IDT - Earnings call transcript Q4 2019

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Operator

Good day, and welcome to the IDT Corporation's Fourth Quarter and Full Fiscal Year 2019 Earnings Call. In today's presentation, IDT's management will discuss IDT's financial and operational results for the three and 12-month period ended July 31, 2019.

During prepared remarks 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 Chief Financial Officer 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 the 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 non-GAAP non-GAAP the to may statements results IDT that to the made adjusted assumes either including that In measures no differ have forward-looking may in management or non-GAAP make update Q&A may obligation reference income they to presentation those net EBITDA, and from the cause that to or the IDT’s EPS. make will factors that actual follow,

measures. non-GAAP website IDT the filed income page X-K Schedule earnings the nearest provided non-GAAP EBITDA, the investor in net SEC. GAAP note also has a the release with adjusted The on IDT EPS Corporation Form available IDT on to reconciles of release is release Please that and www.idt.net. relations earnings been corresponding the earnings the

Jonas, is call conference to will turn now I the yours Mr. the Jonas. over Mr. floor sir.

Shmuel Jonas

to XX-month ended periods July Thank full fiscal quarter three and results Welcome fourth you, year Operator. covering and XX, IDT’s the XXXX earnings for call XXXX.

consistent read year. the filed quarter of our detailed fourth SEC fiscal will release were IDT today the please from more first the our our that which earnings tomorrow. results, results trends quarters Form we with For XXXX relatively file report on three and earlier XX-K with achieved

in especially Revolution Transfer American this been netXphone markets. quarter, and XX% million our initiatives, year-over-year. continue rapid UCaaS increase strong a $X business International Retail South in Solutions the growth has UCaaS National NetXphone expansions. Growth Our revenue Money generated Service Offerings, BOSS our

Solutions, Retail At from revenue network the our close, up increased XXX,XXX netXphone quarter. National the seat to reached quarter $X.X year-ago retailer At XX% milestone. million POS the

and over network transactions. retail our expand now to terminals actively processing XXXX continue have We

with Transfer new The the for fourth in to Money year-over-year. us revenue provides growth in revenue additional increase our quarter, scale services a network million BOSS climbed generating opportunities International in $X.X the to XX% coming Revolution the year. develop

Direct-to-consumer again channel the revenue powered $X.X increasing year-over-year sales to growth, million. XX%

channel, though XXXX business for last Sales two Even is engine pay-off. and to increased this years, throughout channel diligently tenacity retail to That a plus in retail we been declined DXC has the quarters. sequentially improving on beginning of which growth work our third continue offering. our to the fourth

at allow believe more success We effectively compete will online that at and retail. to retail us

[ph] services revenue decrease expected core to the our margin market. company each [media] last Revolution in has headwinds BOSS quarters. revenue wide a in sequentially As communications industry-wide the continue from paid growth of calling by the initiatives. three as costs But revenue of was of increased impact result from dampened and contributions our less direct carrier offerings increased Consolidated

adjusted consolidated in revenue. EBITDA recognizing quarter the was significant to and for million, a $X.X to result the changes a outlier adjusted breakage quarter as year-ago was EBITDA Consolidated fourth million of was $XX.X estimates the but upside

million and all for consistent end fiscal was I a a million, marked adjusted in the company year, our $XX.X their compared XXXX. year, work. hard everyone $XX.X full the thank consolidated want For Overall quarter to EBITDA to fiscal fourth to in solid

exciting to XXXX gets from growth As pursue strong a our working vigorously fiscal are opportunities. we underway, position

results. on comments my concludes the That quarter’s

happy Now take we would be your questions. to

Operator

FBR. [Operator go Please Gulani Instructions] come And Aman first the question have from will B.Riley we ahead. of

Aman Gulani

to growth ramp. see question for taking initiatives are my and thanks to Hi, good continuing the that guys,

might you question, my first any about guess be can M&A that talk opportunities I seeing. you So

will that expand Specifically of are something you offerings? offerings your opportunities or your sale point UCaaS seeing any within

