IDT Corporation (NYSE: IDT), a global provider of fintech, cloud
communications, and traditional communications services, today
reported results for the first quarter of its fiscal year 2023, the
three months ended October 31, 2022.
FIRST QUARTER FISCAL
YEAR 2023 HIGHLIGHTS
(Throughout this release, unless otherwise
noted, results for the first quarter of fiscal year 2023 (1Q23) are
compared to the first quarter of fiscal year 2022 (1Q22). All
earnings per share (EPS) and other ‘per share’ results are per
diluted share unless otherwise noted.
Effective August 1, 2022, IDT revised its
reportable business segments. Results of a new NRS segment were
previously included in the Fintech segment and certain lines of
business were reclassified to the Fintech segment from the
Traditional Communications segment. Comparative segment information
has been reclassified and restated in all periods presented.)
- National Retail
Solutions (NRS) recurring revenue* increased 107% to $17.8 million.
Active POS terminals increased by approximately 1,400 during 1Q23
to approximately 20,800 at the end of the quarter;
- BOSS Money
remittance revenue increased 45% to $17.6 million. Transaction
volume increased by 35% to 2.87 million;
- net2phone
increased subscription revenue* 33% to $15.5 million and achieved
positive Adjusted EBITDA. Seats served increased by 18,000
sequentially to end 1Q23 with approximately 309,000;
- Consolidated
revenue decreased 13% to $322 million, mostly as a result of a 20%
decrease in the Traditional Communications segment’s revenue;
- Consolidated income from operations
increased 47% to $20.2 million;
- Net income
attributable to IDT increased to $11.0 million from a net loss of
$2.5 million. The loss in the year-ago quarter included an
unrealized $12.5 million loss on the mark-to-market value of the
Company’s investment in Rafael Holdings, Inc.’s Class B common
stock;
- Consolidated Adjusted EBITDA
increased 33% to $24.3 million; and
- EPS increased to
$0.43 from a loss per share of $0.10. Non-GAAP EPS increased to
$0.43 from a loss per share of $0.08;
- During 1Q23, IDT
repurchased 203,436 shares of its Class B common stock in the open
market for approximately $5 million.
Adjusted EBITDA, Non-GAAP net income (loss), and
Non-GAAP EPS are Non-GAAP measures intended to provide useful
information that supplements IDT’s or the relevant segment’s
results in accordance with GAAP. Please refer to the Reconciliation
of Non-GAAP Financial Measures later in this release for an
explanation of these terms and their respective reconciliations to
the most directly comparable GAAP measure. Please see the final
page of this release for the explanation of asterisked key
performance metrics.
REMARKS BY SHMUEL JONAS,
CEO
“In the first quarter, we achieved our second
consecutive quarter of record Adjusted EBITDA. Our rapidly
expanding NRS, BOSS Money and net2phone businesses contributed
twenty-five percent of our consolidated Adjusted EBITDA in the
period, and their continued expansion positions us for
significantly enhanced profitability in the coming years.
“We are focused on improving the bottom-line
performance of all our businesses. And this quarter both net2phone
and the Fintech segment, which now primarily tracks the performance
of our BOSS Money remittance business, turned the corner and
generated positive Adjusted EBITDA. NRS also had another very good
quarter, more than tripling its Adjusted EBITDA contribution
compared to the year-ago quarter.”
CONSOLIDATED RESULTS
Results(in millions, except
EPS) |
|
|
1Q23 |
|
|
|
4Q22 |
|
|
|
1Q22 |
|
|
|
1Q23 - 1Q22 change (%/$) |
|
Revenue |
|
$ |
322 |
|
|
$ |
329 |
|
|
$ |
370 |
|
|
|
(13.0 |
)% |
Direct cost of revenue |
|
$ |
232 |
|
|
$ |
238 |
|
|
$ |
292 |
|
|
|
(20.6 |
)% |
SG&A expense |
|
$ |
66 |
|
|
$ |
67 |
|
|
$ |
60 |
|
|
|
+9.6% |
|
Depreciation and
amortization |
|
$ |
4.8 |
|
|
$ |
4.8 |
|
|
$ |
4.4 |
|
|
|
+7.7% |
|
Income from operations |
|
$ |
20.2 |
|
|
$ |
19.2 |
|
|
$ |
13.8 |
|
|
|
+46.8% |
|
Net income (loss) attributable
to IDT |
|
$ |
11.0 |
|
|
$ |
17.2 |
|
|
$ |
(2.5 |
) |
|
|
+$13.5 |
|
Adjusted EBITDA |
|
$ |
24.3 |
|
|
$ |
24.1 |
|
|
$ |
18.4 |
|
|
|
+32.5% |
|
EPS |
|
$ |
0.43 |
|
|
$ |
0.66 |
|
|
$ |
(0.10 |
) |
|
|
+$0.53 |
|
Non-GAAP net income
(loss) |
|
$ |
10.9 |
|
|
$ |
17.5 |
|
|
$ |
(2.2 |
) |
|
|
+$13.1 |
|
Non-GAAP EPS |
|
$ |
0.43 |
|
|
$ |
0.67 |
|
|
$ |
(0.08 |
) |
|
|
+$0.51 |
|
RESULTS BY SEGMENT
A table later in this release provides
additional quarterly results by segment including those impacted by
the reclassification referred to earlier in this release: NRS,
Fintech, and Traditional Communications. Results for the net2phone
segment were not impacted by the reclassification.
