IDT (IDT) 6 Dec 222023 Q1 Earnings call transcript

Good evening and welcome to the IDT Corporation’s First Quarter Fiscal Year 2023 Earnings Call. In today’s presentation, IDT’s management will discuss IDT’s financial and operational results for the 3-month period ended October 31, 2022.

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

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

that our and December XX-Q operational read Securities our please by Form Monday, financial expect earnings with results, more earlier a XX. and of filed today discussion Commission For and our detailed to Exchange release the we file

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rapidly positions in XX% of Our expansion significantly in businesses NRS, our enhanced us continued the netXphone consolidated coming EBITDA and for and period years. their profitability Money expanding adjusted the contributed BOSS

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a the January headwinds to market. we macroeconomic slower sales buffeting begun that the and usually month is impact see have However, are advertising of

and available of our course, apps service food in various digital our the and by increase included that retailer advertising in we and number manage. opening establishments to ahead, NRS Looking opportunities sites of a by of boards our advertising busy websites by in planning signs screens network we menu areas, are variety for across venues, expanding high-traffic windows adding other and

expand as continuing drive and sales to as to expect continued our services velocity SaaS by well merchant in We as our the as channels. well offerings strong sales increasing revenue of growth

charges with offerings, expanding which and for NRS is significantly for app us effort against also capabilities. chains. part level version national retailers delivery as and key our our retail beta help recurring for options months, to specific the we downloadable to POS are independent Thinking their is than we longer must base. with provide home we our expansion Over initiatives, regional customized retailers will the next about playing tablet them NRS an growth POS conceived monthly remote well of tablets who realized term current couple the retail compete e-commerce expand supply and field of launch of POS and verticals ordering we – A to as level for the help higher the in ordering retail of SaaS kiosk

retailers right of of inventory supply NRS flows. the help initiative side, the e-commerce sales to just distributors while order nationwide we to suppliers a retailers, and announced the maximize and items On extensive BXB network and to enabling NRS’ amount access right cash

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serve feedback. tremendous for we financial time. EBITDA so anything, we had ecosystem this and positive our of has service offerings than over we reached the charge potential, more try And don’t many become immigrant to payments quickly to not have no communities we expected. quarter, you significant expect a achieving milestone adjusted excuse even give netXphone the it and wallet and particularly Our for us

seat slowing been to outperform have growth. of able We our pace without

to this market In fact, SMB strategic XX,XXX payoff. focus quarter compared quarter. netXphone’s last the continues on channel partners we added to over through XX,XXX seats

intuitive, provision SMB their customers to approximately have QX, processes telephony globally. costs. X,XXX lowering onboarding making earlier onboarding CCaaS platform that calendar we year the In hassle-free Because We seats, netXphone CCaaS we the our and our and at significantly center leveraging and experience their acquired quick contact simplified while time cloud-based to be sold for is streamlined which able same and the costs this excited. our super to are and CCaaS continue onboard platform sell agnostic, we partners about

customers and the During quarter, sold center contact in new markets. we enterprise call centers three to CCaaS

contact a become released tool. powerful We will also centers, integration our sales for which force

Communications of business, payments impacted Mobile have corridor. our our would offerings, corridor, Turning payments revenue Traditional our of year-over-year. segment, the impact Top-Up by now decline digital IDT increased X% Removing digital that key to the the primarily again was

continued $X QX. B we some However, Calling the our we strong the are in and in product were work and to not substantially satisfied at enhancing bottom about mitigate stock with our wholesale but common and we we of decline, carrier hard able cash to repurchased changing members date, the BOSS growth helping are stock Class and line IDT’s night undervalued, team our global million in to revenue cases, results flows Revolution impact. business. With this

