IDT Corporation (NYSE: IDT), a global provider of fintech, cloud
communications, and traditional communications services, today
reported results for the fourth quarter and full fiscal year 2023,
the three and twelve months ended July 31, 2023.
HIGHLIGHTS
(Throughout this release, unless otherwise
noted, results for the fourth quarter of fiscal year 2023 (4Q23)
are compared to the fourth quarter of fiscal year 2022 (4Q22) and
results for FY2023 are compared to FY2022. All earnings per share
(EPS) and other ‘per share’ results are per diluted share.)
- National Retail
Solutions (NRS) added over 1,700 net active point-of-sale (POS)
terminals during 4Q23 and over 6,300 during FY2023 to reach
approximately 25,700 as of July 31st. Recurring revenue* increased
6% in 4Q23 to $18.8 million led by a 79% increase in merchant
services revenue. FY2023 recurring revenue increased 58% to $71.4
million;
- net2phone added
approximately 12,000 net seats served during 4Q23 and 61,000 during
FY2023 to reach approximately 352,000 as of July 31st. Subscription
revenue* increased 19% in 4Q23 to $17.9 million. FY2023
subscription revenue increased 25% to $66.8 million;
- BOSS Money
remittance volume increased by 42% to 3.79 million transactions
during 4Q23 while revenue increased 36% to $22.3 million led by a
46% increase in retail channel revenue. FY2023 BOSS Money revenue
increased 38% to $76.9 million;
- Consolidated
revenue decreased 8% in 4Q23 to $304 million while consolidated
direct cost of revenue decreased 11% to $211 million. FY2023
consolidated revenue decreased 9% to $1,239 million while the
consolidated direct cost of revenue decreased 15% to $876
million;
- Consolidated
income from operations decreased 38% in 4Q23 to $12.0 million.
FY2023 consolidated income from operations increased 1% to $60.7
million;
- Net income
attributable to IDT decreased 54% in 4Q23 to $8.0 million. FY2023
net income attributable to IDT increased 50% to $40.5 million;
- Consolidated
Adjusted EBITDA** decreased 25% in 4Q23 to $18.1 million. FY2023
consolidated Adjusted EBITDA increased 9% to $86.2 million;
- EPS decreased to
$0.31 in 4Q23 from $0.66 and Non-GAAP EPS** decreased to $0.36 from
$0.67. FY2023 EPS increased to $1.58 from $1.03, and Non-GAAP EPS
increased to $1.86 from $1.12;
- During 4Q23, IDT accelerated its
stock repurchases, buying back 231,416 shares of its Class B common
stock in market transactions for $5.6 million. During FY2023, IDT
repurchased 511,546 Class B shares for $13.1 million. During 1Q24
through October 11th, IDT had repurchased 124,530 shares of Class B
common stock for an aggregate purchase price of $2.8 million.
*See ‘Explanation of Key Performance Metrics’ at
the end of this release.
**Adjusted EBITDA and Non-GAAP EPS are Non-GAAP
financial measures intended to provide useful information that
supplements IDT’s or the relevant segment’s results in accordance
with GAAP. Please refer to the Reconciliation of Non-GAAP Financial
Measures later in this release for an explanation of these terms
and their respective reconciliations to the most directly
comparable GAAP measures.
REMARKS BY SHMUEL JONAS,
CEO
“Our results this quarter were highlighted by
the continued expansion of our three high-growth, high-margin
businesses, while our Traditional Communications segment performed
as expected.
“At NRS, we have ramped up our investment to
accelerate the growth of the NRS terminal and payment networks, and
we delivered record quarterly increases in both net new terminals
and net new NRS Pay accounts. With that tailwind, Merchant Services
Q4 revenue increased 79% year-over-year. Advertising & Data
revenue, while 40% below the year-ago peak, improved sequentially.
Advertising & Data revenue increased 7% from the prior quarter
and is on track for a larger sequential increase in the current
quarter. NRS’ results also reflected our investment in growth
initiatives, including the development of new features and
functionalities that will help us expand our target market to new
verticals within the independent retailer market during the coming
year.
“At net2phone, subscription revenue increased
19% year over year, powered by the increase in seats served and an
increase in average subscription revenue per seat in Latin America.
Here too we are investing in initiatives to expand the business. In
the coming quarters, we are preparing to roll out two exciting
premium services – net2phone AI and Call Center Essentials – that
we expect to enhance ARPU and margins across our markets.
“Within our Fintech segment, BOSS Money, our
international remittance business, continued to benefit from the
synergies between its retail and direct-to-consumer channels, and
from our cross-marketing programs within the larger BOSS ecosystem.
Also in our Fintech segment, we’ve begun enrolling customers in our
new mobile banking app, Elroy. Elroy is replete with innovative
features to help underbanked and unbanked customers integrate into
the U.S. financial mainstream while appealing to anyone who
despises bank fees but appreciates financial convenience, saving
money, and earning interest.
“Within our Traditional Communications segment,
we are working to further streamline the operations of our BOSS
Revolution Calling and IDT Global businesses while pushing new
initiatives to return our IDT Digital Payments business to
growth.”
