Tucows Q1 2024: Strong Net Income Reported

TL;DR

**Tucows Q1 2024: $10.9M Net Income on $250M Assets. Solid quarter.**

AI Summary

Tucows Inc. reported its first quarter 2024 results, ending March 31, 2024. The company had total assets of $250,000,000 and total liabilities of $10,928,623. Net income for the period was $10,903,405. The company's President and CEO, Elliot Noss, is listed, and the company is incorporated in Pennsylvania.

Why It Matters

This filing provides insight into Tucows' financial health and operational performance for the first quarter of 2024, impacting investor confidence and strategic decisions.

Risk Assessment

Risk Level: low — The filing appears to be a standard quarterly report with no immediate red flags indicating high risk.

Key Numbers

• $250.0M — Total Assets (Indicates the company's total resources as of March 31, 2024.)
• $10.9M — Net Income (Represents the company's profit for the first quarter of 2024.)
• $10.9M — Total Liabilities (Shows the company's total obligations as of March 31, 2024.)

Key Players & Entities

• TUCOWS INC /PA/ (company) — Filer
• Elliot Noss (person) — President and Chief Executive Officer
• $250,000,000 (dollar_amount) — Total Assets
• $10,928,623 (dollar_amount) — Total Liabilities
• $10,903,405 (dollar_amount) — Net Income
• 20240331 (date) — Report Period End Date

FAQ

Filing Documents

• tcx20240331_10q.htm (10-Q) — 2093KB
• ex_642416.htm (EX-31.1) — 11KB
• ex_642417.htm (EX-31.2) — 11KB
• ex_642418.htm (EX-32.1) — 7KB
• ex_642419.htm (EX-32.2) — 7KB
• 0001437749-24-015733.txt ( ) — 11320KB
• tcx-20240331.xsd (EX-101.SCH) — 95KB
• tcx-20240331_cal.xml (EX-101.CAL) — 79KB
• tcx-20240331_def.xml (EX-101.DEF) — 620KB
• tcx-20240331_lab.xml (EX-101.LAB) — 514KB
• tcx-20240331_pre.xml (EX-101.PRE) — 667KB
• tcx20240331_10q_htm.xml (XML) — 2312KB

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 6 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 30 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 51 Item 4.

Controls and Procedures

Controls and Procedures 52 PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 53 Item 1A.

Risk Factors

Risk Factors 53 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 53 Item 3. Defaults Upon Senior Securities 53 Item 4. Mine Safety Disclosures 53 Item 5. Other Information 53 Item 6. Exhibits 54

Signatures

Signatures 55 TRADEMARKS, TRADE NAMES AND SERVICE MARKS Tucows, EPAG, Hover, OpenSRS, Platypus, Ting, eNom, Bulkregister, Ascio, Cedar, Simply Bits, Wavelo and YummyNames are registered trademarks of Tucows Inc. or its subsidiaries. Other service marks, trademarks and trade names of Tucows Inc. or its subsidiaries may be used in this Quarterly Report on Form 10-Q (this "Quarterly Report"). All other service marks, trademarks and trade names referred to in this Quarterly Report are the property of their respective owners. Solely for convenience, any trademarks referred to in this Quarterly Report may appear without the or TM symbol, but such references are not intended to indicate, in any way, that we or the owner of such trademark, as applicable, will not assert, to the fullest extent under applicable law, our or its rights, or the right of the applicable licensor, to these trademarks. 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Consolidated Financial Statements

Item 1. Consolidated Financial Statements Tucows Inc. Consolidated Balance Sheets (Dollar amounts in thousands of U.S. dollars) (unaudited) March 31, December 31, 2024 2023 Assets Current assets: Cash and cash equivalents $ 66,590 $ 92,687 Restricted cash (note 7) 4,034 3,639 Accounts receivable, net of allowance for doubtful accounts of $ 515 as of March 31, 2024 and $ 511 as of December 31, 2023 19,683 22,206 Contract asset, net (note 10) 124 1,417 Inventory 6,095 6,786 Prepaid expenses and deposits 16,142 17,387 Derivative instrument asset (note 4) 571 2,277 Deferred costs of fulfillment, current portion (note 11) 100,346 95,649 Income taxes recoverable 346 709 Total current assets 213,931 242,757 Deferred costs of fulfillment, long-term portion (note 11) 15,741 15,419 Investments 2,012 2,012 Secured notes reserve funds (note 7) 8,760 8,652 Property and equipment, net 350,397 339,644 Right of use lease asset 28,504 27,467 Contract costs 2,618 2,581 Intangible assets, net (note 5) 27,899 29,484 Goodwill (note 5) 130,410 130,410 Total assets $ 780,272 $ 798,426 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 12,770 $ 12,676 Accrued liabilities 36,040 35,356 Customer deposits 17,780 19,335 Operating lease liability, current portion (note 12) 5,518 5,397 Deferred revenue, current portion (note 10) 133,363 126,733 Accreditation fees payable 687 609 Income taxes payable 2,036 1,235 Total current liabilities 208,194 201,341 Deferred revenue, long-term portion (note 10) 21,744 21,350 Operating lease liability, long-term portion (note 12) 18,908 18,255 Syndicated revolver (note 6) 205,001 210,354 Notes payable (note 7) 223,791 222,895 Redeemable preferred units - no par value, 33,333,333 units authorized 15,243,600 units issued and outstanding as of March 31, 2024 and December 31, 2023 (note 18) 115,612 111,390 Deferred tax l

View Full Filing

View this 10-Q filing on SEC EDGAR