Welcome to Tucows Question and Answer Dialogue for Q3 2024. Elliot Noss, President and Chief Executive Officer, will be responding to your questions. For your convenience, this audio file is also available as a transcript in the investor section of our website, along with our Q3 2024 financial results and updated reports. I would also like to remind investors that if you would like to receive our quarterly results and Q&A via email, please make the request to ir@tucows.com. Please note that the following discussion may include forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially. These risk factors are described in detail in the company's documents filed with the SEC, specifically the most recent reports on the Forms 10-Q and 10-K. The company urges you to read its SEC filings for a full description of the risk factors applicable to its business. Today's commentary includes responses to questions submitted to us following the prerecorded management remarks regarding the quarter and outlook for the company. We are grouping similar questions into categories that we feel are addressing common queries. If your questions reach a certain threshold or volume, we may ask you to schedule a call instead to ensure we can address the full body of your questions. And if you feel that the recorded questions and/or any direct email you may receive do not address the full scope of your questions, please let us know. Go ahead, Elliot. Thank you, Monica, and welcome to our Q&A for our Q3 2024 financial results. Not surprisingly, most of our questions were around the recent developments at Ting discussed in this quarter's remarks, and shifting from building more fiber homes to increasing penetration in our existing footprints gives us the opportunity to review and summarize the last 10 years with a view towards what that will mean for the future. As a reminder, we want to look at everything through the lens of the value of a fiber home, which is a function of the penetration rate, ARPU, net margin, and churn, and the cost of reaching that value equals the costs of a serviceable address, install costs, and other upfront costs like customer acquisition and onboarding. With the end of new home construction, we can take account of how we have done in building the network we have. In our Capital Markets Day in May of 2023, we shared an expected cost per pass of roughly $1,650 at the completion of the then current plan. At the end of 2024, we will have roughly 180,000 passed addresses and roughly 137,000 serviceable addresses, with the major difference between the two being right of entry. In our 10 years of operation, we spent roughly $385 million in CapEx. Of that, roughly $320 million was build CapEx, with the rest being made up of installation, fleet, and other. Accordingly, we ended with a cost per passed address of a little over $1,700 and a cost per serviceable address of roughly $2,235. I note that if we had been able to complete the builds that we are leaving incomplete, we would have come slightly under the $1,650 number. I further note that as we receive additional rights of entry, that $2,235 number will come down. We have a higher cost per pass than some competitors due to always building underground, choosing to build to slightly larger lot sizes, and burying all of our drops. Our footprint has a much higher percentage of single-family homes and a concomitant lower percentage of apartments or other MDUs than most others. These construction choices lead to lower maintenance costs or higher net margins, as well as positively impacting penetration, ARPU, and churn. We would encourage investors to look at the impact of these variables on the value of a fiber home in evaluating this performance. As a level set on those variables, we currently have just under 42,000 customers in our organic footprints and over 6,000 customers in our partner markets for current take rates of 33% and 21%. We're just getting started in Colorado Springs and Memphis, so we expect to see those markets track on similar trajectories. These footprints are not mature, and we expect these take rates to continue to increase and to track towards our initial target of 50% for addresses greater than five years. Currently, for addresses over five years old, the take rate is 50%. We see no reason we can't exceed that. Our current ARPU is roughly $93, which covers our residential and SMB customers but excludes enterprise and fixed wireless customers. And here I note we are just getting started with value-added services. Our current churn is between 0.65% and 0.8% per month, depending upon seasonality. We were also asked for clarity around what we meant by success-based CapEx. This generally refers to the cost to connect a new customer. Our typical installation cost, fully loaded, is in the $900-$1,000 range. Building to bigger lot sizes means having to do a longer drop from the curb to the house. We remind shareholders that in Memphis, we have contracted separately to do the drops for our partner. This relationship is arm's length and clearly demonstrates that we perform installs competitively. That install cost is the marginal investment for a customer that generates roughly $1,000 in contribution margin in the first year alone. And remember that when a new customer moves into an existing Ting-enabled home, which happens more regularly the older the footprint, we do not incur that cost. Whether looking at our capital markets day in May of 2023 or the video we provided to investors on town-level economics in 2018, we have continued to track toward the operating performance we always expected. We have made mistakes, particularly around our ability to raise capital. But looking forward, it will be the performance of the ISP that will determine the value of Ting for Tucows shareholders. That performance continues to both track positively and outperform the industry. We've traditionally provided a lot of data points on the investment in Ting's organic markets, including the Holly Springs case study and at our Investor Day in May of 2023. Given the importance of partner markets on our growth going forward, investors would like to know how partner markets compare. We're working through ways to best help shareholders think about the value of a subscriber on a partner network. For now, a simple rubric is that a partner subscriber is worth about 1/3 of an organic network subscriber. The obvious benefit is massive reduction in capital required and in the associated resources needed to manage construction of a network. The less obvious benefit is that we can easily scale the ISP operation needed to serve these markets, primarily with national-level resources. National costs are highly leveraged and can easily support significantly more customers. We continue to have discussions about new partner opportunities. On the impact of shifting from building more fiber markets to increasing penetration in our existing footprint, an investor asks if this change is related to a lack of availability of new market opportunities. It is not. It is entirely about the current availability and cost of capital. Another investor asks why our exploration of strategic and partnership options for Ting didn't yield a capital partner to continue network expansion. As noted in the earnings remark, we thoroughly considered offers made. What became clear from our analysis and discussions with the board is that we could create substantially better long-term value for shareholders using our existing ISP operation, footprint, and partnerships instead of building more markets in the current capital climate. We were looking for capital in the form of common equity only. With the exception of the very biggest deals, deals north of $5 billion, the only capital on offer is debt or additional preferred equity. Neither of those makes economic sense to us. Eliminating new construction and all of the associated OpEx and focusing on the most efficient ISP operation is the clear path. We note that this is a path that was open to us as a public company that could focus on cash generation. This option is generally not available to a lot of our private equity-backed peers. We do expect some unnatural acts to be committed in 2025 as capital continues to tighten. Finally, I would like to again reinforce a point I made about Tucows and the Ting debt. The Ting debt is firewalled structurally from the rest of the business. In 2022, we separated the businesses to give each business more autonomy, particularly with respect to capital raising, and provide shareholders with greater transparency on the performance and prospects for each business. This should be central to any investor's analysis. The efforts to raise capital that took up a lot of time and energy over the last three years are behind us. We had some disappointments and one great success in the ABS. We can now focus on execution. We are confident that as investors see light at the end of the Ting tunnel, that they will benefit from their patience. Thank you for listening to our Q&A and a reminder that if you feel that the recorded answers or any direct email you receive do not address your question, please follow up with us at ir@tucows.com.