In This Article:
Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Tucows Inc (NASDAQ:TCX) reported its fourth consecutive year of consolidated revenue growth, with a 19% year-over-year gross profit expansion.
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The company more than doubled its annual adjusted EBITDA to just under $35 million, representing a 126% increase from the previous year.
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Tucows Inc (NASDAQ:TCX) successfully moved Ting to a sustainable cost structure, generating slightly positive adjusted EBITDA for December.
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The company repaid $16.5 million on its syndicated bank loan in 2024, demonstrating financial discipline.
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Tucows Inc (NASDAQ:TCX) authorized a buyback program for 2025 for up to $40 million in stock, indicating confidence in its financial health.
Negative Points
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Tucows Inc (NASDAQ:TCX) reported a net loss of $45.3 million, primarily due to a one-time impairment and restructuring charge related to Ting's capital efficiency plan.
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The company experienced a decline in transactions for its domain services, with a slight decrease of just under 1% from Q4 of 2023.
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Wavelow's Q4 revenue was down 1.9% from Q3, indicating some volatility in quarterly performance.
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Ting's adjusted EBITDA showed a loss of $1.5 million in Q4, although this was an improvement from the previous year.
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The company faces headwinds in its domains business due to general Google search trends and the impact of a customer acquisition in 2023.
Q & A Highlights
Q: Can you provide an overview of Tucows Inc's financial performance for 2024? A: Eliot Noss, President and CEO, highlighted that 2024 marked the fourth consecutive year of consolidated revenue growth, with a 19% year-over-year gross profit expansion. The company more than doubled its annual adjusted EBITDA to just under $35 million. Excluding Ting, adjusted EBITDA was $57.4 million, at the top end of guidance. Tucows also repaid $16.5 million on its syndicated bank loan in 2024.
Q: How did the Domains segment perform in Q4 2024? A: Dave Warwick, CEO of Tua Domains, reported that the Domains segment saw revenue growth of 6% year-over-year to $65.7 million in Q4. The gross margin increased by 8% to $20.3 million, and adjusted EBITDA rose by 8% to $11.6 million. The segment maintained a steady domain management and renewal rate, with a focus on adjacent revenue opportunities and new products.
Q: What were the key achievements for Wavelow in 2024? A: Justin Riley, CEO of Wavelow, stated that 2024 was the best year yet for Wavelow, with revenue reaching $39.9 million, up from $38.7 million in 2023. Gross margin increased to $38.6 million, and adjusted EBITDA was $13.8 million, outperforming guidance. Wavelow renewed its partnership with EcoStar's Boost Mobile and added three new customers, focusing on growth and profitability.