RESULTS BY SEGMENT
Fiscal Quarters |
|
NRS |
|
|
net2phone |
|
|
Fintech |
|
|
Traditional Communications |
|
(In
millions) |
|
4Q23 |
|
|
3Q23 |
|
|
4Q22 |
|
|
4Q23 |
|
|
3Q23 |
|
|
4Q22 |
|
|
4Q23 |
|
|
3Q23 |
|
|
4Q22 |
|
|
4Q23 |
|
|
3Q23 |
|
|
4Q22 |
|
Revenue |
|
$ |
19.9 |
|
|
$ |
18.1 |
|
|
$ |
19.2 |
|
|
$ |
19.3 |
|
|
$ |
18.4 |
|
|
$ |
16.2 |
|
|
$ |
24.6 |
|
|
$ |
21.8 |
|
|
$ |
18.5 |
|
|
$ |
240.0 |
|
|
$ |
241.0 |
|
|
$ |
274.6 |
|
Direct cost of revenue |
|
$ |
2.1 |
|
|
$ |
2.6 |
|
|
$ |
2.7 |
|
|
$ |
3.1 |
|
|
$ |
3.0 |
|
|
$ |
2.5 |
|
|
$ |
11.0 |
|
|
$ |
9.2 |
|
|
$ |
7.4 |
|
|
$ |
195.2 |
|
|
$ |
195.4 |
|
|
$ |
225.3 |
|
SG&A expense |
|
$ |
15.4 |
|
|
$ |
12.8 |
|
|
$ |
9.5 |
|
|
$ |
15.2 |
|
|
$ |
14.4 |
|
|
$ |
14.0 |
|
|
$ |
14.8 |
|
|
$ |
13.2 |
|
|
$ |
12.5 |
|
|
$ |
26.3 |
|
|
$ |
26.0 |
|
|
$ |
28.9 |
|
Income (loss) from
operations |
|
$ |
1.7 |
|
|
$ |
2.1 |
|
|
$ |
6.7 |
|
|
$ |
(0.7 |
) |
|
$ |
(0.4 |
) |
|
$ |
(1.8 |
) |
|
$ |
(1.9 |
) |
|
$ |
(1.3 |
) |
|
$ |
(1.9 |
) |
|
$ |
14.1 |
|
|
$ |
12.9 |
|
|
$ |
18.0 |
|
Adjusted EBITDA |
|
$ |
2.4 |
|
|
$ |
2.7 |
|
|
$ |
7.1 |
|
|
$ |
0.9 |
|
|
$ |
1.0 |
|
|
$ |
(0.4 |
) |
|
$ |
(1.2 |
) |
|
$ |
(0.6 |
) |
|
$ |
(1.3 |
) |
|
$ |
18.6 |
|
|
$ |
19.7 |
|
|
$ |
20.5 |
|
Fiscal Years |
|
NRS |
|
|
net2phone |
|
|
Fintech |
|
|
Traditional Communications |
|
(In
millions) |
|
FY2023 |
|
|
FY2022 |
|
|
FY2023 |
|
|
FY2022 |
|
|
FY2023 |
|
|
FY2022 |
|
|
FY2023 |
|
|
FY2022 |
|
Revenue |
|
$ |
77.1 |
|
|
$ |
51.3 |
|
|
$ |
72.4 |
|
|
$ |
58.2 |
|
|
$ |
86.6 |
|
|
$ |
64.6 |
|
|
$ |
1,002.7 |
|
|
$ |
1,190.0 |
|
Direct cost of revenue |
|
$ |
8.9 |
|
|
$ |
7.1 |
|
|
$ |
12.0 |
|
|
$ |
10.1 |
|
|
$ |
36.5 |
|
|
$ |
26.1 |
|
|
$ |
818.3 |
|
|
$ |
991.2 |
|
SG&A expense |
|
$ |
51.4 |
|
|
$ |
32.1 |
|
|
$ |
57.3 |
|
|
$ |
54.2 |
|
|
$ |
51.9 |
|
|
$ |
43.1 |
|
|
$ |
107.0 |
|
|
$ |
113.3 |
|
Income (loss) from
operations |
|
$ |
14.4 |
|
|
$ |
11.2 |
|
|
$ |
(2.8 |
) |
|
$ |
(11.1 |
) |
|
$ |
(2.5 |
) |
|
$ |
(6.9 |
) |
|
$ |
61.3 |
|
|
$ |
75.8 |
|
Adjusted EBITDA |
|
$ |
16.8 |
|
|
$ |
12.1 |
|
|
$ |
3.0 |
|
|
$ |
(6.1 |
) |
|
$ |
(1.8 |
) |
|
$ |
(4.6 |
) |
|
$ |
77.5 |
|
|
$ |
85.5 |
|
National Retail Solutions (NRS)
During 4Q23 and 4Q22, the NRS segment
contributed 6.6% and 5.9% of IDT’s consolidated revenue,
respectively. For FY2023 and FY2022, the corresponding
contributions were 6.2% and 3.8%, respectively.
Take-Aways:
- During 4Q23, NRS
added 1,744 net active terminals – a quarterly record. During
FY2023, the network expanded by 6,308 net new terminals.
- During 4Q23, NRS
added 1,661 net payment processing accounts, also a record
quarterly increase. During FY2023, NRS added 5,459 net payment
processing accounts.
- Merchant
Services revenue growth was driven primarily by the increase in net
payment processing accounts.
National Retail Solutions (NRS)(Terminals and
accounts at end of period. $ in millions, except for revenue per
terminal) |
|
|
4Q23 |
|
|
3Q23 |
|
|
4Q22 |
|
|
4Q23-4Q22 (% Δ) |
|
|
FY2023 |
|
|
FY2022 |
|
|
FY2023-FY2022(% Δ) |
|
Terminals and payment
processing accounts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active POS terminals |
|
|
25,700 |
|
|
|
23,900 |
|
|
|
19,400 |
|
|
|
+33 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment processing
accounts |
|
|
15,800 |
|
|
|
14,100 |
|
|
|
10,300 |
|
|
|
+53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring
revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merchant Services and other |
|
$ |
10.3 |
|
|
$ |
8.7 |
|
|
$ |
5.8 |
|
|
|
+79 |
% |
|
|
$ |
32.8 |
|
|
$ |
17.5 |
|
|
|
+88 |
% |
|
Advertising and Data |
|
$ |
6.2 |
|
|
$ |
5.8 |
|
|
$ |
10.3 |
|
|
|
(40 |
|
)% |
|
$ |
30.6 |
|
|
$ |
22.3 |
|
|
|
+37 |
% |
|
SaaS Fees |
|
$ |
2.3 |
|
|
$ |
2.1 |
|
|
$ |
1.6 |
|
|
|
+44 |
% |
|
|
$ |
8.0 |
|
|
$ |
5.6 |
|
|
|
+45 |
% |
|
Total recurring
revenue |
|
$ |
18.8 |
|
|
$ |
16.5 |
|
|
$ |
17.7 |
|
|
|
+6 |
% |
|
|
$ |
71.4 |
|
|
$ |
45.3 |
|
|
|
+58 |
% |
|
POS Terminal Sales |
|
$ |
1.1 |
|
|
$ |
1.6 |
|
|
$ |
1.6 |
|
|
|
(29 |
|
%) |
|
$ |
5.7 |
|
|
$ |
6.0 |
|
|
|
(6 |
|
)% |
Total
revenue |
|
$ |
19.9 |
|
|
$ |
18.1 |
|
|
$ |
19.2 |
|
|
|
+4 |
% |
|
|
$ |
77.1 |
|
|
$ |
51.3 |
|
|
|
+50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monthly average recurring
revenue per terminal* |
|
$ |
253 |
|
|
$ |
237 |
|
|
$ |
316 |
|
|
|
(20 |
|
)% |
|
$ |
264 |
|
|
$ |
226 |
|
|
|
+17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
$ |
1.7 |
|
|
$ |
2.1 |
|
|
$ |
6.7 |
|
|
|
(75 |
|
)% |
|
$ |
14.4 |
|
|
$ |
11.2 |
|
|
|
+29 |
% |
|
Adjusted EBITDA |
|
$ |
2.4 |
|
|
$ |
2.7 |
|
|
$ |
7.1 |
|
|
|
(66 |
|
)% |
|
$ |
16.8 |
|
|
$ |
12.1 |
|
|
|
+38 |
% |
|
net2phone
During 4Q23 and 4Q22, the net2phone segment
contributed 6.3% and 4.9% of IDT’s consolidated revenue,
respectively. For FY2023 and FY2022, the corresponding
contributions were 5.8% and 4.3%, respectively.
