IDT Corporation Reports Second Quarter Fiscal Year 2023 Results

High Growth, High Margin Businesses Drive Substantial EPS Increase

NEWARK, NJ, March 08, 2023 — IDT Corporation (NYSE: IDT), a global provider of fintech, cloud communications, and traditional communications services, today reported results for the second quarter of its fiscal year 2023, the three months ended January 31, 2023.

HIGHLIGHTS

(Throughout this release, unless otherwise noted, results for the second quarter of fiscal year 2023 (2Q23) are compared to the second quarter of fiscal year 2022 (2Q22). All earnings per share (EPS) and other ‘per share’ results are per diluted share.)

  • National Retail Solutions (NRS) increased recurring revenue* 103% to $18.3 million. Active point-of-sale (POS) terminals increased by approximately 1,600 during 2Q23, a record quarterly increase, to approximately 22,400 at the end of the quarter;
  • BOSS Money remittance revenue increased 47% to $17.6 million. Transaction volume increased by 39% to 3.06 million;
  • net2phone subscription revenue* increased 30% to $16.3 million and net2phone achieved positive Adjusted EBITDA for the second consecutive quarter. Seats served increased by approximately 18,000 sequentially to end 2Q23 at approximately 327,000;
  • Consolidated revenue decreased 7% to $314 million while the consolidated direct cost of revenue decreased 14% to $222 million;
  • Consolidated income from operations increased 32% to $18.2 million;
  • Net income attributable to IDT increased to $14.6 million from $7.5 million;
  • Consolidated Adjusted EBITDA increased 25% to $23.4 million; and
  • EPS increased to $0.57 from $0.28. Non-GAAP EPS increased to $0.62 from $0.30.

Adjusted EBITDA 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

“NRS, BOSS Money and net2phone, our three primary high-growth businesses, again performed very well this quarter. Their formula is simple – delivering better value and superior customer experiences. I’m pleased that they continued on their growth trajectories while remaining very focused on improving their bottom lines.

“Each of these businesses grew robustly in the second quarter. In addition to adding a record number of net new terminals this quarter, NRS once again more than doubled its recurring revenue led by a year over year jump in advertising and data revenue. net2phone achieved 30% year over year subscription revenue growth with a 35% increase in our Latin American markets and a 23% increase in US-based revenue. At BOSS Money, transaction volumes through both our retail and direct-to-consumer sales channels increased by 39% year over year, as we continued to leverage the synergies between the two channels.

“Led by their contributions, IDT delivered significant year over year increases in Adjusted EBITDA, income from operations, and EPS.”

RESULTS BY SEGMENT

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 with other ancillary merchant services. NRS’ POS platform provides marketers with digital out-of-home (DOOH) advertising and transaction data.

In 2Q23 and 2Q22, NRS contributed 6.3% and 3.2% of IDT’s consolidated revenue, respectively.

NRS Results
($ in millions. Terminals and accounts at end of period)

2Q23 1Q23 2Q22 2Q23-2Q22 change %
Terminals and payment processing accounts
Active POS terminals 22,400 20,800 16,500 +35 %
Payment processing accounts 12,500 11,300 8,000 +55 %
Recurring revenue
Advertising & Data $ 9.0 $ 9.7 $ 3.9 +130 %
Merchant Services and other $ 7.4 $ 6.4 $ 3.8 +95 %
SaaS fees $ 1.9 $ 1.8 $ 1.3 +47 %
Total recurring revenue $ 18.3 $ 17.8 $ 9.0 +103 %
POS terminal sales $ 1.5 $ 1.5 $ 1.6 (7 )%
Total revenue $ 19.8 $ 19.3 $ 10.6 +87 %
Monthly average recurring revenue per terminal* $ 283 $ 296 $ 190 +49 %
Income from operations $ 5.4 $ 5.2 $ 2.1 +161 %
Adjusted EBITDA $ 6.0 $ 5.7 $ 2.2 +166 %


Take-Aways
:

  • Sequentially, NRS added approximately 1,600 net active terminals — the largest quarter-over-quarter gain in its history.
  • Despite advertising industry-wide headwinds, Advertising & Data revenue increased 130% year over year, driving a 103% increase in total recurring revenue. Income from operations increased 161% year over year to $5.4 million.

Fintech

The Fintech segment is comprised of BOSS Money an international money remittance provider, as well as other, significantly smaller financial services offerings.

In 2Q23 and 2Q22, the Fintech segment contributed 6.5% and 4.3% of IDT’s consolidated revenue, respectively.

Fintech Results
($ in millions. Transactions in thousands)

2Q23 1Q23 2Q22 2Q23-2Q22
Change %
BOSS Money Transactions 3,061 2,871 2,204 +39 %
Fintech Revenue
BOSS Money $ 17.6 $ 17.6 $ 12.0 +47 %
Other $ 2.7 $ 2.3 $ 2.6 +4 %
Total Revenue $ 20.3 $ 19.9 $ 14.6 +39 %
(Loss) Income from operations $ (0.8 ) $ 1.5 $ (2.3 ) +$1.5
Adjusted EBITDA $ (0.5 ) $ 0.5 $ (1.7 ) +$1.2

Take-Aways:

  • BOSS Money transaction volumes increased 39% in 2Q23 with strong contributions from both retail and digital channels.
  • BOSS Money average revenue per transaction* increased 5.7% in 2Q23 to $5.77 from $5.46 in 2Q22. The increase was driven by unusually favorable economics on certain high-volume African corridors that dissipated late in the quarter and by the development and introduction of new platform functionalities enabling more flexible and granular pricing strategies.

net2phone

In 2Q23 and 2Q22, the net2phone segment accounted for 5.7% and 4.0% of IDT’s consolidated revenue, respectively.

net2phone Results
($ in millions. Seats in thousands)

