Low Fees, Favorable Exchange Rates, and Outstanding Customer Service Provide Foundation for Enduring Growth

Newark, NJ, Dec. 29, 2023 — BOSS Money, the money transfer service of IDT Corporation (NYSE: IDT), today announced that its international money remittance business increased revenue by 56% during the eleven days up to and including Christmas Day 2023 compared to the same period a year earlier.

“Throughout 2023, our low fees and favorable exchange rates in combination with the terrific user experience our customers enjoy on the BOSS Money apps and through our retailers helped to drive our growth at rates well above the industry’s average,” said Bill Pereira, IDT’s Chief Operating Officer. “This Christmas season we achieved exceptional revenue increases with terrific holiday promotions and expect to continue to deliver revenue and transaction year-over-year growth rates over 30% in the coming months.”

BOSS Money revenue increased by 56% from December 15^th through the 25^th compared to the same period a year earlier. During the same period, transaction volumes increased by 39%. The elevated revenue increase compared to the transaction volume increase largely reflected modifications to BOSS Money’s seasonal promotion strategies.

BOSS Money’s international remittance service provides affordable, reliable remittances for residents of the U.S. and Canada to 48 countries including popular destinations in Latin America, the Caribbean, and Africa. The disbursement network in these markets includes over 243,000 cash pick-up locations in addition to mobile money, in-country bank account, and debit card direct deposit services.

“Our popular BOSS Money or BOSS Revolution Calling apps and the bossrevolution.com website provide a terrific user experience,” Pereira added. “At the New Year or anytime, BOSS Money lets you send cash to friends and family around the world with speed, security, and great customer service in just a few easy taps. So go ahead and make a smart New Year’s resolution – join the growing family of satisfied Boss Money customers.”

First-time BOSS Money customers pay no fees on their first money transfer of up to $2,999. The highly rated BOSS apps are free on the App Store and on Google Play.

Customers can also remit funds through licensed Boss Revolution retailers across the United States.

ABOUT IDT CORPORATION

IDT Corporation (NYSE: IDT) is a global provider of fintech and communications services through a portfolio of synergistic businesses: National Retail Solutions (NRS), through its point-of-sale (POS) platform, enables independent retailers to operate more effectively while providing advertisers and marketers with unprecedented reach into underserved consumer markets; net2phone provides enterprises and organizations with intelligently integrated cloud communications and contact center services across channels and devices; IDT’s fintech and neo-banking services include BOSS Money, a popular international remittance business, as well as other services that make saving, spending, and sharing money easy and secure; IDT Digital Payments and BOSS Revolution Calling make sharing prepaid products and services and speaking with friends and family around the world convenient and reliable; and, IDT Global and IDT Express enable communications services to provision and manage international voice and SMS messaging.

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

# # #

Same-store sales at NRS retailers during November increased 3.1% compared to November 2022

Compared to October 2023, same-store-sales per calendar day decreased 1.2%

NEWARK, N.J., Dec. 08, 2023 — NRSInsights, a provider of sales data and analytics drawn from retail transactions processed through the National Retail Solutions (NRS) point-of-sale (POS) platform, today announced comparative same-store sales results for November 2023.

As of November 30, 2023, the NRS retail network comprised approximately 27,600 active terminals scanning purchases at independent retailers including bodegas, convenience stores, liquor stores, grocers, and tobacco and sundries sellers nationwide, predominantly serving urban consumers.

Retail Same-Store Sales Highlights

• Same-store sales in November 2023 increased 3.1% from a year earlier (November 2022). Average sales per calendar day for November 2023 decreased 1.2% compared to the preceding month (October 2023).
• Same-store sales in the preceding month (October 2023) had increased 3.2% compared to the year-ago month (October 2022). Average sales per calendar day in October 2023 had decreased 2.1% compared to the preceding month (September 2023).
• For the three months ended November 30, 2023, same-store sales increased 3.7% compared to the same three months in 2022.
• The number of items sold during November 2023 increased 4.7% compared to November 2022 but decreased 2.0% compared to October 2023 on a per calendar day basis.
• The average number of transactions per store in November 2023 increased 2.1% compared to November 2022. The average number of transactions per calendar day in November 2023 decreased 3.9% compared to October 2023.
• A dollar-weighted average of prices for the top 500 items purchased in November 2023 increased 3.9% year-over-year, an increase from the 1.6% year-over-year increase recorded in October 2023.

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

“November same-store sales at retailers utilizing our POS platform increased 3.1% year-over-year but decreased 1.2% on a per-day basis compared to October. Until this month, inflationary pressures had moderated significantly. However, prices on the top 500 items sold increased 3.9% in November 2023 compared to November 2022 on a weighted dollar sales basis. In October, the year-over-year increase was just 1.6%.

“Same-store sales for NRS retailers on Black Friday and Small Business Saturday 2023 increased by 3.9% compared to the same days in 2022. Nevertheless, sales on these two days decreased by approximately 13% from the average level of the other Fridays and Saturdays in November. It is counter-intuitive for sales to decrease on these two dedicated shopping days, but it fits with a consistent pattern we have observed over the years as some of our retailer’s regular customers go out of town for the Thanksgiving holiday or are busy hosting family and friends.

“The rates of NRS retailers’ three-month rolling year-over-year same-store sales growth have decreased steadily during the second half of this year, even as the comparable U.S. Commerce Department data shows steady increases in the rates of year-over-year same-store sales growth. Nevertheless, NRS retailers continue to outperform the broader retail market as reflected in the U.S. Commerce data.”

Retail Trade Comparative Data

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

Over the past eleven months, the NRS network’s three-month moving average same-store sales have outpaced the US Commerce Department’s Advance Monthly Retail Trade data excluding food services by 3.7 percentage points, on average.

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

NRSInsights Reports

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

Same-store data comparisons of November 2023 with November 2022 are derived from approximately 153 million transactions processed through the 15,862 stores on the NRS network that scanned transactions in both months. Same-store data comparisons of November 2023 with October 2023 are derived from approximately 210 million transactions processed through 23,075 stores.

Same-store data comparisons for the three months ended November 30, 2023 with the year-ago three months are derived from approximately 456 million scanned transactions processed through the stores that were in the NRS network in both quarters.

NRS POS Network

The NRS network comprises approximately 27,600 active POS terminals operating in approximately 24,000 independent retail stores. Its platform predominantly serves small-format, independent, retail stores including convenience stores, bodegas, liquor stores, grocers, and tobacco and sundries sellers. The network includes retailers in all 50 states and in 197 of the 210 designated market areas (DMAs) in the U.S. Over the past twelve months, NRS’ POS terminals have processed $16.9 billion in sales through approximately 1.20 billion transactions.

About National Retail Solutions (NRS):

National Retail Solutions operates the largest point-of-sale (POS) terminal-based platform and digital payment processing service for independent retailers nationwide. Retailers utilize NRS offerings to process transactions and effectively manage their businesses. Consumer packaged goods (CPG) suppliers, brokers, analytics firms and advertisers access the terminal’s digital display network to reach these retailers’ predominantly urban, multi-cultural shopper base, and to harness transaction data-based learnings to identify growth opportunities and measure execution and returns on marketing investment. NRS is a subsidiary of IDT Corporation (NYSE: IDT).

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

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

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

# # #

Attachment

• National Retail Solutions

BOSS Money revenue increased 38% to $24.2 million

NRS’ recurring revenue^* increased 25% to $22.4 million

net2phone subscription revenue^* increased 19% to $18.5 million

NEWARK, NJ, Dec. 04, 2023 — IDT Corporation (NYSE: IDT), a global provider of fintech, cloud communications, and traditional communications services, today reported results for the first quarter of fiscal year 2024, the three months ended October 31, 2023.

HIGHLIGHTS

(Throughout this release, unless otherwise noted, results are for the first quarter of fiscal year 2024 (1Q24) and are compared to the first quarter of fiscal year 2023 (1Q23). All earnings per share (EPS) and other ‘per share’ results are per diluted share.)

• BOSS Money, the principal business in our Fintech segment, increased remittance volume by 41% to 4.05 million transactions during 1Q24 while revenue increased 38% to $24.2 million;
• National Retail Solutions (NRS) added approximately 1,500 net active point-of-sale (POS) terminals during 1Q24 to reach approximately 27,200 as of October 31^st. NRS recurring revenue^* increased 25% to $22.4 million;
• net2phone added approximately 12,000 net seats served during 1Q24 to reach approximately 364,000 as of October 31^st. Subscription revenue^* increased 19% to $18.5 million;
• Consolidated revenue decreased 6% to $301 million from $322 million;
• Consolidated gross profit^** increased 6% to a record high $94 million from $89 million, and the consolidated gross profit margin increased 370 basis points to 31.4% from 27.7%;
• Consolidated income from operations decreased 15% to $17.2 million from $20.2 million;
• Net income attributable to IDT decreased 30% to $7.7 million from $11.0 million;
• Consolidated Adjusted EBITDA^*** decreased 8% to $22.3 million from $24.3 million;
• EPS decreased to $0.30 from $0.43 and Non-GAAP EPS^*** decreased to $0.32 from $0.43;
• During 1Q24, IDT repurchased 125,470 shares of its Class B common stock for $2.8 million.

(See ‘Notes’ later in this release for supplemental information on asterisked metrics).

REMARKS BY SHMUEL JONAS, CEO

“Our three primary high-growth, high-margin businesses delivered strong revenue growth in the first quarter, while the businesses in our Traditional Communications segment performed as expected.

In the first quarter, the ongoing growth of BOSS Money, NRS, and net2phone drove a 370 basis point year-over-year increase in gross profit margin and record gross profit. They are steadily becoming more significant contributors to our top and bottom lines, while the cash generation of our paid-minute businesses has been relatively resilient.

“BOSS Money continued to grow at a rapid clip, helped by the accelerating expansion of our retail money transfer channel. Retail money transfer channel revenue increased by 55% year-over-year, while digital channel revenue – for transactions initiated on the BOSS Money and BOSS Revolution Calling apps – increased 31% year-over-year. We continue to improve the user experience for both retailer agents and digital customers, and we see that investment paying off in BOSS Money’s robust topline growth. Much of the investment we’ve made in money transfer to date is in the expectation that we are only in the early innings of our money transfer growth. As we continue to expand, we expect to capture more of the benefit of our growth in our bottom line profitability.

“NRS continued to expand its network and upgrade existing accounts, helping to drive strong increases in Merchant Services and SaaS Fee revenues, while Advertising & Data revenue increased sequentially propelled by seasonal tailwinds and the gradual recovery of advertising demand in the digital out-of-home advertising space – a trend which has accelerated since the quarter close. NRS’ income from operations was a record $5.5 million in the first quarter. We’re now in the process of introducing some of the new POS formats that I’ve mentioned previously, and I’m excited about their potential to help us drive long-term expansion.

“net2phone delivered steady sequential customer base and topline growth, while its unit economics are strengthening as the business scales and our higher ARPU, higher margin, CCaaS offerings gradually become a more significant part of the business. net2phone generated positive Adjusted EBITDA of $1.4 million and was near cash-flow positive. Now in the second quarter, our Beta rollout of net2phone AI is underway, and it has been very well received by customers. We are very optimistic that net2phone AI and net2phone’s forthcoming premium plans will help to drive meaningful ARPU and margin expansion.

