BOSS Money and UBA Partner to Expand Remittance Options to Nigeria
Collaboration Provides Direct Depositto Over 20 million UBA Accounts in Nigeria
Newark, NJ, Sept. 19, 2022 — BOSS Money, the money remittance and payments brand of IDT Corporation (NYSE: IDT), and Africa Global Bank (United Bank for Africa), a leading pan-African financial institution, today announced a collaboration to expand disbursement options for money transfers from the U.S. to Nigeria. The partnership will enable BOSS Money customers to send U.S. dollars for direct deposit at any of the approximately 20 million United Bank for Africa (UBA) accounts in Nigeria.
“Our collaboration enables BOSS Money customers to send money to the UBA bank accounts of family and friends in Nigeria for receipt in a matter of minutes,” said Alfredo O’Hagan, IDT’s SVP for Consumer Payments. “We are delighted to partner with UBA, a trusted leader in personal banking services, to power convenient, reliable, affordable, and timely money transfers to Nigeria.”
Speaking of the partnership, UBAs Head of Personal Banking, Ogechi Altraide, said, “Our alliance with BOSS Money enables customers to enjoy stress-free, seamless transfers to Nigeria. We are very optimistic that our collaboration will significantly enhance remittances to our millions of customers across Nigeria.”
Through the partnership, BOSS Money customers will be able to transfer up to US$100 to Nigeria for as little as US$3.99 or transfer up to US$2,999 for as little as US$6.99 when using the BOSS Money or BOSS Calling apps.
The highly rated BOSS apps are free on the App Store and on Google Play. Senders utilizing either BOSS app or the bossrevolution.com website for the first time pay no fees on transfers up to US$300. Customers can also send cash directly from BOSS Money retailers across the U.S.
BOSS Money now offers remittances from the U.S. to 50 countries via 1,300 payers at over 315,000 cash pick-up locations in addition to mobile money and direct deposit services.
About IDT Corporation:
IDT Corporation (NYSE: IDT) 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) 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 and mobile top-up services offer convenient and reliable value transfers. Our BOSS Revolution calling service provides dependable voice and messaging communications globally. net2phone‘s unified communications and contact center 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.
About Africa Global Bank (United Bank for Africa):
UBA is a leading pan-African financial institution, offering banking services to more than thirty-seven million customers across 1,000 business offices and customer touch points in 20 African countries. With presences in New York, London, Paris and the UAE, UBA is connecting people and businesses globally through retail, commercial and corporate banking, innovative cross-border payments and remittances, trade finance and ancillary banking 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.
NRSInsights Announces August Retail Same-Store Sales Report
The NRSretail network comprises over 19,000 terminals nationwide processing purchases at bodegas and other independent retailers predominantly serving urban consumers
Consumer spendingat NRS retailers in August increased 6.4% compared to August 2021 but decreased 3.3%compared to July 2022
NEWARK, N.J., Sept. 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 August 2022.
August 2022 Retail Same-Store Sales Highlights for August 2022
Same-store sales increased 6.4% from a year earlier (August 2021) and decreased 3.3% compared to the preceding month (July 2022). Same-store sales in July had increased 9.2% compared to the year-ago month, July 2021, and increased 6.5% compared to the previous month, June 2022. (Note: sequential comparisons are impacted by seasonal factors).
Year to date, same-store sales have increased 8.4% compared to the comparable period in 2021;
For the three months ended August 31, 2022, same-store sales increased 9.2% compared to the three months ended August 31, 2021.
The number of items sold during August 2022 increased 6.8% compared to August 2021 and decreased 0.8% compared to July 2022;
The average number of transactions per store in August 2022 increased 3.9% compared to August 2021 and decreased 1.2% compared to July 2022;
A dollar-weighted average of prices for the top 500 items purchased in August increased 2.3% year over year, less than the 2.9% year-over-year increase in July 2022.
“NRS same-store sales data for August continue to reflect strong year-over-year dollar increases, but at a less robust pace than we saw in July,” said Suzy Silliman, SVP, Data Strategy and Sales at NRS. “While spending in August decreased compared to July, we typically experience a modest sequential decline in August driven by seasonal factors. Categories bucking the trend with sequential gains in quantity, baskets, and dollars included school and office supplies and packaged lunch combos -categories driven by back-to-school seasonality. The August data also suggest that inflationary pressures have subsided somewhat. Costs of our most popular items increased 2.3% year over year compared to the 2.9% year over year increase we saw last month.”
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.
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 August 2022 with August 2021 are derived from approximately 117 million transactions processed through the 11,148 stores on the NRS network that scanned transactions in both months. Same-store data comparisons of August 2022 data with July 2022 data are derived from approximately 169 million transactions processed through 16,574 stores.
NRS POS Network
NRS operates the largest POS network for independent retailers in the US, aggregating data from over 19,000 active POS terminals operating in over 17,000 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 188 of the 210 designated market areas (DMAs) in the US. Over the past twelve months, NRS’ POS terminals processed $11.9 billion in sales through approximately 865 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
net2phone Named a UCaaS Growth and Innovation Leader by Frost & Sullivan
Frost Radar™Evaluation Focused on Innovation and Growth as Defining Metrics
Newark, NJ, Aug. 31, 2022 — net2phone, a leading cloud communications provider, today announced that it has been identified as a growth and innovation leader by Frost & Sullivan, the business technology consulting firm, and achieved the top quadrant of the Frost RadarTM: Unified Communications as a Service Market in Latin America and the Caribbean, 2022 report.
