Deal with Donuts bolsters Q3 earnings.
Shares of Tucows (NYSE AMEX:TCX, TSX:TC) shot up 15% to $3.00 in after hours trading after the company announced third quarter earnings.
The company got a big cash boost from its deal with Donuts to withdraw its applications for the .marketing and .media top level domain name applications.
Although the exact dollar figure of the deal was not disclosed in the earnings release, there’s a huge jump in the company’s “portfolio” line item. Last quarter the company pulled in $4.167 million in portfolio revenue, which includes the revenue from the Donuts deal. In Q2 this line item was just $1.079 million, and in Q1 it was $1.134 million.
It’s entirely possible that Tucows received about $3 million to settle the contention sets, as this would be in line with the results from private auctions.