“We’re working very hard to innovate exciting new offerings, features and functionalities- and not just in our growth businesses. At BOSS Revolution Calling, we’ve redesigned the look and feel of our popular calling app and added a bunch of new products and features. We have also introduced advertising placements into the app, and we have already begun to generate some nice revenue from it as a result. We also continue to focus on streamlining overhead and wringing significant costs out of our operations — especially in our Traditional Communications segment. This effort will help preserve the cash generation of our paid-minute businesses despite their continued, expected topline declines in the quarters ahead. It also will allow us to continue investing in innovative new products and promising initiatives in our existing growth businesses.

“We also returned value directly to our stockholders in the first quarter, repurchasing 125,470 shares of our Class B common stock for $2.8 million. Going forward, we will continue to purchase shares opportunistically.

“We are very well positioned as we head into the second quarter of our fiscal year 2024. To wrap up, I want to wish our employees, stockholders and their families a very joyous holiday season, and to thank each of you for everything you do for the IDT family.”

CONSOLIDATED RESULTS

IDT Consolidated Results ($ in millions, except gross profit margin and EPS)
			1	Q24			4	Q23			3	Q23			2	Q23			1	Q23			1Q24-1Q23 Variance
Revenue		$	301.2			$	303.8			$	299.3			$	313.9			$	321.8				(6.4		)%
Gross Profit		$	94.4			$	91.1			$	87.9			$	90.4			$	89.1				+5.9	%
Gross Profit Margin			31.4	%			30.0	%			29.4	%			28.8	%			27.7	%			+370 BP
SG&A		$	77.2			$	78.2			$	72.6			$	72.1			$	69.6				+10.9	%
Income from operations		$	17.2			$	12.0			$	10.4			$	18.2			$	20.2				(15.1		)%
Adjusted EBITDA		$	22.3			$	18.1			$	20.5			$	23.4			$	24.3				(8.5		)%
Net income attributable to IDT		$	7.7			$	8.0			$	6.9			$	14.6			$	11.0				(30.4		)%
EPS (diluted)		$	0.30			$	0.31			$	0.27			$	0.57			$	0.43			$	(0.13		)
Non-GAAP EPS (diluted)		$	0.32			$	0.36			$	0.46			$	0.62			$	0.43			$	(0.11		)

RESULTS BY SEGMENT

National Retail Solutions (NRS)

During 1Q24 and 1Q23, the NRS segment contributed 8.0% and 6.0% of IDT’s consolidated revenue, respectively.

National Retail Solutions (NRS) (Terminals and accounts at end of period. $ in millions, except for revenue per terminal)
			1	Q24			4	Q23			3	Q23			2	Q23			1	Q23			1Q24-1Q23 Variance
Terminals and payment processing accounts
Active POS terminals			27,200				25,700				23,900				22,400				20,800					+31	%
Payment processing accounts			17,100				15,800				14,100				12,500				11,300					+51	%
Recurring revenue
Merchant Services and other		$	11.4			$	10.3			$	8.7			$	7.4			$	6.4					+78	%
Advertising and Data		$	8.5			$	6.2			$	5.8			$	9.0			$	9.7					(13		)%
SaaS Fees		$	2.5			$	2.3			$	2.1			$	1.9			$	1.8					+42	%
Total recurring revenue		$	22.4			$	18.8			$	16.5			$	18.3			$	17.8					+25	%
POS Terminal Sales		$	1.6			$	1.1			$	1.6			$	1.5			$	1.5					+10	%
Total revenue		$	24.0			$	19.9			$	18.1			$	19.8			$	19.3					+24	%
Monthly average recurring revenue per terminal*		$	282			$	253			$	237			$	283			$	296					(5		)%
Gross profit		$	20.9			$	17.4			$	15.1			$	17.2			$	17.0					+23	%
SG&A		$	15.4			$	15.6			$	13.0			$	11.9			$	11.8					+31	%
Income from operations		$	5.5			$	1.7			$	2.1			$	5.4			$	5.2				+$	0.3
Adjusted EBITDA		$	6.2			$	2.4			$	2.7			$	6.0			$	5.7				+$	0.5

Take-Aways:

• During 1Q24, NRS added approximately 1,500 net active terminals to reach approximately 27,200 and added approximately 1,300 net payment processing accounts to reach approximately 17,100.
• The strong sequential increase in monthly average recurring revenue per terminal was driven primarily by the sequential increase in Advertising and Data revenue, which benefitted from seasonal tailwinds and strengthening digital out-of-home advertising demand.

net2phone

During 1Q24 and 1Q23, the net2phone segment contributed 6.6% and 5.3% of IDT’s consolidated revenue, respectively.

net2phone (Seats in thousands at end of period. $ in millions)
			1	Q24			4	Q23			3	Q23			2	Q23			1	Q23			1Q24-1Q23 Variance
Seats			364				352				340				327				309					+18	%
Revenue
Subscription revenue		$	18.5			$	17.9			$	17.1			$	16.3			$	15.5					+19	%
Other revenue		$	1.4			$	1.4			$	1.3			$	1.5			$	1.4					+2	%
Total Revenue		$	19.9			$	19.3			$	18.4			$	17.8			$	17.0					+18	%
Gross profit		$	16.1			$	15.5			$	14.8			$	14.2			$	13.6					+18	%
SG&A		$	16.1			$	16.1			$	15.2			$	14.8			$	14.7					+10	%
Loss from operations		$	–			$	(0.7	)		$	(0.4	)		$	(0.6	)		$	(1.1	)			+$	1.0
Adjusted EBITDA		$	1.4			$	0.9			$	1.0			$	0.8			$	0.3				+$	1.1

Take-Aways:

• net2phone’s year-over-year increase in seats served was powered by continued expansion in key markets led by the U.S., Brazil, and Mexico.
• In 1Q24, subscription revenue increased 19% year-over-year driven by the 18% increase in seats served augmented by an increase in average revenue per seat served.
• CCaaS seats served increased 31% year-over-year to approximately 10,000.

Fintech

During 1Q24 and 1Q23, the Fintech segment contributed 8.8% and 6.2% of IDT’s consolidated revenue, respectively.

Fintech (Transactions in thousands. $ in millions except for revenue per transaction)
			1	Q24			4	Q23			3	Q23			2	Q23			1	Q23			1Q24-1Q23 Variance
BOSS Money Transactions			4,045				3,793				3,274				3,053				2,862				+41	%
Fintech Revenue
BOSS Money		$	24.2			$	22.3			$	19.4			$	17.6			$	17.6				+38	%
Other		$	2.3			$	2.3			$	2.3			$	2.7			$	2.3				–
Total Revenue		$	26.6			$	24.6			$	21.8			$	20.3			$	19.9				+34	%
Average revenue per transaction*		$	5.99			$	5.87			$	5.94			$	5.78			$	6.13			$	(0.14		)
Gross profit		$	14.8			$	13.6			$	12.6			$	12.3			$	11.6				+28	%
SG&A		$	16.2			$	15.5			$	13.9			$	13.4			$	11.7				+39	%
(Loss) income from operations		$	(1.4	)		$	(1.9	)		$	(1.3	)		$	(0.8	)		$	1.5			$	(2.9		)
Adjusted EBITDA		$	(0.7	)		$	(1.2	)		$	(0.6	)		$	(0.5	)		$	0.5			$	(1.2		)

Take-Aways:

• The 41% year-over-year increase in BOSS Money transactions included a 54% increase in retail transactions driven by expansion of the BOSS Money retail agent network and enhancements to the retailer portal. Digital transactions increased 38% compared to the year-ago quarter.
• BOSS Money revenue increased 38% driven primarily by cross-marketing within the larger BOSS ecosystem and expansion of the retail agent network.

Traditional Communications

During 1Q24 and 1Q23, the Traditional Communications segment contributed 76.6% and 82.5% of IDT’s consolidated revenue, respectively.

Traditional Communications ($ in millions)
			1	Q24			4	Q23			3	Q23			2	Q23			1	Q23			1Q24-1Q23 Variance
Revenue
IDT Digital Payments		$	100.0			$	100.8			$	101.0			$	106.1			$	109.0				(8	)%
BOSS Revolution Calling		$	71.2			$	75.4			$	77.6			$	82.8			$	86.3				(17	)%
IDT Global		$	52.0			$	55.6			$	54.5			$	58.6			$	61.6				(16	)%
Other		$	7.5			$	8.2			$	7.9			$	8.4			$	8.8				(15	)%
Total Revenue		$	230.7			$	240.0			$	241.0			$	256.0			$	265.7				(13	)%
Gross profit		$	42.6			$	44.7			$	45.4			$	46.7			$	46.9				(9	)%
SG&A		$	26.6			$	28.4			$	28.2			$	29.5			$	29.6				(10	)%
Income from operations		$	15.4			$	14.1			$	12.9			$	17.0			$	17.3				(11	)%
Adjusted EBITDA		$	18.1			$	18.6			$	19.7			$	19.6			$	19.7				(8	)%

Take-Aways:

• As in recent prior quarters, the year-over-year decrease in IDT Digital Payments’ revenue was due to the deterioration of a key international mobile top-up corridor. By 1Q24, however, that corridor was no longer a significant factor, helping to stabilize revenue sequentially.
• Income from operations increased sequentially for the second consecutive quarter, helped by strong contributions from BOSS Revolution Calling and IDT Global. Nevertheless, the industry-wide decline in the paid-minute calling markets will continue to impact revenues and cash flows for this segment in the coming quarters.

OTHER FINANCIAL STATEMENTS HIGHLIGHTS

Consolidated results for all periods presented include corporate overhead. Corporate G&A expense increased to $2.8 million in 1Q24 from $1.9 million in 1Q23 reflecting an increase in audit and accounting fees and higher employee compensation expense.

As of October 31, 2023, IDT held $159.7 million in cash, cash equivalents, debt securities, and current equity investments. Current assets totaled $382.2 million and current liabilities totaled $275.9 million. IDT had no outstanding debt at the fiscal quarter’s end.

Net cash provided by operating activities during 1Q24 was $14.8 million – a decrease from $18.2 million during 1Q23. Exclusive of changes in customer deposit balances at IDT’s Gibraltar-based bank, net cash provided by operating activities increased to $17.1 million from $15.3 million during 1Q23. This increase was primarily due to the timing of operating cash receipts and payments.

Capital expenditures decreased to $4.3 million in 1Q24 from $5.2 million in 1Q23.

IDT EARNINGS ANNOUNCEMENT AND 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 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: 637334).

A replay of the conference call will be available approximately three hours after the call concludes through December 18, 2023. To access the call replay, dial 1-877-481-4010 (toll-free from the US) or 1-919-882-2331 (international) and provide this replay passcode: 49441. The replay will also be accessible via streaming audio at the IDT investor relations website.

NOTES

^*See ‘Explanation of Key Performance Metrics’ at the end of this release.

