Tucows 2014 Annual Report Download - page 76
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No customer accounted for more than 10% of revenue during Fiscal 2014 and, at December 31, 2014, no
customer accounted for 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.
Domain Services
Wholesale
During Fiscal 2014, domain services revenue decreased by $0.7 million to $86.6 million and the number of
transactions from all new, renewed and transferred-in domain name registrations that we processed remained
relatively flat at 9.1 million when compared to Fiscal 2013. Domain services revenue and transaction volumes
continue to be impacted by the ongoing migration of a handful of large, low margin customers. These customers have
been moving their domain management and domain transaction processing to their own accreditations and in-house
systems. We anticipate that the number of new, renewed and transferred-in domain name registrations will continue to
be impacted by decisions large volume customers make with regard to acquiring their own accreditations and the
impact that the significant expansion of the number of New gTLDs implementation of ICANN’s New gTLD Program
will have on the market. While we anticipate that the number of new, renewed and transferred-in domain name
registrations will continue to incrementally increase in the long term, the volatility of these factors could affect the
growth of domain names that we manage. As of December 31, 2014, total domains that we manage under our own
accreditation decreased to 10.2 million when compared to 10.6 million at December 31, 2013. This decrease in
domains under management primarily resulted from the same factors impacting domain transactions mentioned
above. Also, as of December 31, 2014, total domains that we manage on behalf of other accredited registrars who use
our technical systems to process domain registrations with their own accreditation, decreased to 3.3 million when
compared to 3.6 million at the end of December 31, 2013, primarily the result of a single customer that transitioned
their domain management platform to an in-house system earlier this year.
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