Tucows 2013 Annual Report Download - page 41

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RESULTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2013 AS COMPARED TO THE YEAR
ENDED DECEMBER 31, 2012
NET REVENUES
The following table presents our net revenues, by revenue source:
Year ended December 31,
2013
2012
Wholesale
Domain Services
$
87,294,173
87,434,450
Value Added Services
10,271,219
10,586,460
Total Wholesale
97,565,392
98,020,910
Retail
24,890,272
10,740,844
Portfolio
7,479,240
5,965,147
$
129,934,904
$
114,726,901
Increase over prior period
$
15,208,003
Increase - percentage
13
%
The following table presents our revenues, by revenue source, as a percentage of total revenues:
Year ended December 31,
2013
2012
Wholesale
Domain Services
67
%
76
%
Value Added Services
8
%
10
%
Total Wholesale
75
%
86
%
Retail
19
%
9
%
Portfolio
6
%
5
%
100
%
100
%
Total net revenues for Fiscal 2013 increased by $15.2 million, or 13%, to $129.9 million from $114.7 million for the
fiscal year ended December 31, 2012 (“Fiscal 2012”). Deferred revenue from domain name registrations and other Internet
services at December 31, 2013 decreased to $70.0 million from $71.0 million at December 31, 2012. Deferred revenue has
been impacted by the transfer of a significant number of names by certain of our customers from our registrar accreditation to
their own registrar accreditation, no longer registering new domain names on our platform.
No customer accounted for more than 10% of revenue during Fiscal 2013 and, at December 31, 2013, no customer
accounted more than 10% of accounts receivable. Significant management judgment is required at the time of recording of
revenue to assess whether the collection of the resulting receivables is reasonably assured. On an ongoing basis, we assess
the ability of our customers to make required payments. Based on this assessment, we expect the carrying amount of our
outstanding receivables, net of allowance for doubtful accounts, to be fully collected.
Wholesale
During Fiscal 2013, domain services revenue decreased by $0.1 million to $87.3 million when compared to
Fiscal 2012, primarily the result of two customers who have acquired their own registrar accreditation no longer registering
new domain names on our platform.
Value-Added Services decreased by $0.3 million to $10.3 million when compared to Fiscal 2012. This decrease was
largely due to the $0.6 million decrease in revenue from sale of domain names and advertising from the OpenSRS Domain
Expiry Stream which was primarily attributable to slower sales to certain third-party partners. This decrease was partially
offset by increased digital certificate and email sales.
42