The Frost Radar™ reports are based on an in-depth analysis of leading industry players built on a 360-degree research methodology. The Frost Radar™ is a proprietary analytical tool to evaluate companies across two key indices: their focus on continuous innovation and their ability to translate their innovations into consistent growth. The Frost Radar™ recognizes industry leaders and provides insights into their innovative offerings, competitive advantages, projected growth rates, and business outlook.
The Frost Radar™ report noted, “Frost & Sullivan regards net2phone as one of the fastest-growing UCaaS providers in the region, holding a top position in terms of market share. The company has built a highly diversified client portfolio established solid penetration in several industries and a large partner ecosystem, consisting of hundreds of agents and channel partners, providing the capability to sustain a strong growth pipeline.”
Discussing net2phone’s high marks on innovation, Frost & Sullivan’s Information & Communication Technologies Industry Director, Alaa Saayed, noted, “The company continually adds new features into its solutions and has centralized development teams that collaborate with regional engineers to tailor projects for large customers.”
“It’s always gratifying when a respected voice in our industry like Frost & Sullivan recognizes the value of our innovative solutions and commitment to client service,” said Jonah Fink, President of net2phone. “In this case, I’m particularly pleased that our focus and capabilities align with the strategic growth opportunities Frost & Sullivan identifies in the cloud communications market.”
Fink concluded, “We are very focused on enabling a hybrid and remote workforce, meeting the booming demand for contact-center-as-a-service solutions, and providing collaboration-centric solutions. In each of these three areas, net2phone is well positioned to accelerate its growth across the region.”
About net2phone:
net2phone’s cloud communications and contact center solutions help businesses around the globe succeed through smarter conversations. net2phone is a subsidiary of IDT Corporation (NYSE: IDT). To learn more, please visit net2phone.com or connect on LinkedIn.
NRS and Bringg Join to Present at Home Delivery World Conference
Companies Will Share Perspectives on the Effort to Broaden Access toLast-Mile Delivery
NEWARK, N.J., Aug. 30, 2022 — National Retail Solutions, operator of the leading point-of-sale (POS) platform for independent convenience stores, bodegas and other neighborhood retailers, and Bringg, the market leading delivery management platform provider, today announced that they will jointly present How to Make Delivery & Fulfillment Accessible to All at Home Delivery World 2022, the conference and exhibition for last mile logistics.
The NRS/Bringg presentation at Home Delivery World is scheduled for 11:30 AM tomorrow, August 31, 2022. Home Delivery World 2022 will be held at the Pennsylvania Convention Center in Philadelphia.
Elie Y. Katz, President and CEO of National Retail Solutions, and Daniela Perlmutter SVP Marketing and Growth of Bringg, will discuss common approaches to significantly expand access to, and participation in, the last-mile delivery industry, upending the industry status quo.
Katz has led NRS since its inception, growing it from its inception to become the largest point-of-sale (POS) network for independent retailers in the nation serving over 19,000 retail outlets. Katz previously served as a senior executive for several technology, energy and food service companies including other IDT companies, and has invested in and managed numerous restaurants.
Perlmutter has over 20 years of experience leading global marketing for multibillion-dollar tech companies and SaaS start-ups. She joined Bringg after leading the go-to-market strategy and marketing for B2B companies across Cybersecurity, Telecom, and IoT. Perlmutter is a mentor at the Intel Ignite accelerator program for startups, a graduate of a joint program with Wharton Business School, and holds an MBA and BA from Tel Aviv University.
About National Retail Solutions (NRS):
National Retail Solutions operates a point-of-sale (POS) terminal-based platform and digital payment processing service for C-stores, bodegas, and other independent retailers 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).
About Bringg:
Bringg helps enterprises scale up and optimize their logistics operations with our data-led delivery and fulfillment cloud platform. Using Bringg, retailers and logistics providers can rapidly enable innovative delivery and fulfillment models that maximize the customer experience, optimize logistics operations and scale business channels for growth. Some of the world’s best-known brands in more than 50 countries use Bringg’s platform to deliver the perfect last mile experience at peak efficiency across multiple delivery models.
FCC Concludes Inquiry into Renewal of Spectrum Licenses Included in Straight Path Spin-Off: Says it Does Not Plan Further Action
NEWARK, NJ, Aug. 25, 2022 — IDT Corporation (NYSE: IDT), a global provider of fintech, cloud communications, and traditional communications services, announced today that it has been informed by the Enforcement Bureau of the Federal Communications Commission’s Spectrum Enforcement Division that the Bureau has completed its review of the record regarding the renewal of spectrum licenses included in IDT’s 2013 spinoff of Straight Path Communications and, at this time, does not plan to take further action in the matter.
“We cooperated with the Enforcement Bureau throughout their review, and welcome this outcome,” said Shmuel Jonas, IDT’s Chief Executive Officer.
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 and BOSS Revolution international calling services make sending money 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
The NRS retail network comprises over 16,000 convenience stores, bodegas and other independent retailers in urban neighborhoods nationwide
Consumer spendingat NRS retailers surged in July 2022 – increasing 9.2% year over year and 6.5% from June
NEWARK, N.J., Aug. 04, 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 July, 2022.
The NRSInsights Same-Store Retail Sales Report for July, 2022 is the first in a planned series. The report is intended to provide timely topline data reflective of sales at its network of independent, urban, retail stores.
Over the prior eleven months, the three-month rolling average of the NRS same store retail sales data have exhibited a statistically significant correlation with the US Commerce Department’s Advance Monthly Retail Trade data excluding food services (r =0.725, p = 0.012).
The US Commerce Department’s Advance Monthly Retail Sales for Retail and Food Service is typically released between the 14th and 17th days of the subsequent month. NRSInsights intends to release its Same-Store Retail Sales Report on or before the 5th business day of the subsequent month.