2Q23 1Q23 2Q22 2Q23-2Q22
Change %
Seats 327 309 258 +27 %
Revenue
Subscription revenue $ 16.3 $ 15.5 $ 12.5 +30 %
Other revenue $ 1.5 $ 1.4 $ 1.0 +45 %
Total Revenue $ 17.8 $ 17.0 $ 13.5 +31 %
Loss from operations $ (0.6 ) $ (1.1 ) $ (2.9 ) +$2.3
Adjusted EBITDA $ 0.8 $ 0.3 $ (1.9 ) +$2.7


Take
Aways:

  • Total seats as of January 31, 2023 increased by 27% to approximately 327,000 from 258,000 a year earlier, led by growth in net2phone’s Latin American markets.
  • The continued improvements in loss from operations and Adjusted EBITDA reflect multiple factors: the strengthening of unit economics as the business scales and revenue increases; the acquisition of a CCaaS provider in 3Q22 and subsequent increases in higher ARPU, higher margin CCaaS seats; a continued focus on cost control; and, investment in customer acquisition within geographic markets and verticals that yield higher returns on investment.

Traditional Communications

In 2Q23 and 2Q22, the Traditional Communications segment accounted for 81.5% and 88.5% of IDT’s consolidated revenue, respectively.

Traditional Communications Results
($ in millions)

2Q23 1Q23 2Q22 2Q23-2Q22
Change %
Revenue
IDT Digital Payments $ 106.1 $ 109.0 $ 116.2 (9 )%
BOSS Revolution Calling $ 82.8 $ 86.3 $ 100.0 (17 )%
IDT Global $ 58.6 $ 61.6 $ 73.1 (20 )%
Total Revenue $ 256.0 $ 265.7 $ 298.3 (14 )%
Income from operations $ 17.0 $ 17.3 $ 19.9 $ (2.9 )
Adjusted EBITDA $ 19.6 $ 19.7 $ 22.3 $ (2.7 )


Take
Aways:

  • The year-over-year decrease in IDT Digital Payments revenue reflects the deterioration of a key corridor that was particularly impactful to sales in the lower margin wholesale and retail channels and so had a limited impact on margin profitability. Revenue in the higher margin direct to consumer channel increased 6% over the same period.
  • BOSS Revolution Calling revenue decreased 17% in 2Q23 to $82.8 million from $100.0 million in 2Q22. IDT Global’s carrier services revenue decreased 20% in 2Q23 to $58.6 million from $73.1 million in 2Q22. These decreases continue to reflect the long-standing industry-wide decline in the paid minute calling markets and are in line with expectations.
  • In February, IDT Digital Payments launched Zendit, a cloud-based, prepaid-as-a-service platform enabling businesses to easily add a curated menu of airtime top-ups and other cross-border prepaid offerings to their apps and websites.

NOTES ON FINANCIAL STATEMENTS

Consolidated results for all periods presented include corporate overhead. Corporate G&A expense in 2Q23 increased to $2.5 million from $2.3 million in 2Q22.

As of January 31, 2023, IDT held $156.8 million in cash, cash equivalents, debt securities, and current equity investments. Current assets totaled $373.5 million and current liabilities totaled $287.9 million. IDT had no outstanding debt at quarter end.

Net cash provided by operating activities during 2Q23 was $17.4 million compared to $17.5 million during 2Q22. Exclusive of changes in customer deposit balances at our Gibraltar-based bank, net cash provided by operating activities during 2Q23 was $20.3 million compared to $6.3 million during 2Q22.

Capital expenditures increased to $5.4 million in 2Q23 from $4.6 million in 2Q22.

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 5:30 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: 151514).

A replay of the conference call will be available approximately three hours after the call concludes through March 22, 2023. 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: 47574. 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 Relations
Bill Ulrey
william.ulrey@idt.net
973-438-3838

IDT CORPORATION
CONSOLIDATED BALANCE SHEETS

January 31, 2023 July 31, 2022
(Unaudited)
(in thousands)
Assets
Current assets:
Cash and cash equivalents $ 117,811 $ 98,352
Restricted cash and cash equivalents 89,867 91,210
Debt securities 29,777 22,303
Equity investments 9,213 17,091
Trade accounts receivable, net of allowance for doubtful accounts of $6,255 at January 31, 2023 and $5,882 at July 31, 2022 47,605 64,315
Disbursement prefunding 28,098 21,057
Prepaid expenses 14,611 17,526
Other current assets 36,559 30,773
Total current assets 373,541 362,627
Property, plant, and equipment, net 38,303 36,866
Goodwill 26,547 26,380
Other intangibles, net 8,985 9,609
Equity investments 6,687 7,426
Operating lease right-of-use assets 6,894 7,210
Deferred income tax assets, net 28,913 36,701
Other assets 10,641 10,275
Total assets $ 500,511 $ 497,094
Liabilities and equity
Current liabilities:
Trade accounts payable $ 23,229 $ 29,080
Accrued expenses 110,580 117,109
Deferred revenue 34,998 36,531
Customer deposits 86,899 85,764
Other current liabilities 32,215 36,588
Total current liabilities 287,921 305,072
Operating lease liabilities 4,243 4,606
Other liabilities 4,944 6,588
Total liabilities 297,108 316,266
Commitments and contingencies
Redeemable noncontrolling interest 10,389 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 January 31, 2023 and July 31, 2022 33 33
Class B common stock, $.01 par value; authorized shares-200,000; 27,782 and 27,725 shares issued and 23,952and 24,112 shares outstanding at January 31, 2023 and July 31, 2022, respectively 278 277
Additional paid-in capital 298,649 296,005
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 January 31, 2023 and July 31, 2022, respectively (106,906 ) (101,565 )
Accumulated other comprehensive loss (13,711 ) (11,305 )
Retained earnings (accumulated deficit) 9,795 (15,830 )
Total IDT Corporation stockholders’ equity 188,138 167,615
Noncontrolling interests 4,876 3,022
Total equity 193,014 170,637
Total liabilities and equity $ 500,511 $ 497,094


