Remains strong at Tucows — Domain business

Slow and steady…

Tucows (NASDAQ: TCX) noted Q4 2023 earnings following the market closed yesterday.

The firm posted total Q4 revenue of $87.0 million, up 10% year over year.

Tucows Domains accounted for $61.8 million of that. This compares to $60.3 million in the same quarter of 2022.

The wholesale division posted $52.5 million in revenue. A decrease in value-added services was from a shift of some revenue to the retail side.

Commenting on the results, Dave Woroch, CEO of Tucows Domains, stated:

The results were driven by an increase in the number of transactions in Q4, up 2%; and domains under management that were up slightly year over year. I would like to highlight that within our industry there is a range in the quality of fresh domains being registered, and our growth continues to be concentrated in higher quality and legitimate domain registrations.

In other words, the firm isn’t growing by selling dollar registrations in bulk.

Woroch also stated that the decline in domain aftermarket revenue experienced in previous quarters no longer impacts year-over-year numbers.