Launches TerraPay powered transfers to Senegal and Benin

Newark, NJ, Aug. 12, 2021 — BOSS Revolution Money Transfer, the international remittance service of IDT Corporation (NYSE: IDT), today announced a partnership with TerraPay, a global payments infrastructure company, to provide BOSS Revolution customers with new money transfer destinations across Africa, Asia, LATAM and Europe.

BOSS Revolution has begun offering seamless and secure payments to mobile wallets in Senegal and Benin through TerraPay to begin the expansion.

“Our customers in the US can now send money to friends and family in Senegal, Benin and 36 other countries including over 309,000 points of payment,” said Alfredo O’Hagan, IDT’s SVP for Consumer Payments. “We are delighted to partner with TerraPay as we open new corridors and emphasize real-time payment options leveraging their extensive platform.”

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.

As a B2B company, TerraPay connects multiple and diverse payment instruments and payment modes, with a single API integration – 4 Bn+ bank accounts, 500 Mn+ mobile wallets, and a large and diversified merchant ecosystem spanning across 79 receive countries and 153 send countries. With international remittances at the core, the company is embarking on creating unified payment rails for businesses and merchants across the globe. TerraPay’s endeavor is to strengthen and offer value-added services on its digital global payments highway, deepening engagement and adding more participants to a cohesive financial ecosystem.

Commenting on the relationship, Ani Sane, Co-founder and Chief Business Officer, TerraPay, said, “Our exciting partnership with BOSS Revolution will empower customers in the US to connect with family and friends worldwide, starting with mobile wallets in Senegal and Benin, while growing both companies’ footprints. This collaboration is another example of the impact our digital interoperable payment network provides across regions. We are driving greater access to financial services globally for all our partners and customers.”

About IDT Corporation:

IDT Corporation (NYSE: IDT) is a global provider of fintech, cloud communications and traditional communications services. We make it easier for families to connect, support and share across international borders. We also enable businesses to transact and communicate with their customers with enhanced intelligence and insight.

Our BOSS Revolution branded money transfer and 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 unified communications as a service solution provides businesses with intelligently integrated cloud communications and collaboration solutions across channels and devices. Our IDT Carrier Services and IDT Express wholesale offerings enable communications companies to provision and manage international voice and SMS services.

About TerraPay:

TerraPay is a licensed digital payments infrastructure and solutions provider, paving the global payments highway. The company’s robust foundation and innovative platform technology serve as the digital interoperability engine enabling customers and businesses globally to send and receive payments on a secure, transparent, efficient, and real-time basis. The agile network supports diverse payment instruments and types of payments while adhering to complex regulations and compliance standards in different markets. For more information, please visit terrapay.com

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

NEWARK, NJ, Aug. 11, 2021 — IDT Corporation’s (NYSE: IDT) Carrier Services division today announced a SMS carrier agreement with Telefónica Global Solutions, the unit that manages the international Wholesale, Global Roaming and Multinational businesses of the Telefónica Group, including Telefónica’s US business.

The agreement enables IDT to transmit SMS messages sent by its BOSS Revolution businesses in the U.S. and by its wholesale and enterprise partners globally directly to Telefónica mobile subscribers worldwide.

The new agreement builds on the longstanding partnership between the two companies to pursue evolving opportunities in the global wholesale carrier market. Telefónica Global Solutions and IDT currently exchange over one billion minutes of international voice traffic annually.

“This agreement with Telefónica Global Solutions represents an important milestone as we continue to expand our SMS messaging capabilities,” said Nick Ford, President of IDT’s Carrier Services division. “The agreement will enable both our consumer and enterprise customers to enjoy direct, high-quality application-to-person SMS delivery when messaging Telefónica mobile customers worldwide.”

“Our SMS messaging business is just one of several promising initiatives to help us expand and diversify our Carrier Services business by leveraging our global platforms and relationships with the world’s leading telecommunications providers,” Ford added.

About IDT Corporation:

IDT Corporation (NYSE: IDT) is a global provider of fintech, cloud communications and traditional communications services. We make it easier for families to connect, support and share across international borders. We also enable businesses to transact and communicate with their customers with enhanced intelligence and insight.

Our BOSS Revolution branded money transfer, mobile top-up and 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 unified communications as a service solution provides businesses with intelligently integrated cloud communications and collaboration solutions across channels and devices. Our IDT Carrier Services and IDT Express wholesale offerings enable communications companies to provision and manage international voice and SMS services.

