Tucows 2024 financial results

Tucows Inc. (NASDAQ: TCX) (TSX: TC) reported its unaudited financial results for the fourth quarter and full year ended December 31, 2024. All figures are in U.S. dollars.

“Tucows closed 2024 with strong operating revenue growth for the fourth consecutive year, showing the resilience of our business,” said Elliot Noss, Tucows President and CEO. “Adjusted EBITDA for the year reached the top of our guidance range, driven in large part by Ting’s improved results. While Q4 profitability was affected by an annual impairment charge for Ting and restructuring costs associated with workforce reductions, these were one-time impacts. Excluding these charges, we are seeing meaningful improvements across our key financial metrics as we continue to optimize revenue and cost efficiencies. Additionally, we made further progress in deleveraging the business, using cash flow from Wavelo and Tucows Domains to reduce our syndicated debt.”

Financial Results

Consolidated net revenue for the fourth quarter of 2024 increased 7.1% to $93.1 million from $87.0 million for the fourth quarter of 2023, driven primarily by year-over-year revenue gains from Ting and Tucows Domains.

Gross profit for the fourth quarter of 2024 increased 19% to $21.2 million from $17.8 million from the fourth quarter of 2023. The increase in gross profit was due primarily driven by year-over-year gains from the Ting and Domains businesses.

Net loss for the fourth quarter of 2024 was $45.3 million, or a loss of $4.11 per share, compared with net loss of $23.4 million, or a loss of $2.14 per share, for the fourth quarter of 2023. The increased loss was primarily a result of one-time impairment in Ting and restructuring charges, as well as increased interest expense. Excluding impairment, restructuring items and other transition costs, Adjusted net income¹ (loss) and Adjusted EPS¹ in Q4 2024 are ($15.8 million) and ($1.43) per share compared to Q4 2023 Adjusted net income¹ (loss) of ($22.4 million) and Adjusted EPS¹ of ($2.05) per share.

Adjusted EBITDA¹ for the fourth quarter of 2024 increased 403% to $12.8 million from $2.6 million for the fourth quarter of 2023. The year-over-year increase was primarily due to growth of revenues from Domains and Ting, and cost management in the Ting business.

Cash equivalents, restricted cash and restricted cash equivalents at the end of the fourth quarter of 2024 were $73.2 million compared with $91.1 million at the end of the third quarter of 2024 and $92.7 million at the end of the fourth quarter of 2023.