IDT Corporation FY Conference Summary Company Overview - IDT Corporation is a global provider of fintech, cloud communications, and traditional communication solutions with a market cap of $1.5 billion, recently increased to approximately $1.6 billion, reflecting an 80% growth over the past year [1][4] - The company operates under four segments: national retail, BOSS money, net to phone, and traditional communications [1] Financial Performance - IDT is profitable with a solid balance sheet, holding $224 million in cash and no debt, allowing for strategic flexibility [2][5] - The company increased its dividend payout by 20% and repurchased $16 million worth of shares over the last twelve months [2] - For the third quarter of fiscal year 2025, IDT generated $120.4 million in adjusted EBITDA, with expectations to reach at least $126 million for the full fiscal year [30][31] Key Business Segments National Retail Solutions (NRS) - NRS operates the largest point of sale (POS) platform for independent retailers in the U.S., with 35,600 active terminals across approximately 31,000 stores [7][8] - The addressable market for NRS is estimated at 200,000 independent stores, indicating an 82% market opportunity remaining [9] - Recurring revenue for NRS increased 23% year-over-year to $29.4 million, with a 70% compound annual growth rate (CAGR) [11] - NRS's adjusted EBITDA for Q3 was $7.2 million, with an EBITDA margin of 23% [17] BOSS Money - BOSS Money is IDT's international money remittance business, generating over 90% of the fintech segment's revenue [18] - Digital transaction volume increased by 32% in Q3, while send volume rose by 40% [21] - Digital revenue for BOSS Money grew 31% to $24.5 million in Q3, with an annualized growth rate of 27% [21] - The fintech segment turned adjusted EBITDA positive last year, generating over $5 million in Q3 with a 13% margin [23] Net2Phone - Net2Phone provides cloud-based communication services, serving 415,000 seats across North and South America [25] - Subscription revenue increased by 7%, with adjusted EBITDA jumping 50% year-over-year to $3.2 million [26] - The company is focusing on migrating customers to premium plans and AI-powered features to drive growth [26] Traditional Communications Segment - This segment generated $867 million in revenue over the trailing twelve months, accounting for 71% of IDT's consolidated revenue [28] - Despite a revenue decrease of 5%, adjusted EBITDA increased by 30% to $19.3 million due to cost reductions and pricing execution [29] Strategic Initiatives and Future Outlook - IDT is exploring acquisition opportunities primarily in high-growth segments like NRS and BOSS Money, aiming to enhance scale and operational efficiencies [35][38] - The company is leveraging AI technology to improve customer service and operational efficiency across its segments [41][42] - Management is cautious about regulatory changes and cybersecurity risks, which could impact business operations [47] Conclusion - IDT Corporation is positioned for continued growth with a strong balance sheet, a diversified portfolio of high-margin businesses, and a strategic focus on leveraging technology and acquisitions to enhance its market position [31][35]

Core Viewpoint - IDT Corporation reported strong financial performance for the third quarter of fiscal 2025, with significant increases in revenues, gross profit, and earnings per share, outperforming the S&P 500 index during the same period [1][2][3]. Financial Performance Summary - Consolidated revenues increased by 0.8% year over year to $301.9 million from $299.6 million [2] - Gross profit rose by 15.4% to $111.9 million from $97 million, resulting in a gross margin increase of 470 basis points to a record 37.1% [2] - Income from operations surged by 132.6% to $26.6 million from $11.4 million, while adjusted EBITDA increased by 57% to $32.2 million from $20.6 million [2] Earnings Per Share - GAAP earnings per share (EPS) climbed by 290.9% to $0.86 from $0.22, and adjusted EPS surged by 136.8% to $0.90 from $0.38 [3] Segment Performance - National Retail Solutions (NRS) revenues increased by 21.1% to $31.1 million from $25.7 million [3] - Fintech revenues advanced by 22.5% to $38.6 million from $31.5 million [3] - net2phone revenues grew by 6.4% to $21.9 million from $20.7 million [3] - Traditional Communications segment saw a revenue decline of 5.2% to $210.2 million from $221.7 million [3] NRS Segment Insights - Recurring revenue at NRS rose by 22.9% to $29.4 million from $24 million, driven by a 37.3% increase in Merchant Services and a 32.8% gain in SaaS fees [4] - Advertising and Data revenue declined by 12.3% due to risk-mitigation steps related to a large programmatic partner [4] - NRS ended the quarter with 35,600 active POS terminals, up 17.6% from the previous year [4] Fintech Segment Insights - In the Fintech segment, transactions rose by 27% to $6 million from $4.7 million, with revenues growing by 24.7% to $34.4 million from $27.6 million [5] - Digital channel growth outpaced retail, with a 32% increase in transactions and a 40% surge in digital send volume [5] net2phone Performance - Subscription revenue for net2phone increased by 7.4% to $21.5 million from $20 million [6] - Income from operations rose by 188% to $1.4 million from $0.5 million [6] Traditional Communications Insights - Despite a revenue decline, gross profit increased by 5.3% to $43.4 million from $41.2 million [7] - Income from operations grew by 39.2% to $17.3 million from $12.5 million [7] Key Business Metrics - The gross margin of 37.1% was a record high, reflecting strong product mix and operational efficiencies [8] - Operating cash flow for the quarter was $75.7 million compared to $9.5 million in the year-ago period [8] Management Commentary - CEO Shmuel Jonas characterized the quarter as "solid," emphasizing broad-based bottom-line growth [9] - Management highlighted product innovation efforts at NRS and the potential of new AI-powered offerings in net2phone [10][11] Factors Influencing Performance - Growth in recurring revenue streams and expanding customer bases drove strong top-line and profitability gains [12] - Cost discipline was a key theme in net2phone and Traditional Communications, contributing to significant margin expansion [13] Guidance and Developments - Management reiterated its full-year fiscal 2025 guidance, aiming to double first-half adjusted EBITDA to reach $126 million [14] - IDT executed share repurchases and acquired a small technology company named Lucci [15] - A quarterly dividend of $0.06 per share was declared, payable on June 18, 2025 [16]