IDT CORPORATION

CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

Three Months Ended
January 31,
Six Months Ended
January 31,
2023 2022 2023 2022
(in thousands, except per share data)
Revenues $ 313,936 $ 337,058 $ 635,752 $ 707,141
Costs and expenses:
Direct cost of revenues (exclusive of depreciation and amortization) 222,394 257,325 454,031 548,950
Selling, general and administrative (i) 68,153 61,070 134,017 121,177
Depreciation and amortization 5,012 4,378 9,801 8,825
Severance 213 29 312 67
Total costs and expenses 295,772 322,802 598,161 679,019
Other operating gain (expense), net 17 (442 ) 816 (530 )
Income from operations 18,181 13,814 38,407 27,592
Interest income, net 810 119 1,320 132
Other income (expense), net 1,613 (2,949 ) (2,229 ) (19,165 )
Income before income taxes 20,604 10,984 37,498 8,559
Provision for income taxes (5,295 ) (2,734 ) (9,634 ) (2,648 )
Net income 15,309 8,250 27,864 5,911
Net (income) attributable to noncontrolling interests (686 ) (763 ) (2,239 ) (896 )
Net income attributable to IDT Corporation $ 14,623 $ 7,487 $ 25,625 $ 5,015
Earnings per share attributable to IDT Corporation common stockholders:
Basic $ 0.57 $ 0.29 $ 1.00 $ 0.20
Diluted $ 0.57 $ 0.28 $ 1.00 $ 0.19
Weighted-average number of shares used in calculation of earnings per share:
Basic 25,510 25,652 25,556 25,609
Diluted 25,538 26,542 25,577 26,580
(i) Stock-based compensation included in selling, general and administrative expenses $ 1,286 $ 310 $ 1,858 $ 595


IDT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

Six Months Ended January 31,
2023 2022
(in thousands)
Operating activities
Net income $ 27,864 $ 5,911
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 9,801 8,825
Deferred income taxes 7,788 1,683
Provision for doubtful accounts receivable 915 1,289
Net unrealized loss from marketable securities 2,349 16,242
Stock-based compensation 1,858 595
Other 1,359 2,850
Change in assets and liabilities:
Trade accounts receivable 16,298 (8,045 )
Disbursement prefunding, prepaid expenses, other current assets, and other assets (11,492 ) (8,551 )
Trade accounts payable, accrued expenses, other current liabilities, and other liabilities (19,344 ) (6,313 )
Customer deposits at IDT Financial Services Limited (Gibraltar-based bank) 15 (1,862 )
Deferred revenue (1,795 ) (960 )
Net cash provided by operating activities 35,616 11,664
Investing activities
Capital expenditures (10,578 ) (8,991 )
Purchase of convertible preferred stock in equity method investment (1,051 )
Payments for acquisitions, net of cash acquired (100 )
Purchases of debt securities and equity investments (28,129 ) (10,825 )
Proceeds from maturities and sales of debt securities and redemptions of equity investments 27,531 6,068
Net cash used in investing activities (11,176 ) (14,899 )
Financing activities
Distributions to noncontrolling interests (187 ) (198 )
Proceeds from other liabilities 300 2,301
Repayment of other liabilities. (2,014 ) (1,291 )
Proceeds from borrowings under revolving credit facility 2,383 2,488
Repayment of borrowings under revolving credit facility. (2,383 ) (2,488 )
Proceeds from sale of redeemable equity in subsidiary 10,000
Proceeds from exercise of stock options 172
Repurchases of Class B common stock (5,341 ) (8,974 )
Net cash (used in) provided by financing activities (7,070 ) 1,838
Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents 746 (4,967 )
Net increase (decrease) in cash, cash equivalents, and restricted cash and cash equivalents 18,116 (6,364 )
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 $ 207,678 $ 220,552
Supplemental schedule of non-cash financing activities
Stock issued to certain executive officers for bonus payments $ 615 $


Reconciliation of Non-GAAP Financial Measures for the

Second 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 for 2Q23, 1Q23, and 2Q22, Adjusted EBITDA and non-GAAP earnings per diluted share (EPS), both 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 EPS is calculated by dividing non-GAAP net income by the diluted weighted-average shares. IDT’s measure of non-GAAP net income starts with net income attributable to IDT 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.

Management believes that IDT’s Adjusted EBITDA 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 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, 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 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 and non-GAAP EPS. Other operating gain (expense), net primarily includes gains from the write-off of a contingent consideration liabilities, 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 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 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, 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 and non-GAAP EPS may not be comparable to similarly titled measures reported by other companies.

Following are reconciliations of Adjusted EBITDA 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 for IDT on a consolidated basis, and (b) for non-GAAP EPS, diluted earnings per share.

IDT Corporation
Reconciliation 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 January 31, 2023 (2Q23)
Net income attributable to IDT Corporation $ 14.6
Adjustments:
Net income attributable to noncontrolling interests 0.7
Net income 15.3
Provision for income taxes 5.3
Income before income taxes 20.6
Interest income, net (0.8 )
Other income, net (1.6 )
Income (loss) from operations 18.2 $ 17.0 $ (0.6 ) $ 5.4 $ (0.8 ) $ (2.8 )
Depreciation and amortization 5.0 2.4 1.4 0.6 0.7
Severance 0.2 0.2
Other operating (gain) expense, net (0.3 ) 0.3
Adjusted EBITDA $ 23.4 $ 19.6 $ 0.8 $ 6.0 $ (0.5 ) $ (2.5 )

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 )


IDT Corporation

Reconciliation 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 January 31, 2022 (2Q22)
Net income attributable to IDT Corporation $ 7.5
Adjustments:
Net income attributable to noncontrolling interests 0.8
Net income 8.3
Provision for income taxes 2.7
Income before income taxes 11.0
Interest income, net (0.1 )
Other expense, net 2.9
Income (loss) from operations 13.8 $ 19.9 $ (2.9 ) $ 2.1 $ (2.3 ) $ (3.0 )
Depreciation and amortization 4.4 2.4 1.3 0.2 0.5
Other operating expense (gain), net 0.4 (0.3 ) 0.7
Adjusted EBITDA $ 18.7 $ 22.3 $ (1.9 ) $ 2.2 $ (1.7 ) $ (2.3 )


IDT Corporation

Reconciliation of Earnings per share to Non-GAAP EPS
(unaudited) in millions, except per share data. Figures may not foot due to rounding to millions.