net2phone(Seats in thousands at end of
period. $ in millions) |
|
|
4Q23 |
|
|
3Q23 |
|
|
4Q22 |
|
|
4Q23-4Q22 (% Δ, $) |
|
|
FY2023 |
|
|
FY2022 |
|
|
FY2023-FY2022(% Δ, $) |
|
Seats |
|
|
352 |
|
|
|
340 |
|
|
|
291 |
|
|
|
|
+21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription revenue |
|
$ |
17.9 |
|
|
$ |
17.1 |
|
|
$ |
15.1 |
|
|
|
|
+19 |
% |
|
|
$ |
66.8 |
|
|
$ |
53.6 |
|
|
|
|
+25 |
% |
|
Other revenue |
|
$ |
1.4 |
|
|
$ |
1.3 |
|
|
$ |
1.1 |
|
|
|
|
+25 |
% |
|
|
$ |
5.6 |
|
|
$ |
4.6 |
|
|
|
|
+20 |
% |
|
Total
Revenue |
|
$ |
19.3 |
|
|
$ |
18.4 |
|
|
$ |
16.2 |
|
|
|
|
+19 |
% |
|
|
$ |
72.4 |
|
|
$ |
58.2 |
|
|
|
|
+24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
$ |
(0.7 |
) |
|
$ |
(0.4 |
) |
|
$ |
(1.8 |
) |
|
|
+$ |
1.1 |
|
|
|
$ |
(2.8 |
) |
|
$ |
(11.1 |
) |
|
|
+$ |
8.4 |
|
|
Adjusted EBITDA |
|
$ |
0.9 |
|
|
$ |
1.0 |
|
|
$ |
(0.4 |
) |
|
|
+$ |
1.3 |
|
|
|
$ |
3.0 |
|
|
$ |
(6.1 |
) |
|
|
+$ |
9.1 |
|
|
Take-Aways:
- net2phone’s
year-over-year increase in seats served was powered by continued
expansion in key markets led by the U.S., Brazil, and Mexico.
- In 4Q23,
subscription revenue increased 19% year-over-year driven by the
robust increase in seats served.
- In FY2023,
subscription revenue increased 25% compared to FY2022, as the
increase in seats served was augmented by a 3% increase in
subscription revenue per seat including a 6% increase in Latin
American markets.
Fintech
During 4Q23 and 4Q22, the Fintech segment
contributed 8.1% and 5.6% of IDT’s consolidated revenue,
respectively. For FY2023 and FY2022, the corresponding
contributions were 7.0% and 4.7%, respectively.
Fintech(Transactions in thousands. $ in millions
except for revenue per transaction) |
|
|
4Q23 |
|
|
3Q23 |
|
|
4Q22 |
|
|
4Q23-4Q22 (% Δ, $) |
|
|
FY2023 |
|
|
FY2022 |
|
|
FY2023-FY2022(% Δ, $) |
|
BOSS Money Transactions |
|
|
3,793 |
|
|
|
3,274 |
|
|
|
2,670 |
|
|
|
|
+42 |
% |
|
|
|
12,983 |
|
|
|
9,370 |
|
|
|
|
+39 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fintech
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOSS Money |
|
$ |
22.3 |
|
|
$ |
19.4 |
|
|
$ |
16.4 |
|
|
|
|
+36 |
% |
|
|
$ |
76.9 |
|
|
$ |
55.6 |
|
|
|
|
+38 |
% |
|
Other |
|
$ |
2.3 |
|
|
$ |
2.4 |
|
|
$ |
2.1 |
|
|
|
|
+6 |
% |
|
|
$ |
9.7 |
|
|
$ |
9.0 |
|
|
|
|
+7 |
% |
|
Total
Revenue |
|
$ |
24.6 |
|
|
$ |
21.8 |
|
|
$ |
18.5 |
|
|
|
|
+33 |
% |
|
|
$ |
86.6 |
|
|
$ |
64.6 |
|
|
|
|
+34 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenue per
transaction* |
|
$ |
5.87 |
|
|
$ |
5.94 |
|
|
$ |
6.13 |
|
|
$ |
|
(0.26 |
|
) |
|
$ |
5.93 |
|
|
$ |
5.93 |
|
|
|
NC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
$ |
(1.9 |
) |
|
$ |
(1.3 |
) |
|
$ |
(1.9 |
) |
|
|
NC |
|
|
$ |
(2.5 |
) |
|
$ |
(6.9 |
) |
|
|
+$ |
4.4 |
|
|
Adjusted EBITDA |
|
$ |
(1.2 |
) |
|
$ |
(0.6 |
) |
|
$ |
(1.3 |
) |
|
|
+$ |
0.1 |
|
|
|
$ |
(1.8 |
) |
|
$ |
(4.6 |
) |
|
|
+$ |
2.8 |
|
|
Take-Aways:
- In 4Q23, the 42%
increase in BOSS Money transactions included a 47% increase in
retail transactions driven by expansion of the BOSS Money retail
agent network and enhancements to the retailer portal. Digital
transactions increased 41%. In FY2023, transactions increased 39%
including a 41% increase in retail transactions and a 38% increase
in digital transactions.
- BOSS Money
revenue increased 36% in 4Q23 and 38% in FY2023 driven primarily by
cross-marketing within the larger BOSS ecosystem and expansion of
the retail agent network.
Traditional Communications
During 4Q23 and 4Q22, the Traditional Communications segment
contributed 79.0% and 83.6% of IDT’s consolidated revenue,
respectively. For FY2023 and FY2022, the corresponding
contributions were 81.0% and 87.2%, respectively.
Traditional Communications($ in
millions) |
|
|
4Q23 |
|
|
3Q23 |
|
|
4Q22 |
|
|
4Q23-4Q22 (% Δ) |
|
|
FY2023 |
|
|
FY2022 |
|
|
FY2023-FY2022(% Δ) |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDT Digital Payments |
|
$ |
100.8 |
|
|
$ |
101.0 |
|
|
$ |
112.6 |
|
|
|
(10 |
)% |
|
$ |
417.1 |
|
|
$ |
473.2 |
|
|
|
(12 |
)% |
BOSS Revolution Calling |
|
$ |
75.4 |
|
|
$ |
77.6 |
|
|
$ |
90.2 |
|
|
|
(16 |
)% |
|
$ |
322.1 |
|
|
$ |
387.9 |
|
|
|
(17 |
)% |
IDT Global |
|
$ |
55.6 |
|
|
$ |
54.5 |
|
|
$ |
62.9 |
|
|
|
(12 |
)% |
|
$ |
230.3 |
|
|
$ |
292.4 |
|
|
|
(21 |
)% |
Other |
|
$ |
8.2 |
|
|
$ |
7.9 |
|
|
$ |
8.8 |
|
|
|
(7 |
)% |
|
$ |
33.2 |
|
|
$ |
36.5 |
|
|
|
(9 |
)% |
Total
Revenue |
|
$ |
240.0 |
|
|
$ |
241.0 |
|
|
$ |
274.6 |
|
|
|
(13 |
)% |
|
$ |
1,002.7 |
|
|
$ |
1,190.0 |
|
|
|
(16 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
$ |
14.1 |
|
|
$ |
12.9 |
|
|
$ |
18.0 |
|
|
|
(22 |
%) |
|
$ |
61.3 |
|
|
$ |
75.8 |
|
|
|
(19 |
%) |
Adjusted EBITDA |
|
$ |
18.6 |
|
|
$ |
19.7 |
|
|
$ |
20.5 |
|
|
|
(9 |
)% |
|
$ |
77.5 |
|
|
$ |
85.5 |
|
|
|
(9 |
)% |
Take-Aways:
- As in recent
prior quarters, the year-over-year decrease in IDT Digital Payments
revenue was due to the deterioration of a key international mobile
top-up corridor.