(in
millions) |
|
NRS |
|
|
net2phone |
|
|
Fintech |
|
|
Traditional Communications |
|
|
|
1Q23 |
|
|
|
1Q22 |
|
|
|
1Q23 |
|
|
|
1Q22 |
|
|
|
1Q23 |
|
|
|
1Q22 |
|
|
|
1Q23 |
|
|
|
1Q22 |
|
Revenue |
|
$ |
19.3 |
|
|
$ |
10.1 |
|
|
$ |
17.0 |
|
|
$ |
12.9 |
|
|
$ |
19.9 |
|
|
$ |
14.2 |
|
|
$ |
265.7 |
|
|
$ |
332.9 |
|
Direct cost of revenue |
|
$ |
2.0 |
|
|
$ |
1.4 |
|
|
$ |
2.8 |
|
|
$ |
2.5 |
|
|
$ |
8.3 |
|
|
$ |
6.0 |
|
|
$ |
218.5 |
|
|
$ |
281.8 |
|
SG&A expense |
|
$ |
11.6 |
|
|
$ |
7.1 |
|
|
$ |
13.8 |
|
|
$ |
13.3 |
|
|
$ |
11.1 |
|
|
$ |
9.3 |
|
|
$ |
27.4 |
|
|
$ |
28.3 |
|
Income (loss) from
operations |
|
$ |
5.2 |
|
|
$ |
1.3 |
|
|
$ |
(1.1 |
) |
|
$ |
(4.2 |
) |
|
$ |
1.5 |
|
|
$ |
(1.6 |
) |
|
$ |
17.3 |
|
|
$ |
20.3 |
|
Adjusted EBITDA |
|
$ |
5.7 |
|
|
$ |
1.5 |
|
|
$ |
0.3 |
|
|
$ |
(2.9 |
) |
|
$ |
0.5 |
|
|
$ |
(1.0 |
) |
|
$ |
19.7 |
|
|
$ |
22.8 |
|
NRS
National Retail Solutions (NRS) is an operator
of a nationwide point-of-sale (POS) network providing independent
retailers with store management software, and with credit, debit,
and other electronic payment processing as well as ancillary
merchant services. NRS’ POS platform provides marketers with
digital out-of-home (DOOH) advertising and transaction data.
In 1Q23 and 1Q22, NRS contributed 6.0% and 2.7%
of IDT’s consolidated revenue, respectively.
NRS Results($ in thousands - except per
terminal figures. Terminals and accounts at end of
period) |
|
|
|
1Q23 |
|
|
|
4Q22 |
|
|
|
1Q22 |
|
|
|
1Q23-1Q22 change % |
|
Terminals and payment
processing accounts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POS terminals |
|
|
20,800 |
|
|
|
19,400 |
|
|
|
15,200 |
|
|
|
+37% |
|
Payment processing
accounts |
|
|
11,300 |
|
|
|
10,300 |
|
|
|
6,800 |
|
|
|
+66% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring
revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising & Data |
|
$ |
9,695 |
|
|
$ |
10,316 |
|
|
$ |
4,306 |
|
|
|
+125% |
|
Merchant Services and
other |
|
$ |
6,370 |
|
|
$ |
5,766 |
|
|
$ |
3,112 |
|
|
|
+105% |
|
SaaS fees |
|
$ |
1,760 |
|
|
$ |
1,591 |
|
|
$ |
1,187 |
|
|
|
+48% |
|
Total recurring
revenue |
|
$ |
17,825 |
|
|
$ |
17,673 |
|
|
$ |
8,605 |
|
|
|
+107% |
|
POS terminal sales |
|
$ |
1,488 |
|
|
$ |
1,551 |
|
|
$ |
1,467 |
|
|
|
+1% |
|
Total
revenue |
|
$ |
19,313 |
|
|
$ |
19,224 |
|
|
$ |
10,072 |
|
|
|
+92% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monthly average recurring
revenue per terminal* |
|
$ |
296 |
|
|
$ |
316 |
|
|
$ |
196 |
|
|
|
+51% |
|
NRS
Take-Aways:
- The
year-over-year increases in NRS’ revenue and income from operations
reflect increases in high-margin recurring revenue categories led
by Advertising & Data, as well as the significant expansion of
the NRS POS network.
- In November
2022, NRS announced a partnership with Uber Technologies, Inc.,
enabling NRS retailers to offer same-day delivery to their
customers by utilizing Uber Direct. Deliveries will be provided at
no cost to the NRS retailer when the purchases are made through the
BR Club app.
Fintech
The Fintech segment comprises BOSS Money, a
provider of international money remittances as well as other,
significantly smaller financial services businesses.
In 1Q23 and 1Q22, the Fintech segment
contributed 6.2% and 3.8% of IDT’s consolidated revenue,
respectively.
Fintech Revenue($ in
thousands) |
|
|
|
1Q23 |
|
|
|
4Q22 |
|
|
|
3Q22 |
|
|
|
2Q22 |
|
|
|
1Q22 |
|
BOSS Money |
|
$ |
17,554 |
|
|
$ |
16,354 |
|
|
$ |
15,084 |
|
|
$ |
12,029 |
|
|
$ |
12,094 |
|
Other |
|
$ |
2,333 |
|
|
$ |
2,195 |
|
|
$ |
2,131 |
|
|
$ |
2,571 |
|
|
$ |
2,136 |
|
Total Revenue |
|
$ |
19,887 |
|
|
$ |
18,549 |
|
|
$ |
17,215 |
|
|
$ |
14,599 |
|
|
$ |
14,230 |
|
Fintech
Take-Aways:
- BOSS Money
transaction volumes increased 35% in 1Q23 to 2.87 million from 2.13
million in 1Q22.
- BOSS Money
revenue increased 45% in 1Q23 to $17.6 million from $12.1 million
in 1Q22 as a result of the increase in transaction volumes and
average revenue per transaction.
- BOSS Money
average revenue per transaction* increased 7.5% in 1Q23 to $6.11
from $5.69 in 1Q22. The increase was driven by the development and
introduction of new platform functionalities enabling more flexible
and granular pricing strategies.
- Fintech income
from operations increased to $1.5 million in 1Q23 from a loss from
operations of $1.6 million in 1Q22. The increase reflects in part
the impacts of both temporary, favorable FX market conditions in
certain US/Africa corridors and a gain of $1.6 million from the
write-off of a portion of a prior period acquisition-related
contingent consideration payment obligation during 1Q23.