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.
NRS POS Network
NRS operates the largest POS network for independent retailers in the US, aggregating data from over 16,000 POS terminals. 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 188 of the 210 designated market areas (DMAs) in the US. Over the past twelve months, NRS’ POS terminals processed $11.5 billion in sales through approximately 840 million transactions.
“The NRS POS platform is well positioned to provide data reflective of consumer trends in the urban retail convenience store market,” said Suzy Silliman, SVP, Data Strategy and Sales at NRS. “The convenience stores, bodegas, and other independent retailers that we serve are typically the ‘go-to’ neighborhood retailers for daily essentials and convenience items. Because these stores are typically not served by other POS platforms and because they process a significant proportion of purchases from customers paying in cash or with store credit, there are no qualitatively equivalent sources of transaction-level data.”
July 2022 Retail Data Highlights
NRS comparative same-store sales highlights for July, 2022 are as follows:
Same-store sales increased 9.2% compared to July, 2021 and 6.5% compared to the preceding month, June 2022. Year over year sales increases were largest on sales of non-alcoholic beverages and beer;
Year to date, same-store sales increased 8.6% compared to the comparable period in 2021;
For the three months ended July 31, 2022, same-store sales increased 8.8% compared to the three months ended July 31, 2021;
The number of items sold increased 8.1% compared to July, 2021 and 5.5% compared to June, 2022;
The average number of transactions per store increased 5.4% compared to July, 2021 and increased 4.9% compared to June, 2022;
A dollar weighted average of the top 500 items purchased in July showed the average price increasing 2.9% year over year.
“NRS same-store sales data for July 2022 reflect robust spending increases by urban consumers across product categories, as sales increased 9.2% compared to July 2021 and 6.5% compared to June,” said Silliman. “Our retailers fared very well during 2021 despite the ongoing challenges of the COVID-19 pandemic, and this year’s sales to date reflect sustained, robust increases in consumer spending. The data further suggest that inflationary price increases for everyday sundries, beverages and foodstuffs at our stores are, to date, more moderate than the Commerce Department’s, broad-market, headline retail inflation rates.”
Same-store data comparisons of July 2022 with July 2021 are derived from analysis of approximately 50 million transactions processed through the 10,791 stores on the NRS network that scanned transactions in both July, 2022 and 2021. Same-store data comparisons of July 2022 data with June 2022 data are derived from analysis of approximately 83 million transactions processed through 15,502 stores. The table below provides historical comparative data based on trailing three-month moving averages compared to the same periods in the prior year:
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
Agreement brings net2phone’s cloud communications offerings to the UPSTACK Platform
Newark, NJ, July 19, 2022 — net2phone, a leading cloud communications provider, today announced a strategic partnership with UPSTACK, the fast-growing platform that transforms the way businesses design and select digital infrastructure solutions.
The partnership enables UPSTACK’s extensive network of expert advisors to offer net2phone’s cloud communication solutions to clients through UPSTACK’s industry-transforming platform, trusted client relationships, and advanced technology.
“Through this partnership, we will collaborate with UPSTACK’s highly regarded technology experts and advisors enabling their clients to leverage the power of the cloud for smarter conversations,” said Jonah Fink, President of net2phone. “This agreement reflects net2phone’s singular commitment to our channel partners’ success through a comprehensive partners’ program including industry-leading incentives, flexible pricing, and white-glove on-boarding.”
“We’re excited to partner with net2phone, a leader in VoIP and unified communications services,” said Danielle De Costa, Vice President of Supplier and Sales Enablement for UPSTACK. “Their solution set is ideal for enabling next-generation workforce models for businesses of all sizes.”
net2phone’s cloud communications solutions include advanced feature sets and robust integrations with popular applications including Microsoft Teams, Salesforce, Slack and Zoho.
Forward Looking Statements:
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.
About net2phone:
net2phone’s cloud communications and contact center solutions help businesses around the globe succeed through smarter conversations. net2phone is a subsidiary of IDT Corporation (NYSE: IDT). To learn more, please visit net2phone.com or connect on LinkedIn.
About UPSTACK:
Launched in 2017 in New York, N.Y., UPSTACK is transforming the way digital infrastructure is sourced and sold. Through a powerful combination of the industry’s leading advisors, advanced technology, and dedicated customer support resources-UPSTACK uses actionable business intelligence to architect and source customized technology solutions for businesses of all sizes. With UPSTACK, business buyers streamline IT procurement by tapping into a single source for mission-critical technology services from hundreds of proven providers, along with the professional guidance to identify and evaluate the best solutions. UPSTACK’s service portfolio includes colocation and data center, network connectivity, SD-WAN, unified communications, cloud contact center, private and public cloud, security, mobile, business continuity and IoT. For more information, visit us at upstack.com.
net2phone Named A Top 10 Unified Communications Solution
Newark, NJ, June 30, 2022 — net2phone, a leading communications-as-a-service provider, today announced that its unified communications service has been recognized as one of the 10 Most Promising Unified Communication Solutions in 2022 by CIOReview, a leading publication for business technology leaders.
“net2phone has been selected as a Top 10 Unified Communications Solution in 2022, based on the input of our subscribers and a comprehensive, multi-layered selection process,” said Justin Smith, Managing Editor of CIOReview. “net2phone consistently impressed our subscribers with the quality of its offerings in the unified communications space. Our winners demonstrated an exceptional commitment to developing and adapting communications solutions to meet and exceed the expectations of some of the industry’s most sophisticated and knowledgeable technology consumers.”
