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Tucows’ domains business stagnates again in Q2
Tucows’ domain name business has experienced its third consecutive quarter of stagnating growth.
The company yesterday reported third-quarter total domains revenue of $61 million, compared to $62.3 million a year ago and $61.5 million in the second quarter.
Dave Woroch, CEO of Tucows Domains, described this 2% annual decline as “consistency” on a prerecorded address to analysts.
He pointed to Verisign’s recent comments about a decrease in .com registration volumes as evidence of an industry-wide post-pandemic slowdown, but was somewhat bullish on some new gTLDs.
“At the other end of the industry, we do see more robust growth in many of the new gTLDs that are of higher quality and that have little to no speculation or cyber crime opportunity,” he said.
The domains industry is “generally not showing a lot of growth”, he said, adding that “outsized growth would need to come from new areas”, which could include so-called “web3” efforts.
Woroch noted the recent funding of blockchain alt-root project Unstoppable Domains, but said Tucows is not a fan. Unstoppable has, like similar efforts dating back over 20 years, some “fatal flaws” and “a chicken and egg problem” of adoption, he said.
Domains under management at Tucows decreased to 24.8 million from 25 million sequentially and 25.6 million a year ago.
Tucows’ retail domains revenue was down to $8.5 million from $8.9 million a year ago, while the wholesale business, including value-added services, was down to $52.3 million from $53.4 million.
Including non-domains businesses, Tucows’ Q2 revenue was up 11% to $83.1 million and the net loss was $3.1 million compared with net income of $1.8 million a year ago.
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