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TheStreet Open House

Tucows' CEO Discusses Q3 2011- Earnings Call Transcript

Eliot Noss

With me is Michael Cooperman our Chief Financial Officer. Today’s call will follow our usual format. I will begin with a brief overview of the financial and operational highlights for the quarter. Mike will then review our financial results in more detail and I will return with some concluding comments before opening the call up to questions.

Quarter-after-quarter our financial performance underscores the consistency and reliability of our business combined with our ability to achieve steady growth, and Q3 was no exception. Revenue grew by in excess of 18% year-over-year topping $25 million for the first time. With meaningful growth across all key areas of our business. Notably, YummyNames and Hover had particularly strong quarters as we continue to see the positive results of initiatives we have undertaken to grow these businesses.

In terms of cash generation, cash provided by operating activities for the quarter was a healthy $1.6 million. I’ll walk through the highlights of each of our services groups. In OpenSRS domain services revenue and transaction volumes were each up 19% compared to the third quarter of last year. We processed more than $2.1 million transactions in Q3, the first time we’ve exceeded that threshold and the third consecutive quarter we have surpassed the $2 million mark.

New registrations grew by 15% excluding the impact of the two customers that became registrars earlier this year. Renewals were particularly strong increasing by 24% with the renewal rate continuing to hold steady at a level well above the industry average. Total domains under management at the end of the quarter was up 16% from a year earlier to more than 11.7 million, the result of solid growth in transactions as well as the 400,000 domain names that were added with the acquisition of EPAG which was completed in July.

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