IDT - Earnings call 1 2024 | IDT Corporation

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Operator

Good evening, and welcome to the IDT Corporation's First Quarter Fiscal Year 2024 Earnings Call. In today's presentation, IDT's management will discuss IDT's financial and operational results for the 3-month period ended October 31, 2023.

During remarks by IDT's Chief Executive Officer, Samuel 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. are statements remarks this session, actual or or in forward-looking in call, whether results Q&A. Any and anticipates. specific prepared risks from the in nature, the to for differ made may those conference during either general uncertainties materially Jonas 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 they any non-GAAP their or differ make to non-GAAP statements actual earnings IDT that net to that In made assumes either presentation they schedule may those in or loss no IDT's to have forward-looking reference per the may update they obligation forecast. results from materially measures, the may Q&A or share. A make factors non-GAAP management that EBITDA, income session, to and or cause adjusted including release and nearest to now the loss the EBITDA, release the adjusted non-GAAP Investor on X-K IDT in of Corporation is GAAP measures. income corresponding share earnings will website. per the release available the Please Mr. note net Jonas. IDT Form provided that page has also or SEC. I earnings on Relations reconciles earnings to earnings non-GAAP The over been the conference filed with the IDT turn

Samuel Jonas

the fiscal XXXX, call. today will remarks year My focus months very you conference XX. first to operator. much, quarter the earnings Thank ended of IDT's Welcome on October X

we our from our earnings that expect filed the the today. quarter, our first detailed XX-K release file week For for a with of and please today discussion financial and to a results operational SEC more earlier read Form

In of margin record in quarter, relatively the basis businesses netXphone high-margin Money, helped steadily while first gross a in retail profit strong contributors a the increase NRS BOSS point Calling year-over-year, revenue increased transfer transactions initiated Money the lines, gross the expected. more and expansion quarter, been and segment XX% apps rapid Communications Our paid-minute on year-over-year. BOSS X are Retail businesses businesses our continued cash while performed top has ongoing accelerating and the becoming year-over-year channel. digital bottom of our significant delivered as in revenue primary growth first transfer high-growth, the our Traditional money drove BOSS our and Revolution of by while profit. They generation XX% channel growth XXX revenue increased channel money to grow BOSS clip, at the resilient. Money for to

experience top in made we of are we money and to BOSS growth. our the both continue investment money date improve of in that Money's in paying money transfer to transfer customers, agents the line user for expectation digital retailer is and the in early investment Much in the We see innings robust only that -- off we've growth.

in to expanding and to helping expand expect bottom continue of SaaS increases of we merchant in propelled trend gross a revenue profitability. to income realize advertising more out-of-home we upgrade expand, the operations quarter As which digital its has our million and revenues, since by of in first and services close. NRS to drive the a the revenue in benefit and the quarter. recovery increased line data was sequentially, while continued gradual and fee network accounts, profit space, $X.X advertising existing strong record seasonal accelerated NRS the advertising tailwinds from our

growth, $X.X NetXphone our was the CCaaS significant gradually EBITDA flow and previously, formats their to of offerings positive. the in of excited become customer also top business while as help and million sequential I've the delivered steady drive higher are new business. potential of about economics are unit a I'm the part mentioned some us ARPU, that introducing We near more long-term positive of base margin, its process scales line strengthening and cash and POS expansion. NetXphone higher adjusted generated

Beta Now received in our the customers. quarter, and it netXphone been by has rollout second of AI underway, very well is

calling our We functionalities and bunch our We're look help plans that innovate added netXphone At and AI forthcoming features and drive features. margin feel and new and new hard meaningful netXphone's not we've just and in a BOSS growth very ARPU Revolution will optimistic working premium exciting of of offerings, Calling, businesses. redesigned products are the very and popular expansion. app to to

have advertising have as and result. already placements it nice begun from generate app, introduced also we into a revenue We to the some

help on product offerings, our segment. This to of our out the paid-minute Communications in to focus preserve also Traditional in effort investing will our operations and In wringing we to and especially despite line overhead our continued expected quarters continue It new streamlining of cash addition growth initiatives in our existing generation declines. significant costs continue ahead, businesses their new top innovative the promising in businesses. allows products

in to of stock stockholders XXX,XXX first returned the value common $X.X also our shares approximately repurchasing B We directly million. Class for quarter,

Going opportunistically. shares forward, continue to we'll purchase

head quarter you for well the want of IDT wrap We of wish and thank you employees, our families to as fiscal family. a do year second I positioned we into for up, and stockholders very are season each the holiday To our joyous everything very their XXXX.