^** Beginning in 1Q24, IDT is including depreciation and amortization expense in direct cost of revenues or SG&A expense, as appropriate, and reporting gross profit and gross margin in accordance with GAAP. Results for all prior periods presented have been reclassified to conform to the current period’s presentation.

^***Adjusted EBITDA and Non-GAAP EPS are Non-GAAP financial measures intended to provide useful information that supplements IDT’s or the relevant segment’s results in accordance with GAAP. Please refer to the Reconciliation of Non-GAAP Financial Measures later in this release for an explanation of these terms and their respective reconciliations to the most directly comparable GAAP measures.

ABOUT IDT CORPORATION

IDT Corporation (NYSE: IDT) is a global provider of fintech and communications services through a portfolio of synergistic businesses: National Retail Solutions (NRS), through its point-of-sale (POS) platform, enables independent retailers to operate more effectively while providing advertisers and marketers with unprecedented reach into underserved consumer markets; net2phone provides enterprises and organizations with intelligently integrated cloud communications and contact center services across channels and devices; IDT’s fintech and neo-banking services include BOSS Money, a popular international remittance business, as well as other services that make saving, spending, and sharing money easy and secure; IDT Digital Payments and BOSS Revolution Calling make sharing prepaid products and services and speaking with friends and family around the world convenient and reliable; and, IDT Global and IDT Express enable communications services to provision and manage international voice and SMS messaging.

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

CONTACT

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

IDT CORPORATION

CONSOLIDATED BALANCE SHEETS

		October 31, 2023				July 31, 2023
		(Unaudited)
		(in thousands, except per share data)
Assets
Current assets:
Cash and cash equivalents		$	121,668			$	103,637
Restricted cash and cash equivalents			86,785				95,186
Debt securities			33,242				42,414
Equity investments			4,761				6,198
Trade accounts receivable, net of allowance for credit losses of $5,909 at October 31, 2023 and allowance for doubtful accounts of $5,642 at July 31, 2023			35,328				32,092
Settlement assets, net of reserve of $1,469 at October 31, 2023 and $1,143 at July 31, 2023			18,122				32,396
Disbursement prefunding			35,733				30,113
Prepaid expenses			19,502				16,638
Other current assets			27,034				28,394
Total current assets			382,175				387,068
Property, plant, and equipment, net			38,802				38,655
Goodwill			26,311				26,457
Other intangibles, net			7,215				8,196
Equity investments			8,150				9,874
Operating lease right-of-use assets			4,910				5,540
Deferred income tax assets, net			20,539				24,101
Other assets			10,944				10,919
Total assets		$	499,046			$	510,810
Liabilities, redeemable noncontrolling interest, and equity
Current liabilities:
Trade accounts payable		$	24,469			$	22,231
Accrued expenses			100,107				110,796
Deferred revenue			34,042				35,343
Customer deposits			79,541				86,481
Settlement liabilities			19,268				21,495
Other current liabilities			18,507				17,761
Total current liabilities			275,934				294,107
Operating lease liabilities			2,346				2,881
Other liabilities			3,220				3,354
Total liabilities			281,500				300,342
Commitments and contingencies
Redeemable noncontrolling interest			10,579				10,472
Equity:
IDT Corporation stockholders’ equity:
Preferred stock, $.01 par value; authorized shares-10,000; no shares issued			–				–
Class A common stock, $.01 par value; authorized shares-35,000; 3,272 shares issued and 1,574 shares outstanding at October 31, 2023 and July 31, 2023			33				33
Class B common stock, $.01 par value; authorized shares-200,000; 27,865 and 27,851 shares issued and 23,586 and 23,699 shares outstanding at October 31, 2023 and July 31, 2023, respectively			279				279
Additional paid-in capital			302,351				301,408
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 4,279 and 4,152 shares of Class B common stock at October 31, 2023 and July 31, 2023, respectively			(118,312	)			(115,461	)
Accumulated other comprehensive loss			(16,627	)			(17,192	)
Retained earnings			32,321				24,662
Total IDT Corporation stockholders’ equity			200,045				193,729
Noncontrolling interests			6,922				6,267
Total equity			206,967				199,996
Total liabilities, redeemable noncontrolling interest, and equity		$	499,046			$	510,810

IDT CORPORATION

CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

		Three Months Ended October 31,
		2023				2022
		(in thousands, except per share data)
Revenues		$	301,205			$	321,816
Direct cost of revenues			206,777				232,670
Gross profit			94,428				89,146
Operating expenses (gains):
Selling, general and administrative (i)			77,222				69,620
Severance			525				100
Other operating gain, net			(484	)			(800	)
Total operating expenses			77,263				68,920
Income from operations			17,165				20,226
Interest income, net			844				509
Other expense, net			(5,586	)			(3,842	)
Income before income taxes			12,423				16,893
Provision for income taxes			(3,947	)			(4,338	)
Net income			8,476				12,555
Net income attributable to noncontrolling interests			(817	)			(1,553	)
Net income attributable to IDT Corporation		$	7,659			$	11,002
Earnings per share attributable to IDT Corporation common stockholders:
Basic		$	0.30			$	0.43
Diluted		$	0.30			$	0.43
Weighted-average number of shares used in calculation of earnings per share:
Basic			25,178				25,603
Diluted			25,277				25,616
(i) Stock-based compensation included in selling, general and administrative expense		$	771			$	572

IDT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

		Three Months Ended October 31,
		2023				2022
		(in thousands)
Operating activities
Net income		$	8,476			$	12,555
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			5,047				4,790
Deferred income taxes			3,561				3,672
Provision for credit losses, doubtful accounts receivable, and reserve for settlement assets			759				430
Net unrealized loss from marketable securities			1,528				1,846
Stock-based compensation			771				572
Other			897				756
Changes in assets and liabilities:
Trade accounts receivable			(4,572	)			2,442
Settlement assets, disbursement prefunding, prepaid expenses, other current assets, and other assets			8,250				(4,380	)
Trade accounts payable, accrued expenses, settlement liabilities, other current liabilities, and other liabilities			(7,061	)			(6,970	)
Customer deposits at IDT Financial Services Limited (Gibraltar-based bank)			(2,326	)			2,865
Deferred revenue			(540	)			(394	)
Net cash provided by operating activities			14,790				18,184
Investing activities
Capital expenditures			(4,322	)			(5,172	)
Purchase of convertible preferred stock in equity method investment			(672	)			–
Purchases of debt securities and equity investments			(7,750	)			(2,058	)
Proceeds from maturities and sales of debt securities and equity investments			17,067				11,472
Net cash provided by investing activities			4,323				4,242
Financing activities
Distributions to noncontrolling interests			(55	)			(99	)
Proceeds from other liabilities			100				300
Repayment of other liabilities			(15	)			(1,916	)
Proceeds from borrowings under revolving credit facility			30,315				–
Repayment of borrowings under revolving credit facility			(30,315	)			–
Proceeds from exercise of stock options			172				–
Repurchases of Class B common stock			(2,851	)			(5,341	)
Net cash used in financing activities			(2,649	)			(7,056	)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents			(6,834	)			(6,157	)
Net increase in cash, cash equivalents, and restricted cash and cash equivalents			9,630				9,213
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period			198,823				189,562
Cash, cash equivalents, and restricted cash and cash equivalents at end of period		$	208,453			$	198,775
Supplemental Schedule of Non-Cash Financing Activities
Stock issued to certain executive officers for bonus payments		$	–			$	615

^***Reconciliation of Non-GAAP Financial Measures for the
First Quarter Fiscal 2024 and 2023

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 1Q24, 4Q23, 3Q23, 2Q23, and 1Q23, Adjusted EBITDA and non-GAAP earnings per diluted share (EPS), both of which are non-GAAP measures.

Generally, a non-GAAP measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP.

IDT’s measure of non-GAAP EPS is calculated by dividing non-GAAP net income by the diluted weighted-average shares. IDT’s measure of non-GAAP net income starts with net income attributable to IDT in accordance with GAAP and adds severance expense, stock-based compensation, and other operating expense, and deducts other operating gains. These additions and subtractions are non-cash and/or non-routine items in the relevant fiscal 2024 and fiscal 2023 periods.

Management believes that IDT’s Adjusted EBITDA and non-GAAP EPS are measures which provide useful information to both management and investors by excluding certain expenses and non-routine gains and losses that may not be indicative of IDT’s or the relevant segment’s core operating results. Management uses Adjusted EBITDA, among other measures, as a relevant indicator of core operational strengths in its financial and operational decision making. In addition, management uses Adjusted EBITDA and non-GAAP EPS to evaluate operating performance in relation to IDT’s competitors. Disclosure of these financial measures may be useful to investors in evaluating performance and allows for greater transparency to the underlying supplemental information used by management in its financial and operational decision-making. In addition, IDT has historically reported similar financial measures and believes such measures are commonly used by readers of financial information in assessing performance, therefore the inclusion of comparative numbers provides consistency in financial reporting.

Management refers to Adjusted EBITDA, as well as the GAAP measures income (loss) from operations and net income, on a segment and/or consolidated level to facilitate internal and external comparisons to the segments’ and IDT’s historical operating results, in making operating decisions, for budget and planning purposes, and to form the basis upon which management is compensated.

While depreciation and amortization are considered operating costs under GAAP, these expenses primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or capitalized in prior periods. IDT’s Adjusted EBITDA, which is exclusive of depreciation and amortization, is a useful indicator of its current performance.

Severance expense is excluded from the calculation of Adjusted EBITDA and non-GAAP EPS. Severance expense is reflective of decisions made by management in each period regarding the aspects of IDT’s and its segments’ businesses to be focused on in light of changing market realities and other factors. While there may be similar charges in other periods, the nature and magnitude of these charges can fluctuate markedly and do not reflect the performance of IDT’s core and continuing operations.

Other operating gain (expense), net, which is a component of income (loss) from operations, is excluded from the calculation of Adjusted EBITDA and non-GAAP EPS. Other operating gain (expense), net includes, among other items, gain from the write-off of contingent consideration liabilities, legal fees net of insurance claims related to Straight Path Communications Inc.’s stockholders’ class action, gain from the sale of state income tax credits, and fixed asset write-offs. From time-to-time, IDT may have gains or incur costs related to non-routine legal, tax, and other matters, however, these various items generally do not occur each quarter. IDT believes the gain and losses from these non-routine matters are not components of IDT’s or the relevant segment’s core operating results.

Stock-based compensation recognized by IDT and other companies may not be comparable because of the variety of types of awards as well as the various valuation methodologies and subjective assumptions that are permitted under GAAP. Stock-based compensation is excluded from IDT’s calculation of non-GAAP EPS because management believes this allows investors to make more meaningful comparisons of the operating results per share of IDT’s core business with the results of other companies. However, stock-based compensation will continue to be a significant expense for IDT for the foreseeable future and an important part of employees’ compensation that impacts their performance.

Adjusted EBITDA and non-GAAP EPS should be considered in addition to, not as a substitute for, or superior to, income (loss) from operations, cash flow from operating activities, net income, basic and diluted earnings per share or other measures of liquidity and financial performance prepared in accordance with GAAP. In addition, IDT’s measurements of Adjusted EBITDA and non-GAAP EPS may not be comparable to similarly titled measures reported by other companies.

