IDT Corporation Reports Fourth Quarter and Fiscal Year 2022

Highest Levels of Quarterly and Full Fiscal Year Income from Operations since 2015

Highest Levels of Quarterly and Full Fiscal Year Adjusted EBITDA in Company History

Fintech and Cloud Communications Businesses Drive Gains

NEWARK, NJ, Oct. 06, 2022 (GLOBE NEWSWIRE) — IDT Corporation (NYSE: IDT), a world supplier of fintech, cloud communications, and conventional communications providers, at this time reported outcomes for the fourth quarter and full fiscal yr 2022, the three and twelve months ended July 31, 2022.

FOURTH QUARTER AND FISCAL YEAR 2022 HIGHLIGHTS

(Throughout this launch, until in any other case famous, outcomes for the fourth quarter of fiscal yr 2022 (4Q22) are in comparison with the fourth quarter of fiscal yr 2021 (4Q21), and outcomes for FY2022 are in comparison with FY2021. All earnings per share (EPS) and different ‘per share’ outcomes are per diluted share until in any other case famous.)

• Fintech and cloud communications companies — income and associated metrics:
  • National Retail Solutions (NRS) recurring income^* elevated 157% to $17.7 million in 4Q22. FY2022 recurring income elevated 129% to $45.3 million. Net lively POS terminals elevated by roughly 1400 throughout 4Q22 to finish the quarter with roughly 19,400;
  • BOSS Money remittance income elevated 56% to $17.0 million in 4Q22. Transaction quantity elevated by 31% to 2.7 million. FY2022 income elevated 16% to $57.5 million with transaction quantity growing 24% to 9.4 million;
  • net2phone subscription income^* elevated 37% to $15.1 million in 4Q22. Seats served elevated by roughly 12,000 sequentially to finish the quarter with roughly 291,000. FY2022 subscription income elevated 38% to $53.6 million;
• Consolidated income in 4Q22 decreased 16% year-over-year to $329 million from $390 million because of a 23% lower within the Traditional Communications phase’s income. FY2022 consolidated income decreased 6% to $1,364 million from $1,447 million;
• Consolidated revenue from operations in 4Q22 elevated 13% to $19.2 million from $16.9 million. FY2022 revenue from operations elevated 6% to $60.1 million from $57.0 million;
• Net revenue attributable to IDT in 4Q22 decreased to $17.2 million from $38.7 million. FY2022 internet revenue attributable to IDT decreased to $27.0 million from $96.5 million. The quarterly and full-year decreases resulted from the optimistic impacts of reversals of revenue tax valuation allowances totaling $22.4 million in 4Q21 and $46.3 million in FY2021, and, for the total fiscal yr, internet unrealized losses on fairness investments of $19.2 million in FY2022 in comparison with internet unrealized good points of $8.8 million in FY2021;

(Adjusted EBITDA, Non-GAAP internet revenue and Non-GAAP EPS are Non-GAAP measures supposed to offer helpful info that dietary supplements IDT’s or the related phase’s leads to accordance with GAAP. Please discuss with the Reconciliation of Non-GAAP Financial Measures later on this launch for a proof of those phrases and their respective reconciliations to probably the most immediately comparable GAAP measure. Please see the ultimate web page of this launch for the reason of asterisked key efficiency metrics.)

• EPS decreased to $0.66 in 4Q22 from $1.46. In FY2022, EPS decreased to $1.03 from $3.70. The quarterly and full-year decreases resulted from the optimistic impacts of reversals of revenue tax valuation allowances totaling $0.84 per share in 4Q21 and $1.78 per share in FY2021, and, for the total fiscal yr, internet unrealized losses on fairness investments of $0.73 per share in FY2022 in comparison with internet unrealized good points of $0.34 per share in FY2021;
• Consolidated Adjusted EBITDA in 4Q22 elevated 9% to $24.1 million from $22.2 million. FY2022 Adjusted EBITDA elevated 6% to $79.1 million from $74.5 million;
• Non-GAAP EPS in 4Q22 elevated to $0.70 from $0.66. FY2022 Non-GAAP EPS decreased to $1.19 from $1.98;
• IDT repurchased 554,744 shares of its Class B frequent inventory within the open marketplace for $13.4 million throughout 4Q22.

REMARKS BY SHMUEL JONAS, CEO

“In the fourth quarter and for the full 2022 fiscal year, our high-margin, rapidly growing fintech and cloud communications businesses delivered impressive year-over-year and sequential results. For several years we have invested in these businesses to develop the next generation of IDT’s value creation. This transformation helped drive IDT’s consolidated quarterly and annual Adjusted EBITDA to their highest levels in our history.