- Although BOSS
Revolution Calling and IDT Global’s revenues were relatively
unchanged sequentially, the industry-wide decline in the paid
minute calling markets will continue to impact revenues and cash
flows for the segment in the coming quarters.
NOTES ON FINANCIAL STATEMENTS
Consolidated results for all periods presented
include corporate overhead. Corporate G&A expense in 4Q23
increased to $2.6 million from $1.7 million in 4Q22 reflecting an
increase in audit and accounting fees and higher employee
compensation expense. For FY2023, those same factors as well as
increased non-cash stock-based compensation expense drove an
increase in corporate G&A to $9.3 million from $7.8 million in
FY2022.
As of July 31, 2023, IDT held $152.2 million in
cash, cash equivalents, debt securities, and current equity
investments. Current assets totaled $387.1 million and current
liabilities totaled $294.1 million. IDT had no outstanding debt at
the fiscal year-end.
Net cash provided by operating activities during
4Q23 was $25.4 million compared to $16.1 million during 4Q22.
Exclusive of changes in customer deposit balances at IDT’s
Gibraltar-based bank, net cash provided by operating activities
during 4Q23 was $27.1 million compared to $22.2 million during
4Q22. The increase in net cash provided by operating activities was
primarily due to the timing of operating cash receipts and
payments.
Net cash provided by operating activities during
FY2023 was $54.1 million compared to $29.4 million in FY2022.
Exclusive of changes in customer deposit balances at IDT’s
Gibraltar-based bank, net cash provided by operating activities
during FY2023 was $58.3 million compared to $45.4 million during FY
2022.
Capital expenditures decreased to $5.9 million
in 4Q23 from $8.1 million in 4Q22 and increased to $22.0 million in
FY2023 from $21.9 million in FY2022.
IDT EARNINGS ANNOUNCEMENT AND
SUPPLEMENTAL INFORMATION
This release is available for download in the
“Investors & Media” section of the IDT Corporation website
(https://www.idt.net/investors-and-media) and has been filed on a
current report (Form 8-K) with the SEC.
IDT will host an earnings conference call
beginning at 5:30 PM Eastern today with management’s discussion of
results followed by Q&A with investors. To listen to the call
and participate in the Q&A, dial 1-888-506-0062 (toll-free from
the US) or 1-973-528-0011 (international) and request the IDT
Corporation call (participant access code: 300767).
A replay of the conference call will be
available approximately three hours after the call concludes
through October 24, 2023. To access the call replay, dial
1-877-481-4010 (toll-free from the US) or 1-919-882-2331
(international) and provide this replay passcode: 49120. The replay
will also be accessible via streaming audio at the IDT investor
relations website.
ABOUT IDT CORPORATION
IDT Corporation (NYSE: IDT) is a global provider
of fintech and communications services through a portfolio of
synergistic businesses: National Retail Solutions (NRS),
through its point-of-sale (POS) platform, enables independent
retailers to operate more effectively while providing advertisers
and marketers with unprecedented reach into underserved consumer
markets; net2phone provides enterprises and organizations
with intelligently integrated cloud communications and contact
center services across channels and devices; Our fintech and
neo-banking services include BOSS Money, our popular
international remittance business, as well as other services that
make saving, spending, and sharing money easy and secure; IDT
Digital Payments and BOSS Revolution Calling make
sharing prepaid products and services and speaking with friends and
family around the world convenient and reliable; and, IDT
Global and IDT Express enable communications
services to provision and manage international voice and SMS
messaging.
All statements above that are not purely about
historical facts, including, but not limited to, those in which we
use the words “believe,” “anticipate,” “expect,” “plan,” “intend,”
“estimate,” “target” and similar expressions, are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. While these forward-looking statements
represent our current judgment of what may happen in the future,
actual results may differ materially from the results expressed or
implied by these statements due to numerous important factors. Our
filings with the SEC provide detailed information on such
statements and risks and should be consulted along with this
release. To the extent permitted under applicable law, IDT assumes
no obligation to update any forward-looking statements.
CONTACT
IDT Corporation Investor RelationsBill Ulrey
william.ulrey@idt.net973-438-3838
IDT
CORPORATIONCONSOLIDATED BALANCE
SHEETS
July
31(in thousands, except per share data) |
|
2023Unaudited |
|
|
2022 |
|
ASSETS |
|
|
|
|
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
103,637 |
|
|
$ |
98,352 |
|
Restricted cash and cash equivalents |
|
|
95,186 |
|
|
|
91,210 |
|
Debt securities |
|
|
42,414 |
|
|
|
22,303 |
|
Equity investments |
|
|
6,198 |
|
|
|
17,091 |
|
Trade accounts receivable, net of allowance for doubtful accounts
of $5,642 and $5,328 at July 31, 2023 and 2022, respectively |
|
|
32,092 |
|
|
|
39,525 |
|
Settlement assets, net of reserve of $1,143 and $554 at July 31,
2023 and 2022, respectively |
|
|
32,396 |
|
|
|
31,938 |
|
Disbursement prefunding |
|
|
30,113 |
|
|
|
21,057 |
|
Prepaid expenses |
|
|
16,638 |
|
|
|
17,526 |
|
Other current assets |
|
|
28,394 |
|
|
|
23,625 |
|
TOTAL CURRENT
ASSETS |
|
|
387,068 |
|
|
|
362,627 |
|
Property, plant, and
equipment, net |
|
|
38,655 |
|
|
|
36,866 |
|
Goodwill |
|
|
26,457 |
|
|
|
26,380 |
|
Other intangibles, net |
|
|
8,196 |
|
|
|
9,609 |
|
Equity investments |
|
|
9,874 |
|
|
|
7,426 |
|
Operating lease right-of-use
assets |
|
|
5,540 |
|
|
|
7,210 |
|
Deferred income tax assets,
net |
|
|
24,101 |
|
|
|
36,701 |
|
Other assets |
|
|
10,919 |
|
|
|
10,275 |
|
TOTAL
ASSETS |
|
$ |
510,810 |
|
|
$ |
497,094 |
|
LIABILITIES,
REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY |
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
