IDT(US:IDT)2024-06-10 20:43Revenue Performance - For the three months ended April 30, 2024, National Retail Solutions (NRS) represented 8.6% of total revenues, compared to 6.0% for the same period in 2023[147]. - NRS accounted for 8.4% of total revenues for the nine months ended April 30, 2024, compared to 6.1% for the same period in 2023[147]. - Total revenues for the three months ended April 30, 2024, increased to $25.7 million, a 42.3% increase from $18.1 million in the same period of 2023[148]. - Recurring revenues rose to $24.0 million, up 45.4% from $16.5 million year-over-year[148]. - BOSS Money revenues increased by 41.9% to $27.6 million in the three months ended April 30, 2024, compared to $19.5 million in the same period of 2023[153]. - Subscription revenues increased by 17.1% to $20.1 million in the three months ended April 30, 2024, compared to $17.1 million in the same period of 2023[160]. - Total revenues for the three months ended April 30, 2024, were $20.7 million, a 12.4% increase from $18.4 million in the same period of 2023[160]. - Revenues from IDT Digital Payments slightly increased by 0.5% to $101.6 million in the three months ended April 30, 2024, compared to $101.0 million in the same period of 2023[169]. - Revenues from BOSS Revolution Calling decreased by 18.5% to $63.2 million in the three months ended April 30, 2024, compared to $77.6 million in the same period of 2023[169]. - IDT Global revenues decreased by 8.1% to $50.1 million in the three months ended April 30, 2024, compared to $54.5 million in the same period of 2023[169]. - Revenues from international operations accounted for 22% of consolidated revenues in the three months ended April 30, 2024, down from 28% in the same period of 2023[218]. Expenses and Profitability - Selling, general and administrative expenses as a percentage of revenue decreased to 60.9% from 64.1% in the three months ended April 30, 2024, compared to the same period in 2023[150]. - Gross profit for the three months ended April 30, 2024, was $22.1 million, a 47.6% increase from $15.0 million in the same period of 2023[148]. - Direct cost of revenues increased by 16.2% to $3.6 million in the three months ended April 30, 2024, compared to $3.1 million in the same period of 2023[149]. - Technology and development expenses increased by 28.5% to $1.7 million in the three months ended April 30, 2024, compared to $1.3 million in the same period of 2023[151]. - Corporate general and administrative expense was $8.3 million in the three months ended April 30, 2024, compared to $6.7 million in the same period of 2023, reflecting a 23.5% increase[180]. - Income from operations for the three months ended April 30, 2024, was $11.4 million, a 10.2% increase from $10.4 million in the same period of 2023[187]. - Net income attributable to IDT Corporation for the three months ended April 30, 2024, was $5.6 million, down 19.4% from $6.9 million in the same period of 2023[187]. - Total stock-based compensation expense increased to $2.1 million in the three months ended April 30, 2024, from $1.7 million in the same period of 2023, representing a 23.5% increase[183]. Assets and Cash Flow - Cash, cash equivalents, debt securities, and current equity investments totaled $174.0 million as of April 30, 2024[191]. - Working capital as of April 30, 2024, was $130.7 million, indicating a strong liquidity position[191]. - Cash flows from operating activities increased to $49.3 million for the nine months ended April 30, 2024, compared to $28.7 million for the same period in 2023, representing a 72.5% increase[194]. - Gross trade accounts receivable rose to $45.7 million at April 30, 2024, up from $37.7 million at July 31, 2023, indicating an increase of 21.2%[196]. - Deferred revenue decreased to $32.1 million at April 30, 2024, down from $35.3 million at July 31, 2023, reflecting a decline of 9.0%[197]. - Customer deposit liabilities at IDT Financial Services decreased to $83.7 million at April 30, 2024, from $86.5 million at July 31, 2023, a reduction of 3.2%[198]. - Capital expenditures were $13.6 million for the nine months ended April 30, 2024, compared to $16.0 million in the same period of 2023, a decrease of 15.0%[202]. - The company anticipates total capital expenditures of $17.5 million to $20 million for the twelve-month period ending April 30, 2025[202]. - Cash dividends paid in the nine months ended April 30, 2024, totaled $1.3 million, with a quarterly cash dividend of $0.05 per share initiated in March 2024[207]. - The value of debt and equity security holdings was $40.9 million at April 30, 2024, down from $58.5 million at July 31, 2023, representing a decrease of 30.2%[220]. Accounting and Compliance - The company plans to adopt new accounting standards related to income taxes and crypto assets for the fiscal year beginning August 1, 2025[132][133]. - The company is evaluating the impact of recently issued accounting standards on its consolidated financial statements[132][133][134]. - The company incurred legal fees of $3.2 million related to a class action lawsuit in the three months ended April 30, 2024, compared to $1.0 million in the same period of 2023[181]. - Other operating expenses net increased significantly by 396.5% to $2.6 million in the three months ended April 30, 2024, from $0.6 million in the same period of 2023[181]. Customer Metrics - Active POS terminals and payment processing accounts are key metrics for measuring NRS's customer base[142]. - Active POS terminals increased by 27% to 30.3 thousand from 23.9 thousand in the previous year[148]. - Payment processing accounts grew by 38% to 19.5 million from 14.1 million year-over-year[148]. - The number of seats served increased by 13% to 384, up from 340 in the same period of 2023[160]. - The net2phone segment represented 6.9% of total revenues in the three months ended April 30, 2024, compared to 6.2% in the same period of 2023[159]. - net2phone's subscription revenue excludes equipment revenue and revenue from a legacy SIP trunking offering in Brazil[143]. Strategic Outlook - The company is considering strategic investments and acquisitions to expand and enter new businesses, although there is no guarantee of successful opportunities meeting return-on-investment criteria[217].