In This Article:
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Gross Profit: Record levels achieved.
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Income from Operations: Record levels achieved.
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Adjusted EBITDA: Record $34 million in Q2; total $63 million for the first half of the year.
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NRS Revenue Growth: 32% increase in recurring revenue.
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NRS Adjusted EBITDA: Exceeded $10 million.
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Boss Money Transaction Volume: Record 5.7 million transactions.
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Fintech Segment Gross Profit: 35% growth to a record $22 million.
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Nettaphone Revenue: Increased 9% to $21 million; 14% increase on a constant currency basis.
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Traditional Communications Segment Adjusted EBITDA: Over $20 million in Q2, a 90% year-over-year increase.
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Operating Cash Flow: $7 million in Q2, compared to $25 million in the same quarter last year.
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Dividend Increase: Quarterly dividend increased by 20%.
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Share Repurchases: 179,000 shares for $8.5 million in Q2; 380,000 shares for $16 million over the past 12 months.
Release Date: March 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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IDT Corp (NYSE:IDT) reported record levels of gross profit, income from operations, and adjusted EBITDA for the second quarter.
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The company's NRS segment achieved a 32% revenue growth and exceeded $10 million in adjusted EBITDA.
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Boss Money experienced strong year-over-year transaction and revenue growth, with digital transactions representing over 80% of remittances.
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The traditional communications segment increased adjusted EBITDA for the third consecutive quarter, surpassing $20 million.
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IDT Corp (NYSE:IDT) increased its regular quarterly dividend by 20% and repurchased a record level of shares, demonstrating strong shareholder returns.
Negative Points
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Operating cash flow generation was significantly lower compared to the same quarter last year, primarily due to the timing of cash balances.
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The company is experiencing slower revenue growth in Boss Money due to a focus on optimizing gross profit per transaction.
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NRS is slightly behind its target for adding new terminals, attributed to the need for training new salespeople.
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Foreign exchange fluctuations negatively impacted Net2Phone's revenue growth in dollar terms.
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Concerns were raised about IDT Corp (NYSE:IDT)'s conservative approach to investing in growth, particularly in the competitive Boss Money segment.
Q & A Highlights
Q: Can you provide an update on NRS's terminal growth and advertising revenue? Are there plans for international expansion? A: Advertising revenue increased by 12% year over year, with a significant 40% growth in the data side of the business. Regarding international expansion, it's not a current focus due to the growth opportunities in the U.S. However, if pursued, it would likely be through acquisitions. Terminal growth is slightly behind expectations, but efforts are being made to catch up with new salespeople being trained.