IDT Corporation Reports Third Quarter Fiscal Year 2024 Results

Core Insights - IDT Corporation reported strong financial results for the third quarter of fiscal year 2024, with significant growth in recurring revenue and adjusted EBITDA across its key business segments [1][4][6]. Consolidated Results - Consolidated revenue reached approximately $299.6 million, a slight increase from $299.3 million year-over-year [6]. - Consolidated gross profit increased by 11% to a record $97.0 million, with a gross profit margin improvement of 310 basis points to 32.4% [6][7]. - Income from operations rose to $11.4 million from $10.4 million, while net income attributable to IDT decreased to $5.6 million from $6.9 million due to higher effective income tax rates and foreign currency transaction losses [6][7]. - Adjusted EBITDA increased to $20.6 million from $20.5 million [6]. National Retail Solutions (NRS) - NRS achieved a 45% year-over-year increase in recurring revenue, totaling $24.0 million, and added approximately 1,600 net active POS terminals, bringing the total to about 30,300 [6][10]. - The segment contributed 8.6% of IDT's consolidated revenue in 3Q24, up from 6.0% in 3Q23 [8]. - Total revenue for NRS increased by 42.3% to $25.7 million, driven by strong growth in Merchant Services and SaaS Fees [9][11]. net2phone - net2phone's subscription revenue grew by 17% to $20.0 million, with total revenue increasing by 12.4% to $20.7 million [6][13]. - The segment contributed 6.9% of IDT's consolidated revenue in 3Q24, up from 6.2% in 3Q23 [12]. - net2phone added approximately 9,000 net seats served, reaching a total of about 384,000 [6][14]. BOSS Money (Fintech Segment) - BOSS Money transactions increased by 44% year-over-year to 4.7 million, with revenue rising by 42% to $27.6 million [6][19]. - The Fintech segment contributed 10.5% of IDT's consolidated revenue in 3Q24, up from 7.3% in 3Q23 [15]. - This segment achieved positive adjusted EBITDA for the first time, reflecting strong growth in transactions and revenue [19]. Traditional Communications - Traditional Communications revenue totaled $221.7 million, a decrease of 8.0% from the previous year, primarily due to declines in BOSS Revolution Calling and IDT Global [20]. - The segment contributed 74.0% of IDT's consolidated revenue in 3Q24, down from 80.5% in 3Q23 [19]. Other Financial Metrics - As of April 30, 2024, IDT held $174.0 million in cash and equivalents, with total current assets of $408.5 million and current liabilities of $277.8 million [22]. - Net cash provided by operating activities during 3Q24 was $9.6 million, an increase from a net cash used of $6.9 million in 3Q23 [23].