- Adjusted EBITDA
increased to $0.5 million from an Adjusted EBITDA loss of $1.0
million in 1Q22.
- In September,
BOSS Money initiated a collaboration with United Bank for Africa
(UBA) to enable customers to send U.S. dollars for direct deposit
at any of the approximately 20 million UBA accounts in
Nigeria.
net2phone
In 1Q23 and 1Q22, the net2phone segment
accounted for 5.3% and 3.5% of IDT’s consolidated revenue,
respectively.
net2phone
Take-aways:
- Total seats on
October 31, 2022 increased by 6% to 309,000 from 291,000 on July
31, 2022. Seats increased 26% from 244,000 a year earlier. The
year-over-year increase included the addition of approximately
8,000 CCaaS seats.
- Subscription
revenue increased 33% in 1Q23 to $15.5 million from $11.7 million
in 1Q22, led by particularly strong growth in the U.S. market.
Subscription revenue per seat continued to increase in both South
and North America – the former despite the strengthening of the
U.S. dollar relative to most South American currencies – as
net2phone focused on higher-value customers and channel
partners.
- Loss from
operations in 1Q23 decreased to $1.1 million from a loss of $4.2
million in 1Q22, and Adjusted EBITDA was $296 thousand compared to
negative Adjusted EBITDA of $2.9 million. The improvements reflect
better unit economics as the business scales and revenue increases,
a tight focus on cost control, and more focused investment in
customer acquisition on markets with the highest returns on
investment.
- In August 2022,
net2phone was named a UCaaS growth and innovation leader in Latin
America and the Caribbean by Frost & Sullivan, which placed
net2phone in the top quadrant of the Frost RadarTM: Unified
Communications as a Service Market in Latin America and the
Caribbean, 2022.
Traditional Communications
In 1Q23 and 1Q22, the Traditional Communications
segment accounted for 82.5% and 90.0% of IDT’s consolidated
revenue, respectively.
Traditional
Communications
Take-Aways:
- Mobile Top-Up
(MTU) revenue decreased 15% in 1Q23 to $109.0 million from $128.5
million in 1Q22. The decrease reflected the industry-wide
deterioration in a key corridor that was particularly impactful in
the wholesale and retail channels. Excluding this corridor, MTU
revenue would have increased 4.7% year-over-year.
- BOSS Revolution
Calling revenue decreased 19% in 1Q23 to $86.3 million from $106.0
million in 1Q22. The decrease reflects the long-standing
industry-wide decline in the paid minute calling markets that
paused during the initial stages of the COVID pandemic but have
since accelerated.
- IDT Global’s
carrier services revenue decreased 31% in 1Q23 to $61.6 million
from $89.2 million in 1Q22.
REPORTABLE BUSINESS SEGMENTS –
QUARTERLY
RESULTS
The table below provides additional quarterly
results for IDT’s segments including those impacted by the
reclassification of certain lines of business within NRS, Fintech,
and Traditional Communications.
($ in thousands) |
|
Business Segments - Quarterly Results |
|
|
|
|
1Q21 |
|
|
|
2Q21 |
|
|
|
3Q21 |
|
|
|
4Q21 |
|
|
|
1Q22 |
|
|
|
2Q22 |
|
|
|
3Q22 |
|
|
|
4Q22 |
|
|
|
1Q23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NRS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
4,930 |
|
|
$ |
5,217 |
|
|
$ |
6,384 |
|
|
$ |
8,217 |
|
|
$ |
10,072 |
|
|
$ |
10,620 |
|
|
$ |
11,383 |
|
|
$ |
19,224 |
|
|
$ |
19,313 |
|
Direct Cost of Revenue |
|
$ |
1,139 |
|
|
$ |
971 |
|
|
$ |
1,325 |
|
|
$ |
1,410 |
|
|
$ |
1,419 |
|
|
$ |
1,293 |
|
|
$ |
1,730 |
|
|
$ |
2,687 |
|
|
$ |
1,972 |
|
SG&A |
|
$ |
3,995 |
|
|
$ |
4,743 |
|
|
$ |
4,586 |
|
|
$ |
6,312 |
|
|
$ |
7,146 |
|
|
$ |
7,086 |
|
|
$ |
8,368 |
|
|
$ |
9,457 |
|
|
$ |
11,632 |
|
(Loss) income from
Operations |
|
($ |
317 |
) |
|
($ |
635 |
) |
|
$ |
305 |
|
|
$ |
394 |
|
|
$ |
1,347 |
|
|
$ |
2,058 |
|
|
$ |
1,078 |
|
|
$ |
6,725 |
|
|
$ |
5,231 |
|
Adjusted EBITDA |
|
($ |
204 |
) |
|
($ |
497 |
) |
|
$ |
474 |
|
|
$ |
495 |
|
|
$ |
1,507 |
|
|
$ |
2,241 |
|
|
$ |
1,285 |
|
|
$ |
7,080 |
|
|
$ |
5,709 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fintech |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
16,907 |
|
|
$ |
15,239 |
|
|
$ |
12,886 |
|
|
$ |
12,587 |
|
|
$ |