Following are reconciliations of Adjusted EBITDA and non-GAAP EPS to the most directly comparable GAAP measure, which are, (a) for Adjusted EBITDA, income (loss) from operations for IDT’s reportable segments and net income for IDT on a consolidated basis, and (b) for non-GAAP EPS, diluted earnings per share.

IDT Corporation

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

		Total IDT Corporation				Traditional Communica-tions				net2phone				NRS				Fintech				Corporate
Three Months Ended October 31, 2023 (1Q24)
Net income attributable to IDT Corporation		$	7.7
Adjustments:
Net income attributable to noncontrolling interests			0.8
Net income			8.5
Provision for income taxes			3.9
Income before income taxes			12.4
Interest income, net			(0.8	)
Other expense, net			5.6
Income (loss) from operations			17.2			$	15.4			$	–			$	5.5			$	(1.4	)		$	(2.3	)
Depreciation and amortization			5.0				2.1				1.4				0.7				0.7				–
Severance			0.5				0.5				–				–				–				–
Other operating gain, net			(0.5	)			–				–				–				–				(0.5	)
Adjusted EBITDA		$	22.3			$	18.1			$	1.4			$	6.2			$	(0.7	)		$	(2.8	)

IDT Corporation

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

		Total IDT Corporation				Traditional Communica-tions				net2phone				NRS				Fintech				Corporate
Three Months Ended July 31, 2023 (4Q23)
Net income attributable to IDT Corporation		$	8.0
Adjustments:
Net income attributable to noncontrolling interests			0.8
Net income			8.8
Provision for income taxes			3.8
Income before income taxes			12.6
Interest income, net			(1.1	)
Other expense, net			0.5
Income (loss) from operations			12.0			$	14.1			$	(0.7	)		$	1.7			$	(1.9	)		$	(1.2	)
Depreciation and amortization			5.1				2.3				1.5				0.7				0.7				–
Severance			0.5				0.4				0.1				–				–				–
Other operating expense (gain), net			0.5				1.8				0.1				–				–				(1.4	)
Adjusted EBITDA		$	18.1			$	18.6			$	0.9			$	2.4			$	(1.2	)		$	(2.6	)

		Total IDT Corporation				Traditional Communica-tions				net2phone				NRS				Fintech				Corporate
Three Months Ended April 30, 2023 (3Q23)
Net income attributable to IDT Corporation		$	6.9
Adjustments:
Net income attributable to noncontrolling interests			0.9
Net income			7.7
Provision for income taxes			3.0
Income before income taxes			10.7
Interest income, net			(0.7	)
Other expense, net			0.4
Income (loss) from operations			10.4			$	12.9			$	(0.4	)		$	2.1			$	(1.3	)		$	(2.9	)
Depreciation and amortization			5.2				2.5				1.4				0.6				0.7				–
Severance			0.1				0.1				–				–				–				–
Other operating expense, net			4.8				4.1				–				–				–				0.6
Adjusted EBITDA		$	20.5			$	19.7			$	1.0			$	2.7			$	(0.6	)		$	(2.3	)

IDT Corporation
Reconciliation of Net Income to Adjusted EBITDA

(unaudited) in millions. Figures may not foot or cross-foot due to rounding to millions

		Total IDT Corporation				Traditional Communica-tions				net2phone				NRS				Fintech				Corporate
Three Months Ended January 31, 2023 (2Q23)
Net income attributable to IDT Corporation		$	14.6
Adjustments:
Net income attributable to noncontrolling interests			0.7
Net income			15.3
Provision for income taxes			5.3
Income before income taxes			20.6
Interest income, net			(0.8	)
Other income, net			(1.6	)
Income (loss) from operations			18.2			$	17.0			$	(0.6	)		$	5.4			$	(0.8	)		$	(2.8	)
Depreciation and amortization			5.0				2.4				1.4				0.6				0.7				–
Severance			0.2				0.2				–				–				–				–
Other operating (gain) expense, net			–				–				–				–				(0.3	)			0.3
Adjusted EBITDA		$	23.4			$	19.6			$	0.8			$	6.0			$	(0.5	)		$	(2.5	)

		Total IDT Corporation				Traditional Communica-tions				net2phone				NRS				Fintech				Corporate
Three Months Ended October 31, 2022 (1Q23)
Net income attributable to IDT Corporation		$	11.0
Adjustments:
Net income attributable to noncontrolling interests			1.6
Net income			12.6
Provision for income taxes			4.3
Income before income taxes			16.9
Interest income, net			(0.5	)
Other expense, net			3.8
Income (loss) from operations			20.2			$	17.3			$	(1.1	)		$	5.2			$	1.5			$	(2.7	)
Depreciation and amortization			4.8				2.3				1.4				0.5				0.6				–
Severance			0.1				0.1				–				–				–				–
Other operating (gain) expense, net			(0.8	)			–				–				–				(1.6	)			0.8
Adjusted EBITDA		$	24.3			$	19.7			$	0.3			$	5.7			$	0.5			$	(1.9	)

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

			1	Q24			4	Q23			3	Q23			2	Q23			1	Q23
Net income attributable to IDT Corporation		$	7.7			$	8.0			$	6.9			$	14.6			$	11.0
Adjustments (add):
Stock-based compensation			(0.8	)			(1.0	)			(1.7	)			(1.3	)			(0.6	)
Severance expense			(0.5	)			(0.5	)			(0.1	)			(0.2	)			(0.1	)
Other operating gain (expense), net			0.5				(0.5	)			(4.8	)			–				0.8
Total adjustments			(0.8	)			(2.0	)			(6.6	)			(1.5	)			0.1
Income tax effect of total adjustments			(0.3	)			(0.7	)			(1.8	)			(0.4	)			–
			0.5				1.3				4.8				1.1				(0.1	)
Non-GAAP net income		$	8.2			$	9.3			$	11.7			$	15.7			$	10.9
Earnings per share:
Basic		$	0.30			$	0.31			$	0.27			$	0.57			$	0.43
Total adjustments			0.03				0.06				0.19				0.05				–
Non-GAAP – basic		$	0.33			$	0.37			$	0.46			$	0.62			$	0.43
Weighted-average number of shares used in calculation of basic earnings per share			25.2				25.4				25.5				25.5				25.6
Diluted		$	0.30			$	0.31			$	0.27			$	0.57			$	0.43
Total adjustments			0.02				0.05				0.19				0.05				–
Non-GAAP – diluted		$	0.32			$	0.36			$	0.46			$	0.62			$	0.43
Weighted-average number of shares used in calculation of diluted earnings per share			25.3				25.5				25.6				25.5				25.6

*Explanation of Key Performance Metrics

NRS’ recurring revenue is NRS’ revenue in accordance with GAAP excluding revenue from POS terminal sales. NRS’ Monthly Average Recurring Revenue per Terminal is a financial metric. Monthly Average Recurring Revenue per Terminal is calculated by dividing NRS’ recurring revenue by the average number of active POS terminals during the period. The average number of active POS terminals is calculated by adding the beginning and ending number of active POS terminals during the period and dividing by two. NRS’ recurring revenue divided by the average number of active POS terminals is divided by three when the period is a fiscal quarter. Recurring revenue and Monthly Average Recurring Revenue per Terminal are useful for comparisons of NRS’ revenue and revenue per customer to prior periods and to competitors and others in the market, as well as for forecasting future revenue from the customer base.

BOSS Money’s Average Revenue per Transaction is also a financial metric. Average Revenue per Transaction is calculated by dividing BOSS Money’s revenue in accordance with GAAP by the number of transactions during the period. Average Revenue per Transaction is useful for comparisons of BOSS Money’s revenue per transaction to prior periods and to competitors and others in the market, as well as for forecasting future revenue based on transaction trends.

net2phone’s subscription revenue is its revenue in accordance with GAAP excluding its equipment revenue and revenue generated by a legacy SIP trunking offering in Brazil. net2phone’s cloud communications and contact center offerings are priced on a per-seat basis, with customers paying based on the number of users in their organization. The number of seats served and subscription revenue trends and comparisons between periods are used in the analysis of net2phone’s revenues and direct cost of revenues, and are strong indications of the top-line growth and performance of the business.

# # #

NEWARK, NJ, Nov. 24, 2023 — IDT Corporation (NYSE: IDT), a global provider of fintech, cloud communications, and traditional communications services, has scheduled its report of financial and operational results for the first quarter of its fiscal year 2024 (the three months ended October 31, 2023) on Monday, December 4, 2023.

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 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: 637334).

A replay of the conference call will be available approximately three hours after the call concludes through December 18, 2023. To access the call replay, dial 1-877-481-4010 (toll-free from the US) or 1-919-882-2331 (international) and provide this replay passcode: 49441. 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 and communications services through a portfolio of synergistic businesses: National Retail Solutions (NRS), through its point-of-sale (POS) platform, enables independent retailers to operate more effectively while providing advertisers and marketers with unprecedented reach into underserved consumer markets; net2phone provides enterprises and organizations with intelligently integrated cloud communications and contact center services across channels and devices; IDT’s fintech and neo-banking services include BOSS Money, a popular international remittance business, as well as other services that make saving, spending, and sharing money easy and secure; IDT Digital Payments and BOSS Revolution Calling make sharing prepaid products and services and speaking with friends and family around the world convenient and reliable; and, IDT Global and IDT Express enable communications services to provision and manage international voice and SMS messaging.

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

###

NEWARK, NJ, Nov. 13, 2023 — IDT Corporation (NYSE: IDT), a global provider of fintech and communications services, announced today that its Chief Financial Officer, Marcelo Fischer, will participate in the 15th Annual Southwest IDEAS Investor Conference on Wednesday, November 15^th at The Statler in Dallas, TX.

Mr. Fischer’s presentation will take place from 9:20 to 9:55 Central Time. The presentation will be webcast and can be accessed through the conference host’s main website, https://www.threepartadvisors.com/southwest, and through the IDT investor relations website, https://www.idt.net/investors-and-media/.

In addition, Mr. Fischer will host meetings with conference participants throughout the day on Wednesday. To request a meeting or participate in the IDEAS conferences, please contact Lacey Wesley at (817) 769 -2373 or LWesley@IDEASconferences.com.

IDEAS Conferences provide independent, regional venues for companies to present to investment professionals. Conferences are held annually in Boston, Chicago and Dallas and are produced by Three Part Advisors, LLC. Additional information about the IDEAS conferences is available at www.IDEASconferences.com.

About IDT Corporation:

IDT Corporation (NYSE: IDT) provides fintech and communications services through a portfolio of synergistic businesses. National Retail Solutions (NRS), through its point-of-sale (POS) platform, enables independent retailers to operate more effectively while providing advertisers and marketers with unprecedented reach into underserved consumer markets. net2phone provides enterprises and organizations with intelligently integrated cloud communications and contact center services across channels and devices. IDT’s fintech and neo-banking businesses include BOSS Money, a popular provider of international remittances, as well as other services that make saving, spending, and sharing money easy and secure. IDT Digital Payments and BOSS Revolution Calling make sharing prepaid products and services and speaking with friends and family around the world convenient and reliable; and, IDT Global and IDT Express enable communications services to provision and manage international voice and SMS messaging.

