Continues steady performance in Q2 — Tucows Domains

Domain name business grows slightly with another consistent quarter.

Tucows (NASDAQ: TCX) noted Q2 earnings following the market closed yesterday.

The firm has three main business segments: Tucows Domains, Ting fiber, and telecom software business Wavelo.

Q2 revenue from the domain business was $62.4 million, up 4% year over year. The gross margin for the business was $18.9 million, up 5% year over year.

Revenue in the firm’s wholesale domain business increased from $51.5 million a year ago to $53.0 million this quarter. The retail segment increased from $8.4 million to $9.4 million. Some of the increase in the retail business is from wholesale clients moving over to the retail side.

While the number of domains on Tucows’ accreditations slipped, the firm also provides registration services for registrars with their own accreditations. That number has increased year-to-date, so the net number of domain registrations on Tucows’ platform has increased slightly. The total between its own accreditations and reseller accreditations at the end of June was 24.5 million domains.

It’s not a sexy business for Tucows, but domains continue to consistently throw off cash.