Tucows Inc., a global internet services leader, today reported its financial results for the second quarter ended June 30, 2022. All figures are in U.S. dollars.
“We had a strong second quarter, with revenue and gross profit up 11% and 21% year over year respectively, driven by strong growth in each of our Ting Internet Services (“Ting”) and Wavelo Platform Services (“Wavelo”) businesses, and another quarter of consistent performance from our Tucows Domain Services (“Tucows Domains”) business,” said Elliot Noss, President and Chief Executive Officer, Tucows Inc. “Adjusted EBITDA increased 5% in Q2 of 2022 compared to Q2 of 2021. The increase was fueled by growth in Wavelo, but offset by the continued Ting investment, from the acceleration of our build and operations of the Ting fiber network. We again achieved a new record for trailing 12-month capital expenditure for the Ting opportunity.”
Net revenue for the second quarter of 2022 increased 11% to $83.1 million from $75.1 million for the second quarter of 2021. The increase was the result of growth in revenue from each of Ting Internet Services and Wavelo Platform Services businesses.
Gross profit for the second quarter of 2022 increased 21% to $22.1 million from $18.2 million for the second quarter of 2021. The increase was the result of the same factors as net revenue.
Net loss for the second quarter of 2022 was $3.1 million, or a loss of $0.29 per share, compared with net income of $1.8 million, or $0.17 per share, for the second quarter of 2021 with the loss being the result of accelerated build of our Ting Internet Services fiber network and ramp up of operations, higher depreciation and interest expenses.
Adjusted EBITDA1 for the second quarter of 2022 increased 5% to $11.7 million from $11.2 million for the second quarter of 2021. The modest increase in adjusted EBITDA1 was mainly fueled by growth in Wavelo, which was offset by the ongoing investment in Ting, which was expected as we continue to accelerate the build of our Ting Internet Services fiber network and ramp up operations.
Cash and cash equivalents at the end of the second quarter of 2022 were $6.5 million compared with $6.2 million at the end of the first quarter of 2022 and $7.3 million at the end of the second quarter of 2021.