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

# # #

Same-store sales at NRS retailers during October increased 3.2% compared to October 2022

Compared to September 2023, same-store-sales per calendar day decreased 2.1%

NEWARK, N.J., Nov. 08, 2023 — NRSInsights, a provider of sales data and analytics drawn from retail transactions processed through the National Retail Solutions (NRS) point-of-sale (POS) platform, today announced comparative same-store sales results for October 2023.

As of October 31, 2023, the NRS retail network comprised approximately 27,200 active terminals scanning purchases at independent retailers including bodegas, convenience stores, liquor stores, grocers, and tobacco and sundries sellers nationwide, predominantly serving urban consumers.

Retail Same-Store Sales Highlights

• Same-store sales in October 2023 increased 3.2% from a year earlier (October 2022). Average sales per calendar day for October 2023 decreased 2.1% compared to the preceding month (September 2023).
• Same-store sales in the preceding month (September 2023) had increased 6.1% compared to the year-ago month (September 2022). Average sales per calendar day in September 2023 had increased 1.7% compared to the preceding month (August 2023).
• For the three months ended October 31, 2023, same-store sales increased 4.8% compared to the three months ended October 31, 2022.
• The number of items sold during October 2023 increased 4.1% compared to October 2022 but decreased 0.9% compared to September 2023 on a per calendar day basis.
• The average number of transactions per store in October 2023 increased 2.8% compared to October 2022. The average number of transactions per calendar day in October 2023 decreased 1.6% compared to September 2023.
• A dollar-weighted average of prices for the top 500 items purchased in October 2023 increased 1.6% year-over-year, a decrease from the 5.3% year-over-year increase recorded in September 2023.

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

“October’s same-store sales at retailers utilizing our POS platform increased 3.2% year over year, but decreased 2.1% on a per-day basis compared to September. Inflationary pressures, which were exceptionally strong in September when prices increased 5.3% year over year, moderated to 1.6% in October 2023 compared to October 2022.

“Shopping patterns during October have evolved over the years. This year, the great “bump” in sales of popular Halloween categories began during the second week of October whereas it was once confined to the third and fourth weeks. From a retail sales standpoint, Halloween is no longer a single-day holiday; it is now a season of festivities and celebrations leading up to that big day.

“Halloween is always an interesting holiday to watch with its skew to sales of chocolate and confections. Earlier this year, increasing unit prices pressured sales in these categories. In October, unit sales of chocolate and confections came in below the year-ago levels as shoppers at stores in the NRS network turned to other sugary snacks to satisfy their sweet tooth.

“Our retailers’ three-month rolling year-over-year same-store sales increase of 4.8% has been, on average, 4.8% above the U.S. Commerce Department’s comparable retail same-store metric over the past ten months.”

Retail Trade Comparative Data

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

Over the past eleven months, the NRS network’s three-month moving average same-store sales have outpaced the US Commerce Department’s Advance Monthly Retail Trade data excluding food services by 4.8 percentage points, on average.

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

NRSInsights Reports

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

Same-store data comparisons of October 2023 with October 2022 are derived from approximately 162 million transactions processed through the 15,544 stores on the NRS network that scanned transactions in both months. Same-store data comparisons of October 2023 with September 2023 are derived from approximately 215 million transactions processed through 22,696 stores.

Same-store data comparisons for the three months ended October 31, 2023 with the year-ago three months are derived from approximately 461 million scanned transactions processed through the stores that were in the NRS network in both quarters.

NRS POS Network

The NRS network comprises approximately 27,200 active POS terminals operating in approximately 23,700 independent retail stores. Its platform predominantly serves small-format, independent, retail stores including convenience stores, bodegas, liquor stores, grocers, and tobacco and sundries sellers. The network includes retailers in all 50 states and in 196 of the 210 designated market areas (DMAs) in the U.S. Over the past twelve months, NRS’ POS terminals have processed $16.6 billion in sales through approximately 1.18 billion transactions.

About National Retail Solutions (NRS):

National Retail Solutions operates the largest point-of-sale (POS) terminal-based platform and digital payment processing service for independent retailers nationwide. Retailers utilize NRS offerings to process transactions and effectively manage their businesses. Consumer packaged goods (CPG) suppliers, brokers, analytics firms and advertisers access the terminal’s digital display network to reach these retailers’ predominantly urban, multi-cultural shopper base, and to harness transaction data-based learnings to identify growth opportunities and measure execution and returns on marketing investment. NRS is a subsidiary of IDT Corporation (NYSE: IDT).

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

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

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

# # #

Attachment

• Retail Trade Comparative Data

Newark, NJ, Oct. 26, 2023 — net2phone, a leading provider of intelligent communications-as-a-service for businesses and contact centers, today unveiled its innovative suite of AI-powered solutions, net2phone AI.

net2phone AI is designed to transform the way businesses communicate with AI-powered insights, coaching, and automated workflows.

“We are harnessing the power of generative AI to help businesses and contact centers drive immediate, quantifiable, and qualitative improvements in customer engagement and agent productivity,” said Dan Leubitz, net2phone’s VP of Product.

“IT departments, managers, supervisors, and business owners will be delighted by our AI-powered call data and analysis features, which provide significantly improved performance metrics,” Leubitz added.

When integrated within net2phone’s UNITE UCaaS and uContact CCaaS platforms, net2phone AI empowers businesses and call centers to optimize customer interactions, improve customer satisfaction, and significantly enhance productivity.

Key functionalities of the fully deployed net2phone AI service include:

• Sentiment Analysis: Identifies emotions and sentiments expressed by the customer during a call through voice, tone and contextual analysis, to provide quantifiable feedback;
• Automated Recording and Transcription: Records and transcribes phone calls. Recordings and transcriptions can be replayed in full or at intervals;
• Done-For-You Tasks: Drafts and prepares personalized follow-up emails after each call. The emails concisely summarize the contents of the call and next steps or to-do items to continue engagement with the customer;
• Written Summary: Prepares a written summary of each call including main takeaways, action items, and next steps;
• Coaching: Provides agents with suggestions for improvement based on call analysis;
• Deep Analytics: Captures and analyzes call data for insights into customer interaction and agent performance including call duration, words spoken per minute, agent-to-caller talk ratios, and overtalk incidents;
• CRM Integration: Data collected by net2phone AI is synched into the CRM platform for seamless integration, data capture, and analysis.

“net2phone AI paves the way for businesses and call centers of all sizes to enhance collaboration, productivity, customer satisfaction, and ROI,” said Jonah Fink, net2phone’s President and Chief Executive Officer. “Managers can access and harness the data and evaluations for comprehensive insights into customer interactions across platforms, resulting in increased customer retention and agent satisfaction rates.”

net2phone AI operates in multiple languages, is available worldwide, and integrates with most widely-used CRM platforms and with most communications or voice platforms that accept API webhooks.

For a no-obligation demo, visit https://www.net2phone.com/features/net2phone-ai or email sales@net2phone.com.

About net2phone:

net2phone’s innovative cloud-based, unified communications as a service, contact center as a service and SIP trunking solutions help businesses around the globe succeed through smarter conversations with enhanced intelligence and insights. net2phone’s commitment to delivering reliable and high-quality communications services has earned it a reputation as a leader in both innovation and growth. net2phone is a subsidiary of IDT Corporation (NYSE: IDT). To learn more, please visit net2phone.com or connect on LinkedIn.

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.

net2phone Media Contact:
Denise D’Arienzo
VP of Marketing & Sales Operations
Email: denise.darienzo@net2phone.com

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

# # #

NRS added a record number of net retail terminals and payment processing accounts during 4Q23

net2phone increased seats served by 21% and subscription revenue by 19% YoY in 4Q23

BOSS Money increased transactions by 42% driving a 36% YoY revenue increase in 4Q23

NEWARK, NJ, Oct. 12, 2023 — IDT Corporation (NYSE: IDT), a global provider of fintech, cloud communications, and traditional communications services, today reported results for the fourth quarter and full fiscal year 2023, the three and twelve months ended July 31, 2023.

HIGHLIGHTS

(Throughout this release, unless otherwise noted, results for the fourth quarter of fiscal year 2023 (4Q23) are compared to the fourth quarter of fiscal year 2022 (4Q22) and results for FY2023 are compared to FY2022. All earnings per share (EPS) and other ‘per share’ results are per diluted share.)

• National Retail Solutions (NRS) added over 1,700 net active point-of-sale (POS) terminals during 4Q23 and over 6,300 during FY2023 to reach approximately 25,700 as of July 31^st. Recurring revenue^* increased 6% in 4Q23 to $18.8 million led by a 79% increase in merchant services revenue. FY2023 recurring revenue increased 58% to $71.4 million;
• net2phone added approximately 12,000 net seats served during 4Q23 and 61,000 during FY2023 to reach approximately 352,000 as of July 31^st. Subscription revenue^* increased 19% in 4Q23 to $17.9 million. FY2023 subscription revenue increased 25% to $66.8 million;
• BOSS Money remittance volume increased by 42% to 3.79 million transactions during 4Q23 while revenue increased 36% to $22.3 million led by a 46% increase in retail channel revenue. FY2023 BOSS Money revenue increased 38% to $76.9 million;
• Consolidated revenue decreased 8% in 4Q23 to $304 million while consolidated direct cost of revenue decreased 11% to $211 million. FY2023 consolidated revenue decreased 9% to $1,239 million while the consolidated direct cost of revenue decreased 15% to $876 million;
• Consolidated income from operations decreased 38% in 4Q23 to $12.0 million. FY2023 consolidated income from operations increased 1% to $60.7 million;
• Net income attributable to IDT decreased 54% in 4Q23 to $8.0 million. FY2023 net income attributable to IDT increased 50% to $40.5 million;
• Consolidated Adjusted EBITDA^** decreased 25% in 4Q23 to $18.1 million. FY2023 consolidated Adjusted EBITDA increased 9% to $86.2 million;
• EPS decreased to $0.31 in 4Q23 from $0.66 and Non-GAAP EPS^** decreased to $0.36 from $0.67. FY2023 EPS increased to $1.58 from $1.03, and Non-GAAP EPS increased to $1.86 from $1.12;
• During 4Q23, IDT accelerated its stock repurchases, buying back 231,416 shares of its Class B common stock in market transactions for $5.6 million. During FY2023, IDT repurchased 511,546 Class B shares for $13.1 million. During 1Q24 through October 11^th, IDT had repurchased 124,530 shares of Class B common stock for an aggregate purchase price of $2.8 million.

^*See ‘Explanation of Key Performance Metrics’ at the end of this release.

^**Adjusted EBITDA and Non-GAAP EPS are Non-GAAP financial measures intended to provide useful information that supplements IDT’s or the relevant segment’s results in accordance with GAAP. Please refer to the Reconciliation of Non-GAAP Financial Measures later in this release for an explanation of these terms and their respective reconciliations to the most directly comparable GAAP measures.

REMARKS BY SHMUEL JONAS, CEO

“Our results this quarter were highlighted by the continued expansion of our three high-growth, high-margin businesses, while our Traditional Communications segment performed as expected.

