IDT Corp (IDT) 2024 Q2 法說會逐字稿

Good evening, and welcome to IDT Corporation's Second Quarter Fiscal Year 2024 earnings call. And today's presentation, IDT's management will discuss IDT's financial and operational results for the three month period ended January 31st, 2024.

晚上好，歡迎參加 IDT Corporation 2024 財年第二季財報電話會議。在今天的演示中，IDT 管理層將討論 IDT 截至 2024 年 1 月 31 日的三個月期間的財務和營運表現。

During remarks by IDT's Chief Executive Officer, Shmuel Jonas. (Operator Instructions) After Mr. Jonas his remarks. Marcelo Fischer, IDT's Chief Financial Officer, will join Mr. Jonas for Q&A.

IDT 執行長 Shmuel Jonas 發表演說。（操作員指示）喬納斯先生講話後。IDT 財務長 Marcelo Fischer 將與 Jonas 先生一起進行問答。

Any forward-looking statements made during this conference 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 or in the Q&A session, IDT's management may make reference to non-GAAP measures, including adjusted EBITDA, non-GAAP net income and non GAAP earnings per share schedule provided in the IDT earnings release reconciles adjusted EBITDA, non-GAAP net income and non-GAAP earnings per share to the nearest corresponding GAAP measures. Please note that the IDT earnings release is available on the Investor Relations page of the IDT Corporation website. The earnings release has also been filed on Form eight K with the SEC.

本次會議期間在準備好的發言或問答環節中所做的任何前瞻性陳述。無論是一般性的還是特定性的，都存在風險和不確定性，可能導致實際結果與公司預期有重大差異。這些風險和不確定性包括但不限於 IDT 定期向 SEC 提交的報告中討論的特定風險和不確定性。IDT 不承擔更新其已做出或可能做出的任何前瞻性陳述的義務，也不承擔更新可能導致實際結果與其預測產生重大差異的因素的義務。的調整後EBITDA、非GAAP 淨利和非GAAP 每股盈餘表，將調整後EBITDA、非GAAP 淨利和非GAAP 每股盈餘與最接近的對應GAAP 進行調節措施。請注意，IDT 收益發布可在 IDT Corporation 網站的投資者關係頁面上取得。收益報告也以 8 K 表格的形式向 SEC 提交。

I will now turn the conference over to Mr. Jonas.

我現在將會議交給喬納斯先生。

Thank you very much. Welcome to IDT's Earnings Conference Call. My remarks today focused on the second quarter of our fiscal year 2020. For the three months ended January 31st, for a more detailed discussion of our financial and operational results for the quarter. Please read our earnings release filed earlier today and our Form 10 Q that we expect to file with the SEC on Monday, the second quarter was highlighted by the continued expansion of our growth businesses with both NRS and BOSS money, surpassing the $100 million annual revenue run rate milestone. However, our expense management was not where I wanted to be for the quarter, and I expect it will get better interest, continued to deliver robust recurring revenue per terminal. We again saw strong growth in merchant services and SaaS revenues and increased merchant services revenue per NRS. pay account. We added approximately 1,500 net new terminals to the interest network. This quarter, we did have some one-time costs related to bad debt, which affected our quarter best Boss money delivered another quarter of impressive results with 42% year-over-year revenue growth. Improving economics helped our FinTech segment to achieve adjusted EBITDA breakeven for the quarter. One key to the continued growth in this business has been our commitment to making money transfers faster, more convenient and secure for our customers. And to that end, we recently introduced an option for our US-based customers to send money directly to bank accounts to recipients Visa or MasterCard. We are seeing good customer response in the remittance corridors where we have launched this offering and will be extending the service to many other destinations in the coming months. I'm also very pleased with that trend increases increasing subscription revenue 19% year over year and achieving cash flow breakeven, which we measure as adjusted EBITDA less CapEx together, our combined growth segments propelled IDT to achieve another quarter of record consolidated gross profit and increased gross margin. The businesses within our traditional communications segment continued to generate strong cash flows over the past few months, we have been very focused on reducing our overhead and on streamlining our operations within our businesses and company, WILD and company-wide, you will see the benefits of these efforts in the third quarter and beyond.