“Looking ahead, we anticipate that the continued growth of these high-margin fintech and cloud communications businesses and of our Mobile Top-Up offerings will further, significantly improve IDT’s consolidated Adjusted EBITDA, more than offsetting the continued decreasing contributions that we expect from the BOSS Revolution Calling and IDT Global businesses within our lower margin Traditional Communications segment.”

CONSOLIDATED RESULTS

RESULTS BY SEGMENT

Fintech

Fintech comprises two major companies: 1) National Retail Solutions (NRS), an operator of a nationwide point-of-sale (POS) retail community offering service provider providers, digital out-of-home (DOOH) promoting, transaction information, and ancillary providers, and 2) BOSS Money, a supplier of worldwide cash remittances.

In 4Q22 and 4Q21, the Fintech phase accounted for 11.0% and 4.9% of IDT’s consolidated income, respectively. In FY2022 and FY2021, the Fintech phase accounted for 8.0% and 5.1% of consolidated income, respectively.

NRS Take-Aways:

• As of July 31, 2022, NRS’ POS terminal community comprised roughly 19,400 lively POS terminals, a rise of 38% in comparison with a yr earlier, and roughly 10,300 fee processing accounts, a rise of 77% in comparison with a yr earlier;
• NRS recurring income elevated 157% in 4Q22 to $17.7 million from $6.9 million in 4Q21. FY2022 recurring income elevated 129% to $45.3 million from $19.8 million in FY2021;
• NRS month-to-month common recurring income per terminal elevated to $316 from $169;
• In August 2022, NRS and Bringg, a number one supply administration platform supplier, introduced a partnership to allow NRS retailers nationwide to supply and handle exterior supply suppliers for house supply providers using Bringg’s supply hub.

BOSS Money Take-Aways:

• Transaction volumes in 4Q22 elevated 31% to 2.67 million from 2.04 million. FY2022 transaction volumes elevated 24% to 9.37 million from 7.54 million.
• Revenue elevated 56% in 4Q22 to $17.0 million from $10.9 million. FY2022 income elevated 16% to $57.5 million from $49.6 million. The sturdy 4Q22 improve resulted from accelerated development in transaction volumes in addition to increased common income per transaction^*;
• Average income per transaction in 4Q22 elevated 19% to $6.35 from $5.33. The improve was pushed by the event and introduction of recent platform functionalities enabling extra versatile and granular pricing methods. In FY2022, common income per transaction decreased 7% to $6.13 from $6.57 because of elevated overseas alternate revenues realized in the course of the first half of fiscal 2021 from favorable, transitory market situations;
• During 4Q22, BOSS Money introduced an growth of service to Ethiopia by providing direct deposit to roughly 40 million Ethiopian financial institution accounts via an settlement with Terra Pay, a world mobile-first funds supplier. More lately, BOSS Money initiated a collaboration with United Bank for Africa (UBA) to allow prospects to ship U.S. {dollars} for direct deposit at any of the roughly 20 million UBA accounts in Nigeria.

net2phone

In 4Q22 and 4Q21, the net2phone phase accounted for 4.9% and 3.2% of IDT’s consolidated income, respectively. In FY2022 and FY2021, the net2phone phase accounted for 4.3% and 3.1% of consolidated income, respectively.

net2phone Take–aways:

• Total seats on July 31, 2022 elevated 4% to 291,000 from 279,000 on April 30, 2022. Seats elevated 29% from 226,000 a yr earlier. The year-over-year improve included 7,000 seats added via the Integra CCaaS acquisition in 3Q22;
• Subscription income in 4Q22 elevated 37% to $15.1 million from $11.0 million, led by robust development in each net2phone’s South and North American areas. FY2022 subscription income elevated 38% to $53.6 million from $38.8 million in FY2021. Revenue per seat elevated robustly in each South and North America — the previous regardless of the strengthening of the US greenback relative to most South American currencies — as net2phone centered on higher-value prospects and channel companions;
• During 4Q22, net2phone introduced a partnership with TeleBermuda International Limited (TBi) to offer its UCaaS options to TBi’s business prospects. net2phone additionally introduced a strategic partnership with UPSTACK to allow UPSTACK’s skilled advisors to supply net2phone’s cloud communication options to purchasers;
• Following the shut of the fiscal yr, net2phone was named a UCaaS development and innovation chief in Latin America and the Caribbean by Frost & Sullivan, which positioned net2phone within the prime quadrant of the Frost Radar^TM: Unified Communications as a Service Market in Latin America and the Caribbean, 2022. During 4Q22, netphone’s UCaaS providing was acknowledged as one of many 10 Most Promising Unified Communication Solutions in 2022 by CIOReview, a number one publication for business know-how leaders.

