UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED OCTOBER 31, 2021 (973) 438-1000 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange on which registered or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commissi ...

Financial Data and Key Metrics Changes - The company reported year-over-year increases in revenue, gross profit, income from operations, and Adjusted EBITDA for Q1 fiscal 2022 [9] - Income from operations rose to $13.8 million, and Adjusted EBITDA increased to $18.3 million [21] - The company experienced a loss per share of $0.10 compared to EPS of $0.32 a year ago, influenced by an unrealized loss of $0.49 per share on investments [21] Business Line Data and Key Metrics Changes - Net2phone-UCaaS segment saw subscription revenue increase by 37.5% year-over-year, with revenue margin rising to 82.3% [10] - NRS revenue surged by 104% year-over-year to $10.1 million, with recurring revenue increasing by 126% to $8.6 million [15] - Money Transfer revenue increased nearly 15% sequentially to $12.5 million, although it decreased 18% year-over-year due to foreign exchange market conditions [17] - Traditional Communications revenue grew by 6.7% year-over-year to $334.6 million, with Mobile Top-Up revenue increasing by 34.1% to $128.5 million [18] Market Data and Key Metrics Changes - In the U.S., UCaaS subscription revenue increased by 42% year-over-year, while in Latin America, it grew by 58% [11] - Net2phone's service revenue in Mexico increased nearly 150%, indicating strong market traction [12] Company Strategy and Development Direction - The company is focused on potential spin-off of net2phone, pending Board authorization [22] - There is a commitment to enhancing customer experience through real-time account access for managed service partners [14] - The company aims to expand its POS terminal network and leverage new offerings to boost ARPU [15][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory of the Money Transfer business despite pricing pressures [36] - The company is focused on improving product offerings and customer retention to drive growth [41] - Management indicated that international expansion could significantly exceed 30% growth annually [87] Other Important Information - The company has been recognized for exceptional performance in the business communications sector, winning the Global Partner of the Year award from UC Today [13] - The integration of the acquired African Mobile Top-Up business is progressing well, enhancing market access and cost efficiencies [81] Q&A Session Summary Question: Drivers of ARPU growth in NRS - Management highlighted efforts to increase SaaS fees per terminal and expand payment processing services as key drivers of ARPU growth [26] Question: Future of Money Transfer business amidst pricing concerns - Management acknowledged potential downward pricing trends but emphasized the need for in-country revenue generation to maintain profitability [36][40] Question: Terminal deployment opportunities - Management indicated that there is significant growth potential in various verticals, with plans to expand terminal deployments substantially [45][46] Question: Mobile Top-Up growth and international expansion - Management expressed confidence in continued growth for Mobile Top-Up, with plans to enhance capabilities for international markets [87] Question: Integration of acquired African Mobile Top-Up business - Management confirmed successful integration and improved market access through the acquisition [81]

IDT Corporation Overview - IDT Corporation was founded in 1990 by Howard Jonas and is headquartered in Newark, NJ, with approximately 1700 employees, including 400 in research & development[4] - IDT has shown significant growth, increasing from a market cap of $54 million to $4.9 billion in 12 years[6] Financial Performance - IDT's FY2021 revenue was $1.4 billion, a 7.5% increase[7] - The company's consolidated Adjusted EBITDA less CAPEX has increased from $12 million in FY2017 to $58 million in FY2021[7] - Traditional Communications revenue for fiscal year 2021 was $1329 million[39] net2phone (Cloud Communications) - net2phone has 226,000 seats[10] and $47 million in annualized revenue[10] - net2phone operates in 9 countries across 3 continents[15] - net2phone is experiencing substantial growth, with 44% YoY growth in some regions and 56% YoY growth in others[15] NRS (FinTech) - NRS POS terminals increased from 10,000 in 4Q20 to 14,000 in 4Q21, a 40% increase[31] - NRS PAY accounts increased from 2,500 in 4Q20 to 5,600 in 4Q21, a 124% increase[31] - Total revenue for NRS increased from $4.676 million in 4Q20 to $8.217 million in 4Q21, a 76% increase[31] Mobile Top-Up - Mobile Top-Up is experiencing rapid topline growth[43] - Mobile Top-Up is growing at 56% YoY[48]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual report pursuant to section 13 or 15(d) of the securities exchange act of 1934 for the fiscal year ended July 31, 2021. or ☐ Transition report pursuant to section 13 or 15(d) of the securities exchange act of 1934. Commission File Number: 1-16371 IDT Corporation (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Delaware 22-3415036 (I.R.S. Employer Iden ...

IDT Corporation (NYSE:IDT) Q4 2021 Earnings Conference Call October 6, 2021 5:30 PM ET Company Participants Samuel Jonas - Chief Executive Officer Marcelo Fischer - Chief Financial Officer Conference Call Participants Connor Haley - Alta Fox Cap David Polansky - Immersion Operator Good evening. And welcome to the IDT Corporation’s Fourth Quarter and Full Fiscal Year 2021 Earnings Call. In today’s presentation, IDT’s management will discuss IDT’s financial and operational results for the three-month and 12-m ...