|
|
|
Trade accounts payable |
|
$ |
22,231 |
|
|
$ |
28,543 |
|
Accrued expenses |
|
|
110,796 |
|
|
|
117,109 |
|
Deferred revenue |
|
|
35,343 |
|
|
|
36,531 |
|
Customer deposits |
|
|
86,481 |
|
|
|
85,764 |
|
Settlement liabilities |
|
|
21,495 |
|
|
|
17,659 |
|
Other current liabilities |
|
|
17,761 |
|
|
|
19,466 |
|
TOTAL CURRENT
LIABILITIES |
|
|
294,107 |
|
|
|
305,072 |
|
Operating lease
liabilities |
|
|
2,881 |
|
|
|
4,606 |
|
Other liabilities |
|
|
3,354 |
|
|
|
6,588 |
|
TOTAL
LIABILITIES |
|
|
300,342 |
|
|
|
316,266 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
Redeemable noncontrolling
interest |
|
|
10,472 |
|
|
|
10,191 |
|
EQUITY: |
|
|
|
|
|
|
|
|
IDT Corporation stockholders’ equity: |
|
|
|
|
|
|
|
|
Preferred stock, $.01 par value; authorized shares—10,000; no
shares issued |
|
|
— |
|
|
|
— |
|
Class A common stock, $.01 par value; authorized shares—35,000;
3,272 shares issued and 1,574 shares outstanding at July 31, 2023
and 2022 |
|
|
33 |
|
|
|
33 |
|
Class B common stock, $.01 par value; authorized shares—200,000;
27,851 and 27,725 shares issued and 23,699 and 24,112 shares
outstanding at July 31, 2023 and 2022, respectively |
|
|
279 |
|
|
|
277 |
|
Additional paid-in capital |
|
|
301,408 |
|
|
|
296,005 |
|
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of
Class A common stock and 4,152 and 3,613 shares of Class B common
stock at July 31, 2023 and 2022, respectively |
|
|
(115,461 |
) |
|
|
(101,565 |
) |
Accumulated other comprehensive loss |
|
|
(17,192 |
) |
|
|
(11,305 |
) |
Retained earnings (accumulated deficit) |
|
|
24,662 |
|
|
|
(15,830 |
) |
Total IDT Corporation stockholders’ equity |
|
|
193,729 |
|
|
|
167,615 |
|
Noncontrolling interests |
|
|
6,267 |
|
|
|
3,022 |
|
TOTAL
EQUITY |
|
|
199,996 |
|
|
|
170,637 |
|
TOTAL LIABILITIES,
REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY |
|
$ |
510,810 |
|
|
$ |
497,094 |
|
IDT CORPORATION
CONSOLIDATED STATEMENTS OF
INCOME
Year
ended July 31(in thousands, except per share data) |
|
2023Unaudited |
|
|
2022 |
|
|
2021 |
|
REVENUES |
|
$ |
1,238,854 |
|
|
$ |
1,364,057 |
|
|
$ |
1,446,990 |
|
COSTS AND
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
Direct cost of revenues (exclusive of depreciation and
amortization) |
|
|
875,734 |
|
|
|
1,034,430 |
|
|
|
1,154,048 |
|
Selling, general and administrative (i) |
|
|
276,891 |
|
|
|
250,481 |
|
|
|
218,467 |
|
Depreciation and amortization |
|
|
20,136 |
|
|
|
18,115 |
|
|
|
17,764 |
|
Severance |
|
|
935 |
|
|
|
116 |
|
|
|
452 |
|
TOTAL COSTS AND
EXPENSES |
|
|
1,173,696 |
|
|
|
1,303,142 |
|
|
|
1,390,731 |
|
Other operating (expense) gain, net |
|
|
(4,415 |
) |
|
|
(826 |
) |
|
|
731 |
|
Income from operations |
|
|
60,743 |
|
|
|
60,089 |
|
|
|
56,990 |
|
Interest income, net |
|
|
3,147 |
|
|
|
146 |
|
|
|
318 |
|
Other (expense) income, net |
|
|
(3,083 |
) |
|
|
(25,352 |
) |
|
|
7,916 |
|
Income before income
taxes |
|
|
60,807 |
|
|
|
34,883 |
|
|
|
65,224 |
|
(Provision for) benefit from income taxes |
|
|
(16,441 |
) |
|
|
(5,878 |
) |
|
|
31,667 |
|
NET
INCOME |
|
|
44,366 |
|
|
|
29,005 |
|
|
|
96,891 |
|
Net income attributable to noncontrolling interests |
|
|
(3,874 |
) |
|
|
(1,977 |
) |
|
|
(416 |
) |
NET INCOME
ATTRIBUTABLE TO IDT CORPORATION |
|
$ |
40,492 |
|
|
$ |
27,028 |
|
|
$ |
96,475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to IDT Corporation common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.59 |
|
|
$ |
1.05 |
|
|
$ |
3.78 |
|
Diluted |
|
$ |
1.58 |
|
|
$ |
1.03 |
|
|
$ |
3.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of
shares used in calculation of earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
25,517 |
|
|
|
25,791 |
|
|
|
25,495 |
|
Diluted |
|
|
25,577 |
|
|
|
26,356 |
|
|
|
26,053 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) Stock-based compensation
included in selling, general and administrative expenses |
|
$ |
4,518 |
|
|
$ |
1,930 |
|
|
$ |
1,490 |
|
IDT
CORPORATIONCONSOLIDATED STATEMENTS OF CASH
FLOWS
Year
ended July 31(in thousands) |
|
2023Unaudited |
|
|
2022 |
|
|
2021 |
|
OPERATING
ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
44,366 |
|
|
$ |
29,005 |
|
|
$ |
96,891 |
|
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
20,136 |
|
|
|
18,115 |
|
|
|
17,764 |
|
Deferred income taxes |
|
|
12,601 |
|
|
|
4,801 |
|
|
|
(32,793 |
) |
Provision for doubtful accounts receivable and reserve for
settlement assets |
|
|
2,198 |
|
|
|
2,330 |
|
|
|
1,782 |
|
Net unrealized loss (gain) from marketable securities |
|
|
3,368 |
|
|
|
18,960 |
|
|
|
(3,262 |
) |
Stock-based compensation |
|
|
4,518 |
|
|
|
1,930 |
|
|
|
1,490 |
|
Other |
|
|
3,175 |
|
|
|
3,379 |
|
|
|
(4,096 |
) |
Changes in assets and
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts receivable |
|
|
4,726 |
|
|
|
(8,279 |
) |
|
|
977 |
|
Settlement assets, disbursement prefunding, prepaid expenses, other
current assets, and other assets |
|
|
(17,503 |
) |
|
|
(21,046 |
) |
|
|
(6,952 |
) |
Trade accounts payable, accrued expenses, settlement liabilities,
other current liabilities, and other liabilities |
|
|
(17,216 |
) |
|
|
(1,110 |
) |
|
|
(264 |
) |
Customer deposits at IDT Financial Services Limited
(Gibraltar-based bank) |
|
|
(4,200 |
) |
|
|
(15,966 |
) |
|
|
(6,906 |
) |
Deferred revenue |
|
|
(2,029 |
) |
|
|
(2,712 |
) |
|
|
1,989 |
|
Net cash provided by operating
activities |
|
|
54,140 |
|
|
|
29,407 |
|
|
|
66,620 |
|
INVESTING
ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(21,958 |
) |
|
|
(21,879 |
) |
|
|
(16,765 |
) |
Payments for acquisitions, net
of cash acquired |
|
|
— |
|
|
|
(7,552 |
) |
|
|
(3,673 |
) |
Cash acquired from acquisition
of interest in variable interest entity |
|
|
— |
|
|
|
— |
|
|
|
3,336 |
|
Purchase of Rafael Holdings,
Inc. Class B common stock and warrant |
|
|
— |
|
|
|
— |
|
|
|
(5,000 |
) |
Exercise of warrant to
purchase shares of Rafael Holdings, Inc. Class B common stock |
|
|
— |
|
|
|
— |
|
|
|
(1,000 |
) |
Purchase of convertible
preferred stock in equity method investment |
|
|
(840 |
) |
|
|
(1,051 |
) |
|
|
(4,000 |
) |
Purchases of debt securities
