Q1 2023 IDT Corp Earnings Call

The conference on them after you've had your conference after Covid.

Sure that's 820449.

And have your name please.

Sure that statement.

Brown.

And the company name please.

Era that AI E R.

Connecting athlete standby.

Hum, which again helps US you know the better our stores do the better we do.

Yeah, absolutely, it's great and you know I don't think any I at least I don't know of anyone in the market doing what you do that's offering this product so that's fantastic.

And Dave.

We get the question all the time about how we do this as a competition okay.

This initiative and the other ones that we announced recently just come to demonstrate that in a retrofit different and the restaurant not just selling.

Cash fancy cash register solution, we really try to fully understand the needs of our retailers, but tissue baked in order problems kind of own this toward the supply concerns deliberate concern create that level of stickiness and dependency and good that relationship.

That does not match to US yes, I mean again I think we view ourselves really as a trusted partner like through good times and bad times when a retailer is struggling.

We're there to help them with their cash flow.

When we see problems that theyre, having we want to come in and solve them.

Our goal and I think that that's the reason why we succeed and yes, we're not embarrassed that we want to make money.

But by providing.

Value to our stores, but we were there for them in good times and bad times.

Great Fantastic. So are there any are there any early learnings from the <unk> partnership or is it too early to tell.

The owner partnership actually Hasnt officially after really launched I mean, we signed the deal with them, but it doesn't start rolling out I would say until I believe early.

I believe early in January right. After the holiday season, and we didn't want to launch it during the holidays when things are harder to manage but again you know.

I have no doubt that the Uber partnership is gonna be a major benefit for these stores I mean for one <unk>.

By far the cheapest.

<unk> to do delivery.

Other than possibly doing it yourself and only if you have a lot of deliveries.

And again most of our stores don't have a lot of deliveries. So this is really a great option. It is a great option for customers as well because again, we're not really trying to make a lot of money on this specific product again. This is another example of us doing something that retailers need where we will make a profit but again we won't.

Make a ton of profit our goal is not to you know like a like an uber eats to mark stuff up 30%.

You know our goal is to bring it to them for you know as close to the cost that they pay for it in the store and allow retailers to sell stuff to customers, even when they're not in the store like that that is our goal and that's what we intend to do.

Okay.

I wanted to jump to net to fall I think I think we were initially thinking about net Tucson being closer to EBITDA breakeven at the end of this fiscal year and that's obviously tracking well ahead of what we initially anticipated so.

I love to see that but is there is there anything we should be aware of some like anything one time or do you think that sustainably going to be profitable from here I just wanted to.

Little bit of color on that.

I mean, my personal opinion is it sustainable I mean listen the beauty of of the net phone business is it has very very low churn.

And its revenue is pretty predictable. So you know the more lines you sign.

The more revenue you have in the more proppant and as long as you manage your costs.

Well, which again I think that we are really good at.

Youre going to see you know continued improvement and then the bottom line from that business.

Not to mention the fact that like me personally I'm extremely excited about the <unk> business that they acquired and its potential to really.

Bring up the <unk> of the entire business.

As well as.

Enhance the product overall.

So I think that you know I think it's really headed in a great direction.

And I'm happy that we own more of it for longer although that was not the plan.

Yes, David.

Most of them through the models.

And just very good performance right now shown is doing very well.

Doing great.

We are really focused on how we're deploying capital current customers in the countries that generate most ally.

So yes, Q1 was a good surprise for US we thought we're going to be EBITDA positive end of the year, we are EBITDA positive now.

I believe this is now the new baseline.

So hopefully that will.

We continued this way, we'll be able to be coming back to close later this year and discussing when youre going to become actually free cash flow positive not just EBITDA.

EBITDA above that you've got you know net.

Medical expense.

A large number of dollar capex acquiring the IP phones that we give to us.

So our customers, but the rate at which they are going.

Might be talking already critical coding floor about becoming free cash flow positive 23, you never know.

Well every.

Every day every day, we really again like we focus on optimizing.

The business to make sure that again, we're bringing on customers for the right price and the right kind of customers in the right areas, where we get the right paybacks and.

As Marcellus Seth you already like we think it will only get better from here, it's great to see that the business is still spending about $20 million a year or so.

Many customers and they.

They are very close to be completely self funding.

Well that leads into my next question, which is I think multiples in ucas, so while ending point of sale too so across basically everywhere.

Youre competing multiples have come down quite a lot. So as you get closer to being self sustaining that obviously opens up the door to have sort of self funding M&A. So.

I'm curious should we be thinking about anything on the horizon as it relates to M&A.

We don't have any.

Big M&A plans.

And the work that can tell you that much for sure I mean, you know I'm always open.

At things that I think will be.

Synergistic and will enhance our bottom line.

He said I also think that M&A can have the effect of taking your eye off the ball.

So you know again, we're not you know think gotten any rush to do anything and we're right now we're focused on improving the business and you know when valuations do come back we think it'll be even a much more valuable company than it would've.

That's great.

For all the color on all my questions.

Sop back into the queue and let someone else take it.

Alright, Thank you David.

Okay.

Again, if you have a question. Please press Star then one.

Yeah.

As there are no more questions. This concludes our question and answer session and conference call. Thank you for attending today's presentation. You may now disconnect.

Alright.