IDT (IDT) 12 Oct 232023 Q4 Earnings call transcript

Good evening, and welcome to the IDT Corporation's Fourth Quarter and Full Fiscal Year 2023 Earnings Call. In today's presentation, IDT's management will discuss IDT's financial and operational results for the 3- and 12-month periods ended July 31, 2023. [Operator Instructions]. After Mr. Jonas's remarks, Marcelo Fischer, IDT's Financial Officer, will join Mr. Q&A. for Jonas uncertainties made prepared statements general conference either which risks call, specific differ results Any from materially or during in the those and to subject remarks nature, company whether may the in cause in to anticipates. forward-looking the are this that Q&A or session discussed the include, that IDT reports uncertainties and limited SEC. risks the are not to, periodically in with specific These but risks and uncertainties files made or earning forward-looking actual IDT make have the EBITDA, assumes may from reference management statements net to the forecast. In update in any and obligation results they session, presentation loss their adjusted materially cause non-GAAP income make no that may to or factors share. either update differ those may per non-GAAP to that IDT's including non-GAAP Q&A or or they that to measures, release schedule to per adjusted reconciles EBITDA, IDT's non-GAAP nearest loss the in corresponding A income or share non-GAAP measures. provided earnings earnings and net GAAP the is website. earnings that Corporation Please release IDT the available Investor page the note IDT Relations of on release has also now X-K will SEC. I over earnings the on filed conference the Mr. turn with to Form been The Jonas.

be earnings me Thank Fischer you, Marcelo After virtually. will IDT's my operator. remarks, call. conference Welcome to joining

My brief months XXXX focus on are year ended they today front be lines remarks very really colleagues, some who XX. to want it's First the I family, safe. the may July our friends, and our of our our all, just of X prayers tragic Israel of thoughts fourth and on the really hard been and and fiscal say, quarter in a week, week are god-willing with

file quarter full our release earlier operational Please year detailed results fiscal to that more with discussion and financial read a of the SEC our for Monday. the XX-K today on expect and fourth and we For earnings Form filed XXXX. our

as quarterly have ramped of expected. by netXphone three traditional ago terminal increases Merchant peak up year and new and of revenue quarter data investment for this Pay development terminals NRS XX% growth including revenue and from is accounts. Advertising net a results we and subscription quarter results Services record accelerate to new performed the tailwind, that subscription of At communications prior our businesses, reflected in payment in and new below seat year-over-year, year-over-year. initiatives, average XX% improved as larger XX% segment net expansion investment both America. high-growth, NRS highlighted and per data delivered and and on seats continued increased our track sequentially, the the increased in an high-margin NRS, well networks while in were the our and new NRS tablet our as increase increase POS QX increased we Our by features while revenue our revenue in advertising sequential current revenue growth the quarter. also Latin functionalities powered and the the in increase X% served With

to customers of and operations that in between suffered growth. Last our IDT customers the Revolution related are our within channels no with proved is mobile lawsuit synergies the enrolling we and banking course the invested features but innovative business our BOSS services, netXphone despises Money, underbanked BOSS coming Elroy. the to benefit IDT U.S. throughout financial return anyone Elroy Path the Global in we our premium segment, Straight cross-marketing our streamline action Within Payments fees, IDT direct-to-consumer the and working appreciate our Center class international sound we efforts into appreciate larger litigation. markets. dismissed to the and the help unbanked to our out Here, expand traditional AI segment, convenience. the to Digital claims whose class investing we expect in retail this of programs in new Within and communications begun found Calling to business. In remittance mainstream matter to pushing its the continued FinTech plaintiff sale too, our week, quarters, damage. businesses two and initiatives replete that our time to from new are margins team the the we've enhance while legal to BOSS the Call against business segment, Essentials preparing roll and ARPU and record tireless while initiatives bank integrate our chance and resolving app, to so and invaluable financial all in Fintech Delaware the who court further the across exciting Also We are in appealing from judgment ecosystem.

case the As and fiscal we flawed quarter noted claims on prevail. to consistent earnings our back we after fourth start stock of XXXX, release, continue assumptions were our the justice the premised this in our buy and view plaintiff's that in in would the with

as the stock we undervalued, fact of the businesses. three performance especially high-growth was well As very thought our that strong our given

the I for and who are us. stockholders work again and Before our capital putting with their their on to to great we want their Q&A, move faith employees thank our

