Tucows’ revenue drops on Namecheap transfers

Tucows’ revenue drops on Namecheap transfers

Bulk transfer during Q1 hits revenue at Tucows.

Domain name company Tucows (NASDAQ: TCX) reported second quarter 2018 earnings after the market closed yesterday.

Revenue fell 4% year-over-year to $81.1 million. This was not a surprise and it mostly relates to the bulk transfer of 2.65 million domain name to Namecheap. The Namecheap contract was low margin; the gross margin for the wholesale domain business fell by only $350,000.

Net income fell 31% year-over-year to $3.6 million, but Tucows’ adjusted EBITDA number posted an 8% gain to $11.2 million.

While Namecheap hurt the overall revenue from the domains business, its retail domain operation and portfolio business showed gains. Ting Mobile also showed growth.

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