Welcome to Tucows Third Quarter 2023 Management Commentary. We have prerecorded 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 e-mail at ir@tucows.com until Thursday, November 9. Management will either address your questions directly or provide a recorded audio response and transcript that will be posted to the Tucows website on Tuesday, November 21, at approximately 4:00 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 seven quarters, as well as for full year 2021, 2022 and 2023 year-to-date and also includes 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 Thursday, November 2, Tucows issued a news release reporting its financial results for the third quarter ended September 30, 2023. That news release and the company's financial statements are available on the company's website at tucows.com under the Investors section. Please note that the following discussion may include forward-looking statements, which 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 to its business. I would now like to turn the call over to Tucows President and Chief Executive Officer, Elliot Noss. Go ahead, Elliot.

Thanks, Monica. Our third quarter results show continued strong growth of Wavelo and Ting and a steady state for Tucows domains. We recently signed a new credit agreement for the Tucows syndicated debt that gave us improved terms and further stability. We have also repaid a net of $6.5 million on the balance on the debt this quarter using the cash flow from Wavelo and Tucows domains. As we head into Q4, we are on track for our 2023 guidance with EBITDA on the TCX side of $55 million to $60 million and with an EBITDA loss on the Ting side of $42 million to $45 million. This is all happening in a unique economic context where markets both public and private, are continuing to reshape after 15 years of cheap capital. Now we'll hear from the heads of each business 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. We continue to return to a normalized business trajectory in 2023. Q3 transactions are up 3%, and domains under management are up slightly year-over-year. We continue to focus on managing the business for margin. Concurrently, we continue to develop new services to complement our core business and leverage our distribution channels. I'll take a moment now to talk about the business in more detail. Revenue for Domain Services for the third quarter was $61.1 million, up 1% from $60.3 million for the same quarter last year, and our gross margin was $18.4 million, also up 1% year-over-year. When you look at a quarter-over-quarter basis, our gross margin increased $0.4 million or 2.5% in Q3. This increase is an important indicator of the health of the business. In previous quarters, we reported our gross margin was declining. It is now flat to increasing due to deferred revenue and price increases working their way through our accounting. The same items are positively impacting Domain Services adjusted EBITDA, which was $10.9 million in the third quarter, up 5% from Q3 of last year. Now let's look across the segments of our business. In our wholesale channel, revenue for Q3 was unchanged compared to Q3 of last year, and gross margin is down 4% year-over-year. Domain Services gross margin remained flat compared to the same period last year, while value-added services gross margin was down 13%. This is due to weaker sales in the Domains aftermarket, which continues to be an issue industry-wide. In our retail channel, revenue was up 9% and gross margin was up 17% year-over-year. A key driver of the outsized retail margin was the sale of a few high-value Domain names, which will happen over the course of the year. Net of these sales, gross margin was up…

Thanks, Dave. In Q3, we delivered another strong quarter in revenue and gross margin and our strongest quarter of adjusted EBITDA since Wavelo's launch. Wavelo's revenue was $11.1 million in Q3, an increase of 174% from $4 million in Q3 of 2022 and an increase of 3% from $10.8 million last quarter. Wavelo's gross margin increased by 176% to $10.5 million this quarter from $3.8 million for Q3 of 2022 and 4% from $10.1 million last quarter. As we previously noted, we experienced outsized revenue recognition annually in Q2 related to bundled professional services included as part of the platform services provided to DISH as well as the contra revenue impact from the unwinding contract asset from the DISH agreement. Adjusting from these lumpy and noncash impacts, revenue and gross margin actually grew $0.9 million and $1.1 million, respectively, quarter-over-quarter. Adjusted EBITDA for Wavelo was $4.2 million, way up from a loss of $0.9 million in Q3 of 2022 and an increase of nearly 24% from $3.4 million in Q2. This marks the first quarter with a fully loaded boost base on the Wavelo platform. We are seven quarters into operating Wavelo as a standalone business, and I'm pleased with our management team's discipline and ability to manage costs while onboarding millions of subscribers. When we launched Wavelo Inside of TCX, a public company known for conservative operations and cash generation, there was concern expressed that not taking a traditional VC funded route would hold Wavelo back. Now this choice looks prescient as early stage VC has dried up and disciplined operations are what everyone aspires to. On DISH, we were encouraged by their progress in retail wireless and on their 5G network. They now have the most competitive unlimited and iPhone offers in the market with Boost Infinite as…

