IDT Corporation to Report Third Quarter Fiscal Year 2022 Results
NEWARK, NJ, May 18, 2022 — 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 third quarter of its 2022 fiscal year (the three months ended April 30th) on Thursday, June 2, 2022.
IDT’s earnings release will be issued and posted on the IDT investor relations website (https://www.idt.net/investors-and–media) 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: 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 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.
BOSS Money Expands Remittance Service to Ethiopia with Direct Deposit
Partnership withTerraPay ProvidesMore Ways to Support Family and Friends in Ethiopia
Newark, NJ., May 12, 2022 — IDT Corporation (NYSE: IDT) – a global provider of fintech, cloud communications, and traditional communications services – today announced that its BOSS Moneyremittance service now offers direct deposit to approximately 40 million accounts across Ethiopian banks. The expanded service, powered by TerraPay, enables BOSS Money customers in the United States to send cash directly to the bank accounts of family and friends in Ethiopia for receipt within minutes.
“BOSS Money has attracted a loyal following in the Ethiopian diaspora because of our reliable cash pick-up service, low fees, and favorable exchange rates,” said Alfredo O’Hagan, IDT’s SVP for Consumer Payments. “Now, we are pleased to offer direct deposit to 40 million accounts at Ethiopian banks in addition to cash pick up at over 4,600 branch locations.”
BOSS Money customers can transfer up to US$100 to Ethiopia for as low as US$3.99 or up to US$2,999 for as little as US$6.99 through the BOSS Money and Boss Calling apps, while taking advantage of BOSS Money’s ultra-competitive exchange rates. The apps are free on the App Store and on Google Play. Senders utilizing either app or the bossrevolution.com website for the first time pay no fees on transfers up to US$300. Customers in the United States can also send cash from over 1,000 BOSS Money retailers across the country.
BOSS Money‘s direct deposit option is available to account holders at the following Ethiopian Banks: Abay Bank, Addis International Bank, Awash International Bank, Bank of Abyssinia, Berhan International Bank, Bunna Bank, Commercial Bank of Ethiopia, Cooperative Bank of Oromia, Dashen Bank, Debub Global Bank, Development Bank of Ethiopia, Enat Bank, Lion International Bank, NIB International Bank, United Bank, Wegagen Bank, and Zemen Bank.
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 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. Our 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 unified communications as a service solution provides 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 TerraPay:
Headquartered in the Netherlands, TerraPay believes that the smallest payment deserves a borderless journey as safe as the largest. The company has been building an ever-expanding payments highway that empowers businesses to create transparent customer experiences with an uninterrupted, secure, and real-time global passage for every payment, however small or large. Registered and regulated across 26 global markets, TerraPay is a leading global partner to banks, mobile wallets, money transfer operators, merchants, and financial institutions, creating a more expansive and inclusive international financial ecosystem. With access to payments infrastructure that spans the globe, their partners become beacons of the promise of global financial
inclusion. For more information, please visit terrapay.com
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.
NEWARK, NJ, May 05, 2022 — IDT Corporation (NYSE: IDT), a global provider of fintech, cloud communications, and traditional communications services, announced today that, in light of current market conditions, its Board of Directors has postponed the spinoff of its net2phone cloud communications segment, which it had been preparing to spin off on or before July 31st, 2022.
“The net2phone team has achieved exceptional results bringing advanced cloud communication solutions to markets in North and South America,” said Jonah Fink, President of net2phone. “We remain very excited by net2phone’s rapid growth, the transformational opportunities created through the recent acquisition of Integra, and the strength of net2phone’s global channel partnerships.”
Shmuel Jonas, IDT’s CEO, added, “While net2phone remains within IDT, we will rapidly execute on a plan to transform net2phone’s business so that it will become bottom line accretive, and we remain resolute in our commitment to grow and monetize the business at an opportune time.”
About IDT Corporation:
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.
NRS Partners with OnPoint to Offer Services for Independent Retailers
NEWARK, N.J., April 07, 2022 — National Retail Solutions (NRS), operator of the nation’s leading point-of-sale (POS) network and payment processing service for independent retailers, today 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 who require a robust POS solution to utilize OnPoint’s scan data programs and full calendar of center-store promotions.
“NRS and OnPoint provide complementary, synergistic offerings to help independent retailers successfully compete against larger retail chains,” said Elie Y. Katz, CEO of NRS. “Our partnership positions both companies to expand our respective networks while providing independent retailers with powerful tools to enhance profitability and extend market reach.”
NRS’ POS network currently provides over 16,000 retailers with powerful tools and services enabling them to compete effectively with large retail chains. NRS’ payment processing solution, NRS PAY, is a rapidly growing credit card and electronic payment processing service utilized by over 8,000 retail stores.
OnPoint’s partnership with NRS is supported by WAM, a nationwide network of distributors in the C-store space and the owner of OnPoint. OnPoint provides scan data services exclusively to the independent and small chain C-stores served by the WAM network.
“A significant portion of the retailers throughout the WAM network are looking for an affordable and easy to use POS system that is compatible with OnPoint, so that they can take advantage of all the value-added services that we provide. Our partnership with NRS provides a best-in-class, turn-key solution for this,” said Win Schiller, President of OnPoint.