IDT Corporation Investor Presentation LD Micro Invitational JUNE 2021 Forward-Looking Statements All statements in this presentation that are not purely about historical facts, including, but not limited to, those in which we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate, "target" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgme ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements for IDT Corporation, including balance sheets, statements of operations, comprehensive income (loss), equity, and cash flows, along with detailed notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheet indicates an increase in total assets to $461.9 million at April 30, 2021, from $404.8 million at July 31, 2020, primarily driven by equity investments and deferred income tax assets | Metric | April 30, 2021 (in thousands) | July 31, 2020 (in thousands) | | :-------------------------- | :---------------------------- | :--------------------------- | | Total assets | $461,899 | $404,750 | | Total liabilities | $334,739 | $333,611 | | Total equity | $127,160 | $71,139 | - Current equity investments increased from **$5,964k** at July 31, 2020, to **$37,586k** at April 30, 2021. Deferred income tax assets, net, also saw a notable increase from **$8,512k** to **$22,530k**[10](index=10&type=chunk) [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended April 30, 2021, revenues increased by 16.3% year-over-year, and net income attributable to IDT Corporation surged to $36.3 million from $0.5 million Consolidated Statements of Operations (Three Months Ended April 30) | Metric | 2021 (in thousands) | 2020 (in thousands) | Change (YoY) | | :----------------------------------- | :------------------ | :------------------ | :------------- | | Revenues | $373,831 | $321,336 | +16.3% | | Income from operations | $13,872 | $3,792 | +265.8% | | Net income (loss) attributable to IDT Corporation | $36,348 | $518 | +6920.8% | | Basic EPS | $1.42 | $0.02 | +7000.0% | | Diluted EPS | $1.39 | $0.02 | +6850.0% | Consolidated Statements of Operations (Nine Months Ended April 30) | Metric | 2021 (in thousands) | 2020 (in thousands) | Change (YoY) | | :----------------------------------- | :------------------ | :------------------ | :------------- | | Revenues | $1,057,022 | $985,425 | +7.3% | | Income from operations | $40,045 | $3,722 | +976.0% | | Net income (loss) attributable to IDT Corporation | $57,744 | $(63) | N/A (from loss to profit) | | Basic EPS | $2.27 | $(0.00) | N/A (from loss to profit) | | Diluted EPS | $2.23 | $(0.00) | N/A (from loss to profit) | [Consolidated Statements of Comprehensive Income (Loss)](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) The Company reported a comprehensive income attributable to IDT Corporation of $36.9 million for the three months ended April 30, 2021, a significant turnaround from a loss of $(0.045) million in the prior year Consolidated Statements of Comprehensive Income (Loss) (Three Months Ended April 30) | Metric | 2021 (in thousands) | 2020 (in thousands) | | :----------------------------------- | :------------------ | :------------------ | | Net income (loss) | $36,398 | $385 | | Other comprehensive income (loss) | $567 | $(563) | | Comprehensive income (loss) attributable to IDT Corporation | $36,915 | $(45) | Consolidated Statements of Comprehensive Income (Loss) (Nine Months Ended April 30) | Metric | 2021 (in thousands) | 2020 (in thousands) | | :----------------------------------- | :------------------ | :------------------ | | Net income (loss) | $58,018 | $(133) | | Other comprehensive income (loss) | $(980) | $(2,280) | | Comprehensive income (loss) attributable to IDT Corporation | $56,764 | $(2,343) | [Consolidated Statements of Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Equity) Total equity increased substantially from $71.1 million at July 31, 2020, to $127.2 million at April 30, 2021, primarily driven by the period's net income which reduced the accumulated deficit - Total Equity increased from **$71,139k** at July 31, 2020, to **$127,160k** at April 30, 2021[21](index=21&type=chunk) - Accumulated Deficit decreased from **$(139,333)k** at July 31, 2020, to **$(81,589)k** at April 30, 2021, reflecting the period's net income[21](index=21&type=chunk) - Repurchases of Class B common stock through the repurchase program totaled **$(2,849)k** for the nine months ended April 30, 2021[21](index=21&type=chunk) [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended April 30, 2021, net cash provided by operating activities was $38.1 million, a significant improvement from a net cash outflow of $(70.6) million in the prior year Consolidated Statements of Cash Flows (Nine Months Ended April 30) | Activity | 2021 (in thousands) | 2020 (in thousands) | Change (YoY) | | :-------------------------------------------------------------------- | :------------------ | :------------------ | :------------- | | Net cash provided by (used in) operating activities | $38,144 | $(70,643) | +$108,787k | | Net cash used in investing activities | $(46,788) | $(22,784) | $(24,004)k | | Net cash used in financing activities | $(4,221) | $(1,331) | $(2,890)k | | Net decrease in cash, cash equivalents, and restricted cash and cash equivalents | $(6,213) | $(90,746) | +$84,533k | - Significant investing outflows included purchases of debt securities and equity investments (**$39,347k** in 2021 vs **$14,790k** in 2020) and payments for acquisitions (**$2,656k** in 2021 vs **$450k** in 