2Q23 1Q23 2Q22
Net income attributable to IDT Corporation $ 14.6 $ 11.0 $ 7.5
Adjustments (add) subtract:
Stock-based compensation (1.3 ) (0.6 ) (0.3 )
Severance expense (0.2 ) (0.1 )
Other operating gain (expense), net 0.8 (0.4 )
Total adjustments (1.5 ) 0.1 (0.8 )
Income tax effect of total adjustments (0.4 ) (0.2 )
1.1 (0.1 ) 0.6
Non-GAAP net income $ 15.7 $ 10.9 $ 8.1
Earnings per share:
Basic $ 0.57 $ 0.43 $ 0.29
Total adjustments 0.05 0.02
Non-GAAP – basic $ 0.62 $ 0.43 $ 0.31
Weighted-average number of shares used in calculation of basic earnings per share 25.5 25.6 25.7
Diluted $ 0.57 $ 0.43 $ 0.28
Total adjustments 0.05 0.02
Non-GAAP – diluted $ 0.62 $ 0.43 $ 0.30
Weighted-average number of shares used in calculation of diluted earnings per share 25.5 25.6 26.5


*Explanation of Key Performance Metrics

NRS’ recurring revenue is NRS’ revenue in accordance with GAAP excluding revenue from POS terminal sales.

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. 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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Primary Logo

NRSInsights’ February 2023 Retail Same-Store Sales Report

Same-store sales at NRS retailers in February were robust, increasing 10.7% Year Over Year

NEWARK, N.J., March 06, 2023 — NRSInsights, a provider of sales data and analytics drawn from retail transactions processed through the National Retail Solutions (NRS) point-of-sale (POS) platform, today announced comparative same-store sales results for February 2023.

As of February 28, 2023, the NRS retail network comprised approximately 23,000 terminals scanning purchases at independent retailers including bodegas, convenience stores, liquor stores, grocers, and tobacco and sundries sellers nationwide, predominantly serving urban consumers.

Retail Same-Store Sales Highlights

(Sequential comparisons are influenced by seasonal factors)

  • Same-store sales increased 10.7% from a year earlier (February 2022). Sales decreased 6.1% compared to the preceding month (January 2023) reflecting the shorter, 28-day month;
  • Same-store sales in the preceding month (January 2023) had increased 11.5% compared to the year-ago month (January 2022) but had decreased 6.0% compared to the previous month (December 2022), largely as a result of seasonal factors;
  • For the three months ended February 28, 2023, same-store sales increased 10.0% compared to the three months ended February 28, 2022;
  • The number of items sold during February 2023 increased 9.6% compared to February 2022 but decreased 6.6% compared to January 2023;
  • The average number of transactions per store in February 2023 increased 7.3% compared to February 2022 but decreased 7.0% compared to January 2023;
  • A dollar-weighted average of prices for the top 500 items purchased in February 2023 increased 4.2% year over year, an increase compared to a 4.0% year-over-year increase in January 2023 compared to January 2022.

Commentary from Suzy Silliman (SVP, Data Strategy and Sales at NRS)

“NRS same-store sales for February again grew robustly compared to year ago levels, increasing 10%. The robust increases in both items sold and number of items per transaction compared to February 2022 again demonstrate that recent sales gains were not primarily a function of price increases.

“Nevertheless, price pressure remains stubbornly high. The dollar-weighted average of our retailers’ top items sold increasing to 4.2% year-over-year from 4.0% in January. And once again this month, the price increases of many staples were extreme. For instance, infant formula prices increased 81% year over year, egg prices also increased 81%, and tortilla prices jumped 35%.”

Retail Trade Comparative Data

The table below provides historical comparative data with the U.S. Commerce Department’s Advance Monthly Retail Trade data excluding food service:

Over the prior 12 months, the NRS same-store retail sales data has exhibited a statistically significant correlation with the US Commerce Department’s Advance Monthly Retail Trade data excluding food services (r=.673, p = 0.016) despite a decrease in the correlation in recent months.

The NRSInsights data have not been adjusted to reflect inflation, demographic distributions, seasonal buying patterns, item substitution, or other factors that may facilitate comparisons to other periods, to other same-store retail sales data, or to the U.S. Commerce Department’s retail data.

NRSInsights Reports

The NRSInsights monthly Same-Store Retail Sales Reports are intended to provide timely topline data reflective of sales at NRS’ network of independent, predominantly urban, retail stores.

Same-store data comparisons of February 2023 with February 2022 are derived from approximately 114 million transactions processed through the 12,877 stores on the NRS network that scanned transactions in both months. Same-store data comparisons of February 2023 data with January 2023 data are derived from approximately 119 million transactions processed through 19,031 stores.

Same-store data comparisons for the three months ended February 28, 2023 with the year ago three months are derived from approximately 342 million transactions in both quarters.

NRS POS Network

NRS operates the largest POS network for independent retailers in the U.S., aggregating data from approximately 23,000 active POS terminals operating in approximately 20,000 independent retail stores. Its platform predominantly serves urban, small-format, independent, retail stores including convenience stores, bodegas, liquor stores, grocers, and tobacco and sundries sellers. The network includes retailers in all 50 states and in 193 of the 210 designated market areas (DMAs) in the U.S. Over the past twelve months, NRS’ POS terminals processed $13.9 billion in sales through approximately 997 million transactions.

About National Retail Solutions (NRS):

National Retail Solutions operates a point-of-sale (POS) terminal-based platform and digital payment processing service for independent retailers and bodega owners nationwide. Retailers utilize NRS offerings to process transactions and manage operations more effectively. Advertisers access the terminal’s digital display network to reach these retailers’ massive, predominantly urban customer bases. Consumer packaged goods (CPG) suppliers leverage the NRS platform to provision promotions, coupons, and special offers to independent retailers. NRS is a subsidiary of IDT Corporation (NYSE: IDT).