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).
About OnPoint:
OnPoint is a scan data service provider that was developed specifically to help independent and small chain convenience stores be more competitive and increase profitability. Our powerful scan data solution allows retailers to take advantage of the tobacco scan programs and center-store promotions from the best brands. OnPoint is owned by the WAM group.
About WAM:
WAM is a nation-wide network of 25 convenience store distributors servicing over 13,000 zip codes. These distributors do $10.8 billion in aggregate sales annually and service over 23,000 C-stores, making the WAM group the third largest distribution entity in the c-store channel.
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.
Partners with LASCO for Convenient and Affordable Payments Across Jamaica
Newark, NJ., March 21, 2022 — IDT Corporation (NYSE: IDT) today announced that it has launched its BOSS Money remittance service to Jamaica. BOSS Money customers in the United States can now send cash to family and friends on the island for pick up in Jamaican Dollars within minutes at participating LASCO Financial Services Ltd.’s (LFSL) LASCO Money locations throughout the island.
“We are delighted to launch our money transfer service to Jamaica,” said Alfredo O’Hagan, IDT’s SVP for Consumer Payments. “Our partnership with LFSL makes sending cash to, and receiving cash in, Jamaica very easy. In the coming months, we’ll be adding other payout options as we work to become the ‘go-to’ money transfer service for the Jamaican diaspora.”
“This partnership with BOSS Money aligns with our quest to provide Jamaicans with convenient, safe and simple solutions that will suit their immediate needs,” said LFSL Managing Director, Jacinth Hall-Tracey. “Family members living in the U.S. will be able to send their loved ones money through Boss Money and receivers can collect from participating LASCO Money agent locations.”
Senders can transfer up to US$1,000 to Jamaica for just US$3.99 on the BOSS Money and Boss Calling apps and take advantage of BOSS Money’s competitive exchange rates. The apps are free on the App Store and at Google Play, and first-time senders on the apps pay no fees on transfers up to US$300. Customers in the United States can also send cash from over 1,000 BOSS Money retailers across the country.
With the launch of the Jamaica corridor, BOSS Money now offers remittances from the United States to 50 countries via 1,250 payers at over 328,000 locations worldwide.
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 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. Our 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 unified communications as a service solution provides 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.
Innovative mobile wallet provider utilizes Stellar blockchain-powered solution to serve unbanked communities in East Africa
NEWARK, NJ, March 14, 2022 — IDT Corporation (NYSE: IDT), a global provider of fintech, cloud communications, and traditional communications services, announced today that it has acquired Leaf Global Fintech Corporation (Leaf), an award-winning provider of digital wallet services in emerging markets currently serving unbanked customers in Rwanda, Uganda, and Kenya.
“Leaf has built a blockchain-based digital wallet for everyone – including the 2.4 billion people worldwide who use feature phones rather than smartphones – making it easy to securely store and share value within and across borders,” said Shmuel Jonas, CEO of IDT. “We are excited to partner with the Leaf team to help build out their network across Africa and the rest of the world.”
The Leaf Wallet is an innovative mobile platform available on smartphones, feature phones and other mobile devices through the Leaf Wallet apps or by utilizing a USSD interface accessed via a short code. The Leaf digital wallet enables customers to store, send, receive, and exchange currencies on their phones domestically and across borders.
“We are thrilled to join IDT and look forward to the opportunity to deploy Leaf globally through IDT’s network,” said Nat Robinson, Leaf’s Co-Founder and CEO. “We now have a tremendous opportunity to expand our service to traders, refugees, migrants, and other largely unbanked populations worldwide with affordable mobile technology.”
The Leaf platform leverages the Stellar network for storing and disseminating transaction data while maintaining value with stablecoins. Stellar is an open-source, decentralized blockchain network that connects global financial infrastructures. It is optimized for payments and specifically to support cross-border transactions. The Stellar platform enables Leaf to provide affordable, fast, mobile transactions to cost-sensitive populations that require high security and transparency.
“The IDT acquisition validates the groundbreaking work our team has done to deliver a world-class digital wallet to people with and without smartphones in multiple markets,” said Tori Samples, Leaf Co-Founder and CTO. “We are confident that Leaf’s stablecoin approach on Stellar will continue to lower transaction costs and increase accessibility for customers around the world.”
Leaf has won awards from the United Nations, The Vatican, Cisco, Fast Company, and was recently named to the global Inclusive Fintech 50 list.
About IDT Corporation:
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.
About Leaf Global Fintech:
The Leaf Wallet is an innovative mobile wallet available on both smartphones (on the App Store and Google Play) and non-smartphones through a USSD interface accessed via a short code. Leaf enables customers to store, send, receive, and exchange currencies on their phones, domestically and across borders. Currently, Leaf is operational in three countries across East Africa.
Leaf has received support from the UNICEF Venture Fund, the U.S. National Science Foundation, Techstars, and the Stellar Development Foundation. Learn more at www.leafglobalfintech.com.
Contact:
Bill Ulrey IDT Investor Relations Phone: (973) 438-3838 E-mail: invest@idt.net
# # #
IDT Corporation Reports Second Quarter Fiscal Year 2022 Results
NEWARK, NJ, March 07, 2022 — IDT Corporation (NYSE: IDT), a global provider of fintech, cloud communications, and traditional communications services, today reported results for the second quarter of its 2022 fiscal year, the three months ended January 31, 2022.