About Telefónica

Telefónica is one of the world’s leading telecommunications service providers. The company offers fixed and mobile connectivity services, as well as a wide range of digital services for individuals and businesses. It is present in Europe and Latin America, through its brands Movistar, VIVO and O2, among others, where it has more than 347 million customers. Telefónica is a fully private company whose shares are listed on the Continuous Market of the Spanish stock exchanges and on the New York and Lima stock exchanges.

About Telefónica Global Solutions

Telefónica Global Solutions manages the international Wholesale, Global Roaming, Multinationals and USA businesses within the Telefónica Group. It delivers world-class global services and platforms to multinational companies, wholesale, fixed and mobile carriers, OTTs, service providers and aggregators. Offering a global footprint. TGS provides its customers with high quality connectivity, digital platforms and a wide range of innovative solutions with an integrated service portfolio which includes Voice & UCC, Networking, Mobile, Satellite, Cloud, Security and IoT & Big Data.

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

 # # #

NEWARK, NJ, Aug. 10, 2021 — IDT Corporation (NYSE: IDT), a global provider of communications and payment services, today announced a partnership with professional soccer player Jonathan Mensah. Jonathan is a renowned defender and team captain for Major League Soccer’s (MLS) Columbus Crew. He has twice represented Ghana on its national team in the World Cup and is a beloved figure in the sport.

Through the partnership, Jonathan will support IDT’s BOSS Revolution brand — including its international money transfer, voice calling and mobile top-up services — as spokesperson and ambassador in its advertising campaigns. He will be featured across broadcast, print, and digital media, and will endorse BOSS Revolution across his digital fanbase.

Because of his personal experiences as both an immigrant to the United States from Ghana and as a long-time BOSS Revolution customer, Jonathan is ideally suited to connect with members of immigrant communities throughout the U.S. including those from Africa and those who share his love of soccer.

“I’m proud to use my voice to help spread awareness of BOSS Revolution,” Jonathan Mensah said. “Like many others, my family remains connected thanks to BOSS Revolution. My family and I trust BOSS Revolution’s voice calling, money transfer and mobile-top up services to help us stay close across borders and oceans, no matter where we are.”

Jonathan’s path to the Columbus Crew highlights the opportunities the United States offers immigrants from all over the globe. Jonathan grew up in Accra, Ghana and learned to play soccer on sand fields while his father worked in the mines. He dreamed of becoming a professional soccer player and played for teams all around the world before joining the Columbus Crew in 2017.

“We are proud to welcome Jonathan to the BOSS Revolution family. His selection as the Crew’s captain and his charitable work helping underprivileged youth in his native Ghana speak to his outstanding character and concern for others,” said Shmuel Jonas, CEO of IDT. “Jonathan’s personal story is uniquely powerful, but it has much in common with other immigrants to the U.S. including their dedication, hard work and desire to attain a better life here while staying close to family and friends back home.”

“Our flagship BOSS Revolution offerings primarily serve immigrant communities,” Mr. Jonas added. “Jonathan’s personal experience using BOSS Revolution to stay in touch with his family enables him to speak from the heart about the value of our services to immigrant families.”

About IDT Corporation:

IDT Corporation (NYSE: IDT) is a global provider of fintech, cloud communications and traditional communications services. We make it easier for families to connect, support and share across international borders. We also enable businesses to transact and communicate with their customers with enhanced intelligence and insight.

Our BOSS Revolution branded money transfer, mobile top-up and 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 unified communications as a service solution provides businesses with intelligently integrated cloud communications and collaboration solutions across channels and devices. Our IDT Carrier Services and IDT Express wholesale offerings enable communications companies to provision and manage international voice and SMS services.

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

# # #

Partnership will enable brand marketers to craft high-impact campaigns for C-store customers utilizing an intelligently integrated suite of coupons, retail display advertising, and transactional data

NEWARK, NJ, June 09, 2021 — National Retail Solutions (NRS), a subsidiary of IDT Corporation (NYSE: IDT) and operator of the leading nationwide point-of-sale (POS) network for independent convenience and liquor stores, today announced the expansion of its partnership with Koupon, a leading provider of shopper engagement services, to significantly extend the reach of consumer packaged goods (CPG) brands through independent C-stores.

NRS and Koupon previously partnered to enable the 2+ million members of IDT’s popular BR Club shopper loyalty program to receive and use digital coupons. Our expanded partnership integrates these promotions with NRS’ digital and in-store displays and provides CPG brands and their agencies with access to actionable data analytics.