CIOReview guides enterprises through the continuously evolving business environment with information about solutions and services, and serves as a knowledge source as well as a platform for technology buyers, experts and decision-makers to share their valuable insights about new solutions and marketplace trends.
“Working closely with our channel partners, net2phone is performing exceptionally well in addressing the unique requirements of mid-sized businesses and small enterprise customers,” said Jonah Fink, president of net2phone. “Our omni-channel unified communication solutions leverage the power of the cloud to enhance communication and collaboration while enabling employees and management to move frictionlessly between the office, road, and home. We are extremely gratified that CIOReview and its tech-savvy subscribers recognize the exceptional value we deliver.”
net2phone connects businesses with voice, video, chat, text, and integrations that scale as businesses grow, all from within the cloud. net2phone’s reporting and analytics deliver additional insights to drive smarter conversations while streamlining operational processes.
“Businesses increasingly demand the flexibility to support today’s workforces that only cloud communications can provide,” added Fink. “net2phone manages the transition from traditional on-premise PBX to the cloud to help organizations design and implement flexible solutions perfectly suited for dynamic work environments.”
net2phone’s cloud communications solutions help businesses around the globe succeed through smarter conversations. net2phone is a subsidiary of IDT Corporation (NYSE: IDT), a global provider of fintech, cloud communications and traditional communications services. To learn more, please visit net2phone.com or connect with us on LinkedIn. Channel partner contact: partner@net2phone.com. Customer contact: sales@net2phone.com.
net2phone Partners with TeleBermuda International to Provide Unified Communications Solutions
Newark, NJ, June 16, 2022 — net2phone, a leading cloud communications provider, today announced a partnership with TeleBermuda International Limited (TBi) to provide its unified communications-as-a-service (UCaaS) solutions to TBi’s business customers.
Through the partnership, net2phone will support TBi with fully localized, co-branded UCaaS offerings which TBi will market to businesses operating throughout its markets.
“We are delighted to partner with TBi to provide businesses across Bermuda with our omni-channel UCaaS solutions,” said Clyde Pascal, Senior Director of International Business at net2phone. “Through our partnership, local businesses can retain the same phone numbers and functionality they have long enjoyed, while adding powerful new cloud communications tools, unlimited domestic and international calling to over 40 popular destinations, video conferencing, and the ability to call and send SMS and MMS text messages from their business numbers using any networked computer or smartphone.”
TBi is a Bermuda-based Integrated Communications Operating License (ICOL) carrier of competitive international data, internet, co-location hosting services, television and international long-distance voice.
“TBi will offer Bermuda businesses cost-effective, flexible, and responsive UCaaS solutions to connect with the world,” said TBi President Lee Greene. “net2phone is a leading unified communications provider that has been providing internet-based telephony for over 30 years. Its deep VoIP expertise, feature-rich communications platform and business process integrations will provide our clients with powerful competitive advantages.”
Damiso Husband, TBi Vice President of Sales, added: “The TBi and net2phone partnership provides business clients with world-class collaboration services to meet the changing needs of the workplace. We welcome net2phones’s UCaaS offerings to Bermuda and believe our clients will relish the organizational benefits of our hosted collaboration solutions.”
“Throughout our markets worldwide, we are positioned to drive growth by leveraging our long-standing relationships with successful carriers like TBi,” said Jonah Fink, President of net2phone. “These carriers are trusted brands with unsurpassed knowledge of their respective markets. Their localized sales and marketing expertise make them ideal partners to promote the benefits of our global cloud communications platform to their business customers.”
Forward Looking Statements:
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.
About net2phone:
net2phone’s cloud communications and contact center solutions help businesses around the globe succeed through smarter conversations. net2phone is a subsidiary of IDT Corporation (NYSE: IDT). To learn more, please visit net2phone.com or connect on LinkedIn.
About TBi:
TeleBermuda International Limited (TBi) is a Bermuda-based ICOL carrier of competitive international data, internet, co-location hosting services, television, and international long-distance voice. To learn more, please visit https://telebermuda.com/ or connect on LinkedIn
IDT Corporation Reports Third Quarter Fiscal Year 2022 Results
NEWARK, NJ, June 02, 2022 — IDT Corporation (NYSE: IDT), a global provider of fintech, cloud communications, and traditional communications services, today reported results for the third quarter of its 2022 fiscal year, the three months ended April 30, 2022.
THIRD QUARTER FISCAL YEAR 2022(3Q22) HIGHLIGHTS
(Throughout this release, results are for 3Q22and are compared to 3Q21 unless otherwise noted.All ‘per share‘ results are per diluted share. Please see the final page of this release for important supplemental information on asterisked metrics.)
Key business unit revenue and related metrics:
National Retail Solutions (NRS) recurring revenue* increased 101.9% to $10.0 million. Active terminals increased by 1,400 sequentially to approximately 17,900, and payment processing accounts increased by 1,200 sequentially to approximately 9,200.
net2phone subscription revenue** increased 42.0% to $14.2 million. Seats served increased by 22,000 sequentially, including nearly 7,000 through the previously announced acquisition of a CCaaS provider, to approximately 279,000.
Money Transfer revenue increased 51.5% to $15.5 million. Transaction volumes increased by 27.1% to 2.4 million, with solid growth in both direct to consumer and retail channels.
Consolidated revenue decreased 12.2% to $328 million from $374 million. Direct cost of revenue decreased 17.7% to $248 million from $301 million.
Consolidated income from operations decreased to $13.3 million from $13.9 million.
Net income attributable to IDT decreased to $4.8 million from $36.3 million, and EPS decreased to $0.18 from $1.39. In 3Q22, EPS included the impact of a $0.13 per share loss from marked-to-market investments. In 3Q21, EPS included the positive impacts of both a $0.92 per share reversal of income tax valuation allowances and a $0.21 per share gain from marked-to-market investments.
