Tucows reports slight growth in domain name business

Company plans new revenue sources for its domains business.

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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.

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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.

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Tucows’ overall Q3 revenue was up 11% year over year.

Shares in Tucows are up 15% in trading this morning.

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