I'd to and take questions. happy be Now your Marcelo

Operator

from comes with Partners. Chris The Emmett question first Instructions] [Operator Liu

Chris Liu

Congrats the quarter. on

questions few around FinTech a and more specifically BOSS Just Money.

talk BOSS could is cost? On the or first about Money part, much customer SG&A FinTech acquisition how SG&A of you

Samuel Jonas

But the I have me. in a in approximately marketing, we're of don't say terms I would of that front quarter. spending million probably number $X

other are -- that's into besides main but mean I customer -- go So one. the there acquisition marketing, costs that but

Chris Liu

that. follow-up to Understood. I a guess And then

thoughts at In spend? on how Obviously, growing the and payback accelerating your and advertising terms curious just well? there. marketing are digital this guys payback, of you looking you're I'm retail as

Samuel Jonas

well not some particularly as needed at is I funnel the money and where reliable the in a relaunched I we market that necessarily an are our that of that known transfer it transfer therefore, educate over to that transfer only Again, industry, though one you is the we company, for sort say, to really think money a we're months. And retail, fact up. fact come we're really to mean, more we on can of even a is that's of the I'll on the need company number and the XX a company, name people there's educate money and just company top last marketing education like not of calling top known

Marcelo Fischer

agents Samuel what been aggressively add Marcelo. grow But said, And of channel, of we number to of network. We digital is XX% on into now that indeed, roughly our it's a reference our go growing of that our have added acquisition as Chris, just most to. we marketing channel, -- almost the in made fiscal retail grew continue to digital by number the in during retailer almost fiscal 'XX. cost we rate at Samuel And the agents 'XX. we in the

So month takes until agent usually, that the agent, in a is agent. It growth monitoring number associated organic are profit compliance, with to the making in a when he's opening a our up costs agent collections that the about retailer onboard or agents about a don't subaccount averaging network, that X,XXX retailer takes And time. transactions we an a to ramp and real and because XXX there time an start store. we of on transactions investment relating credit, for average

and we BOSS and that a not hope great more are that is set product retail now in to investment channel at eventually transfer, real we is a channel right? Our the great cost bring really retail are seeing clip but only use will our customers customers transactions, a we at a of way driving doing does growing in low of for digital. results, Pin-less point IMTU to also our that's on money lot onboard retail entry a into It's BOSS because [ also investing channel, ecosystem. in the channel customers to continue and So ] that a our been

Operator

[Operator comes Momentum Instructions] Alonzo next Financial. with [ The from question Nigel ]

Unknown Analyst

In netXphone the I should SG&A fixed daily how could number for fixed netXphone. are fixed was of the is maintenance that these of SG&A and to it about cash? and you referenced like for that would NRS rest and SG&A it the and that number? growth business you SG&A a Or NRS SG&A removed the is you the presentations, this a need? Is wondering previous we be think run operation allocating growth have just

Samuel Jonas

past businesses. our and NRS products even that seen growth, we down in think I've think you've to I slightly fixed our even ever relatively don't keep set accelerate going are careful in And SG&A. our as this this quarter, I we SG&A that very I mean to previously SG&A a quarter. flat, we've add growth past new the be on stated as it relates to that continue

will increase. variable being the and business it Money NRS the well the -- both is the have to business results. it line That our that as business always BOSS said, the grows, being That SG&A is bring will bottom netXphone goal as bigger said, SG&A

sure very we're on as So fixed the that focused as SG&A is making possible. tight