Adjusted EBITDA*** increased to $18.0 million from $17.9 million.
Non-GAAP EPS*** was $0.23 compared to $0.47.
REMARKS BY SHMUEL JONAS, CEO
“Each of our three high-margin, high-growth businesses had a very strong third quarter, helping us to again achieve solid levels of consolidated income from operations and Adjusted EBITDA, consistent with our results from the first two quarters of our fiscal year.
“NRS added nearly 1,400 net POS terminals and 1,200 net payment processing accounts during the third quarter, maintaining the accelerated rate of acquisitions achieved in the second quarter. NRS recurring revenue increased 102% year-over-year, keyed by strong merchant service and advertising sales. Looking ahead, we expect that NRS will sustain robust, high-margin growth in the coming quarters. In particular, we expect advertising and data offerings to benefit from both long-term trends such as the increasing allocation of advertising budgets to out-of-home venues, as well as from seasonal tailwinds including increased political advertising heading into the second half of the calendar year.
“net2phone’s strategic focus on the SMB and small enterprise markets within North and South America, efficient execution, and acquisition of CCaaS provider Integra all contributed to solid growth in the third quarter. Subscription revenue increased 42% year-over-year due primarily to the addition of approximately 22,000 seats during the quarter –including almost 7,000 seats from the Integra acquisition. Seat growth was again strongest in our Latin American markets although our U.S. business performed nearly as well. We will begin selling our CCaaS offering in North America in the current – fourth – quarter of our fiscal year and expect its expansion to gradually become a key driver of seat growth and ARPU expansion.
“BOSS Money, our international remittance business, increased revenue 51% to $15.5 million driven both by a 27% year-over-year increase in transaction volumes and a comparably robust increase in revenue per transaction – including both transfer fees and revenue derived from foreign exchange. We continue to build out our disbursement networks, particularly in Africa and the Caribbean, and to fine-tune our direct-to-consumer pricing strategies to capture additional revenue and margins. BOSS Money also continues to benefit from its integration into the BOSS Revolution Calling app last October, providing another example of our ability to generate growth by deploying our offerings across multiple channels and platforms.
“In our Traditional Communications segment, revenue decreased by $59.9 million or 17% to $285.9 million. The surge in demand for paid voice that we experienced during the COVID pandemic is now retreating and exacerbating the impact of the underlying declines in retail calling and wholesale carrier services. Our Mobile Top-Up business underperformed this quarter but we are investing in technology, marketing, and sales to improve its performance.
Because Traditional Communications’ lost revenue overall was skewed to lower margin sales, income from operations from this segment decreased $3.0 million year-over-year to $17.4 million. On a consolidated basis, income from operations decreased $0.5 million to $13.3 million while Adjusted EBITDA*** increased $0.1 million to $18.0 million. We expect that as our growth businesses continue to expand, our consolidated bottom-line results in the coming quarters will increasingly reflect their contributions.”
CONSOLIDATED RESULTS
Results (in millions, except EPS)
3Q22
2Q22
3Q21
3Q22 – 3Q21 change (%/$)
Revenue
$
328
$
337
$
374
(12.2
)%
Direct cost of revenue
$
248
$
257
$
301
(17.7
)%
SG&A expense
$
63
$
61
$
55
+13.8
%
Depreciation and amortization
$
4.5
$
4.4
$
4.4
+1.9
%
Income from operations
$
13.3
$
13.8
$
13.9
(3.9
)%
Net income attributable to IDT
$
4.8
$
7.5
$
36.3
$
(31.5
)
Adjusted EBITDA***
$
18.0
$
18.7
$
17.9
+0.7
%
Earnings per diluted share
$
0.18
$
0.28
$
1.39
$
(1.21
)
Non-GAAP net income***
$
6.0
$
8.8
$
12.3
$
(6.3
)
Non-GAAP EPS***
$
0.23
$
0.33
$
0.47
$
(0.24
)
RESULTS BY SEGMENT (Results are for 3Q22 and are compared to 3Q21except where otherwise noted)
(in millions)
Fintech
net2phone-UCaaS
Traditional Communications
3Q22
2Q22
3Q21
3Q22
2Q22
3Q21
3Q22
2Q22
3Q21
Revenue
$
26.9
$
23.1
$
16.6
$
15.6
$
13.5
$
11.4
$
285.9
$
300.4
$
345.7
Direct cost of revenue
$
8.2
$
7.3
$
6.0
$
2.6
$
2.4
$
2.2
$
236.7
$
247.6
$
292.6
SG&A expense
$
17.9
$
15.3
$
11.6
$
13.8
$
13.0
$
11.8
$
29.3
$
30.4
$
30.0
Income (loss) from operations
$
0.2
$
(0.2
)
$
(1.4
)
$
(2.3
)
$
(2.9
)
$
(4.0
)
$
17.4
$
19.9
$
20.4
Adjusted EBITDA***
$
0.8
$
0.4
$
(1.0
)
$
(0.9
)
$
(1.9
)
$
(2.6
)
$
19.9
$
22.4
$
23.1
Capital expenditures
$
1.2
$
1.3
$
1.3
$
1.4
$
1.3
$
1.3
$
1.9
$
1.9
$
1.9
Fintech
Fintech comprises National Retail Solutions (NRS), an operator of a nationwide Point-Of-Sale (POS) retail network providing merchant services, digital advertising, transaction data, and ancillary services, andBOSS Money, a provider of international money remittances.
In 3Q22 and 3Q21, the Fintech segment accounted for 8.2% and 4.4% of IDT’s consolidated revenue, respectively.
