IDT(US:IDT)2025-03-12 19:17Revenue Growth - For the three months ended January 31, 2025, National Retail Solutions (NRS) generated total revenues of $33.0 million, a 30.7% increase from $25.2 million in the same period of 2024[126]. - Recurring revenue for NRS increased to $31.6 million, up 32.3% from $23.9 million year-over-year for the three months ended January 31, 2025[126]. - BOSS Money revenues increased by 33.8% to $33.5 million in Q1 2025 from $25.0 million in Q1 2024, and by 36.4% to $67.2 million in the first half of 2025 from $49.3 million in the same period of 2024[131]. - Total revenues for the company rose by 31.6% to $36.8 million in Q1 2025 compared to $28.0 million in Q1 2024, and by 35.5% to $73.9 million in the first half of 2025 from $54.6 million in the same period of 2024[131]. - Revenues from IDT Digital Payments increased by 1.9% to $101.6 million in Q1 2025 compared to $99.6 million in Q1 2024, and by 3.5% to $206.7 million in the first half of 2025 compared to $199.7 million in the first half of 2024[145][147]. - IDT Global revenues increased by 5.2% to $51.3 million in Q1 2025 compared to $48.7 million in Q1 2024, and by 2.9% to $103.7 million in the first half of 2025 compared to $100.8 million in the first half of 2024[145][149]. Operational Performance - Income from operations for NRS rose to $9.1 million, a 70.6% increase from $5.3 million in the same quarter of 2024[126]. - Income from operations surged by 520.7% to $3.1 million in Q1 2025 from a loss of $0.7 million in Q1 2024, and by 398.8% to $6.3 million in the first half of 2025 from a loss of $2.1 million in the same period of 2024[137]. - Income from operations increased to $28.3 million for the three months ended January 31, 2025, up 76.8% from $16.0 million in the same period of 2024[163]. - Net income attributable to IDT Corporation rose to $20.3 million for the three months ended January 31, 2025, a 40.5% increase from $14.4 million in the prior year[163]. Expenses - Selling, general and administrative expenses for NRS increased to $19.0 million for the three months ended January 31, 2025, compared to $15.3 million in the same period of 2024, reflecting higher sales commissions and employee compensation[128]. - Selling, general and administrative expenses as a percentage of revenue decreased to 44.2% in Q1 2025 from 51.2% in Q1 2024, and to 43.8% from 52.2% in the first half of 2025 compared to the same period in 2024[134]. - Selling, general and administrative expenses decreased by 9.3% to $19.4 million in Q1 2025 compared to $21.4 million in Q1 2024, and by 6.1% to $39.4 million in the first half of 2025 compared to $42.0 million in the first half of 2024[145][151]. - Technology and development expenses increased to $2.2 million for the three months ended January 31, 2025, primarily due to higher employee compensation and depreciation[129]. - Technology and development expenses decreased by 9.2% to $5.4 million in Q1 2025 compared to $5.9 million in Q1 2024, and by 9.3% to $10.9 million in the first half of 2025 compared to $12.0 million in the first half of 2024[145][152]. Financial Position - Cash, cash equivalents, debt securities, and current equity investments totaled $171.1 million as of January 31, 2025, with working capital of $183.9 million[168]. - Customer funds deposits liabilities increased to $104.7 million at January 31, 2025, up from $91.9 million at July 31, 2024[174]. - Gross trade accounts receivable rose to $52.4 million at January 31, 2025, compared to $48.6 million at July 31, 2024[172]. - Deferred revenue decreased to $28.4 million at January 31, 2025, down from $30.4 million at July 31, 2024[173]. - The company expects cash flow from operations and current investments to meet anticipated working capital and capital expenditure requirements for the next twelve months[167]. Shareholder Actions - The company paid aggregate cash dividends of $2.5 million in the six months ended January 31, 2025, with a quarterly cash dividend increase to $0.06 per share from $0.05 per share announced in March 2025[181]. - The company repurchased 217,052 shares of Class B common stock for $9.9 million in the six months ended January 31, 2025, compared to 135,261 shares for $3.2 million in the same period of 2024[186]. - The company repurchased 32,022 shares for $1.5 million to satisfy employees' tax withholding obligations in the six months ended January 31, 2025[187]. - A total of 4.2 million shares remain available for repurchase under the stock repurchase program as of January 31, 2025[186]. Debt and Credit Facilities - IDT Telecom entered into a credit agreement for a revolving credit facility of up to $25.0 million, with no amounts outstanding as of January 31, 2025[183]. - In the six months ended January 31, 2025, IDT Telecom borrowed and repaid an aggregate of $24.5 million under the credit facility, compared to $30.6 million in the same period of 2024[183]. - The company paid a quarterly unused commitment fee of 10 basis points on the average daily balance of the unused portion of the credit facility[183]. - IDT Telecom was in compliance with all covenants of the credit facility as of January 31, 2025[183]. Segment Performance - The Fintech segment represented 12.1% of total revenues for the three months ended January 31, 2025, compared to 9.4% in the same period of 2024[130]. - The net2phone segment represented 7.1% of total revenues in Q1 2025, up from 6.9% in Q1 2024, and 7.0% in the first half of 2025, compared to 6.8% in the same period of 2024[136]. - Traditional Communications segment accounted for 69.9% of total revenues in Q1 2025, down from 75.2% in Q1 2024, and 70.6% in the first half of 2025, compared to 75.9% in the same period of 2024[143]. - The number of seats served by net2phone increased by 9% to 410 in January 2025 from 375 in January 2024[137]. Other Financial Metrics - Direct cost of revenues decreased to $(2.7) million for the three months ended January 31, 2025, compared to $(2.7) million in the same period of 2024, primarily due to lower costs associated with NRS' POS terminal sales[127]. - Gross profit for NRS increased to $30.3 million, a 34.7% increase from $22.5 million in the same quarter of 2024[126]. - Gross profit increased by 2.0% to $43.1 million in Q1 2025 compared to $42.3 million in Q1 2024, and decreased slightly by 0.5% to $84.5 million in the first half of 2025 compared to $84.9 million in the first half of 2024[145].