IDT Corporation (NYSE: IDT), a global provider of fintech, cloud
communications, and traditional communications services, today
reported results for the first quarter of fiscal year 2024, the
three months ended October 31, 2023.
HIGHLIGHTS
(Throughout this release, unless otherwise
noted, results are for the first quarter of fiscal year 2024 (1Q24)
and are compared to the first quarter of fiscal year 2023 (1Q23).
All earnings per share (EPS) and other ‘per share’ results are per
diluted share.)
- BOSS Money, the principal business
in our Fintech segment, increased remittance volume by 41% to 4.05
million transactions during 1Q24 while revenue increased 38%
to $24.2 million;
- National Retail Solutions (NRS)
added approximately 1,500 net active point-of-sale (POS) terminals
during 1Q24 to reach approximately 27,200 as of October 31st. NRS
recurring revenue* increased 25% to $22.4 million;
- net2phone added approximately
12,000 net seats served during 1Q24 to reach approximately 364,000
as of October 31st. Subscription revenue* increased 19% to $18.5
million;
- Consolidated revenue decreased 6%
to $301 million from $322 million;
- Consolidated gross profit**
increased 6% to a record high $94 million from $89 million, and the
consolidated gross profit margin increased 370 basis points to
31.4% from 27.7%;
- Consolidated income from operations
decreased 15% to $17.2 million from $20.2 million;
- Net income attributable to IDT
decreased 30% to $7.7 million from $11.0 million;
- Consolidated Adjusted EBITDA***
decreased 8% to $22.3 million from $24.3 million;
- EPS decreased to $0.30 from $0.43
and Non-GAAP EPS*** decreased to $0.32 from $0.43;
- During 1Q24, IDT repurchased
125,470 shares of its Class B common stock for $2.8 million.
(See ‘Notes’ later in this release for
supplemental information on asterisked metrics).
REMARKS BY SHMUEL
JONAS, CEO
“Our three primary high-growth, high-margin
businesses delivered strong revenue growth in the first quarter,
while the businesses in our Traditional Communications segment
performed as expected.
In the first quarter, the ongoing growth of BOSS
Money, NRS, and net2phone drove a 370 basis point year-over-year
increase in gross profit margin and record gross profit. They are
steadily becoming more significant contributors to our top and
bottom lines, while the cash generation of our paid-minute
businesses has been relatively resilient.
“BOSS Money continued to grow at a rapid clip,
helped by the accelerating expansion of our retail money transfer
channel. Retail money transfer channel revenue increased by 55%
year-over-year, while digital channel revenue – for transactions
initiated on the BOSS Money and BOSS Revolution Calling apps –
increased 31% year-over-year. We continue to improve the user
experience for both retailer agents and digital customers, and we
see that investment paying off in BOSS Money’s robust topline
growth. Much of the investment we’ve made in money transfer to date
is in the expectation that we are only in the early innings of our
money transfer growth. As we continue to expand, we expect to
capture more of the benefit of our growth in our bottom line
profitability.
“NRS continued to expand its network and upgrade
existing accounts, helping to drive strong increases in Merchant
Services and SaaS Fee revenues, while Advertising & Data
revenue increased sequentially propelled by seasonal tailwinds and
the gradual recovery of advertising demand in the digital
out-of-home advertising space – a trend which has accelerated since
the quarter close. NRS’ income from operations was a record $5.5
million in the first quarter. We’re now in the process of
introducing some of the new POS formats that I’ve mentioned
previously, and I’m excited about their potential to help us drive
long-term expansion.
“net2phone delivered steady sequential customer
base and topline growth, while its unit economics are strengthening
as the business scales and our higher ARPU, higher margin, CCaaS
offerings gradually become a more significant part of the business.
net2phone generated positive Adjusted EBITDA of $1.4 million and
was near cash-flow positive. Now in the second quarter, our Beta
rollout of net2phone AI is underway, and it has been very well
received by customers. We are very optimistic that net2phone AI and
net2phone’s forthcoming premium plans will help to drive meaningful
ARPU and margin expansion.
“We’re working very hard to innovate exciting
new offerings, features and functionalities– and not just in our
growth businesses. At BOSS Revolution Calling, we’ve redesigned the
look and feel of our popular calling app and added a bunch of new
products and features. We have also introduced advertising
placements into the app, and we have already begun to generate some
nice revenue from it as a result. We also continue to focus on
streamlining overhead and wringing significant costs out of our
operations -- especially in our Traditional Communications segment.
This effort will help preserve the cash generation of our
paid-minute businesses despite their continued, expected topline
declines in the quarters ahead. It also will allow us to continue
investing in innovative new products and promising initiatives in
our existing growth businesses.
“We also returned value directly to our
stockholders in the first quarter, repurchasing 125,470 shares of
our Class B common stock for $2.8 million. Going forward, we will
continue to purchase shares opportunistically.
“We are very well positioned as we head into the
second quarter of our fiscal year 2024. To wrap up, I want to wish
our employees, stockholders and their families a very joyous
holiday season, and to thank each of you for everything you do for
the IDT family.”
CONSOLIDATED RESULTS
IDT Consolidated Results($ in millions, except
gross profit margin and EPS) |
|
|
|
1 |
Q24 |
|
|
4 |
Q23 |
|
|
3 |
Q23 |
|
|
2 |
Q23 |
|
|
1 |
Q23 |
|
|
1Q24-1Q23 Variance |
|
Revenue |
|
$ |
301.2 |
|
|
$ |
303.8 |
|
|
$ |
299.3 |
|
|
$ |
313.9 |
|
|
$ |
321.8 |
|
|
|
(6.4 |
|
)% |
Gross Profit |
|
$ |
94.4 |
|
|
$ |
91.1 |
|
|
$ |
87.9 |
|
|
$ |
90.4 |
|
|
$ |
89.1 |
|
|
|
+5.9 |
% |
|
Gross Profit Margin |
|
|
31.4 |
% |
|
|
30.0 |
% |
|
|
29.4 |
% |
|
|
28.8 |
% |
|
|
27.7 |
% |
|
|
+370 BP |
|
SG&A |
|
$ |
77.2 |
|
|
$ |
78.2 |
|
|
$ |
72.6 |
|
|
$ |
72.1 |
|
|
$ |
69.6 |
|
|
|
+10.9 |
% |
|
Income from operations |
|
$ |
17.2 |
|
|
$ |
12.0 |
|
|
$ |
10.4 |
|
|
$ |
18.2 |
|
|
$ |
20.2 |
|
|
|
(15.1 |
|
)% |
Adjusted EBITDA |
|
$ |
22.3 |
|
|
$ |
18.1 |
|
|
$ |
20.5 |
|
|
$ |
23.4 |
|
|
$ |
24.3 |
|
|
|
(8.5 |
|
)% |
Net income attributable to
IDT |
|
$ |
7.7 |
|
|
$ |
8.0 |
|
|
$ |
6.9 |
|
|
$ |
14.6 |
|
|
$ |
11.0 |
|
|
|
(30.4 |
|
)% |
EPS (diluted) |
|
$ |
0.30 |
|
|
$ |
0.31 |
|
|
$ |
0.27 |
|
|
$ |
0.57 |
|
|
$ |
0.43 |
|
|
$ |
(0.13 |
|
) |
Non-GAAP EPS (diluted) |
|
$ |
0.32 |
|
|
$ |
0.36 |
|
|
$ |
0.46 |
|
|
$ |
0.62 |
|
|
$ |
0.43 |
|
|
$ |
(0.11 |
|
) |
RESULTS BY SEGMENT
National Retail Solutions (NRS)
During 1Q24 and 1Q23, the NRS segment
contributed 8.0% and 6.0% of IDT’s consolidated revenue,
respectively.