“We are excited to offer Koupon’s CPG clients a robust, integrated suite of advertising and data offerings,” said Eli Korn, Chief Operating Officer of NRS. “In-store coupons and promotions are significantly more effective when complemented by ads displayed on NRS’ customer-facing digital screens that are viewed by over 60 million eyeballs every month. Moreover, our actionable analytics platform provides CPG brands with unprecedented visibility into the impact of their promotions.”

“The BR Club loyalty program has long allowed Koupon to deliver value to consumers at independent retailers across the US at scale,” said Brad Van Otterloo, CEO of Koupon. “Now, by adding NRS as an advertising and data partner, we can expand our media program to further increase awareness of our CPG offers while remaining highly targeted to C-store consumers.”

The fast-growing NRS network now comprises over 14,000 POS terminals operated by independent retailers nationwide. The network terminals integrate software and hardware to provide services that help independent retailers compete more effectively with large retail chains. The NRS platform also expands CPG brands’ visibility and reach into key consumer segments.

“Our expanded partnership with Koupon is a revolutionary way for CPG brands to appeal to urban shoppers,” said Jacob Jonas, VP, Innovation for NRS. “These consumers are traditionally difficult for CPGs to reach because the independent retailers who serve them lack the technology to offer the same integrated promotions that chain stores routinely provide. We make it possible for CPGs to operate more effectively in this formerly opaque retail segment.”

About NRS

National Retail Solutions (NRS) is the leading point of sale (POS) provider for independently owned retailers, including convenience and liquor stores. Over 14,000 stores nationwide actively use NRS terminals to process over 58 million transactions per month. NRS offers CPG clients the ability to reach shoppers in independently owned stores via promotional offers and digital out-of-home advertising on the POS’ high definition, customer-facing checkout screen. Through the POS hardware and software bundle and associated retail services including NRS Pay, NRS empowers independent retailers to modernize and compete more effectively. To learn more, please visit nrsplus.com. NRS is a subsidiary of IDT Corporation (NYSE: IDT).

About BR Club

‘BR Club’ is the official loyalty program for customers of IDT Corporation’s (NYSE: IDT) Boss Revolution branded offerings and shoppers at stores that have NRS POS terminals. The program currently has over 2 Million members. BR Club members are offered monthly digital coupons at NRS retailers, discounts on Boss Revolution’s payments and international calling services, and discounts on travel, dining and more at BRClubsaves.com.

About Koupon

Koupon provides c-store retailers and brands with the easiest way to connect and engage with shoppers to grow sales. Koupon works with brands to easily deploy personalized, channel-wide promotions, and helps retailers to secure additional brand trade spending and grow shopper engagement. Members of the Koupon Network – the leading c-store collaborative with 30 of the top 50 C-store retailers and over 70 brands – realize the benefit from Koupon’s unmatched channel reach, proprietary technology and data, and campaign management services. Since its founding in 2011, Koupon has delivered over 4 billion offers. To learn more, please visit kouponmedia.com.

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

NEWARK, NJ, June 07, 2021 — IDT Corporation (NYSE: IDT), a global provider of fintech, unified cloud communications and traditional communications services, will present at the 2021 LD Micro Invitational virtual investor conference to update investors on recent results and management’s strategy and outlook.

The IDT presentation will be webcast on Tuesday, June 8^th at 1:30 PM ET. To register to watch the webcast or view the recording afterwards, visit the LD Micro Invitational website (https://ldmicrojune2021.mysequire.com/). Access to all conference presentations is free of charge.

 IDT will post its presentation slides on the investor pages of its website beginning at the time of the webcast.

 The 2021 LD Micro Invitational will be held on the Sequire Virtual Events platform on Tuesday, June 8th through Thursday, June 10th, 2021. The program runs from 10:00 AM ET – 6:00 PM ET each day. The conference is expected to feature approximately180 companies presenting for 25 minutes each.

 About IDT Corporation:

IDT Corporation (NYSE: IDT) is a global provider of fintech, unified cloud communications and traditional communications services. We make it easier for families to connect, support and share across international borders. We also enable businesses to transact and communicate with their customers with enhanced intelligence and insight.

Our BOSS Revolution branded money transfer and 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 unified communications as a service solution provides businesses with intelligently integrated cloud communications and collaboration solutions across channels and devices. Our IDT Carrier Services and IDT Express wholesale offerings enable communications companies to provision and manage international voice and SMS services.