非常感謝。歡迎參加 IDT 的收益電話會議。我今天的發言重點是 2020 財年第二季。截至 1 月 31 日的三個月，更詳細地討論了我們本季的財務和營運表現。請閱讀我們今天稍早提交的收益報告以及我們預計週一向 SEC 提交的 10 Q 表格，第二季度的亮點是我們利用 NRS 和 BOSS 資金持續擴張的成長型業務，年收入超過 1 億美元運行率里程碑。然而，本季我們的費用管理並未達到我想要的水平，我預計它將獲得更好的關注，繼續為每個終端帶來強勁的經常性收入。我們再次看到商家服務和 SaaS 收入的強勁成長，以及每 NRS 的商家服務收入的增加。支付帳戶。我們向興趣網淨新增約 1,500 個終端。本季度，我們確實有一些與壞帳相關的一次性成本，這影響了我們季度最佳 Boss 資金在另一個季度取得了令人印象深刻的業績，營收年增 42%。經濟狀況的改善幫助我們的金融科技部門在本季度實現了調整後 EBITDA 盈虧平衡。這項業務持續成長的關鍵之一是我們致力於為客戶提供更快、更方便、更安全的匯款服務。為此，我們最近為美國客戶推出了一項選項，可以將資金直接匯入 Visa 或 MasterCard 收款人的銀行帳戶。我們在匯款管道中看到了良好的客戶反響，我們已經推出了這項服務，並將在未來幾個月內將該服務擴展到許多其他目的地。我也對這一趨勢感到非常高興，訂閱收入同比增長19%，並實現現金流收支平衡（我們將其衡量為調整後的EBITDA 減去資本支出），我們的綜合增長部門推動IDT 又實現了一個季度創紀錄的綜合毛利，毛利率增加。在過去的幾個月裡，我們傳統通訊部門的業務繼續產生強勁的現金流，我們一直非常注重減少管理費用，並簡化我們的業務和公司、WILD 和全公司範圍內的運營，您會看到好處第三季及以後的這些努力。

Now I want to provide some context our Board's decision to initiate a quarterly cash dividend and our SBOS. money and it will no longer need new cash investments to fund their organic growth. In aggregate, they've become significant contributors to our bottom line, and we expect them to continue to increase those bottom line impact. Meanwhile, we expect cash flows from our traditional business to continue to remain robust for years to come. The strength of our operational results and our balance sheet, including our enhanced liquidity provides us with flexibility as we invest in the development of our next generation of exciting early-stage initiatives and scout for other growth opportunities and other countries in which to add our services in light of our robust financial position and positive outlook, the Board felt that we should supplement our ongoing program of optimism of opportunistic stock buybacks, which can vary from quarter to quarter with regular predictable dividend payments to our stockholders.

現在我想介紹一下我們的董事會決定啟動季度現金股利和我們的 SBOS 的背景。資金，它將不再需要新的現金投資來為其有機成長提供資金。總的來說，他們已經成為我們利潤的重要貢獻者，我們預計他們將繼續增加這些利潤的影響。同時，我們預計傳統業務的現金流在未來幾年將繼續保持強勁。我們的經營業績和資產負債表的實力，包括我們增強的流動性，為我們投資開發下一代令人興奮的早期計劃並尋找其他增長機會和其他國家來增加我們的服務提供了靈活性。穩健的財務狀況和積極的前景，董事會認為我們應該補充我們正在進行的機會性股票回購的樂觀計劃，該計劃可能會因季度而異，並定期向股東支付可預測的股息。

To wrap up, I want to thank our employees at all our offices worldwide for their hard work to make these results possible and thank our Board for their support. Now Marcel and I will be happy to take your questions.

最後，我要感謝我們全球所有辦公室的員工為實現這些成果所做的辛勤工作，並感謝我們董事會的支持。現在，馬塞爾和我很樂意回答您的問題。

(Operator Instructions) William Vodafone, Korea.

（操作員說明）William Vodafone，韓國。

Hi, gentlemen. Congratulations on a great quarter. I just wanted to ask about what you're seeing in terms of the cost of the consumer base off the NRS. business, what trends are you seeing in that type of consumer in terms of spending in terms of inflation?

嗨，先生們。恭喜您度過了一個美好的季度。我只是想問一下您對 NRS 以外的消費者群的成本有何看法。企業，您認為這類消費者在通貨膨脹方面的支出有何趨勢？

Follow-up question, would be, what are you seeing in terms of acquisition opportunities or expanding to different businesses?

