Investor Presentation elliot noss | president + ceo May 2019 This - - PowerPoint PPT Presentation

elliot noss | president + ceo

May 2019

Investor Presentation

This presentation may contain forward-looking statements, relating to the Company’s operations or to the environment in which it operates, which are based

• n Tucows Inc.’s operations, estimates, forecasts and projections. These

statements are not guarantees of future performance and are subject to important risks, uncertainties and assumptions concerning future conditions that may ultimately prove to be inaccurate or differ materially from actual future events or

• results. A number of important factors could cause actual outcomes and results to

differ materially from those expressed in these forward-looking statements. Consequently, investors should not place undue reliance on these forward-looking statements, which are based on Tucows Inc.’s current expectations, estimates, projections, beliefs and assumptions. These forward-looking statements speak

• nly as of the date of this presentation and are based upon the information

available to Tucows Inc. at this time. Tucows Inc. disclaims any intention or

• bligation to update or revise any forward-looking statements, whether as a result
• f new information, future events or otherwise.

2

Consistent reliable Cash flow generation + Growth

3

19.3%

annual ROI since going public

17

consecutive years

• f positive cash flow

from operations

17

consecutive years

• f revenue growth

4

18

years as a public company

Our business

5

Strong cash flowing businesses: Next phase

• f outsized growth:

6

: Domain services

7

The Backbone of the Internet

Second largest domain name registrar in the world

>1.5 million

Domain transactions every month Renewal rates well above industry average

8

~25 million

Domains under management

Wholesale Channel

reseller customers

>150

World’s largest wholesale domain name registrar Leading wholesale platforms for selling and integrating domain names Footprint in majority of the developing world

>38,000

countries

Based on simple premise:

“What people are forced to put up with from mobile service providers just doesn’t make sense. It’s too complicated, too opaque, too adversarial, too expensive and frankly too inhuman. We’re changing that.”

10

Net promoter scores

So far, well received:

Consumer Reports: highest

• verall satisfaction rating in

the history of the survey

11

Costco 78 Apple 76 Nordstrom 75 Ting Mobile 73 Amazon 69 Southwest Airlines 66 Mobile phone providers 16

~163,000

296,300

~$23

61% <$100 2.95%

Key Metrics

12

accounts1 subscribers1 average subscriber’s bill gross margin churn2 customer acquisition costs

Outsized Growth Opportunity

Based on company filings

There are hundreds of millions

• f wireless customers who

want and deserve a better mobile service experience

13

Leveraging the Ting brand and

• perational base

for the fixed Internet access market

“There is every reason to believe that innovation will continue, that bandwidth needs will keep on growing – and that only fiber-to-the-home networks with gigabit/second speed with fiber’s superior reliability and plentiful upstream capacity, will be able to keep delivering the necessary bandwidth.”

• Broadband Communities, 2013

14

Providing gigabit speeds

• ver fiber-to-the-premise networks

15

50x

Faster than avg US download speed

1000x

Faster than avg US upload speed

Ting Internet Build Scorecard

16

$2,500 - $3,0001 $1,000

Expected take rate: Year 1 20% Year 5 50% Monthly price: home $89 business $139 + startup2

17

Cost to build & connect a home Annual gross margin

Financial review

1. Adjusted EBITDA excludes depreciation, amortization of intangible assets, income tax provision, interest expense, interest income, stock-based compensation, asset impairment, gains and losses from unrealized foreign currency transactions and infrequently occurring items, including acquisition and transition costs. (Prior to 2013 Adjusted EBITDA included net deferred revenue and did not included foreign currency transactions or acquisition and transition costs) 2. Adjusted EBITDA for 2017 reflects the impact of the purchase price accounting adjustment related to the fair value write down of deferred revenue from the Enom acquisition which lowered Adjusted EBITDA by $7.8 million.

Market Data

Listings: NASDAQ:TCX TSX: TC Price (NASDAQ): US$87.34 Shares out: ~10.7m Market cap: ~US$934m Cash1: US$11.0m Debt1: US$92.8m

Key Financial Metrics

Consistency and reliability through high volume, low-cost subscription services Dominant position in the global wholesale domain name market Potential for continued outsized growth opportunity in Ting mobile Opportunity for next phase of outsized long-term growth as a first mover in the fiber-to-the home industry Committed to returning capital to shareholders portfolio of domain names with no ascribed value

Investment Summary

elliot noss | enoss@tucows.com tucows.com/investors

thank you