Wall Street punishes company after disappointing Q1 results.
Domain name, wireless and internet provider Tucows had a rough day.
Shares in the company plunged $17.30, or 20%, to $68.75. About $180 million of value was wiped out in one day.
The drop came after the company reported disappointing earnings after the market closed yesterday. Revenue slid in the company’s domain business and it faced headwinds with suppliers for its wireless service.
Long-term shareholders probably aren’t sweating too much. Today’s closing price is still above where shares traded a year ago.
Tucows is the second largest domain name registrar. It owns Tucows/OpenSRS, Enom, Ascio and other registrars.
Jack says
It is just the beginning of the fall for Tucows.
They set a silly new pricing structure where you pay $13.50 wholesale for .COM when you get $8.50 retail at other registrars !
Domainer says
Jack – Bingo !!!
I started transferring all of my domains out of enom last month. I will do it over a period of 3 months since it is so time consuming
They started charging me the highest price even though I have thousands of domains in enom. I have complained but they don’t care.
Tony Hall says
I didn’t know they still existed
sneader says
Exact same thought crossed my mind when I read this. Been an eNom customer for over 18 years and have thousands of domains there, but they don’t care… jacked up our pricing to ridiculous, non-competitive levels. Maybe they did it to boost revenue to make stock holders happy, but long term, I forsee big losses as customers find better alternatives
Mike says
Same, takes forever, and I don’t want domains where it takes 5 days to transfer out, almost emptied out my account 200 more to go
Sean says
I moved all my domains from Enom to NameCheap over the past four months. It seems we all had the same experience and reacted the same without any prior collaboration!
Jack says
It seems all old wholesale customers experienced the same and moved thousands of domains out of eNom / Tucows.
How to dig your own grave ?
The genius who came with this new pricing structure should be fired.
It will make Tucows go bankrupt, the sooner the better !
Andrew Allemann says
Their gross profit from the domains segment was up, so thus far they have lost fewer domains than the added cash they are bringing in.
Domainer says
Those numbers reflect what happened in the past quarter and year.
Is it better to make a little profit on some incoming revenue?
Or, no profit on no revenue coming in, in the future?
They are hoping the new gross profit will make up for the small profit from domainers that are leaving. .
However, if domainers leave (in mass) their revenue will plateau or decline.
Pricing strategy is very tricky. I have seen where it worked. And, more often where it did not.
Basic business question, what added value to the customer has tucows added since acquiring enom?
It appears tucows is using the business strategy called – Harvest Strategy .
https ://www. investopedia. com/terms/h/harvest-strategy.asp
joesaba2014 says
I believe that the worst thing for a domain registrar known worldwide today, is to buy other companies to register domains.
Tucows, can do just as Godaddy use the same brand name to expand to other markets.
Happy Day. Jose.
CryptoCurrency Tracker says
tucows is a big disappointment in domain industry…it takes 5 days to transfer a domain.