Digging into Tucows’ annual note

Some notable items from Tucows’ 10-k.

Tucows (NASDAQ:TCX) filed its annual note yesterday. Here are some things I found interesting:

1. The firm now has 558 full-time employees. With $329 million in revenue, that’s regarding $600k of revenue per employee.

2. Tucows had 22.3M domains under management (DUM) on its own accreditations at the end of 2017 and a further 5.4 million on its platform managed under resellers’ accreditations. That’s a total of 27.7 million DUM.

3. In January, the Firm completed a bulk transfer of 2.65 million names to former reseller Namecheap following a court order. As a result of the bulk transfer, the Firm will recognize in the first quarter of 2018 $14.6 million of revenue and $14.5 million of cost of goods sold related to previously deferred revenue and deferred prepaid registry fees.

That narrow spread shows how little margin it received on Namecheap domains. Still, Tucows did receive expiry and PPC revenue from these domains as well.