IDT (IDT) 8 Oct 242024 Q4 Earnings call transcript

Good evening, and welcome to the IDT Corporation's Fourth Quarter and Full Fiscal Year 2024 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, 2024.

[Operator Instructions] After Mr. Jonas' remarks, Marcelo Fischer, IDT's Chief Financial Officer, will join Mr. Jonas for Q&A with investors.

to during in call, general to the in are made prepared in or differ statements that nature, or uncertainties which remarks Q&A subject anticipates. materially forward-looking from this actual the either conference the specific may those Any cause and company results risks session, whether with uncertainties the reports that These risks are but in include, not limited files discussed periodically the and uncertainties to, SEC. specific and IDT

have any assumes cause may made obligation materially they to they statements IDT the actual may that forecast. differ or update or that forward-looking update no to to from make those that either factors results

their measures, corresponding per schedule and provided In to management non-GAAP including IDT's adjusted release session, in the EBITDA, the share share. nearest A IDT income the adjusted income or measures. earnings net presentation earnings EBITDA, non-GAAP non-GAAP Q&A non-GAAP non-GAAP to may make reconciles per reference net GAAP earnings in and

is of note available has filed Please earnings with Investor on earnings Form IDT the also website. the Relations release been X-K that The the on Corporation SEC. the IDT release page

I to turn conference Jonas. the will Mr. now over

year XX the IDT's you, today the on Thank call. full fourth XXXX, months and fiscal My quarter to conference X ended focused July and remarks operator. earnings Welcome XX.

discussion SEC today the our with and Form For operational results we financial filed earlier to our Tuesday. detailed our file a for more read and XX-K of release the quarter, earnings please next expect that

solutions strategic deploying base every increasing tech, new month. large while expanding advertising all for businesses flow. priorities, retailer we point-of-sale while verticals make hundreds our XXXX NRS a of all well in and year. our locations of market, the communications Pay building Money and record to EBITDA segment NRS, netXphone, delivered adjusted to cap our customer IDT fourth fiscal continue delivered developing on out off At progress our the quarter, strong good by cash highlighted penetration independent performed NRS, solid traditional our BOSS new

XX% BOSS our fourth as At BOSS volume quarter economics transaction generation. over achieve Money's Fintech during the achieved flow enabled growth of scales, cash improve to positive segment again we first quarter. its which to Money, of year-over-year the business and revenue continue

netXphone its XX,XXX approximately cost. its seats X,XXX net again, the is seats, controlling while a customer of base, fourth steadily building adding good CCaaS new quarter, also doing in job including

As more than a doubled to EBITDA result, netXphone's margin ago year the compared adjusted quarter.

are and revenue, line plans by per We increasing on new by volume functionality. offering revenue including through driven focused growth plans customers higher-margin bottom user, CCaaS to migrating higher AI-powered with netXphone's our of further and features, premium improving continued extent and

fiscal our In improved payoff of maximizing Traditional our expected businesses economics 'XX. while segment, and implemented from began of flows throughout will acquisition. and XXXX, to see customer lower the in continue to we fiscal and cash Communications we reinvesting the significantly pursue opportunities year to cost we the costs initiatives business reduction improve our In performance

the year expertise. are have profitable In strategic we drive expansion leverage that long NRS, IDT ahead, BOSS XXXX and strong our invest and momentum. assets enters all growth exciting with continued and growth in Money will and their each a new netXphone initiatives runway. fiscal

new businesses initiatives, stockholders through maximizing dividends. each our our investments to generation buybacks the and share to of segments, value and dynamic committed remain cash creation We value from building long-term returning our for in

on looks like worked at numbers has it's numbers IDT everyone very thank the really to but lot today. to Oftentimes, paper, very, it who to really was work. deliver just we I a a deliver Lastly, that hard of

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

with Maram [ comes question [Operator Instructions] Inigo first from Alonzo ]. Capital Our

end I wanted of on first own life. well, questions do the . MetaSwitch other -- question again a business? don't a your going that on ask with players? had couple the Or really I of share this the tailwind guest you amazing platform once Is you to netXphone. be Congratulations about results. for to new

not. It's

As on business. effect has our far as no it I know,

And own platform, your complete the percentage, to then netXphone rented the migration how from there? in platform And you regarding are the Okay. migration? a synergies how tap to you in expecting are with

to I other over go from and other it start see quarters. our actually better satisfaction than mean we new Yes. from customers our any users next no once customers we own. more platform platform. homegrown on to expect migrating to on the And Basically, hope they're netXphone savings

you like transition the any platform? on your have time line would Do full own to into see hard when you