“At NRS, we have ramped up our investment to accelerate the growth of the NRS terminal and payment networks, and we delivered record quarterly increases in both net new terminals and net new NRS Pay accounts. With that tailwind, Merchant Services Q4 revenue increased 79% year-over-year. Advertising & Data revenue, while 40% below the year-ago peak, improved sequentially. Advertising & Data revenue increased 7% from the prior quarter and is on track for a larger sequential increase in the current quarter. NRS’ results also reflected our investment in growth initiatives, including the development of new features and functionalities that will help us expand our target market to new verticals within the independent retailer market during the coming year.

“At net2phone, subscription revenue increased 19% year over year, powered by the increase in seats served and an increase in average subscription revenue per seat in Latin America. Here too we are investing in initiatives to expand the business. In the coming quarters, we are preparing to roll out two exciting premium services – net2phone AI and Call Center Essentials – that we expect to enhance ARPU and margins across our markets.

“Within our Fintech segment, BOSS Money, our international remittance business, continued to benefit from the synergies between its retail and direct-to-consumer channels, and from our cross-marketing programs within the larger BOSS ecosystem. Also in our Fintech segment, we’ve begun enrolling customers in our new mobile banking app, Elroy. Elroy is replete with innovative features to help underbanked and unbanked customers integrate into the U.S. financial mainstream while appealing to anyone who despises bank fees but appreciates financial convenience, saving money, and earning interest.

“Within our Traditional Communications segment, we are working to further streamline the operations of our BOSS Revolution Calling and IDT Global businesses while pushing new initiatives to return our IDT Digital Payments business to growth.”

RESULTS BY SEGMENT

Fiscal Quarters		NRS												net2phone												Fintech												Traditional Communications
(In millions)		4Q23				3Q23				4Q22				4Q23				3Q23				4Q22				4Q23				3Q23				4Q22				4Q23				3Q23				4Q22
Revenue		$	19.9			$	18.1			$	19.2			$	19.3			$	18.4			$	16.2			$	24.6			$	21.8			$	18.5			$	240.0			$	241.0			$	274.6
Direct cost of revenue		$	2.1			$	2.6			$	2.7			$	3.1			$	3.0			$	2.5			$	11.0			$	9.2			$	7.4			$	195.2			$	195.4			$	225.3
SG&A expense		$	15.4			$	12.8			$	9.5			$	15.2			$	14.4			$	14.0			$	14.8			$	13.2			$	12.5			$	26.3			$	26.0			$	28.9
Income (loss) from operations		$	1.7			$	2.1			$	6.7			$	(0.7	)		$	(0.4	)		$	(1.8	)		$	(1.9	)		$	(1.3	)		$	(1.9	)		$	14.1			$	12.9			$	18.0
Adjusted EBITDA		$	2.4			$	2.7			$	7.1			$	0.9			$	1.0			$	(0.4	)		$	(1.2	)		$	(0.6	)		$	(1.3	)		$	18.6			$	19.7			$	20.5

Fiscal Years		NRS								net2phone								Fintech								Traditional Communications
(In millions)		FY2023				FY2022				FY2023				FY2022				FY2023				FY2022				FY2023				FY2022
Revenue		$	77.1			$	51.3			$	72.4			$	58.2			$	86.6			$	64.6			$	1,002.7			$	1,190.0
Direct cost of revenue		$	8.9			$	7.1			$	12.0			$	10.1			$	36.5			$	26.1			$	818.3			$	991.2
SG&A expense		$	51.4			$	32.1			$	57.3			$	54.2			$	51.9			$	43.1			$	107.0			$	113.3
Income (loss) from operations		$	14.4			$	11.2			$	(2.8	)		$	(11.1	)		$	(2.5	)		$	(6.9	)		$	61.3			$	75.8
Adjusted EBITDA		$	16.8			$	12.1			$	3.0			$	(6.1	)		$	(1.8	)		$	(4.6	)		$	77.5			$	85.5

National Retail Solutions (NRS)

During 4Q23 and 4Q22, the NRS segment contributed 6.6% and 5.9% of IDT’s consolidated revenue, respectively. For FY2023 and FY2022, the corresponding contributions were 6.2% and 3.8%, respectively.

Take-Aways:

• During 4Q23, NRS added 1,744 net active terminals – a quarterly record. During FY2023, the network expanded by 6,308 net new terminals.
• During 4Q23, NRS added 1,661 net payment processing accounts, also a record quarterly increase. During FY2023, NRS added 5,459 net payment processing accounts.
• Merchant Services revenue growth was driven primarily by the increase in net payment processing accounts.

National Retail Solutions (NRS) (Terminals and accounts at end of period. $ in millions, except for revenue per terminal)
		4Q23				3Q23				4Q22				4Q23-4Q22 (% Δ)					FY2023				FY2022				FY2023-FY2022 (% Δ)
Terminals and payment processing accounts
Active POS terminals			25,700				23,900				19,400				+33	%
Payment processing accounts			15,800				14,100				10,300				+53	%
Recurring revenue
Merchant Services and other		$	10.3			$	8.7			$	5.8				+79	%			$	32.8			$	17.5				+88	%
Advertising and Data		$	6.2			$	5.8			$	10.3				(40		)%		$	30.6			$	22.3				+37	%
SaaS Fees		$	2.3			$	2.1			$	1.6				+44	%			$	8.0			$	5.6				+45	%
Total recurring revenue		$	18.8			$	16.5			$	17.7				+6	%			$	71.4			$	45.3				+58	%
POS Terminal Sales		$	1.1			$	1.6			$	1.6				(29		%)		$	5.7			$	6.0				(6		)%
Total revenue		$	19.9			$	18.1			$	19.2				+4	%			$	77.1			$	51.3				+50	%
Monthly average recurring revenue per terminal*		$	253			$	237			$	316				(20		)%		$	264			$	226				+17	%
Income from operations		$	1.7			$	2.1			$	6.7				(75		)%		$	14.4			$	11.2				+29	%
Adjusted EBITDA		$	2.4			$	2.7			$	7.1				(66		)%		$	16.8			$	12.1				+38	%

net2phone

During 4Q23 and 4Q22, the net2phone segment contributed 6.3% and 4.9% of IDT’s consolidated revenue, respectively. For FY2023 and FY2022, the corresponding contributions were 5.8% and 4.3%, respectively.

net2phone (Seats in thousands at end of period. $ in millions)
		4Q23				3Q23				4Q22				4Q23-4Q22 (% Δ, $)						FY2023				FY2022				FY2023-FY2022 (% Δ, $)
Seats			352				340				291					+21	%
Revenue
Subscription revenue		$	17.9			$	17.1			$	15.1					+19	%			$	66.8			$	53.6					+25	%
Other revenue		$	1.4			$	1.3			$	1.1					+25	%			$	5.6			$	4.6					+20	%
Total Revenue		$	19.3			$	18.4			$	16.2					+19	%			$	72.4			$	58.2					+24	%
Loss from operations		$	(0.7	)		$	(0.4	)		$	(1.8	)			+$	1.1				$	(2.8	)		$	(11.1	)			+$	8.4
Adjusted EBITDA		$	0.9			$	1.0			$	(0.4	)			+$	1.3				$	3.0			$	(6.1	)			+$	9.1

Take-Aways:

• net2phone’s year-over-year increase in seats served was powered by continued expansion in key markets led by the U.S., Brazil, and Mexico.
• In 4Q23, subscription revenue increased 19% year-over-year driven by the robust increase in seats served.
• In FY2023, subscription revenue increased 25% compared to FY2022, as the increase in seats served was augmented by a 3% increase in subscription revenue per seat including a 6% increase in Latin American markets.

Fintech

During 4Q23 and 4Q22, the Fintech segment contributed 8.1% and 5.6% of IDT’s consolidated revenue, respectively. For FY2023 and FY2022, the corresponding contributions were 7.0% and 4.7%, respectively.

Fintech (Transactions in thousands. $ in millions except for revenue per transaction)
		4Q23				3Q23				4Q22				4Q23-4Q22 (% Δ, $)						FY2023				FY2022				FY2023-FY2022 (% Δ, $)
BOSS Money Transactions			3,793				3,274				2,670					+42	%				12,983				9,370					+39	%
Fintech Revenue
BOSS Money		$	22.3			$	19.4			$	16.4					+36	%			$	76.9			$	55.6					+38	%
Other		$	2.3			$	2.4			$	2.1					+6	%			$	9.7			$	9.0					+7	%
Total Revenue		$	24.6			$	21.8			$	18.5					+33	%			$	86.6			$	64.6					+34	%
Average revenue per transaction*		$	5.87			$	5.94			$	6.13			$		(0.26		)		$	5.93			$	5.93				NC
Loss from operations		$	(1.9	)		$	(1.3	)		$	(1.9	)			NC					$	(2.5	)		$	(6.9	)			+$	4.4
Adjusted EBITDA		$	(1.2	)		$	(0.6	)		$	(1.3	)			+$	0.1				$	(1.8	)		$	(4.6	)			+$	2.8

Take-Aways:

• In 4Q23, the 42% increase in BOSS Money transactions included a 47% increase in retail transactions driven by expansion of the BOSS Money retail agent network and enhancements to the retailer portal. Digital transactions increased 41%. In FY2023, transactions increased 39% including a 41% increase in retail transactions and a 38% increase in digital transactions.
• BOSS Money revenue increased 36% in 4Q23 and 38% in FY2023 driven primarily by cross-marketing within the larger BOSS ecosystem and expansion of the retail agent network.

Traditional Communications

During 4Q23 and 4Q22, the Traditional Communications segment contributed 79.0% and 83.6% of IDT’s consolidated revenue, respectively. For FY2023 and FY2022, the corresponding contributions were 81.0% and 87.2%, respectively.

Traditional Communications ($ in millions)
		4Q23				3Q23				4Q22				4Q23-4Q22 (% Δ)				FY2023				FY2022				FY2023-FY2022 (% Δ)
Revenue
IDT Digital Payments		$	100.8			$	101.0			$	112.6				(10	)%		$	417.1			$	473.2				(12	)%
BOSS Revolution Calling		$	75.4			$	77.6			$	90.2				(16	)%		$	322.1			$	387.9				(17	)%
IDT Global		$	55.6			$	54.5			$	62.9				(12	)%		$	230.3			$	292.4				(21	)%
Other		$	8.2			$	7.9			$	8.8				(7	)%		$	33.2			$	36.5				(9	)%
Total Revenue		$	240.0			$	241.0			$	274.6				(13	)%		$	1,002.7			$	1,190.0				(16	)%
Income from operations		$	14.1			$	12.9			$	18.0				(22	%)		$	61.3			$	75.8				(19	%)
Adjusted EBITDA		$	18.6			$	19.7			$	20.5				(9	)%		$	77.5			$	85.5				(9	)%

Take-Aways:

• As in recent prior quarters, the year-over-year decrease in IDT Digital Payments revenue was due to the deterioration of a key international mobile top-up corridor.
• Although BOSS Revolution Calling and IDT Global’s revenues were relatively unchanged sequentially, the industry-wide decline in the paid minute calling markets will continue to impact revenues and cash flows for the segment in the coming quarters.