2020)[30](index=30&type=chunk) [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the Company's accounting policies, business segments, revenue recognition, leases, cash management, debt and equity investments, fair value measurements, acquisitions, and other financial items [Note 1—Basis of Presentation](index=11&type=section&id=Note%201%E2%80%94Basis%20of%20Presentation) The unaudited interim financial statements are prepared in accordance with U.S. GAAP for interim information and Form 10-Q instructions, and do not include all disclosures required for complete annual financial statements - Interim financial statements are unaudited and prepared in accordance with U.S. GAAP for interim information and Form 10-Q[32](index=32&type=chunk) - The Company's fiscal year ends on July 31[33](index=33&type=chunk) [Note 2—Business Segment Information](index=11&type=section&id=Note%202%E2%80%94Business%20Segment%20Information) Effective August 1, 2020, the Company revised its reportable business segments to Fintech, net2phone-UCaaS, and Traditional Communications, reflecting the growth and increased contributions of its financial technology and cloud communications businesses - Revised reportable segments as of August 1, 2020: Fintech, net2phone-UCaaS, and Traditional Communications[34](index=34&type=chunk) - Fintech includes BOSS Revolution Money Transfer and National Retail Solutions (NRS). net2phone-UCaaS comprises net2phone's cloud communications offerings. Traditional Communications includes Mobile Top-Up, BOSS Revolution Calling, Carrier Services, and net2phone-Platform Services[36](index=36&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk) Segment Revenues and Income (Loss) from Operations (Three Months Ended April 30) | Segment | Revenues 2021 (in thousands) | Revenues 2020 (in thousands) | Income (Loss) from Operations 2021 (in thousands) | Income (Loss) from Operations 2020 (in thousands) | | :------------------------- | :--------------------------- | :--------------------------- | :------------------------------------------------ | :------------------------------------------------ | | Fintech | $16,644 | $14,684 | $(1,403) | $142 | | net2phone-UCaaS | $11,255 | $8,103 | $(3,684) | $(3,643) | | Traditional Communications | $345,932 | $298,549 | $20,074 | $9,503 | | Corporate | $— | $— | $(1,115) | $(2,210) | | **Total** | **$373,831** | **$321,336** | **$13,872** | **$3,792** | [Note 3—Revenue Recognition](index=12&type=section&id=Note%203%E2%80%94Revenue%20Recognition) Revenue is primarily recognized at a point in time for retail telecommunications and payment offerings, and wholesale international voice and SMS termination, with deferred revenue increasing to $42.8 million at April 30, 2021 - The most significant revenue streams are from Mobile Top-Up, BOSS Revolution Calling, and Carrier Services[41](index=41&type=chunk) Disaggregated Revenues by Service (Three Months Ended April 30) | Service | 2021 (in thousands) | 2020 (in thousands) | | :-------------------------- | :------------------ | :------------------ | | BOSS Revolution Money Transfer | $10,259 | $11,817 | | National Retail Solutions | $6,385 | $2,867 | | net2phone-UCaaS | $11,255 | $8,103 | | Mobile Top-Up | $132,603 | $85,139 | | BOSS Revolution Calling | $111,412 | $112,536 | | Carrier Services | $88,643 | $87,435 | | **Total** | **$373,831** | **$321,336** | - Deferred revenue increased to **$42,771k** at April 30, 2021, from **$40,114k** at July 31, 2020. Amortization of deferred customer contract acquisition costs increased to **$950k** for the three months ended April 30, 2021, from **$616k** in the prior year[10](index=10&type=chunk)[48](index=48&type=chunk)[51](index=51&type=chunk) [Note 4—Leases](index=15&type=section&id=Note%204%E2%80%94Leases) The Company's leases primarily consist of operating leases for office space, with remaining terms from one to five years, and an aggregate operating lease liability of $8.6 million at April 30, 2021 - Primary leases are operating leases for office space with remaining terms from one to five years[52](index=52&type=chunk) Total Lease Cost | Period | 2021 (in thousands) | 2020 (in thousands) | | :---------------------- | :------------------ | :------------------ | | Three Months Ended April 30 | $917 | $773 | | Nine Months Ended April 30 | $2,537 | $2,328 | - Total operating lease liabilities were **$8,624k** at April 30, 2021, compared to **$9,703k** at July 31, 2020[55](index=55&type=chunk) [Note 5—Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents](index=16&type=section&id=Note%205%E2%80%94Cash,%20Cash%20Equivalents,%20and%20Restricted%20Cash%20and%20Cash%20Equivalents) Total cash, cash equivalents, and restricted cash and cash equivalents decreased to $195.0 million at April 30, 2021, from $201.2 million at July 31, 2020, with restricted cash primarily comprising customer deposits Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents | Metric | April 30, 2021 (in thousands) | July 31, 2020 (in thousands) | | :---------------------------------------------------------- | :---------------------------- | :--------------------------- | | Cash and cash equivalents | $84,017 | $84,860 | | Restricted cash and cash equivalents | $110,992 | $116,362 | | **Total** | **$195,009** | **$201,222** | - Restricted cash and cash equivalents primarily include customer deposits held by IDT Financial Services Limited[56](index=56&type=chunk) [Note 6—Debt Securities](index=17&type=section&id=Note%206%E2%80%94Debt%20Securities) Available-for-sale debt securities