Financial Data and Key Metrics Changes - IDT reported a 133% year-over-year increase in consolidated income from operations, a 57% increase in consolidated adjusted EBITDA, and a 290% increase in EPS [6] - Gross profit increased 15% year-over-year, with a gross profit margin reaching a record high of 37.1% [12][13] - Cash and cash equivalents increased to $224 million from $171 million at the end of the previous quarter [19] Business Line Data and Key Metrics Changes - NRS saw a 23% year-over-year increase in recurring revenue, driven by a 37% increase in merchant services revenue and a 32% increase in SaaS fees [6] - The fintech segment, including Boss Money, generated over $5 million in adjusted EBITDA compared to $244,000 in the same quarter last year [8] - Traditional communications segment income from operations and adjusted EBITDA both increased over 30% year-over-year [9] Market Data and Key Metrics Changes - Subscription revenue for Netafone increased 7% to $21.5 million, with a higher constant currency increase of 11% [18] - Digital remittance transactions through Boss Money constituted over 80% of total remittances, with a 27% increase in transactions and a 25% increase in revenue [7][16] - Advertising and data revenue decreased by 12% year-over-year, largely due to a strategic decision to limit sales to a major client [14] Company Strategy and Development Direction - The company is focusing on developing new offerings that leverage the NRS platform to help independent retailers compete with larger chains [7] - IDT is pursuing next-generation growth initiatives while maintaining operational efficiency in its existing segments [10] - The company is exploring acquisitions but emphasizes the importance of paying the right price to extract value [37] Management's Comments on Operating Environment and Future Outlook - Management noted that the third quarter was slightly softer than the second quarter due to seasonal factors, but overall performance was strong [11] - The company remains optimistic about future growth, particularly in the fintech and SaaS segments, despite some challenges in the advertising revenue [12][14] - Management confirmed guidance for the full fiscal year, expecting to double the adjusted EBITDA from the first half [21] Other Important Information - The company has been actively repurchasing shares and is considering further capital allocation strategies based on acquisition opportunities [40][42] - IDT has implemented AI agents in its Netafone segment, which are already showing benefits in efficiency [9] Q&A Session Summary Question: Insights on NRS growth and sales strategy - Management indicated that increased efforts in sales and onboarding new retailers contributed to strong revenue despite fewer terminal additions [26][28] Question: AI agent customer demographics - Most customers for the AI agent are existing Netafone customers, with plans to expand to new clients in the future [30] Question: Future acquisitions and technology integration - Management confirmed ongoing interest in acquisitions and highlighted the recent acquisition of a restaurant technology company [38] Question: Stock repurchase strategy - Management stated that stock repurchases are made with excess cash, not borrowed funds, and will continue based on market conditions [43] Question: Advertising revenue outlook post-partner reduction - Management noted that while a significant partner was reduced, other advertising relationships are growing, and they expect to fill the gap [62] Question: Future EBITDA margins for NetSuite phone - Management expressed uncertainty about future margins but indicated that new initiatives could lead to substantial improvements over time [66] Question: Investment in customer acquisition for Boss Money - Management acknowledged the potential for increased investment in customer acquisition to capture market share from legacy players [70]