Contact:

Bill Ulrey

IDT Investor Relations

Phone: (973) 438-3838

E-mail: invest@idt.net

# # #

NEWARK, NJ, June 03, 2021 — IDT Corporation (NYSE: IDT) reported net income per diluted share of $1.39 and Non-GAAP income per diluted share* of $0.47 on revenue of $374 million for the third quarter of FY 2021, the three months ended April 30, 2021.

3Q21 HIGHLIGHTS

(Results are for 3Q21 and are compared to 3Q20)

REMARKS BY SHMUEL JONAS, CEO

“IDT continued to deliver strong results reflecting the sustained execution on our strategic priorities and the robust operating performances of our businesses. As a result, our top and bottom lines increased appreciably compared to the year ago and prior quarters – even excluding the positive impacts of the reversal of income tax valuation allowances and gains on investments.

“Our high growth, high margin businesses once again performed extremely well. net2phone recorded subscription revenue growth of 39% year over year. On our development roadmap, we continued to focus on API third party integrations. net2phone now offers integrations with Salesforce, Zoho, PurpleCloud, Slack, Zapier and Microsoft Teams, among others. Our growing integration toolkit enhances our access to new segments across both domestic and international markets.

“NRS accelerated its impressive revenue growth increasing revenue by over 120% year over year led by payment processing services and digital advertising services.

“Our BOSS Revolution International Money Transfer business remains strong, with 63% revenue growth year over year after excluding the significant, positive impacts of the transient FX opportunities we successfully pursued during the year ago quarter, but which finally and completely ceased in the second quarter.

“In our traditional communications segment, revenue jumped by $35.4 million compared to the previous quarter, underscoring the vigor of these offerings for cash generation over the long term.”

CONSOLIDATED RESULTS

* Throughout this release, Adjusted EBITDA, Non-GAAP net income and Non-GAAP earnings per diluted 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 at the end of this release for an explanation of these terms and their respective reconciliations to the most directly comparable GAAP measure.

** Revenue-less-direct-cost-of-revenue as a percentage of revenue and Adjusted EBITDA less CAPEX are key performance metrics. Please refer to the Explanation of Key Performance Metrics at the end of this release for an explanation of these metrics.

RESULTS BY SEGMENT

(Results are for 3Q21 and are compared to 3Q20 except where otherwise noted)

Fintech

Fintech comprises National Retail Solutions (NRS), an operator of a nationwide Point-Of-Sale (POS) retail network providing payment processing, digital advertising, transaction data and ancillary services, and BOSS Revolution Money Transfer, a provider of international money remittances.

The Fintech segment accounted for 4.5% and 4.6% of IDT's consolidated revenue and 14.5% and 15.4% of IDT's consolidated revenue-less-direct-cost-of-revenue in 3Q21 and 3Q20, respectively.

Fintech Takeaways:

net2phone-UCaaS

The net2phone-UCaaS segment accounted for 3.0% and 2.5% of IDT's consolidated revenue and 12.7% and 10.4% of IDT's consolidated revenue-less-direct-cost-of-revenue in 3Q21 and 3Q20, respectively.

net2phone-UCaaS Takeaways:

Traditional Communications

The Traditional Communications segment accounted for 92.5% and 92.9% of IDT's consolidated revenue and 72.8% and 74.2% of IDT's consolidated revenue-less-direct-cost-of-revenue in 3Q21 and 3Q20, respectively.

Traditional Communications Takeaways:

NOTES ON FINANCIAL STATEMENTS

Consolidated results for all periods presented include corporate overhead. Corporate G&A expense decreased to $1.7 million in 3Q21 from $2.3 million in 3Q20.

As of April 30, 2021, IDT held $127.6 million in unrestricted cash, cash equivalents, debt securities and unrestricted current equity investments, with no debt. Current assets totaled $354.0 million and current liabilities totaled $327.3 million.

Net cash provided by operating activities during 3Q21 was $12.5 million compared to net cash used in operating activities of $47.4 million during 3Q20. Exclusive of changes in customer deposit balances at our Gibraltar-based bank, net cash provided by operating activities during 3Q21 was unchanged at $12.5 million, compared to net cash used in operating activities of $0.7 million in 3Q20.

Capital expenditures were $4.6 million in 3Q21 compared to $4.2 million in 3Q20.

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 and strategy followed by Q&A with investors.

To listen to the call and participate in the Q&A, dial toll-free 1-888-348-8417 (from US) or 1-412-902-4243 (international) and request the IDT Corporation call.

