A short term hit but CEO Noss is optimistic — Tucows takes
Firm hits stumbling blocks in Q1.
It is truly a quarter where it would be a lot easier to be private than public, but all of that makes me continually grateful for the nature of our investors.
That’s what Tucows CEO Elliot Noss had to say regarding his firm’s first quarter 2019 results released yesterday.
Tucows (NASDAQ: TCX) noted declining year-over-year numbers. Revenue was down 18% and net income fell 25%.
The results weren’t nearly as bad as the headline numbers. In Q1 2018 the firm accelerated revenue recognization for domains it transferred to Namecheap. Take that out and the revenue number slipped just 3%.
That’s still the wrong direction and there were some hits during the quarter, but Noss states they’re just short-term. The firm had setbacks on Ting Mobile and in the domain aftermarket. Expired domain revenue was lackluster.
But Noss points to the firm’s long-term trends in fiber and fixing some carrier relationships for mobile as pointing in the right direction. The Ascio buyout will also boost the firm going forward.