SECOND QUARTER FISCAL YEAR 2022(2Q22) HIGHLIGHTS
(Throughout this release, results are for 2Q22and are compared to 2Q21 unless otherwise noted.Earningsper share (EPS), loss per share, Non-GAAP EPS*, andNon-GAAP loss per share* are per diluted share. Please see the final page of this release for important supplemental information on asterisked metrics and results.)
Consolidated revenue decreased 0.8% to $337 million from $340 million. Key business unit revenue included:
National Retail Solutions (NRS) revenue increased 103.6% to $10.6 million.
net2phone subscription revenue increased 32.3% to $12.5 million.**
Money Transfer revenue decreased 6.2% to $12.5 million due to transitory foreign exchange market conditions that materially improved revenue in 2Q21. Absent that impact, Money Transfer revenue would have increased by 48%.
Within the Traditional Communications segment, Mobile Top-Up revenue increased 20.4% to $116.2 million while segment revenue decreased 3.2% to $300.4 million. Segment revenue-less-direct-cost-of-revenue increased 6.2% to $52.8 million.
Consolidated revenue-less-direct-cost-of-revenue increased 12.9% to $80 million from $71 million, the tenth consecutive quarter of year-over-year increases.
Consolidated income from operations increased 6.9% to $13.8 million from $12.9 million.
Adjusted EBITDA* increased 14.3% to $18.7 million from $16.3 million. Adjusted EBITDA* less capital expenditures (CAPEX)*** increased 16.3% to $14.0 million from $12.1 million.
EPS was $0.28 compared to EPS of $0.51. Non-GAAP EPS* was $0.33 compared to Non-GAAP EPS* $0.49.
Following the quarter close, net2phone acquired Integra CCS, a rapidly growing contact-center-as-a-service (CCaaS) provider operating in the Americas and Europe, for a consideration of up to $15 million in cash and stock inclusive of earnouts.
REMARKS BY SHMUEL JONAS, CEO
“Our second quarter financial results were highlighted by year over year improvements in gross profit, income from operations and Adjusted EBITDA driven by the continued expansion of our growth businesses.
“NRS accelerated the growth of its customer base, adding nearly 1400 net POS activations and 1200 NRS Pay accounts during the quarter. As of January 31st, NRS served approximately 16,500 active POS terminals and 8,000 NRS Pay accounts. NRS revenue increased 104% from the year-ago quarter to $10.6 million, led by triple-digit gains from advertising and merchant services revenue. We are still in the early stages of NRS’ development in terms of our addressable markets, new service offerings, and monetization of our current offerings.
“At our net2phone-UCaaS segment, subscription revenue increased 32% year-over-year to $12.5 million. Growth was strongest in our Latin American markets, particularly in Mexico where we continue to find success with larger customers. Last week, we closed on the acquisition of Integra, a fast-growing CCaaS provider. We will incorporate Integra’s CCaaS service with net2phone’s UCaaS solutions to create a higher value, integrated offering that we expect will drive growth — and significantly enhance net2phone’s unit economics — as we become more competitive upmarket.
“We are now focused on completing the previously announced spin-off of net2phone to our stockholders and are working to complete it by the end of the current fiscal year on July 31st.
“Money Transfer transactions increased 21% year-over-year while revenue decreased 6% to $12.5 million. On an “apples-to-apples” basis, adjusting for the impact of transitory foreign exchange that improved 2Q21 results, 2Q22 transactions would have increased 36% and revenue would have increased by 48% from the year-ago quarter.
“Although our Traditional Communications segment’s revenue decreased 3.2% year-over-year to $300 million, revenue-less-direct-cost-of-revenue increased 6% to $53 million, led by the continued expansion of our Mobile Top-Up business.”
