Welcome to Tucows’ Second Quarter 2022 Management Commentary, we have pre-recorded prepared remarks regarding the quarter and outlook for the Company. A Tucows-generated transcript of these remarks, with relevant links, is also available on the Company’s website. In lieu of a live question-and-answer period following these remarks, shareholders, analysts and prospective investors are invited to submit questions to Tucows management via email at ir@tucows.com until August 16. Management will address your questions directly or in a recorded audio response and transcript that will be posted to the Tucows website on August 31 at approximately 4 p.m. Eastern time. We would also like to advise that the updated Tucows Quarterly KPI Summary, which provides key metrics for all of our businesses for the last six quarters, as well as for full years 2020 and 2021, and now also includes summaries of Fiber Internet Services’ financial results and historical financial results, is available in the Investors section of the website, along with the updated Ting Build Scorecard and Investor Presentation. Now for management’s prepared remarks: On Tuesday, August 9, Tucows issued a news release reporting its financial results for the second quarter ended June 30, 2022. That news release, and the Company’s financial statements, are available on the Company’s website at tucows.com under the Investors section. Also note that the Company issued an additional press release this morning with material information on its Ting Internet business, which will be discussed in the following remarks. The release is available in the News section of the Tucows website. Please note that the following discussion may include forward-looking statements, which, as such, are subject to risks and uncertainties that could cause actual results to differ materially. These risk factors are described in detail in the Company's documents filed with the SEC, specifically the most recent reports on the Forms 10-K and 10-Q. The Company urges you to read its security filings for a full description of the risk factors applicable for its business. Finally, as discussed on our last call, starting in Q1 of this year, we started reporting as separate businesses Ting, Wavelo and Tucows Domains in addition to Tucows Corporate. Tucows Domains is unchanged. Ting is also largely unchanged, save for our historical ISP billing solutions, which have been moved under Wavelo. Wavelo no longer includes the tail from the retail mobile customer base sold to DISH or the legacy retail mobile business. Both of these are now included in the Tucows Corporate category, as well as centrally managed administrative expenses. For those that have not done so, I encourage you to watch the video we posted in February for additional detail and perspective on the rationale for this change. I would now like to turn the call over to Tucows President and Chief Executive Officer Elliot Noss. Go ahead, Elliot.

Thanks, Monica.Q2 2022 was both a typical quarter for each of our three businesses as they continue to grow, and was a uniquely important quarter as we took on our first external investor and structured the businesses to accommodate their long-term capital needs. A reminder that as part of changing our reporting by business segments, you will now hear directly from the heads of each business in these remarks, as well as from our CFO, Dave Singh, who will cover our financial results in detail. The first speaker is Dave Woroch, Chief Executive Officer, Tucows Domains. Go ahead, Dave.

Thanks, Elliot. For the most recent quarter, I am pleased to report that Domain Services delivered another quarter of solid performance that continues to reflect the consistency of our business. Revenue for Domain Services for the second quarter was down 2% from the same period of last year, and gross margin, absent a one-time accounting adjustment, was down 1%. Domain Services’ adjusted EBITDA was unchanged from a year ago. These results reflect the operational efficiency of the business; the reliability of cash generation; our continued strength in the Wholesale channel; and the high quality of the domains that we manage. Similar to my comments in the first quarter, while the overall financial performance of the Domains business was very much in line with Q2 of last year, total transactions for the business have continued at the lower, pre-pandemic levels that we have discussed for the past few quarters. And as with last quarter, we are seeing signs that this continues to be an industry trend. At the one end of the industry, the .com and .net registry recently cited a 14% year-over-year decrease in new registrations for their Q2. This follows a 12% year-over-year decrease in their Q1 and, more importantly, a sequential decline in total domains under management from Q1 to Q2. Other registries, including some legacy gTLDs and ccTLDs in mature geographies, are showing signs of limited growth in their domains under management. At the other end of the industry, we do see more robust growth in many of the new gTLDs that are of higher quality and that have little to no speculation or cyber crime opportunity. Turning back to our business, in the Wholesale channel, revenue for Q2 was down 1% year-over-year, with gross margin also down 1%. Within the Wholesale channel, Domain Services’ revenue was…

