Q3 2020 IDT Corp Earnings Call

Good morning, or good afternoon, and welcome to the IB T corporations third quarter fiscal year 2020 earnings call.

In today's presentation, I'd Tees management will discuss I'd piece financial and operational results for the three month period ended April Thirtyth 2020.

During prepared remarks by I'd Keyes, Chief Executive Officer Shmuel Jonas.

All participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing the star Keith followed by zero.

After the prepared remarks, Marcelo Fischer I'd piece, Chief Financial Officer will join Mr., John that's for queuing <unk>.

Any forward looking statements made during this conference call either in the prepared remarks or in the queue any 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 I'd T. files periodically with the FCC.

I'd T. 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.

And their presentation or in the queue and <unk> session I'd Tees management may make reference to non-GAAP measures, including adjusted EBITDA non-GAAP net income and non-GAAP EPS.

It's scheduled provided in the <unk> earnings release reconciles adjusted EBITDA non-GAAP net income and non-GAAP EPS to the nearest corresponding GAAP measures.

Please note that <unk> earnings release is available on the Investor Relations page of the I.D.T. Corporation website, Www Dot I'd T dot net.

Earnings release has also been filed on form 8-K with the FCC.

I will now turn the conference over to Mr. Joseph Please go ahead.

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Hi, Thank you operator wasn't diabetes third quarter fiscal 2020 earnings call covering results for the three months ended April Thirtyth 2020.

I'm joined today on the cool wet Marcellus Fisher I did she was chief financial Officer.

For more detailed report on our financial and operational results. Please read our earnings release filed earlier today in our form 10-Q, which we will file with the FCC next week.

I want to start the call, but thinking our team worldwide, who did just incredible job rapidly transitioning to work from home. It did not Miss a beat turns terrible pandemic.

This is especially noteworthy when you consider that so many members Bert team.

I don't see multiple day jobs like assistant teachers caretakers first take will.

Then volunteer first responders in their communities.

Well one of the thinking Recognizer frontline sales people and delivered teammates.

Continuing to serve our retailers and channel partners throughout this challenging.

Thank you team I'd be too.

Turning now to our fiscal Q3 financial performance results for the third quarter were highlighted by both the resilience of our business.

And increased contribution from our higher margin growth initiatives, which more than offset the decrease in contribution from our lower margin core offerings.

In our core offerings boss Revolution, calling revenue encouraged there because revenue both decline.

Partially offset by continued growth in mobile top up revenue.

The rate of decline in boss Revolution, calling of new slowed compared to recent quarters, well sell from lower margin mobile top up jump.

Both boss Revolution, calling into her services improved our margin contribution as a percentage of revenue compared to year ago corridor, that's moving much of the impact of their respective revenue decreases on our bottom line.

At the same time, our growth business initiatives turned in a very impressive quarter.

Boss Revolution money transfer revenue nearly doubled compared to the year ago corridor.

Increasing to $11.8 million, despite the fact that roughly one quarter by money transfer retailers.

And it operations during March and April.

The overall international minutes transaction volume increased significantly for the quarter driven by digital channels through our money out.

Also leveraging the strength of the U.S. dollar to take advantage of temporary foreign exchange market opportunity that increase money transfer is revenue and margin contribution.

On the other hand and make us on were approximately one half of our next when you cats revenues are generated outside the U.S.

The strong dollar work again.

Yes.

Reducing dollar translated revenue and margin. In addition, the spread of Cowen 19 internationally.

The pace of new customer acquisition through the channel.

Despite these headwinds next don't increase seats are like 64% year over year, an 11% sequentially to 137000, well you can subscription revenue exclusive of equipment sales increased by 34.6% year over year, and 3% sequentially to $7.7 million.

In the long run, though coping 19 may end up accelerating changes in the marketplace, placing that strikes.

Dependent could accelerate even globalizing the transition to remote work.

Home for employees and companies worldwide, and our international presence and expanding suite of communications and collaboration tool position not only extremely well for long term growth.

Speaking of <unk> collaboration tool last quarter, I discussed net new integration with Microsoft <unk>.

This quarter. We also released in data our secure video conferencing solution. That's a phone call I want to take our development team for their efforts accelerate the product launch so that our customers can use it when its needed most.

National retail solutions also had a strong quarter, increasing revenue by 87.9% year over year led by very strong increases in all areas of the business.

This quarter, we also launched the be our club a shopping and loyalty up that allows customers to easily order food or other items from our interest stores either for pickup or delivery, which turned out to be an opportune time for the launch.

Cross all our businesses, we're very focused on adopting to meet the evolving needs of our customer as the pandemic, including its potentially longer term affects plays out.

I'd team has done our I'd team has done a very good job addressing the challenges and opportunities presented thus far however, we remain one for the current economic conditions, if they indoor will create additional hardship for many of our customers over the coming on.

I'm Russell and I'd be happy to take your question.

[laughter].

We will now begin a question and answer session.

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This time, we will pause momentarily to assemble the roster.

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As there are no more questions. This concludes our question and answer session as well as the conference call.

Thank you for attending today's presentation and you may now disconnect.