Tucows Delivers on 2024 Adjusted EBITDA Guidance and Fourth Consecutive Year of Revenue Growth

In the ever-evolving landscape of technology and internet services, one company has consistently delivered on its promises and maintained a steady growth trajectory: Tucows Inc. (NASDAQ: TCX, TSX: TC). The global internet services leader recently reported its financial results for the second quarter ended June 30, 2024, showcasing a strong performance across its key metrics.



Tucows' strategic focus on stable, cash-generating businesses has been a significant driver of its consistent revenue growth and improved Adjusted EBITDA performance. The company's three main segments—Ting, Wavelo, and Tucows Domains—have each contributed to this success.

1. Ting Internet Services: Tucows' fiber and fixed wireless internet services have shown robust subscriber growth and gross margin increases. In the second quarter of 2024, Ting's revenue increased by 5.2% year-over-year, driven by a 17% increase in revenue and a 20% increase in gross margin compared to the same quarter last year. This growth is a testament to the company's focus on providing reliable internet services that generate consistent cash flow.
2. Wavelo Platform Services: Wavelo, Tucows' event-driven software solutions business, has experienced significant growth. In the third quarter of 2024, Wavelo's revenue increased by 174% year-over-year, with gross margin and adjusted EBITDA increasing by 176% and 566%, respectively. This growth is a result of the company's focus on providing innovative, high-margin software solutions that generate stable cash flow.
3. Tucows Domains: Tucows' domain name registration and management services have returned to steady state, contributing to the company's consistent revenue growth. In the second quarter of 2024, Tucows Domains' revenue increased by 4% year-over-year, with gross margin increasing by 5% compared to the same quarter last year. This growth is a result of the company's focus on providing reliable domain name services that generate consistent cash flow.

Tucows' capital allocation strategy has also played a crucial role in its long-term success. The company has been making strategic investments in growth areas while effectively managing its debt. In the third quarter of 2024, Tucows signed a new banking credit agreement for its syndicated debt, securing improved terms and providing further stability and capital for growth. Additionally, the company has been directing cash flow from its Wavelo and Tucows Domains segments to pay down its syndicated debt, demonstrating its commitment to debt management.



In conclusion, Tucows' strategic focus on stable, cash-generating businesses, coupled with its effective capital allocation strategy, has driven its consistent revenue growth and improved Adjusted EBITDA performance. The company's ability to generate cash flow from its core businesses has allowed it to invest in growth opportunities, manage its debt, and set itself up for a long runway of growth. As Tucows continues to deliver on its promises and maintain its steady growth trajectory, investors can remain confident in the company's prospects for the future.