NASDAQ$TCX

Tucows Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Tucows' financial performance remained stable, with revenue impacted by the sale of Ting Mobile customer relationships but offset by growth in Domains and Ting Internet businesses.

Tucows reported a decrease in net revenue and net income for Q1 2021, primarily due to the sale of its Ting Mobile customer relationships to DISH. However, the combined Domains and Ting Internet businesses saw revenue growth. Adjusted EBITDA remained relatively flat. The company is focusing on profitability in its Domains business and investing in the Ting Internet business.

  • Net revenue decreased due to the sale of Ting Mobile customer relationships.
  • Excluding Mobile Services, combined Domains and Ting Internet revenue increased by 4%.
  • Net income decreased due to higher Fiber network related depreciation and a slightly higher effective annual tax rate.
  • Adjusted EBITDA remained flat year-over-year.

Headline financials

Total Revenue

$70.9M

Previous: $84M-15.6%
EPS (adj)

$0.20

Previous: $0.26-23.1%
Adjusted EBITDA

$12.7M

No prior period
Capital Expenditures

-$13.9M

Previous: -$9.94M-40.2%
Free Cash Flow

-$11.8M

Previous: -$7.11M-65.9%
Net Income

$2.15M

Previous: $2.83M-24.2%
Operating Income

-$1.13M

Previous: $5.17M-121.9%
Gross Profit

$17.5M

Previous: $25.2M-30.6%
Cash & Equivalents

$8.31M

Previous: $12.4M-33.2%
Total Assets

$464M

Previous: $438M+6.0%
Stock-Based Comp

$1.02M

Previous: $801K+27.6%

Revenue & EPS history

Tucows · Revenue · Quarterly

$70.9M

Q1 2021-15.6%vs Q1 2020
Beat estimate in 4 of 12 quarters(33%)
ActualEstimate

Forward guidance

Management expects continued growth in the Domains and Ting Internet businesses, with a focus on profitability and strategic investments in fiber infrastructure. The Mobile Services business is expected to contribute through the MSE platform, leveraging the DISH partnership.

Tailwinds

  • Growth in Domains and Ting Internet businesses.
  • Focus on profitability in the Domains business.
  • Strategic investments in fiber infrastructure.
  • Contribution from the Mobile Services business through the MSE platform.
  • Leveraging the DISH partnership for Mobile Services.

Headwinds

  • Decelerating new registration volumes in Domains.
  • Impact of Ting Mobile customer relationships sale on revenue.
  • Higher Fiber network related depreciation.
  • Slightly higher effective annual tax rate.
  • Uncertainties and risks associated with forward-looking statements.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.4%

Avg return

Earnings day

-2.0%

Avg return

5 days after

-1.9%

Avg return

30 days after

49%

32 / 65 earnings

Positive

+31.1%

Q3 2012

Best reaction

-20.7%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.0%-7.2%-14.7%
Q4 2025+5.6%-2.2%-11.2%
Q3 2025+4.6%+11.1%+8.1%
Q1 2025-2.2%+0.0%+11.7%
Q4 2024+26.6%-11.1%-16.4%
Q3 2024-8.0%-10.2%+2.7%
Q2 2024-7.1%-10.1%-14.6%
Q1 2024+4.3%+16.0%+22.5%
Q4 2023-5.7%-13.5%-15.9%
Q3 2023+23.5%+26.4%+41.9%
Q2 2023-10.7%-21.6%-9.2%
Q1 2023-12.2%-10.8%+11.0%
Q4 2022-0.7%+0.9%-32.8%
Q3 2022-20.7%-20.0%-25.5%
Q2 2022+12.6%+9.9%-5.9%
Q1 2022-11.2%-11.5%-11.5%
Q4 2021-2.1%-1.0%-18.1%
Q3 2021+5.1%+3.5%-6.9%
Q2 2021+2.1%-0.9%+1.1%
Q1 2021+5.0%+6.2%+6.0%
Q4 2020-7.4%-7.5%-10.7%
Q3 2020-5.6%-2.3%+2.3%
Q2 2020-6.7%-9.3%-11.3%
Q1 2020+6.4%+1.3%+15.3%
Q4 2019-4.5%-4.6%-21.1%
Q3 2019+5.9%+7.2%+4.3%
Q2 2019+4.3%+4.0%+17.8%
Q1 2019-19.2%-23.1%-27.1%
Q4 2018+0.5%+5.1%+12.1%
Q3 2018+16.9%+9.4%+14.9%
Q2 2018-4.1%-2.3%-1.7%
Q1 2018-4.8%-3.8%+0.1%
Q4 2017+5.0%-1.9%-0.9%
Q3 2017-3.8%-1.1%+2.1%
Q2 2017+12.4%+1.8%-2.8%
Q1 2017-5.7%-2.6%-0.8%
Q4 2016-5.6%-4.2%-4.6%
Q3 2016+5.1%+9.0%+20.2%
Q2 2016-5.2%-5.8%-3.8%
Q1 2016+6.0%
Q4 2015+4.0%
Q3 2015-2.4%
Q2 2015-4.3%
Q1 2015+7.5%
Q4 2014-0.1%
Q3 2014+2.4%
Q2 2014+2.3%
Q1 2014-3.2%
Q4 2013-2.4%
Q3 2013+8.0%
Q2 2013+9.2%
Q1 2013-9.5%
Q4 2012-12.4%
Q3 2012+31.1%
Q2 2012-4.4%
Q1 2012-8.1%
Q4 2009+5.9%
Q1 2011+5.9%
Q4 2011+5.9%
Q3 2010+1.1%
Q3 2011+1.1%
Q4 2010+0.0%
Q2 2011+0.0%
Q2 2010-3.8%
Q1 2010-4.2%

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