totaled $16.9 million at April 30, 2021, down from $18.4 million at July 31, 2020, primarily consisting of corporate bonds, municipal bonds, and U.S. Treasury bills and notes Available-for-Sale Debt Securities | Metric | April 30, 2021 (in thousands) | July 31, 2020 (in thousands) | | :-------------------------- | :---------------------------- | :--------------------------- | | Total Fair Value | $16,852 | $18,363 | | Gross Unrealized Losses | $(142) | $(16) | Contractual Maturities of Debt Securities (April 30, 2021) | Maturity Period | Fair Value (in thousands) | | :-------------------------- | :------------------------ | | Within one year | $5,048 | | After one year through five years | $5,986 | | After five years through ten years | $5,399 | | After ten years | $419 | | **Total** | **$16,852** | [Note 7—Equity Investments](index=18&type=section&id=Note%207%E2%80%94Equity%20Investments) Current equity investments significantly increased to $37.6 million at April 30, 2021, from $6.0 million at July 31, 2020, primarily due to increased holdings in fixed income mutual funds and Rafael Holdings, Inc. Class B common stock Equity Investments | Metric | April 30, 2021 (in thousands) | July 31, 2020 (in thousands) | | :-------------------------- | :---------------------------- | :--------------------------- | | Current equity investments | $37,586 | $5,964 | | Noncurrent equity investments | $14,922 | $8,833 | - The Company purchased **218,245** newly issued shares of Rafael Holdings, Inc. Class B common stock and a warrant for **$5.0 million** in December 2020, and exercised the warrant for **$1.0 million** in March 2021[62](index=62&type=chunk) Net Gains (Losses) Recognized on Equity Investments | Period | 2021 (in thousands) | 2020 (in thousands) | | :----------------------------------- | :------------------ | :------------------ | | Three Months Ended April 30 | $5,435 | $(1,226) | | Nine Months Ended April 30 | $5,822 | $(817) | - On February 2, 2021, the Company paid **$4.0 million** to purchase shares of series B convertible preferred stock in a communications company, representing **23.95%** of its outstanding shares, and accounts for it using the equity method[67](index=67&type=chunk) [Note 8—Fair Value Measurements](index=20&type=section&id=Note%208%E2%80%94Fair%20Value%20Measurements) The Company measures certain assets and liabilities at fair value on a recurring basis, categorized into Level 1, 2, and 3 inputs, with total assets measured at fair value increasing to $59.7 million at April 30, 2021 Assets Measured at Fair Value (April 30, 2021) | Category | Level 1 (in thousands) | Level 2 (in thousands) | Level 3 (in thousands) | Total (in thousands) | | :----------------------------------- | :--------------------- | :--------------------- | :--------------------- | :------------------- | | Debt securities | $1,644 | $15,208 | $— | $16,852 | | Equity investments (current assets) | $26,759 | $10,827 | $— | $37,586 | | Equity investments (noncurrent assets) | $— | $2,920 | $2,343 | $5,263 | | **Total** | **$28,403** | **$28,955** | **$2,343** | **$59,701** | - Contingent consideration included in other noncurrent liabilities (Level 3) increased to **$(795)k** at April 30, 2021, from **$(396)k** at July 31, 2020[71](index=71&type=chunk) - Investments in hedge funds (**$3.5 million** at April 30, 2021) are accounted for using the equity method and are not measured at fair value[72](index=72&type=chunk) [Note 9—Acquisitions](index=23&type=section&id=Note%209%E2%80%94Acquisitions) In December 2020, IDTIT acquired 51% of a digital distribution platform company for $2.4 million cash plus $0.4 million in contingent consideration, resulting in $2.0 million in goodwill assigned to the Traditional Communications segment - IDTIT acquired **51%** of a digital distribution platform company on December 3, 2020, for **$2,388k** cash (net of cash acquired) and **$393k** contingent consideration[78](index=78&type=chunk) - Goodwill of **$2,025k** was assigned to the Traditional Communications segment from the December 2020 acquisition[79](index=79&type=chunk) - net2phone acquired **100%** of Ringsouth Europa, S.L. on December 11, 2019, for **$450k** cash and **$375k** contingent consideration[81](index=81&type=chunk) [Note 10—Other Operating Gain (Expense), Net](index=25&type=section&id=Note%2010%E2%80%94Other%20Operating%20Gain%20(Expense),%20Net) Other operating gain (expense), net, significantly improved to a gain of $0.6 million for the three months ended April 30, 2021, from an expense of $(0.2) million in the prior year, driven by insurance claims and a gain from the sale of lawsuit rights Other Operating Gain (Expense), Net | Period | 2021 (in thousands) | 2020 (in thousands) | | :----------------------------------- | :------------------ | :------------------ | | Three Months Ended April 30 | $595 | $(234) | | Nine Months Ended April 30 | $1,550 | $(3,402) | - Includes a **$2.0 million** gain from the sale of rights under the Payment Card Interchange Fee and Merchant Discount Antitrust Litigation in the nine months ended April 30, 2021[84](index=84&type=chunk) - Corporate segment recorded **$605k** gain (net of legal fees) from Straight Path Communications Inc. class action insurance claims for the three months ended April 30, 2021[82](index=82&type=chunk) [Note 11—Equity](index=27&type=section&id=Note%2011%E2%80%94Equity) The Company repurchased 463,792 shares of Class B common stock for $2.8 million under its stock repurchase program in the nine months