IDT CORP Q4 FY2024 earnings call

• NRS continued progress on strategic priorities: expanding customer base in independent retailers, growing NRS Pay, developing POS solutions, building advertising tech, deploying hundreds of new locations monthly.
• BOSS Money achieved over 40% Y/Y transaction volume and revenue growth in Q4, Fintech segment had first positive cash flow generation, economics improving with business scaling.
• net2phone added ~12,000 net new seats in Q4, adjusted EBITDA margin more than doubled, focused on volume growth and revenue per user via CCaaS expansion and premium plan migration.
• Traditional Communications improved economics, saw payoff from 2024 cost cuts, mobile top-up business had pricing changes to moderate segment decline.
• IDT enters FY2025 with strong momentum, NRS, BOSS Money, net2phone profitable with long growth runways, focus on driving expansion and new growth initiatives, maximizing cash generation, and returning value to stockholders.

NRS: Expanded customer base in large independent retailer market, increased NRS Pay penetration, developed point of sale solutions for new verticals, built out advertising tech, deploying hundreds of new locations monthly. BOSS Money: Fourth quarter year-over-year transaction volume and revenue growth over 40%, Fintech segment achieved first quarter of positive cash flow generation, economics improving as business scales. net2phone: Added approximately 12,000 net new seats in Q4, including 2,000 CCaaS seats, adjusted EBITDA margin more than doubled, focused on volume growth and increasing revenue per user by expanding CCaaS offering and migrating to premium plans. Traditional Communications: Significantly improved economics, saw payoff from cost reduction initiatives in FY2024, mobile top-up business made pricing changes to contribute to moderation in segment decline.

• Marcelo mentioned FY2025 EBITDA could surpass $100 million as soft guidance.
• Traditional segment decline expected to be less than $11 million in FY2025, likely around $5-6 million.
• BOSS Money expected to deliver over $10 million in EBITDA in FY2025, focusing on improving gross margin per transaction (GMPT) through pricing changes despite potential top-line impact.
• net2phone focused on further improving bottom-line via volume growth and revenue per user increase from CCaaS expansion and premium plan migration.

Q: On MetaSwitch end-of-life and net2phone's platform migration, Shmuel Jonas said it has no effect on business, expects to migrate more customers in coming quarters with no new customers on other platforms, no hard timeline for full transition.

Q: On NRS potential spin-off, Shmuel Jonas said focused on building NRS into multibillion-dollar company, will consider spin-off when time is right.

Q: On BOSS Money growth, Shmuel Jonas said taking share from competitors, cross-selling services, focusing on profitable customer relationships; Marcelo Fischer mentioned BOSS Money brand becoming stronger, growth in digital verticals.

Q: On NRS deployment and verticals, Shmuel Jonas said focusing on hotel lobbies, QSR, liquor stores, gas stations, hiring for liquor store division, sold out of kiosks but expecting more shortly.

Q: On BOSS Money nationwide growth, Shmuel Jonas said focused on profitable locations, not just number of locations, majority growth in digital verticals.