No.

circumstances Okay. in previous but And and In like would today, talked future you spinoff. have a the see last are NRS. what market NRS not business order in Obviously, circumstances best of you market question calls, own type off? in is the spin do to about the the your potential about to

NRS right, ability when a is company. some into time right do And of will type spin I or we're building on transaction. have we Again, multibillion-dollar the off now, other mean, the to focused

happy the moment, it's we're very doing with internally. However, how at

question McKinley. next comes from The Greg [Operator Instructions]

expansion we're sort leverage a crossed with line. you to more [ investments, income make you do we've on growth? what kind Can line? margins top your help we big any, how to ]. now? of We're margin for that of EBITDA there What's growing is Couple very Management questions continue support rapidly of the need margin First money of business if us like and it that there? of the it view And to crossed now transfer Or in there about operating threshold think there, so incremental all, the understand Asymmetric Greg we now looked positive. should and business, McKinley

the let on question. But to transaction very don't expand our most margins a -- I goal I'm of level, going per we're tremendously Marcelo say from that to think will that basis. answer a I high is

achieve long we decided term. for Even I if very to could sure if make so. very, stay think margins lower our if do main slightly goal customers with that tomorrow, our means to is than we . that us

So sending using they out a that it's number that of that. think customers transfer, to about making really every sure growing they money us, think about the and time only

question. like from with But a much just was more to business unit. now I looks thinking It clarify my it flipped customer standpoint. really I wasn't the EBITDA asking that of so to positive.

And so was I make clear to sure that. wanted I anyway, just on

Yes. Greg, it's Marcelo.

mean all I correct. from was year I fantastic for Money So think just a XXXX angles. BOSS

includes cross some think about in we pre-revenue. revenue $X other positive. million it more poster generated lifted which we [ It are It's ] entire EBITDA EBITDA on As investment segment, run billion the also so, by strongly more between a yield positive. it's doing that also you year [ And fintech both the a them the money doing ] [ EBITDA. but we which rate. XX million much than on businesses mode, mark, And see, now $XXX the retain ] that some still not of transactions

So for both BOSS bottom engine has line growth. been Money top a great line and

is finished all channel more and the EBITDA, growth, the around generated they driving coming process continued the in retail fiscal ago. EBITDA that We just year XX% for as right, both and delivered XXXX for both the channel. what's is million more And digital transactions revenues that about BOSS $XX the in that you're will budgeting our has seeing, probably in XXXX. of than from believe 'XX Money than double We begun that a month

starting business faster show efficiencies, we to bottom in strength of that's continue that Pereira, the line, itself business month go SG&A Shmuel more We a Bill top a at scale operational And into to line to really and the of on the to see terms importantly, But QX, of to as automation. the August, the tackled on on allow leadership managing that during clip. September. we of not the improving lot have

bit a for profit, to the XX% what for margin And year, important focus trying improve a this shifting we on call business, GMPT. metric actually most not to what in as of little is start new our focus transaction, which type growth, now is decide us for push a going per little bit gross of be continued but the we gross to is

are of line bit that a We to and generate but that's better going in to higher cost starting GMPT terms growth, okay, cash to little flows. stronger bottom some line changes yield pricing make top in further even in

The little bit Yes. a as to value every I many I of or it's one on really want conservative whether try good We that having that expanded customer. being thing for would I think well projections. time. say as a to profitability be very might longer Marcelo in a of us his as or again, with long stay the in happy But beginning, both balance have customers a lifetime GMPT not you question is said

is our we of the like to when a top mobile many largest day our is business, MTU and corporation part of going start our traditional which extent business top-up that To nice growth about business -- segment. line. some on the in revenue seeing our business you're or Also, [indiscernible] very which in ways think the our

you that's some lot made than in to of be year. going in have in the traditional We to a pricing to what changes really have contribute terms and the less communications portfolio, decline past the seen help overall

this this Great. is for in first my And time dialing call.