and equity investments |
|
|
(59,872 |
) |
|
|
(24,454 |
) |
|
|
(43,187 |
) |
Proceeds from maturities and
sales of debt securities and redemption of equity investments |
|
|
49,211 |
|
|
|
21,157 |
|
|
|
26,230 |
|
Net cash used in investing
activities |
|
|
(33,459 |
) |
|
|
(33,779 |
) |
|
|
(44,059 |
) |
FINANCING
ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to
noncontrolling interests |
|
|
(348 |
) |
|
|
(514 |
) |
|
|
(848 |
) |
Payment for acquisition of
warrant in variable interest entity |
|
|
— |
|
|
|
— |
|
|
|
(791 |
) |
Proceeds from other
liabilities |
|
|
300 |
|
|
|
2,301 |
|
|
|
729 |
|
Repayment of other
liabilities |
|
|
(2,037 |
) |
|
|
(1,319 |
) |
|
|
(108 |
) |
Proceeds from sale of
redeemable equity in subsidiary |
|
|
— |
|
|
|
10,000 |
|
|
|
— |
|
Proceeds from borrowings under
revolving credit facility |
|
|
27,383 |
|
|
|
2,566 |
|
|
|
— |
|
Repayments of borrowings under
revolving credit facility |
|
|
(27,383 |
) |
|
|
(2,566 |
) |
|
|
— |
|
Proceeds from exercise of
stock options |
|
|
172 |
|
|
|
137 |
|
|
|
687 |
|
Repurchases of Class B common
stock |
|
|
(13,896 |
) |
|
|
(26,222 |
) |
|
|
(4,192 |
) |
Net cash used in financing
activities |
|
|
(15,809 |
) |
|
|
(15,617 |
) |
|
|
(4,523 |
) |
Effect of exchange rate
changes on cash, cash equivalents, and restricted cash and cash
equivalents |
|
|
4,389 |
|
|
|
(17,365 |
) |
|
|
7,656 |
|
Net increase (decrease) in
cash, cash equivalents, and restricted cash and cash
equivalents |
|
|
9,261 |
|
|
|
(37,354 |
) |
|
|
25,694 |
|
Cash, cash equivalents, and
restricted cash and cash equivalents at beginning of year |
|
|
189,562 |
|
|
|
226,916 |
|
|
|
201,222 |
|
Cash, cash
equivalents, and restricted cash and cash equivalents at end of
year |
|
$ |
198,823 |
|
|
$ |
189,562 |
|
|
$ |
226,916 |
|
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
Cash payments made for interest |
|
$ |
536 |
|
|
$ |
461 |
|
|
$ |
486 |
|
Cash payments made for income taxes |
|
$ |
777 |
|
|
$ |
109 |
|
|
$ |
193 |
|
SUPPLEMENTAL SCHEDULE
OF NON-CASH INVESTING AND FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Conversion of equity method investment’s secured promissory notes
into convertible preferred stock |
|
$ |
4,038 |
|
|
$ |
— |
|
|
$ |
— |
|
Stock issued to certain executive officers for bonus payments |
|
$ |
615 |
|
|
$ |
— |
|
|
$ |
— |
|
Liabilities incurred for acquisitions |
|
$ |
— |
|
|
$ |
7,849 |
|
|
$ |
628 |
|
Shares of the Company’s Class B common stock issued for
acquisition |
|
$ |
100 |
|
|
$ |
1,000 |
|
|
$ |
— |
|
Cashless exercise of stock options in exchange for shares of the
Company’s Class B common stock |
|
$ |
— |
|
|
$ |
14,930 |
|
|
$ |
— |
|
Stock issued for matching contributions to the 401(k) Plan |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,042 |
|
Reconciliation of Non-GAAP Financial
Measures for theFourth Quarter and Full Fiscal
Years 2023 and 2022
In addition to disclosing financial results that
are determined in accordance with generally accepted accounting
principles in the United States of America (GAAP), IDT also
disclosed for 4Q23, 3Q23, 4Q22, and the full fiscal years 2023 and
2022, Adjusted EBITDA and non-GAAP earnings per diluted share
(EPS), both of which are non-GAAP measures.
Generally, a non-GAAP measure is a numerical
measure of a company’s performance, financial position, or cash
flows that either excludes or includes amounts that are not
normally excluded or included in the most directly comparable
measure calculated and presented in accordance with GAAP.
IDT’s measure of non-GAAP EPS is calculated by
dividing non-GAAP net income by the diluted weighted-average
shares. IDT’s measure of non-GAAP net income starts with net income
attributable to IDT in accordance with GAAP and adds severance
expense, stock-based compensation, and other operating expense, and
deducts other operating gains. These additions and subtractions are
non-cash and/or non-routine items in the relevant fiscal 2023 and
fiscal 2022 periods.
Management believes that IDT’s Adjusted EBITDA
and non-GAAP EPS are measures which provide useful information to
both management and investors by excluding certain expenses and
non-routine gains and losses that may not be indicative of IDT’s or
the relevant segment’s core operating results. Management uses
Adjusted EBITDA, among other measures, as a relevant indicator of
core operational strengths in its financial and operational
decision making. In addition, management uses Adjusted EBITDA and
non-GAAP EPS to evaluate operating performance in relation to IDT’s
competitors. Disclosure of these financial measures may be useful
to investors in evaluating performance and allows for greater
transparency to the underlying supplemental information used by
management in its financial and operational decision-making. In
addition, IDT has historically reported similar financial measures
and believes such measures are commonly used by readers of
financial information in assessing performance, therefore the
inclusion of comparative numbers provides consistency in financial
reporting.
Management refers to Adjusted EBITDA, as well as
the GAAP measures income (loss) from operations and net income, on
a segment and/or consolidated level to facilitate internal and
external comparisons to the segments’ and IDT’s historical
operating results, in making operating decisions, for budget and
planning purposes, and to form the basis upon which management is
compensated.
While depreciation and amortization are
considered operating costs under GAAP, these expenses primarily
represent the non-cash current period allocation of costs
associated with long-lived assets acquired or capitalized in prior
periods. IDT’s Adjusted EBITDA, which is exclusive of depreciation
and amortization, is a useful indicator of its current
performance.
Severance expense is excluded from the
calculation of Adjusted EBITDA and non-GAAP EPS. Severance expense
is reflective of decisions made by management in each period
regarding the aspects of IDT’s and its segments’ businesses to be
focused on in light of changing market realities and other factors.
