IDT - Earnings call transcript Q4 2022

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Operator

Good evening, and welcome to IDT Corporation's Fourth Quarter and Full Fiscal Year 2022 Earnings Call. In today's presentation, IDT's management will discuss IDT's financial and operational results for the three and 12 month periods ended July 31st, 2022.

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

Shmuel Jonas

earnings today operator. fourth of me call. be months three you, our to will XX. year and IDT's My will Fischer, conference Financial the to Welcome Marcelo we After my join questions. answer XXXX, the available focuses IDT's Chief on Thank discussion remarks, Officer fiscal quarter ended July

delivered cloud gains. the full high-margin year, In Commission Friday, filed our we release XX. for operational fourth our Securities that impressive rapidly-growing communications full including earnings financial today the quarter our fiscal Exchange Form results more results, a the and fiscal and and on businesses XXXX please discussion to by For read with our detailed and fintech and file expect XXXX year XX-K earlier our October

consolidated terminal, history. our generation several IDT's IDT's POS creation. segment, years, Fintech NRS in transformation $XXX. $XX.X recurring our growth. EBITDA highest value to dynamic of hardware excludes next to which sales, in Monthly increasing the Within helped we XXX% and had drive and key of to Each businesses their quarterly annual revenue levels nearly ongoing For contributed This to these average offerings develop year-over-year revenue adjusted invested have another by terminal outstanding quarter, quarter's the to per NRS' million. recurring doubled

ahead, what typically for advertising seasonally Looking strong a we entering are is period generally.

macroeconomic-driven headwinds However, the market. are buffeting advertising

as a As to even continue likely nicely. will revenue volatility generate fee grew also NRS quarter-to-quarter we SaaS strong to result, some Merchant Services from we encounter increases. and year-over-year revenue expect

NRS the very to existing customers customers POS We to at convert new signing are our Pay good POS a up continuing we clip. and are

side, than more increased Transaction in transaction and BOSS All segment, well. the by Fintech SaaS million. achieved ever the grew our NRS On year-over-year business. $XX potential Revenue we X,XXX new we are Money revenue exceptionally XX% owners POS all, to many terminal are growth features soon. exciting in again bundles fourth the in terminals to premium quarter. adding we have of and strong net in increased XX% XX%. its coming per store this network footprint excited upselling by volumes Also features over and also performed

pricing experience grow ecosystem, Revolution and revenue strategy larger the enhancing transaction our expanding by user our to networks, cross-selling priorities, enable attract retail and to and customers, strategic more We within tools. margins platforms continue several on BOSS the improve new payout focusing improve digital sophisticated

profitability. boosted of to delivered loss and compared our there. revenue in our taking ago income to a faster to impressive fourth in the is introducing to consecutive profitability $X.X Fourth NRS then in fiscal service operations at from to significantly first service the the bottom-line per million netXphone, from planning likewise operations Fintech remittance expanding good quarter. quarter $X.X million expand third industry BOSS the approximately from origination our Overall, step our subscription clip very Canada expanding on of generated meaningfully Money segment are many During million we net XXXX, year year-over-year and increased internationally BOSS quarter, a and revenue $XX.X seat while another XX% seats quarter. contributing for delivered than now closer players. growth XX,XXX quarter. added moving We Money

Following Center-as-a-Service in the market its spring, netXphone we Contact quarter. to the umbrella acquisition of fourth brought Integra this the offerings under

additional CCAS increases revenue. that expect in will per drive We seat

accelerating on streamlining growth As I in and noted operations by our are quarter, profitability capital. we investment last optimizing netXphone's to laser-focused path

quarter, year fiscal million are XXXX netXphone We the EBITDA $X.X progress. quarter grow good will fourth while the the segment level we operations fourth half to the of decreased that to achieve and continuing profitability in ago robustly. making very quarter of from by netXphone’s loss expect

our now $XXX Communications IDT XX%. decreased million Global's quarter Turning to wholesale by BOSS fourth Calling Traditional carrier XX% segment, declined Revolution to or million. $XX while XX% $XX or by million decreased revenue