A replay of the conference call will be available approximately three hours after the call concludes through June 10, 2021. To access the call replay, dial toll free 1-844-512-2921 (from US) or 1-412-317-6671 (international) and provide this replay number: 10156947. A 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, unified cloud communications and traditional communications services. We make it easier for families to connect, support and share across international borders. We also enable businesses to transact and communicate with their customers with enhanced intelligence and insight.

Our BOSS Revolution branded money transfer and 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 unified communications as a service solution provides businesses with intelligently integrated cloud communications and collaboration solutions across channels and devices. Our IDT Carrier Services and IDT Express wholesale offerings enable communications companies to provision and manage international voice and SMS services.

All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate,” “target” and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks, and should be consulted along with this release. To the extent permitted under applicable law, IDT assumes no obligation to update any forward-looking statements.

CONTACT:

IDT Corporation Investor Relations
Bill Ulrey
william.ulrey@idt.net
973-438-3838

IDT CORPORATION

CONSOLIDATED BALANCE SHEETS

IDT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

IDT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Reconciliation of Non-GAAP Financial Measures for the
Third Quarter Fiscal 2021 and 2020

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 3Q21, 2Q21, and 3Q20, Adjusted EBITDA, non-GAAP net income, and non-GAAP earnings per diluted share, all of which are non-GAAP measures. Generally, a non-GAAP financial 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 starts with net income (loss) in accordance with GAAP and adds severance expense, stock-based compensation, and other operating expense, and deducts the release of valuation allowance on deferred tax assets and other operating gains.

IDT's measure of non-GAAP earnings per diluted share is calculated by dividing non-GAAP net income by the diluted weighted-average shares.

These additions and subtractions are non-cash and/or non-routine items in the relevant fiscal 2021 and fiscal 2020 periods.

Management believes that IDT's Adjusted EBITDA, non-GAAP net income, and non-GAAP earnings per diluted 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, and non-GAAP earnings per diluted 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, and non-GAAP earnings per diluted 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 gain (expense), 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 earnings per diluted share. Other operating gain (expense), net includes a gain from the sale of IDT's rights under a class action lawsuit, expense for the indemnification of a net2phone cable telephony customer related to patent infringement claims brought against the customer, legal fees net of insurance claims related to Straight Path Communications Inc.'s stockholders' putative class action and derivative complaint, and expense for other legal matters. From time-to-time, IDT may have gains or incur costs related to non-routine legal and tax 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 and non-GAAP earnings per diluted 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.

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 is excluded from IDT's non-GAAP net income and non-GAAP EPS because it only indirectly related to the current results of IDT's core operations.

Adjusted EBITDA, non-GAAP net income, and non-GAAP earnings per diluted 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, and non-GAAP earnings per diluted share 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 earnings per diluted 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 for IDT on a consolidated basis, (b) for non-GAAP net income, net income, and (c) for non-GAAP earnings per diluted share, diluted earnings per share.

IDT Corporation
Reconciliation of Adjusted EBITDA to Net Income
(unaudited) in millions. Figures may not foot or cross-foot due to rounding to millions

IDT Corporation
Reconciliation of Adjusted EBITDA to Net Income
(unaudited) in millions. Figures may not foot or cross-foot due to rounding to millions.

IDT Corporation
Reconciliations of Net Income to Non-GAAP Net Income and Earnings per share to Non-GAAP Earnings per diluted share
(unaudited) in millions, except per share data. Figures may not foot due to rounding to millions.

Explanation of Key Performance Metrics

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 are 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.

# # #

NEWARK, N.J., May 24, 2021 – 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 fiscal year 2021 (the three months ended April 30^th) on Thursday, June 3, 2021.

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 toll-free 1-888-348-8417 (from US) or 1-412-902-4243 (international) and request the IDT Corporation call.

A replay of the conference call will be available approximately three hours after the call concludes through June 10, 2021. To access the call replay, dial toll free 1-844-512-2921 (from US) or 1-412-317-6671 (international) and provide this replay number: 10156947.  A 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 easier for families to connect, support and share across international borders. We also enable businesses to transact and communicate with their customers with enhanced intelligence and insight.

Our BOSS Revolution branded money transfer and 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 unified communications as a service solution provides businesses with intelligently integrated cloud communications and collaboration solutions across channels and devices. Our IDT Carrier Services and IDT Express wholesale offerings enable communications companies to provision and manage international voice and SMS services.

