IDT (IDT) 8 Mar 232023 Q2 Earnings call transcript

Good evening and welcome to the IDT Corporation’s Second 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 January 31, 2023.

During remarks by IDT’s Chief Executive Officer, Samuel Jonas, all participants will be in listen-only mode. [Operator Instructions] After Mr. Jonas’ remarks, Marcelo Fischer, IDT’s Chief Financial Officer, will join Mr. Q&A. for Jonas

may uncertainties those made prepared materially statements SEC. general conference forward-looking actual IDT update with made make either net to update risks not risks reports EBITDA, are the call, make company including specific to, materially adjusted actual Any assumes or no during cause that obligation in in they the the that and specific per to risks to IDT results results and either from the and income measures, to anticipates. or include, reference subject periodically statements uncertainties to the remarks any those nature forecast. whether In the may their or management to or the in which may non-GAAP non-GAAP presentation from cause earnings in differ in forward-looking discussed share. or files are have that but this that limited Q&A that non-GAAP loss or IDT’s differ Q&A factors they may These and session, session, uncertainties

filed Corporation or schedule The nearest per release the provided release earnings earnings adjusted the share website. has non-GAAP on the X-K the on available been A is Form of net Please non-GAAP IDT and earnings to page IDT EBITDA, the note measures. the corresponding income earnings with GAAP reconciles the that in loss IDT also Relations SEC. Investor release

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their beyond and conditions our our want progress. capital their you difficult whom huge contributions all and up are is finally, I thank to above of our faith both And that stockholders, thanking and us. to best powers employees, putting about our story, and wrap our sure our with to amazing thing by a to work investors those long-term under work whose The for some innovative team, continue for hard the overseas ordinary. many IDT their new

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

Instructions] Immersion Investments. with question Thank first comes from The David [Operator you. Polansky

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months? a think to than could profitability am from XX about maybe XX just trying business I So this where to perspective be

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that We fiscal in did not Yes, being to would cash $XXX,XXX it say now the one And covers even then in performance, meaning be but exiting year even its by EBITDA we about positive June, etcetera. positive, are this EBITDA. how CapEx flow they pleased July being that about might buying I with very expenditures on only did. [indiscernible], that venture based

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team So quite the there. all, over all pleased I’m to with what is in doing management and

don’t I on that already to probably quarter. to I bit what I Marcelo a said. while Integra much weight of mean a have is the of the little acquisition say add one would was Yes. thing next

We’re solution our think CCaaS frankly, solution table. what overall. sales, heavily we very, going our very great both a provide it you lines, customer. raises and ARPU price, about a investing brings And more you acquisition great in bringing really a because regular there think customer business it’s to be we we And much when make the for that to service with a: on a and excited also business stickier them at are customers

we a taking from course expansion customers the margins So per and couple just some over now of we’re user into of of accounts and one from of the relationship that more from quarters I that mean of see average not the going things netXphone deeper the have. after accounts, into mean, continued next lot you’ll expanding of taking but revenue I is Integra, think us. services a I is what new already we doing landing have the

be of out gets IDP NRS has in even little question a company talk happens I there new mean, That’s the been what on that’s about in very IDT potential maybe to holding there holding I interested hanging and great. happen and to as out, in investment. you give I the the IDT, this spun anything is going to I entrepreneurial what’s when an in a bit opportunity pipeline. the to going company should want past, think

maybe what So behind you little future? in if guess could what’s ready, we about anything a and talk could look bit I maybe that you’re forward the on going to if scenes the

I that or Yes, of I will quickly that you mean mean our my things launch Zendit. are today. like mind give like one is I come saw just two to three you

the volume is both we in selling from do retail We customers add are they a customers. and couple already at I I have were we that that ago. weeks booth who a there as And the very advantages out in this well it that’s showing players really Barcelona, that new exciting card pricing think It gift other was we that think things depth and us And themselves hit the our from leverage of where a going way start bring that to that are Zendit. our allows off. customers product when to a developers see of the in space. basically And the of and that release of lot services top to the for already to press as we portfolio you as to in consider selling. come set up that, already into think in like already,

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product going to is an That’s a what great. point group And clarifying just Zendit, – as be that digital payment. on IDT where

Yes, that’s payments, that’s part correct. of IDT digital

– early when I or about it of just what what traditional, help kind the mean, I decline that mean within do – tell? you decay And we too does Okay. is that think could understand or the can to

is have I part make to a I could of strategy. even traditional that expect the and piece an it it say answer very larger going part we part be. large forward. traditional is a don’t of business big I our what an of could And the that business mean of business, of Zendit

Great. Okay. Thanks, for I pass guys. it will That’s me. it over.

you. Thank

Thank you.

question. Please announce from affiliation your pose comes question Koch. then your Next Daniel

pretty you what I Alta taking Pleased from was thought quickest Thanks from? this mix a is the This with remarks. a specifically probably pace record Daniel netXphone. growth agree Or the coming set still is Fox. just Can markets. like showing that are light ARPU for Had prepared year-over-year Latin on some you is places from growth? at quick of shed some kind question. the point? about despite the headwinds And elevated slowed netXphone of America where David I that one to international see on up

we America than grew I did today that mean in – the my from see in could stronger we mean remarks think short you U.S. I even I Latin

that part a our stuff of has those forward on big So some going is Marcelo growth is markets. definitely strategy focusing But add. to I mean

Yes. Hi, Dan.

in America very So growing I Mexico, grow than Chile South mean the continue markets some U.S. fast. is Colombia, Brazil to like faster very fast,

happening So acquired also And side, time. see earlier, now the at also they Integra, growth seats it the CCAS CCAS think had we all. March right? last as from growth we have, I don’t player year, higher in When and ARPU good a decelerating X,XXX strong, is Samuel the we mentioned of Uruguay, and at our

with So X,XXX January now seats. we ended

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netXphone. the growth to of those all areas bringing So, are

it. me. for Marcelo. one Got One quick more for that Thanks

you I rates fastest shed are forward? bit the now. transfer and all driver just one the impressive. businesses is money what’s have the there going Can incredibly growth of think in these growth growing might a sustainable all light there on more market The underlying how little you

be, when going and And into to on I money. well big driving I I that at and price. side to we are are a that reasonable customers And of a lose I side. lot And very comes money, it companies go going the that’s in to as mean, direct-to-consumer that’s I very, mean the mean, number a on the spend on not the try our less to of side. customers responsible not customers is value. retail money retail that’s Again, the that we’re after as well going one quadrants giving we’re store listen, both space. we some direct-to-consumer we think lose the acquiring our both to side go we growth. think on thing as as were think I the than Like

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from Please comes then question. your Wilk. your question affiliation announce next Adam The pose

hear you Can me? guys. Hi,

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opportunistic, or But so yet. this again, – stance, mean, the have don’t other we’re don’t of quarter. just one in way know. I as any we and buybacks change no I no plans past

but something spurred not just to Okay. to just you I kind two back back, that there last asking, push was on add you saw push action? – that question by or just the quarters a of bit might that

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remain Well, Sure. buybacks accretive. I price understand. this the incredibly at

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Thank you.

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guys. Congrats on Hi, numbers. the

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Thanks much. Great. very

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guys you Can Hello. hear me?

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first The question NRS. is about

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congrats results. again and the you on Thank Okay.

you. Thank

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

You may now disconnect.