$XX impacted our weaker international both reflect million. for by Revolution of and consumer communications year demand COVID-boosted foreign exchange melting ago is decreased Mobile Total our Mobile Global result by from in which slowly million minute largest the The to results business our cube. businesses voice within and the corridor. Top-Up a the We or in Communications quarter the have was fourth acceleration purchasing fading Traditional melt of Also conditions paid deterioration economy. this XX% sales the IDT a quarter long market, as segment, Top-Up revenue compared BOSS again of to $XXX Carrier ice the Calling the basis rate

segment, corridor. Mobile increased the However, future exclusive for not if the it's Traditional Mobile generator of instructive Top-Up revenue that look the now to quarter that. is thinking about our volatile Top-Up, results of which fourth largest at would have Communications revenue within

the be to about bullish Mobile Top-Up. We growth prospects continue long-run for

Global by are to substantially or developing $X now negative we bundles demand decreased operations year-over-year and have XX% We digital impacts. Communications’ to quarter's progress for worked Traditional million. through quarter broadband fourth income million comparative from continues offerings. foreign increase, making exchange new the $XX

cash Nevertheless, impact as by pressured recent declines rightsizing bottom-line will BOSS paid on to as the in distribution optimizing and we forward believe in volume as our these business to We decline a maintain from result, fiscal continue and Top-Up well EBITDA been as though our and years our of focused will possible. to much to Global continue strategies segment as minimizing businesses operating and Mobile return very flow IDT businesses. minutes expenses. streamlining pricing do XXXX, a channels, be that Calling as remain both sharply stability so in moderated by going the by We have successful revenue

expectations. growth our cloud communications businesses that fintech outlook, Calling remains XXX,XXX continue our Class EBITDA, the and strong whole offsetting of lower-margin worldwide, of For wrap further results and of high-margin than BOSS IDT Mobile to them. beat up I without $XX.X B the employees IDT acknowledging outlook IDT stockholders. work challenges We want the year's would as possible continued continue and the during always, success IDT's a anticipate offerings market improve XXXX, and In for our fiscal and Traditional quarter. hard will have within very to adjusted Top-Up rise fiscal fourth to more segment. for value quarter consolidated shares and on approximately Reflecting common by quarter who positive. the we their in not the to to the contributions million stock businesses its the from return been opportunities The Global repurchased decreasing this will thanking to that positive our Communications Revolution ended open expect significantly progress as look we IDT's

take your happy to Marcelo I and questions. be will Now

Operator

[Operator Instructions] The first Haley question Connor with comes Capital. Fox Alta from

Your line is live.

Connor Haley

Hi guys.

am of it’s excited mean million-ish right are quarters? growth I plus be am this for of about doing quarters buyback sort I million forward to if incredibly entire stack First, observed mean it well. impressive terms next start XXX% quarter. as XXX%, see three I next $XX the number the profitable. thinking over of I growth this on about significantly great congratulations revenue? piece right? three to really year-on-year, thinking It's We see NRS the I non-hardware two-year that the XXX% $XX NRS agree annual quarter just up to in to just shares this the I year-on-year, guess, opportunity. maybe in will to we really in forward I mean, XXX% roll team. a mean, this already accelerating interest, rolling and

Shmuel Jonas

possibly But I I better. about mean, yes, could we be you are thinking that it think I think correctly.

Connor Haley

Transfer, That's million the obviously the segment alone. incredible, segment, and Money $X.X at EBITDA NRS I then look contribution I Fintech if did guess this BOSS includes and quarter EBITDA in both the from which

comments, transfer BOSS that mentioned Shmuel, breakeven. your You to is close in prepared MONEY

want over in to imply XX% million that So I EBITDA is is this from quarter. I sure latest assume just already the of logic NRS, it’s my $X.X margins correct. EBITDA doing on all make which would can

Shmuel Jonas

is than is logic doing I money’s as expect can I that Yeah, that. add your mean, of, small away it, call subsidizing quarters. some correct. in to go BOSS we'll those mean think the we it's losses I and coming next to But it Marcelo I mean more well.

Marcelo Fischer

the Marcelo. Connor. It’s Hey, joining Thanks call. for

a got of I couple So, thoughts.