National Retail Solutions (NRS) (Terminals and
accounts at end of period. $ in millions, except for revenue per
terminal) |
|
|
|
1 |
Q24 |
|
|
4 |
Q23 |
|
|
3 |
Q23 |
|
|
2 |
Q23 |
|
|
1 |
Q23 |
|
|
1Q24-1Q23 Variance |
|
Terminals and payment
processing accounts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active POS terminals |
|
|
27,200 |
|
|
|
25,700 |
|
|
|
23,900 |
|
|
|
22,400 |
|
|
|
20,800 |
|
|
|
|
+31 |
% |
|
Payment processing
accounts |
|
|
17,100 |
|
|
|
15,800 |
|
|
|
14,100 |
|
|
|
12,500 |
|
|
|
11,300 |
|
|
|
|
+51 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring
revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merchant
Services and other |
|
$ |
11.4 |
|
|
$ |
10.3 |
|
|
$ |
8.7 |
|
|
$ |
7.4 |
|
|
$ |
6.4 |
|
|
|
|
+78 |
% |
|
Advertising
and Data |
|
$ |
8.5 |
|
|
$ |
6.2 |
|
|
$ |
5.8 |
|
|
$ |
9.0 |
|
|
$ |
9.7 |
|
|
|
|
(13 |
|
)% |
SaaS
Fees |
|
$ |
2.5 |
|
|
$ |
2.3 |
|
|
$ |
2.1 |
|
|
$ |
1.9 |
|
|
$ |
1.8 |
|
|
|
|
+42 |
% |
|
Total recurring
revenue |
|
$ |
22.4 |
|
|
$ |
18.8 |
|
|
$ |
16.5 |
|
|
$ |
18.3 |
|
|
$ |
17.8 |
|
|
|
|
+25 |
% |
|
POS Terminal
Sales |
|
$ |
1.6 |
|
|
$ |
1.1 |
|
|
$ |
1.6 |
|
|
$ |
1.5 |
|
|
$ |
1.5 |
|
|
|
|
+10 |
% |
|
Total
revenue |
|
$ |
24.0 |
|
|
$ |
19.9 |
|
|
$ |
18.1 |
|
|
$ |
19.8 |
|
|
$ |
19.3 |
|
|
|
|
+24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monthly average recurring
revenue per terminal* |
|
$ |
282 |
|
|
$ |
253 |
|
|
$ |
237 |
|
|
$ |
283 |
|
|
$ |
296 |
|
|
|
|
(5 |
|
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
20.9 |
|
|
$ |
17.4 |
|
|
$ |
15.1 |
|
|
$ |
17.2 |
|
|
$ |
17.0 |
|
|
|
|
+23 |
% |
|
SG&A |
|
$ |
15.4 |
|
|
$ |
15.6 |
|
|
$ |
13.0 |
|
|
$ |
11.9 |
|
|
$ |
11.8 |
|
|
|
|
+31 |
% |
|
Income from operations |
|
$ |
5.5 |
|
|
$ |
1.7 |
|
|
$ |
2.1 |
|
|
$ |
5.4 |
|
|
$ |
5.2 |
|
|
|
+$ |
0.3 |
|
|
Adjusted EBITDA |
|
$ |
6.2 |
|
|
$ |
2.4 |
|
|
$ |
2.7 |
|
|
$ |
6.0 |
|
|
$ |
5.7 |
|
|
|
+$ |
0.5 |
|
|
Take-Aways:
- During 1Q24, NRS added
approximately 1,500 net active terminals to reach approximately
27,200 and added approximately 1,300 net payment processing
accounts to reach approximately 17,100.
- The strong sequential increase in
monthly average recurring revenue per terminal was driven primarily
by the sequential increase in Advertising and Data revenue, which
benefitted from seasonal tailwinds and strengthening digital
out-of-home advertising demand.
net2phone
During 1Q24 and 1Q23, the net2phone segment
contributed 6.6% and 5.3% of IDT’s consolidated revenue,
respectively.
net2phone (Seats in thousands at end of
period. $ in millions) |
|
|
|
1 |
Q24 |
|
|
4 |
Q23 |
|
|
3 |
Q23 |
|
|
2 |
Q23 |
|
|
1 |
Q23 |
|
|
1Q24-1Q23 Variance |
|
Seats |
|
|
364 |
|
|
|
352 |
|
|
|
340 |
|
|
|
327 |
|
|
|
309 |
|
|
|
|
+18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription revenue |
|
$ |
18.5 |
|
|
$ |
17.9 |
|
|
$ |
17.1 |
|
|
$ |
16.3 |
|
|
$ |
15.5 |
|
|
|
|
+19 |
% |
|
Other revenue |
|
$ |
1.4 |
|
|
$ |
1.4 |
|
|
$ |
1.3 |
|
|
$ |
1.5 |
|
|
$ |
1.4 |
|
|
|
|
+2 |
% |
|
Total
Revenue |
|
$ |
19.9 |
|
|
$ |
19.3 |
|
|
$ |
18.4 |
|
|
$ |
17.8 |
|
|
$ |
17.0 |
|
|
|
|
+18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
16.1 |
|
|
$ |
15.5 |
|
|
$ |
14.8 |
|
|
$ |
14.2 |
|
|
$ |
13.6 |
|
|
|
|
+18 |
% |
|
SG&A |
|
$ |
16.1 |
|
|
$ |
16.1 |
|
|
$ |
15.2 |
|
|
$ |
14.8 |
|
|
$ |
14.7 |
|
|
|
|
+10 |
% |
|
Loss from operations |
|
$ |
- |
|
|
$ |
(0.7 |
) |
|
$ |
(0.4 |
) |
|
$ |
(0.6 |
) |
|
$ |
(1.1 |
) |
|
|
+$ |
1.0 |
|
|
Adjusted EBITDA |
|
$ |
1.4 |
|
|
$ |
0.9 |
|
|
$ |
1.0 |
|
|
$ |
0.8 |
|
|
$ |
0.3 |
|
|
|
+$ |
1.1 |
|
|
Take-Aways:
- net2phone’s year-over-year increase
in seats served was powered by continued expansion in key markets
led by the U.S., Brazil, and Mexico.
