Tucows Inc. (NYSE AMEX:TCX) (TC.TO), reported its financial results for the second quarter ended June 30, 2012 after the market closed today.
Net revenue for the second quarter of 2012 increased 22% to a record $28.2 million from $23.0 million for the second quarter of 2011 and was driven by growth in each of the Company’s three service categories.
Tucows sold just about $1.6 million in domains for the three months ending June 30, 2012
Net income for the second quarter of 2012 was $0.7 million, or $0.02 per share, compared with net income for the second quarter of 2011 of $0.6 million, or $0.01 per share.
Deferred revenue at the end of the second quarter of 2012 was $74.5 million, an increase of 12% from $66.8 million at the end of the second quarter of 2011 and an increase of 2% from $73.0 at the end of the first quarter of 2012.
Cash and cash equivalents at the end of the second quarter of 2012 were $4.5 million compared with $6.4 million at the end of the first quarter of 2012 and relatively unchanged from the end of the second quarter of 2011.
“The second quarter was our ninth consecutive quarter of record revenue, up 22% year-over-year,” said Elliot Noss, President and Chief Executive Officer, Tucows Inc. “Our strong performance was driven by meaningful growth in each of our three service categories. Wholesale continues to benefit from new service introductions and customer wins. Retail continues to grow as a result of our relentless focus on customer experience. Our Portfolio is providing predictable revenue streams with strong inventory sales.”
Mr. Noss continued, “With this kind of consistency in our performance and leverage in our business model, plus promising new opportunities on the horizon like gTLDs and Ting, Tucows is well positioned to deliver continued growth and to return capital to shareholders over the long term.”
“During the second quarter of 2012, the Company generated cash flow from operations of $4,000 compared with $825,000 for the same quarter of 2011. Cash flow from operations during the second quarter of 2012 was impacted by the Company investing $1.1 million in applications to own and operate six new gTLD registries under ICANN’s new gTLD program. In addition, the Company used $1.6 million for the repurchase of stock under its ongoing normal course issuer bid, $0.3 million for principal repayments under its credit facility and invested $0.2 million in equipment purchases.”
Those numbers don’t surprise me a bit. Even with our very limited domain portfolio (less than 200 names), we are getting multiple, weekly iquiries and offers…even a few sales.
The economy is strengthening.
Tucows has some great name domains, and other jewels in their collection… I don’t think they auction their drops, instead keeping them…
@ Ron, Tucows expired domains flow to SnapNames auction, many thousands up for auction each and every day of the year.
I think you acquired some of your earlier NAME domains by not auctioning them off, but keeping them from the owner drops?
@Ron, if you are referring to the surname domains in our Personal Names Service, those were acquired when we bought the company NetIdentity Inc. They were not from the expiry stream.
Bill,
I know you guys were keeping some names that made business sense to keep and released the remaining drops that you guys did not want to hold onto so anyone else could bid on those through snapnames. Has that changed?
Steven
@ Steven, that strategy has not changed, and yes (to save us from opening up that can of worms yet again) I am well aware that some domainers are not fans of us because of that.
YummyNames is an inspiration for us at BrightNames, I personally believe the website itself is a big factor in their success not just the names — that’s our problem at BN, we’ve got the names but not the platform otherwise we could easily double our ∼$120K yearly sales.