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SOURCE IDT Corporation

NEWARK, N.J., April 12, 2021 — BOSS Revolution, the flagship consumer brand of IDT Corporation (NYSE: IDT), announced today that it has re-launched its nationwide mobile phone service as BOSS Wireless.  BOSS Wireless now runs on T-Mobile’s extensive 5G and nationwide 4G LTE network for superior coverage and reliability.

All BOSS Wireless plans feature unlimited calling within the U.S., including Puerto Rico, and to 65 popular international destinations including Mexico, Canada, Brazil, Argentina, Spain and the U.K.  Calls to 75 other global destinations are discounted below BOSS Revolution’s already low rates.  Unlimited domestic and international texting is included.

BOSS Wireless customers can also make unlimited free app-to-app calls over Wi-Fi with the BOSS Revolution Calling app. 

With plans starting at $10/month including taxes and fees, BOSS Revolution offers an affordable plan for every budget:

• $10/month plan – 100 MB of high-speed data
• $20/month plan – 1 GB of high-speed data
• $30/month plan – 5 GB of high-speed data
• $40/month plan – 15 GB of high-speed data
• $50/month plan – 50 GB of high-speed data

“BOSS Revolution has always provided tremendous value for those who talk to friends and family around the world,” said Gabi Schecter, EVP of IDT Telecom.  “Now, with BOSS Wireless, you can enjoy big savings on your mobile service while experiencing the reliability and speed of T-Mobile’s network featuring the most extensive 5G service in the country.”

The BOSS Wireless service and SIM chips are available at bosswireless.com and at select BOSS Revolution retail stores in the Northeastern U.S. 

ABOUT IDT:
IDT Corporation (NYSE: IDT) is a global provider of fintech, cloud communications and traditional communications services.  We make it easier for families to connect, support and share across international borders. We also enable businesses to transact and communicate with their customers with enhanced intelligence and insight.

Our BOSS Revolution branded money transfer and 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 unified communications as a service solution provides businesses with intelligently integrated cloud communications and collaboration solutions across channels and devices. Our IDT Carrier Services and IDT Express wholesale offerings enable communications companies to provision and manage international voice and SMS services.

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SOURCE IDT Corporation

NEWARK, N.J., April 6, 2021 – net2phone, a global provider of unified cloud communications solutions for businesses, today announced it has launched net2phone for Salesforce on Salesforce AppExchange, empowering customers through data-driven conversations with leads and prospects within the Salesforce environment.

Within the Salesforce environment, net2phone for Salesforce:

• Provides click-to-call — enables outbound calls with just a click
• Automatically populates inbound calls with customer information and account record details
• Enables everyone in the organization to access updated contact status and build accurate metrics based on rich call records
• Empowers customization of user profiles and softphone so that each individual sees the most important specifics based around their particular role.

Built on the Salesforce Platform, net2phone for Salesforce is currently available on AppExchange at appexchange.salesforce.com/appxListingDetail?listingId=a0N3u00000OMzDpEAL

Net2phone for Salesforce
The net2phone integration for Salesforce enhances the quality of customer interactions and call efficiency within the Salesforce environment. The integration acts as a Salesforce multiplier, extending the reach of Salesforce to facilitate data-driven voice communications.

net2phone for Salesforce is available in the US and Canada, Argentina, Brazil, Chile, Colombia, Mexico and Peru. It provides unlimited calling to over forty destination countries, live chat, call recording, webRTC, mobile apps and a myriad of intelligently delivered communications capabilities including advanced management analytics.

Comments on the News

• “With our Salesforce integration, we’ve effectively made intelligent, data-driven voice communications an inherent feature,” said Jonah Fink, President of net2phone. “It’s an important step in our drive to bring voice communications back to the center of business communications.”
• “net2phone for Salesforce is a welcome addition to AppExchange, as net2phone powers digital transformation for customers by integrating data-powered voice calling with Salesforce,” said Woodson Martin, GM of Salesforce AppExchange. “AppExchange is constantly evolving to enable our partners to build cutting-edge solutions to drive customer success.”

About Salesforce AppExchange
Salesforce AppExchange, the world’s leading enterprise cloud marketplace, empowers companies to sell, service, market and engage in entirely new ways. With more than 6,000 listings, 9 million customer installs and 98,000 peer reviews, it is the most comprehensive source of cloud, mobile, social, IoT, analytics and artificial intelligence technologies for businesses.  

Salesforce, AppExchange and others are among the trademarks of salesforce.com, inc.

