IDT - Earnings call 2 2024 | IDT Corporation

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Operator

Good evening, and welcome to IDT Corporation's Second 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 January 31, 2024.

[Operator Instructions] After Mr. Jonas' remarks, Marcelo Fischer, IDT's Chief Financial Officer, will join Mr. Q&A. for Jonas

that made These obligation remarks statements or SEC. or conference, in are which and either in differ either limited or results Any reports risks update that in IDT differ from IDT those not and they and assumes materially in may during with periodically may uncertainties the the materially prepared specific statements no those uncertainties to, forward-looking that risks to to or are that the forecast. the company to general made cause any Q&A actual that the actual nature, to to anticipates. forward-looking uncertainties files have the subject results this cause may risks from session, specific factors but discussed they whether update make include,

to the The A or non-GAAP income IDT's In net share. per measures, in in adjusted income release EBITDA, and adjusted non-GAAP per reconciles also filed may to and available EBITDA, Relations including their the Q&A SEC. on on of non-GAAP X-K Investor corresponding Corporation Please note GAAP net share has that release the the the IDT earnings non-GAAP schedule page IDT make with earnings reference earnings session, presentation provided the non-GAAP the is earnings measures. release IDT website. earnings nearest Form been management

Mr. now will I Jonas. the to over conference turn

Samuel Jonas

to IDT's Welcome conference much. very you Thank earnings call.

X My ended quarter our January today of fiscal year remarks focused months XXXX, the on is second the XX.

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

surpassing by highlighted $XXX our continued milestone. the and was million Money BOSS growth businesses quarter of revenue annual with rate both NRS run second expansion The the

not will want be better. where expense it expect it for However, get and quarter, I I was to our management the

have per terminal. per this quarter quarter. approximately growth Money net results related robust year-over-year improving and costs We recurring and merchant impressive debt, to services revenues continued with quarter. We another Pay network revenue revenue SaaS EBITDA new the in revenue onetime strong added again fintech NRS NRS quarter. deliver NRS the delivered services did adjusted to economics which account. affected saw to merchant terminals X,XXX of BOSS growth. segment XX% our our We some breakeven to achieve helped for Its bad increased

our more key to in our directly has secure and continued for an to to to customers that option MasterCard. to end, recently we convenient growth business or this customers. been transfers money through the money commitment recipient's our Visa the send And faster, One making accounts U.S.-based for bank introduced

will many are this have and to in corridors destinations We the we offering where expanding customer in service launched coming the other the seeing remittance good response be months.

and increased I less with am another XX% growth consolidated we gross also increasing gross of to measure achieve Together, and adjusted subscription propelled IDT CapEx. profit segments which quarter netXphone flow combined our year-over-year cash EBITDA as very breakeven, revenue record pleased margin. achieving

generate flows. within businesses cash continued The communications our to traditional segment strong

the have company-wide. we overhead our within operations our on Over past on streamlining and businesses few been very months, focused our reducing and

in of the and the will You see benefits efforts these third beyond. quarter

remain increase to come. Meanwhile, line line, to those continue become robust need fund to to NRS, and we decision no impacts. BOSS longer initiate flows Money new from to investments to bottom cash their Now to organic In years growth. they traditional significant we to business and have them cash context contributors netXphone a cash our provide to expect expect I our our bottom quarterly Board's want to aggregate, some dividend. for continue

flexibility sheet, in and other as including our next opportunities scout The results the of growth of generation other to us of countries development our balance which and early-stage with we exciting for operational enhanced initiatives invest provides in and strength add our our services. liquidity, our

felt and light our stock should that which we of In outlook, Board stockholders. to financial program our quarter-to-quarter, can opportunistic regular supplement the dividend of our ongoing robust buyback, position with vary positive from payments predictable

To possible our for up, I wrap these hard worldwide support. our thank make at want all Board offices to to our their employees thank their work results for and

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

Operator

Corient. with [Operator Instructions] [ comes Vaughan The question William first from ]

Unknown Analyst

And that Congratulations in terms in wanted the on what ask about are to the terms different of of you opportunities to in businesses What I consumer out of in trends be, segments of business or you terms marketplace? you're seeing seeing are for in what consumer NRS business. the terms acquisition would just expanding great in different for inflation? type spending, a base question seeing quarter. follow-up the of

Samuel Jonas

data first mean say a I insights our Good put the thing would monthly team question. NRS provides. Well, I that is report called we out

up. we a I it mean give But which it, I from looking I'll If don't you probably pieces look couple -- it. base away give of publish you I highlights can report you're get, don't the I give you before you to the for. suggest think I from are the -- want just

-- versus The sales stores a were say X.X% ] February price the it's standpoint, last bit. increased pretty So year would And from X.X%. [ doing average are February I February inflation I of for increases well, that as year, this overall, definitely, think an year-over-year. quite moderated that not same-store

However, X more. there day was

but -- that. normalize sure think for might not we I'm So I

January, And normalized think I we once think out, then it's for take bump. I that. a if it it's recent from was there X.X% actually

picture from up big X.X%. I the were sales the Those think, numbers insights. are about our

the comes rest the on Friday, you You of read report can can out -- when it.