Marcelo Fischer

Right. that let's take one on bit, a at just little time. If I could expand a

scales. IP that channel netXphone, netXphone of So as subscribers actual material have part the to as the acquisition, as phone amounts commissions the subscription terms variable well to agents in and cost cost does space to physical of our our pay [ we business as that of in case of upfront the ] of related primarily of that deploy market cost we

overhead netXphone. In netXphone and business sense scale quite of as NRS that NRS, our on acquisitions costs the of overhead the of cost fixed are or grow. been much, bottom of right, almost We've our much a are in spent monitored the that, fixed kind continuously acquisitions. we lower the even business keeping different, profitability -- seeing fixed in as have opposite continues the stable for of in of model the difference, to compared what However, scale the to aggressively. business case the benefits because And line of that makes as it's been grows that really very the the

marketing, certain the business netXphone the be small of are of as And small. immediate bottom NRS that line to those and those relative scales. That leveraged EBITDA having both relate business. And see most to relatively businesses you're of the cost significantly business us relatively impact of seeing why amount fixed those a of system. of there both So needs that's to the NRS overhang, grow, but you they commissions, to also some acquisitions is as

Unknown Analyst

had couple specific Then questions. Okay. Understood. of netXphone I a

what's customers expansion how you hoping you own? expansion? old And maximum? the Are right And the and you more on platform the platform migrate another your that customers the for the once you minimum is two to to questions -- So get margin much that margin in new the old gross netXphone, one a netXphone? [indiscernible], now range of the be the with length of one contract backlog have that of the what's would

Samuel Jonas

So them going order. answer I'm just to them to I'm going in remember them. particular not I answer as

mean, as the the of say, customers move platform. I get to try of on the as take the exactly it the, can. But to answer. terms customers we varies to backlog, I depending usually, I'll particular nature don't In on complicated active we longer quickly have netXphone

So months of depending on to can that days, we we have that customers little long as can wait the as have complexity X migration. X X wait can their as customers and as

functionality, do per far As margin some for the $X reason the own. our a we about to move the costs expansion, experience it. it being onto the user a about us rented that of not that's $X are want of platform platforms it we probably customers to expansion get want to that our reason little have is of say, it's -- we not to margin The the improved our is old to do the really customers. going customers as rented older said, that bit That off there when

I think forgot... I one might question. more you have asked

Unknown Analyst

the item about And clarify lengths. an let Yes, contract me there.

its meant backlog your the already you that So what signed is yet be have customers to by with and are paid. contracts I

that to will that where those has be collected. in be paid in So the backlog That's the future.

Samuel Jonas

the pay have some monthly the of customers customers to on billed know contracts, monthly. I question. majority but We a answer So our of vast annual don't do are most mean basis. that I our

So payment. not huge terms there's backlog a in of

but as depending we far years, length specific users. little X the as contracts, year the of most and as X the tend As contracts the have country on to be

Marcelo Fischer

right? We total in of The basis. how a on defining payment right? overwhelming majority Samuel is customers correct, monthly our backlog, you And have

are on that, believe going the we revenue and what we in XX,XXX on have to So targeting than is last we No of XX,XXX likely as achieve seats several like real quarterly sheet. terms trying usually to we X that more of deferred in quarters, trend of roughly for month well. forward terms backlog, have reality adding about the the is balance been that. And that

a launched higher of about improvements Now the portion as with to customers products regular -- than the CCaaS portfolio we as and customer. ARPU also ARPU is because we Xx ARPU larger gradually CCaaS larger a ARPU X become as of total

Unknown Analyst

I quarter, Last And of acquisition I think Good. you I Okay. asked referenced any on the side. outflows to acquisitions. small seen dedicated haven't M&A. a haven't about NRS money

if any provide that be you updates can would appreciated. greatly So

Samuel Jonas

small. very not it's It's It -- will material. be not

Operator

Instructions] [Operator Okay.

have no further questions in We queue.

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

now disconnect. may You

IDT (IDT) 4 Dec 232024 Q1 Earnings call transcript