NRS Results (Revenue $ in thousands)
3Q22
2Q22
3Q21
3Q22 -3Q21 change %
POS terminals, active – end of period
17,900
16,500
13,100
37
%
Payment processing accounts – end of period
9,200
8,000
4,900
89
%
NRS recurring revenue
Merchant services and other
$
4,765
$
3,810
$
2,116
+125
%
Advertising & data
3,729
3,901
1,958
+90
%
SaaS fees
1,462
1,318
856
+71
%
Total recurring revenue
$
9,956
$
9,029
$
4,930
+102
%
POS terminal sales
1,427
1,591
1,454
(2
)%
Total NRS revenue
$
11,383
$
10,620
$
6,384
+78
%
Monthly average recurring revenue per terminal (excl. POS terminal sales revenue)****
$
193
$
190
$
131
+47
%
NRSTake-Aways:
As of April 30, 2022, NRS’ POS terminal network comprised approximately 17,900 active POS terminals, an increase of 37% compared to a year earlier, and approximately 9,200 payment processing accounts, a year over year increase of 89%.
NRS revenue increased 78.3% to $11.4 million from $6.4 million and recurring revenue* increased by 101.9% to $10.0 million from $4.9 million. The increases were driven by the expansion of the NRS POS and payment processing networks and increased merchant services and digital-out-of-home (DOOH) advertising & data sales.
NRS monthly average recurring revenue per terminal**** increased to $193 from $131.
During 3Q22, NRS announced a partnership with OnPoint, a leading provider of scan data programs for the independent and small chain C-store market. Through the partnership, OnPoint will promote the NRS POS system and payment processing service to prospective C-store clients.
BOSSMoney Take-Aways:
Transaction volumes increased 27% to 2.37 million from 1.86 million in the year-ago period.
Revenue increased 51.5% to $15.5 million from $10.3 million.
BOSS Money continued to expand its global payments network including announced expansions of service to Ethiopia and Jamaica.
net2phone-UCaaS
In 3Q22 and 3Q21, the net2phone-UCaaS segment accounted for 4.7% and 3.1% of IDT’s consolidated revenue, respectively.
net2phone-UCaaS Take–aways:
Total seats served increased 33% to 279,000 at April 30, 2022 including approximately 7,000 seats added through the Integra CCaaS acquisition, from 210,000 a year earlier.
Subscription revenue** increased 42.0% to $14.2 million from $10.0 million, led by strong growth in both net2phone’s South and North American regions and the addition of Integra’s CCaaS revenue for the final two months of the quarter.
During 3Q22, IDT announced a postponement of the planned spin-off of net2phone, in light of market conditions.
Traditional Communications
In 3Q22 and 3Q21, the Traditional Communications segment accounted for 87.1% and 92.5% of IDT’s consolidated revenue, respectively.
Traditional Communications Take–Aways:
Mobile Top-Up revenue decreased 12.6% to $115.9 million from $132.6 million.
BOSS Revolution Calling revenue decreased 17.6% to $91.8 million from $111.4 million, while minutes-of-use decreased 21.2% compared to the year-ago quarter. The decreases reflect the erosion of the surge in demand for voice calls that began with the onset of the COVID pandemic, on top of the underlying decline of the paid voice communications market.
IDT Global’s carrier services revenue decreased 24.3% to $67.1 million from $88.6 million reflecting a 24.2% decrease in minutes-of-use as the wholesale paid voice market contracted at an accelerated rate.
NOTES ON FINANCIAL STATEMENTS
Consolidated results for all periods presented include corporate overhead. Corporate G&A expense increased to $1.8 million in 3Q22 from $1.7 million in 3Q21.
As of April 30, 2022, IDT held $136.0 million in cash, cash equivalents, debt securities, and current equity investments. Current assets totaled $371.1 million and current liabilities totaled $315.4 million.
Net cash provided by operating activities during 3Q22 was $1.6 million compared to $12.5 million during 3Q21. Exclusive of changes in customer deposit balances at our Gibraltar-based bank, net cash provided by operating activities during 3Q22 was $9.6 million compared to $12.5 million during 3Q21.
Capital expenditures increased to $4.8 million in 3Q22 from $4.6 million in 3Q21.
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 today with management’s discussion of results, outlook, a
nd 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: 733921).
A replay of the conference call will be available approximately three hours after the call concludes through June 15, 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: 45654. 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 and traditional communications services. We make it easy for families to 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 BOSS Money international remittance and BOSS Revolution international calling services make sending money 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.