CONSOLIDATED RESULTS
Results (in millions, except EPS)
2Q22
1Q22
2Q21
2Q22 – 2Q21 change(%/$)
Revenue
$
337
$
370
$
340
(0.8
)%
Revenue-less-direct-cost-of-revenue
$
80
$
78
$
71
+12.9
%
Revenue-less-direct-cost-of-revenue as a percentage of revenue***
23.7
%
21.2
%
20.8
%
+290 bp
SG&A expense
$
61
$
60
$
54
+12.5
%
Depreciation and amortization
$
4.4
$
4.4
$
4.5
+(1.9)
%
Income from operations
$
13.8
$
13.8
$
12.9
+6.9
%
Adjusted EBITDA*
$
18.7
$
18.4
$
16.3
+14.3
%
Adjusted EBITDA* less CAPEX***
$
14.0
$
14.0
$
12.1
+16.3
%
Net income (loss) attributable to IDT
$
7.5
$
(2.5
)
$
13.1
$
(5.6
)
Earnings (loss) per diluted share
$
0.28
$
(0.10
)
$
0.51
$
(0.23
)
Non-GAAP net income (loss)*
$
8.8
$
(2.0
)
$
12.7
$
(3.9
)
Non-GAAP earnings (loss) per share*
$
0.33
$
(0.08
)
$
0.49
$
(0.16
)
RESULTS BY SEGMENT (Results are for 2Q22 and are compared to 2Q21except where otherwise noted)
(in millions)
Fintech
net2phone-UCaaS
Traditional Communications
2Q22
1Q22
2Q21
2Q22
1Q22
2Q21
2Q22
1Q22
2Q21
Revenue
$
23.1
$
22.6
$
18.5
$
13.5
$
12.9
$
10.9
$
300.4
$
334.6
$
310.4
Revenue-less-direct-cost-of-revenue
$
15.8
$
15.3
$
12.0
$
11.1
$
10.4
$
8.8
$
52.8
$
52.7
$
49.8
SG&A expense
$
15.3
$
14.8
$
11.8
$
13.0
$
13.3
$
11.2
$
30.4
$
30.0
$
29.3
(Loss) income from operations
$
(0.2
)
$
0.0
$
(0.2
)
$
(2.9
)
$
(4.2
)
$
(3.7
)
$
19.9
$
20.1
$
19.1
Adjusted EBITDA*
$
0.4
$
0.5
$
0.2
$
(1.9
)
$
(2.9
)
$
(2.4
)
$
22.4
$
22.7
$
20.5
Adjusted EBITDA* less CAPEX***
$
(0.8
)
$
(0.7
)
$
(1.0
)
$
(3.2
)
$
(4.2
)
$
(3.6
)
$
20.3
$
20.9
$
18.6
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 Revolution Money Transfer, a provider of international money remittances.
In 2Q22 and 2Q21, the Fintech segment accounted for 6.8% and 5.4% of IDT’s consolidated revenue and 19.8% and 17.0% of IDT’s consolidated revenue-less-direct-cost-of-revenue, respectively.
NRSRevenueand KPIs:
Revenue $ in thousands
2Q22
1Q22
2Q21
2Q22 -2Q21 change %
POS terminals, active – end of period
16,500
15,100
12,000
37
%
Payment processing accounts – end of period
8,000
6,800
3,900
105
%
NRS recurring revenue
Merchant services and other
$
3,810
$
3,112
$
1,561
+144
%
Advertising & data
3,901
4,306
1,819
+114
%
SaaS fees
1,318
1,187
757
+74
%
Total recurring revenue
$
9,029
$
8,605
$
4,137
+118
%
POS terminal sales
1,591
1,467
1,081
+47
%
Total NRS revenue
$
10,620
$
10,072
$
5,218
+104
%
Monthly average recurring revenue per terminal (excl. POS terminal sales revenue)***
$
190
$
196
$
114
+66
%
As of January 31, 2022, NRS’ POS terminal network comprised approximately 16,500 active POS terminals, an increase of 37% compared to a year earlier, and approximately 8,000 payment processing accounts, an increase of 105%.
NRS revenue increased 104% to $
10.6 million from $5.2 million and recurring revenue increased by 118% to $9.0 million from $4.1 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 $190 from $114.
During 2Q22, NRS launched its eWIC processing service, enabling independent retailers to accept and process WIC benefits in electronic format.
Money Transfer Take-Aways:
Transactions increased 21% to 2.20 million from 1.83 million in the year-ago period.
Revenue decreased 6% to $12.5 million from $13.3 million in 2Q21. Excluding the impact of previously disclosed foreign exchange market conditions that positively affected comparative 2Q21results, transactions would have increased 36% and revenue would have increased 48%.
BOSS Money continued to expand its global payments network by opening remittance services to Jamaica, Togo, and Sierra Leone. BOSS Money now offers remittances from the US to 50 countries via 1,250 payers at over 328,000 locations worldwide.
net2phone-UCaaS
In 2Q22 and 2Q21, the net2phone-UCaaS segment accounted for 4.0% and 3.2% of IDT’s consolidated revenue and 14.0% and 12.5% of IDT’s consolidated revenue-less-direct-cost-of-revenue, respectively.
net2phone-UCaaS Takeaways:
Total seats served increased 35% to 258,000 at January 31, 2022, from 190,000 a year earlier.
Subscription revenue*** increased 32% to $12.5 million from $9.5 million, led by strong growth in both net2phone’s South and North American regions.
Subscription revenue less direct cost of revenue as a percentage of subscription revenue decreased slightly to 85.5% from 86.0% in 2Q21.
During 2Q22, net2phone announced a strategic partnership with Avant, a leading distributor for next generation technologies.
Traditional Communications
In 2Q22 and 2Q21, the Traditional Communications segment accounted for 89.1% and 91.4% of IDT’s consolidated revenue and 66.2% and 70.4% of IDT’s consolidated revenue-less-direct-cost-of-revenue, respectively.
Traditional Communications Takeaways:
Mobile Top-Up revenue increased 20.4% to $116.2 million from $96.6 million, primarily as a result of an increase in B2B sales resulting from a wholesale market opportunity that began during 3Q21 and has subsequently narrowed considerably. Sales via the direct-to-consumer channel continued to increase, partially offset by a decrease in sales via the retail channel.
BOSS Revolution Calling revenue decreased 12.2% to $100.0 million from $113.9 million while minutes-of-use decreased 15.5% compared to the year-ago quarter. The rates of decline were higher than in recent quarters as the increased demand associated with the COVID pandemic diminished.