14,230 |
|
|
$ |
14,599 |
|
|
$ |
17,215 |
|
|
$ |
18,549 |
|
|
$ |
19,887 |
|
Direct Cost of Revenue |
|
$ |
5,154 |
|
|
$ |
5,610 |
|
|
$ |
4,839 |
|
|
$ |
6,185 |
|
|
$ |
5,952 |
|
|
$ |
6,138 |
|
|
$ |
6,591 |
|
|
$ |
7,397 |
|
|
$ |
8,281 |
|
SG&A |
|
$ |
8,183 |
|
|
$ |
8,989 |
|
|
$ |
9,152 |
|
|
$ |
9,573 |
|
|
$ |
9,326 |
|
|
$ |
10,177 |
|
|
$ |
11,170 |
|
|
$ |
12,458 |
|
|
$ |
11,071 |
|
Income (loss) from
Operations |
|
$ |
3,227 |
|
|
$ |
279 |
|
|
($ |
1,436 |
) |
|
($ |
4,017 |
) |
|
($ |
1,595 |
) |
|
($ |
2,271 |
) |
|
($ |
1,112 |
) |
|
($ |
1,909 |
) |
|
$ |
1,511 |
|
Adjusted EBITDA |
|
$ |
3,571 |
|
|
$ |
640 |
|
|
($ |
1,104 |
) |
|
($ |
3,171 |
) |
|
($ |
1,048 |
) |
|
($ |
1,715 |
) |
|
($ |
546 |
) |
|
($ |
1,306 |
) |
|
$ |
534 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net2phone |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
9,702 |
|
|
$ |
10,866 |
|
|
$ |
11,445 |
|
|
$ |
12,490 |
|
|
$ |
12,913 |
|
|
$ |
13,535 |
|
|
$ |
15,555 |
|
|
$ |
16,182 |
|
|
$ |
16,950 |
|
Direct Cost of Revenue |
|
$ |
2,076 |
|
|
$ |
2,020 |
|
|
$ |
2,177 |
|
|
$ |
2,401 |
|
|
$ |
2,468 |
|
|
$ |
2,389 |
|
|
$ |
2,649 |
|
|
$ |
2,547 |
|
|
$ |
2,841 |
|
SG&A |
|
$ |
10,419 |
|
|
$ |
11,207 |
|
|
$ |
11,831 |
|
|
$ |
12,680 |
|
|
$ |
13,309 |
|
|
$ |
13,046 |
|
|
$ |
13,819 |
|
|
$ |
14,010 |
|
|
$ |
13,813 |
|
(Loss) from Operations |
|
($ |
3,880 |
) |
|
($ |
3,658 |
) |
|
($ |
3,965 |
) |
|
($ |
3,958 |
) |
|
($ |
4,193 |
) |
|
($ |
2,866 |
) |
|
($ |
2,257 |
) |
|
($ |
1,817 |
) |
|
($ |
1,056 |
) |
Adjusted EBITDA |
|
($ |
2,793 |
) |
|
($ |
2,360 |
) |
|
($ |
2,563 |
) |
|
($ |
2,591 |
) |
|
($ |
2,865 |
) |
|
($ |
1,899 |
) |
|
($ |
913 |
) |
|
($ |
374 |
) |
|
$ |
296 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Traditional
Comms |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
311,886 |
|
|
$ |
308,443 |
|
|
$ |
343,116 |
|
|
$ |
356,675 |
|
|
$ |
332,868 |
|
|
$ |
298,304 |
|
|
$ |
284,200 |
|
|
$ |
274,608 |
|
|
$ |
265,666 |
|
Direct Cost of Revenue |
|
$ |
264,806 |
|
|
$ |
260,544 |
|
|
$ |
292,455 |
|
|
$ |
300,937 |
|
|
$ |
281,787 |
|
|
$ |
247,505 |
|
|
$ |
236,595 |
|
|
$ |
225,283 |
|
|
$ |
218,542 |
|
SG&A |
|
$ |
27,399 |
|
|
$ |
27,390 |
|
|
$ |
27,879 |
|
|
$ |
26,603 |
|
|
$ |
28,298 |
|
|
$ |
28,500 |
|
|
$ |
27,633 |
|
|
$ |
28,866 |
|
|
$ |
27,429 |
|
Income from Operations |
|
$ |
16,083 |
|
|
$ |
19,232 |
|
|
$ |
20,083 |
|
|
$ |
26,629 |
|
|
$ |
20,328 |
|
|
$ |
19,897 |
|
|
$ |
17,579 |
|
|
$ |
18,022 |
|
|
$ |
17,263 |
|
Adjusted EBITDA |
|
$ |
19,681 |
|
|
$ |
20,509 |
|
|
$ |
22,781 |
|
|
$ |
29,136 |
|
|
$ |
22,783 |
|
|
$ |
22,299 |
|
|
$ |
19,973 |
|
|
$ |
20,458 |
|
|
$ |
19,695 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
G&A |
|
$ |
2,147 |
|
|
$ |
1,969 |
|
|
$ |
1,702 |
|
|
$ |
1,725 |
|
|
$ |
2,027 |
|
|
$ |
2,262 |
|
|
$ |
1,783 |
|
|
$ |
1,741 |
|
|
$ |
1,919 |
|
(Loss) from Operations |
|
($ |
1,864 |
) |
|
($ |
2,294 |
) |
|
($ |
1,115 |
) |
|
($ |
2,121 |
) |
|
($ |
2,110 |
) |
|
($ |
3,004 |
) |
|
($ |
1,960 |
) |
|
($ |
1,852 |
) |
|
($ |
2,724 |
) |
Adjusted EBITDA |
|
($ |
2,147 |
) |
|
($ |
1,969 |
) |
|
($ |
1,702 |
) |
|
($ |
1,725 |
) |
|
($ |
2,027 |
) |
|
($ |
2,262 |
) |
|
($ |
1,783 |
) |
|
($ |
1,741 |
) |
|
($ |
1,919 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTES ON FINANCIAL
STATEMENTS
Consolidated results for all periods presented
include corporate overhead. Corporate G&A expense in 1Q23
decreased to $1.9 million from $2.0 million in 1Q22.
As of October 31, 2022, IDT held $137.1 million
in cash, cash equivalents, debt securities, and current equity
investments. Current assets totaled $361.1 million and current
liabilities totaled $292.8 million. IDT had no outstanding debt at
quarter end.
Net cash provided by operating activities during
1Q23 was $18.2 million compared to net cash used in operating
activities of $5.9 million during 1Q22. Exclusive of changes in
customer deposit balances at our Gibraltar-based bank, net cash
provided by operating activities during 1Q23 was $15.3 million
compared to $7.2 million during 1Q22.
Capital expenditures increased to $5.2 million
in 1Q23 from $4.4 million in 1Q22.
