IDT - Earnings call transcript Q2 2018

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Operator

Good day everyone and welcome to the IDT Corporation's Second Quarter Fiscal Year 2018 Earnings Call. In today's presentation, IDT's management team will discuss IDT's financial and operational results for the three month period ended January 31, 2018.

During prepared remarks made by IDT's Chief Executive Officer, Shmuel Jonas, all participants will be in listen-only mode. [Operator Instructions] After the prepared remarks, Marcelo Fischer, IDT's Senior Vice President, Finance and the Chief Financial Officer of IDT Telecom will join Mr. Jonas for Q&A. are statements remarks this session, actual or or in forward-looking in call, whether results Any and anticipates. specific prepared risks from their in nature, the to Instructions] differ made may those conference during either general uncertainties materially [Operator that to which cause company subject the Q&A the reports limited and uncertainties risks risks uncertainties that files These IDT specific and include, to, but SEC. periodically with in are the not discussed update may any forecast. or materially to statements results IDT that to made assumes either that no differ have forward-looking may update they obligation they to those from the cause or take, factors that actual their may and net In follow, income, the to will EPS. EBITDA, that IDT's make non-GAAP or non-GAAP management presentation, non-GAAP in Q&A reference measures, adjusted reconciles the measures. provided non-GAAP the adjusted A EPS income, and GAAP nearest corresponding release schedule EBITDA, in earnings to non-GAAP net that’s page Investor Please IDT Corporation note on available that and the is the earnings the of release www.idt.net. Relations IDT website, release has The Form the also with with earnings SEC. been filed X-K conference like I would turn Mr. over to to now the Jonas. go Please ahead

Shmuel Jonas

spinoff concluded earnings review Welcome the operator. XXXX fiscal Securities year Last months for Exchange XX, the second three and Commission quarter you, to ended our week Holdings. IDT's of January Thank of call Rafael XXXX. its

our include securities, incredible delivered marketable $XXX for our divestment expect strategic now of and of over about have shareholders. our and Holdings stockholders the March Rafael assets to estate on spinoff investments million we which and real announced, value ago, a decade Holdings noncore As we or to continuous investment. pharma XX the distribute shares of nearly This started a Rafael will cash process to This that spinoff

the million XXXX Consolidated second $XX.X by second million by now results. $X.X quarter compared our revenues sequentially. Turning quarter increased and to to

growth. Our consecutive business of its sixth achieved revenue quarter Wholesale Carrier

international which the the profit. margin was growth to Wholesale quarter, in compared year by Services due increases to gross revenue originating Payment pressures increases from remittance in in has of the $X.X money domestic Retail's by Communications ago contribution. generated past million $X.X decreased direct ago not of Carrier revenue consumer transactions corresponding compared the to improving quarter. driven revenue this by But top-up. grew market while However, slowed our Retail year, and over the mobile also year decline sales margin and channel quarter we have rate by million

millions app. continue We use has a heavily helped in it, is a as also and to that increase over year. app mobile average. monetize important our our That last customer to mobile eyeballs enhancing on margins over Revolution also BOSS of invest XX improved the times stickiness The to path investment month

second will year features, the telecom. As generated an versus we in that outside revenue revenue The add less additional more in ago. just direct content from the cost consolidated it revenue grow believe million and growth we $X one of quarter

However, ramped our million SG&A in $XX.X an investment unacceptable increased year-over-year up our $X to million as initiatives. we growth

million, ago be investment and over our a SG&A growth while our initiatives. the $X.X $X EBITDA adjusted behind will EPS in couple primarily quarter Consolidated maintain our share. months, decrease of We a to to continuing our businesses, next support and was reducing was million compared $X.XX legacy year the spend

which well we’re is doing features, live money very transfer growing communication leading including money on messaging generation with our plan both management phone, growth netXphone collaboration platform a Later to cloud the solution chat, update to virtual portal our industry BOSS consumer In rapidly. of initiatives. side, Revolution me direct growth deploy accelerate and suite through business to the physical especially tools. you netXphone's we year communication let this user and our continues Now international on and America. phones, in app, South U.S next

Similar increased to years scalability, stickiness consumer majority money a costs. Our telephony to digital is gross and ago profit. direct selling business hard the important retail parts, transfer transfer from of offers BOSS including PIN-less transactions money our platform, our lower direct contributing greater Revolution migration operating now channel consumer and advantages to channel, the primarily our over

in robust transfer a platform disappointment, new country many program and been denomination transfers, money accelerate adding investing more as in a at user our the will our has niche. and think services our nature the retails new and to up, in feature better which through soon we’re retail growth. to We’re not well building and adding feature enhance it's in heavily a aimed further pricing incentivizing and to transfer smaller for as but side we further big both payers give so be dollar model Money customers remit experience services launching