IDT Global carrier services revenue decreased 16.1% to $73.1 million from $87.2 million reflecting a 30.3% decrease in minutes-of-use partially offset by an increase in revenue per minute.
Traditional Communications revenue-less-direct-cost-of-revenue increased 6.2% to $52.8 million from $49.8 million reflecting the increase in mobile top-up revenue and increased margins from all three of Traditional Communications’ primary business lines.
Traditional Communications’ Adjusted EBITDA* less CAPEX** increased 9.2% to $20.3 million from $18.6 million.
NOTES ON FINANCIAL STATEMENTS
Consolidated results for all periods presented include corporate overhead. Corporate G&A expense increased to $2.3 million in 2Q22 from $2.0 million in 2Q21.
As of January 31, 2022, IDT held $148.3 million in cash, cash equivalents, debt securities, and current equity investments. Current assets totaled $387.0 million and current liabilities totaled $327.4 million.
Net cash provided by operating activities during 2Q22 was $17.5 million compared to $6.8 million during 2Q21. Exclusive of changes in customer deposit balances at our Gibraltar-based bank, net cash provided by operating activities during 2Q22 was $6.3 million compared to $17.4 million during 2Q21.
Capital expenditures increased to $4.6 million in 2Q22 from $4.3 million in 2Q21.
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: 897234).
A replay of the conference call will be available approximately three hours after the call concludes through March 14, 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: 44495. 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 $4,896 at January 31, 2022 and $4,438 at July 31, 2021
53,247
46,644
Disbursement prefunding
29,226
27,656
Prepaid expenses
17,408
13,694
Other current assets
22,582
16,779
Total current assets
386,999
388,135
Property, plant, and equipment, net
31,639
30,829
Goodwill
15,081
14,897
Other intangibles, net
6,940
7,578
Equity investments
8,355
11,654
Operating lease right-of-use assets
7,100
7,671
Deferred income tax assets, net
39,539
41,502
Other assets
10,241
10,389
Total assets
$
505,894
$
512,655
Liabilities and equity
Current liabilities:
Trade accounts payable
$
23,800
$
24,502
Accrued expenses
122,372
129,085
Deferred revenue
40,592
42,293
Customer deposits
109,862
115,524
Other current liabilities
30,744
27,930
Total current liabilities
327,370
339,334
Operating lease liabilities
5,014
5,473
Other liabilities
467
1,234
Total liabilities
332,851
346,041
Commitments and contingencies
Redeemable noncontrolling interest
10,063
–
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, 2022 and July 31, 2021
33
33
Class B common stock, $.01 par value; authorized shares-200,000; 26,684 and 26,379 shares issued and 24,292 and 24,187 shares outstanding at January 31, 2022 and July 31, 2021, respectively
267
264
Additional paid-in capital
278,613
278,021
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 2,392 and 2,192 shares of Class B common stock at January 31, 2022 and July 31, 2021, respectively
(69,387
)
(60,413
)
Accumulated other comprehensive loss
(11,088
)
(10,183
)
Accumulated deficit
(37,843
)
(42,858
)
Total IDT Corporation stockholders’ equity
160,595
164,864
Noncontrolling interests
2,385
1,750
Total equity
162,980
166,614
Total liabilities and equity
$
505,894
$
512,655
IDT CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Three Months Ended January 31,
Six Months Ended January 31,
2022
2021
2022
2021
(in thousands, except per share data)
Revenues
$
337,058
$
339,766
$
707,141
$
683,191
Costs and expenses:
Direct cost of revenues (exclusive of depreciation and amortization)
257,325
269,145
548,950
542,319
Selling, general and administrative (i)
61,070
54,298
121,177
106,442
Depreciation and amortization
4,378
4,464
8,825
8,956
Severance
29
143
67
255
Total costs and expenses
322,802
328,050
679,019
657,972
Other operating (expense) gain, net
(442
)
1,207
(530
)
955
Income from operations
13,814
12,923
27,592
26,174
Interest income, net
119
139
132
98
Other (expense) income, net
(2,949
)
3,170
(19,165
)
1,792
Income before income taxes
10,984
16,232
8,559
28,064
Provision for income taxes
(2,734
)
(3,027
)
(2,648
)
(6,444
)
Net income
8,250
13,205
5,911
21,620
Net (income) attributable to noncontrolling interests
(763
)
(97
)
(896
)
(224
)
Net income attributable to IDT Corporation
$
7,487
$
13,108
$
5,015
$
21,396
Earnings per share attributable to IDT Corporation common stockholders:
Basic
$
0.29
$
0.52
$
0.20
$
0.84
Diluted
$
0.28
$
0.51
$
0.19
$
0.83
Weighted-average number of shares used in calculation of earnings per share:
Basic
25,652
25,362
25,609
25,448
Diluted
26,542
25,713
26,580
25,787
(i) Stock-based compensation included in selling, general and administrative expenses
$
310
$
434
$
595
$
940
IDT CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Six Months Ended January 31,
2022
2021
(in thousands)
Operating activities
Net income
$
5,911
$
21,620
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
8,825
8,956
Deferred income taxes
1,683
5,881
Provision for doubtful accounts receivable
1,289
1,069
Net unrealized loss (gain) from marketable securities
16,242
(286
)
Stock-based compensation
595
940
Other
2,850
269
Change in assets and liabilities:
Trade accounts receivable
(8,045
)
(7,330
)
Disbursement prefunding, prepaid expenses, other current assets, and other assets
(8,551
)
4,965
Trade accounts payable, accrued expenses, other current liabilities, and other liabilities
(6,313
)
1,631
Customer deposits at IDT Financial Services Limited (Gibraltar-based bank)
(1,862
)
(11,136
)
Deferred revenue
(960
)
(968
)
Net cash provided by operating activities
11,664
25,611
Investing activities
Capital expenditures
(8,991
)
(8,825
)
Purchase of convertible preferred stock in equity method investment
(1,051
)
–
Payments for acquisitions, net of cash acquired
(100
)
(2,388
)
Purchase of Rafael Holdings, Inc. Class B common stock and warrant
–
(5,000
)
Purchases of debt securities and equity investments
(10,825
)
(34,436
)
Proceeds from maturities and sales of debt securities and redemptions of equity investments
6,068
11,575
Net cash used in investing activities
(14,899
)
(39,074
)
Financing activities
Distributions to noncontrolling interests
(198
)
(418
)
Proceeds from other liabilities
2,301
–
Repayment of other liabilities.
