Q1 2021 IDT Corp Earnings Call

Good evening and welcome to the <unk> corporations first quarter fiscal year 2021 earnings call and today's presentation, I'd piece and as well.

Scott I'd teach financial and operational results for the three month period ended October 31st 2020.

During the remarks by the teeth, Chief Executive Officer smell Jonas.

All participants will be in listen only mode should you need assistance for placing all conference specialist by pressing the star key followed by <unk>.

After the prepared remarks, Marcellus Marcelo Fischer <unk>, Chief Financial Officer will join Mr., John That's for Q1 day and.

Any forward looking statements made during this conference call either in the prepared remarks for and the Q and <unk> session.

Whether general or specific in nature are subject to risks and uncertainties that may cause actual results to differ material materially from those which the company anticipates.

These risks and uncertainties include but are not limited to specific risks and uncertainties discussed and of course, the I'd T. files periodically with the FCC.

The 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 and that they forecast.

And their presentation or and the Q and a session I'd piece Madison and they make references to non-GAAP measures included adjusted EBITDA.

Adjusted EBITDA less Capex non-GAAP net income and non-GAAP earnings per share.

The schedule provided and the I.D.T. earnings release reconciles adjusted EBITDA adjusts.

Adjusted EBITDA less Capex non-GAAP net income and non-GAAP earnings per share to the nearest corresponding GAAP measures. Please note. The RTT earnings release is available on the Investor Relations page of the <unk> Corporation website. The earnings release has also been filed on form 8-K, and what the FCC.

And now I'll turn the conference over to Mr. Jonas.

Thank you operator, welcome diabetes first quarter fiscal year 2021 earnings call covering the results for the three months ended October 31st 2020.

I'm joined today, and the cold and must still of Fischer <unk> Chief Financial Officer for.

For a detailed report on our financial and operational results. Please read our earnings release filed earlier today and our form 10-Q, which we expect the file with the FCC on December 10.

Starting this quarter, we are disclosing our financial results and new reportable segments of the more accurately reflect management's current view of the business and the increasingly important contributions of our higher growth higher margin businesses.

Please see the earnings release for a description of our new reporting segments.

This was another strong financial quarter Friday Ti for substantially year over year improvement and revenue less direct cost of revenue and bottom line results well.

All three of our high growth higher margin businesses boss Revolution money transfer interest and that's on the cloud communications offerings generated impressive year over year revenue growth in aggregate. These businesses have been contributing and the increasing share of our consolidated revenue less direct cost of revenue and this quarter their contribution top 30%.

Our money transfer business benefited although significantly low this quarter and from the same favorable foreign exchange market conditions that boosted our money transfer results last quarter within the news and took segment boss Revolution money transfer revenue increased by $8 million, the $15 million driven by 77% year over year.

Chris and digital transaction volume also within syntax interest revenue increased 109% of $4.9 million the payment processing and digital out of home advertising revenue, leading the way the.

The COVID-19 pandemic has definitely impacted consumer spending patterns and many local convenience stores are benefiting from increased for traffic and.

I'm more excited than ever about the potential of our interest business, our most promising offerings, including advertising payment processing and analytics have just the gun to realize their potential and we continue to grow our retail network, adding 450 to 500, new Pos terminals and Mark.

We expect the pace of growth to accelerate once called the vaccines are widely available by the end of the quarter. We were building for over 12000 deployed terminals.

Net total cloud communications business now reported at the next when you kind of segment increased revenue by a third compared to the year ago corridor and $9.6 million.

I was particularly happy to see strong sick sequential growth.

Latin American markets. Many of these markets flow early in the year as the result of cope with 19 lots and subscription revenue increased 3% sequentially and our business there should benefit from expansion to new markets going forward. We also recently launched and Peru, the six largest market and Latin America, and we will add six more cities and Brazil.

Before the end of the current second quarter. So as you can hear and see we are investing heavily and sales growth yes.

We also continue to invest aggressively and product development and we're confident that this will position that the phone for and even more impressive growth going forward and turning.

Turning now to our traditional communication segment.

The boss Revolution, calling and mobile top up both had a good quarter continuing the trend since the onset of COVID-19 pandemic.

Well our carrier services business continued to be impacted by the pandemic related losses International corporate voice traffic in aggregate revenue for the segment decreased by $10 million, the 314 million well adjusted EBITDA less capex reasonable proxy for cash generated increased by 48 and nine to 17.8 million.

Cash generation was boosted by our ongoing efforts to streamline operations and reduce the overhead associated with these offerings.

Across our businesses, we continue to it in debt to develop new technology, driven offerings and features that will enable us to better serve and maintain our customers and to pursue exciting growth opportunities as well systems and make us more efficient.

Within Fintech, we will roll out well the money visa card and peer to peer transfers early next year. This is the first step in a broader and strategic Challenger Bank initiative. The we're now focusing on to help our immigrant under banked and and bank customers can be easily access and participate fully in the digital economy.

And interest, we launched and the rest Petro and first quarter and new hit the pump solution for and and gas station owners and we believe will open a potentially large the market for us in both Petro and convenience and food stores that are located in gas stations and now can use the seamlessly integrated solution from interest.

And net the phone you cash we continue to focus on developing and the leasing integrations with third party applications and CRM last quarter, you were leased and integration with Microsoft and since then we have released integration for the whole and slack.

Customers Love These integrations and we expected the one with other terrific new features and the development pipeline will fuel net month extension and the coming year and beyond I'd be closed the quarter with the stronger balance sheet, even as we continue to invest and our businesses and repurchase our stock at October 31st we held the hundred $90 million and the cash debt securities.

The current equity investments and some are still and I would be happy to take your questions.

Thank you, Sir well and I'll begin the question that's the stretch.

So you're asking the question in the press Star then one on the touch true it feels English speakerphone. Please pick of Brad said before passing the keys and.

And it's out of the question has from the just like to drive of the question. Please press Star then two again and the Star then one to ask a question and just how will just pause momentarily to assemble our roster.

I guess the feel like to ask a question on todays call and they please press Star then one on the touched on the phone.

Well at this time of the appears to be no questions. This will conclude our question answer session and the conference call here with the.

Thank you all for attending today's presentation. At this time you may disconnect the lines take care for one.

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