Tucows Inc. reported its financial results for the three and nine months ended September 30, 2024, showing notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the third quarter of 2024, Tucows achieved net revenues of $92.3 million, a 6% increase from $87.0 million in the same period of 2023. The growth was primarily driven by the Tucows Domains segment, which saw a revenue increase of $3.6 million due to higher domain management and pricing strategies. The Ting segment also contributed with a revenue rise of $2.5 million, attributed to subscriber growth from its fiber network expansion. However, the Wavelo segment experienced a decline of $1.0 million in revenues, mainly due to reduced platform and professional services.

For the nine months ended September 30, 2024, total net revenues reached $269.2 million, up 7% from $252.4 million in the prior year. The Tucows Domains segment led this increase with an $8.7 million rise, while Ting's revenue grew by $6.9 million. Wavelo's revenues increased slightly by $0.8 million, benefiting from the migration of the Boost Mobile subscriber base.

Despite the revenue growth, Tucows reported a net loss of $22.3 million for the third quarter, slightly improved from a loss of $22.8 million in the same quarter of 2023. For the nine-month period, the net loss was $67.4 million, compared to $72.8 million in the previous year. The company’s adjusted EBITDA for the third quarter was $8.7 million, a significant increase of 94% year-over-year, driven by improved contributions from Ting and Tucows Domains.

Strategically, Tucows has been active in managing its workforce, announcing a 13% reduction in the Ting segment in February 2024, which incurred costs of approximately $2.6 million. A further reduction impacting 42% of Ting's workforce was announced for October 2024, with estimated non-recurring charges of $7.4 million. These workforce adjustments are part of a broader Capital Efficiency Plan aimed at optimizing operations and reducing costs.

On the balance sheet, as of September 30, 2024, cash and cash equivalents decreased to $75.2 million from $92.7 million at the end of 2023. The company’s total current assets also fell to $221.6 million, down from $242.8 million. Notably, the accumulated deficit increased significantly to $(107.7 million) from $(40.3 million) at the end of 2023, reflecting ongoing operational challenges.

Tucows continues to navigate a competitive landscape, particularly in its domain services and fiber internet segments, while managing financial and operational risks associated with its growth strategies and market conditions.