NOTES ON FINANCIAL STATEMENTS

Consolidated results for all periods presented include corporate overhead. Corporate G&A expense in 4Q23 increased to $2.6 million from $1.7 million in 4Q22 reflecting an increase in audit and accounting fees and higher employee compensation expense. For FY2023, those same factors as well as increased non-cash stock-based compensation expense drove an increase in corporate G&A to $9.3 million from $7.8 million in FY2022.

As of July 31, 2023, IDT held $152.2 million in cash, cash equivalents, debt securities, and current equity investments. Current assets totaled $387.1 million and current liabilities totaled $294.1 million. IDT had no outstanding debt at the fiscal year-end.

Net cash provided by operating activities during 4Q23 was $25.4 million compared to $16.1 million during 4Q22. Exclusive of changes in customer deposit balances at IDT’s Gibraltar-based bank, net cash provided by operating activities during 4Q23 was $27.1 million compared to $22.2 million during 4Q22. The increase in net cash provided by operating activities was primarily due to the timing of operating cash receipts and payments.

Net cash provided by operating activities during FY2023 was $54.1 million compared to $29.4 million in FY2022. Exclusive of changes in customer deposit balances at IDT’s Gibraltar-based bank, net cash provided by operating activities during FY2023 was $58.3 million compared to $45.4 million during FY 2022.

Capital expenditures decreased to $5.9 million in 4Q23 from $8.1 million in 4Q22 and increased to $22.0 million in FY2023 from $21.9 million in FY2022.

IDT EARNINGS ANNOUNCEMENT AND 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 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: 300767).

A replay of the conference call will be available approximately three hours after the call concludes through October 24, 2023. To access the call replay, dial 1-877-481-4010 (toll-free from the US) or 1-919-882-2331 (international) and provide this replay passcode: 49120. 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 and communications services through a portfolio of synergistic businesses: National Retail Solutions (NRS), through its point-of-sale (POS) platform, enables independent retailers to operate more effectively while providing advertisers and marketers with unprecedented reach into underserved consumer markets; net2phone provides enterprises and organizations with intelligently integrated cloud communications and contact center services across channels and devices; Our fintech and neo-banking services include BOSS Money, our popular international remittance business, as well as other services that make saving, spending, and sharing money easy and secure; IDT Digital Payments and BOSS Revolution Calling make sharing prepaid products and services and speaking with friends and family around the world convenient and reliable; and, IDT Global and IDT Express enable communications services to provision and manage international voice and SMS messaging.

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

July 31 (in thousands, except per share data)		2023 Unaudited				2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	103,637			$	98,352
Restricted cash and cash equivalents			95,186				91,210
Debt securities			42,414				22,303
Equity investments			6,198				17,091
Trade accounts receivable, net of allowance for doubtful accounts of $5,642 and $5,328 at July 31, 2023 and 2022, respectively			32,092				39,525
Settlement assets, net of reserve of $1,143 and $554 at July 31, 2023 and 2022, respectively			32,396				31,938
Disbursement prefunding			30,113				21,057
Prepaid expenses			16,638				17,526
Other current assets			28,394				23,625
TOTAL CURRENT ASSETS			387,068				362,627
Property, plant, and equipment, net			38,655				36,866
Goodwill			26,457				26,380
Other intangibles, net			8,196				9,609
Equity investments			9,874				7,426
Operating lease right-of-use assets			5,540				7,210
Deferred income tax assets, net			24,101				36,701
Other assets			10,919				10,275
TOTAL ASSETS		$	510,810			$	497,094
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY
CURRENT LIABILITIES:
Trade accounts payable		$	22,231			$	28,543
Accrued expenses			110,796				117,109
Deferred revenue			35,343				36,531
Customer deposits			86,481				85,764
Settlement liabilities			21,495				17,659
Other current liabilities			17,761				19,466
TOTAL CURRENT LIABILITIES			294,107				305,072
Operating lease liabilities			2,881				4,606
Other liabilities			3,354				6,588
TOTAL LIABILITIES			300,342				316,266
Commitments and contingencies
Redeemable noncontrolling interest			10,472				10,191
EQUITY:
IDT Corporation stockholders’ equity:
Preferred stock, $.01 par value; authorized shares-10,000; no shares issued			–				–
Class A common stock, $.01 par value; authorized shares-35,000; 3,272 shares issued and 1,574 shares outstanding at July 31, 2023 and 2022			33				33
Class B common stock, $.01 par value; authorized shares-200,000; 27,851 and 27,725 shares issued and 23,699 and 24,112 shares outstanding at July 31, 2023 and 2022, respectively			279				277
Additional paid-in capital			301,408				296,005
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 4,152 and 3,613 shares of Class B common stock at July 31, 2023 and 2022, respectively			(115,461	)			(101,565	)
Accumulated other comprehensive loss			(17,192	)			(11,305	)
Retained earnings (accumulated deficit)			24,662				(15,830	)
Total IDT Corporation stockholders’ equity			193,729				167,615
Noncontrolling interests			6,267				3,022
TOTAL EQUITY			199,996				170,637
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY		$	510,810			$	497,094

IDT CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

Year ended July 31 (in thousands, except per share data)		2023 Unaudited				2022				2021
REVENUES		$	1,238,854			$	1,364,057			$	1,446,990
COSTS AND EXPENSES:
Direct cost of revenues (exclusive of depreciation and amortization)			875,734				1,034,430				1,154,048
Selling, general and administrative (i)			276,891				250,481				218,467
Depreciation and amortization			20,136				18,115				17,764
Severance			935				116				452
TOTAL COSTS AND EXPENSES			1,173,696				1,303,142				1,390,731
Other operating (expense) gain, net			(4,415	)			(826	)			731
Income from operations			60,743				60,089				56,990
Interest income, net			3,147				146				318
Other (expense) income, net			(3,083	)			(25,352	)			7,916
Income before income taxes			60,807				34,883				65,224
(Provision for) benefit from income taxes			(16,441	)			(5,878	)			31,667
NET INCOME			44,366				29,005				96,891
Net income attributable to noncontrolling interests			(3,874	)			(1,977	)			(416	)
NET INCOME ATTRIBUTABLE TO IDT CORPORATION		$	40,492			$	27,028			$	96,475
Earnings per share attributable to IDT Corporation common stockholders:
Basic		$	1.59			$	1.05			$	3.78
Diluted		$	1.58			$	1.03			$	3.70
Weighted-average number of shares used in calculation of earnings per share:
Basic			25,517				25,791				25,495
Diluted			25,577				26,356				26,053
(i) Stock-based compensation included in selling, general and administrative expenses		$	4,518			$	1,930			$	1,490

IDT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

Year ended July 31 (in thousands)		2023 Unaudited				2022				2021
OPERATING ACTIVITIES
Net income		$	44,366			$	29,005			$	96,891
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			20,136				18,115				17,764
Deferred income taxes			12,601				4,801				(32,793	)
Provision for doubtful accounts receivable and reserve for settlement assets			2,198				2,330				1,782
Net unrealized loss (gain) from marketable securities			3,368				18,960				(3,262	)
Stock-based compensation			4,518				1,930				1,490
Other			3,175				3,379				(4,096	)
Changes in assets and liabilities:
Trade accounts receivable			4,726				(8,279	)			977
Settlement assets, disbursement prefunding, prepaid expenses, other current assets, and other assets			(17,503	)			(21,046	)			(6,952	)
Trade accounts payable, accrued expenses, settlement liabilities, other current liabilities, and other liabilities			(17,216	)			(1,110	)			(264	)
Customer deposits at IDT Financial Services Limited (Gibraltar-based bank)			(4,200	)			(15,966	)			(6,906	)
Deferred revenue			(2,029	)			(2,712	)			1,989
Net cash provided by operating activities			54,140				29,407				66,620
INVESTING ACTIVITIES
Capital expenditures			(21,958	)			(21,879	)			(16,765	)
Payments for acquisitions, net of cash acquired			–				(7,552	)			(3,673	)
Cash acquired from acquisition of interest in variable interest entity			–				–				3,336
Purchase of Rafael Holdings, Inc. Class B common stock and warrant			–				–				(5,000	)
Exercise of warrant to purchase shares of Rafael Holdings, Inc. Class B common stock			–				–				(1,000	)
Purchase of convertible preferred stock in equity method investment			(840	)			(1,051	)			(4,000	)
Purchases of debt securities and equity investments			(59,872	)			(24,454	)			(43,187	)
Proceeds from maturities and sales of debt securities and redemption of equity investments			49,211				21,157				26,230
Net cash used in investing activities			(33,459	)			(33,779	)			(44,059	)
FINANCING ACTIVITIES
Distributions to noncontrolling interests			(348	)			(514	)			(848	)
Payment for acquisition of warrant in variable interest entity			–				–				(791	)
Proceeds from other liabilities			300				2,301				729
Repayment of other liabilities			(2,037	)			(1,319	)			(108	)
Proceeds from sale of redeemable equity in subsidiary			–				10,000				–
Proceeds from borrowings under revolving credit facility			27,383				2,566				–
Repayments of borrowings under revolving credit facility			(27,383	)			(2,566	)			–
Proceeds from exercise of stock options			172				137				687
Repurchases of Class B common stock			(13,896	)			(26,222	)			(4,192	)
Net cash used in financing activities			(15,809	)			(15,617	)			(4,523	)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents			4,389				(17,365	)			7,656
Net increase (decrease) in cash, cash equivalents, and restricted cash and cash equivalents			9,261				(37,354	)			25,694
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of year			189,562				226,916				201,222
Cash, cash equivalents, and restricted cash and cash equivalents at end of year		$	198,823			$	189,562			$	226,916
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments made for interest		$	536			$	461			$	486
Cash payments made for income taxes		$	777			$	109			$	193
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Conversion of equity method investment’s secured promissory notes into convertible preferred stock		$	4,038			$	–			$	–
Stock issued to certain executive officers for bonus payments		$	615			$	–			$	–
Liabilities incurred for acquisitions		$	–			$	7,849			$	628
Shares of the Company’s Class B common stock issued for acquisition		$	100			$	1,000			$	–
Cashless exercise of stock options in exchange for shares of the Company’s Class B common stock		$	–			$	14,930			$	–
Stock issued for matching contributions to the 401(k) Plan		$	–			$	–			$	1,042

Reconciliation of Non-GAAP Financial Measures for the
Fourth Quarter and Full Fiscal Years 2023 and 2022

In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States of America (GAAP), IDT also disclosed for 4Q23, 3Q23, 4Q22, and the full fiscal years 2023 and 2022, Adjusted EBITDA and non-GAAP earnings per diluted share (EPS), both of which are non-GAAP measures.

Generally, a non-GAAP measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP.

IDT’s measure of non-GAAP EPS is calculated by dividing non-GAAP net income by the diluted weighted-average shares. IDT’s measure of non-GAAP net income starts with net income attributable to IDT in accordance with GAAP and adds severance expense, stock-based compensation, and other operating expense, and deducts other operating gains. These additions and subtractions are non-cash and/or non-routine items in the relevant fiscal 2023 and fiscal 2022 periods.