ended April 30, 2021, with 5.8 million shares remaining available - Repurchased **463,792** shares of Class B common stock for **$2.8 million** in the nine months ended April 30, 2021, under a program with **5.8 million** shares remaining[88](index=88&type=chunk) - Issued **283,838** shares of Class B common stock for vested Deferred Stock Units (DSUs) on January 5, 2021[90](index=90&type=chunk) - Granted restricted shares in net2phone 2.0, Inc. (**5%** of outstanding common stock) to Howard S. Jonas and Shmuel Jonas, vesting upon achieving **$18 million** in subscription revenue or a **$100 million** valuation by October 31, 2023[92](index=92&type=chunk) [Note 12—Earnings (Loss) Per Share](index=27&type=section&id=Note%2012%E2%80%94Earnings%20(Loss)%20Per%20Share) Basic EPS for the three months ended April 30, 2021, was $1.42, up from $0.02 in the prior year, reflecting the Company's improved profitability Earnings (Loss) Per Share (Three Months Ended April 30) | Metric | 2021 | 2020 | | :----------- | :--- | :--- | | Basic EPS | $1.42 | $0.02 | | Diluted EPS | $1.39 | $0.02 | Earnings (Loss) Per Share (Nine Months Ended April 30) | Metric | 2021 | 2020 | | :----------- | :--- | :--- | | Basic EPS | $2.27 | $(0.00) | | Diluted EPS | $2.23 | $(0.00) | - The weighted-average number of shares used in the diluted EPS calculation for the three months ended April 30, 2021, was **26,136k**, compared to **26,506k** in 2020[96](index=96&type=chunk) [Note 13—Accumulated Other Comprehensive Loss](index=29&type=section&id=Note%2013%E2%80%94Accumulated%20Other%20Comprehensive%20Loss) Accumulated other comprehensive loss increased to $(8.4) million at April 30, 2021, from $(7.4) million at July 31, 2020, primarily due to foreign currency translation adjustments and unrealized losses on available-for-sale securities Accumulated Other Comprehensive Loss | Metric | April 30, 2021 (in thousands) | July 31, 2020 (in thousands) | | :----------------------------------- | :---------------------------- | :--------------------------- | | Accumulated Other Comprehensive Loss | $(8,390) | $(7,410) | - Other comprehensive loss attributable to IDT Corporation for the nine months ended April 30, 2021, was **$(980)k**[97](index=97&type=chunk) [Note 14—Commitments and Contingencies](index=29&type=section&id=Note%2014%E2%80%94Commitments%20and%20Contingencies) The Company is monitoring COVID-19 impacts, involved in legal proceedings, and has accrued $41.6 million for FCC-related regulatory fees at April 30, 2021 - COVID-19 led to significant increases in demand for digital consumer offerings (BOSS Revolution Money Transfer, Calling, Mobile Top-Up) and resilience in NRS, but accelerated decline in Carrier Services[127](index=127&type=chunk) - A pending putative class action on behalf of Straight Path's stockholders and derivative complaint naming the Company is scheduled for trial in December 2021[102](index=102&type=chunk) - Accrued expenses included **$41.6 million** at April 30, 2021, for FCC-related regulatory fees. The Company also has aggregate performance bonds of **$19.8 million** outstanding[105](index=105&type=chunk)[107](index=107&type=chunk) [Note 15—Other Income (Expense), Net](index=33&type=section&id=Note%2015%E2%80%94Other%20Income%20(Expense),%20Net) Other income (expense), net, improved significantly to a gain of $3.8 million for the three months ended April 30, 2021, from an expense of $(2.1) million in the prior year, primarily driven by substantial gains on investments Other Income (Expense), Net | Period | 2021 (in thousands) | 2020 (in thousands) | | :----------------------------------- | :------------------ | :------------------ | | Three Months Ended April 30 | $3,815 | $(2,144) | | Nine Months Ended April 30 | $5,608 | $(1,360) | Gain (Loss) on Investments | Period | 2021 (in thousands) | 2020 (in thousands) | | :----------------------------------- | :------------------ | :------------------ | | Three Months Ended April 30 | $5,435 | $(1,226) | | Nine Months Ended April 30 | $5,822 | $(817) | - Equity in the net loss of investee was **$(528)k** for both the three and nine months ended April 30, 2021[111](index=111&type=chunk) [Note 16—Income Taxes](index=33&type=section&id=Note%2016%E2%80%94Income%20Taxes) The Company released $24.0 million of its valuation allowance on deferred income tax assets in the three and nine months ended April 30, 2021, based on three consecutive years of profitability in the United States and expected future profitability - Released **$24.0 million** of valuation allowance on deferred income tax assets in the three and nine months ended April 30, 2021[112](index=112&type=chunk) - The primary factors for the release were three consecutive years of profitability in the United States and expected future profitability in both the United States and the United Kingdom[112](index=112&type=chunk) [Note 17—Recently Issued Accounting Standards Not Yet Adopted](index=33&type=section&id=Note%2017%E2%80%94Recently%20Issued%20Accounting%20Standards%20Not%20Yet%20Adopted) The Company is evaluating the impact of new accounting standards, including ASU No. 2016-13 (Credit Losses), ASU No. 2019-12 (Income Taxes), and ASU No. 2020-01 (Equity Investments), all to be adopted in future fiscal years - ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326), will be adopted on August 1, 2023[113](index=113&type=chunk) - ASU No. 2019-12, Income Taxes (Topic 740), will be adopted on August 1, 2021[114](index=114&type=chunk) - ASU No. 2020-01, Investments—Equity