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02|10|2009 03:45 pm EDT

Tucows Reports Q4 Results and Sells $1M Worth of Domain Names

by Chad Kettner in Categories: News

Tucows LogoTucows; a provider of domain names, email, and other online services; released their Q4 2008 revenues in its quarterly earnings call yesterday while also agreeing to sell a portfolio of domain names for $1 million.

The company reported net revenues of $19.2 million in the fourth quarter of 2008 compared to $18.2 million in Q4 2007. The 5% increase was mostly due to new registrations and renewals from their traditional domain registration services.

“During the fourth quarter, our strong competitive position continued to drive both new registration and renewal domain transaction volumes inside of our OpenSRS wholesale services business, contributing to year-over-year growth in revenue,” said Elliot Noss, President and CEO of Tucows. “While we benefitted from the sale of our equity stake in Afilias during the quarter, cash flow from operations was negatively impacted by the timing of payables, as well as one-time restructuring costs.”

Mr. Noss continued, “The domain name component of our OpenSRS Wholesale business is exhibiting solid growth, especially relative to the rest of the domain name market. Our launches of Hover, Butterscotch.com and YummyNames in 2008 have set the stage for us to grow each of these units in 2009.

With our email migration, employee downsizing and more favorable Canadian dollar environment, combined with our recurring revenue model based on high-volume, low-cost transactions, we will produce solid cash flow from operations, which will support our share repurchase programs and generate value for our shareholders.”

Tucows, which is based in Canada, was hampered by the weak Canadian dollar and experienced a loss on foreign exchange of $2.2 million compared to a gain of $106,000 in Q4 2007.

In related news, the company has also agreed to sell 2,553 domain names to an unaffiliated third party for $1 million – $900,000 of which will be paid to Tucows upon the closing of the sale, $50,000 to be paid on August 9, 2009, and another $50,000 to be paid on February 9, 2010.

[via Tucows and Yahoo Finance]

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2 Comments

[…] Read more here:  Tucows Reports Q4 Results and Sells $1M Worth of Domain Names … […]

Stephen Douglas

February 12, 2009 @ 8:36 am EDT

I think I will focus on commenting on this story on the best domainer blogs, and asking this questions:

What was Tucows’ understanding of ItsYourDomain.com’s domain management and their assessment of the IYD’s value from their own “secret domain portfolio”.

So, I’d like to hear from Noss on what made them buy IYD.

Thanks Adam and Frank.

I am interested in any discussion about IYD’s acquisition and WHY.

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