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.

NRSInsights Contact:
Suzy Silliman
SVP, Data Strategy and Sales at NRS
National Retail Solutions
suzy.silliman@nrsplus.com

suzy.silliman@nrsplus.comIDT Corporation Contact:
Bill Ulrey
william.ulrey@idt.net

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Leaf Wallet App Rebranded to BOSS Money as Part of Expansion Across Africa

BOSS Money Customers across Africa will be able to Receive Money Transfers Directly into their Boss Money Wallet from Family and Friends in the U.S.

NEWARK, United States of America, February 9, 2023/APO Group/ — IDT Corporation, a global provider of fintech, cloud communications, and traditional communications services, announced today that it is rebranding its Africa-based Leaf Wallet app to IDT’s flagship financial services brand, BOSS Money.
The rebranding is part of a broader initiative to leverage the key technologies of Leaf Wallet to gradually expand across Africa allowing U.S. consumers to send money transfers directly to family and friends in the Continent.

“We see a tremendous opportunity across Africa to grow our footprint and reach millions of new customers with the BOSS Money wallet”

Nat Robinson, Leaf’s CEO

The newly branded BOSS Money wallet will continue to use the Leaf Wallet’s innovative, blockchain-based technology on the Stellar Network, so that customers across Africa can safely store, send, receive, and exchange currencies on their phones domestically and across borders. The wallet will continue to allow customers to access funds and transact on feature phones utilizing a USSD interface accessed via a short code and via the app.

The Boss Money wallet will enable customers across Africa to receive money in their local currency directly from customers in the U.S using the BOSS Money app. Transferred funds can be used to purchase airtime, pay bills locally, and send to other BOSS Money users across Africa for free. Funds can also be cashed out to the recipient’s bank account or their mobile operator’s wallet.

“We see a tremendous opportunity across Africa to grow our footprint and reach millions of new customers with the BOSS Money wallet and to connect both our current and new customers to their family and friends in the U.S.,” said Nat Robinson, Leaf’s CEO.

The newly rebranded BOSS Money app is already available for download in Kenya, Uganda, and Rwanda, and will soon be available in Nigeria, Ghana, Zambia, and Tanzania.

“BOSS Money will enable customers in the U.S. to send money safely and securely within seconds like a local to family, friends, and loved ones across Africa. Recipients of the funds can use their BOSS Money wallet to choose how, when, and where to access those funds,” said Grace Anyetei, IDT’s Regional Director of Operations based in Nairobi, Kenya.


About IDT Corporation:

IDT Corporation (https://www.IDT.net/) is a global provider of fintech, cloud communications, and traditional communications services. We help families to share, communicate and support each other across international borders. We also enable businesses to transact and communicate with their customers with enhanced intelligence and insight.

Our National Retail Solutions’ (NRS) (https://NRSplus.com/) point-of-sale network enables independent retailers to operate and process transactions more effectively while providing advertisers and consumer marketers with unprecedented reach into underserved consumer markets. Our BOSS Money international money remittance (https://bit.ly/3HJUxs3) and mobile top-up (https://bit.ly/3RGhj8T) services offer convenient and reliable value transfers. Our BOSS Revolution (https://bit.ly/3DT3a2l) calling service provides dependable voice and messaging communications globally. net2phone’s (https://www.net2phone.com/) unified communications and contact center solutions provide businesses with intelligently integrated cloud communications and collaboration tools across channels and devices. Our IDT Global (https://IDTglobal.com/) and IDT Express (https://www.IDTexpress.com/) 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.

IDT Corporation to Report Second Quarter FY2023 Results

NEWARK, NJ, Feb. 24, 2023 — IDT Corporation (NYSE: IDT), a global provider of fintech, cloud communications, and traditional communications services, has scheduled its report of financial and operational results for the second quarter of its fiscal year 2023 (the three months ended January 31, 2023) on Wednesday, March 8, 2023.

IDT’s earnings release will be issued and posted on the IDT investor relations website (https://www.idt.net/investors-andmedia) at approximately 4:30 PM Eastern.

IDT will host an earnings conference call beginning at 5:30 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: 151514).

A replay of the conference call will be available approximately three hours after the call concludes through March 22, 2023. 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: 47574. The replay will also be accessible via streaming audio at the IDT investor relations website.

About IDT Corporation:

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.

Contact:
Bill Ulrey
IDT Investor Relations
Phone: (973) 438-3838
E-mail: invest@idt.net

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IDT Introduces Zendit, a Global Prepaid-as-a-Service Platform

API Ecosystem Vastly Simplifies Provisioning of Mobile Top-Up and Other Prepaid Retail Offerings for Global Audiences

Zendit to be Unveiled at Mobile World Congress 2023

NEWARK, NJ, Feb. 23, 2023 — IDT Corporation (NYSE: IDT), a global provider of fintech, cloud communications, and traditional communications services, today announced the launch of its cloud-based prepaid-as-a-service platform, Zendit. Zendit will be introduced at the Mobile World Congress 2023 (MWC) in Barcelona, Spain, from February 27th to March 2nd.

With the Zendit platform, businesses of all sizes, entrepreneurs, and developers will be able to easily add a powerful, global monetization channel to their apps and websites – prepaid offerings curated from a global digital catalog of over 10,000 goods and services including mobile airtime top-ups, mobile data bundles, digital gift cards, and utilities.

“The rapid adoption of digital prepaid services in combination with the extensive reach of mobile – now over seven billion consumers worldwide – is fueling extraordinary growth in the global prepayments space,” said Emilio del Rio, President of IDT Digital Payments. “Now, Zendit’s cloud-based, prepaid-as-a-service platform enables companies to participate in this high-growth opportunity by efficiently integrating cross-border prepaid offerings into their apps and websites in a matter of minutes.”