Traditional Communications

In 4Q22 and 4Q21, the Traditional Communications phase accounted for 84.1% and 91.9% of IDT’s consolidated income, respectively. In FY2022 and FY2021, the Traditional Communications phase accounted for 87.7% and 91.8% of consolidated income, respectively.

Traditional Communications Take–Amethods:

• Mobile Top-Up (MTU) income in 4Q22 decreased 18% to $112.6 million from $136.6 million. The lower displays a sudden, industry-wide deterioration in a key hall that was notably impactful within the wholesale and retail channels. In FY2022, income elevated 3% to $473.2 million from $461.6 million in FY2021 led by elevated gross sales of bundled choices;
• BOSS Revolution Calling income in 4Q22 decreased 20% to $90.2 million from $112.6 million. In FY2022, income decreased 15% to $387.9 million from $455.2 million in FY2021. The decreases mirror the long-standing industry-wide decline within the paid minute calling markets that paused in the course of the preliminary levels of the COVID pandemic however have since accelerated;
• IDT Global’s service providers income in 4Q22 decreased 35% to $62.9 million from $97.4 million. FY2022 income decreased 19% to $292.3 million from $361.0 million in FY2021;
• Decreases in BOSS Revolution Calling and IDT Global revenues have been closely skewed towards decrease margin corridors and/or distribution channels, mitigating their bottom-line impacts. Management anticipates, nevertheless, that each choices will proceed to generate vital, although uneven, income decreases for the foreseeable future and that, progressively, a bigger proportion of those decreases will impression Traditional Communications’ backside line outcomes.

NOTES ON FINANCIAL STATEMENTS

Consolidated outcomes for all durations offered embrace company overhead. Corporate G&A expense was $1.7 million in each 4Q22 and 4Q21. FY2022 company SG&A elevated to $7.8 million from $7.5 million in FY2021.

As of July 31, 2022, IDT held $137.7 million in money, money equivalents, debt securities, and present fairness investments. Current belongings totaled $362.6 million and present liabilities totaled $305.1 million, and IDT had no excellent debt.

Net money offered by working actions throughout 4Q22 was $16.1 million in comparison with $28.5 million throughout 4Q21. Exclusive of modifications in buyer deposit balances at our Gibraltar-based financial institution, internet money offered by working actions throughout 4Q22 was $22.3 million in comparison with $24.3 million throughout 4Q21. FY2022 internet money offered by working actions was $29.4 million in comparison with $66.6 million in FY2021. Exclusive of modifications in buyer deposit balances, internet money offered by working actions throughout FY2022 was $45.4 million in comparison with $73.5 million throughout FY2021.

Capital expenditures elevated to $8.1 million in 4Q22 from $3.3 million in 4Q21. Capital expenditures elevated to $21.9 million in FY2022 from $16.8 million in FY2021.

IDT EARNINGS ANNOUNCEMENT & SUPPLEMENTAL INFORMATION

This launch is offered for obtain within the “Investors & Media” part of the IDT Corporation web site (https://www.idt.net/investors-and-media) and has been filed on a present report (Form 8-Okay) with the SEC.

IDT will host an earnings convention name starting at 5:30 PM Eastern at this time with administration’s dialogue of outcomes, outlook, and technique adopted by Q&A with traders. To take heed to the decision and take part within the Q&A, dial 1-888-506-0062 (toll-free from the US) or 1-973-528-0011 (worldwide) and request the IDT Corporation name (participant entry code: 657260).

A replay of the convention name will probably be out there roughly three hours after the decision concludes via October 20, 2022. To entry the decision replay, dial 1-877-481-4010 (toll-free from the US) or 1-919-882-2331 (worldwide) and present this replay quantity: 46269. The replay will even be accessible through streaming audio on the IDT investor relations web site.

ABOUT IDT:

IDT Corporation (NYSE: IDT) is a world supplier of fintech, cloud, and conventional communications providers. We make it simple for households to speak and help one another throughout worldwide borders. We additionally allow companies to transact and talk with their prospects with enhanced intelligence and perception.

Our BOSS Money worldwide remittance and BOSS Revolution worldwide calling providers make sending cash and talking with pals and household all over the world handy and dependable. National Retail Solutions’ (NRS) point-of-sale retail community permits unbiased retailers to function and course of transactions extra successfully whereas offering advertisers and shopper entrepreneurs with unprecedented attain into underserved shopper markets. net2phone’s communications-as-a-service options present companies with intelligently built-in cloud communications and collaboration instruments throughout channels and units. Our IDT Global and IDT Express wholesale choices allow communications service enterprises to provision and handle worldwide voice and SMS providers.