benefit build earning aggregate. are quarters, strong including X% businesses Debt to And in debt. even in we have The generally strong enables from investments repurchased with capital will in liquidity sheet, growth up, outstanding current our cash support two balance $XXX we our the upon expect to financing. our expensive outside B Over past about resorting from fact, income. cash of and and wrap interest growth and without positive our us we working very To to continue performances the increasingly we no businesses. net million Class shares

beyond. result, on healthy deliver for XXXX bottom track to and remainder fiscal a our God are As we the in of improvements line continue results to willing

your I’m and speed I this. little sorry Marcelo will the questions, take be I and a for I’m read tired. to happy just which at Now,

is And Polansky Investments. David Immersion coming with first question Instructions] [Operator from our

live. is line Your

mean I great questions. the Hey, was the that’s for my and see. to guys. thought Thanks excellent, seeing taking buybacks. love I I performance

to picture to is means to want obviously, any important potential it then what NRS Why about like about talk marketplace something past. business? in NRS the spoken first. the you’ve about a BXB impact financial your retailers? and Can it big talk I So Samuel, offering you

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have they retailers, other For problems. different

want in have XX lots wider distributors. problem and products of trucks. coming retailers carry different different stuff obviously, might a Some they they from them They array don’t a need, of that with

use just that example. as Let’s an

them have so delivery. their the and orders. get brought to to want the where deliveries to all our multiple of then we’re have in they be and deliveries And essentially as able might And we comes soon to basically inventory the they sort really of X-point immediately store have all that’s of update to get to will spot store. one that those don’t part and deliver able through they as to the integrations, business then all EDI bring to So

I’ll their mean there for immediate that’s up the generally customers that a there from that to more and And fact market, this tracking stores different another more big competitive have is goods thing. when terms opens case, that do changed. changed, the that and dramatically some and to carried is believe carried retailers tracking have you fact I I them past their XX because want eyes is down costs these from. products from also they It So access haven’t a they cost will mean in good years, that them get brought least customers what I markets say, available say, opportunities suppliers eyes, and is data. can get at standpoint, suppliers of in in that before, retailers their lots general over which to for never while I’ll there it by what of more have that the the standpoint of they speaking, just give really

you, other that So of a types encounter that, we this, lot stores the those people healthier natural, And for carry organic, thing. free, want don’t products. gluten of the

of, choose that a we want could then call them lots have popular these is be basic a before on the they And to we say, stores we new carry So them top area, them. to think their also I’ll ideas to are we chance introduce we own. grander on first types through, to the in But vision. I’ll really grander necessarily have if of it get gives show our products of that wouldn’t that to this, layered get but it, eventually, their otherwise this reason to

your that, hope I answers So to some question that degree.

how being be this It that? compensated you going help does, I for – how mean to on NRS does is there are sure. how – Is us?

again, facilitating also merchant for small enhances to a do it the also charge the make also we we general. And basically, margin small their these distributors a then orders just So retailers, which for for And them. percentage ecosystem on. we the in processing

the the our really our stores generator the near-term, over So might do. profit in do us. be better not it again even helps The which we long-term, help, though it believe, we will stores better biggest

don’t any great. I doing absolutely. this Yes, at least anyone – you in know do It’s I don’t mean think product. the of the I offering what market

fantastic. And... So, that’s

NRS of do we is we one problems in solution. We cash that dependency to just cash the concern, competition, really need match store, a come the kind and the and just the to to the different. no selling right, about retailers, supply the do NRS talk that us. know, there not all participate announced create own that you stickiness try concern, relationship and as demonstrate of And question get POS of okay. that how we is fancy fully delivery our This understand the all other that their is recently – initiative level

to I we Yes. and we want having, flow. retailer think bad we problems a are help I come through there like we to they good the value When stores. But trusted embarrassed as for want that, mean them think is yes, in their we good there cash times in we ourselves really and money times. That’s are by struggling, our are them view reason times are succeed. them. why a to not times. that solve I we with again, we When And see And partner bad make that providing and to goal. our that’s

Fantastic. Great.