IDT EARNINGS ANNOUNCEMENT & 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 6:00 PM Eastern with management’s discussion of
results, outlook, and strategy 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: 820449).
A replay of the conference call will be
available approximately three hours after the call concludes
through December 19, 2022. 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 number: 47065. The replay
will also be accessible via streaming audio at the IDT investor
relations website.
ABOUT
IDT:
IDT Corporation (NYSE: IDT) is a global provider
of fintech, cloud communications, and traditional communications
services. We make it easy for families to contact and support each
other across international borders. We also enable businesses to
transact and communicate with their customers with enhanced
intelligence and insight.
Our BOSS Money international remittance, IDT
Digital Payments and BOSS Revolution international calling services
make sending money, paying for products and services, and speaking
with friends and family around the world convenient and reliable.
National Retail Solutions’ (NRS) point-of-sale retail network
enables independent retailers to operate and process transactions
more effectively while providing advertisers and consumer marketers
with unprecedented reach into underserved consumer markets.
net2phone’s communications-as-a-service solutions provide
businesses with intelligently integrated cloud communications and
collaboration tools across channels and devices. Our IDT Global and
IDT Express wholesale offerings enable communications service
enterprises to provision and manage international voice and SMS
services.
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 CORPORATION
CONSOLIDATED BALANCE SHEETS
|
|
October 31, 2022 |
|
|
July 31, 2022 |
|
|
|
(Unaudited) |
|
|
|
|
|
|
(in thousands) |
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
107,895 |
|
|
$ |
98,352 |
|
Restricted cash and cash equivalents |
|
|
90,880 |
|
|
|
91,210 |
|
Debt securities |
|
|
19,811 |
|
|
|
22,303 |
|
Equity investments |
|
|
9,369 |
|
|
|
17,091 |
|
Trade accounts receivable, net of allowance for doubtful accounts
of $6,193 at October 31, 2022 and $5,882 at July 31, 2022 |
|
|
57,875 |
|
|
|
64,315 |
|
Disbursement prefunding |
|
|
28,356 |
|
|
|
21,057 |
|
Prepaid expenses |
|
|
15,057 |
|
|
|
17,526 |
|
Other current assets |
|
|
31,834 |
|
|
|
30,773 |
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
361,077 |
|
|
|
362,627 |
|
Property, plant, and equipment, net |
|
|
37,425 |
|
|
|
36,866 |
|
Goodwill |
|
|
26,250 |
|
|
|
26,380 |
|
Other intangibles, net |
|
|
9,103 |
|
|
|
9,609 |
|
Equity investments |
|
|
6,916 |
|
|
|
7,426 |
|
Operating lease right-of-use assets |
|
|
6,737 |
|
|
|
7,210 |
|
Deferred income tax assets, net |
|
|
33,029 |
|
|
|
36,701 |
|
Other assets |
|
|
10,156 |
|
|
|
10,275 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
490,693 |
|
|
$ |
497,094 |
|
|
|
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Trade accounts payable |
|
$ |
31,670 |
|
|
$ |
29,080 |
|
Accrued expenses |
|
|
107,374 |
|
|
|
117,109 |
|
Deferred revenue |
|
|
35,383 |
|
|
|
36,531 |
|
Customer deposits |
|
|
83,614 |
|
|
|
85,764 |
|
Other current liabilities |
|
|
34,715 |
|
|
|
36,588 |
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
292,756 |
|
|
|
305,072 |
|
Operating lease liabilities |
|
|
4,175 |
|
|
|
4,606 |
|
Other liabilities |
|
|
4,999 |
|
|
|
6,588 |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
301,930 |
|
|
|
316,266 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
Redeemable noncontrolling interest |
|
|
10,324 |
|
|
|
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 October 31,
2022 and July 31, 2022 |
|
|
33 |
|
|
|
33 |
|
Class B common stock, $.01 par value; authorized shares—200,000;
27,765 and 27,725 shares issued and 23,935 and 24,112 shares
outstanding at October 31, 2022 and July 31, 2022,
respectively |
|
|
278 |
|
|
|
277 |
|
Additional paid-in capital |
|
|
297,191 |
|
|
|
296,005 |
|
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of
Class A common stock and 3,830 and 3,613 shares of Class B common
stock at October 31, 2022 and July 31, 2022, respectively |
|
|
(106,906 |
) |
|
|
(101,565 |
) |
Accumulated other comprehensive loss |
|
|
(11,672 |
) |
|
|
(11,305 |
) |
Accumulated deficit |
|
|
(4,828 |
) |
|
|
(15,830 |
) |
|
|
|
|
|
|
|
|
|
Total IDT Corporation stockholders’ equity |
|
|
174,096 |
|
|
|
167,615 |
|
Noncontrolling interests |
|
|
4,343 |
|
|
|
3,022 |
|
|
|
|
|
|
|
|
|
|
Total equity |
|
|
178,439 |
|
|
|
170,637 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
490,693 |
|
|
$ |
497,094 |
|
IDT
CORPORATIONCONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited)
|
|
Three Months EndedOctober
31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
(in thousands, except per share data) |
|
|
|
|
|
Revenues |
|
$ |
321,816 |
|
|
$ |
370,083 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
Direct cost of revenues (exclusive of depreciation and
amortization) |
|
|
231,636 |
|
|
|
291,625 |
|
Selling, general and administrative (i) |
|
|
65,864 |
|
|
|
60,113 |
|
Depreciation and amortization |
|
|
4,790 |
|
|
|
4,446 |
|
Severance |
|
|
100 |
|
|
|
38 |
|
Total costs and expenses |
|
|
302,390 |
|
|
|
356,222 |
|
Other operating gain (expense), net |
|
|
800 |
|
|
|
(88 |
) |
Income from operations |
|
|
20,226 |
|
|
|
13,773 |
|
Interest income, net |
|
|
509 |
|
|
|
13 |
|
Other expense, net |
|
|
(3,842 |
) |
|
|
(16,216 |
) |
Income (loss) before income