(1,291
)
(56
)
Proceeds from borrowings under revolving credit facility
2,488
–
Repayment of borrowings under revolving credit facility.
(2,488
)
–
Proceeds from sale of redeemable equity in subsidiary
10,000
–
Proceeds from exercise of stock options
–
686
Repurchases of Class B common stock
(8,974
)
(4,192
)
Net cash provided by (used in) financing activities
1,838
(3,980
)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents
(4,967
)
5,560
Net decrease in cash, cash equivalents, and restricted cash and cash equivalents
(6,364
)
(11,883
)
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
$
220,552
$
189,339
Supplemental schedule of non-cash investing and financing activities
Liabilities incurred for acquisition
$
–
$
393
Reconciliation of Non-GAAP Financial Measures for the Second 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 2Q22, 1Q21, and 2Q21, Adjusted EBITDA, non-GAAP net income (loss), non-GAAP earnings per diluted share (EPS), and non-GAAP loss per share, 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 Adjusted EBITDA consists of revenue less direct cost of revenues and selling, general and administrative expense. Another way of calculating Adjusted EBITDA is to start with income (loss) from operations, add depreciation and amortization, severance expense, and other operating expense, and deduct other operating gains.
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 2022 and fiscal 2021 periods.
IDT’s measures of non-GAAP EPS and non-GAAP loss per share are 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), non-GAAP EPS, and non-GAAP loss per share 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), non-GAAP EPS, and non-GAAP loss per share 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), non-GAAP EPS, and non-GAAP loss per share. 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 (loss), non-GAAP EPS, and non-GAAP loss per share. 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.
The other calculation of Adjusted EBITDA consists of revenue less direct cost of revenues and selling, general and administrative expense. As the other excluded items are not reflected in this calculation, they are excluded automatically and there is no need to make additional adjustments. This calculation results in the same Adjusted EBITDA amount and its utility and significance is as explained above.
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), non-GAAP EPS, and non-GAAP loss per share 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), non-GAAP EPS, and non-GAAP loss per share 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), non-GAAP EPS, and non-GAAP loss per share may not be comparable to similarly titled measures reported by other companies.
Following are reconciliations of Adjusted EBITDA, non-GAAP net income (loss), non-GAAP EPS, and non-GAAP loss per share 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 and non-GAAP loss per share, diluted earnings (loss) per share.
IDT Corporation Reconciliation of Adjusted EBITDA to Net Income (Loss) (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 January 31, 2022 (2Q22)
Adjusted EBITDA
$
18.7
$
22.4
$
(1.9
)
$
0.4
$
(2.3
)
Subtract (Add):
Depreciation and amortization
4.4
2.5
1.3
0.6
–
Severance expense
–
–
–
–
–
Other operating expense (gain), net
0.4
–
(0.3
)
–
0.7
Income (loss) from operations
13.8
$
19.9
$
(2.9
)
$
(0.2
)
$
(3.0
)
Interest income, net
0.1
Other expense, net
(2.9
)
Income before income taxes
11.0
Provision for income taxes
(2.7
)
Net income
8.3
Net income attributable to noncontrolling interests
(0.8
)
Net income attributable to IDT Corporation
$
7.5
Total IDT Corporation
Traditional Communica-tions
net2phone-UCaaS
Fintech
Corporate
Three Months Ended October 31, 2021 (1Q22)
Adjusted EBITDA
$
18.4
$
22.7
$
(2.9
)
$
0.5
$
(2.0
)
Subtract:
Depreciation and amortization
4.4
2.5
1.3
0.6
–
Severance expense
–
–
–
–
–
Other operating expense, net
0.1
–
–
–
0.1
Income (loss) from operations
13.8
$
20.1
$
(4.2
)
$
–
$
(2.1
)
Interest income, net
–
Other expense, net
(16.2
)
Loss before income taxes
(2.4
)
Benefit from income taxes
0.1
Net loss
(2.3
)
Net income attributable to noncontrolling interests
(0.2
)
Net loss attributable to IDT Corporation
$
(2.5
)
IDT Corporation Reconciliation of Adjusted EBITDA to Net Income (unaudited) in millions. Figures may not foot or cross-foot due to rounding to millions.