Trade accounts receivable, net of allowance for doubtful accounts of $5,061 at April 30, 2022 and $4,438 at July 31, 2021
52,881
46,644
Disbursement prefunding
37,111
27,656
Prepaid expenses
16,676
13,694
Other current assets
27,442
16,779
Total current assets
371,091
388,135
Property, plant, and equipment, net
33,447
30,829
Goodwill
26,490
14,897
Other intangibles, net
10,041
7,578
Equity investments
7,319
11,654
Operating lease right-of-use assets
7,919
7,671
Deferred income tax assets, net
36,598
41,502
Other assets
10,365
10,389
Total assets
$
503,270
$
512,655
Liabilities and equity
Current liabilities:
Trade accounts payable
$
27,817
$
24,502
Accrued expenses
118,285
129,085
Deferred revenue
39,054
42,293
Customer deposits
95,104
115,524
Other current liabilities
35,103
27,930
Total current liabilities
315,363
339,334
Operating lease liabilities
5,322
5,473
Other liabilities
6,326
1,234
Total liabilities
327,011
346,041
Commitments and contingencies
Redeemable noncontrolling interest
10,099
–
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 April 30, 2022 and July 31, 2021
33
33
Class B common stock, $.01 par value; authorized shares-200,000; 27,725 and 26,379 shares issued and 24,667 and 24,187 shares outstanding at April 30, 2022 and July 31, 2021, respectively
277
264
Additional paid-in capital
295,915
278,021
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 3,058 and 2,192 shares of Class B common stock at April 30, 2022 and July 31, 2021, respectively
(88,175
)
(60,413
)
Accumulated other comprehensive loss
(11,341
)
(10,183
)
Accumulated deficit
(33,072
)
(42,858
)
Total IDT Corporation stockholders’ equity
163,637
164,864
Noncontrolling interests
2,523
1,750
Total equity
166,160
166,614
Total liabilities and equity
$
503,270
$
512,655
IDT CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Three Months Ended
Nine Months Ended
April 30,
April 30,
2022
2021
2022
2021
(in thousands, except per share data)
Revenues
$
328,353
$
373,831
$
1,035,494
$
1,057,022
Costs and expenses:
Direct cost of revenues (exclusive of depreciation and amortization)
247,565
300,797
796,516
843,116
Selling, general and administrative (i)
62,772
55,148
183,948
161,591
Depreciation and amortization
4,509
4,425
13,333
13,381
Severance
–
184
67
439
Total costs and expenses
314,846
360,554
993,864
1,018,527
Other operating (expense) gain, net
(179
)
595
(709
)
1,550
Income from operations
13,328
13,872
40,921
40,045
Interest income, net
85
125
217
223
Other (expense) income, net
(5,068
)
3,815
(24,234
)
5,608
Income before income taxes
8,345
17,812
16,904
45,876
(Provision for) benefit from income taxes
(3,239
)
18,586
(5,887
)
12,142
Net income
5,106
36,398
11,017
58,018
Net (income) attributable to noncontrolling interests
(335
)
(50
)
(1,231
)
(274
)
Net income attributable to IDT Corporation
$
4,771
$
36,348
$
9,786
$
57,744
Earnings per share attributable to IDT Corporation common stockholders:
Basic
$
0.18
$
1.42
$
0.38
$
2.27
Diluted
$
0.18
$
1.39
$
0.37
$
2.23
Weighted-average number of shares used in calculation of earnings per share:
Basic
25,901
25,530
25,706
25,475
Diluted
26,205
26,136
26,455
25,903
(i) Stock-based compensation included in selling, general and administrative expenses
$
1,245
$
275
$
1,840
$
1,215
IDT CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Nine Months Ended April 30,
2022
2021
(in thousands)
Operating activities
Net income
$
11,017
$
58,018
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
13,333
13,381
Deferred income taxes
4,624
(13,811
)
Provision for doubtful accounts receivable
1,578
1,220
Net unrealized loss (gain) from marketable securities
19,705
(508
)
Stock-based compensation
1,840
1,215
Other
3,486
(4,415
)
Change in assets and liabilities:
Trade accounts receivable
(8,461
)
1,626
Disbursement prefunding, prepaid expenses, other current assets, and other assets
(20,504
)
(7,961
)
Trade accounts payable, accrued expenses, other current liabilities, and other liabilities
(2,566
)
(2,154
)
Customer deposits at IDT Financial Services Limited (Gibraltar-based bank)
(9,843
)
(11,078
)
Deferred revenue
(948
)
2,611
Net cash provided by operating activities
13,261
38,144
Investing activities
Capital expenditures
(13,794
)
(13,455
)
Purchase of convertible preferred stock in equity method investment
(1,051
)
(4,000
)
Payments for acquisitions, net of cash acquired
(7,546
)
(2,656
)
Purchase of Rafael Holdings, Inc. Class B common stock and warrant
–
(5,000
)
Exercise of warrant to purchase shares of Rafael Holdings, Inc. Class B common stock
–
(1,000
)
Purchases of debt securities and equity investments
(11,277
)
(39,347
)
Proceeds from maturities and sales of debt securities and redemptions of equity investments
7,752
18,670
Net cash used in investing activities
(25,916
)
(46,788
)
Financing activities
Distributions to noncontrolling interests
(359
)
(646
)
Proceeds from other liabilities
2,301
–
Repayment of other liabilities.
(1,319
)
(69
)
Proceeds from borrowings under revolving credit facility
2,566
–
Repayment of borrowings under revolving credit facility.
(2,566
)
–
Proceeds from sale of redeemable equity in subsidiary
10,000
–
Proceeds from exercise of stock options
137
686
Repurchases of Class B common stock
(12,832
)
(4,192
)
Net cash used in financing activities
(2,072
)
(4,221
)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents
(14,093
)
6,652
Net decrease in cash, cash equivalents, and restricted cash and cash equivalents
(28,820
)
(6,213
)
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period
226,916
201,222
Cash, cash equivalents, and restricted cash and cash equivalents at end of period
$
198,096
$
195,009
Supplemental schedule of non-cash investing and financing activities
Liabilities incurred for acquisitions
$
7,849
$
393
Shares of the Company’s Class B common stock issued for acquisition
$
1,000
$
–
Cashless exercise of stock options in exchange for shares of the Company’s Class B common stock
$
14,930
$
–
Reconciliation of Non-GAAP Financial Measures for the Third Quarter Fiscal 2022 and 2021
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 3Q22, 2Q22, and 3Q21, Adjusted EBITDA, non-GAAP net income, and non-GAAP earnings per diluted share (EPS), 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 starts with net income 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 2022 and fiscal 2021 periods.
