IDT Corp reports Q1 adjusted EPS 94c, consensus 88c

Reports Q1 revenue $322.8M, consensus $300M. “IDT delivered consolidated revenue growth and record levels of gross profit and adjusted EBITDA in the first quarter. NRS led the top-line expansion, while all three of our growth segments reported strong bottom-line results. Our traditional communications segment again provided steady cash generation. NRS recurring revenue increased 22% year-over-year, helping to drive a 35% increase in income from operations and a 33% increase in Adjusted EBITDA. This quarter we continued to launch and build-out innovative premium services – delivery integrations, couponing, and product data scan programs to name a few. Our premium offerings are becoming important growth drivers, and factored into the large increase in average recurring revenue per terminal* this quarter. There is tremendous opportunity for additional, long-term growth through innovation both in NRS’s current and in adjacent markets. At BOSS Money, our digital channel continues to outperform retail, and that trend may accelerate as implementation of the new federal excise tax on cash remittances begins on January 1st. The Fintech segment’s income from operations and Adjusted EBITDA nearly doubled year-over-year, aided by BOSS Money’s increasing operating leverage and the enhanced profitability of other, smaller Fintech initiatives. Our push to integrate tailored AI and machine learning into BOSS Money customer service and fraud detection activities have helped to significantly improve unit economics. Looking ahead, we will soon introduce the first generation of the BOSS Wallet, enabling our U.S. customers to share cash and receive rewards. During the quarter, net2phone began offering its AI agent to both our existing and new customers, and added our Coach AI solution at the quarter’s end. Increasingly, our customers are ordering multiple net2phone offerings to enhance their operations and streamline workflows. As a result, we have pivoted from stand-alone product offerings to holistic solutions comprised of multiple offerings tailored to customers’ communications and workflows. This approach plays to net2phone’s product and distribution strengths, and we are very excited about the potential as we continue to add AI solutions. On a final note, the Delaware Supreme Court in a ruling issued yesterday affirmed the decision of the Court of Chancery dismissing all claims against IDT in the Straight Path class action suit, and we are very pleased that this case has now been favorably resolved,” stated Shmuel Jonas, CEO of IDT Corp (IDT).