IDT - Earnings call transcript Q3 2021

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Operator

Good evening, and welcome to the IDT Corporation's Third Quarter Fiscal Year 2021 Earnings Call. In today's presentation, IDT's management will discuss IDT's financial and operational results for the 3-month period ended April 30, 2021. [Operator Instructions] After the prepared remarks, Marcelo Fischer, IDT's Chief Financial Officer, will join Mr. Jonas for Q&A. Any forward-looking statements made during this conference call, either in the prepared remarks or in the Q&A session, whether general or specific in nature are subject to risks and uncertainties that may cause actual results to differ materially from those which the company anticipates. include, discussed not IDT in with SEC. uncertainties risks to, files and the uncertainties and the risks but limited are specific periodically These reports that that to to or the forecast. materially factors actual any IDT from may cause update either may to no made or obligation forward-looking assumes statements results they that those have make they update differ that CapEx, EBITDA, reference in net less In session, make measures, Q&A non-GAAP or and per non-GAAP may the to their adjusted including earnings adjusted presentation management IDT's non-GAAP EBITDA income share. earnings A in non-GAAP reconciles provided the EBITDA schedule adjusted share less per non-GAAP IDT's nearest and release income adjusted measures. GAAP net EBITDA, corresponding to CapEx, earnings Corporation that is earnings release the Investor available note Relations IDT the website. the Please IDT on page of been a the on release The Form also earnings SEC. has with X-K filed over I now the would turn Mr. to call Jonas.

Samuel Jonas

call quarter Thank year today X-months April you, XX, fiscal XXXX. for Chief XXXX earnings the Marcelo IDT's Welcome joined the to covering results Financial Officer. ended by operator. I'm Fischer, IDT's third call on

For financial strong Xth. sustained earnings priorities a or which of the June results, on expect and to today continued the to and operational our the operating Form we our SEC and on filed our earlier robust our file businesses. release about read results with strategic please reflecting of IDT deliver report detailed execution XX-Q, our performances

$XX.X board, top-up an solid this quarter million bottom and valuation our excluding quarter. revenue income to our on compared communications tax revenue year-over-year $XX appreciably performances our recorded gains offerings, operations million exceptional of increase the to and increased across of year-over-year revenue fourth result, mobile impacts positive quarter, the even to With investments lines of prior and $XX.X consolidated increases, increased ago a quarters, consecutive $XXX from top a consolidated increased million As traditional among allowances this in with income year reversal including the million.

for proxy to million a CapEx is $XX.X less Our adjusted cash which and generation, $X.X overall good EBITDA million. jumped

the income joined Nick go $XX.X from pre [ph] just quarter. Consolidated Sorry, this I recording. has back million it’s just to my me, apologize. am $XX.X and apologize. drop operations increased I'm problem to million with sorry, I going

is for jumped While million three good of adjusted or overall exceeded $X.X cash reporting a communications Fintech generation which million. to from and proxy met CapEx, less our $XX.X segments, expectations. netXphone-UCaaS, our EBITDA traditional All

new of add integrations growth, increase once performed high progress extremely Salesforce netXphone high and Our party margin reflected part growth PurpleCloud, netXphone well. API offers businesses XX% third The integrations Zoho, now continue netXphone delivered roadmap. subscription again for with in year-over-year. revenue development Slack, and segment, Fintech Teams, and growth Zapier revenue integration across toolkit NRS international Its access domestic to and by year-over-year advertising XXX% payment processing over by Microsoft led impressive markets. growing and digital among increasing accelerated segments enhances In its others. its services. revenue our

quarter completely Transfer the transient the starting of Fintech, XX% add NRS packages. revenue FX pursued after but enabling generating of and opportunities ability positive partnership of successfully business quarter receive our our year. within in BOSS Money excluding that our to tremendous ceased impact illustrates NRF its ago the independent the retailers the Revolution this growth remained from with and announced to strength significant real value services in of revenue This finally Also, This deal which quarter, the we namely to year-over-year, retailers. generate variety the a ways strong, ecosystem, year ship e-commerce second

these growth term to In $XX Money new enhancing we markets. by great from the a term results Our grow money corridors, ago will to origination $XX.X Africa months, the and the jumped strengthen other balance to further the Transfer job revenue cash from long user network, revenue adjusted ratios and our less Finishing and year of this top-up a traditional notably offerings third by of quarter. of team has quarter grow This and abundant our BOSS done mobile to potential experience available an distribution segment within million the top-up our continue by improvement significant quarter. app, to efforts potential. year-over-year, share reflects $XX communication largest And CapEx vigor in our our and $X.X These increase Revolution, jumped with customers our finally, million current offerings. our sheet operational expand million, it the Powered a new systematically strong our Transfer Money to million sustain cross-selling BOSS enabled initiatives significant underscoring up space. service to sequentially the in communications, cash long enhance recent segment, offer increase mobile us to EBITDA generation. mobile coming for top-up, traditional

to the I be just and hopefully Marcelo, [indiscernible] us. join, Now, love take questions. will would And to two some it be would your I'm but sure happy of

Operator

ahead. We the first [Operator investor. come question-and-answer a question from will Please begin now private will go Smith, Instructions] James session. Our

James Smith

questions. Hi, had two good evening, I

in extent is future that's in just jump, which development go what IMTU, you see And on detail MarketSpark, product of what quarters? you to you. little just a little a The Thank in sort relation it's on to [ph] sustainable division early the if to it first into more the could plan initiatives. more is second as detail product was then And one there? going And in the think sequential you which know there is, that large the question April, to