I'm the think decline standpoint, not mentioned much then high-growth in it are forward an wondering but traditional what of from improvement in bit willing offset outlook could and sure in guys like And rate decline also you on of the how I'm historically comment will then decline the maybe looked you more that. that mature just of than moderate. the decline, on business. comment a you to And topics businesses So a decline? little business the rate the you

means I'm in bit that sure. you talk view provide XXXX? you can And revenue little not do EBITDA, forward what about commentary on if expect you So if that, growth a for in that your

Sure.

the at take then and me consolidated look time. picture. Let Traditional one at segment thing a

lot have So years. voice our been in the businesses of it's there a most distance story. many long businesses decline new Those legacy In our the Traditional for of -- a businesses. is segment, not now

and of both rate business We expect continue top double of the the coming digits. decline revenues to line in that be carrier also to evolution

businesses cash are those managing strong for We maximum flow efficiency, generation.

businesses. fiscal XXXX those declined businesses, do capital significant saw million. those in you $XX about traditional for the we by EBITDA its Now And allocate segment not

year, executed as large the I XXXX, new -- as for in in on beyond. this exercises XXXX. during start both that of about prior seeing stable, ] going but a them. thinking and impact are did were cost-cutting QX quite of result that had of We cuts the we mentioned [ those we And to calls, Now we

segment, that as of of business, the payments that is stock due probably a as in fact that, as year. growth volume $XX this which this year both of debt, is result coming changes. terms as part mentioned $X what The make cutting result of million ] million, for mode, mobile a in as less well EBITDA IDT's as which decline I So well strategic top-up coming earlier, [ $X traditional pricing now the faster you conventional this a to than million, around be in lot a for maybe to and cost very business,

] probably right? So million increase EBITDA that see I consolidated really fiscal $XX that it the estimated combined be businesses. like leads XXXX, And traditional from in probably we'll slight revenue. picture, to coming to the about [ a be of believe

the focused consolidated to you more the important revenue and of we have core line coming businesses bottom has things very than decline in at that growth every the down we been at than be fact that down start able to businesses generating EBITDA more year line, if But EBITDA is able our traditional Now are the that demonstrate businesses the the now many been that, for of strong. bottom one the increase years despite become as to side. look new

a I it's on we EBITDA. X years have about or grown $XX X We a finished that think XXXX consolidated basis. record EBITDA now with in million

in ever think looking today being EBITDA than $XX XXXX I that definitely ] positive, It's the happened history. that's highest to years. we EBITDA [ QX of million, in we now Our tough about -- could businesses just that at for a more IDT's our it all And guidance. XXXX, believe top $XXX with it EBITDA XX EBITDA announced million

The Carter Instructions] Will investor. coming from private [Operator [ ], first

larger Are Money, growth BOSS strong year. lot you a pocket market? understand you space. guys again competitive quarter from? a this competitors? within continues the just strong where really obviously, share of the Yes. of from are a Interesting seeing this coming within Is to Where kind and that's growth growth this from On taking really

mean transfer. I them know. who definitely, really they've most don't I money have used to find do is we And truth survey the mean I others. of used customers out previously with for

that from to competitors. we're I business taking degree, some guess So away

all think sure services that them I happy do they're that talking, job of our that tell good our different very cross-selling that so they're drives similar amongst to and a they customers we when on making and [indiscernible], us.

our say not opposed sort who really about As customer really wildly I'll try of competitors acquisition, to some on to became overspend. of have and we it spend

And We're making focused on that, customer is and than if customer against. the all that that's really said, good, pricing customers the drive very answer. that competitors I as sure that relationships. our better, of make simple things And long-term our as profitable just relationships, work we track we for sure we not

trying stronger in attract is recently, IDT, guys guys used we offer becoming [indiscernible] brand you you we're way Yes. the oh, this called until for believe calling, comments Like and evolution you we service. I that, at that Money the around. BOSS [indiscernible] to didn't to do also BOSS that Money that a know customers BOSS presence get a

You trade. didn't now. the get on I right more is customer saying, Right? calling." international the So BOSS in marketplace a a long distance BOSS you you do that to becoming brand Money stronger from got "Oh, know

you different there it guys corridors across have other you certain feel corridors and countries? the the U.S. share? is where Are Or between sort Yes. payment outsized of

a it's mean a U.S. mean, I from high have we a percentage. some almost again, we to of as small say but share transaction. is would I transactions outbound. are have share we high every our that, goal to make Canada And that we again, to. a country have well, countries Well, that it do And try country today I XXX% we

get self-fulfilling. becomes you scale, to I'll say, obviously, it and certain So a more,