All statements above that aren’t purely about historic information, together with, however not restricted to, these wherein we use the phrases “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate,” “target” and related expressions, are forward-looking statements inside the which means of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements characterize our present judgment of what could occur sooner or later, precise outcomes could differ materially from the outcomes expressed or implied by these statements attributable to quite a few vital components. Our filings with the SEC present detailed info on such statements and dangers and must be consulted together with this launch. To the extent permitted underneath relevant regulation, IDT assumes no obligation to replace any forward-looking statements.

CONTACT:

IDT Corporation Investor Relations
Bill Ulrey
[email protected]
973-438-3838

IDT CORPORATION
CONSOLIDATED BALANCE SHEETS

IDT CORPORATION
CONSOLIDATED STATEMENTS OF INCOME

IDT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS

Reconciliation of Non-GAAP Financial Measures for the
Fourth Quarter and Full Fiscal Years 2022 and 2021

In addition to disclosing monetary outcomes which are decided in accordance with usually accepted accounting ideas within the United States of America (GAAP), IDT additionally disclosed, for 4Q22, 3Q22, 4Q21, and the total fiscal years 2022 and 2021, Adjusted EBITDA, non-GAAP internet revenue, and non-GAAP earnings per diluted share (EPS), all of that are non-GAAP measures. Generally, a non-GAAP measure is a numerical measure of an organization’s efficiency, monetary place, or money flows that both excludes or contains quantities that aren’t usually excluded or included in probably the most immediately comparable measure calculated and offered in accordance with GAAP.

IDT’s measure of non-GAAP internet revenue begins with internet revenue in accordance with GAAP and provides severance expense, stock-based compensation, and different working expense, and deducts the discharge of valuation allowance on deferred tax belongings and different working good points. These additions and subtractions are non-cash and/or non-routine gadgets within the related fiscal 2022 and fiscal 2021 durations.

IDT’s measure of non-GAAP EPS is calculated by dividing non-GAAP internet revenue by the diluted weighted-average shares.

Management believes that IDT’s Adjusted EBITDA, non-GAAP internet revenue, and non-GAAP EPS are measures which offer helpful info to each administration and traders by excluding sure bills and non-routine good points and losses that might not be indicative of IDT’s or the related phase’s core working outcomes. Management makes use of Adjusted EBITDA, amongst different measures, as a related indicator of core operational strengths in its monetary and operational resolution making. In addition, administration makes use of Adjusted EBITDA, non-GAAP internet revenue, and non-GAAP EPS to judge working efficiency in relation to IDT’s rivals. Disclosure of those monetary measures could also be helpful to traders in evaluating efficiency and permits for higher transparency to the underlying supplemental info utilized by administration in its monetary and operational decision-making. In addition, IDT has traditionally reported related monetary measures and believes such measures are generally utilized by readers of monetary info in assessing efficiency, subsequently the inclusion of comparative numbers offers consistency in monetary reporting.

Management refers to Adjusted EBITDA, in addition to the GAAP measures revenue (loss) from operations and internet revenue, on a phase and/or consolidated degree to facilitate inner and exterior comparisons to the segments’ and IDT’s historic working outcomes, in making working selections, for price range and planning functions, and to type the premise upon which administration is compensated.

While depreciation and amortization are thought-about working prices underneath GAAP, these bills primarily characterize the non-cash present interval allocation of prices related to long-lived belongings acquired or capitalized in prior durations. IDT’s Adjusted EBITDA, which is unique of depreciation and amortization, is a helpful indicator of its present efficiency.

Severance expense is excluded from the calculation of Adjusted EBITDA, non-GAAP internet revenue, and non-GAAP EPS. Severance expense is reflective of choices made by administration in every interval relating to the points of IDT’s and its segments’ companies to be centered on in mild of fixing market realities and different components. While there could also be related fees in different durations, the character and magnitude of those fees can fluctuate markedly and don’t mirror the efficiency of IDT’s core and persevering with operations.

