Tucows Inc. (NASDAQ:TCX) Q4 2023 Earnings Call Transcript
Tucows Inc. (NASDAQ:TCX) Q4 2023 Earnings Call Transcript February 22, 2024
Tucows Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Monica Webb: Welcome to Tucows Fourth Quarter 2023 Management Commentary. We have prerecorded prepared remarks regarding the quarter and outlook for the company. A Tucows-generated transcript of these remarks, with relevant links, is also available on the company’s website. In lieu of a live question-and-answer period following these remarks, shareholders, analysts and prospective investors are invited to submit questions to Tucows management. Please submit questions via email to ir@tucows. com until Thursday, February 29th. Management will either address your questions directly or provide a recorded audio response and transcript that will be posted to the Tucows website on Tuesday, March 12th, at approximately 4 p. m. Eastern time.
We would also like to advise that the updated Tucows Quarterly KPI Summary, which provides key metrics for all of our businesses for the last eight quarters, as well as for full years 2021, 2022 and 2023, and also includes historical financial results is available in the Investors section of the website along with the updated Ting Build Scorecard and Investor Presentation. Now for management's prepared remarks: On Thursday, February 22, Tucows issued a news release reporting its financial results for the fourth quarter ended December 31, 2023. That news release and the Company’s financial statements are available on the Company’s website at tucows. com under the Investors section. Please note that the following discussion may include forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially.
These risk factors are described in detail in the Company's documents filed with the SEC, specifically the most recent reports on the Forms 10-K and 10-Q. The Company urges you to read its security filings for a full description of the risk factors applicable to its business. I would now like to turn the call over to Tucows President and Chief Executive Officer Elliot Noss. Go ahead, Elliot.
Elliot Noss: Thanks, Monica. We finished 2023 with positive momentum in all of our businesses. Tucows Adjusted EBITDA for 2023 outside of Ting was $59.6 million and with Ting was $15.5 million, at the higher end of our annual guidance range. This was driven by robust growth from Wavelo and consistent performance of Tucows Domains, and offset by our continued investment in Ting. Tucows consolidated revenue grew 10% year-over-year, and a strong finish to the year helped drive Tucows operating cash flow to $9 million in the fourth quarter, up from $2.9 million in Q4 of last year. We also repaid a further $11.5 million on the balance of the non-Ting syndicated loan this quarter, which takes us to $28 million paid down in 2023. Now that we’ve continued deleveraging and are squarely focused on addressing the financing challenges of the Ting business, which spilled over to TCX we are more and more getting back to Tucows being a cash generating machine.
Which is the right place to be in today’s macroeconomic environment. Again this year we’ve authorized a buyback program for up to $40 million in Tucows stock. We do this every year, whether or not we can foresee using it at the time we do the authorization. This is a formality. Now we’ll hear from the heads of each business, as well as from our CFO, Dave Singh, who will cover our financial results in detail. The first speaker is Dave Woroch, Chief Executive Officer, Tucows Domains. Go ahead, Dave.
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