So in a will do saw like at That's I to $XXX, same because growth will say and see in million fiscal choppy okay, because a strong QX, again, we the how though still revenue revenue cetera. looking most are possibility. quarter out day, the paid going double we of we a advertising then into cutting probably of to September seen, that we better and that's XXXX. we a probably as the likely. recurring saw down advertising yes, in as be headwinds companies on than you're about we time not might had in year to probably QX maybe ago, terminal per And absolute would lower slightly we amount, the in in But have significant most likely, believe we've of point not real data even above QX even and all and that $XX in now dollar there QX that. what budgets, advertising it is, be et the time than so

multi-services, cash the at fees, SaaS flow to same getting is the other The far. sources too start that of continuing plan NRS, grow saw are those you for

type You beyond. and continue to into see growth that going QX of

a coming this bottom-line for So robust very and we top-line expect NRS year. do

profitability, of terms EBITDA In $X bottom-line million did in NRS a QX. EBITDA modest

deliver NRS fiscal in than are perhaps on having So of $XX target XXXX. EBITDA million more we

Connor Haley

that's know cap growing market Congratulations mean, margins EBITDA XXX% XX% Wow, in asset don't strong a with such on plus of and year-on-year I other any position. incredible. that. competitive the that's I seems a worth the basis on current far today. than It me this NRS to more IDT mean off really market I like charts. the rule is of of alone XX is

of that. talked well see as then doing EBITDA haven't So we businesses buyback annualized and excess it's $XX other great the of to the even in million about

guess So a last for I is the example? scale NRS today, of momentum event NRS an and given XXXX for me sense look, the this in timing the any spend? one for just be potential Could

Shmuel Jonas

mean, than I profitable you have particularly think market-determined not The rather fintechs. NRS-determined. markets, it's all kind I know, largely to fast-growing even been as

That just markets something. don't that do is be we right then, believe by happy would than the timing that think we So to if improve said, I the now. more being

Connor Haley

my of thank of companies of the Best guys. all Thanks, Well, for much. the very and Awesome. IDT. discipline allocation the you rest wishes had Incredible capital I wish execution. portfolio year.

Shmuel Jonas

Thank you.

Operator

Thanks.

Wilk with Raceland coming line your Capital. is is question live. from Adam Adam, Next

Adam Wilk

guys? my Can you you are how Hey, hear taking me? questions. for Thanks

Marcelo Fischer

you? Adam. Yes. are How Hi,

Adam Wilk

you you? cited. missed EBITDA Great. that Marcelo, how Thanks, are Good. the I netXphone number,

end. Do I my think just you out cut mind repeating you on that?

Shmuel Jonas

EBITDA million was for last The of about year. was it $X.X half what netXphone quarter, the Sure. negative

Adam Wilk

Okay, miss with I did just – million that? finishing what anticipate $X.X finishing was about something or there you

Marcelo Fischer

end XXXX. intend We at of the to No. breakeven be by least

Adam Wilk

Yes Connor Okay, you. actually so, perfect. Thank asked…

Marcelo Fischer

getting projections, EBITDA-positive play higher on basically. UCaaS our $X.X Just $XXX,XXX, XXXX on exit was we correct being EBITDA continues from as itself reaching income profitability based okay? loss was operations from closer EBITDA grow operations, probably average hope it netXphone than about XXXX we company, rates the are So with billion. which minus the and Of to are an even to the to do for to netXphone minus at

Adam Wilk

great. that's Yeah,

can moving I'm just year-over-year I is there large share break but I little a NRS advertising as deal a you not apologize and of definitely pretty I if jump there. The and you forward well maybe talked side. was that about for incredible, wondering, about just kind talk of in if can line sort before something, drove his in segment I that's work think asked the curious maybe questions, I saying normal NRS, probably the that this a about with sentiments data cadence terms is my which bit anything am on me. Connor is or of down great results, phenomenal missed and bulk of you I larger that the and