But telling a to each big get more it. the start this X about couple a share definitely we other hopefully, enough or have of You that have markets. X and reached customers And in year. we'll

in not Yes. Mexico irony big operations that is large one yet them, Mexico. I a mean the of And part obviously, it's us, corridor. U.S., transfer for corridor top of actually corridor. largest for is It's very the money not is most the the

our Mexico. We are growing presence in

share So to from as we opportunity point to an at more actually [indiscernible]. view Mexico try this even get market

would kind amazing just NRS what to then question helpful similar Congratulations, my kind goals gave that be year. is of any get it. that revenue maybe around really SG&A That's And targets Got required helpful. the to will there? last overview maybe on you XXXX, on Marcelo and terminal another It guys. then of be levels deployments on think about

continues Yes. very robust. I mean NRS be to

growth a continue have trend right U.S. We about POS network, driven levers more past selling increase the on what is the network to pay with together budgeted expect we Merchant to going years been and for which our that accounts going be service in POS That's operating year, a objective the continued XXX the the few grow business. and by X,XXX net a to roughly of by the year, That's the POS forward. to basis. by month Services has the

line, think we're bottom how want I will year. margin margin balancing including net XX% always that [ to right line act about and margins, top a ] XX% you go of this doing now, be coming growth. probably much It's net

of So same investment time. have and good growth I we gotten balance the think a level at

grow not this $XX we rep XX% if grow, of So delivered is top million EBITDA that for been be year. here on of I would surprised NRS another the

so. that we do a I don't what But I can only really products it and recently our going -- lot at -- be impact we just in -- self-ordering, volume we I say hopefully, for doing growth month would mean you of stores like think numbers to a for know mean, term. so what out we're to our store are today. are that pockets we in some how or is they have I in of that tell sold them launched have thing that greater I Yes. launched is, in of I every more to continue I make yet we'll kiosks mean long than we add them. every I the only on there that mean mean we'll

tablet-based is to a to our Canstar paying, and kiosk. ago, it a as I of about well going launch to well. our mean more as paying wallet And the POS new the mean months on likely in launch iOS of it's versus interesting actually expect quite we're kiosks And at developing a probably thing going year. this a very it merchant that end from we which we now well much of me we're done they're their the POS, for launched system to amount are is form the in of when And increases as factors the well. fiscal that very, people I are about out as cash store couple to pull and counter services by couple pay significantly. tablet

from that start lot in that go a self-sign app the also fill our especially They need either able our on they just busier there's can start existing also transactions. comes queue a the and And of day retailers from So very product out the tablet forming downloaded on the been out will pull doing it's website, them extra and form, moving and line. and they're letter, a out when be move to to an you good for app help a register. demand, faster, fill store up be

happening. things the So those of are yes, are some new that

private ], Martine Investor. Max [ from comes question next Our

outside market." think Panther the independent is home screens? digital the the pure screens all kind you question hundreds -- you kiosk bit of question locations First retail Or our POS-related NRS, remarks relating And the I and of and of said, you guys little screens "Under of screens for previous deploying are to all, where mentioned just My it of just a covered congratulations looking tablets actually is guys it's new in do in ] quarter. to [ guys like the advertising? offer you on

locations, the second at? verticals really lot is guys within looking still And are core you you question Do like a see to the like new brands of Are on expand your just the between looking you the of guys part market? verticals now? what

Great.

So there. a questions bunch of

to give when I'll all answer. I you So remember of an them try

alone. new for right for screens, quarter. a we're locations actually hundred couple as just lobbies things stores to adjacent focus. is this far new quick -- whether doing that to again, As placed more or anything hotel big for us, still today for screens, trying as X,XXX just or We And main over vertical that verticals, far push to go that's as a definitely now, we is not that's service we're hardware of which SKU-based restaurants, ordered our really the are past

run, is they that really We completely definitely Liquor customized liquor our it's it, store someone everything a big just call division need. I'll for sure that to make to stores focus. hired

continue We going after gas stations.

out We are right probably And to the -- that's But shortly. adjacent biggest unfortunately, other sold where be now, continue we'll more QSR so now. we is vertical some that testing getting but for our kiosks in our verticals. waters we're of again, is

Maram Amigo follow-up Capital from with ]. a [ coming have Alonzo We

Money, you with Northeast the about NRS. a the stronger in considered have you country retailers. BOSS way you of to over like locations the maybe retail a do Again, more released the have to the just was strategy the like that and have information it wondering number nationwide. I you what's areas in grow if public that And track presence you in ask wanted looks I a

We lifetime consider know to I number comments I we're don't GMPT, secret, a the be focused in to we're of slightly or are really that release do it a retail don't and handful the money lot but information They locations transactions. having. similar retailers want have, retailers Again, the on That's that we not mean the not. are effort a doing than the customer do that sure don't value we and state we transactions. on X,XXX focused I worth that making we that locations of at. to profitable they're that cost of but goal. transfer made we're our if about more us I have have under

a lot of reason. So we locations do open that for and close

the we having continues However, would focus, but digital profitability that base, to say definitely that And where our from. that main on continues be our and that solid is is to be focused what seeing I the the you're in growth growing retailer majority are can of we're verticals. really

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

disconnect. now You may