the National small markets. of this POS and investment are Revolution bodegas Solutions our stores aggressive business square over its expansion. Our to off. We as now fruits NRS other U.S are ourselves deployed XX% for retail the terminals in Retail continues to and becoming around BOSS the see pay starting

encourage learn products has a service can U.S a with monthly go that currently the You deployed services retailers offering to mobile, more nrsplus.com. offers at you and been pay retailer sort our Revolution our of NRS better sign insurance. now like wireless call even to as store BOSS pricing It’s bossrevolutionmobile.com anywhere model, nationwide. try, is a a up it around to the better any go can unlimited at everyone or you valued plan listening a to of out than country. give I It there. this

sale of sale also soon. the by based technology as expect Gibraltar by Commission. approval is The Wall a Financial Services IDT the company. our is not pursued bank Gibraltar complete to pending Street still We

company the foremost. technology telecom legacy a a trust is as seen and first we are but company, We’re

delayed in reputation in hurt which products. of and outages, That and elements many projects numerous our to business damaged excellent term disarray. small has were led us technology our delivering hurt many short immensely. both our However of It the

important we great have technology most group. new and product. to our been team processes, They So owners on the quality, and legacy and new over our rebuild to management improve diligently of extremely developers talented those or are dedicated with time boarded same They working the a scalability while and at past are recently couple in our improving system, products. product months driven launching

of IDTs As independent of Board the lot sheet, the $X.XX intention spin-off an massive knows snow desks in as Directors of stemming of wish to and and and IDT, shares balance to all noble they heavily in at Rafael sell and for I great received, of going group on worth hope in promising much York. except stock success in distant a out I I'm our the I doing believe were money to assure to and invest very Rafael our things how stay their give team tell initiatives support continue fact dividend not here to too charity has to now. along in the going second the from of sold of doing reduced for while quarter company. I be ride rest well that our future, the products not come of per my and In growth and sell matter technology impact you at light our to New share. features. good our IDT hard I shareholdings the our cause to are to because to a I’ve to going a here or any grants are any taxes well those storm work at never their during pay and yesterday

Now, to calls. Marcelo and be I would happy your take

Operator

Instructions] will Cole] Cole [Araya questioner with our first [Operator And today Capital. be

Unidentified Analyst

and mobile. questions, doing two one, I've regarding thank you call. this Number for BOSS Revolution

customers BOSS encourage in Revolution are what your of will preexisting is hopefully calls languages, their ask languages try in of what market are your the marketing to -- effort mobile customers. or is, offering understanding a international going to have users to you reason to service first portion them your Your try? who to give first all first to demographic them better make these a they the English degree these of be good materials the obviously able of Do because be existing other languages I and communications terms to

Marcelo Fischer

are customers at intend places And have them market what good native of would from. say we or look definitely our we they I that in who and the to in and pretty countries watch a are tongue etcetera. they that idea their to

our is with continue will definitely BOSS mobile. that specialty and general that think I we Revolution in

Unidentified Analyst

in talented in on-boarded achievements you in extra have question, is us give little second might you X for people capabilities your excited the their future? met eyes mind, you are hoping convey large them months. a give about you're understanding because to that say and a that past, how XX if about what little insight create? so of us have this that you let's can terms us maybe extra the backgrounds can three outstanding people, Because And team can outsiders understand just is I is in people, these what technology and so it mean new through I'm to never them you makes about we've them, they the hoping your as I

Marcelo Fischer

five company in we people named time. be Wartell, that appointed at new we've from QA, is and Head a sold. worked David to of we was CTO this Keith are is he that brought -- who brought with not brought later We've CTO was a in meeting a IDERA, of them a in Powe David start-up in scheduled part about that somebody management, have as brought beneficially called but appointed that month who We've We've for expect which growing IDERA. name the a who at

Revolution for is as for Head database brought Head of Engineering department. also as BOSS our well well running netXphone, We someone BI as in as and who Engineering of

not ago mean, complicated mean in a way six minutes But billing lot businesses. we're day new the process of staff pretty in them have a and the people And came just system I do do things. we it's So I multiple billion having -- and under processes turn or something. you can think discussion billing meeting you how one it's a rebuilding systems imagine and a to $X.X again fix where robust I about a today, brought they if months process changed in I couple when of from a of are a

whether problems around an would use that that's So and fix been to strategy but patch to say the looking rebuild and the here, we're, so our to have at the kind all I'll brought always I I different past or are mean it not new optimistic. or of thinking what they again service to in to-date, say they I actually has think we outsourced

Unidentified Analyst

Great, luck. of you. Best thank

Operator

be conclude no [Operator lines. to for may now And as conference you Thank session, your well disconnect you attending today's so call. looked and this will today's Instructions] presentation further there questions, question-and-answer as our

IDT (IDT) 8 Mar 182018 Q2 Earnings call transcript