NYSE$IDT

IDT Corporation · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

IDT's high-margin, high-growth businesses drove solid consolidated income from operations and Adjusted EBITDA.

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.

Headline financials

Total Revenue

$328M

Previous: $374M-12.2%
EPS (adj)

$0.23

Previous: $0.47-51.1%
Capital Expenditures

-$13.8M

Previous: -$13.5M-2.5%
Free Cash Flow

-$9.02M

Previous: $22.9M-139.4%
Net Income

$4.77M

Previous: $36.3M-86.9%
Operating Income

$13.3M

Previous: $13.9M-3.9%
Gross Profit

$80.8M

Previous: $73M+10.6%
Cash & Equivalents

$136M

Previous: $128M+6.6%
Total Assets

$503M

Previous: $462M+9.0%
Stock-Based Comp

$1.25M

Previous: $275K+352.7%

Revenue & EPS history

IDT · Revenue · Quarterly

$328M

Q3 2022-12.2%vs Q3 2021

Revenue by segment

IDT · $346M total across 4 segments · Q3 2022

  • IDT Global
    $286M
  • National Retail Solutions
    $28.6M
  • net2phone
    $16.4M
  • BOSS Money
    $15.5M+50.5%

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.

Tailwinds

  • 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.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+2.1%

Avg return

Earnings day

+2.8%

Avg return

5 days after

+1.7%

Avg return

30 days after

61%

40 / 66 earnings

Positive

+45.4%

Q4 2020

Best reaction

-20.9%

Q2 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+2.7%+3.7%
Q2 2026-3.9%-7.4%-3.8%
Q1 2026-3.0%+0.1%+0.6%
Q4 2025-18.4%-22.7%-20.9%
Q3 2025-0.2%+1.6%-3.8%
Q2 2025+10.2%+6.1%+5.9%
Q1 2025+5.4%+5.3%-5.6%
Q4 2024+22.3%+26.0%+31.1%
Q3 2024-5.9%-8.0%-10.2%
Q2 2024-1.6%+1.8%-0.2%
Q1 2024+1.5%+5.2%+14.3%
Q4 2023+4.5%+8.2%+2.9%
Q3 2023-5.1%-13.2%-19.3%
Q2 2023+4.7%+9.1%+7.2%
Q1 2023+11.6%+9.3%+2.5%
Q4 2022+10.9%+5.7%+6.7%
Q3 2022-1.7%-11.9%-13.9%
Q2 2022-2.0%-4.5%-1.9%
Q1 2022-4.0%-9.0%-13.3%
Q4 2021+10.6%+14.9%+25.7%
Q3 2021+15.0%+35.3%+53.9%
Q2 2021+4.1%+13.5%+25.7%
Q1 2021+12.2%+8.4%-0.8%
Q4 2020+45.4%+69.6%+44.8%
Q3 2020+2.5%-5.5%-5.5%
Q2 2020-12.1%-19.2%-36.1%
Q1 2020-6.1%-7.5%-1.7%
Q4 2019-0.9%-5.1%-25.4%
Q3 2019+8.3%+14.0%+71.3%
Q2 2019+5.8%+11.0%+17.5%
Q1 2019-6.4%-6.7%-18.3%
Q4 2018+40.9%+49.8%+44.3%
Q3 2018+22.9%+15.2%+10.3%
Q2 2018+0.1%-2.3%-42.2%
Q1 2018-19.4%-26.6%-30.1%
Q4 2017-5.6%-4.6%-7.8%
Q3 2017-20.3%-15.8%-17.5%
Q2 2017-20.5%-32.2%-32.6%
Q1 2017-9.8%-14.3%-15.2%
Q4 2016+7.3%+7.6%+10.7%
Q3 2016+7.1%+10.1%+19.7%
Q2 2016+3.8%
Q1 2016+12.0%
Q4 2015-9.6%
Q3 2015+5.5%
Q2 2015-20.9%
Q1 2015-0.1%
Q4 2014-10.6%
Q3 2014+4.1%
Q2 2014-6.1%
Q1 2014-10.5%
Q4 2010+5.4%
Q4 2013+6.7%
Q3 2013+9.9%
Q2 2012+4.9%
Q2 2013+0.6%
Q1 2013+0.6%
Q2 2011+1.5%
Q4 2012-2.8%
Q3 2011+5.9%
Q3 2012+3.7%
Q4 2011+0.8%
Q1 2012+0.8%
Q1 2011+0.8%
Q3 2010+8.3%
Q2 2010+15.9%

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