後續問題是，您在收購機會或擴展到不同業務方面看到了什麼？

The different bit on the question on well, I mean, the first thing I would say is you know, we've put out on a monthly report called the NRS insights on that are that our data team provides on push. If you if you don't get I suggest to them you look it up. I mean, I can give you the data points come from. I don't want to like give away the report before before we publish it, but I'll give you on just a couple of pieces for permit on which I think are probably the highlights you're looking for. So but overall, I think that the stores are doing pretty well and you know, not as some definitely, I would say that from an inflation standpoint, it's moderated quite a bit like the average price increases for February were 1.2% year over year on and same store sales kind of on February of this year versus February of some last year, increased 3.5%. However, there was one day more. So I'm not sure on what I think we might normalize for that.

關於這個問題的不同之處在於，我的意思是，我要說的第一件事是，我們已經發布了一份名為 NRS 見解的月度報告，我們的數據團隊在推送中提供了該報告。如果你不明白，我建議他們你去查。我的意思是，我可以給你數據點來自哪裡。我不想在發布報告之前就將其洩露出去，但我只會向您提供一些許可的內容，我認為這些內容可能是您正在尋找的亮點。所以，但總體而言，我認為商店的表現相當不錯，你知道，但不是像某些商店那樣絕對，我想說，從通貨膨脹的角度來看，它的表現相當溫和，就像2 月份的平均價格較去年同期上漲1.2% 一樣。然而，還有一天。所以我不確定我們可能會對此進行正常化。

I think we take it as it is actually, I think it's actually 3.5% once you normalize for that?

我認為我們按實際情況看待，一旦標準化，我認為實際上是 3.5%？

Correct, Tom, and then some and then from January, like there's a decent bump, I think US sales up about 7.4% on. So I don't like the big picture numbers from the insights you can when the report comes out on Friday, you can read the rest of it on as far as on an as far as where the business is going and the types of acquisitions that we're looking at on. I would say that on in net own, we're not really looking to make any large acquisitions. I mean, we think that we have a lot of projects that are being worked on internally, and we're very happy with the pace there on in the remittance side of the business, you know, we've looked at possibly adding on certain channels or countries that were not so strong and you know, to sort of gain a foothold and then expand upon that one or two that we had been, you know, looking at a relatively recently ended up really not hitting our qualifications and we decided not to go ahead with them on but we're always in the market looking for, you know, acquisitions that will help our bottom line. And as I said, help us grow into new countries and new verticals on as far as zoning, you know, NRS. feels that there are some small acquisitions from that that we are looking at. We just made an acquisition in the restaurant technology spaced on to help us get into into that vertical on. But but we overall, I would say that were on we're really more focused on growing organically. I know that some not as maybe as exciting, but we think we do pretty well, and we're going to continue that trying to grow things organically.

是的，湯姆，然後是一些，然後從 1 月開始，好像有一個不錯的增長，我認為美國銷售額增長了約 7.4%。因此，我不喜歡週五報告發佈時所提供的大數據，您可以閱讀報告的其餘部分，了解業務的發展方向以及收購的類型。我想說的是，在淨資產方面，我們並不真正希望進行任何大型收購。我的意思是，我們認為我們有很多正在內部開展的項目，我們對匯款方面的業務進展感到非常滿意，你知道，我們已經考慮過可能增加某些項目不太強大的渠道或國家，你知道，為了獲得立足點，然後擴展我們一直以來的一兩個管道或國家，你知道，相對最近的結果確實沒有達到我們的資格，我們決定不這樣做繼續與他們合作，但我們一直在市場上尋找有助於我們獲利的收購。正如我所說，幫助我們在分區方面發展到新的國家和新的垂直領域，你知道，NRS。感覺我們正在考慮進行一些小型收購。我們剛剛在餐廳技術領域進行了一次收購，以幫助我們進入這個垂直領域。但總的來說，我想說的是，我們確實更注重有機成長。我知道有些可能不那麼令人興奮，但我們認為我們做得很好，我們將繼續嘗試有機地發展事物。

Jason Lassik.

賈森·拉西克。

I'm just curious how you're thinking about spinoffs from potential spinoff of that to phone and RS. and layer them both being free cash flow breakeven or better going forward.