are learnings too early of Uber from is any to it kind early So, tell? partnership, there or the

to the have doesn’t manage. harder The don’t didn’t other will have in say be the of the holidays no And doing delivery we yourself mean and officially, right want it I Uber stores far during one, to benefit major a cheapest believe I I going again, that say by launched. partnership early a do start like January, the of Uber you deliveries. – are signed to these the possibly believe them, most holiday things mean with would actually really I it We is hasn’t I deal for for a doubt lot season. of I stores. until lot it’s rolling have option launch only I after deliveries. But to our again, it if than when out, partnership but

It’s this of specific a is But make retailers Again, a not to as So, customers is another we that great us something example are we ton we well for of really option. profit. will need great profit. trying product. the again, option because again, a a won’t make on doing make where really of this lot money a

mark stuff Our Uber up not goal is to XX%. an – like to

in what to that it pay stuff they Our our the sell as allow and customers goal when is the retailers for intend the that and not to store close they bring even is to to to to them do. that’s cost in for we it are like store, goal,

to That’s fantastic. to I want jump netXphone.

I netXphone tracking the initially we think that’s at of EBITDA this and thinking ahead year, about being we well obviously breakeven to were fiscal what of anticipated. closer initially end

on profitable think of anything that. So, that. be here, from one-time, love want color there we to a I I would see of little should aware anything But be do or to from or you is bit sustainably like just going it’s

my I has very business is listen, and sustainable, beauty very, revenue listen, the netXphone personal churn predictable. is mean I it its mean – opinion, of the low it pretty is

that like that as a overall. person bring mention potential the extremely that profit. of in costs as more CCaaS business line are fact the the good business. revenue lines long sign, the So, acquired excited improvement ARPU which you and you really continued well enhance the you again, its well, not I up And see that more your more to you the entire as they to product think manage the And the we am as about to going at, really the bottom are from business and have I

happy And that for I am headed I more it own although we not that longer, of really in think great was plan. a the direction. it’s

very the note Yes. capital, ROI. David, customers doing I we performance to focused how models. ARPU want very are mean just we most acquiring really generate right to good doing are deploying now. the And it’s is that great. is in Churn I countries on well.

a going to we EBITDA us. So, the surprise was positive good year. We for thought end yes, are QX of be

believe this baseline. now. the are EBITDA I now is positive We not And

to to you calls start large as coming positive, already way, hopefully, a year So, order to this about ‘XX saying in not in going later we be of in positive. are cash give are the become just free flow actually EBITDA the and CapEx the dollars might we rate spends number free able be phones to going becoming flow know, cash acquiring fund we back will continue – when that this talking customers. at But positive, be are we IP net fiscal to rate

again, kind only day, customers like Marcelo that, we make Every already, optimizing customers in really know. are focus right right here. think business and of like the we paybacks. again, never price the And we for get the to on as – right where sure you from bringing get ‘XX, on right said we to we the you areas will it better the

a And business to spending the about still is acquiring self-funding. $XX are year completely million so they that be to great close and customers, very or say it’s

leads come that is, I everywhere too, you are which so multiples quite next in my of competing, that sale, multiples down into a in UCaaS think well across Well, lot. point question, have and basically

to opens So, up obviously self-sustaining have being self-funding sort get of to as door the you that closer M&A.

be we thinking So, I M&A? horizon on am about to it curious, as anything the should relates

effect off I of bottom in at will can don’t also I ball. said, our that have being am and looking much eye think I the sure. enhance mean can the any I that have taking to be I open the tell big We That you that plans things M&A line. will work. M&A synergistic always your for think

are valuations valuable when And been. are rush And are thinking more business. on improving not the any we be right now, than have in do do anything. will – again, back, company it much we would we it even come we think focused So, a that

you Thank Alright. take questions. back into color the for queue it. let and my on the all all else great. That’s someone hop will I

you, Thank David. Alright.

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

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