The Zendit platform can easily scale to meet the needs of businesses and organizations of all sizes while ensuring uptime and availability. It provides a user-friendly and intuitive workflow without sacrificing powerful features and flexibility. The platform will feature a range of tools from APIs and SDKs to no/low-code widgets and plugins that will make it easy for any developer to integrate prepaid offerings with existing systems and technologies.

To enhance speed and ease to market, Zendit offers a seamless self-onboarding experience that simplifies the integration process, enabling developers to access and manage Zendit’s global prepaid catalog within minutes. Developers can head over to zendit.io, open an account, obtain integration credentials, fund their wallets, and go live – all in a matter of minutes.

“Our mission is to enable businesses of all shapes and sizes to unlock new revenue opportunities by building innovative prepaid solutions that attract, engage, retain, and reward their customers worldwide,” del Rio concluded.

MWC attendees are invited to stop by the IDT booth at Congress Square Stand CS24 for a firsthand look and personalized demonstration of the innovative Zendit platform.

About IDT Corporation:

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.

Contact:
Bill Ulrey
IDT Investor Relations
Phone: (973) 438-3838
E-mail: invest@idt.net

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NRS Expands to Canada

NEWARK, N.J., Feb. 15, 2023 — National Retail Solutions (NRS), operator of the leading point-of-sale (POS) platform for independent retailers, today announced the expansion of its network to Canada.

“NRS has been focused exclusively on the U.S. market,” said Elie Y. Katz, CEO of NRS. “We developed a powerful POS platform that enables our domestic independent retail partners to operate more profitably and compete more effectively against large retail chains. Now, we are very excited to bring these advantages to retailers in Canada.”

The NRS platform provides independent retailers, including convenience, tobacco, and liquor stores, with a purpose-built, integrated hardware and software solution. Store management tools include a price book, inventory management solutions, sales reports and statistics, vendor payments, remote operations management through the My NRS Store mobile app, in-store promotions, e-commerce, a customer loyalty program, and more.

NRS will also offer its Canadian retail partners NRS Pay, a straightforward, low-cost credit card processing service. NRS Pay is free of long-term contracts, termination costs, and the pernicious hidden fees often charged by other credit card payment processors.

Eli Korn, NRS’ COO, commented, “The Canadian market, with its significant, heterogeneous immigrant population, is a natural stepping stone as we begin to build out our capabilities for international expansion. We expect that terminals operated by retailers in markets outside the U.S. will gradually become a significant contributor to NRS’s long-term growth.”

NRS is currently deploying its POS terminals to select retailers in Toronto and plans to expand to other Canadian cities in the coming months.

About National Retail Solutions (NRS):

National Retail Solutions operates the leading point-of-sale (POS) terminal-based platform and digital payment processing service for independent retailers and bodega owners nationwide. Retailers utilize NRS offerings to process transactions and manage operations more effectively, enabling them to successfully compete against large retail chains. Advertisers access the terminal’s digital display network to reach these retailers’ massive, predominantly urban customer bases. Consumer packaged goods (CPG) suppliers leverage the NRS platform to provision promotions, coupons, and special offers to independent retailers. NRS is a subsidiary of IDT Corporation (NYSE: IDT).

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.

suzy.silliman@nrsplus.comIDT Corporation Contact:
Bill Ulrey
william.ulrey@idt.net

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NRSInsights’ January 2023 Retail Same-Store Sales Report

Same-store sales at NRS retailers in January 2023 were robust, increasing 11.5% compared to January 2022 but decreased 6.0% compared to December 2022 on seasonal factors

NEWARK, N.J., Feb. 06, 2023 — NRSInsights, a provider of sales data and analytics drawn from retail transactions processed through the National Retail Solutions (NRS) point-of-sale (POS) platform, today announced comparative same-store sales results for January 2023.

As of January 31, 2023, the NRS retail network comprised approximately 22,000 terminals scanning purchases at independent retailers including bodegas, convenience stores, liquor stores, grocers, and tobacco and sundries sellers nationwide, predominantly serving urban consumers.

Retail Same-Store Sales Highlights
(Sequential comparisons are influenced by seasonal factors)

  • Same-store sales increased 11.5% from a year earlier (January 2022) but decreased 6.0% compared to December 2022;
  • Same-store sales in the preceding month (December 2022) had increased 9.8% compared to the year-ago month (December 2021) and 6.6% compared to the previous month, (November 2022);
  • For the three months ended January 31, 2023, same-store sales increased 9.9% compared to the three months ended January 31, 2022;
  • The number of items sold during January 2023 increased 7.2% compared to January 2022 2021 but decreased 2.5% compared to December 2022;
  • The average number of transactions per store in January 2023 increased 8.8% compared to January 2022 but decreased 0.9% compared to December 2022;
  • A dollar-weighted average of prices for the top 500 items purchased in January 2023 increased 4.0% year over year, a decrease compared to the 5.7% year-over-year increase in December 2022 compared to December 2021.

Commentary from Suzy Silliman (SVP, Data Strategy and Sales at NRS)

“NRS same-store sales for January increased markedly compared to a year ago, jumping 11.5% while decreasing from December in line with expected seasonal trends. Meanwhile, in good news for consumers, the year-over-year rate of price increases of the most popular goods moderated somewhat compared to recent months. Notwithstanding the decreasing inflationary pressures, extreme year-over-year increases in the prices of certain essential consumer staples including eggs, infant formula, and tortillas suggest that household budgets continue to be strongly impacted by rising prices.”

Retail Trade Comparative Data

The table below provides historical comparative data with the U.S. Commerce Department’s Advance Monthly Retail Trade data excluding food service:

Over the prior 12 months, the NRS same-store retail sales data has exhibited a statistically significant correlation with the US Commerce Department’s Advance Monthly Retail Trade data excluding food services (r=.863, p = 0.000298)

The NRSInsights data have not been adjusted to reflect inflation, demographic distributions, seasonal buying patterns, item substitution, or other factors that may facilitate comparisons to other periods, to other same-store retail sales data, or to the U.S. Commerce Department’s retail data.

