this quarter.\"\nFinancial Results\nConsolidated net revenue for the second quarter of 2023 increased 2.3% to $85.0 million from $83.1 million for the second quarter of 2022. The growth in Ting and Wavelo revenues was offset by decreases in revenues in Tucows Domains and Tucows Corporate. 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 second quarter of 2023 decreased 18.2% to $18 million from $22.1 million for the second quarter of 2022. The decrease in Gross profit was driven primarily by increased network depreciation and network expenses, as the Ting network footprint expands. There were also impacts from lower year over year margin from our Domains business related to lower Expiry aftermarket sales. The decrease in Gross profit was partially offset by growth in gross margin for both Ting and Wavelo.\nNet loss for the second quarter of 2023 was $31.0 million, or a loss of $2.86 per share, compared with net loss of $3.0 million, or $0.29 per share, for the second quarter of 2022, with the loss being primarily the result of a one-time cost of $14.7 million associated with the early redemption of a portion of the Ting preferre...