IDT Corporation
Q1 2021 Earnings Call Transcript

Published: 3 Dec 2020

[Operator:]

Good evening, and welcome to the IDT Corporation's First Quarter Fiscal Year 2021 Earnings Call. In today's presentation, IDT's management will discuss IDT's financial and operational results for the three-month period ended October 31, 2020. During remarks by IDT’s Chief Executive Officer, Shmuel Jonas, all participants will be in listen-only mode. After the prepared remarks, Marcelo Fischer, IDT's Chief Financial Officer, will join Mr. Jonas for Q&A. Any forward-looking statements made during this conference call 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.

[Shmuel Jonas:]

Thank you, operator. Welcome to IDT’s first quarter fiscal year 2021 earnings call, covering results for the three months ended October 31, 2020. I'm joined today on the call by Marcelo Fisher, IDT’s Chief Financial Officer. For a detailed report on our financial and operational results, please read our earnings release filed earlier today in our Form 10-Q, which we expect to file with the SEC on December 10. Starting this quarter, we are disclosing our financial results in new reportable segments that more accurately reflect management's current view of the business and increasingly important contributions of our higher growth, higher margin businesses. Please see the earnings release for description of our new reporting segments. This was another strong financial quarter for IDT, with substantial year-over-year improvement in revenue less direct cost of revenue and bottom line results. All three of our high growth, higher margin businesses; BOSS Revolution Money Transfer, NRS and net2phone's cloud communications offerings generated impressive year-over-year revenue growth. In aggregate, these businesses have been contributing an increasing share of our consolidated revenue less direct cost of revenue, and this quarter their contribution topped 30%. Our money transfer business benefited, although significantly less this quarter from the same favorable foreign exchange market conditions that boosted our money transfer results last quarter. Within the new FinTech segment, BOSS Revolution Money Transfer revenue increased by $8 million to $15 million, driven by a 77% year-over-year increase in digital transaction volumes. Also within FinTech, NRS revenues increased 109% to $4.9 million, with payment processing and digital out-of-home advertising revenue leading the way. The COVID-19 pandemic has definitely impacted consumer spending patterns and many local convenience stores are benefiting from increased foot traffic. I am more excited than ever about the potential of our NRS business. Our most promising offerings, including advertising, payment processing and analytics have just begun to realize their potential. And we continue to grow our retail network, adding 450 to 500 new POS terminals a month.

[Operator:]

Well, at this time there appears to be no questions. This will conclude our question-and-answer session and the conference call. We thank you all for attending today's presentation. At this time, you may disconnect your lines. Take care, everyone.