NRSInsights Reports

The NRSInsights monthly Same-Store Retail Sales Reports are intended to provide timely topline data reflective of sales at NRS’ network of independent, predominantly urban, retail stores.

Same-store data comparisons of January 2023 with January 2022 are derived from approximately 120 million transactions processed through the 12,615 stores on the NRS network that scanned transactions in both months. Same-store data comparisons of January 2023 data with December 2022 data are derived from approximately 169 million transactions processed through 18,604 stores.

Same-store data comparisons for the three months ended January 31, 2023 with the year ago three months are derived from approximately 343 million transactions in both quarters.

NRS POS Network

NRS operates the largest POS network for independent retailers in the U.S., aggregating data from approximately 22,000 active POS terminals operating in approximately 19,500 independent retail stores. Its platform predominantly serves urban, small-format, independent, retail stores including convenience stores, bodegas, liquor stores, grocers, and tobacco and sundries sellers. The network includes retailers in all 50 states and in 193 of the 210 designated market areas (DMAs) in the U.S. Over the past twelve months, NRS’ POS terminals processed $13.6 billion in sales through approximately 976 million transactions.

About National Retail Solutions (NRS):

National Retail Solutions operates a point-of-sale (POS) terminal-based platform and digital payment processing service for independent retailers and bodega owners nationwide. Retailers utilize NRS offerings to process transactions and manage operations more effectively. Advertisers access the terminal’s digital display network to reach these retailers’ massive, predominantly urban customer bases. Consumer packaged goods (CPG) suppliers leverage the NRS platform to provision promotions, coupons, and special offers to independent retailers. NRS is a subsidiary of IDT Corporation (NYSE: IDT).

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.

NRSInsights Contact:
Suzy Silliman
SVP, Data Strategy and Sales at NRS
National Retail Solutions
suzy.silliman@nrsplus.com

IDT Corporation Contact:
Bill Ulrey
william.ulrey@idt.net

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NRSInsights’ December 2022 Retail Same-Store Sales Report

Same-store sales at NRS retailers in December 2022 increased 9.8% compared to December 2021 and 6.6% compared to November 2022

NEWARK, N.J., Jan. 06, 2023 — NRSInsights, a provider of sales data and analytics drawn from retail transactions processed through the National Retail Solutions (NRS) point-of-sale (POS) platform, today announced comparative same-store sales results for December 2022.

As of December 31, 2022, the NRS retail network comprised approximately 22,000 terminals scanning purchases at independent retailers including bodegas, convenience stores, liquor stores, grocers, and tobacco and sundries sellers nationwide, predominantly serving urban consumers.

Retail Same-Store Sales Highlights for December 2022

(Sequential comparisons are influenced by seasonal factors)

  • Same-store sales increased 9.8% from a year earlier (December 2021) and 6.6% compared to November 2022;
  • Same-store sales in the preceding month (November 2022) had increased 11.4% compared to the year-ago month (November 2021) but had decreased 4.2% compared to the previous month, (October 2022);
  • For the full year 2022, same-store sales increased 8.2% compared to 2021;
  • For the three months ended December 31, 2022, same-store sales increased 9.5% compared to the fourth quarter of 2021;
  • The number of items sold during December 2022 increased 8.0% compared to November 2021 and increased 4.7% compared to November 2022;
  • The average number of transactions per store in December 2022 increased 3.7% compared to December 2021 and increased 0.8% compared to November 2022;
  • A dollar-weighted average of prices for the top 500 items purchased in December 2022 increased 5.7% year over year, an increase compared to the 4.5% year-over-year increase in November 2022.

Commentary from Suzy Silliman (SVP, Data Strategy and Sales at NRS)

“NRS same-store sales for December increased significantly from both December a year ago and from November’s levels, as did costs for most popular items. Across our data, there was little to suggest that consumer demand or inflationary momentum has cooled, although the rate of price increases remains below the headline consumer price index inflation rate.

“Sales growth, both year over year and sequentially, was led by holiday entertaining and party categories. Alcoholic and non-alcoholic beverages, mixers, salty and sweet snacks and baking categories generated robust increases whether gauged by dollars, baskets or units sold. Sales of prepared cocktails surged impressively, but their expansion did not come at the expense of spirits, seltzer, beer, wine, or other beverage categories, all of which continued to increase from year-ago levels.”

Retail Trade Comparative Data

The table below provides historical comparative data with the US Commerce Department’s Advance Monthly Retail Trade data excluding food service:

Over the prior 12 months, the NRS same-store retail sales data has exhibited a statistically significant correlation with the US Commerce Department’s Advance Monthly Retail Trade data excluding food services (r=.915, p = 0.000030).

The NRSInsights data have not been adjusted to reflect inflation, demographic distributions, seasonal buying patterns, item substitution, or other factors that may facilitate comparisons to other periods, to other same-store retail sales data, or to the US Commerce Department’s retail data.

NRSInsights Reports

The NRSInsights monthly Same-Store Retail Sales Reports are intended to provide timely topline data reflective of sales at NRS’ network of independent, predominantly urban, retail stores.

Same-store data comparisons of December 2022 with December 2021 are derived from approximately 121 million transactions processed through the 12,284 stores on the NRS network that scanned transactions in both months. Same-store data comparisons of December 2022 data with November 2022 data are derived from approximately 166 million transactions processed through 18,182 stores.

Same-store data comparisons for the fourth quarter of 2022 with the fourth quarter of 2021 are derived from approximately 346 million transactions in both quarters, and comparisons for the full year 2022 with the full year 2021 are derived from approximately 1.05 billion transactions processed in both years.

NRS POS Network

NRS operates the largest POS network for independent retailers in the US, aggregating data from approximately 22,000 active POS terminals operating in approximately 19,000 independent retail stores. Its platform predominantly serves urban, small-format, independent, retail stores including convenience stores, bodegas, liquor stores, grocers, and tobacco and sundries sellers. The network includes retailers in all 50 states and in 193 of the 210 designated market areas (DMAs) in the US. Over the past twelve months, NRS’ POS terminals processed $13.3 billion in sales through approximately 953 million transactions.