Other working (expense) achieve, internet, which is a part of revenue (loss) from operations, is excluded from the calculation of Adjusted EBITDA, non-GAAP internet revenue, and non-GAAP EPS. Other working (expense) achieve, internet contains authorized charges internet of insurance claims associated to Straight Path Communications Inc.’s stockholders’ putative class motion and spinoff criticism, expense for the indemnification of a net2phone cable telephony buyer associated to patent infringement claims introduced in opposition to the shopper, a achieve from the write-off of a contingent consideration legal responsibility, expense for different authorized and regulatory issues, and a achieve from the sale of IDT’s rights underneath a category motion lawsuit. From time-to-time, IDT could have good points or incur prices associated to non-routine authorized and regulatory issues, nevertheless, these numerous gadgets usually don’t happen every quarter. IDT believes the achieve and losses from these non-routine issues are usually not elements of IDT’s or the related phase’s core working outcomes.

Stock-based compensation acknowledged by IDT and different firms might not be comparable due to the number of kinds of awards in addition to the varied valuation methodologies and subjective assumptions which are permitted underneath GAAP. Stock-based compensation is excluded from IDT’s calculation of non-GAAP internet revenue and non-GAAP EPS as a result of administration believes this permits traders to make extra significant comparisons of the working outcomes per share of IDT’s core business with the outcomes of different firms. However, stock-based compensation will proceed to be a big expense for IDT for the foreseeable future and an vital a part of workers’ compensation that impacts their efficiency.

In 4Q21 and 3Q21, attributable to continued and projected profitability, IDT was capable of launch a portion of its valuation allowance that was recorded in opposition to its deferred tax belongings. These revenue tax advantages have been excluded from IDT’s non-GAAP internet revenue and non-GAAP EPS as a result of they have been solely not directly associated to the outcomes of IDT’s core operations.

Adjusted EBITDA, non-GAAP internet revenue, and non-GAAP EPS must be thought-about along with, not as an alternative choice to, or superior to, revenue (loss) from operations, money movement from working actions, internet revenue, fundamental and diluted earnings per share or different measures of liquidity and monetary efficiency ready in accordance with GAAP. In addition, IDT’s measurements of Adjusted EBITDA, non-GAAP internet revenue, and non-GAAP EPS might not be akin to equally titled measures reported by different firms.

Following are reconciliations of Adjusted EBITDA, non-GAAP internet revenue, and non-GAAP EPS to probably the most immediately comparable GAAP measure, that are, (a) for Adjusted EBITDA, revenue (loss) from operations for IDT’s reportable segments and internet revenue for IDT on a consolidated foundation, (b) for non-GAAP internet revenue, internet revenue, and (c) for non-GAAP EPS, diluted earnings per share.

IDT Corporation
Reconciliation of Net Income to Adjusted EBITDA
(unaudited) in thousands and thousands. Figures could not foot or cross-foot attributable to rounding to thousands and thousands

IDT Corporation
Reconciliation of Net Income to Adjusted EBITDA
(unaudited) in thousands and thousands. Figures could not foot or cross-foot attributable to rounding to thousands and thousands.

IDT Corporation
Reconciliation of Net Income to Adjusted EBITDA
(unaudited) in thousands and thousands. Figures could not foot or cross-foot attributable to rounding to thousands and thousands

IDT Corporation
Reconciliations of Net Income to Non-GAAP Net Income and Earnings per share to Non-GAAP EPS
(unaudited) in thousands and thousands, besides per share information. Figures could not foot attributable to rounding to thousands and thousands.

*Explanation of Key Performance Metrics

NRS’ Monthly Average Recurring Revenue per Terminal is a monetary metric. Monthly Average Recurring Revenue per Terminal is calculated by dividing NRS’ recurring income by the common variety of lively POS terminals in the course of the interval. NRS’ recurring income is NRS’ income in accordance with GAAP excluding income from POS terminal gross sales. The common variety of lively POS terminals is calculated by including the start and ending variety of lively POS terminals in the course of the interval and dividing by two. NRS’ recurring income divided by the common variety of lively POS terminals is split by three when the interval is a fiscal quarter. Monthly Average Recurring Revenue per Terminal is beneficial for comparisons of NRS’ income per buyer to prior durations and to rivals and others out there, in addition to for forecasting future income from the shopper base.

BOSS Money’s Average Revenue per Transaction can be a monetary metric. Average Revenue per Transaction is calculated by dividing BOSS Money’s income in accordance with GAAP by the variety of transactions in the course of the interval. Average Revenue per Transaction is beneficial for comparisons of BOSS Money’s income per transaction to prior durations and to rivals and others out there, in addition to for forecasting future income based mostly on transaction tendencies.

net2phone’s cloud communications choices are priced on a per-seat foundation, with prospects paying based mostly on the variety of customers of their group. The variety of seats served and subscription income tendencies and comparisons between durations are used within the evaluation of net2phone’s revenues and direct value of revenues are robust indications of the top-line development and efficiency of the business.

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