While there may be similar charges in other periods, the nature and
magnitude of these charges can fluctuate markedly and do not
reflect the performance of IDT’s core and continuing
operations.
Other operating (expense) gain, net, which is a
component of income (loss) from operations, is excluded from the
calculation of Adjusted EBITDA and non-GAAP EPS. Other operating
(expense) gain, net includes, among other items, gains from the
write-off of contingent consideration liabilities, legal fees net
of insurance claims related to Straight Path Communications Inc.’s
stockholders’ class action, and expense for the indemnification of
a cable telephony customer related to a legal settlement. From
time-to-time, IDT may have gains or incur costs related to
non-routine legal and other matters, however, these various items
generally do not occur each quarter. IDT believes the gain and
losses from these non-routine matters are not components of IDT’s
or the relevant segment’s core operating results.
Stock-based compensation recognized by IDT and
other companies may not be comparable because of the variety of
types of awards as well as the various valuation methodologies and
subjective assumptions that are permitted under GAAP. Stock-based
compensation is excluded from IDT’s calculation of non-GAAP EPS
because management believes this allows investors to make more
meaningful comparisons of the operating results per share of IDT’s
core business with the results of other companies. However,
stock-based compensation will continue to be a significant expense
for IDT for the foreseeable future and an important part of
employees’ compensation that impacts their performance.
Adjusted EBITDA and non-GAAP EPS should be
considered in addition to, not as a substitute for, or superior to,
income (loss) from operations, cash flow from operating activities,
net income, basic and diluted earnings per share or other measures
of liquidity and financial performance prepared in accordance with
GAAP. In addition, IDT’s measurements of Adjusted EBITDA and
non-GAAP EPS may not be comparable to similarly titled measures
reported by other companies.
Following are reconciliations of Adjusted EBITDA
and non-GAAP EPS to the most directly comparable GAAP measure,
which are, (a) for Adjusted EBITDA, income (loss) from operations
for IDT’s reportable segments and net income for IDT on a
consolidated basis, and (b) for non-GAAP EPS, diluted earnings per
share.
IDT CorporationReconciliation of Net
Income to Adjusted EBITDA(unaudited) in millions. Figures
may not foot or cross-foot due to rounding to millions
|
|
Total IDT Corporation |
|
|
Traditional Communica-tions |
|
|
net2phone |
|
|
NRS |
|
|
Fintech |
|
|
Corporate |
|
Three Months Ended
July 31, 2023(4Q23) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to IDT
Corporation |
|
$ |
8.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
noncontrolling interests |
|
|
0.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
8.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
3.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
|
12.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net |
|
|
(1.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense, net |
|
|
0.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations |
|
|
12.0 |
|
|
$ |
14.1 |
|
|
$ |
(0.7 |
) |
|
$ |
1.7 |
|
|
$ |
(1.9 |
) |
|
$ |
(1.2 |
) |
Depreciation and amortization |
|
|
5.1 |
|
|
|
2.3 |
|
|
|
1.5 |
|
|
|
0.7 |
|
|
|
0.7 |
|
|
|
- |
|
Severance |
|
|
0.5 |
|
|
|
0.4 |
|
|
|
0.1 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Other operating expense, net |
|
|
0.5 |
|
|
|
1.8 |
|
|
|
0.1 |
|
|
|
- |
|
|
|
- |
|
|
|
(1.4 |
) |
Adjusted EBITDA |
|
$ |
18.1 |
|
|
$ |
18.6 |
|
|
$ |
0.9 |
|
|
$ |
2.4 |
|
|
$ |
(1.2 |
) |
|
$ |
(2.6 |
) |
IDT CorporationReconciliation of Net
Income to Adjusted EBITDA(unaudited) in millions. Figures
may not foot or cross-foot due to rounding to millions
|
|
Total IDT Corporation |
|
|
Traditional Communica-tions |
|
|
net2phone |
|
|
NRS |
|
|
Fintech |
|
|
Corporate |
|
Three Months Ended
April 30, 2023(3Q23) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to IDT
Corporation |
|
$ |
6.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
noncontrolling interests |
|
|
0.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
7.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
3.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
|
10.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net |
|
|
(0.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense, net |
|
|
0.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations |
|
|
10.4 |
|
|
$ |
12.9 |
|
|
$ |
(0.4 |
) |
|
$ |
2.1 |
|
|
$ |
(1.3 |
) |
|
$ |
(2.9 |
) |
Depreciation and amortization |
|
|
5.2 |
|
|
|
2.5 |
|
|
|
1.4 |
|
|
|
0.6 |
|
|
|
0.7 |
|
|
|
- |
|
Severance |
|
|
0.1 |
|
|
|
0.1 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Other operating expense, net |
|
|
4.8 |
|
|
|
4.1 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.6 |
|
Adjusted EBITDA |
|
$ |
20.5 |
|
|
$ |
19.7 |
|
|
$ |
1.0 |
|
|
$ |
2.7 |
|
|
$ |
(0.6 |
) |
|
$ |
(2.3 |
) |
|
|
Total IDT Corporation |
|
|
Traditional Communica-tions |
|
|
net2phone |
|
|
NRS |
|
|
Fintech |
|
|
Corporate |
|
Three Months Ended
July 31, 2022(4Q22) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to IDT
Corporation |
|
$ |
17.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
noncontrolling interests |
|
|
0.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
18.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefit from income taxes |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
|
18.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
0.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense, net |
|
|
1.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations |
|
|
19.2 |
|
|
$ |
18.0 |
|
|
$ |
(1.8 |
) |
|
$ |
6.7 |
|
|
$ |
(1.9 |
) |
|
$ |
(1.9 |
) |
Depreciation and amortization |
|
|
4.8 |
|
|
|
2.4 |
|
|
|
1.4 |
|
|
|
0.4 |
|
|
|
0.6 |
|
|
|
- |
|
Other operating expense, net |
|
|
0.1 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.1 |
|
Adjusted EBITDA |
|
$ |
24.1 |
|
|
$ |
20.5 |
|
|
$ |
(0.4 |
) |
|
$ |
7.1 |
|
|
$ |
(1.3 |
) |
|
$ |
(1.7 |
) |
IDT CorporationReconciliation of Net
Income to Adjusted EBITDA(unaudited) in millions. Figures
may not foot or cross-foot due to rounding to millions
|
|