Financial Data and Key Metrics Changes - The company reported a 133% year-over-year increase in consolidated income from operations, a 57% increase in consolidated adjusted EBITDA, and a 290% increase in EPS [4] - Gross profit increased 15% year-over-year, with a gross profit margin reaching a record high of 37.1% [11][12] - Adjusted EBITDA margins reached 15% in the third quarter [7] Business Line Data and Key Metrics Changes - At NRS, recurring revenue increased 23% year-over-year, driven by a 37% revenue increase from merchant services and a 32.3% increase in SaaS fees, despite a 12% decrease in advertising and data revenue [4] - The fintech segment, including Boss Money, generated over $5 million in adjusted EBITDA compared to $244,000 in the year-ago quarter [6] - Traditional communications segment income from operations and adjusted EBITDA both jumped over 30% year-over-year [8] Market Data and Key Metrics Changes - Subscription revenue increased 7% to $21.5 million in the quarter, with a higher constant currency increase of 11% [16] - The remittance platform, Boss Money, saw a 27% increase in transactions and a 25% increase in revenue [5] Company Strategy and Development Direction - The company is focusing on developing new offerings that leverage the NRS platform to help retailers compete with larger chains, particularly in online ordering and delivery [5] - The company is pursuing next-generation growth initiatives and is in the budgeting process for fiscal 2026 [9][19] - The company is exploring acquisitions but emphasizes the importance of paying the right price to extract value [29][33] Management's Comments on Operating Environment and Future Outlook - Management noted that the third quarter was slightly softer than the second quarter due to expected seasonal factors, but they remain pleased with overall performance [10] - The company expects to meet its adjusted EBITDA goal of $126 million for the full year [19] - Management expressed confidence in the long-term profitability of traditional communications as a cash generator [17] Other Important Information - The company set up a bad debt expense provision of $1.4 million related to amounts due from a client [13] - The company repurchased $6 million of employee-owned shares to satisfy tax obligations triggered by vesting [18] Q&A Session Summary Question: Insights on NRS growth and sales strategy - Management indicated that increased efforts in bringing new and existing retailers onto the merchant processing platform contributed to strong numbers this quarter [22] Question: Details on AI agent customer base - Most customers for the AI agent are existing NetSuite phone customers, with plans to expand to new customers in the future [24] Question: Future M&A activity - Management confirmed they are looking at acquisitions but will only pursue those that offer good value [29] Question: Impact of reduced advertising revenue from a partner - Management noted that while a significant partner's contribution has decreased, other advertising revenues have been growing nicely, and they are close to covering the decline [50][51] Question: Future EBITDA margins for NetSuite phone - Management expressed uncertainty but indicated that new initiatives could lead to substantial margin improvements over time [54] Question: Investment in customer acquisition for Boss Money - Management acknowledged the potential for increased investment in customer acquisition to capture market share from legacy players [57]

Core Insights - IDT Corporation reported strong financial results for the third quarter of fiscal year 2025, with significant year-over-year increases in gross profit, income from operations, and earnings per share [1][4][30]. Financial Performance - Gross profit increased by 15% year-over-year to $112 million, achieving a record gross profit margin of 37.1% [1][3]. - Income from operations rose by 133% to $27 million, while adjusted EBITDA increased by 57% to $32 million [1][3]. - GAAP EPS increased to $0.86 from $0.22, and non-GAAP EPS rose to $0.90 from $0.38 [1][3]. Segment Performance National Retail Solutions (NRS) - Recurring revenue grew by 23% to $29.4 million, driven by a 37% increase in Merchant Services revenue and a 33% rise in SaaS fees [2][5]. - Income from operations and adjusted EBITDA both increased by 29% year-over-year [2][5]. BOSS Money / Fintech Segment - BOSS Money transactions increased by 27% to 6 million, with revenue rising by 25% to $34.4 million [2][7]. - The fintech segment's gross profit grew by 31% to $22.6 million, and income from operations reached $4.3 million [2][7]. net2phone - Subscription revenue increased by 7% to $21.5 million, with income from operations surging by 188% to $1.4 million [3][26]. - Adjusted EBITDA for net2phone rose by 50% to $3.2 million [3][26]. Traditional Communications - Gross profit increased by 5% to $43.4 million, with income from operations rising by 39% to $17.3 million [3][9]. - Adjusted EBITDA for this segment grew by 30% to $19.3 million [3][9]. Cash Flow and Capital Expenditures - Net cash provided by operating activities was $75.7 million in 3Q25, compared to $9.5 million in 3Q24 [30]. - Capital expenditures increased by 14% to $5.4 million [3][31]. Future Outlook - The company is focusing on developing new offerings to enhance the competitiveness of independent retailers against larger chains [6]. - BOSS Money is working on initiatives to drive long-term growth and reduce cross-border transaction friction [7].

NEWARK, NJ, May 30, 2025 (GLOBE NEWSWIRE) -- IDT Corporation (NYSE: IDT), a global provider of fintech, cloud communications, and traditional communications solutions, has scheduled its report of financial and operational results for the third quarter fiscal year 2025 (the three months ended April 30, 2025) on Thursday, June 5, 2025. IDT’s earnings release will be issued and posted on the IDT investor relations website (https://www.idt.net/investors-and-media) at approximately 4:15 PM Eastern. IDT will host ...

IDT Corporation (NYSE:IDT) Q2 2025 Earnings Conference Call March 6, 2025 5:30 PM ET Company Participants Bill Ulrey - Investor Relations Samuel Jonas - Chief Executive Officer Marcelo Fischer - Chief Financial Officer Conference Call Participants William Vaughan - Corient Operator Good evening, and welcome to the IDT Corporation's Second Quarter Fiscal Year 2025 Earnings Call. During management's remarks, all participants will be in listen-only mode. [Operator Instructions]. I will now turn the call over t ...