- In 1Q24, subscription revenue
increased 19% year-over-year driven by the 18% increase in seats
served augmented by an increase in average revenue per seat
served.
- CCaaS seats served increased 31%
year-over-year to approximately 10,000.
Fintech
During 1Q24 and 1Q23, the Fintech segment
contributed 8.8% and 6.2% of IDT’s consolidated revenue,
respectively.
Fintech (Transactions in thousands. $ in millions
except for revenue per transaction) |
|
|
|
1 |
Q24 |
|
|
4 |
Q23 |
|
|
3 |
Q23 |
|
|
2 |
Q23 |
|
|
1 |
Q23 |
|
|
1Q24-1Q23 Variance |
|
BOSS Money Transactions |
|
|
4,045 |
|
|
|
3,793 |
|
|
|
3,274 |
|
|
|
3,053 |
|
|
|
2,862 |
|
|
|
+41 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fintech
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOSS Money |
|
$ |
24.2 |
|
|
$ |
22.3 |
|
|
$ |
19.4 |
|
|
$ |
17.6 |
|
|
$ |
17.6 |
|
|
|
+38 |
% |
|
Other |
|
$ |
2.3 |
|
|
$ |
2.3 |
|
|
$ |
2.3 |
|
|
$ |
2.7 |
|
|
$ |
2.3 |
|
|
|
- |
|
|
Total
Revenue |
|
$ |
26.6 |
|
|
$ |
24.6 |
|
|
$ |
21.8 |
|
|
$ |
20.3 |
|
|
$ |
19.9 |
|
|
|
+34 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenue per
transaction* |
|
$ |
5.99 |
|
|
$ |
5.87 |
|
|
$ |
5.94 |
|
|
$ |
5.78 |
|
|
$ |
6.13 |
|
|
$ |
(0.14 |
|
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
14.8 |
|
|
$ |
13.6 |
|
|
$ |
12.6 |
|
|
$ |
12.3 |
|
|
$ |
11.6 |
|
|
|
+28 |
% |
|
SG&A |
|
$ |
16.2 |
|
|
$ |
15.5 |
|
|
$ |
13.9 |
|
|
$ |
13.4 |
|
|
$ |
11.7 |
|
|
|
+39 |
% |
|
(Loss) income from
operations |
|
$ |
(1.4 |
) |
|
$ |
(1.9 |
) |
|
$ |
(1.3 |
) |
|
$ |
(0.8 |
) |
|
$ |
1.5 |
|
|
$ |
(2.9 |
|
) |
Adjusted EBITDA |
|
$ |
(0.7 |
) |
|
$ |
(1.2 |
) |
|
$ |
(0.6 |
) |
|
$ |
(0.5 |
) |
|
$ |
0.5 |
|
|
$ |
(1.2 |
|
) |
Take-Aways:
- The 41% year-over-year increase in
BOSS Money transactions included a 54% increase in retail
transactions driven by expansion of the BOSS Money retail agent
network and enhancements to the retailer portal. Digital
transactions increased 38% compared to the year-ago quarter.
- BOSS Money revenue increased 38%
driven primarily by cross-marketing within the larger BOSS
ecosystem and expansion of the retail agent network.
Traditional Communications
During 1Q24 and 1Q23, the Traditional
Communications segment contributed 76.6% and 82.5% of IDT’s
consolidated revenue, respectively.
Traditional Communications($ in
millions) |
|
|
|
1 |
Q24 |
|
|
4 |
Q23 |
|
|
3 |
Q23 |
|
|
2 |
Q23 |
|
|
1 |
Q23 |
|
|
1Q24-1Q23 Variance |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDT Digital Payments |
|
$ |
100.0 |
|
|
$ |
100.8 |
|
|
$ |
101.0 |
|
|
$ |
106.1 |
|
|
$ |
109.0 |
|
|
|
(8 |
)% |
BOSS Revolution Calling |
|
$ |
71.2 |
|
|
$ |
75.4 |
|
|
$ |
77.6 |
|
|
$ |
82.8 |
|
|
$ |
86.3 |
|
|
|
(17 |
)% |
IDT Global |
|
$ |
52.0 |
|
|
$ |
55.6 |
|
|
$ |
54.5 |
|
|
$ |
58.6 |
|
|
$ |
61.6 |
|
|
|
(16 |
)% |
Other |
|
$ |
7.5 |
|
|
$ |
8.2 |
|
|
$ |
7.9 |
|
|
$ |
8.4 |
|
|
$ |
8.8 |
|
|
|
(15 |
)% |
Total
Revenue |
|
$ |
230.7 |
|
|
$ |
240.0 |
|
|
$ |
241.0 |
|
|
$ |
256.0 |
|
|
$ |
265.7 |
|
|
|
(13 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
42.6 |
|
|
$ |
44.7 |
|
|
$ |
45.4 |
|
|
$ |
46.7 |
|
|
$ |
46.9 |
|
|
|
(9 |
)% |
SG&A |
|
$ |
26.6 |
|
|
$ |
28.4 |
|
|
$ |
28.2 |
|
|
$ |
29.5 |
|
|
$ |
29.6 |
|
|
|
(10 |
)% |
Income from operations |
|
$ |
15.4 |
|
|
$ |
14.1 |
|
|
$ |
12.9 |
|
|
$ |
17.0 |
|
|
$ |
17.3 |
|
|
|
(11 |
)% |
Adjusted EBITDA |
|
$ |
18.1 |
|
|
$ |
18.6 |
|
|
$ |
19.7 |
|
|
$ |
19.6 |
|
|
$ |
19.7 |
|
|
|
(8 |
)% |
Take-Aways:
- As in recent prior quarters, the
year-over-year decrease in IDT Digital Payments’ revenue was due to
the deterioration of a key international mobile top-up corridor. By
1Q24, however, that corridor was no longer a significant factor,
helping to stabilize revenue sequentially.