taxes |
|
|
16,893 |
|
|
|
(2,430 |
) |
(Provision for) benefit from income taxes |
|
|
(4,338 |
) |
|
|
85 |
|
Net income (loss) |
|
|
12,555 |
|
|
|
(2,345 |
) |
Net (income) attributable to noncontrolling interests |
|
|
(1,553 |
) |
|
|
(133 |
) |
Net income (loss) attributable
to IDT Corporation |
|
$ |
11,002 |
|
|
$ |
(2,478 |
) |
Earnings (loss) per share
attributable to IDT Corporation common stockholders: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.43 |
|
|
$ |
(0.10 |
) |
Diluted |
|
$ |
0.43 |
|
|
$ |
(0.10 |
) |
Weighted-average number of
shares used in calculation of earnings (loss) per share: |
|
|
|
|
|
|
|
|
Basic |
|
|
25,603 |
|
|
|
25,566 |
|
Diluted |
|
|
25,616 |
|
|
|
25,566 |
|
|
|
|
|
|
|
|
|
|
(i) Stock-based compensation
included in selling, general and administrative expenses |
|
$ |
572 |
|
|
$ |
285 |
|
IDT
CORPORATIONCONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
Three Months EndedOctober
31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
(in thousands) |
|
Operating activities |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
12,555 |
|
|
$ |
(2,345 |
) |
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
4,790 |
|
|
|
4,446 |
|
Deferred income taxes |
|
|
3,672 |
|
|
|
(413 |
) |
Provision for doubtful accounts receivable |
|
|
430 |
|
|
|
716 |
|
Net unrealized loss from marketable securities |
|
|
1,846 |
|
|
|
13,386 |
|
Stock-based compensation |
|
|
572 |
|
|
|
285 |
|
Other |
|
|
756 |
|
|
|
1,718 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Trade accounts receivable |
|
|
5,185 |
|
|
|
(5,638 |
) |
Disbursement prefunding, prepaid expenses, other current assets,
and other assets |
|
|
(7,123 |
) |
|
|
(7,563 |
) |
Trade accounts payable, accrued expenses, other current
liabilities, and other liabilities |
|
|
(6,970 |
) |
|
|
3,265 |
|
Customer deposits at IDT Financial Services Limited
(Gibraltar-based bank) |
|
|
2,865 |
|
|
|
(13,069 |
) |
Deferred revenue |
|
|
(394 |
) |
|
|
(641 |
) |
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities |
|
|
18,184 |
|
|
|
(5,853 |
) |
Investing activities |
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(5,172 |
) |
|
|
(4,353 |
) |
Purchase of convertible preferred stock in equity method
investment |
|
|
— |
|
|
|
(1,051 |
) |
Purchases of debt securities and equity investments |
|
|
(2,058 |
) |
|
|
(6,260 |
) |
Proceeds from maturities and sales of debt securities and
redemption of equity investments |
|
|
11,472 |
|
|
|
3,867 |
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities |
|
|
4,242 |
|
|
|
(7,797 |
) |
Financing activities |
|
|
|
|
|
|
|
|
Distributions to noncontrolling interests |
|
|
(99 |
) |
|
|
(183 |
) |
Proceeds from other liabilities |
|
|
300 |
|
|
|
2,302 |
|
Repayment of other liabilities |
|
|
(1,916 |
) |
|
|
(1,242 |
) |
Proceeds from sale of redeemable equity in subsidiary |
|
|
— |
|
|
|
10,000 |
|
Repurchases of Class B common stock |
|
|
(5,341 |
) |
|
|
(26 |
) |
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by financing activities |
|
|
(7,056 |
) |
|
|
10,851 |
|
Effect of exchange rate changes on cash, cash equivalents, and
restricted cash and cash equivalents |
|
|
(6,157 |
) |
|
|
(2,257 |
) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash, cash equivalents, and restricted
cash and cash equivalents |
|
|
9,213 |
|
|
|
(5,056 |
) |
Cash, cash equivalents, and restricted cash and cash equivalents at
beginning of period |
|
|
189,562 |
|
|
|
226,916 |
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents, and restricted cash and cash equivalents at
end of period |
|
$ |
198,775 |
|
|
$ |
221,860 |
|
Reconciliation of Non-GAAP Financial
Measures for the First Quarter Fiscal 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 Adjusted EBITDA for 1Q23 and each fiscal quarter in
fiscal 2022 and fiscal 2021, and non-GAAP net income (loss), and
non-GAAP earnings (loss) per diluted share (EPS) for 1Q23, 4Q22,
and1Q22, all 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 net income (loss)
starts with net income (loss) 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.
IDT’s measure of non-GAAP EPS is calculated by
dividing non-GAAP net income (loss) by the diluted weighted-average
shares.
Management believes that IDT’s Adjusted EBITDA,
non-GAAP net income (loss), 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, non-GAAP net income (loss), 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
(loss), 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, non-GAAP net income (loss), 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 gain (expense), net, which is a
component of income (loss) from operations, is excluded from the
calculation of Adjusted EBITDA, non-GAAP net income (loss), and
non-GAAP EPS. Other operating gain (expense), net includes a gain
from the write-off of a contingent consideration liability, legal
fees net of insurance claims related to Straight Path
Communications Inc.’s stockholders’ putative class action and
derivative complaint, and expense for the indemnification of a
net2phone cable telephony customer related to patent infringement
claims brought against the customer. 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 net
income (loss) and 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, non-GAAP net income (loss), 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 (loss), 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, non-GAAP net
income (loss), and non-GAAP EPS may not be comparable to similarly
titled measures reported by other companies.
