Tucows Q4 2024: Unpacking Conflicting Insights on Ting's Performance, Domain Growth, and Wavelo's Prospects

These are the key contradictions discussed in Tucows' latest 2024Q4 earnings call, specifically including: Ting's Financial Performance, Tucows Domains' Growth Expectations, and Wavelo's Customer Base and Growth Expectations:



Consolidated Revenue Growth and Profitability:
- Tucows reported total revenue of $93.1 million in Q4, up 7.1% year-over-year.
- The growth was driven by strong performances across all business units, with Tucows Domains achieving a 6% year-over-year growth in revenue, Ting increasing subscribers by 17%, and Wavelo attaining a 41% year-over-year growth in Adjusted EBITDA.

Improvements in Ting's Financial Performance:
- Ting reported revenue of $15.7 million in Q4, a 14% increase year-over-year, and Adjusted EBITDA moved from a $12.4 million loss in Q4 of 2023 to a $1.5 million loss in Q4 2024.
- The improvement was due to optimizing capital efficiency, reducing excess construction capacity, and increasing subscribers.

Wavelo's Revenue and Cash Flow Growth:
- Wavelo's revenue for the full year 2024 was $39.9 million, up from $38.7 million in 2023, while Adjusted EBITDA reached $13.8 million, outperforming guidance.
- The growth was attributed to successful customer renewals and new customer acquisitions, demonstrating a balance between growth and profitability.

Continuous Expansion in Ting's Serviceable Addresses:
- Ting's total serviceable addresses reached 192,300 across all footprints in 2024, with a 53% increase in partner addresses year-over-year.
- The expansion was driven by partner market ramp-ups and strategic planning for further market growth in cities like Memphis and Colorado Springs.