我只是好奇你是如何考慮從手機和 RS 的潛在衍生品衍生出來的。並將它們分層，以實現自由現金流盈虧平衡或未來更好。

And I would say that we're not looking to do anything imminently on. I mean, as I talked about on the Investor Day, I mean, I think a big piece of that is on how the how the market some perceive things, particularly in the net to phone area. The market is still really not been particularly strong for companies in, I'll say, in our verticals, even though I think we're by far the best on, it's still in the yard. You know, when you're in a weak vertical, you get judged amongst them as well as ask for interest. I think one day it's going to make, you know, a great independent company on. And I think that, you know, when the right time for us to spin off is I can't comment on that today, but we continue to to build it for to become much more valuable than it is now.

我想說的是，我們不打算立即採取任何行動。我的意思是，正如我在投資者日談到的那樣，我認為其中很大一部分是市場如何看待事物，特別是在網路到電話領域。我想說，對於我們垂直領域的公司來說，市場實際上仍然不是特別強勁，儘管我認為我們是迄今為止最好的，但它仍然在院子裡。你知道，當你處於弱勢時，你會受到他們的評判並索取興趣。我認為有一天它會成為一家偉大的獨立公司。我認為，你知道，當我們分拆的正確時機時，我今天無法對此發表評論，但我們將繼續打造它，使其變得比現在更有價值。

Okay. Thank you.

好的。謝謝。

Thank you, Jesse.

謝謝你，傑西。

(Operator Instructions) William Vodafone, Korea.

（操作員說明）William Vodafone，韓國。

Your line is open again of size. But no, you mentioned this might have been during the CAO. meeting on that in the Fast Money business or the money transfer business, you know that the key is getting to scale. So getting to a scale where you can reach profitability and getting that transaction volume through. And so with the for reaching adjusted EBITDA breakeven, this quarter. Do you feel like you've reached that point of scale where you're going to get future profitability in that business? And can you talk a little bit more about the trends you're seeing there?

您的生產線再次開放。但不，你提到這可能是在 CAO 期間。在快速資金業務或匯款業務中，您會知道關鍵是擴大規模。因此，達到可以實現盈利並實現交易量的規模。本季調整後的 EBITDA 損益平衡也是如此。您是否覺得您已經達到了該業務未來能夠獲利的規模？您能多談談您在那裡看到的趨勢嗎？

What do you think the long-term profit it could be and, you know, it's not a simple question to enter on as you would think. I mean what I would say it's, you know, I mean, you know, we sort of said, you know that if we continue to grow the business at sort of like half the pace that we've been growing it at, we could see it getting to I think you said 14 to 15 million of profitability and from that part of the business over the next two to three years on.

您認為長期利潤可能是多少，您知道，這不是像您想像的那樣簡單的問題。我的意思是，我想說的是，你知道，我的意思是，你知道，我們說過，你知道，如果我們繼續以我們一直在增長的一半的速度發展業務，我們可以我想你說過14 到1500 萬的獲利能力，以及未來兩到三年內這部分業務的獲利能力。

The one thing I would say is like it's all dependent on how much you want to invest back into firing more customers and growing verticals that you're not as strong in. So you know, I mean, you can pick any country, but, you know, pick a Vietnam like today, we have no volume to Vietnam. If we wanted to get into Vietnam. There's really two ways of doing it. You can either acquire, you know, another company that has, you know, volume to Vietnam and or you can spend a lot more than you have to, you know, acquiring customers and, you know, sort of overpaying on on the payout side on, you know, and hope that once you get to a larger base of customers, you'll, you know, you'll then figure out how to maximize the profits on it on. So we've sort of taken the approach of really trying to be like much more focused on verticals that we already had no penetration on in our calling business or in our type of business and really trying to like move customers from from one place to another on, but it's definitely going to be a, you know, a profitable and growing part of our business. So I mean, I don't know if that answers your question.

我想說的一件事是，這完全取決於你想投資多少來吸引更多客戶和發展你不那麼擅長的垂直領域。所以你知道，我的意思是，你可以選擇任何國家，但是，你知道，選擇像今天這樣的越南，我們對越南沒有交易量。如果我們想進入越南。實際上有兩種方法可以做到這一點。你可以收購另一家在越南有業務量的公司，或者你可以花費比你必須花的更多的錢來獲取客戶，你知道，在支付方面支付過高的費用你知道，並希望一旦你獲得了更大的客戶群，你就會知道如何最大化利潤。因此，我們採取了一種方法，真正嘗試更加專注於我們在呼叫業務或我們的業務類型中尚未滲透的垂直行業，並真正嘗試將客戶從一個地方轉移到另一個地方繼續，但它肯定會成為我們業務中一個有利可圖且不斷成長的部分。所以我的意思是，我不知道這是否回答了你的問題。

Marcel, you have anything to add?

