Company plans new revenue sources for its domains business.
Tucows (NASDAQ: TCX), which operates OpenSRS, Enom, Hover, and a couple of other domain registrars, reported slight growth in its domain name business last quarter.
The company grossed $61.1 million from its domain business in Q3, up from $60.3 million in the same quarter a year ago. The company also reversed a trend of quarter-over-quarter declines in gross margin.
Tucows said the business continues to be hurt by flagging revenue from expired domain sales. It will be interesting to see what impact GoDaddy raising its minimum bid to $25 has on these results; Tucows sends most of its expired domains to GoDaddy Auctions.
In pre-recorded prepared remarks, DaveWoroch, CEO of Tucows Domains, said the company is working on a new product for its resellers to help hosts transition to cloud-based services. It is also developing a billing and provisioning system.
Tucows’ overall Q3 revenue was up 11% year over year.
Shares in Tucows are up 15% in trading this morning.