Securities (Topic 321), will be adopted on August 1, 2021[115](index=115&type=chunk) [Note 18— Revolving Credit Facility—Subsequent Event](index=33&type=section&id=Note%2018%E2%80%94%20Revolving%20Credit%20Facility%E2%80%94Subsequent%20Event) Subsequent to the quarter, IDT Telecom, Inc. entered into a new $25.0 million revolving credit facility with TD Bank, N.A. on May 17, 2021, secured by its assets and maturing in May 2024 - IDT Telecom, Inc. entered into a new **$25.0 million** revolving credit facility with TD Bank, N.A. on May 17, 2021 (subsequent event)[116](index=116&type=chunk) - The facility is secured by primarily all of IDT Telecom's assets, bears interest based on the LIBO rate, and all outstanding principal is due in May 2024[116](index=116&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial condition and results of operations, including the impact of COVID-19, segment performance, and liquidity - The Company will transition from scaled disclosure available to smaller reporting companies to disclosure requirements applicable to all other companies beginning with its Quarterly Report on Form 10-Q for its first quarter in fiscal 2022, due to its public float exceeding **$200 million**[119](index=119&type=chunk) - COVID-19 had mixed financial impacts, driving significant increases in demand for consumer offerings through digital channels but accelerating the decline in Carrier Services[127](index=127&type=chunk) - The Company expects its cash from operations and current liquid assets to be sufficient to meet working capital and capital expenditure requirements for the twelve-month period ending April 30, 2022[128](index=128&type=chunk)[173](index=173&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) The Company's overall results of operations improved significantly, with total revenues increasing and income from operations surging for both the three and nine months ended April 30, 2021 Consolidated Income from Operations | Period | 2021 (in millions) | 2020 (in millions) | Change (YoY) | | :----------------------------------- | :----------------- | :----------------- | :------------- | | Three Months Ended April 30 | $13.9 | $3.8 | +265.8% | | Nine Months Ended April 30 | $40.0 | $3.7 | +975.9% | - Stock-based compensation expense included in consolidated selling, general and administrative expenses decreased to **$0.3 million** (3 months) and **$1.2 million** (9 months) in 2021, from **$0.8 million** and **$3.3 million** in 2020, respectively[167](index=167&type=chunk) [Fintech Segment](index=36&type=section&id=Fintech%20Segment) Fintech revenues increased by 13.3% for the three months and 62.5% for the nine months ended April 30, 2021, primarily driven by the expansion of National Retail Solutions (NRS) POS network Fintech Segment Revenues | Period | 2021 (in millions) | 2020 (in millions) | Change (YoY) | | :----------------------------------- | :----------------- | :----------------- | :------------- | | Three Months Ended April 30 | $16.6 | $14.7 | +13.3% | | Nine Months Ended April 30 | $55.2 | $34.0 | +62.5% | - NRS revenues increased by **122.7%** (3 months) and **126.3%** (9 months) due to POS network expansion and growth in payment processing and digital advertising[133](index=133&type=chunk) - BOSS Revolution Money Transfer revenues decreased by **13.2%** (3 months) due to transient foreign exchange market conditions ceasing, but increased by **45.0%** (9 months) due to increased digital transaction volume[133](index=133&type=chunk) Fintech Segment (Loss) Income from Operations | Period | 2021 (in millions) | 2020 (in millions) | | :----------------------------------- | :----------------- | :----------------- | | Three Months Ended April 30 | $(1.4) | $0.1 | | Nine Months Ended April 30 | $1.5 | $(5.7) | [net2phone-UCaaS Segment](index=38&type=section&id=net2phone-UCaaS%20Segment) net2phone-UCaaS revenues increased by 38.9% for the three months and 36.1% for the nine months ended April 30, 2021, primarily driven by a 51% growth in seats served and strong subscription revenue growth net2phone-UCaaS Segment Revenues | Period | 2021 (in millions) | 2020 (in millions) | Change (YoY) | | :----------------------------------- | :----------------- | :----------------- | :------------- | | Three Months Ended April 30 | $11.3 | $8.1 | +38.9% | | Nine Months Ended April 30 | $31.6 | $23.2 | +36.1% | - Seats served increased **51%** to **210,000** at April 30, 2021, from **139,000** at April 30, 2020. Subscription revenue increased **39.4%** (3 months) and **35.9%** (9 months), led by growth in the U.S. market[142](index=142&type=chunk) net2phone-UCaaS Segment Loss from Operations | Period | 2021 (in millions) | 2020 (in millions) | | :----------------------------------- | :----------------- | :----------------- | | Three Months Ended April 30 | $(3.7) | $(3.6) | | Nine Months Ended April 30 | $(10.7) | $(11.1) | [Traditional Communications Segment](index=41&type=section&id=Traditional%20Communications%20Segment) Traditional Communications revenues increased by 15.9% for the three months and 4.5% for the nine months ended April 30, 2021, primarily due to significant growth in Mobile Top-Up, with income from operations more than doubling for both periods Traditional Communications Segment Revenues | Period | 2021 (in millions) | 2020 (in millions) | Change (YoY) | | :----------------------------------- | :----------------- | :----------------- | :------------- | | Three Months Ended April 30 | $345.9 | $298.5 | +15.9% | | Nine