Welcome to Tucows Fourth 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. Please submit questions via email to ir@tucows. com until Thursday, February 29th. 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, March 12th, 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 eight quarters, as well as for full years 2021, 2022 and 2023, 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, February 22, Tucows issued a news release reporting its financial results for the fourth quarter ended December 31, 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. We finished 2023 with positive momentum in all of our businesses. Tucows Adjusted EBITDA for 2023 outside of Ting was $59.6 million and with Ting was $15.5 million, at the higher end of our annual guidance range. This was driven by robust growth from Wavelo and consistent performance of Tucows Domains, and offset by our continued investment in Ting. Tucows consolidated revenue grew 10% year-over-year, and a strong finish to the year helped drive Tucows operating cash flow to $9 million in the fourth quarter, up from $2.9 million in Q4 of last year. We also repaid a further $11.5 million on the balance of the non-Ting syndicated loan this quarter, which takes us to $28 million paid down in 2023. Now that we’ve continued deleveraging and are squarely focused on addressing the financing challenges of the Ting business, which spilled over to TCX we are more and more getting back to Tucows being a cash generating machine. Which is the right place to be in today’s macroeconomic environment. Again this year we’ve authorized a buyback program for up to $40 million in Tucows stock. We do this every year, whether or not we can foresee using it at the time we do the authorization. This is a formality. 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. As we close out fiscal 2023, I’m particularly pleased that Tucows Domains grew revenue and gross margin, on a quarter-over-quarter basis, through successive quarters of 2023. Our core business is healthy and we’re rolling out new products for our resellers. And importantly, Tucows Domains continues to generate cash for the Company that is being used to pay down the debt and build the runway for Tucows’ long-term growth. In Q4, we saw slight gains across all our top level metrics, including domains undermanagement and transactions. Revenue for Domain Services for the fourth quarter was $61.8 million, up 2.5% from $60.3 million for the same quarter last year. Gross margin was $18.9 million, also up 2.5% from the same quarter last year. And Domain Services’ Adjusted EBITDA,which was $10.8 million in the fourth quarter, was up 2% from Q4 of last year, as we continue to be attentive to managing expenses. The results were driven by an increase in the number of transactions in Q4, up 2%; and domains under management that were up slightly year-over-year. I would like to highlight that within our industry there is a range in the quality of new domains being registered, and our growth continues to be concentrated in higher quality and legitimate domain registrations. Looking at the results from the segments of our business; in our Wholesale channel, revenue for Q4 was up 2% compared to Q4 of last year, and gross margin was essentially unchanged year-over-year. Within the Wholesale channel, Domain Services’ gross margin was up 4% in Q4 compared to the same period last year, while Value-Added Services’ gross margin was down 8%. I'll note that the decline in the domains aftermarket that I covered in the last couple of quarters is no longer a factor for Value-Added Services. The…

Thanks, Dave. 2023 marks Wavelo’s second full year as an independent business. A year ago, and at Investor Day, I shared how pleased I was with the foundation laid to generate $25 million to $30 million in revenue. As we sit here today, Wavelo generated $38.7 million in revenue in 2023, averaging north of a 50% compound annual growth rate over the last two years, while other B2B SaaS companies’ growth rates nearly halved over the same period. Gross margin for the full year 2023 was $36 million, up from $21.4 million in 2022. Adjusted EBITDA was $10.6 million, outperforming our upgraded guidance of $4 million to $6 million, and up from $3.9 million last year. This full-year performance represents what this business can be when its customers reach a level of scale on the platform. That said, I want to be clear that we expect growth to come in much lower in 2024, as we invest in new customers and battle an increasingly competitive software market. This is in the context of a startup macro environment that is in the midst of a flight to quality. Remember, our slight step back in profitability is everyone else's cash burn. In the quarter, Wavelo’s revenues were $9.5 million, down 13.8% from Q3 and up 113% from Q4 2022. Gross margin was $9.2 million in Q4, down 12.3% from Q3 and up 142% year-over-year. Adjusted EBITDA for Q4 was $2.6 million, down 38% from Q3 and up 328% year-over-year. The quarter-over-quarter trend represents a couple of things: First, we recognize extra deferred revenue from DISH every year in Q3, which provides a bump across all metrics in the third quarter. And second, Dish’s shift in focus from prepaid to postpaid, as those subscriber bases haven't yet stabilized. In addition, the Adjusted EBITDA…