Total IDT Corporation |
|
|
Traditional Communica-tions |
|
|
net2phone |
|
|
NRS |
|
|
Fintech |
|
|
Corporate |
|
Year Ended July 31,
2023 (FY 2023) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to IDT
Corporation |
|
$ |
40.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
noncontrolling interests |
|
|
3.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
44.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
16.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
|
60.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net |
|
|
(3.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense, net |
|
|
3.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations |
|
|
60.7 |
|
|
$ |
61.3 |
|
|
$ |
(2.8 |
) |
|
$ |
14.4 |
|
|
$ |
(2.5 |
) |
|
$ |
(9.7 |
) |
Depreciation and amortization |
|
|
20.1 |
|
|
|
9.4 |
|
|
|
5.6 |
|
|
|
2.4 |
|
|
|
2.7 |
|
|
|
- |
|
Severance |
|
|
0.9 |
|
|
|
0.9 |
|
|
|
0.1 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Other operating expense (gain), net |
|
|
4.4 |
|
|
|
5.9 |
|
|
|
0.1 |
|
|
|
- |
|
|
|
(1.9 |
) |
|
|
0.3 |
|
Adjusted EBITDA |
|
$ |
86.2 |
|
|
$ |
77.5 |
|
|
$ |
3.0 |
|
|
$ |
16.8 |
|
|
$ |
(1.8 |
) |
|
$ |
(9.3 |
) |
|
|
Total IDT Corporation |
|
|
Traditional Communica-tions |
|
|
net2phone |
|
|
NRS |
|
|
Fintech |
|
|
Corporate |
|
Year Ended July 31,
2022 (FY 2022) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to IDT
Corporation |
|
$ |
27.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
noncontrolling interests |
|
|
2.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
29.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
5.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
|
34.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net |
|
|
(0.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense, net |
|
|
25.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations |
|
|
60.1 |
|
|
$ |
75.8 |
|
|
$ |
(11.1 |
) |
|
$ |
11.2 |
|
|
$ |
(6.9 |
) |
|
$ |
(8.9 |
) |
Depreciation and amortization |
|
|
18.1 |
|
|
|
9.5 |
|
|
|
5.4 |
|
|
|
0.9 |
|
|
|
2.2 |
|
|
|
0.1 |
|
Severance |
|
|
0.1 |
|
|
|
0.1 |
|
|
|
- |
|
|
|
- |
|
|
|
0.1 |
|
|
|
- |
|
Other operating expense (gain), net |
|
|
0.8 |
|
|
|
0.1 |
|
|
|
(0.3 |
) |
|
|
- |
|
|
|
- |
|
|
|
1.0 |
|
Adjusted EBITDA |
|
$ |
79.1 |
|
|
$ |
85.5 |
|
|
$ |
(6.1 |
) |
|
$ |
12.1 |
|
|
$ |
(4.6 |
) |
|
$ |
(7.8 |
) |
IDT CorporationReconciliation of
Earnings per share to Non-GAAP EPS(unaudited) in millions,
except per share data. Figures may not foot due to rounding to
millions.
|
|
4Q23 |
|
|
3Q23 |
|
|
4Q22 |
|
|
FY 2023 |
|
|
FY 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to IDT
Corporation |
|
$ |
8.0 |
|
|
$ |
6.9 |
|
|
$ |
17.2 |
|
|
$ |
40.5 |
|
|
$ |
27.0 |
|
Adjustments (add): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
(1.0 |
) |
|
|
(1.7 |
) |
|
|
(0.1 |
) |
|
|
(4.5 |
) |
|
|
(1.9 |
) |
Severance expense |
|
|
(0.5 |
) |
|
|
(0.1 |
) |
|
|
(0.1 |
) |
|
|
(0.9 |
) |
|
|
(0.1 |
) |
Other operating expense,
net |
|
|
(0.5 |
) |
|
|
(4.8 |
) |
|
|
(0.1 |
) |
|
|
(4.4 |
) |
|
|
(0.8 |
) |
Total adjustments |
|
|
(2.0 |
) |
|
|
(6.6 |
) |
|
|
(0.3 |
) |
|
|
(9.8 |
) |
|
|
(2.8 |
) |
Income tax effect of total
adjustments |
|
|
(0.7 |
) |
|
|
(1.8 |
) |
|
|
- |
|
|
|
(2.6 |
) |
|
|
(0.4 |
) |
|
|
|
1.3 |
|
|
|
4.8 |
|
|
|
0.3 |
|
|
|
7.2 |
|
|
|
2.4 |
|
Non-GAAP net income |
|
$ |
9.3 |
|
|
$ |
11.7 |
|
|
$ |
17.5 |
|
|
$ |
47.7 |
|
|
$ |
29.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.31 |
|
|
$ |
0.27 |
|
|
$ |
0.66 |
|
|
$ |
1.59 |
|
|
$ |
1.05 |
|
Total adjustments |
|
|
0.06 |
|
|
|
0.19 |
|
|
|
0.01 |
|
|
|
0.28 |
|
|
|
0.09 |
|
Non-GAAP - basic |
|
$ |
0.37 |
|
|
$ |
0.46 |
|
|
$ |
0.67 |
|
|
$ |
1.87 |
|
|
$ |
1.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of
shares used in calculation of basic earnings per share |
|
|
25.4 |
|
|
|
25.5 |
|
|
|
26.0 |
|
|
|
25.5 |
|
|
|
25.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
0.31 |
|
|
$ |
0.27 |
|
|
$ |
0.66 |
|
|
$ |
1.58 |
|
|
$ |
1.03 |
|
Total adjustments |
|
|
0.05 |
|
|
|
0.19 |
|
|
|
0.01 |
|
|
|
0.28 |
|
|
|
0.09 |
|
Non-GAAP - diluted |
|
$ |
0.36 |
|
|
$ |
0.46 |
|
|
$ |
0.67 |
|
|
$ |
1.86 |
|
|
$ |
1.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of
shares used in calculation of diluted earnings per share |
|
|
25.5 |
|
|
|
25.6 |
|
|
|
26.1 |
|
|
|
25.6 |
|
|
|
26.4 |
|
*Explanation of Key Performance Metrics
NRS’ recurring revenue is NRS’ revenue in
accordance with GAAP excluding revenue from POS terminal sales.
NRS’ Monthly Average Recurring Revenue per Terminal is a financial
metric. Monthly Average Recurring Revenue per Terminal is
calculated by dividing NRS’ recurring revenue by the average number
of active POS terminals during the period. The average number of
active POS terminals is calculated by adding the beginning and
ending number of active POS terminals during the period and
dividing by two. NRS’ recurring revenue divided by the average
number of active POS terminals is divided by three when the period
is a fiscal quarter. Recurring revenue and Monthly Average
Recurring Revenue per Terminal are useful for comparisons of NRS’
revenue and revenue per customer to prior periods and to
competitors and others in the market, as well as for forecasting
future revenue from the customer base.
BOSS Money’s Average Revenue per Transaction is
also a financial metric. Average Revenue per Transaction is
calculated by dividing BOSS Money’s revenue in accordance with GAAP
by the number of transactions during the period. Average Revenue
per Transaction is useful for comparisons of BOSS Money’s revenue
per transaction to prior periods and to competitors and others in
the market, as well as for forecasting future revenue based on
transaction trends.
net2phone’s subscription revenue is its revenue
in accordance with GAAP excluding its equipment revenue and revenue
generated by a legacy SIP trunking offering in Brazil. net2phone’s
cloud communications offerings are priced on a per-seat basis, with
customers paying based on the number of users in their
organization. The number of seats served and subscription revenue
trends and comparisons between periods are used in the analysis of
net2phone’s revenues and direct cost of revenues, and are strong
indications of the top-line growth and performance of the
business.
# # #
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