Following are reconciliations of Adjusted
EBITDA, non-GAAP net income (loss), 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 (loss) for IDT on a consolidated basis, (b) for
non-GAAP net income (loss), net income (loss), and (c) for non-GAAP
EPS, diluted earnings (loss) 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 Communications |
|
|
net2phone |
|
|
NRS |
|
|
Fintech |
|
|
Corporate |
|
Three Months Ended
October 31, 2022(1Q23) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to IDT Corporation |
|
$ |
11.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to noncontrolling interests |
|
|
1.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
12.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
4.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
|
16.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income,
net |
|
|
(0.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense, net |
|
|
3.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations |
|
|
20.2 |
|
|
$ |
17.3 |
|
|
$ |
(1.1 |
) |
|
$ |
5.2 |
|
|
$ |
1.5 |
|
|
$ |
(2.7 |
) |
Depreciation and amortization |
|
|
4.8 |
|
|
|
2.3 |
|
|
|
1.4 |
|
|
|
0.5 |
|
|
|
0.6 |
|
|
|
- |
|
Severance |
|
|
0.1 |
|
|
|
0.1 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Other operating gain, net |
|
|
(0.8 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1.6 |
) |
|
|
0.8 |
|
Adjusted EBITDA |
|
$ |
24.3 |
|
|
$ |
19.7 |
|
|
$ |
0.3 |
|
|
$ |
5.7 |
|
|
$ |
0.5 |
|
|
$ |
(1.9 |
) |
|
|
Total IDT Corporation |
|
|
Traditional Communications |
|
|
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 Corporation
Reconciliation of Net Loss to Adjusted EBITDA
(unaudited) in millions. Figures may not foot or cross-foot due to
rounding to millions.
|
|
Total IDT Corporation |
|
|
Traditional Communications |
|
|
net2phone |
|
|
NRS |
|
|
Fintech |
|
|
Corporate |
|
Three Months Ended
October 31, 2022(1Q22) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to IDT Corporation |
|
$ |
(2.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to noncontrolling interests |
|
|
0.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(2.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefit from income taxes |
|
|
(0.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
|
(2.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income,
net |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense, net |
|
|
16.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations |
|
|
13.8 |
|
|
$ |
20.3 |
|
|
$ |
(4.2 |
) |
|
$ |
1.3 |
|
|
$ |
(1.6 |
) |
|
$ |
(2.1 |
) |
Depreciation and amortization |
|
|
4.4 |
|
|
|
2.4 |
|
|
|
1.3 |
|
|
|
0.2 |
|
|
|
0.5 |
|
|
|
- |
|
Other operating expense, net |
|
|
0.1 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.1 |
|
Adjusted EBITDA |
|
$ |
18.4 |
|
|
$ |
22.8 |
|
|
$ |
(2.9 |
) |
|
$ |
1.5 |
|
|
$ |
(1.0 |
) |
|
$ |
(2.0 |
) |
IDT
CorporationReconciliations of Net Income (Loss) to
Non-GAAP Net Income (Loss) and Earnings (Loss) per share to
Non-GAAP EPS(unaudited) in millions, except per share
data. Figures may not foot due to rounding to millions..
|
|
|
1Q23 |
|
|
|
4Q22 |
|
|
|
1Q22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to IDT Corporation |
|
$ |
11.0 |
|
|
$ |
17.2 |
|
|
$ |
(2.5 |
) |
Adjustments (add)
subtract: |
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
(0.6 |
) |
|
|
(0.1 |
) |
|
|
(0.3 |
) |
Severance expense |
|
|
(0.1 |
) |
|
|
(0.1 |
) |
|
|
- |
|
Other operating gain
(expense), net |
|
|
0.8 |
|
|
|
(0.1 |
) |
|
|
(0.1 |
) |
Total adjustments |
|
|
0.1 |
|
|
|
(0.3 |
) |
|
|
(0.4 |
) |
Income tax effect of total adjustments |
|
|
- |
|
|
|
- |
|
|
|
(0.1 |
) |
|
|
|
(0.1 |
) |
|
|
0.3 |
|
|
|
0.3 |
|
Non-GAAP net income
(loss) |
|
$ |
10.9 |
|
|
$ |
17.5 |
|
|
$ |
(2.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.43 |
|
|
$ |
0.66 |
|
|
$ |
(0.10 |
) |
Total adjustments |
|
|
- |
|
|
|
0.01 |
|
|
|
0.02 |
|
Non-GAAP - basic |
|
$ |
0.43 |
|
|
$ |
0.67 |
|
|
$ |
(0.08 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of
shares used in calculation of basic earnings (loss) per share |
|
|
25.6 |
|
|
|
26.0 |
|
|
|
25.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
0.43 |
|
|
$ |
0.66 |
|
|
$ |
(0.10 |
) |
Total adjustments |
|
|
- |
|
|
|
0.01 |
|
|
|
0.02 |
|
Non-GAAP - diluted |
|
$ |
0.43 |
|
|
$ |
0.67 |
|
|
$ |
(0.08 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of
shares used in calculation of diluted earnings (loss) per
share |
|
|
25.6 |
|
|
|
26.1 |
|
|
|
25.6 |
|
($ in thousands) |
|
Reconciliation of Income (Loss) from Operations to Adjusted
EBITDAFigures may not foot due to rounding to
thousands |
|
|
|
|
1Q21 |
|
|
|
2Q21 |
|
|
|
3Q21 |
|
|
|
4Q21 |
|
|
|