Additional Resources

• Like Salesforce on Facebook: http://www.facebook.com/salesforce 
• Follow Salesforce on Twitter: https://twitter.com/salesforce
• Become a fan of net2phone: https://www.facebook.com/Net2Phone
• Follow net2phone on Twitter: https://twitter.com/net2phone

About net2phone:
net2phone’s cloud business communications solutions help businesses around the globe succeed through smarter conversations. net2phone is a subsidiary of IDT Corporation (NYSE: IDT), a provider of telecommunications and payment services.  To learn more, please visit net2phone.com, connect with us on LinkedIn.  Channel partners contact: partner@net2phone.com.  Customer contact: sales@net2phone.com.

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SOURCE net2phone

NEWARK, N.J., March 4, 2021 – IDT Corporation (NYSE: IDT) reported net income per diluted share of $0.51 and Non-GAAP earnings per diluted share* of $0.49 on revenue of $340 million for the second quarter of FY 2021, the three months ended January 31, 2021.

2Q21 HIGHLIGHTS 
(Results are for 2Q21 and are compared to 2Q20)

• Consolidated revenue increased 5% to $340 million from $324 million.
• Consolidated revenue-less-direct-cost-of-revenue increased 15% to $71 million from $61 million, the sixth consecutive quarter of year-over-year increases.
• National Retail Solutions (NRS), BOSS Revolution Money Transfer, and net2phone-UCaaS subscription revenues increased by 151%, 73% and 36%, respectively.
• The Fintech and net2phone-UCaaS segments contributed 30% of the consolidated revenue-less-direct-cost-of-revenue, compared to 19% in the year ago quarter.
• Consolidated income from operations increased to $12.9 million from $1.3 million.
• Adjusted EBITDA* increased to $16.3 million from $7.4 million, and Adjusted EBITDA* less capital expenditures** increased to $12.0 million from $3.6 million.
• Earnings per diluted share increased to $0.51 from $0.04. Non-GAAP earnings per diluted share* was $0.49 compared to $0.11.

REMARKS BY SHMUEL JONAS, CEO

“IDT delivered another strong quarter, including significant year-over-year increases in consolidated revenue, income from operations and EPS.

“The quarter’s results were highlighted by year-over-year revenue expansion from our three higher margin businesses: National Retail Solutions (NRS), BOSS Revolution Money Transfer and net2phone-UCaaS.  NRS increased revenue year-over-year by over 150% powered by sales of its payment processing services and digital out-of-home advertising offerings.  Money Transfer revenue posted a 73% year-over-year increase, and subscription revenue for net2phone-UCaaS’ service climbed 36% with solid growth across all regions.”

CONSOLIDATED RESULTS 

RESULTS BY SEGMENT
(Results are for 2Q21 and are compared to 2Q20 except where otherwise noted)

Fintech

Fintech comprises BOSS Revolution Money Transfer, a provider of international money remittances and National Retail Solutions (NRS), an operator of a nationwide point-of-sale retail network providing payment processing, digital advertising, transaction data and ancillary services.

The Fintech segment accounted for 5.4% and 3.0% of IDT’s consolidated revenue and 17.0% and 8.7% of IDT’s consolidated revenue-less-direct-cost-of-revenue in 2Q21 and 2Q20, respectively.

Fintech Takeaways:

• National Retail Solutions (NRS) revenue increased 151% to $5.2 million from $2.1 million, driven by increased sales of payment processing services and digital-out-of-home (DOOH) advertising offerings.
• NRS deployed 1,300 billable POS terminals during the quarter, increasing its network to 13,700 terminals, and had 3,800 active payment processing merchant accounts at January 31, 2021.
• BOSS Revolution Money Transfer revenue increased 73% to $13.3 million from $7.7 million, driven primarily by increased transaction volume. Money Transfer’s top and bottom-line results also reflect a diminished benefit from the transient FX market conditions that positively impacted results over the past four quarters but by and large dissipated at the end of 2Q21.
• Money Transfer transactions increased 46% to 1.8 million from 1.3 million in 2Q20.

net2phone-UCaaS

The net2phone-UCaaS segment accounted for 3.2% and 2.4% of IDT’s consolidated revenue and 12.5% and 10.3% of IDT’s consolidated revenue-less-direct-cost-of-revenue in 2Q21 and 2Q20, respectively.

net2phone-UCaaS Takeaway:

• Subscription revenue increased 36% to $10.1 million from $7.4 million, led by growth in the U.S. market. Sequentially, the rate of revenue growth was strongest in net2phone’s South American markets as sales in that region continued to recover from a COVID-19-related slow down.