- Income from operations increased
sequentially for the second consecutive quarter, helped by strong
contributions from BOSS Revolution Calling and IDT Global.
Nevertheless, the industry-wide decline in the paid-minute calling
markets will continue to impact revenues and cash flows for this
segment in the coming quarters.
OTHER FINANCIAL STATEMENTS HIGHLIGHTS
Consolidated results for all periods presented
include corporate overhead. Corporate G&A expense increased to
$2.8 million in 1Q24 from $1.9 million in 1Q23 reflecting an
increase in audit and accounting fees and higher employee
compensation expense.
As of October 31, 2023, IDT held $159.7 million
in cash, cash equivalents, debt securities, and current equity
investments. Current assets totaled $382.2 million and current
liabilities totaled $275.9 million. IDT had no outstanding debt at
the fiscal quarter’s end.
Net cash provided by operating activities during
1Q24 was $14.8 million – a decrease from $18.2 million during 1Q23.
Exclusive of changes in customer deposit balances at IDT’s
Gibraltar-based bank, net cash provided by operating activities
increased to $17.1 million from $15.3 million during 1Q23. This
increase was primarily due to the timing of operating cash receipts
and payments.
Capital expenditures decreased to $4.3 million
in 1Q24 from $5.2 million in 1Q23.
IDT EARNINGS ANNOUNCEMENT AND
SUPPLEMENTAL INFORMATION
This release is available for download in the
“Investors & Media” section of the IDT Corporation website
(https://www.idt.net/investors-and-media) and has been filed on a
current report (Form 8-K) with the SEC.
IDT will host an earnings conference call
beginning at 5:30 PM Eastern today with management’s discussion of
results followed by Q&A with investors. To listen to the call
and participate in the Q&A, dial 1-888-506-0062 (toll-free from
the US) or 1-973-528-0011 (international) and request the IDT
Corporation call (participant access code: 637334).
A replay of the conference call will be
available approximately three hours after the call concludes
through December 18, 2023. To access the call replay, dial
1-877-481-4010 (toll-free from the US) or 1-919-882-2331
(international) and provide this replay passcode: 49441. The replay
will also be accessible via streaming audio at the IDT investor
relations website.
NOTES
*See ‘Explanation of Key Performance Metrics’ at
the end of this release.
** Beginning in 1Q24, IDT is including
depreciation and amortization expense in direct cost of revenues or
SG&A expense, as appropriate, and reporting gross profit and
gross margin in accordance with GAAP. Results for all prior periods
presented have been reclassified to conform to the current period’s
presentation.
***Adjusted EBITDA and Non-GAAP EPS are Non-GAAP
financial measures intended to provide useful information that
supplements IDT’s or the relevant segment’s results in accordance
with GAAP. Please refer to the Reconciliation of Non-GAAP Financial
Measures later in this release for an explanation of these terms
and their respective reconciliations to the most directly
comparable GAAP measures.
ABOUT IDT CORPORATION
IDT Corporation (NYSE: IDT) is a global provider
of fintech and communications services through a portfolio of
synergistic businesses: National Retail Solutions (NRS), through
its point-of-sale (POS) platform, enables independent retailers to
operate more effectively while providing advertisers and marketers
with unprecedented reach into underserved consumer markets;
net2phone provides enterprises and organizations with intelligently
integrated cloud communications and contact center services across
channels and devices; IDT’s fintech and neo-banking services
include BOSS Money, a popular international remittance business, as
well as other services that make saving, spending, and sharing
money easy and secure; IDT Digital Payments and BOSS Revolution
Calling make sharing prepaid products and services and speaking
with friends and family around the world convenient and reliable;
and, IDT Global and IDT Express enable communications services to
provision and manage international voice and SMS messaging.
All statements above 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 judgment of what may happen in the future,
actual results may differ materially from the results expressed or
implied by these statements due to numerous important factors. Our
filings with the SEC provide detailed information on such
statements and risks and should be consulted along with this
release. To the extent permitted under applicable law, IDT assumes
no obligation to update any forward-looking statements.
CONTACT
IDT Corporation Investor RelationsBill Ulrey
william.ulrey@idt.net973-438-3838
IDT CORPORATION
CONSOLIDATED BALANCE SHEETS
|
|
October 31,2023 |
|
|
July 31,2023 |
|
|
|
(Unaudited) |
|
|
|
|
|
|
(in thousands, except per share data) |
|
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash
equivalents |
|
$ |
121,668 |
|
|
$ |
103,637 |
|
Restricted cash and cash
equivalents |
|
|
86,785 |
|
|
|
95,186 |
|
Debt
securities |
|
|
33,242 |
|
|
|
42,414 |
|
Equity
investments |
|
|
4,761 |
|
|
|
6,198 |
|
Trade accounts receivable, net
of allowance for credit losses of $5,909 at October 31, 2023 and
allowance for doubtful accounts of $5,642 at July 31,
2023 |
|
|
35,328 |
|
|
|
32,092 |
|
Settlement assets, net of
reserve of $1,469 at October 31, 2023 and $1,143 at July 31,
2023 |
|
|
18,122 |
|
|
|
32,396 |
|
Disbursement
prefunding |
|
|
35,733 |
|
|
|
30,113 |
|
Prepaid
expenses |
|
|
19,502 |
|
|
|
16,638 |
|
Other current
assets |
|
|
27,034 |
|
|
|
28,394 |
|
|
|
|
|
|
|
|
|
|
Total current
assets |
|
|
382,175 |
|
|
|
387,068 |
|
Property, plant, and
equipment, net |
|
|
38,802 |
|
|
|
38,655 |
|
Goodwill |
|
|
26,311 |
|
|
|
26,457 |
|
Other intangibles,
net |
|
|
