TORONTO, May 9, 2024 /CNW/ - Tucows Inc. (NASDAQ:TCX) (TSX:TC), a global internet services leader, today reported its financial results for the first quarter ended March 31, 2024. All figures are in U.S. dollars. "We finished the first quarter of 2024 with strong year-over-year growth of revenue, gross margin and adjusted EBITDA, driven by Wavelo's performance on a fully-migrated Boost subscriber base, robust subscriber growth at Ting, and a solid quarter from Tucows Domains," said Elliot Noss, Tucows President and CEO. "We continue to balance investment in building the Ting and Wavelo businesses with managing our debt. In Q1, we continued to deleverage the business with payments on the syndicated debt using cash flow from Wavelo and Tucows Domains." Financial Results Consolidated net revenue for the first quarter of 2024 increased 8.7% to $87.5 million from $80.4 million for the first quarter of 2023. Revenue in all business segments increased, with strong dollar gains year over year from Domains, Ting and Wavelo. Gross profit for the first quarter of 2024 increased 30.3% to $18.3 million from $14.1 million from the first quarter of 2023. The increase in gross profit was driven primarily by gross profit gains from Wavelo, as well as gross profit increases for Ting and Domains. The increase was partially offset by increased network depreciation and network expenses as the Ting network footprint expands. Net loss for the first quarter of 2024 was $26.5 million, or a loss of $2.42 per share, compared with net loss of $19.1 million, or $1.77 per share, for the first quarter of 2023. The increased loss is primarily the result of higher taxes and interest expenses, higher network depreciation, and a slightly higher operating loss as part of the planned investment in Ting. Adjusted EBITDA1 for the first quarter of 2024 increased 38.7% to $4.2 million from $3.0 million for the first quarter of 2023. The increase in adjusted EBITDA1 was primarily driven by strong growth and cost management of the Wavelo business. Cash equivalents, restricted cash and restricted cash equivalents at the end of the first quarter of 2024 were $79.4 million compared with $105.0 million at the end of the fourth quarter of 2023 and $11.8 million at the end of the first quarter of 2023. Summary Financial Results(In Thousands of US Dollars, Except Per Share Data) 3 Months ended March 31 2024 (unaudited) 2023 (unaudited) % Change Net Revenues 87,457 80,430 9 % Gross Profit 18,316 14,061 30 % Income Earned on Sale of Transferred Assets, net 3,621 4,370 (17) % Net Income (Loss) (26,484) (19,083) (39) % Basic earnings (Loss) per common share (2.42) (1.77) (37) % Adjusted EBITDA¹ 4,202 3,030 39 % Net cash by (used in) operating activities (5,678) (5,251) (8) % 1. This Non-GAAP financial measure is described below and reconciled to GAAP net income in the accompanying table. Summary of Revenues, Gross Profit and Adjusted EBITDA(In Thousands of US Dollars) Revenue Gross Margin Adj. EBITDA¹ 3 Months ended March 31 3 Months ended March 31 3 Months ended March 31 2024(unaudited) 2023(unaudited) 2024(unaudited) 2023(unaudited) 2024(unaudited) 2023(unaudited) Ting Internet Services: Fiber Internet Services 14,102 11,853 8,742 7,868 (9,537)