Shmuel Jonas

I vertical We based. mean, sell strong. every is very listen, we to broad again, from it that was this more had really looking quarter sales and

said, As would companies some say, in little with we strong are being world there spending. being some Marcelo I very a data numbers generally cautious about the their headwinds, sort and advertising late. seeing That are of of said,

Adam Wilk

helpful. entered or customer home customer base? is just into partnership Great. of delivery supplement then, any kind you – for acceleration And the That's is sort opportunity there uptake Okay. or the in delivery purely it of any August, existing that additional there

Shmuel Jonas

service – is we do happy to that tell bring brings And well, by know current that don't I customers is we it and very say that if a needed for well much and how our this will is a more about answer our customer happy that What I it be their the retailers. accounts. question. that they would and we do on will they more it retailers that's friends think believe

Adam Wilk

makes deterioration color any the one the be there corridors to That on you Mobile in sudden sense. mentioned? Top-Up, of that And switching Sure. gears is then, to added

Shmuel Jonas

same bit we and well. because I but is explain cash are buy all and can in and that don't business paying a mean, for how And to on about well very black just as for market way to here, more are not market do not do I and the a it's choosing us, it's They And there regular I in the of where versus a to the it, again, know for I we little else black our people currency can did a – things the with really it's have they obviously Cuba basically seeing in that's mean, corridor Cuba currency. competitors all there's that comment situation. deterioration. it. –

Marcelo Fischer

in the Yes. one ago, I a like lift we remember when for of IMTU. revenues mean, had year and QX QX you large that's very

it's high official close rate Shmuel we As wholesale The low of because would opportunities year, has in then, them doubled. them more black lift and U.S. IDT which type the between revenues in had friends mentioned, family traffic, started to from we and for spread, fiscal IMTU to that margin, than That they cash to remittance them the reasons explained revenue. of card just ask rate ask up come of domestically BXB services almost as for was of economical those was such, buy up market family had an and Cubans right? And the spread Cuba, to the then back of their mobile the most friends the top that basically down these the in top Cuban for and services to U.S. to remit for and

and of comparisons, right, as be will the ago right, progresses, about disappeared most that year So those took of start muted. year comparisons we as that's advantage corridor which we advantage, a having

point, other corridor I look all actually will and in think, if you low-single-digits. fact our of operations have corridors, the now worldwide at you that IMTU Now be increased is it and important revenues that the our - the exclude

Adam Wilk

about you talked of move is I report. quarterly I, for – great approaching buyback. helpful. Last buybacks that can I or as – fiscal are quarterly forward? your think how Wishful that about the doing mean, we've Thank we we what think kind just the of Marcelo and just incredible. unbelievable for and to are given guys the an I units cadence kind year know it. we one Okay. see today, you. I value obviously, understand. me, business That's And

Marcelo Fischer

our it Yeah, our be I mean, in to obviously, buyback continue opportunistic will opportunity, strategies.

into Now or would extent December. not announced when to any we now the may in know further, purchased that go we have may you we early earnings let if you QX,

Adam Wilk

thanks the work again. Gotcha. great Alright. Keep up job. a Well, you and great did

Shmuel Jonas

Sure. Thank you.

Operator

question live. are Berger Retirement. Next with from Sean coming you Adirondack Sean, is

Sean Berger

comment the team and management thank a quarter great congratulations a on fiduciary. to recession to understands I have that want very you time Hi, that also and of a meaning it's just

So that, shareholders. and the return I buyback capital the of appreciate of I appreciate to

you part or because appreciate action knocked there guys say update if the business Straight of and But can I there that regards any that poker inquiry could any included to is least on at appreciate wondering that may you overhang. litigation SEC Just hands – provide whatsoever Path that is be of you is the all believe with after the park, it I update you. I the out of any the stronger they at plan didn't our further the

Shmuel Jonas

Unfortunately, you. that's to lot litigation on thank Well, a I mouth try shut. my have to say, of comment ongoing. but been I've keep not advised really we words to strong

listen going to and for keep once. am shut I my So mouth

not was an So week entire for I from perspective, and we in I excellent job. apologize my answering an your did question. Delaware for

Operator

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

now may You disconnect.

IDT (IDT) 7 Oct 222022 Q4 Earnings call transcript