IDT Corp (STU:IDC2)
€ 48.14 -0.70 (-1.43%) Market Cap: 1.22 Bil Enterprise Value: 1.05 Bil PE Ratio: 14.96 PB Ratio: 5.00 GF Score: 56/100

Q4 2024 IDT Corp Earnings Call Transcript

Oct 08, 2024 / 09:30PM GMT
Release Date Price: €34.92 (+1.45%)

Key Points

Positve
  • IDT Corp (IDT) delivered a strong fourth quarter with record adjusted EBITDA, highlighting the success of NRS, BOSS Money, and net2phone.
  • BOSS Money achieved over 40% year-over-year transaction volume and revenue growth, marking its first quarter of positive cash flow generation.
  • net2phone added approximately 12,000 net new seats, including 2,000 CCaaS seats, and more than doubled its adjusted EBITDA margin compared to the previous year.
  • The Traditional Communications segment improved its business economics and began to see benefits from cost reduction initiatives.
  • IDT Corp (IDT) enters fiscal 2025 with strong momentum, with all major segments profitable and a focus on continued expansion and new growth initiatives.
Negative
  • The Traditional Communications segment continues to experience a decline in revenue, with expectations of double-digit declines in some areas.
  • Despite strong performance, IDT Corp (IDT) faces challenges in expanding margins for BOSS Money, focusing instead on customer retention.
  • The company does not have a specific timeline for the full migration of net2phone customers to its own platform, which could delay potential synergies.
  • Market conditions are not currently favorable for a potential NRS spinoff, limiting strategic options for that segment.
  • IDT Corp (IDT) acknowledges the need for significant investment in new initiatives, which could impact short-term profitability.
Operator

Good evening, and welcome to the IDT Corporation's Fourth Quarter and Full Fiscal Year 2024 Earnings Call. In today's presentation, IDT's management will discuss IDT's financial and operational results for the 3- and 12-month periods ended July 31, 2024.

(Operator Instructions) After Mr. Jonas' remarks, Marcelo Fischer, IDT's Chief Financial Officer, will join Mr. Jonas for Q&A with investors.

Any forward-looking statements made during this conference call, either in the prepared remarks or in the Q&A session, whether general or specific in nature, are subject to risks and uncertainties that may cause actual results to differ materially from those which the company anticipates. These risks and uncertainties include, but are not limited to, specific risks and uncertainties discussed in the reports that IDT files periodically with the SEC. IDT assumes no obligation either to update any forward-looking statements that they have made or may make or to update the factors that may cause actual results to differ materially from those that they forecast.

In their presentation

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