Management believes that IDT’s Adjusted EBITDA and non-GAAP EPS are measures which provide useful information to both management and investors by excluding certain expenses and non-routine gains and losses that may not be indicative of IDT’s or the relevant segment’s core operating results. Management uses Adjusted EBITDA, among other measures, as a relevant indicator of core operational strengths in its financial and operational decision making. In addition, management uses Adjusted EBITDA and non-GAAP EPS to evaluate operating performance in relation to IDT’s competitors. Disclosure of these financial measures may be useful to investors in evaluating performance and allows for greater transparency to the underlying supplemental information used by management in its financial and operational decision-making. In addition, IDT has historically reported similar financial measures and believes such measures are commonly used by readers of financial information in assessing performance, therefore the inclusion of comparative numbers provides consistency in financial reporting.

Management refers to Adjusted EBITDA, as well as the GAAP measures income (loss) from operations and net income, on a segment and/or consolidated level to facilitate internal and external comparisons to the segments’ and IDT’s historical operating results, in making operating decisions, for budget and planning purposes, and to form the basis upon which management is compensated.

While depreciation and amortization are considered operating costs under GAAP, these expenses primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or capitalized in prior periods. IDT’s Adjusted EBITDA, which is exclusive of depreciation and amortization, is a useful indicator of its current performance.

Severance expense is excluded from the calculation of Adjusted EBITDA and non-GAAP EPS. Severance expense is reflective of decisions made by management in each period regarding the aspects of IDT’s and its segments’ businesses to be focused on in light of changing market realities and other factors. While there may be similar charges in other periods, the nature and magnitude of these charges can fluctuate markedly and do not reflect the performance of IDT’s core and continuing operations.

Other operating (expense) gain, net, which is a component of income (loss) from operations, is excluded from the calculation of Adjusted EBITDA and non-GAAP EPS. Other operating (expense) gain, net includes, among other items, gains from the write-off of contingent consideration liabilities, legal fees net of insurance claims related to Straight Path Communications Inc.’s stockholders’ class action, and expense for the indemnification of a cable telephony customer related to a legal settlement. From time-to-time, IDT may have gains or incur costs related to non-routine legal and other matters, however, these various items generally do not occur each quarter. IDT believes the gain and losses from these non-routine matters are not components of IDT’s or the relevant segment’s core operating results.

Stock-based compensation recognized by IDT and other companies may not be comparable because of the variety of types of awards as well as the various valuation methodologies and subjective assumptions that are permitted under GAAP. Stock-based compensation is excluded from IDT’s calculation of non-GAAP EPS because management believes this allows investors to make more meaningful comparisons of the operating results per share of IDT’s core business with the results of other companies. However, stock-based compensation will continue to be a significant expense for IDT for the foreseeable future and an important part of employees’ compensation that impacts their performance.

Adjusted EBITDA and non-GAAP EPS should be considered in addition to, not as a substitute for, or superior to, income (loss) from operations, cash flow from operating activities, net income, basic and diluted earnings per share or other measures of liquidity and financial performance prepared in accordance with GAAP. In addition, IDT’s measurements of Adjusted EBITDA and non-GAAP EPS may not be comparable to similarly titled measures reported by other companies.

Following are reconciliations of Adjusted EBITDA and non-GAAP EPS to the most directly comparable GAAP measure, which are, (a) for Adjusted EBITDA, income (loss) from operations for IDT’s reportable segments and net income for IDT on a consolidated basis, and (b) for non-GAAP EPS, diluted earnings per share.

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

		Total IDT Corporation				Traditional Communica-tions				net2phone				NRS				Fintech				Corporate
Three Months Ended July 31, 2023 (4Q23)
Net income attributable to IDT Corporation		$	8.0
Adjustments:
Net income attributable to noncontrolling interests			0.8
Net income			8.8
Provision for income taxes			3.8
Income before income taxes			12.6
Interest income, net			(1.1	)
Other expense, net			0.5
Income (loss) from operations			12.0			$	14.1			$	(0.7	)		$	1.7			$	(1.9	)		$	(1.2	)
Depreciation and amortization			5.1				2.3				1.5				0.7				0.7				–
Severance			0.5				0.4				0.1				–				–				–
Other operating expense, net			0.5				1.8				0.1				–				–				(1.4	)
Adjusted EBITDA		$	18.1			$	18.6			$	0.9			$	2.4			$	(1.2	)		$	(2.6	)

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

		Total IDT Corporation				Traditional Communica-tions				net2phone				NRS				Fintech				Corporate
Three Months Ended April 30, 2023 (3Q23)
Net income attributable to IDT Corporation		$	6.9
Adjustments:
Net income attributable to noncontrolling interests			0.9
Net income			7.7
Provision for income taxes			3.0
Income before income taxes			10.7
Interest income, net			(0.7	)
Other expense, net			0.4
Income (loss) from operations			10.4			$	12.9			$	(0.4	)		$	2.1			$	(1.3	)		$	(2.9	)
Depreciation and amortization			5.2				2.5				1.4				0.6				0.7				–
Severance			0.1				0.1				–				–				–				–
Other operating expense, net			4.8				4.1				–				–				–				0.6
Adjusted EBITDA		$	20.5			$	19.7			$	1.0			$	2.7			$	(0.6	)		$	(2.3	)

		Total IDT Corporation				Traditional Communica-tions				net2phone				NRS				Fintech				Corporate
Three Months Ended July 31, 2022 (4Q22)
Net income attributable to IDT Corporation		$	17.2
Adjustments:
Net income attributable to noncontrolling interests			0.7
Net income			18.0
Benefit from income taxes			–
Income before income taxes			18.0
Interest expense, net			0.1
Other expense, net			1.1
Income (loss) from operations			19.2			$	18.0			$	(1.8	)		$	6.7			$	(1.9	)		$	(1.9	)
Depreciation and amortization			4.8				2.4				1.4				0.4				0.6				–
Other operating expense, net			0.1				–				–				–				–				0.1
Adjusted EBITDA		$	24.1			$	20.5			$	(0.4	)		$	7.1			$	(1.3	)		$	(1.7	)

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

		Total IDT Corporation				Traditional Communica-tions				net2phone				NRS				Fintech				Corporate
Year Ended July 31, 2023 (FY 2023)
Net income attributable to IDT Corporation		$	40.5
Adjustments:
Net income attributable to noncontrolling interests			3.9
Net income			44.4
Provision for income taxes			16.4
Income before income taxes			60.8
Interest income, net			(3.1	)
Other expense, net			3.1
Income (loss) from operations			60.7			$	61.3			$	(2.8	)		$	14.4			$	(2.5	)		$	(9.7	)
Depreciation and amortization			20.1				9.4				5.6				2.4				2.7				–
Severance			0.9				0.9				0.1				–				–				–
Other operating expense (gain), net			4.4				5.9				0.1				–				(1.9	)			0.3
Adjusted EBITDA		$	86.2			$	77.5			$	3.0			$	16.8			$	(1.8	)		$	(9.3	)

		Total IDT Corporation				Traditional Communica-tions				net2phone				NRS				Fintech				Corporate
Year Ended July 31, 2022 (FY 2022)
Net income attributable to IDT Corporation		$	27.0
Adjustments:
Net income attributable to noncontrolling interests			2.0
Net income			29.0
Provision for income taxes			5.9
Income before income taxes			34.9
Interest income, net			(0.1	)
Other expense, net			25.4
Income (loss) from operations			60.1			$	75.8			$	(11.1	)		$	11.2			$	(6.9	)		$	(8.9	)
Depreciation and amortization			18.1				9.5				5.4				0.9				2.2				0.1
Severance			0.1				0.1				–				–				0.1				–
Other operating expense (gain), net			0.8				0.1				(0.3	)			–				–				1.0
Adjusted EBITDA		$	79.1			$	85.5			$	(6.1	)		$	12.1			$	(4.6	)		$	(7.8	)

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

		4Q23				3Q23				4Q22				FY 2023				FY 2022
Net income attributable to IDT Corporation		$	8.0			$	6.9			$	17.2			$	40.5			$	27.0
Adjustments (add):
Stock-based compensation			(1.0	)			(1.7	)			(0.1	)			(4.5	)			(1.9	)
Severance expense			(0.5	)			(0.1	)			(0.1	)			(0.9	)			(0.1	)
Other operating expense, net			(0.5	)			(4.8	)			(0.1	)			(4.4	)			(0.8	)
Total adjustments			(2.0	)			(6.6	)			(0.3	)			(9.8	)			(2.8	)
Income tax effect of total adjustments			(0.7	)			(1.8	)			–				(2.6	)			(0.4	)
			1.3				4.8				0.3				7.2				2.4
Non-GAAP net income		$	9.3			$	11.7			$	17.5			$	47.7			$	29.4
Earnings per share:
Basic		$	0.31			$	0.27			$	0.66			$	1.59			$	1.05
Total adjustments			0.06				0.19				0.01				0.28				0.09
Non-GAAP – basic		$	0.37			$	0.46			$	0.67			$	1.87			$	1.14
Weighted-average number of shares used in calculation of basic earnings per share			25.4				25.5				26.0				25.5				25.8
Diluted		$	0.31			$	0.27			$	0.66			$	1.58			$	1.03
Total adjustments			0.05				0.19				0.01				0.28				0.09
Non-GAAP – diluted		$	0.36			$	0.46			$	0.67			$	1.86			$	1.12
Weighted-average number of shares used in calculation of diluted earnings per share			25.5				25.6				26.1				25.6				26.4

*Explanation of Key Performance Metrics

NRS’ recurring revenue is NRS’ revenue in accordance with GAAP excluding revenue from POS terminal sales. NRS’ Monthly Average Recurring Revenue per Terminal is a financial metric. Monthly Average Recurring Revenue per Terminal is calculated by dividing NRS’ recurring revenue by the average number of active POS terminals during the period. The average number of active POS terminals is calculated by adding the beginning and ending number of active POS terminals during the period and dividing by two. NRS’ recurring revenue divided by the average number of active POS terminals is divided by three when the period is a fiscal quarter. Recurring revenue and Monthly Average Recurring Revenue per Terminal are useful for comparisons of NRS’ revenue and revenue per customer to prior periods and to competitors and others in the market, as well as for forecasting future revenue from the customer base.

BOSS Money’s Average Revenue per Transaction is also a financial metric. Average Revenue per Transaction is calculated by dividing BOSS Money’s revenue in accordance with GAAP by the number of transactions during the period. Average Revenue per Transaction is useful for comparisons of BOSS Money’s revenue per transaction to prior periods and to competitors and others in the market, as well as for forecasting future revenue based on transaction trends.

net2phone’s subscription revenue is its revenue in accordance with GAAP excluding its equipment revenue and revenue generated by a legacy SIP trunking offering in Brazil. net2phone’s cloud communications offerings are priced on a per-seat basis, with customers paying based on the number of users in their organization. The number of seats served and subscription revenue trends and comparisons between periods are used in the analysis of net2phone’s revenues and direct cost of revenues, and are strong indications of the top-line growth and performance of the business.

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