Total IDT Corporation
Traditional Communic-ations
net2phone-UCaaS
Fintech
Corporate
Three Months Ended January 31, 2021 (2Q21)
Adjusted EBITDA
$
16.3
$
20.5
$
(2.4
)
$
0.2
$
(2.0
)
Subtract (Add):
Depreciation and amortization
4.5
2.8
1.2
0.4
–
Severance expense
0.1
0.1
–
–
–
Other operating (gain) expense, net
(1.2
)
(1.6
)
0.1
–
0.3
Income (loss) from operations
12.9
$
19.1
$
(3.7
)
$
(0.2
)
$
(2.3
)
Interest income, net
0.1
Other income, net
3.2
Income before income taxes
td style="vertical-align: bottom">
16.2
Provision for income taxes
(3.0
)
Net income
13.2
Net income attributable to noncontrolling interests
(0.1
)
Net income attributable to IDT Corporation
$
13.1
IDT Corporation Reconciliations of Net Income (Loss) to Non-GAAP Net Income (Loss) and Earnings (Loss) per share to Non-GAAP EPS or Non-GAAP Loss per share (unaudited) in millions, except per share data. Figures may not foot due to rounding to millions.
Total IDT Corporation
Traditional Communic-ations
net2phone-UCaaS
Fintech
Corporate
Three Months Ended January 31, 2021 (2Q21)
Adjusted EBITDA
$
16.3
$
20.5
$
(2.4
)
$
0.2
$
(2.0
)
Subtract (Add):
Depreciation and amortization
4.5
2.8
1.2
0.4
–
Severance expense
0.1
0.1
–
–
–
Other operating (gain) expense, net
(1.2
)
(1.6
)
0.1
–
0.3
Income (loss) from operations
12.9
$
19.1
$
(3.7
)
$
(0.2
)
$
(2
.3
)
Interest income, net
0.1
Other income, net
3.2
Income before income taxes
16.2
Provision for income taxes
(3.0
)
Net income
13.2
Net income attributable to noncontrolling interests
(0.1
)
Net income attributable to IDT Corporation
$
13.1
Explanation of Key Performance Metrics
net2phone-UCaaS’ cloud communications offering is priced on a per-seat basis. 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.
Beginning 2Q22, net2phone-UCaaS’ subscription revenue no longer includes revenue generated by a legacy SIP trunking offering in Brazil, which will be included with other non-subscription offerings in total net2phone-UCaaS’ revenue. Comparative information has been restated in all periods to conform to the current presentation. Following is a reconciliation of subscription revenue to the current standard:
(in millions)
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
Subscription revenue as previously reported
$
9.1
$
10.3
$
10.9
$
11.9
$
12.5
$
13.2
Less: Legacy SIP trunking revenue in Brazil
0.8
0.8
0.9
0.9
0.8
0.7
Subscription revenue restated
$
8.3
$
9.5
$
10.0
$
11.0
$
11.7
$
12.5
Revenue-less-direct-cost-of-revenue as a percentage of revenue is a financial metric that measures changes in our revenue relative to changes in direct cost of revenue during the same period. Revenue and direct cost of revenue in this metric are from IDT’s consolidated statements of operations in accordance with GAAP. Revenue-less-direct-cost-of-revenue as a percentage of revenue is a ratio in which revenue-less-direct-cost-of-revenue is the numerator and revenue is the denominator. It is useful for monitoring trends in the generation of revenue as well as for evaluating the net contribution of IDT’s revenue.
Adjusted EBITDA less CAPEX is also a financial metric, which is calculated by deriving Adjusted EBITDA as described above and subtracting capital expenditures in accordance with GAAP as reported in the consolidated statements of cash flows. Management uses Adjusted EBITDA less CAPEX to evaluate the level of capital investment needed to support operations, and as a reasonable proxy for the cash generated by IDT’s businesses. Because IDT’s capital expenditures reflect an allocation of capital for longer-term growth, IDT seeks to strike an appropriate balance between near-term and long-term financial performance as reflected in Adjusted EBITDA less CAPEX. IDT’s measurement of Adjusted EBITDA less CAPEX may not be comparable to similarly titled measures reported by other companies.
Monthly Average Recurring Revenue per Terminal is also a financial metric. Monthly Average Recurring Revenue per Terminal is calculated by dividing NRS’ revenue in accordance with GAAP during a period, excluding revenue from POS terminal sales, by the average number of active POS terminals during the period. The result is divided by three when the period is a fiscal quarter. The average number of active POS terminals is calc
ulated by adding the beginning and ending number of active POS terminals during the period and dividing by two. 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.
Supplemental Information
* Throughout this release, Adjusted EBITDA, Non-GAAP net income (loss) and Non-GAAP earnings (loss) per share 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.
** net2phone subscription revenue is a key performance metric and no longer includes revenue generated by a legacy SIP trunking offering in Brazil. Please refer to the Explanation of Key Performance Metrics on the preceding page of this release for an explanation of this metric and a reconciliation of subscription revenue in prior periods to the current standard.
