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Apr 30, 2022
IDT Q3 2022 Earnings Report
IDT's high-margin, high-growth businesses drove solid consolidated income from operations and Adjusted EBITDA.
Key Takeaways
IDT Corporation reported strong third-quarter results, driven by the performance of its high-margin, high-growth businesses. NRS added nearly 1,400 net POS terminals and 1,200 net payment processing accounts. net2phone's subscription revenue increased 42% year-over-year, and BOSS Money's revenue increased 51%. However, Traditional Communications revenue decreased by $59.9 million, impacting overall income from operations.
NRS added nearly 1,400 net POS terminals and 1,200 net payment processing accounts.
NRS recurring revenue increased 102% year-over-year.
net2phone's subscription revenue increased 42% year-over-year with the addition of approximately 22,000 seats.
BOSS Money's revenue increased 51% driven by a 27% increase in transaction volumes.
IDT
IDT
IDT Revenue by Segment
Revenue by Segment
NRS Revenue
CapyFin.comBOSS Money Revenue
CapyFin.comnet2phone Revenue
CapyFin.com Forward Guidance
IDT expects NRS to sustain robust, high-margin growth. net2phone will begin selling its CCaaS offering in North America. BOSS Money continues to build out its disbursement networks and fine-tune its direct-to-consumer pricing strategies.
Positive Outlook
- NRS is expected to sustain robust, high-margin growth in the coming quarters.
- Advertising and data offerings will benefit from long-term trends and seasonal tailwinds.
- net2phone will begin selling its CCaaS offering in North America in the current quarter.
- net2phone expects its CCaaS expansion to gradually become a key driver of seat growth and ARPU expansion.
- BOSS Money continues to build out its disbursement networks, particularly in Africa and the Caribbean.
Challenges Ahead
- The surge in demand for paid voice during the COVID pandemic is now retreating.
- The retreat in demand exacerbates the impact of underlying declines in retail calling and wholesale carrier services.
- Mobile Top-Up business underperformed this quarter.
- Traditional Communications' lost revenue was skewed to lower margin sales.
- Income from operations from Traditional Communications decreased $3.0 million year-over-year.