Months Ended April 30 | $970.2 | $928.2 | +4.5% | - Mobile Top-Up revenues increased by **55.8%** (3 months) and **36.7%** (9 months) due to product expansion and growth across distribution channels[151](index=151&type=chunk) - Carrier Services revenues increased by **1.4%** (3 months) but decreased by **12.9%** (9 months), with minutes of use declining by **26.5%** (3 months) and **29.4%** (9 months) due to global transition away from international voice calling, accelerated by COVID-19[151](index=151&type=chunk)[153](index=153&type=chunk) Traditional Communications Segment Income from Operations | Period | 2021 (in millions) | 2020 (in millions) | | :----------------------------------- | :----------------- | :----------------- | | Three Months Ended April 30 | $20.1 | $9.5 | | Nine Months Ended April 30 | $54.6 | $27.8 | [Corporate](index=43&type=section&id=Corporate) Corporate loss from operations decreased for both the three and nine months ended April 30, 2021, primarily due to decreases in stock-based compensation and employee compensation, and offsetting gains from insurance claims Corporate Loss from Operations | Period | 2021 (in millions) | 2020 (in millions) | Change (YoY) | | :----------------------------------- | :----------------- | :----------------- | :------------- | | Three Months Ended April 30 | $(1.1) | $(2.2) | +49.6% | | Nine Months Ended April 30 | $(5.3) | $(7.2) | +26.8% | - Corporate general and administrative expense decreased due to lower stock-based compensation and employee compensation[163](index=163&type=chunk) - Recorded offsetting gains from insurance claims for the Straight Path class action of **$0.9 million** (3 months) and **$2.6 million** (9 months) in 2021[164](index=164&type=chunk) [Liquidity and Capital Resources](index=46&type=section&id=Liquidity%20and%20Capital%20Resources) The Company's liquidity position is strong, with $127.6 million in cash, cash equivalents, debt securities, and unrestricted current equity investments, and $26.7 million in working capital at April 30, 2021 - At April 30, 2021, the Company had **$127.6 million** in cash, cash equivalents, debt securities, and unrestricted current equity investments, and working capital of **$26.7 million**[174](index=174&type=chunk) Cash Flows (Nine Months Ended April 30) | Activity | 2021 (in millions) | 2020 (in millions) | | :----------------------------------- | :----------------- | :----------------- | | Operating activities | $38.1 | $(70.6) | | Investing activities | $(46.8) | $(22.8) | | Financing activities | $(4.2) | $(1.3) | - Capital expenditures were **$13.5 million** for the nine months ended April 30, 2021, with an anticipated **$18 million to $20 million** for the next twelve months[183](index=183&type=chunk) - The Company repurchased **463,792** shares of Class B common stock for **$2.8 million** in the nine months ended April 30, 2021[195](index=195&type=chunk) [Other Sources and Uses of Resources](index=50&type=section&id=Other%20Sources%20and%20Uses%20of%20Resources) The Company intends to pursue strategic investments and acquisitions to complement, expand, and/or enter into new businesses, seeking opportunities that meet its return-on-investment criteria and contribute to profitable growth and diversification - The Company intends to make strategic investments and acquisitions to complement, expand, and/or enter into new businesses[198](index=198&type=chunk) [Contractual Obligations and Other Commercial Commitments](index=50&type=section&id=Contractual%20Obligations%20and%20Other%20Commercial%20Commitments) Total contractual obligations at April 30, 2021, amounted to $13.9 million, primarily comprising purchase commitments, connectivity obligations, and operating leases Total Contractual Obligations (April 30, 2021) | Obligation Type | Total (in millions) | Less than 1 year (in millions) | 1–3 years (in millions) | 4–5 years (in millions) | After 5 years (in millions) | | :----------------------------------- | :------------------ | :----------------------------- | :---------------------- | :---------------------- | :-------------------------- | | Purchase commitments | $3.4 | $3.4 | $— | $— | $— | | Connectivity obligations | $1.1 | $0.8 | $0.3 | $— | $— | | Operating leases | $9.4 | $3.1 | $4.4 | $1.9 | $— | | **Total** | **$13.9** | **$7.3** | **$4.7** | **$1.9** | **$—** | - The table excludes an aggregate of **$19.8 million** in performance bonds and **$1.3 million** in potential contingent consideration related to business acquisitions due to the uncertainty of the amount and/or timing of any such payments[199](index=199&type=chunk) [Off-Balance Sheet Arrangements](index=50&type=section&id=Off-Balance%20Sheet%20Arrangements) The Company has no significant off-balance sheet arrangements, as defined by SEC regulations, other than indemnification agreements related to the Straight Path spin-off and $19.8 million in performance bonds outstanding - The Company has indemnification agreements with Straight Path related to its spin-off, covering liabilities for federal, state, local, and foreign taxes for periods before and including the spin-off[201](index=201&type=chunk) - Aggregate performance bonds of **$19.8 million** were outstanding at April 30, 2021, issued through third parties for money remittance licenses and telecommunications resellers[202](index=202&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risks](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risks) As a smaller reporting company, IDT Corporation is not required to provide quantitative and qualitative disclosures about market risks in this Quarterly Report on Form 10-Q - The Company is not required to provide quantitative and qualitative disclosures about market risks as it qualifies as a smaller reporting company[203](index=203&type=chunk) [Item 4. Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of April 30, 2021, with no material changes in internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer evaluated and concluded that the Company's disclosure controls and procedures were effective as of April 30, 2021[204](index=204&type=chunk) - There were no material changes in internal control over financial reporting during the quarter ended April 30, 2021[205](index=205&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding legal proceedings in which the Company is involved is detailed in Note 14 to the Consolidated Financial Statements - Legal proceedings in which the Company is involved are described in Note 14 to the Consolidated Financial Statements[208](index=208&type=chunk) [Item 1A. Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) The Company faces new and ongoing risks, including those related to Brexit's impact on its U.K.-based businesses and financial services, the concentrated voting power of trusts benefiting Howard S. Jonas's children, and potential harm from imminent FCC Orders and rules - Brexit poses risks to U.K.-based businesses, including regulatory complexities, higher costs, and the loss of passporting rights for IDT Financial Services Limited (IDTFS), which previously serviced EU customers[209](index=209&type=chunk)[211](index=211&type=chunk) - Eight trusts for the benefit of Howard S. Jonas's children collectively hold approximately **69.5%** of the combined voting power, which may limit the ability of other stockholders to affect management and creates an anti-takeover effect[212](index=212&type=chunk)[215](index=215&type=chunk) - Imminent FCC Orders and rules, specifically the STIR/SHAKEN caller identification framework, could harm the telecommunications marketplace and the Company, particularly concerning foreign carrier compliance and potential penalties[216](index=216&type=chunk)[218](index=218&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=53&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or purchases of shares under the publicly announced repurchase program occurred during the third quarter of fiscal 2021 (February 1 - April 30, 2021) - No shares were purchased under the stock repurchase program during the three months ended April 30, 2021[219](index=219&type=chunk) - As of April 30, 2021, **5.8 million** shares remained available for repurchase under the stock repurchase program[219](index=219&type=chunk) [Item 3. Defaults Upon Senior Securities](index=53&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the reported period - None[220](index=220&type=chunk) [Item 4. Mine Safety Disclosures](index=54&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the Company - Not applicable[221](index=221&type=chunk) [Item 5. Other Information](index=54&type=section&id=Item%205.%20Other%20Information) There is no other information to report under this item - None[221](index=221&type=chunk) [Item 6. Exhibits](index=55&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications from the Chief Executive Officer and Chief Financial Officer, as well as XBRL taxonomy extension documents - Includes certifications of the Chief Executive Officer and Chief Financial Officer (Exhibits 31.1, 31.2, 32.1, 32.2)[222](index=222&type=chunk) - Includes XBRL Taxonomy Extension Schema, Calculation, Definition, Label, and Presentation Linkbase Documents (Exhibits 101.SCH, CAL, DEF, LAB, PRE) and Cover Page Interactive Data File (Exhibit 104)[222](index=222&type=chunk) SIGNATURES [SIGNATURES](index=56&type=section&id=SIGNATURES) The Quarterly Report on Form 10-Q was duly signed on behalf of IDT Corporation by Shmuel Jonas, Chief Executive Officer, and Marcelo Fischer, Chief Financial Officer, on June 9, 2021 - The report was signed by Shmuel Jonas, Chief Executive Officer, and Marcelo Fischer, Chief Financial Officer, on June 9, 2021[226](index=226&type=chunk)

IDT Corporation (NYSE:IDT) Q3 2021 Results Earnings Conference Call June 3, 2021 5:30 PM ET Company Participants Samuel Jonas - CEO Marcelo Fischer - CFO Conference Call Participants James Smith - Private Investor Brian Warner - Private Investor Operator Good evening, and welcome to the IDT Corporation's Third Quarter Fiscal Year 2021 Earnings Call. In today's presentation, IDT's management will discuss IDT's financial and operational results for the 3-month period ended April 30, 2021. [Operator Instructio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JANUARY 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 1-16371 IDT CORPORATION (Exact Name of Registrant as Specified in its Charter) Delaware 22-3415036 (State or other jurisdiction of incorporation or organization) (I.R.S. Empl ...

IDT Corp (NYSE:IDT) Q2 2021 Earnings Conference Call March 4, 2021 5:30 PM ET Company Participants Samuel Jonas - CEO Marcelo Fischer - CFO Conference Call Participants Operator Good evening, and welcome to the IDT Corporation's Second Quarter Fiscal Year 2021 Earnings Call. In today's presentation, IDT's management will discuss IDT's financial and operational results for the 3-month period ending January 31, 2021. [Operator Instructions]. After the prepared remarks, Marcelo Fischer, IDT's Chief Financial O ...