Tucows reported Q2 2019 results

Tucows Inc. (NASDAQ:TCX, TSX:TC) reported its financial results for the second quarter ended June 30, 2019. All figures are in U.S. dollars.

“The second quarter of 2019 was highlighted by year-over-year growth in revenue and gross margin as our domains and Ting Mobile businesses continued to generate strong cash flows to invest in our long-term Ting Internet growth opportunity,” said Elliot Noss, President and Chief Executive Officer, Tucows Inc. “The second quarter saw continued steady progress at Ting Internet, marked by our best quarter ever in terms of new subscribers, continued expansion in the number of serviceable addresses, and our highest ever level of capital expenditure as we continue to build out the network for the long-term growth of the business.”

Financial Results

Net revenue for the second quarter of 2019 increased 4% to $84.1 million from $81.1 million for the second quarter of 2018.

Net income for the second quarter of 2019 was $2.6 million, or $0.25 per share compared with $3.6 million, or $0.34 per share, for the second quarter of 2018.

Adjusted EBITDA for the second quarter of 2019 increased 3% to $11.5 million from $11.2 million for the second quarter of 2018. Adjusted EBITDA for the second quarter 2019 reflects the impact of the purchase price accounting adjustment related to the fair value write down of deferred revenue from the Ascio acquisition, which lowered Adjusted EBITDA by $0.7 million.

Cash and cash equivalents at the end of the second quarter of 2019 were $12.0 million compared with $11.0 million at the end of the first quarter of 2019 and $11.2 million at the end of the second quarter of 2018.