1Q22 |
|
|
|
2Q22 |
|
|
|
3Q22 |
|
|
|
4Q22 |
|
|
|
1Q23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NRS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from
Operations |
|
($ |
317 |
) |
|
($ |
635 |
) |
|
$ |
305 |
|
|
$ |
394 |
|
|
$ |
1,347 |
|
|
$ |
2,058 |
|
|
$ |
1,078 |
|
|
$ |
6,725 |
|
|
$ |
5,231 |
|
Additions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
$ |
113 |
|
|
$ |
138 |
|
|
$ |
168 |
|
|
$ |
100 |
|
|
$ |
160 |
|
|
$ |
183 |
|
|
$ |
207 |
|
|
$ |
355 |
|
|
$ |
478 |
|
Adjusted EBITDA |
|
($ |
204 |
) |
|
($ |
497 |
) |
|
$ |
474 |
|
|
$ |
495 |
|
|
$ |
1,507 |
|
|
$ |
2,241 |
|
|
$ |
1,285 |
|
|
$ |
7,080 |
|
|
$ |
5,709 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fintech |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
Operations |
|
$ |
3,227 |
|
|
$ |
279 |
|
|
($ |
1,436 |
) |
|
($ |
4,017 |
) |
|
($ |
1,595 |
) |
|
($ |
2,271 |
) |
|
($ |
1,112 |
) |
|
($ |
1,909 |
) |
|
$ |
1,511 |
|
Additions (Subtractions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
$ |
344 |
|
|
$ |
361 |
|
|
$ |
377 |
|
|
$ |
433 |
|
|
$ |
509 |
|
|
$ |
534 |
|
|
$ |
578 |
|
|
$ |
610 |
|
|
$ |
621 |
|
Severance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
38 |
|
|
$ |
22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operating (gain)
expense, net |
|
|
|
|
|
|
|
|
|
$ |
(45 |
) |
|
$ |
412 |
|
|
|
|
|
|
|
|
|
|
$ |
(13 |
) |
|
$ |
(7 |
) |
|
$ |
(1,598 |
) |
Adjusted EBITDA |
|
$ |
3,571 |
|
|
$ |
640 |
|
|
($ |
1,104 |
) |
|
($ |
3,171 |
) |
|
($ |
1,048 |
) |
|
($ |
1,715 |
) |
|
($ |
546 |
) |
|
($ |
1,306 |
) |
|
$ |
534 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net2phone |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) from Operations |
|
($ |
3,880 |
) |
|
($ |
3,658 |
) |
|
($ |
3,965 |
) |
|
($ |
3,958 |
) |
|
($ |
4,193 |
) |
|
($ |
2,866 |
) |
|
($ |
2,257 |
) |
|
($ |
1,817 |
) |
|
($ |
1,056 |
) |
Additions (Subtractions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
$ |
1,087 |
|
|
$ |
1,198 |
|
|
$ |
1,402 |
|
|
$ |
1,367 |
|
|
$ |
1,328 |
|
|
$ |
1,260 |
|
|
$ |
1,343 |
|
|
$ |
1,443 |
|
|
$ |
1,352 |
|
Other operating expense
(gain), net |
|
|
|
|
|
$ |
100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(293 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
($ |
2,793 |
) |
|
($ |
2,360 |
) |
|
($ |
2,563 |
) |
|
($ |
2,591 |
) |
|
($ |
2,865 |
) |
|
($ |
1,899 |
) |
|
($ |
913 |
) |
|
($ |
374 |
) |
|
$ |
296 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Traditional
Comms |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Operations |
|
$ |
16,083 |
|
|
$ |
19,232 |
|
|
$ |
20,083 |
|
|
$ |
26,629 |
|
|
$ |
20,328 |
|
|
$ |
19,897 |
|
|
$ |
17,579 |
|
|
$ |
18,022 |
|
|
$ |
17,263 |
|
Additions (Subtractions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
$ |
2,931 |
|
|
$ |
2,747 |
|
|
$ |
2,459 |
|
|
$ |
2,464 |
|
|
$ |
2,429 |
|
|
$ |
2,381 |
|
|
$ |
2,361 |
|
|
$ |
2,356 |
|
|
$ |
2,321 |
|
Severance |
|
$ |
113 |
|
|
$ |
143 |
|
|
$ |
184 |
|
|
$ |
13 |
|
|
|
|
|
|
$ |
8 |
|
|
|
|
|
|
$ |
49 |
|
|
$ |
100 |
|
Other operating expense
(gain), net |
|
$ |
554 |
|
|
$ |
(1,613 |
) |
|
$ |
56 |
|
|
$ |
30 |
|
|
$ |
26 |
|
|
$ |
13 |
|
|
$ |
33 |
|
|
$ |
31 |
|
|
$ |
11 |
|
Adjusted EBITDA |
|
$ |
19,681 |
|
|
$ |
20,509 |
|
|
$ |
22,781 |
|
|
$ |
29,136 |
|
|
$ |
22,783 |
|
|
$ |
22,299 |
|
|
$ |
19,973 |
|
|
$ |
20,458 |
|
|
$ |
19,695 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) from Operations |
|
($ |
1,864 |
) |
|
($ |
2,294 |
) |
|
($ |
1,115 |
) |
|
($ |
2,121 |
) |
|
($ |
2,110 |
) |
|
($ |
3,004 |
) |
|
($ |
1,960 |
) |
|
($ |
1,852 |
) |
|
($ |
2,724 |
) |
Additions (Subtractions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
$ |
18 |
|
|
$ |
20 |
|
|
$ |
19 |
|
|
$ |
19 |
|
|
$ |
20 |
|
|
$ |
20 |
|
|
$ |
19 |
|
|
$ |
18 |
|
|
$ |
18 |
|
Other operating (gain)
expense, net |
|
$ |
(302 |
) |
|
$ |
305 |
|
|
$ |
(605 |
) |
|
$ |
376 |
|
|
$ |
63 |
|
|
$ |
721 |
|
|
$ |
158 |
|
|
$ |
93 |
|
|
$ |
787 |
|
Adjusted EBITDA |
|
($ |
2,147 |
) |
|
($ |
1,969 |
) |
|
($ |
1,702 |
) |
|
($ |
1,725 |
) |
|
($ |
2,027 |
) |
|
($ |
2,262 |
) |
|
($ |
1,783 |
) |
|
($ |
1,741 |
) |
|
($ |
1,919 |
) |
*Explanation of Key Performance
Metrics
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. NRS’
recurring revenue is NRS’ revenue in accordance with GAAP excluding
revenue from POS terminal sales. 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.
Monthly Average Recurring Revenue per Terminal is useful for
comparisons of NRS’ 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 are strong
indications of the top-line growth and performance of the
business.
# # #
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