TUCOWS INC PA
For the period ended Mar 31, 2024. Filed May 9, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed May 9, 2024
TCX$13.32-1.5%Stored close · as of Nov 10, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 1. Consolidated Financial Statements
Tucows Inc.
Consolidated Balance Sheets
(Dollar amounts in thousands of U.S. dollars)
| March 31, | December 31, | |
|---|---|---|
| 2024 | 2023 | |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $66,590 | $92,687 |
| Restricted cash (note 7) | 4,034 | 3,639 |
| Accounts receivable, net of allowance for doubtful accounts of $515 as of March 31, 2024 and $511 as of December 31, 2023 | 19,683 | 22,206 |
| Contract asset, net (note 10) | 124 | 1,417 |
| Inventory | 6,095 | 6,786 |
| Prepaid expenses and deposits | 16,142 | 17,387 |
| Derivative instrument asset (note 4) | 571 | 2,277 |
| Deferred costs of fulfillment, current portion (note 11) | 100,346 | 95,649 |
| Income taxes recoverable | 346 | 709 |
| Total current assets | 213,931 | 242,757 |
| Deferred costs of fulfillment, long-term portion (note 11) | 15,741 | 15,419 |
| Investments | 2,012 | 2,012 |
| Secured notes reserve funds (note 7) | 8,760 | 8,652 |
| Property and equipment, net | 350,397 | 339,644 |
| Right of use lease asset | 28,504 | 27,467 |
| Contract costs | 2,618 | 2,581 |
| Intangible assets, net (note 5) | 27,899 | 29,484 |
| Goodwill (note 5) | 130,410 | 130,410 |
| Total assets | $780,272 | $798,426 |
| Liabilities and Stockholders' Equity | ||
| Current liabilities: | ||
| Accounts payable | $12,770 | $12,676 |
| Accrued liabilities | 36,040 | 35,356 |
| Customer deposits | 17,780 | 19,335 |
| Operating lease liability, current portion (note 12) | 5,518 | 5,397 |
| Deferred revenue, current portion (note 10) | 133,363 | 126,733 |
| Accreditation fees payable | 687 | 609 |
| Income taxes payable | 2,036 | 1,235 |
| Total current liabilities | 208,194 | 201,341 |
| Deferred revenue, long-term portion (note 10) | 21,744 | 21,350 |
| Operating lease liability, long-term portion (note 12) | 18,908 | 18,255 |
| Syndicated revolver (note 6) | 205,001 | 210,354 |
| Notes payable (note 7) | 223,791 | 222,895 |
| Redeemable preferred units - no par value, 33,333,333 units authorized; 15,243,600 units issued and outstanding as of March 31, 2024 and December 31, 2023 (note 18) | 115,612 | 111,390 |
| Deferred tax liability | 2,966 | 2,966 |
| Stockholders' deficit (note 14) | ||
| Common stock - no par value, 250,000,000 shares authorized; 10,928,623 shares issued and outstanding as of March 31, 2024 and 10,903,405 shares issued and outstanding as of December 31, 2023 (note 14) | 35,035 | 34,373 |
| Additional paid-in capital | 15,370 | 14,072 |
| Accumulated deficit | (66,782) | (40,298) |
| Accumulated other comprehensive income (note 4) | 433 | 1,728 |
| Total stockholders' deficit | (15,944) | 9,875 |
| Total liabilities and stockholders' deficit | $780,272 | $798,426 |
| Contingencies (note 20) | ||
Tucows Inc.
Consolidated Statements of Operations and Comprehensive Loss
(Dollar amounts in thousands of U.S. dollars, except per share amounts)
| For the Three Months Ended March 31, | ||
|---|---|---|
| 2024 | 2023 | |
| Net revenues (note 10) | $87,457 | $80,430 |
| Cost of revenues (note 10) | ||
| Direct cost of revenues | 51,794 | 49,290 |
| Network, other costs | 7,064 | 6,323 |
| Network, depreciation of property and equipment | 9,865 | 8,436 |
| Network, amortization of intangible assets (note 5) | 365 | 378 |
| Network, impairment of property and equipment | 53 | 1,942 |
| Total cost of revenues | 69,141 | 66,369 |
| Gross profit | 18,316 | 14,061 |
| Expenses: | ||
| Sales and marketing | 18,565 | 15,737 |
| Technical operations and development | 5,016 | 4,815 |
| General and administrative | 9,818 | 8,146 |
| Depreciation of property and equipment | 122 | 152 |
| Amortization of intangible assets (note 5) | 1,314 | 2,494 |
| Total expenses | 34,835 | 31,344 |
| Loss from operations | (16,519) | (17,283) |
| Other income (expenses): | ||
| Interest expense, net | (11,879) | (7,880) |
| Income earned on sale of transferred assets, net (note 17) | 3,621 | 4,370 |
| Other income (expense), net | 67 | - |
| Total other income (expenses) | (8,191) | (3,510) |
| Loss before provision for income taxes | (24,710) | (20,793) |
| Provision (recovery) for income taxes (note 8) | 1,774 | (1,710) |
| Net loss for the period | (26,484) | (19,083) |
| Other comprehensive income (loss), net of tax | ||
| Unrealized income (loss) on hedging activities (note 4) | (1,126) | 68 |
| Net amount reclassified to earnings (note 4) | (169) | (236) |
| Other comprehensive loss net of tax recovery of $413 and $52 for the three months ended March 31, 2024 and March 31, 2023 (note 4) | (1,295) | (168) |
| Comprehensive loss, for the period | $(27,779) | $(19,251) |
| Basic and diluted loss per common share (note 9) | $(2.42) | $(1.77) |
| Shares used in computing basic and diluted loss per common share (note 9) | 10,923,599 | 10,806,321 |
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