7,215 |
|
|
|
8,196 |
|
Equity
investments |
|
|
8,150 |
|
|
|
9,874 |
|
Operating lease right-of-use
assets |
|
|
4,910 |
|
|
|
5,540 |
|
Deferred income tax assets,
net |
|
|
20,539 |
|
|
|
24,101 |
|
Other
assets |
|
|
10,944 |
|
|
|
10,919 |
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
499,046 |
|
|
$ |
510,810 |
|
|
|
|
|
|
|
|
|
|
Liabilities,
redeemable noncontrolling interest, and equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Trade accounts
payable |
|
$ |
24,469 |
|
|
$ |
22,231 |
|
Accrued
expenses |
|
|
100,107 |
|
|
|
110,796 |
|
Deferred
revenue |
|
|
34,042 |
|
|
|
35,343 |
|
Customer
deposits |
|
|
79,541 |
|
|
|
86,481 |
|
Settlement
liabilities |
|
|
19,268 |
|
|
|
21,495 |
|
Other current
liabilities |
|
|
18,507 |
|
|
|
17,761 |
|
|
|
|
|
|
|
|
|
|
Total current
liabilities |
|
|
275,934 |
|
|
|
294,107 |
|
Operating lease
liabilities |
|
|
2,346 |
|
|
|
2,881 |
|
Other
liabilities |
|
|
3,220 |
|
|
|
3,354 |
|
|
|
|
|
|
|
|
|
|
Total
liabilities |
|
|
281,500 |
|
|
|
300,342 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
Redeemable noncontrolling
interest |
|
|
10,579 |
|
|
|
10,472 |
|
Equity: |
|
|
|
|
|
|
|
|
IDT Corporation stockholders’
equity: |
|
|
|
|
|
|
|
|
Preferred stock, $.01 par
value; authorized shares—10,000; no shares
issued |
|
|
— |
|
|
|
— |
|
Class A common stock, $.01 par
value; authorized shares—35,000; 3,272 shares issued and 1,574
shares outstanding at October 31, 2023 and July 31,
2023 |
|
|
33 |
|
|
|
33 |
|
Class B common stock, $.01 par
value; authorized shares—200,000; 27,865 and 27,851 shares issued
and 23,586 and 23,699 shares outstanding at October 31, 2023 and
July 31, 2023,
respectively |
|
|
279 |
|
|
|
279 |
|
Additional paid-in
capital |
|
|
302,351 |
|
|
|
301,408 |
|
Treasury stock, at cost,
consisting of 1,698 and 1,698 shares of Class A common stock and
4,279 and 4,152 shares of Class B common stock at October 31, 2023
and July 31, 2023,
respectively |
|
|
(118,312 |
) |
|
|
(115,461 |
) |
Accumulated other
comprehensive
loss |
|
|
(16,627 |
) |
|
|
(17,192 |
) |
Retained
earnings |
|
|
32,321 |
|
|
|
24,662 |
|
|
|
|
|
|
|
|
|
|
Total IDT Corporation
stockholders’
equity |
|
|
200,045 |
|
|
|
193,729 |
|
Noncontrolling
interests |
|
|
6,922 |
|
|
|
6,267 |
|
|
|
|
|
|
|
|
|
|
Total
equity |
|
|
206,967 |
|
|
|
199,996 |
|
|
|
|
|
|
|
|
|
|
Total liabilities, redeemable
noncontrolling interest, and
equity |
|
$ |
499,046 |
|
|
$ |
510,810 |
|
IDT CORPORATION
CONSOLIDATED STATEMENTS OF
INCOME (Unaudited)
|
|
Three Months EndedOctober
31, |
|
|
|
2023 |
|
|
2022 |
|
|
|
(in thousands, except per share data) |
|
|
|
|
|
Revenues |
|
$ |
301,205 |
|
|
$ |
321,816 |
|
Direct cost of
revenues |
|
|
206,777 |
|
|
|
232,670 |
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
|
94,428 |
|
|
|
89,146 |
|
Operating expenses
(gains): |
|
|
|
|
|
|
|
|
Selling, general and
administrative
(i) |
|
|
77,222 |
|
|
|
69,620 |
|
Severance |
|
|
525 |
|
|
|
100 |
|
Other operating gain,
net |
|
|
(484 |
) |
|
|
(800 |
) |
|
|
|
|
|
|
|
|
|
Total operating
expenses |
|
|
77,263 |
|
|
|
68,920 |
|
|
|
|
|
|
|
|
|
|
Income from
operations |
|
|
17,165 |
|
|
|
20,226 |
|
Interest income,
net |
|
|
844 |
|
|
|
509 |
|
Other expense,
net |
|
|
(5,586 |
) |
|
|
(3,842 |
) |
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
|
12,423 |
|
|
|
16,893 |
|
Provision for income
taxes |
|
|
(3,947 |
) |
|
|
(4,338 |
) |
|
|
|
|
|
|
|
|
|
Net
income |
|
|
8,476 |
|
|
|
12,555 |
|
Net income attributable to
noncontrolling
interests |
|
|
(817 |
) |
|
|
(1,553 |
) |
|
|
|
|
|
|
|
|
|
Net income attributable to IDT
Corporation |
|
$ |
7,659 |
|
|
$ |
11,002 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to IDT Corporation common stockholders: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.30 |
|
|
$ |
0.43 |
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
0.30 |
|
|
$ |
0.43 |
|
|
|
|
|
|
|
|
|
|
Weighted-average number of
shares used in calculation of earnings per share: |
|
|
|
|
|
|
|
|
Basic |
|
|
25,178 |
|
|
|
25,603 |
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
25,277 |
|
|
|
25,616 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) Stock-based compensation
included in selling, general and administrative
expense |
|
$ |
771 |
|
|
$ |
572 |
|
IDT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
Three Months EndedOctober
31, |
|
|
|
2023 |
|
|
2022 |
|
|
|
(in thousands) |
|
Operating
activities |
|
|
|
|
|
|
|
|
Net
income |
|
$ |
8,476 |
|
|
$ |
12,555 |
|
Adjustments to reconcile net
income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
5,047 |
|
|
|
4,790 |
|
Deferred income
taxes |
|
|
3,561 |
|
|
|
3,672 |
|
Provision for credit losses,
doubtful accounts receivable, and reserve for settlement
assets |
|
|
759 |
|
|
|
430 |
|
Net unrealized loss from
marketable
securities |
|
|
1,528 |
|
|
|
1,846 |
|
Stock-based
compensation |
|
|
771 |
|
|
|
572 |
|
Other |
|
|
897 |
|
|
|
756 |
|
Changes in assets and
liabilities: |
|
|
|
|
|
|
|
|
Trade accounts
receivable |
|
|
(4,572 |
) |
|
|
2,442 |
|
Settlement assets,
disbursement prefunding, prepaid expenses, other current assets,
and other
assets |
|
|
8,250 |
|
|
|
(4,380 |
) |
Trade accounts payable,
accrued expenses, settlement liabilities, other current
liabilities, and other
liabilities |
|
|
(7,061 |
) |
|
|
(6,970 |
) |
Customer deposits at IDT
Financial Services Limited (Gibraltar-based
bank) |
|
|
(2,326 |
) |
|
|
2,865 |
|
Deferred
revenue |
|
|
(540 |
) |
|
|
(394 |
) |
|
|
|
|
|
|
|
|
|
Net cash provided by operating
activities |
|
|
14,790 |
|
|
|
18,184 |
|
Investing
activities |
|
|
|
|
|
|
|
|
Capital
expenditures |
|
|
(4,322 |
) |
|
|
(5,172 |
) |
Purchase of convertible
preferred stock in equity method
investment |
|
|
(672 |
) |
|
|
— |
|
Purchases of debt securities
and equity
