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Tucows' CEO Discusses Q3 2011- Earnings Call Transcript

I will take this opportunity to note that the acquisition of EPAG has progressed very well. As we discussed on our last call, EPAG is one of the leaders in comprehensive top level domain or TLD coverage offering more than 200 TLDs. Integration is going well with the first traunch of more than 100 of these TLDs to be available to our resellers at year end. We plan to roll out the remaining TLDs to our channel in two phases in the first half of next year.

EPAG also bolsters our presence in Germany, Australia and Switzerland, three countries in which we have historically not been a strong as the rest of Europe. With EPAG we added more than 500 resellers expanding our customer base to more than 12,000 active resellers globally. The expansion of our TLD offerings of course extends beyond OpenSRS to our retail business Hover which I’ll discuss in a moment.

Our strong competitive position again, drove a number of key customer wins during the third quarter. Most notably we added two large hosting providers in southeast Asia, both of which were previously with one of our competitors. We’ve also made strong inroads into the Australia market over the past 12 months following our launch of .au the Australian top level domain.

Our OpenSRS email service showed continued momentum in Q3. Revenue was up 10% from the same quarter last year with a number of mailboxes under management increasing on both a year-over-year and sequential basis. Alongside growth in existing services we launched a number of new services to our reseller network in Q2. OpenSRS Offers, our newest service allows resellers to generate promotional control through the control panel or API they choose that they can then pass on to their customers.

A key element to the OpenSRS value proposition is that it enables our customers to be more competitive and Offers further strengthened that by allowing our customers who are too small to do direct deals themselves to stand on equal footing with larger competitors. The initial offering is for Google Adwords’ credits and we will add new promotions from different companies on a regular basis. I will note that this service is unique within our space, further strengthening our competitive position.

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