Traditional Communications

The Traditional Communications segment accounted for 91.4% and 94.6% of IDT’s consolidated revenue and 70.5% and 81.0% of IDT’s consolidated revenue-less-direct-cost-of-revenue i
n 2Q21 and 2Q20, respectively.

Traditional Communications Takeaways:

• BOSS Revolution Calling revenue was substantially unchanged at $114 million. Minutes of use decreased by 6% offset by a corresponding increase in revenue per minute.
• Mobile Top-Up revenue increased 27% to $97 million from $76 million. The increase was driven by the addition of new mobile partners and increasing demand for data-centric top-up bundles.
• Carrier Services revenue decreased 14% to $87 million from $102 million. The decrease reflects the continued, industry-wide decline of international voice calling, accelerated by the rise of over the top and video conferencing particularly among corporate users who have transitioned to work from home.
• Other revenue decreased 13% to $13 million from $15 million. Many of the offerings within this vertical are in harvest mode.

NOTES ON FINANCIAL STATEMENTS

Consolidated results for all periods presented include corporate overhead.  Corporate G&A expense decreased to $2.0 million in 2Q21 from $2.3 million in 2Q20.

As of January 31, 2021, IDT held $125.3 million in unrestricted cash, cash equivalents, debt securities and current equity investments, with no debt.  Current assets totaled $341.4 million and current liabilities totaled $326.3 million.

Net cash provided by operating activities during 2Q21 was $6.8 million, compared to net cash used in operating activities of $18.3 million in the year ago quarter.  Exclusive of changes in customer deposit balances at our Gibraltar-based bank, net cash provided by operating activities during 2Q21 was $17.4 million, compared to $4.1 million in 2Q20.

Capital expenditures were $4.3 million in 2Q21 compared to $3.8 million in 2Q20. 

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 and strategy followed by Q&A with investors. 

To listen to the call and participate in the Q&A, dial toll-free 1-888-348-8417 (from U.S.) or 1-412-902-4243 (international) and request the IDT Corporation call.

A replay of the conference call will be available approximately three hours after the call concludes through March 11, 2021. To access the call replay, dial toll free 1-844-512-2921 (from U.S.) or 1-412-317-6671 (international) and provide this replay number: 10151915.  A replay will also be accessible via streaming audio at the IDT investor relations website.

ABOUT IDT:

IDT Corporation (NYSE: IDT) is a global provider of fintech, cloud communications and traditional communications services.  We make it easier for families to connect, support and share across international borders. We also enable businesses to transact and communicate with their customers with enhanced intelligence and insight.

Our BOSS Revolution branded money transfer and 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 unified communications as a service solution provides businesses with intelligently integrated cloud communications and collaboration solutions across channels and devices. Our IDT Carrier Services and IDT Express wholesale offerings enable communications companies 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.

Reconciliation of Non-GAAP Financial Measures for the
Second Quarter Fiscal 2021 and 2020

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 2Q21, 1Q21, and 2Q20, Adjusted EBITDA, non-GAAP net income, and non-GAAP earnings per diluted share, all of which are non-GAAP measures. Generally, a non-GAAP financial 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 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. 

IDT’s measure of non-GAAP earnings per diluted share is calculated by dividing non-GAAP net income by the diluted weighted-average shares.

These additions and subtractions are non-cash and/or non-routine items in the relevant fiscal 2021 and fiscal 2020 periods.

Management believes that IDT’s Adjusted EBITDA, non-GAAP net income, and non-GAAP earnings per diluted 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, and non-GAAP earnings per diluted 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 depreciatio
n 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 earnings per diluted 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 gain (expense), 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 earnings per diluted share. Other operating gain (expense), net includes a gain from the sale of IDT’s rights under a class action lawsuit, expense for the indemnification of a net2phone cable telephony customer related to patent infringement claims brought against the customer, legal fees related to Straight Path Communications Inc.’s stockholders’ putative class action and derivative complaint, expense for other legal matters, and the write-off of certain assets. From time-to-time, IDT may have gains or incur costs related to non-routine legal and tax matters, and write-off assets, 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 and non-GAAP earnings per diluted 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, and non-GAAP earnings per diluted 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, and non-GAAP earnings per diluted share 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 earnings per diluted 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, net income (loss), and (c) for non-GAAP earnings per diluted share, diluted earnings per share.

Explanation of Key Performance Metrics

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 are 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.

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SOURCE IDT Corporation