*** Throughout this release, revenue-less-direct-cost-of-revenue as a percentage of revenue, Adjusted EBITDA* less CAPEX, and Monthly Average Recurring Revenue per Terminal are key performance metrics. Please refer to the Explanation of Key Performance Metrics on the preceding page of this release for an explanation of these metrics.
# # #
net2phone Acquires Integra, an Omnichannel CCaaS Platform
net2phone strengthens its position as a leading provider of cloud communications and collaboration solutions
Newark, NJ, March 03, 2022 — net2phone, a leading communications-as-a-service provider and subsidiary of IDT Corporation (NYSE: IDT), today announced that it has acquired Integra CCS, a contact-center-as-a-service (CCaaS) provider operating in the Americas and Europe.
The Integra platform provides a rich set of contact center and process features, including omnichannel support, social media integrations, chat-bot communications, workflow management, development tools for tailored contact center solutions and numerous third-party software integrations. Integra was recently named a “Most Promising Contact Center Solution Provider” by CIOReview, the leading digital technology and networking publication for technology buyers, experts, and decision-makers.
“As the CCaaS and UCaaS markets continue their exceptional growth trajectories, businesses are gravitating to providers who can support integrated communications-as-a-service offerings,” said Jonah Fink, CEO of net2phone. “With the Integra CCaaS platform, our powerful UCaaS solutions, and our industry-leading SIP trunking service, we can provide holistic solutions that deliver unbeatable value. Our channel partners in the US, Canada, Brazil and Mexico have begun to introduce these packages and are extremely enthusiastic about their potential.”
For organizations seeking to boost the productivity of dispersed contact center teams while moving to the cloud, the Integra platform’s strong analytics and management tools are a perfect fit providing outstanding internal visibility. Moreover, in the remote working era, customers expect diversified channel interoperability including voice with a seamless experience across channels. The Integra CCaaS platform enables a superior and consistent customer experience in every interaction, on every channel, and in real-time.
Sebastián Guttiérez, CEO of Integra, added, “We are truly excited by the synergies with net2phone and are already working to leverage its global channel partner community, communications infrastructure and extensive carrier relationships to penetrate the broader SMB and mid-enterprise CCaaS markets.”
“We have acquired a great company with an accomplished team,” said Shmuel Jonas, IDT’s CEO. “Integra is an outstanding fit for net2phone. Their innovative offerings are highly synergistic and when harnessed to net2phone’s global sales and channel partner network, we expect them to become a near term, powerful source of growth and expansion. Integra is already cash flow positive and generating near triple-digit revenue growth.”
The acquisition of Integra was financed internally by IDT.
To learn more about how net2phone’s CCaaS solutions, powered by Integra, can work for your business, visit www.net2phone.com/ccaas.
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 communications-as-a-service platform helps 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.
IDT Corporation to Report Second Quarter Fiscal Year 2022 Results
NEWARK, NJ, Feb. 28, 2022 — 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 2022 fiscal year (the three months ended January 31st) on Monday, March 7, 2022.
IDT’s earnings release will be issued and posted on the IDT investor relations website (https://www.idt.net/investors-and-media) 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: 897234).
A replay of the conference call will be available approximately three hours after the call concludes through March 14, 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: 44495. 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 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.
BOSS Revolution Money Expands African Remittance Footprint
Money Transfers Now Available from the US to Togo, Sierra Leone, and Benin
Newark, NJ., Feb. 03, 2022 — IDT Corporation (NYSE: IDT) today announced that BOSS Money has expanded its money transfer service in Africa, enabling its US customers to affordably and conveniently send money to Togo and Sierra Leone and adding new payout options in Benin.
In Togo, cash can be picked up at over 318 branches of La Poste and BanquePopulairepour l’Épargne et le Crédit. In Sierra Leone, cash can be picked up at select Afro International, BnB Transfer and Jalloh Enterprise Ltd., stores. In Benin, cash can now be picked up at La Poste du Benin in addition to Express Union Benin SA branches. BOSS Money customers can also send cash directly to MTN Benin mobile wallets.
BOSS Money is also expanding its partnership with the United Bank for Africa (UBA). US customers will soon be able to send cash for direct deposit or pick-up at UBA branch offices in Liberia and Ghana. In Nigeria, where BOSS Money currently offers cash pick-up at UBA branches, BOSS Money will soon provide direct deposit to UBA accounts.
BOSS Money now offers its US customers transfers to 22 African countries via 126 payers with cash pick-up or deposit available at over 215,000 locations.
“We continue to rapidly expand our payout options in Africa, giving customers more options to support family and friends back home,” said Alfredo O’Hagan, IDT’s SVP for Consumer Payments. “US to Africa corridors remain underserved, and we are pleased to provide additional options to help our customers share resources with their family and friends across the continent affordably and securely.”
The BOSS Revolution Money Transfer service is readily available through the convenient BOSS Revolution Money app and its nationwide network of BOSS Revolution Money Transfer retailers. First-time users of the app (free at App Store and Google Play) pay no fees on any transfer up to $300. BOSS Revolution Money Transfer is also available online or at any BOSS Revolution Money retailer.
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 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. Our 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 unified communications as a service solution provides 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.