of on and and lot projects a with to we're far large where very being the As say looking as we business would pace really at, that, in are we're I happy there. acquisitions any that mean, looking worked we I netXphone, that of going is the not the that make acquisitions. types think we're have internally,

side recently decided ahead and grow to a in and had not then our to ended not been qualifications, sort In on we're line up the one and countries not we've in The new us them. adding gain we and verticals? for looked relatively remittance at countries in or will that go that really help two looking at looking we the so acquisitions expand or business, But that of with channels strong our possibly of into certain fitting market bottom always does upon. we're new it the help foothold

know just acquisition in are space that an help the acquisitions NRS, -- say to inorganically. on we that's maybe vertical. would there small but to at. grow that we [indiscernible] things think us technology we organically. going not we growing focused far as pretty really I as exciting, I things As continue well, try some We into to overall, and that do are get we're looking made But more to we're

Operator

The next comes from question Jason Lustig.

Jason Lustig

how curious spin-off thinking NRS being just and them or spin-offs netXphone in both going breakeven of you're of potential free forward. light about or flow Guys, better cash

Samuel Jonas

even things, the of would on in I mean, I to think anything big I foresees that imminently. piece how Investor is still It's weak you're far that our about still netXphone market judged the I the though do area. as I The we're them a we're well. particularly strong particularly I the looking vertical, Day, in talked best. has market get mean, a think been as for say not when -- not really by companies amongst verticals, you in

comment I is company. one I But As make And going can't independent it a it to now. to continue right time for is, great it valuable think to for become more today. it's think spin that NRS, on day, when we that much to I that than build off

Operator

coming Corient. a follow-up have Vaughan from We William with Instructions] [ [Operator ]

Unknown Analyst

just a follow-up. I So have

transfer Money volume You annual been a the mentioned, transaction can that scale, have is and business, through. reach in where or to to BOSS getting the this so during the profitability getting that key might scale you getting business meeting money the

you're So profitability profitability think, reaching long-term the going side? fintech EBITDA you're that talk and the adjusted quarter, that could point feel what the you future of a where get more to you seeing like there be I can you've in you And bit about the breakeven of, of reached little think this business? with scale trends do

Samuel Jonas

to said pace million the It's would we simple part as been growing getting that I see question of sort to we we think. mean, from million of of to that we I like business is, $XX not grow of a over you at, to $XX said think, that X at years. the next continue it answer of the say we've sort What as business I X if to, could profitability would the half it

that how want on thing it's customers I say you're invest strong more much like growing and in. would depending acquiring back not one all is verticals as to The into you

Vietnam. but ways doing I So no to really Vietnam, mean, pick there's it. volume to X Today, into wanted country, Vietnam. If can get we of we you pick any have

You of how the customers to a profits can sort it. to larger you base spend once lot maximize to more customers, to or have out can on either then company and than another hope on figure has and acquire you overpaying that get volume a Vietnam you'll that acquiring you the payout of side

business our But profitable we of part sort calling be verticals on, or another. to much our penetration be more really our and it's growing to trying going of already to place top-up focused approach business. to customers move and definitely really we've like from trying that of taken So in on in business the had one a

know don't I mean, I that So answers question. your if

anything to But add Marcelo, maybe? have you do

Marcelo Fischer

EBITDA generating part revenue. of just X the a the terms for X bit business, is and of last say, context business, William, probably is than little BOSS have give obviously, that $X I BOSS million of money fintech would share last Money, in in EBITDA the the And the segment Money, now the to positive more been transfer lion's quarters months. that, now more positive

is and well using segment, doing is EBITDA it BOSS Gibraltar that investments cusp bank. which other have scales. But the at it's growing that grow will extent, some as in operate continue now full full of funding our Bank, We license the the Money So EBITDA to to right? to

have We online online our Biobank. banking, bank, initiatives Royal in

at this pre-revenue requires We're investment. from those money kind neo So stage point. of flow they're and cash transfer this the investing of kind with initiatives now Gibraltar, at bank, in the

and make transfer of probably few in XX%, did others going supplement topic in to And last do the than money believe lot in to money lot months good the sense higher getting transfer looked hugely have But at the back organically to scale. scale that terms comments, with We've around on more But an we matters acquisition your for We acquisitions of focused earlier that in XX% excellent, that profitability space. will the able growing clip, growing the been at a better industry. is a to been has us. industry. being of reaching in which that

few them, opportunities in area. And looked If far met we maybe we look at right, some our the to going one as future a we have mentioned, look at criteria. to at not continue of so that we're

Operator

[Operator investor. Instructions] a question coming Bill ], Monet We [ have from private a

Unknown Attendee

I Just a are question, rapidly. see fairly building balances cash

it. big do stated have now businesses plan the point. will I and for guess that the a small for be I fairly it It guys self-funded. You a of up and building that you seem not rapidly, Do plans doesn't you cash? million this $X at any seem are part about acquisitions put the to in know year many to that seems be dividend, uses there's be have

Samuel Jonas

either that's really buybacks, the acquisitions X main or places. stock mean I

Operator

It questions further we in no looks have like queue.

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

disconnect. now may You

IDT (IDT) 6 Mar 242024 Q2 Earnings call transcript