Boring tech can be beautiful
You see, Tucows isn’t just another no-growth domain name registrar that’s poised to face margin pressures amid rising competition in a severely saturated market. While the domain services business, which accounts for 72% of revenues as of the end of 2018, isn’t nearly as lucrative as it used to be, it’s still a cash cow that can act as a solid foundation, as Tucows looks to reinvest in its more encouraging network access service business, which accounts for around 28% of revenues.
Domain names are a dull business, and they’re not going to experience a sudden surge in demand like during the tech boom, so naturally, one would think Tucows, the second-largest domain name registrar in the world, is a dud that’s to be ditched.
If you look at the domain registrar business not as a source of growth, but as a stable cash flow stream (a digital REIT if you will), the Tucows story becomes that much more interesting.
read more (Motley Fool)
You see, Tucows isn’t just another no-growth domain name registrar that’s poised to face margin pressures amid rising competition in a severely saturated market. While the domain services business, which accounts for 72% of revenues as of the end of 2018, isn’t nearly as lucrative as it used to be, it’s still a cash cow that can act as a solid foundation, as Tucows looks to reinvest in its more encouraging network access service business, which accounts for around 28% of revenues.
Domain names are a dull business, and they’re not going to experience a sudden surge in demand like during the tech boom, so naturally, one would think Tucows, the second-largest domain name registrar in the world, is a dud that’s to be ditched.
If you look at the domain registrar business not as a source of growth, but as a stable cash flow stream (a digital REIT if you will), the Tucows story becomes that much more interesting.
read more (Motley Fool)