investments |
|
|
(7,750 |
) |
|
|
(2,058 |
) |
Proceeds from maturities and
sales of debt securities and equity
investments |
|
|
17,067 |
|
|
|
11,472 |
|
|
|
|
|
|
|
|
|
|
Net cash provided by investing
activities |
|
|
4,323 |
|
|
|
4,242 |
|
Financing
activities |
|
|
|
|
|
|
|
|
Distributions to
noncontrolling
interests |
|
|
(55 |
) |
|
|
(99 |
) |
Proceeds from other
liabilities |
|
|
100 |
|
|
|
300 |
|
Repayment of other
liabilities |
|
|
(15 |
) |
|
|
(1,916 |
) |
Proceeds from borrowings under
revolving credit
facility |
|
|
30,315 |
|
|
|
— |
|
Repayment of borrowings under
revolving credit
facility |
|
|
(30,315 |
) |
|
|
— |
|
Proceeds from exercise of
stock options |
|
|
172 |
|
|
|
— |
|
Repurchases of Class B common
stock |
|
|
(2,851 |
) |
|
|
(5,341 |
) |
|
|
|
|
|
|
|
|
|
Net cash used in financing
activities |
|
|
(2,649 |
) |
|
|
(7,056 |
) |
Effect of exchange rate
changes on cash, cash equivalents, and restricted cash and cash
equivalents |
|
|
(6,834 |
) |
|
|
(6,157 |
) |
|
|
|
|
|
|
|
|
|
Net increase in cash, cash
equivalents, and restricted cash and cash
equivalents |
|
|
9,630 |
|
|
|
9,213 |
|
Cash, cash equivalents, and
restricted cash and cash equivalents at beginning of
period |
|
|
198,823 |
|
|
|
189,562 |
|
Cash, cash equivalents, and
restricted cash and cash equivalents at end of
period |
|
$ |
208,453 |
|
|
$ |
198,775 |
|
|
|
|
|
|
|
|
|
|
Supplemental Schedule
of Non-Cash Financing Activities |
|
|
|
|
|
|
|
|
Stock issued to certain
executive officers for bonus
payments |
|
$ |
— |
|
|
$ |
615 |
|
***Reconciliation of
Non-GAAP Financial Measures for theFirst Quarter
Fiscal 2024 and 2023
In addition to disclosing financial results that
are determined in accordance with generally accepted accounting
principles in the United States of America (GAAP), IDT also
disclosed for 1Q24, 4Q23, 3Q23, 2Q23, and 1Q23, Adjusted EBITDA and
non-GAAP earnings per diluted share (EPS), both of which are
non-GAAP measures.
Generally, a non-GAAP measure is a numerical
measure of a company’s performance, financial position, or cash
flows that either excludes or includes amounts that are not
normally excluded or included in the most directly comparable
measure calculated and presented in accordance with GAAP.
IDT’s measure of non-GAAP EPS is calculated by
dividing non-GAAP net income by the diluted weighted-average
shares. IDT’s measure of non-GAAP net income starts with net income
attributable to IDT in accordance with GAAP and adds severance
expense, stock-based compensation, and other operating expense, and
deducts other operating gains. These additions and subtractions are
non-cash and/or non-routine items in the relevant fiscal 2024 and
fiscal 2023 periods.
Management believes that IDT’s Adjusted EBITDA
and non-GAAP EPS are measures which provide useful information to
both management and investors by excluding certain expenses and
non-routine gains and losses that may not be indicative of IDT’s or
the relevant segment’s core operating results. Management uses
Adjusted EBITDA, among other measures, as a relevant indicator of
core operational strengths in its financial and operational
decision making. In addition, management uses Adjusted EBITDA and
non-GAAP EPS to evaluate operating performance in relation to IDT’s
competitors. Disclosure of these financial measures may be useful
to investors in evaluating performance and allows for greater
transparency to the underlying supplemental information used by
management in its financial and operational decision-making. In
addition, IDT has historically reported similar financial measures
and believes such measures are commonly used by readers of
financial information in assessing performance, therefore the
inclusion of comparative numbers provides consistency in financial
reporting.
Management refers to Adjusted EBITDA, as well as
the GAAP measures income (loss) from operations and net income, on
a segment and/or consolidated level to facilitate internal and
external comparisons to the segments’ and IDT's historical
operating results, in making operating decisions, for budget and
planning purposes, and to form the basis upon which management is
compensated.
While depreciation and amortization are
considered operating costs under GAAP, these expenses primarily
represent the non-cash current period allocation of costs
associated with long-lived assets acquired or capitalized in prior
periods. IDT’s Adjusted EBITDA, which is exclusive of depreciation
and amortization, is a useful indicator of its current
performance.
Severance expense is excluded from the
calculation of Adjusted EBITDA and non-GAAP EPS. Severance expense
is reflective of decisions made by management in each period
regarding the aspects of IDT’s and its segments’ businesses to be
focused on in light of changing market realities and other factors.
While there may be similar charges in other periods, the nature and
magnitude of these charges can fluctuate markedly and do not
reflect the performance of IDT’s core and continuing
operations.
Other operating gain (expense), net, which is a
component of income (loss) from operations, is excluded from the
calculation of Adjusted EBITDA and non-GAAP EPS. Other operating
gain (expense), net includes, among other items, gain from the
write-off of contingent consideration liabilities, legal fees net
of insurance claims related to Straight Path Communications Inc.’s
stockholders’ class action, gain from the sale of state income tax
credits, and fixed asset write-offs. From time-to-time, IDT may
have gains or incur costs related to non-routine legal, tax, and
other matters, however, these various items generally do not occur
each quarter. IDT believes the gain and losses from these
non-routine matters are not components of IDT’s or the relevant
segment’s core operating results.
