A true Software Company
This blog is disappointed in the reduction of annual revenues as well as annual e.p.s.This is what determines the price of Tucows' shares.In 2019 Tucows reached a high of $120 per share.But investors realized that Tucows is not a real software company.It is only a domaine registry.It only takes a few guys like the one above to collate and manage the domaine names.Elliot Noss,the CEO, tells investors that TC earned $40 million in operating cash flow but then he says that he wants to put much of it into a mobile telephone company called Ting in southern USA.And he has already put $32 million into Ting.There is little mention of the earnings from Ting because earnings are minimal.This blog has called in the past and again for Tucows to look at acquiring a small internet software company to build for the future.Earnings may stand still at first but will gradually climb with an accretive acquisition.In short, the domaine registry will finance the acquisition to help build Tucows into a true software company.
Who will lead Tucows into the Future ?
It is clear to this blog that Tucows needs a new direction and new directors.First there is negative growth in revenues,earnings and e.p.s. While adjusted EBITDA grew only by 4% in 2019.Domaine names is a mature market;TC needs a new,growing market.But in order to do that there needs to be a new CEO and 3 or 4 new board members.In summary,Tucows needs "new blood ".Especially when the "old blood" is getting paid $500,000-$600,000 each.