Samuel Jonas

were had you part feel I was to some opportunities direct-to-consumer, a want that we mean, continue. at bright Okay. - significant The future quarter, that America. it really jump broad-based, seized business we IMTU please gains believe wholesale, think ahead. There know, Africa, Marcelo, this we retail, it, a And of if Latin gains. or to upon free in. that will we has you any answer

being very a so. was do done - said, I for ride require, the That a interesting see POS been reasons, advantage know, based in did cellular. technology you sections as basically, to years of being what need we so very And far. years very, it's the That the taxes, of the to over connection, offer, systems, whole cellular copper We're country, to operators, MarketSpark from system. call used effectively switch so the the that not passive any, the phone investors, MarketSpark business you you to very at rate specialized low big The security know, basically at rate. and know, carriers real offer it's easiest that copper it. as know, to there's a being you is not a and the to to in in one MarketSpark about for, - you excited for a we're not opportunity And MarketSpark, move pipelines basic management business. an you know, high investment lines, try need know, Really pipelines there's a and know, the very compelling on people the in do explain very, a taxes said, FCC, think management is lines there's the that to provides as variety is we're that and used a wires in As it's very it's far cut the to you we being cellular strong.

why landed, money, customers save reason to able so you're they've customers been the know, large so almost guaranteed. immediately, that's quickly. And you So many

You - very, it's think growing very know, [ph] having we future. eventual pains said, – an that bright that being has its but and it

question. Does your answer of kind that James? you for that hope, I So the question answer

Marcelo Fischer

of it have James, And James Yeah. belongs, minority taken where the mentioned, in terms Samuel company. of terms [ph] position as because in – in a we

income that we accounting the So it, results method, results and not will therefore offshore be to of the collected our that an are P&L. are consolidating equity at under expense or we going in - for item business the be investment, operating know

James Smith

sense. makes very Thank That you much.

Marcelo Fischer

Sure.

Operator

Our next dropped go off. seems will Instructions] from a Apologies, Brian to ahead. investor. [Operator come have private Please Brian Warner, question

will come go - Our from a Please from up will next be ahead. James question Smith. follow

James Smith

microphone. UCaaS an wanting you there or Is hog the of off Me can division? spin update share [ph] Thanks. potential spin out regard with the not the to to

Samuel Jonas

we as what quarter. track. in on any still last - It's have instead We change don't you told to

James Smith

Thank you. Got it.

Operator

question Emergent go Please [ph] from ahead. come will with next Tim Delaney Our

Unidentified Analyst

the guys. in reporting you the change Could for comment on NRS Hi, [ph] and SaaS

Samuel Jonas

on depending a billable the better that to as the and Yeah, show units. terminals, sure. information. the quarters will metric to number little being revenues, to We associate units ago. mean, SaaS collection information active of active to in a metric be of we amount some more billable in spotty. somebody use the the than the are customers, a terms terminals it sometimes it's because more POS varies, as and typically, investors help to able bit maybe Yeah, better different growth which network, active Using another to the more method that Because on is now decided of and conservative as be growth to the to units billing shows may using few [ph] billable that have points-of-sales terms, you well, a it I the we opposed show found trend

activity example, meaning might define a a and be now the might situations or not those unit the unit. active, if though retailer, retailer, through be active going in there's For even [indiscernible] the retailer you transaction seasonal billing its we that

active units of the increase. to will better with show consistent trend revenue be our showing So way way in terminals we that the more a found a KPI

Unidentified Analyst

Great, thank you.

Operator

from Our Warner, investor. next Please go question will come a private ahead. Brian

Brian Warner

Hi.

had because maybe you as give One in more quite And that Secondly, the with was what - you I'm years you share could frame on traditional? you're anything offering there, next see T-Mobile the I the want can can that. going? else on and sure touch is top-up that it take when finally, to netXphone how to maybe the mobile a us can off, cut on about mobile what us questions. a might not doing maybe three you was color timing piece [ph] you share your maybe quarter over then few I of Sorry color opportunity spin-off? but for little on you got And little give

Samuel Jonas

that far, far. past couple actually actually So one, – to timeframe as everyone think that you launching, quarter. a we maybe know, a not you pretty it's know, hard well. we I in way growth had We third I we're on but that far the in good no them, provided there's very And the that T-Mobile, best MVNO you mean, And, as so of numbers change last caller, through weeks. as has the again, product that it's knows, the but ask going doing a previous answered time, order the question our of so had

them think based. broad domestic, very As you throughout et both well using, people market opportunities for people try well market capture mean, they of far space been own their that to we did and as And Again, information in now very as, done we of both And domestically as larger And continues And as that the that helping need are to the it's amount worldwide are as cetera. to places, the sell the lot I growing said, both there's to that loved that internationally. BXB, the that's we internationally, country in grow. on the always I the know, that we it, to you technology a general. know, as in you continues board. when know, acquired, acquisitions we percentage channel and know, ones in well the with it's expertise well, know, IMTU, top-up, the you the their wholesale, of small again, really allowed And pricing have. really, capitalize we the, services data really that every market. phones, across We providing we're us of we've come. and in phones a terms you as believe both as grow

Brian Warner

I got Congratulations. great. you. sounds It

Samuel Jonas

Thank you.

Operator

and no attending this session conference Thank our presentation. more questions, concludes [Operator Instructions] you question-and-answer there As for call. today's are

now disconnect. may You

IDT (IDT) 4 Jun 212021 Q3 Earnings call transcript