Thanks, Justin. Q4 was another very strong quarter of construction for Ting, resulting in 27% year-over-year growth of completed serviceable addresses, taking us to 121,300 serviceable addresses for Ting-owned infrastructure. Our partner markets are also ramping up with 54% growth in addresses year-over-year. This brings us to 150,700 total serviceable addresses across all Ting footprints. Ting subscribers grew 26% year-over-year in the fourth quarter, taking us to over 43,000 in total. Revenue for Q4 grew 21% year-over-year to $13.8 million, and gross margin grew 9.3% year-over-year to $7.9 million. Adjusted EBITDA came in negative $12.4 million. As I have previously stated, this number is too high. We have started to address it this quarter and will continue to, until we are in a more appropriate position. Our fiber CapEx has increased from Q3 of 2023, but at $18 million for Q4, is still lower than our spends earlier in the year. In Q3 that was mostly a reflection of our transition to a new microtrenching vendor in Alexandria. In Q4 and into 2024, you will see us a little more considered as the fiber market continues to evolve. Heading into 2024, the coax-to-fiber transition is coming into sharper relief. We are now well into this process. We have always talked about every fiber market as having the same three ingredients of capital, construction, and ISP operation. We have always identified the strategic element of those three for us, as the ISP. Any financial sponsor, be it private equity, infra fund, or family office, see capital as their strategic element. Our mid-market fiber colleagues all have existing financial sponsors; thus are much more focused on fully integrated operations. We see larger and larger pools of capital focus on the infrastructure side of the market and we do not see many others…

Thanks Elliot. Total revenue for the fourth quarter of 2023 increased 10.2% to $87 million compared to $78.9 million for the fourth quarter of 2022. When looking across the different businesses, Ting had revenue gains of 21% year-over-year, increasing to $13.8 million in Q4 2023 from $11.5 million in Q4 2022. Wavelo’s revenues increased 113% to $9.5 million in Q4 2023 from $4.5 million in Q4 2022. And the revenue for Tucows Domains for Q4 was up 2.6%, increasing to $61.8 million from $60.3 million in Q4 2022. There was a small offset to the revenue gains of the three businesses by a decline incorporate segment revenues of 34% year-over-year, from $2.7 million in Q4 2022 to $1.8million in Q4 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 fourth quarter increased 19.5% year-over-year to $35.5 million from $29.7 million in Q4 2022. As a percentage of revenue, gross profit before network costs increased this quarter to 41% compared to 38% for Q4 2022. Breaking down gross profit by business, Tucows Domains’ gross profit for the fourth quarter of 2023 increased 2.5% from Q4 of last year to $18.9 million from $18.4 million. As a percentage of revenue, gross margin for Tucows Domains remained unchanged year-over-year at 31% for Q4 2023. Wavelo’s gross profit increased by 142% to $9.2 million this quarter from $3.8 million for Q4 2022, as Wavelo finished its second quarter with fully loaded Boost subscribers. As a percentage of revenue, gross margin for Wavelo was 97% this quarter, which is up from 85% in Q4 of last year. The increased margin is a reflection of Wavelo’s increased efficiency from…

Thanks, Dave. Let me start with guidance for our businesses for 2024. For Tucows Domains, we’re giving Adjusted EBITDA guidance of $43 million. For Wavelo, we’re giving guidance of $8 million to $10 million. And for our Corporate segment, $2 million to $4 million for a total of $53 million to $57 million. Given the recent changes at Ting, we’re working through a more refined guidance estimate for that business, which we will share with you when we have it, but in no event later than next quarter's results and with an intention of reducing the EBITDA loss. As I start to look out over 2024, I see clear paths for all three businesses. For Tucows Domains: turn the new offerings into real contributors. For Wavelo: generate a pipeline of new customers. For Ting: clean up the balance sheet and load the network. With Ting, I find myself thinking about time and timing. Time in the sense of the pace of the coax- to-fiber transition in the U.S. Timing in the sense that when one engages in anythingdealing with the balance sheet or the cap table, when is often more important than what. And timing of the coax-to-fiber transition is one arc, while macroeconomic conditions areanother. Let’s call those micro and macro. Fiber and the general economy. We feel very good about where we are in the fiber arc. We, and the industry, are now comfortably into the execution phase of this cycle. We see a LOT of building activity across country. We believe the industry is 18 to 36 months away from most footprints that will be part of this cycle being commenced. There will still be three to five years of building after that, but, in our view, it is too late for new entrants and it will…