Stock-based compensation recognized by IDT and
other companies may not be comparable because of the variety of
types of awards as well as the various valuation methodologies and
subjective assumptions that are permitted under GAAP. Stock-based
compensation is excluded from IDT’s calculation of non-GAAP EPS
because management believes this allows investors to make more
meaningful comparisons of the operating results per share of IDT’s
core business with the results of other companies. However,
stock-based compensation will continue to be a significant expense
for IDT for the foreseeable future and an important part of
employees’ compensation that impacts their performance.
Adjusted EBITDA and non-GAAP EPS should be
considered in addition to, not as a substitute for, or superior to,
income (loss) from operations, cash flow from operating activities,
net income, basic and diluted earnings per share or other measures
of liquidity and financial performance prepared in accordance with
GAAP. In addition, IDT’s measurements of Adjusted EBITDA and
non-GAAP EPS may not be comparable to similarly titled measures
reported by other companies.
Following are reconciliations of Adjusted EBITDA
and non-GAAP EPS to the most directly comparable GAAP measure,
which are, (a) for Adjusted EBITDA, income (loss) from operations
for IDT’s reportable segments and net income for IDT on a
consolidated basis, and (b) for non-GAAP EPS, diluted earnings per
share.
IDT Corporation
Reconciliation of Net Income to Adjusted
EBITDA (unaudited) in millions. Figures may not foot or
cross-foot due to rounding to millions
|
|
Total IDT Corporation |
|
|
Traditional Communica-tions |
|
|
net2phone |
|
|
NRS |
|
|
Fintech |
|
|
Corporate |
|
Three Months Ended
October 31, 2023(1Q24) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to IDT
Corporation |
|
$ |
7.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
noncontrolling interests |
|
|
0.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
8.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes |
|
|
3.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
|
12.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income, net |
|
|
(0.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
expense, net |
|
|
5.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations |
|
|
17.2 |
|
|
$ |
15.4 |
|
|
$ |
- |
|
|
$ |
5.5 |
|
|
$ |
(1.4 |
) |
|
$ |
(2.3 |
) |
Depreciation and
amortization |
|
|
5.0 |
|
|
|
2.1 |
|
|
|
1.4 |
|
|
|
0.7 |
|
|
|
0.7 |
|
|
|
- |
|
Severance |
|
|
0.5 |
|
|
|
0.5 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Other operating gain, net |
|
|
(0.5 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(0.5 |
) |
Adjusted EBITDA |
|
$ |
22.3 |
|
|
$ |
18.1 |
|
|
$ |
1.4 |
|
|
$ |
6.2 |
|
|
$ |
(0.7 |
) |
|
$ |
(2.8 |
) |
IDT Corporation
Reconciliation of Net Income to Adjusted
EBITDA (unaudited) in millions. Figures may not foot or
cross-foot due to rounding to millions
|
|
Total IDT Corporation |
|
|
Traditional Communica-tions |
|
|
net2phone |
|
|
NRS |
|
|
Fintech |
|
|
Corporate |
|
Three Months Ended
July 31, 2023(4Q23) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to IDT
Corporation |
|
$ |
8.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
noncontrolling interests |
|
|
0.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
8.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes |
|
|
3.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
|
12.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income, net |
|
|
(1.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
expense, net |
|
|
0.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations |
|
|
12.0 |
|
|
$ |
14.1 |
|
|
$ |
(0.7 |
) |
|
$ |
1.7 |
|
|
$ |
(1.9 |
) |
|
$ |
(1.2 |
) |
Depreciation and
amortization |
|
|
5.1 |
|
|
|
2.3 |
|
|
|
1.5 |
|
|
|
0.7 |
|
|
|
0.7 |
|
|
|
- |
|
Severance |
|
|
0.5 |
|
|
|
0.4 |
|
|
|
0.1 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Other operating expense
(gain), net |
|
|
0.5 |
|
|
|
1.8 |
|
|
|
0.1 |
|
|
|
- |
|
|
|
- |
|
|
|
(1.4 |
) |
Adjusted EBITDA |
|
$ |
18.1 |
|
|
$ |
18.6 |
|
|
$ |
0.9 |
|
|
$ |
2.4 |
|
|
$ |
(1.2 |
) |
|
$ |
(2.6 |
) |
|
|
Total IDT Corporation |
|
|
Traditional Communica-tions |
|
|
net2phone |
|
|
NRS |
|
|
Fintech |
|
|
Corporate |
|
Three Months Ended
April 30, 2023(3Q23) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to IDT
Corporation |
|
$ |
6.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
noncontrolling interests |
|
|
0.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
7.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes |
|
|
3.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
|
10.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income, net |
|
|
(0.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
expense, net |
|
|
0.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations |
|
|
10.4 |
|
|
$ |
12.9 |
|
|
$ |
(0.4 |
) |
|
$ |
2.1 |
|
|
$ |
(1.3 |
) |
|
$ |
(2.9 |
) |
Depreciation and
amortization |
|
|
5.2 |
|
|
|
2.5 |
|
|
|
1.4 |
|
|
|
0.6 |
|
|
|
0.7 |
|
|
|
- |
|
Severance |
|
|
0.1 |
|
|
|
0.1 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Other operating expense,
net |
|
|
4.8 |
|
|
|
4.1 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.6 |
|
Adjusted EBITDA |
|
$ |
20.5 |
|
|
$ |
19.7 |
|
|
$ |
1.0 |
|
|
$ |
2.7 |
|
|
$ |
(0.6 |
) |
|
$ |
(2.3 |
) |
IDT CorporationReconciliation of Net
Income to Adjusted EBITDA
(unaudited) in millions. Figures may not foot or
cross-foot due to rounding to millions
|
|
Total IDT Corporation |
|
|
Traditional Communica-tions |
|
|
net2phone |
|
|
NRS |
|
|
Fintech |
|
|
Corporate |
|
Three Months Ended
January 31, 2023(2Q23) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to IDT
Corporation |
|
$ |
14.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
noncontrolling interests |
|
|
0.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
15.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes |
|
|
5.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
|
20.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income, net |
|
|
(0.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income, net |
|
|
(1.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations |
|
|
18.2 |
|
|
$ |
17.0 |
|
|
$ |
(0.6 |
) |
|
$ |
5.4 |
|
|
$ |
(0.8 |
) |
|
$ |
(2.8 |
) |
Depreciation and
amortization |
|
|
5.0 |
|
|
|
2.4 |
|
|
|
1.4 |
|
|
|
0.6 |
|
|
|
0.7 |
|
|
|
- |
|
Severance |
|
|
0.2 |
|
|
|
0.2 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Other operating (gain)
expense, net |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(0.3 |
) |
|
|
0.3 |
|
Adjusted EBITDA |
|
$ |
23.4 |
|
|
$ |
19.6 |
|
|
$ |
0.8 |
|
|
$ |
6.0 |
|
|
$ |
(0.5 |
) |
|
$ |
(2.5 |
) |
|
|
Total IDT Corporation |
|
|
Traditional Communica-tions |
|
|
net2phone |
|
|
NRS |
|
|
Fintech |
|
|
Corporate |
|
Three Months Ended
October 31, 2022(1Q23) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to IDT
Corporation |
|
$ |
11.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
noncontrolling interests |
|
|
1.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
12.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes |
|
|
4.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
|
16.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income, net |
|
|
(0.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
expense, net |
|
|
3.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations |
|
|
20.2 |
|
|
$ |
17.3 |
|
|
$ |
(1.1 |
) |
|
$ |
5.2 |
|
|
$ |
1.5 |
|
|
$ |
(2.7 |
) |
Depreciation and
amortization |
|
|
4.8 |
|
|
|
2.3 |
|
|
|
1.4 |
|
|
|
0.5 |
|
|
|
0.6 |
|
|
|
- |
|
Severance |
|
|
0.1 |
|
|
|
0.1 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Other operating (gain)
expense, net |
|
|
(0.8 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1.6 |
) |
|
|
0.8 |
|
Adjusted EBITDA |
|
$ |
24.3 |
|
|
$ |
19.7 |
|
|
$ |
0.3 |
|
|
$ |
5.7 |
|
|
$ |
0.5 |
|
|
$ |
(1.9 |
) |
IDT CorporationReconciliation of
Earnings per share to Non-GAAP EPS
(unaudited) in millions, except per share data. Figures may not
foot due to rounding to millions.