Thanks, Justin. Total serviceable addresses for Ting-owned infrastructure came in at 114,500, up 28% year-over-year and Partner addresses at 25,400, up almost 36% year-over-year, taking us to 139,900 total serviceable addresses. I'm particularly pleased to see addresses in Colorado Springs starting to become available. Our fiber CapEx was down from previous quarters at $17.3 million for Q3. This is primarily because we are transitioning to a new micro-trenching vendor in Alexandria, leading to a small gap in construction while we onboard the new vendor. We resumed construction there in Q4. Q3 was our best quarter for new subscribers over the last seven quarters. We added 2,600 net subscribers in Q3, taking us over 41,000 in total. Our total subscribers have grown over 26% year-over-year, and we expect that growth to continue as our construction steadily progresses, and we continue to have a strong preorder pipeline for installations. Our gross margin grew by 20% year-over-year to $8 million, and revenue grew 17% year-over-year to $12.9 million. We've shared in the past that capital was flowing into the landlord side of partner markets. There has not been a similar growth in tenants. We are the most experienced tenant in the industry, having partnered with cities, utilities and multiple commercial providers. As the Partner segment matures, we are seeing more and more partnership opportunities, but are taking a more pragmatic approach to sharing risks and expectations of partner build performance. As you know, what's attractive about partnerships, given the right terms is that they allow us to leverage our greatest strength, operating the best ISP in the country without shouldering the capital requirements and complexities of building in those markets. Investors may have seen the announcement yesterday of our partnerships with Blue Suede Networks and Vibranium Network in Memphis, Tennessee. This will be…

Thanks, Elliot. Total revenue for the third quarter of 2023 increased 11.4% to $87 million compared to $70.1 million for the third quarter of 2022. When looking across the different businesses, Ting had revenue gains of 17.4% year-over-year, increasing to $12.9 million in Q3 2023 from $10.9 million in Q3 2022. Wavelo's revenue increased 174% to $11.1 million in Q3 2023 from $4 million in Q3 2022. And the revenue for Tucows Domains for Q3 was up 1.3%, increasing to $61.1 million from $60.3 million in Q3 2022. The gains from three businesses were offset by a decline in corporate segment revenues of 30% year-over-year from $2.8 million in Q3 2022 to $2 million in Q3 2023. The decline was primarily driven by lower revenues from legacy mobile subscribers retained in the sale of Ting Mobile subscribers to DISH as well as higher intercompany eliminations. Gross profit before network costs for the third quarter increased 22% year-over-year to $36.3 million from $29.6 million in Q3 2022. As a percentage of revenue, gross profit before network costs this quarter was 42% compared to 38% for Q3 2022. Breaking down gross profit by business Tucows Domains' gross profit for the third quarter of 2023 increased 1.1% from Q3 of last year to $18.4 million from $18.2 million. As a percentage of revenue, gross margin for Tucows Domains remained unchanged year-over-year at 30% for Q3 2023. Wavelo's gross profit increased by a robust 176% to $10.5 million this quarter from $3.8 million for Q3 2022 as we will finish the quarter with fully loaded Boost subscribers. As a percentage of revenue, gross margin for Wavelo was 95% this quarter, which is up slightly from 94% in Q3 of last year. Ting gross profit for Q3 increased 20% year-over-year to $8 million from $6.7…

Thanks, Dave. This quarter again held positive trends for all three of our businesses. In Domains, we see continued progress towards both platform operating efficiencies and perhaps the most exciting new service launches since Ting. In Wavelo, we have successfully migrated the bulk of the Ting ISP customers, integrated most of the third-party applications and made material progress on the new customer pipeline, all while operating cash flow positive. In Ting, we are seeing the flexibility of our ISP operations manifest in more and better partner opportunities. Partner opportunities tended to have negative operating cash flow for the first couple of years as we load the network and need to spend dollars on marketing and installs. We are now more able to structure these deals so that they are neutral or even cash flow positive very quickly. The macroeconomic environment has not improved over the last 90 days, but is instead been reinforced. We continue to see further evidence that huge asset classes, private equity, venture capital and commercial real estate, all need to be repriced. We are starting to see the first vestiges now as seed venture capital has dried up and private equity is starting to triage. This repricing will take years. The macro economy also weighs on the stock market for obvious reasons. This has exacerbated the gap between public and private valuations. It was large and it's now even greater. And I expect this gap to continue for years as those overvalued asset classes reprice. This means that the traditional off-ramp for venture capital and private equity investments is much less available than it has been for the last 20 years. TCX has a tight cap table and thin public float, making the disconnect between the value of our three businesses and the TCX stock price,…