馬塞爾，你還有什麼要補充的嗎？

Maybe I'll take it would be I'm just sort of just put a little more context is that obviously the money I cancel business Boss May is the lion's share of the FinTech segment in terms of revenue, and that's part of the build of bus body. I've been generating positive EBITDA now for the last two quarters, and we did that in a bit more than a million dollars in positive EBITDA at the last six months. So it's doing well in that EBITDA continues to grow as it scales. But to some extent, got money back now growing into funding all the investments in that segment, right? We have our Gibraltar Bank, which is at the cusp of a single food at full license and to operate with a full bank. We have our initiatives in online banking in the online bank already on the bank. So you brought out in the fact that kind of mostly premium the pre-revenue at this stage of some of them. And so and it requires investment three kind of investing in those initiatives.

也許我會這麼認為，我只是多說一點背景，顯然我取消梅老闆業務的資金在收入方面佔據了金融科技領域的最大份額，這是構建的一部分巴士車身。在過去的兩個季度中，我一直在產生正的 EBITDA，並且在過去六個月中，我們的正 EBITDA 略高於 100 萬美元。因此，它的表現良好，因為 EBITDA 隨著規模的擴大而持續成長。但在某種程度上，收回的資金現在已經用於為該領域的所有投資提供資金，對吧？我們有直布羅陀銀行，該銀行正處於單一食品的風口浪尖，擁有完全許可並與完整的銀行一起運作。我們已經在網路銀行推出了網路銀行的措施。所以你指出了這樣一個事實，其中一些公司現階段的預收入大部分都溢價了。因此，它需要對這些舉措進行三種投資。

Now with the cash flows from Money Transfer at this point. But going back to the money traffic topic and to your earlier comment, took up a lot of the acquisitions that we have looked at in the last few months, we're focused on the money transfer space. We do believe that scale matters hugely in terms of getting to higher profitability in that in that industry and growing organically have been good for us. We've been growing at around 35, 40% clip, which is excellent, better than auto or the industry, but being able to supplement that with some acquisitions. So if I make a lot a lot of sense in reaching scale, if you looked at a few of them at a more measured pace than what we looked at so far have not met our criteria and we're going to really continue to look at now some future opportunities in that area.

現在是來自匯款的現金流。但回到資金流量主題和您先前的評論，我們在過去幾個月中考慮了許多收購，我們專注於資金轉移領域。我們確實相信，規模對於在該行業獲得更高的盈利能力至關重要，並且有機成長對我們有利。我們的成長率一直在 35% 到 40% 左右，這非常好，比汽車或行業更好，但能夠透過一些收購來補充。因此，如果我在達到規模方面有很多意義，如果你以比我們迄今為止所看到的更謹慎的速度來審視其中一些，則沒有達到我們的標準，我們將繼續關注現在該領域的一些未來機會。

Okay. Thanks.

好的。謝謝。

(Operator Instructions)

（操作員說明）

Bill Monett, Private investor.

比爾·莫內特，私人投資者。

Hi, guys.

嗨，大家好。

Just a question.

就一個問題。

I see cash balances are building fairly rapidly. You guys have stated that our big acquisitions do not seem to be part of the plan now and your businesses are self-funded, I know put in a small dividend, $5 billion a year. That will be at this point.

我發現現金餘額正在迅速增加。你們已經表示，我們的大型收購現在似乎不在計畫中，你們的企業都是自籌資金，我知道每年投入少量股息，50 億美元。那將是在這一點上。

You have enough place for the cash.

你有足夠的地方放現金。

It seems to be building up fairly rapidly. Does it seem that there's many uses for it? I mean either acquisitions or stock buybacks, that's really the two main places.

它似乎正在迅速建立。看起來是不是有很多用途？我的意思是收購或股票回購，這確實是兩個主要的地方。

Thank you.

謝謝。

Yes, thank you.

是的，謝謝。

Okay. It looks like we have no further questions in queue. As there are no more questions, this concludes our question and answer session and conference call. Thank you for attending today's presentation. You may now disconnect.

好的。看來我們沒有其他問題了。由於沒有更多問題，我們的問答環節和電話會議到此結束。感謝您參加今天的演講。您現在可以斷開連線。