Thanks, Dave, and hello TCX investors. First, the financial report. The majority of Wavelo’s revenues continue to come from the work with DISH and their customers. Q2 Platform Revenue was $9 million, up 31% from $6.9 million in Q1 and up 228% year-over-year. Professional services accounted for $1 million as we did another round of work for DISH to support their 5G rollout. As we conclude the bespoke work for DISH and move more customers onto the platform, this will shift our revenue towards a higher margin and more predictable subscription-based model. For decades, telecom providers have struggled to move away from professional services-based revenue models; we are laser focused on Wavelo operating as a subscription-based software company that produces SaaS economics. As discussed last quarter, this revenue is sticky, predictable and, most importantly, aligns our success with our customers’ success. The migration of DISH’s Boost customers continued to take a backseat to other important work; however, we are now focused on this effort and expect to ramp up the migration cadence significantly over the rest of the year. As a reminder, the two most challenging parts of any telecom software deployment are network integrations and customer migrations. We've completed many of these over the years in many different service categories, leading to the happiest telecom customers in the world, and feel confident that we can help telecoms like DISH accelerate their moves away from legacy systems. We’ve also seen a bump in new, organic Boost subscribers DISH is putting directly on the platform. With respect to the number of subscribers expected to migrate to the Wavelo platform, in addition to the new customers DISH expects to add, as always, we recommend reviewing DISH’s disclosures. We continue to believe strongly in the value of the world’s first native 5G network…

Thanks, Justin. Moving on to Ting Internet. In Q2, Ting put more fiber into the ground than ever before and continued to load customers onto the network at an impressive rate, staying on target with our aggressive growth plans. In Q2, we added 2,500 net subscribers, taking us to 30,300 in total. We grew subscribers roughly 10% quarter-over-quarter, and 50% year-over-year. Our total for both Ting-owned and Ting Partner serviceable address additions was 5,600, taking us to nearly 104,000 total serviceable addresses. Our fiber CapEx increased by 77% from last quarter, to $24.9 million. This increase reflects not only the conclusion of winter weather impact, but also our escalating build cadence. The turnover of serviceable addresses in the quarter isn’t directly attributable to that level of investment, however, the fiber footage constructed in Q2 increased 70% from Q1. Much of that footage was built as middle mile transport that connected our networks in neighborhoods to central offices or data centers. That work will enable increased serviceable addresses in the next few quarters. We also passed more multi tenant units with fiber this quarter that our sales teams are working to gain entry and convert to serviceable addresses. Starting last quarter, in Page 2 of the KPI Summary, we provided new disclosure on mature versus growth markets. We may have tried to pack too much into the metric. We will provide the comparable numbers, but going forward will change the disclosure. Like many things, both investors and us will likely learn more from the misstep than if we had nailed it the first time. We want to present a view that lets investors see both how more mature markets grow as they load customers over time and see the powerful net margins these businesses produce. The first part is relatively easy.…

Thanks, Elliot. Before I begin, just a note to remind investors that starting in Q1 of this year, the results for prior periods were recast to reflect the changes we made last quarter to the reporting segments to make the periods directly comparable. Total 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 driven by strong growth in both Ting Fiber Internet Services and Platform Services up 84% and 228%, respectively, which were partially offset by the expected decline in revenue from transition services with DISH. Revenue from Tucows Domains Services was down slightly to $61.1 million from $62.3 million in Q2 last year. Cost of revenues before network costs for Q2 was essentially unchanged at $49.3 million as compared to $49.1 million for the same period of last year. As a percentage of revenue, cost of revenues before network costs decreased to 59% from 65%. This was primarily due to the growing proportion of high margin Platform Services revenues in the mix. Gross profit before network costs for the second quarter increased 30% year-over-year to $33.8 million, from $26 million, with the increase due mainly to the higher gross profit contributions of both Platform Services and Fiber Internet Services. As a percentage of revenue, gross margin before network costs increased to 41% from 35%. Breaking down gross profit by business, Domain Services’ gross profit for the second quarter of 2022 increased 3% from Q2 last year to $20 million from $19.5 million. As a percentage of revenue, gross margin for Domain Services was 33% compared with 31% in Q2 of last year. Platform Services gross profit increased 202% to $7.9 million from $2.6 million for Q2 2021, with the entirety of the increase being…

Thanks, Dave. We’ll start by talking about our recent financing. This morning we announced a $200 million preferred equity financing with Generate Capital. The preferred equity carries a coupon of 15%, which could go as low as 13% and as high as 17%, based upon partnering on fiber markets we jointly pursue and develop with Generate. Generate has agreed to invest up to an additional $400 million in new networks, similar to the existing partnerships we have in Westminster, Fullerton, Solana Beach and Encinitas. The preferred equity has a term of six years. It only converts to common equity in the event of default, and the conversion price is $600 million. I will now share the features that made this particular deal, and this particular partner, stand out to us. First, we did not sell common equity and the preferred shares do not carry a conversion sweetener. Fiber businesses are essentially valued based upon the number of homes passed and the number of customers loaded onto the network. Given our rate of growth in CapEx and customers we felt we would do much better by delaying a sale of common equity. Next, we value Generate as a partner due to their project management and development expertise via similar investments. Construction best practices, resource management, supply chain issues, and simply exposure to more data points in more footprints will make each group better at their craft. We have also established a strong city engagement team, which we can now utilize both for networks we intend to build with our own capital, and those where we choose to partner with Generate. We do believe we will comfortably meet the threshold necessary to lower the rate of the preferred equity to 13%. It is fantastic to add that construction expertise in the short-term,…

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