About National Retail Solutions (NRS):

National Retail Solutions operates a point-of-sale (POS) terminal-based platform and digital payment processing service for independent retailers and bodega owners nationwide. Retailers utilize NRS offerings to process transactions and manage operations more effectively. Advertisers access the terminal’s digital display network to reach these retailers’ massive, predominantly urban customer bases. Consumer packaged goods (CPG) suppliers leverage the NRS platform to provision promotions, coupons, and special offers to independent retailers. NRS is a subsidiary of IDT Corporation (NYSE: IDT).

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.

NRSInsights Contact:
Suzy Silliman
SVP, Data Strategy and Sales at NRS
National Retail Solutions
suzy.silliman@nrsplus.com

IDT Corporation Contact:
Bill Ulrey
william.ulrey@idt.net

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NRSInsights’ November Retail Same-Store Sales Report

Consumer spending at NRS retailers in November 2022 increased 11.4% compared to November 2021 but decreased 4.2% compared to October 2022

NEWARK, N.J., Dec. 06, 2022 — NRSInsights, a provider of sales data and analytics drawn from retail transactions processed through the National Retail Solutions (NRS) nationwide point-of-sale (POS) platform, today announced comparative same-store sales results for November 2022.

The NRS retail network comprises over 21,000 terminals scanning purchases at independent retailers including bodegas, convenience stores, liquor stores, grocers, and tobacco and sundries sellers predominantly serving urban consumers.

Retail Same-Store Sales Highlights for November 2022

(Sequential comparisons are influenced by seasonal factors)

  • Same-store sales increased 11.4% from a year earlier (November 2021) but decreased 4.2% compared to October 2022;
  • Same-store sales in the preceding month (October 2022) had increased 9.5% compared to the year-ago month (October 2021) but had increased 3.6% compared to the previous month, (September 2022);
  • Year to date, same-store sales have increased 8.3% compared to the comparable period in 2021;
  • For the three months ended November 31, 2022, same-store sales increased 9.5% compared to the three months a year ago;
  • The number of items sold during November 2022 increased 10.7% compared to November 2021 but decreased 5.1% compared to October 2022;
  • The average number of transactions per store in November 2022 increased 6.3% compared to November 2021 but decreased 6.4% compared to October 2022;
  • A dollar-weighted average of prices for the top 500 items purchased in November 2022 increased 4.5% year over year, an increase compared to the 4.1% year-over-year increase in October 2022.

Suzy Silliman, SVP, Data Strategy and Sales at NRS commented, “NRS same-store sales data for November increased very robustly compared to the year-ago quarter while the cost of the most popular items continued to reflect moderate year-over-year inflationary pressure. The November decrease in same-store sales compared to October was expected as it captures seasonal factors including a shorter, 30-day month in November and the Thanksgiving holiday.”

The table below provides historical comparative data with the US Commerce Department’s Advance Monthly Retail Trade data excluding food service:

NRSInsights Reports

The NRSInsights monthly Same-Store Retail Sales Reports are intended to provide timely topline data reflective of sales at NRS’ network of independent, predominantly urban, retail stores.

Over the prior 12 months, the NRS same-store retail sales data has exhibited a statistically significant correlation with the US Commerce Department’s Advance Monthly Retail Trade data excluding food services (r=.937, p = 0.0000069)

The NRSInsights data have not been adjusted to reflect inflation, demographic distributions, seasonal buying patterns, item substitution, or other factors that may facilitate comparisons to other periods, to other same-store retail sales data, or to the US Commerce Department’s retail data.

Same-store data comparisons of November 2022 with November 2021 are derived from approximately 116 million transactions processed through the 11,973 stores on the NRS network that scanned transactions in both months. Same-store data comparisons of November 2022 data with October 2022 data are derived from approximately 169 million transactions processed through 17,758 stores.

NRS POS Network

NRS operates the largest POS network for independent retailers in the US, aggregating data from over 21,000 active POS terminals operating in over 18,000 independent retail stores. Its platform predominantly serves urban, small-format, independent, retail stores including convenience stores, bodegas, liquor stores, grocers, and tobacco and sundries sellers. The network includes retailers in all 50 states and in 190 of the 210 designated market areas (DMAs) in the US. Over the past twelve months, NRS’ POS terminals processed $12.9 billion in sales through approximately 933 million transactions.

About National Retail Solutions (NRS):

National Retail Solutions operates a point-of-sale (POS) terminal-based platform and digital payment processing service for independent retailers and bodega owners nationwide. Retailers utilize NRS offerings to process transactions and manage operations more effectively. Advertisers access the terminal’s digital display network to reach these retailers’ massive, predominantly urban customer bases. Consumer packaged goods (CPG) suppliers leverage the NRS platform to provision promotions, coupons and special offers to independent retailers. NRS is a subsidiary of IDT Corporation (NYSE: IDT).

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.

NRS Data Contact:
Suzy Silliman
SVP, Data Strategy and Sales at NRS
National Retail Solutions
suzy.silliman@nrsplus.com

# # #

Attachment

Primary Logo

IDT Corporation Reports First Quarter Fiscal Year 2023 Results

Highest Level of Quarterly Income from Operations since 2015
Highest Level of Quarterly Adjusted EBITDA in Company History
NRS, BOSS Money and net2phone Businesses Drive Robust, YoY Increase in EPS

NEWARK, NJ, Dec. 05, 2022 — 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 Takeaways:

  • 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 TakeAways:

  • 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://idtnetqa.wpengine.com/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 Relations
Bill Ulrey
william.ulrey@idt.net
973-438-3838

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 CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

    Three Months Ended
October 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 CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

    Three Months Ended
October 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 Corporation
Reconciliation 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 Corporation
Reconciliations 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 EBITDA
Figures 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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