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

We the Instructions]. will question-and-answer begin now session. [Operator

with from comes Emmett. Alex question first Our Rohr

a soon. hope mobile could if on anytime any business in particular, speak quickly there's there if was a now and for top-up. been It's hope. you there's bottoming just to while hoping I So that any

the yes. I is think answer

wholesale It's not Unfortunately, I improving of it. business will direct-to-consumer We've terms it our selling late. recently liked been on say customers of In gross as margin it. -- been on, platform about think, we come new launched, channels. I But of our our has our expected. got more actually the just and five we've have as just alone week new would brought onto actually or back through this quickly

hopeful that good it. see So growth revenue forward on very some going we're we'll

Great. one And just more.

now -- increases going off new I SG&A wait to kind would mean, have significant increased of Or see? expect -- NRS Do year-over-year and can So we should a obviously, line. the are spending of in increases on spending the this to see line? NRS period see of we in this in you you're base SG&A and similar the significantly

SG&A expect been, than much in and more both the I it NRS to well company. has No. across be controlled

Alonzo Please question [ comes affiliation. state your next from ]. Nigel Our

particular, to those likes Elys people. into from restaurant I line results wanted wondering is new in in ask this and about I to product the market has tablets was the your mentioned. Elys. you that those this Global are line? the competing that product PAX And if supplier new the and trigger going of initial you the against expanding know new I markets, Where released called

actually from other We product we specific use do PAX. don't that Well, use PAX. products and

looked Although specific. in we that have into product

be of As us restaurants, a acquiring company far that will get as space store in attached said, already not is the toast think a we're to or it's small to to to our your something being similar process that's in or into that That goal really to restaurants their it. store. company. help it a for a And very be question related competitor have that, convenience we that

-- it's a goal not to So to toast. be going is not I be would say our

restaurants, considering that and businesses U.S. among the a lot That's owned great especially of immigrants brand to Wonderful. are a you we in have hear, know how immigrant

it news. the And of that's was capital around kind on question, answered So great but you allocation. follow-up already the

other had a capital outcome you you unlocked in for already waiting the have result to have of allocate capital, than as some an [indiscernible] that assume the now the going I litigation, provision after that litigation wondering and that of outcome. are I So and you was you it the how mentioned? this

the on investing lookout and think in getting I on good for we're investments. mean returns smart when I we're growth that acquisitions those

good the than at cash investors same some is some -- So keep mean, sheet necessary. the don't us I to expect balance I time, I of to that returns for expect But investors. to again, cash our us believe deploy more get on

Okay.

have do with -- intend period given far. you release. this repurchases earnings So -- so mean well, once inquiring the to I you proceed

is of allocation? plan the that a So

just I purchased million over again, I don't we've you've stock. -- $XX know, possible. year, of probably very the mean past, It's I a seen mean, in

I us mean, shares continue is to low. the to yes, So purchase price I expect when

question do last Or provider? Wonderful. Do is have platform? another the use own netXphone. And your you about of platform you

Originally, when a got own. third-party we And the our into we we both. used eventually, business, is built platform. answer The

it, So our rented off as time, today, we rented unfortunately platform, on both of call we and platform off And a well but a the have hopefully, move have we'll people on would to not everyone I migrated of as everyone platform own ours. rented over platform.

next Lustig. Jason question comes The from

I'm A family IDC Israel. and one. many friends I sure you, employees in have smaller and other know

to wanted So all. thoughts say I are my with just you

growth continued And Services you to to nice saw of line the revenue step-up is we in more Services that in Or expect units Should kind can we really So of more per in that forward? going drivers? some a unit. with Merchant Merchant grow likely in speak ARPU? NRS

-- with coming for it's say, merchant there's definitely services. terms that take are both been, mean Again, rate a us, would higher new I of I sales in

sell job see I possibly mean, not really we've the numbers. direct, as merchant incentivizing both I in And that doing very try So our you you think much services. to that of a can organization, distributor good et can as a to include clearly doesn't that POS sales cetera,

to quarter from having terminals in So and increase less but every had every have again, coming see, percentage be used more services don't it. stores this and the know I cash of if expect there going our to quarter like them. merchant we processing therefore, being I general, a will and from just same And higher quarter, increase. just you're in will less merchant more

is in you that how uptick of seasonality of recovery? Okay. of a Is expecting how much that And advertising seasonal kind that into release the mentioned in holidays? macro advertising. And much is -- the you're

it's answer the seen I if wish holiday seasonal. know the the that season, we've better. don't I and Again, a big like holiday I even Hopefully, pre season jump. knew really we're even quite to I be question. will mean

but the So I I could better, have answer. answer don't an I wish question

Instructions]. [Operator

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

You may now disconnect.

you. Thank