|
|
|
1 |
Q24 |
|
|
4 |
Q23 |
|
|
3 |
Q23 |
|
|
2 |
Q23 |
|
|
1 |
Q23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to IDT
Corporation |
|
$ |
7.7 |
|
|
$ |
8.0 |
|
|
$ |
6.9 |
|
|
$ |
14.6 |
|
|
$ |
11.0 |
|
Adjustments (add): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
(0.8 |
) |
|
|
(1.0 |
) |
|
|
(1.7 |
) |
|
|
(1.3 |
) |
|
|
(0.6 |
) |
Severance expense |
|
|
(0.5 |
) |
|
|
(0.5 |
) |
|
|
(0.1 |
) |
|
|
(0.2 |
) |
|
|
(0.1 |
) |
Other operating gain
(expense), net |
|
|
0.5 |
|
|
|
(0.5 |
) |
|
|
(4.8 |
) |
|
|
- |
|
|
|
0.8 |
|
Total adjustments |
|
|
(0.8 |
) |
|
|
(2.0 |
) |
|
|
(6.6 |
) |
|
|
(1.5 |
) |
|
|
0.1 |
|
Income tax effect of total
adjustments |
|
|
(0.3 |
) |
|
|
(0.7 |
) |
|
|
(1.8 |
) |
|
|
(0.4 |
) |
|
|
- |
|
|
|
|
0.5 |
|
|
|
1.3 |
|
|
|
4.8 |
|
|
|
1.1 |
|
|
|
(0.1 |
) |
Non-GAAP net income |
|
$ |
8.2 |
|
|
$ |
9.3 |
|
|
$ |
11.7 |
|
|
$ |
15.7 |
|
|
$ |
10.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.30 |
|
|
$ |
0.31 |
|
|
$ |
0.27 |
|
|
$ |
0.57 |
|
|
$ |
0.43 |
|
Total adjustments |
|
|
0.03 |
|
|
|
0.06 |
|
|
|
0.19 |
|
|
|
0.05 |
|
|
|
- |
|
Non-GAAP - basic |
|
$ |
0.33 |
|
|
$ |
0.37 |
|
|
$ |
0.46 |
|
|
$ |
0.62 |
|
|
$ |
0.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of
shares used in calculation of basic earnings per share |
|
|
25.2 |
|
|
|
25.4 |
|
|
|
25.5 |
|
|
|
25.5 |
|
|
|
25.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
0.30 |
|
|
$ |
0.31 |
|
|
$ |
0.27 |
|
|
$ |
0.57 |
|
|
$ |
0.43 |
|
Total adjustments |
|
|
0.02 |
|
|
|
0.05 |
|
|
|
0.19 |
|
|
|
0.05 |
|
|
|
- |
|
Non-GAAP - diluted |
|
$ |
0.32 |
|
|
$ |
0.36 |
|
|
$ |
0.46 |
|
|
$ |
0.62 |
|
|
$ |
0.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of
shares used in calculation of diluted earnings per share |
|
|
25.3 |
|
|
|
25.5 |
|
|
|
25.6 |
|
|
|
25.5 |
|
|
|
25.6 |
|
*Explanation of Key Performance Metrics
NRS’ recurring revenue is NRS’ revenue in
accordance with GAAP excluding revenue from POS terminal sales.
NRS’ Monthly Average Recurring Revenue per Terminal is a financial
metric. Monthly Average Recurring Revenue per Terminal is
calculated by dividing NRS’ recurring revenue by the average number
of active POS terminals during the period. The average number of
active POS terminals is calculated by adding the beginning and
ending number of active POS terminals during the period and
dividing by two. NRS’ recurring revenue divided by the average
number of active POS terminals is divided by three when the period
is a fiscal quarter. Recurring revenue and Monthly Average
Recurring Revenue per Terminal are useful for comparisons of NRS’
revenue and revenue per customer to prior periods and to
competitors and others in the market, as well as for forecasting
future revenue from the customer base.
BOSS Money’s Average Revenue per Transaction is
also a financial metric. Average Revenue per Transaction is
calculated by dividing BOSS Money’s revenue in accordance with GAAP
by the number of transactions during the period. Average Revenue
per Transaction is useful for comparisons of BOSS Money’s revenue
per transaction to prior periods and to competitors and others in
the market, as well as for forecasting future revenue based on
transaction trends.
net2phone’s subscription revenue is its revenue
in accordance with GAAP excluding its equipment revenue and revenue
generated by a legacy SIP trunking offering in Brazil. net2phone’s
cloud communications and contact center offerings are priced on a
per-seat basis, with customers paying based on the number of users
in their organization. The number of seats served and subscription
revenue trends and comparisons between periods are used in the
analysis of net2phone’s revenues and direct cost of revenues, and
are strong indications of the top-line growth and performance of
the business.
# # #
Grafico Azioni IDT (NYSE:IDT)
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