IDT’s measure of non-GAAP EPS is calculated by dividing non-GAAP net income by the diluted weighted-average shares.
Management believes that IDT’s Adjusted EBITDA, non-GAAP net income, 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, 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, non-GAAP net income, 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 (expense) gain, net, which is a component of income (loss) from operations, is excluded from the calculation of Adjusted EBITDA, non-GAAP net income, and non-GAAP EPS. Other operating (expense) gain, net includes legal fees net of insurance claims related to Straight Path Communications Inc.’s stockholders’ putative class action and derivative complaint, expense for the indemnification of a net2phone cable telephony customer related to patent infringement claims brought against the customer, a gain from the write-off of a contingent consideration liability, expense for other legal and regulatory matters, and a gain from the sale of IDT’s rights under a class action lawsuit. From time-to-time, IDT may have gains or incur costs related to non-routine legal and regulatory 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 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.
In 3Q21, due to continued and projected profitability, IDT was able to release a portion of its valuation allowance that was recorded against its deferred tax assets. This income tax benefit was excluded from IDT’s non-GAAP net income and non-GAAP EPS because it was only indirectly related to the current results of IDT’s core operation
s.
Adjusted EBITDA, non-GAAP net income, 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, non-GAAP net income, 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, 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, (b) for non-GAAP net income, net income, and (c) 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 Communica-tions
net2phone- UCaaS
Fintech
Corporate
Three Months Ended April 30, 2022 (3Q22)
Net income attributable to IDT Corporation
$
4.8
Adjustments:
Net income attributable to noncontrolling interests
0.3
Net income
5.1
Provision for income taxes
3.2
Income before income taxes
8.3
Interest income, net
(0.1
)
Other expense, net
5.1
Income (loss) from operations
13.3
$
17.4
$
(2.3
)
$
0.2
$
(2.0
)
Depreciation and amortization
4.5
2.5
1.3
0.7
–
Other operating expense, net
0.2
–
–
–
0.2
Adjusted EBITDA
$
18.0
$
19.9
$
(0.9
)
$
0.8
$
(1.8
)
Total IDT Corporation
Traditional Communica-tions
net2phone- UCaaS
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
)
$
(0.2
)
$
(3.0
)
Depreciation and amortization
4.4
2.5
1.3
0.6
–
Other operating expense (gain), net
0.4
–
(0.3
)
–
0.7
Adjusted EBITDA
$
18.7
$
22.4
$
(1.9
)
$
0.4
$
(2.3
)
IDT Corporation Reconciliation of Net Income toAdjusted EBITDA (unaudited) in millions. Figures may not foot or cross-foot due to rounding to millions.
Total IDT Corporation
Traditional Communica-tions
net2phone- UCaaS
Fintech
Corporate
Three Months Ended April 30, 2021 (3Q21)
Net income attributable to IDT Corporation
$
36.3
Adjustments:
Net
income attributable to noncontrolling interests
0.1
Net income
36.4
Benefit from income taxes
(18.6
)
Income before income taxes
17.8
Interest income, net
(0.1
)
Other income, net
(3.8
)
Income (loss) from operations
13.9
$
20.4
$
(4.0
)
$
(1.4
)
$
(1.1
)
Depreciation and amortization
4.4
2.5
1.4
0.5
–
Severance expense
0.2
0.2
–
–
–
Other operating (gain) expense, net
(0.6
)
0.1
–
(0.1
)
(0.6
)
Adjusted EBITDA
$
17.9
$
23.1
$
(2.6
)
$
(1.0
)
$
(1.7
)
IDT Corporation Reconciliations of Net Income to Non-GAAP Net Income and Earnings per shareto Non-GAAP EPS (unaudited) in millions, except per share data. Figures may not foot due to rounding to millions.
3Q22
2Q22
3Q21
Net income
$
5.1
$
8.3
$
36.4
Adjustments (add) subtract:
Stock-based compensation
(1.2
)
(0.3
)
(0.3
)
Severance expense
–
–
(0.2
)
Other operating (expense) gain, net
(0.2
)
(0.4
)
0.6
Release of DTA valuation allowance
–
–
24.0
Total adjustments
(1.4
)
(0.7
)
24.1
Income tax effect of total adjustments
(0.5
)
(0.2
)
–
0.9
0.5
(24.1
)
Non-GAAP net income
$
6.0
$
8.8
$
12.3
Earnings per share:
Basic
$
0.18
$
0.29
$
1.42
Total adjustments
0.05
0.05
(0.94
)
Non-GAAP – basic
$
0.23
$
0.34
$
0.48
Weighted-average number of shares used in calculation of basic earnings per share
25.9
25.7
25.5
Diluted
$
0.18
$
0.28
$
1.39
Total adjustments
0.05
0.05
(0.92
)
Non-GAAP – diluted
$
0.23
$
0.33
$
0.47
Weighted-average number of shares used in calculation of diluted earnings per share
26.2
26.5
26.1
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.
net2phone-UCaaS’ 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-UCaaS’ revenues and direct cost of revenues are strong indications of the top-line growth and performance of the business.
Supplemental Information
* NRS’ recurring revenue is a key performance metric. Please refer to the Explanation of Key Performance Metrics above for an explanation of this metric.
** net2phone subscription revenue is a key performance metric. Please refer to the Explanation of Key Performance Metrics above for an explanation of this metric.
*** Throughout this release, Adjusted EBITDA, Non-GAAP net income 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 earlier in this release for an explanation of these terms and their respective reconciliations to the most directly comparable GAAP measure.
**** NRS’ Monthly Average Recurring Revenue per Terminal is a key performance metric. Please refer to the Explanation of Key Performance Metrics above for an explanation of this metric.