Shmuel Jonas

You mean of? you in an as acquisition mean terms or

Aman Gulani

on of maybe anything like sort quicker a get more or into you other right or Is that to maybe that to Or get you growing maybe about? you're like markets. bolt-on looking can a thinking tuck-in Yes, customers that might acquire there those businesses is of be and something that that now? add two sort at

Marcelo Fischer

entire Sure. was that that felt seats team. is the business a Marcelo. for very pleased way real XXX,XXX netXphone XXXX. Hi, this great No, the mark We with were we reaching accomplishment the ended the

as and start Our Colombia acquisition and during all very U.S. in in we the about started Mexico grew year. initiatives operations Argentina in well Brazil, nicely to as the just Brazil, in the Kong. well and and Canada And Hong

objectives geographically growing at the the being with same of the in At different day space outside both acquisition U.S. are we additional some week U.S. we those coming globe. to grow looking this in And to now in opportunities are they any evaluating presented opportunities in. as we we at now well fiscal are time, as aggressive the we opportunities, have of the So continue the around are year. And seats come nice as

Aman Gulani

That's Okay, helpful. thank you.

the performing you Clearly plans any to have growth and well. American South target any very you can achieve on similar Brazil rates? you South and that markets Do Okay UCaaS more think other America, business. market where are

Marcelo Fischer

a a to we in mean in a just growth, Paolo, are Brazil the even scratching alone, really we now, opportunity. into Well, are that Rio cities, are geographies. main large we surface. really large such seeing mean de in Sao mean, Janeiro, alone right we Brazil in now, bit like such in are expand is just are little other even we though there I geographies the yes, the current I But looking I

true which and other and Curitiba, Argentina, cities, Mexico to the Porto holds Horizonte right Alegre go same for and we’re and entering you is Manaus opportunity. just huge and Belo a If now,

in. expand came on just right well, just well. now hand, countries existing countries, yes, much other so are one there's to we So the But as looking into we opportunity even

current plenty to countries deeper that's But the do we in geographies, going in grow we countries, other to are into we now. are whether both. go probably do in right or So we

Aman Gulani

Thank you, very helpful.

Okay. your on moving And business. then just to NRS

I - almost year slowed a the this accelerated and come down pretty mean bit. you're rate. the you're last But new terminals like I What's reason you terminals an in doing were slowdown XXXX a to at XXX it that So it's the think down a last adding, relative year. like for adding about to quarter year,

feel So going get just better there? on what's trying a to of

Shmuel Jonas

to the I after, merchant than terminal. rather changed don't think with Services really used things us. mostly progresses, we're did little in pricing on And have I on channels the accounts we able both the quarter, with services One on but took more get and that we've do going better to the with And is would of do better will two Merchant say that accounts being that that's the I a time what idea sales bring But accounts higher that quality sales, just slower price. as sales. of to we it happened. think sales sales it a year first

Aman Gulani

And question Got okay. it, just last from me.

in you opportunities? scaling you So your start remarks, once about could add additional revenue talk business, additional opportunities revenue could think I that you those you mentioned prepared

Marcelo Fischer

in a little I big we've talked and advertising publicly bit sales. the our data mean Yes, that about in are ones

the for and of sales being independent that that lot system side, point already retailers stores, there's is our for happened On convenience of in say need and I'll hole a data. of the in probably we’re largest a independent there's big black need the data a sale what big desire

of team. lead already, hired that plans we've a So And they business. the lady new we been and data to doing side aggressive growth the very pretty just have very, well for

On as buying much we're really else marketing the late. business, person is targeted side the this, cetera. better them, the starting it's something And also done go just of to after et ads. advertising And much, of again,

steadily. So we're to believer big continue quite growing is advertising that going a the

Aman Gulani

pass Got it. you. Thank I'll it on.

Operator

question-and-answer more no conference are a and your you may and Thank for this today's there thank questions, this we great again session care At our day. everyone. as disconnect presentation. Well lines. you have Instructions] attending all will Again you today's Take call. time, conclude [Operator

IDT (IDT) 10 Oct 192019 Q4 Earnings call transcript