NRSInsights’ October 2023 Retail Same-Store Sales Report
Same-store sales at NRS retailers during October increased 3.2% compared to October 2022
Compared to September 2023, same-store-sales per calendar day decreased 2.1%
NEWARK, N.J., Nov. 08, 2023 — NRSInsights, a provider of sales data and analytics drawn from retail transactions processed through the National Retail Solutions (NRS) point-of-sale (POS) platform, today announced comparative same-store sales results for October 2023.
As of October 31, 2023, the NRS retail network comprised approximately 27,200 active terminals scanning purchases at independent retailers including bodegas, convenience stores, liquor stores, grocers, and tobacco and sundries sellers nationwide, predominantly serving urban consumers.
Retail Same-Store Sales Highlights
Same-store sales in October 2023 increased 3.2% from a year earlier (October 2022). Average sales per calendar day for October 2023 decreased 2.1% compared to the preceding month (September 2023).
Same-store sales in the preceding month (September 2023) had increased 6.1% compared to the year-ago month (September 2022). Average sales per calendar day in September 2023 had increased 1.7% compared to the preceding month (August 2023).
For the three months ended October 31, 2023, same-store sales increased 4.8% compared to the three months ended October 31, 2022.
The number of items sold during October 2023 increased 4.1% compared to October 2022 but decreased 0.9% compared to September 2023 on a per calendar day basis.
The average number of transactions per store in October 2023 increased 2.8% compared to October 2022. The average number of transactions per calendar day in October 2023 decreased 1.6% compared to September 2023.
A dollar-weighted average of prices for the top 500 items purchased in October 2023 increased 1.6% year-over-year, a decrease from the 5.3% year-over-year increase recorded in September 2023.
Commentary from Suzy Silliman (SVP, Data Strategy and Sales at NRS)
“October’s same-store sales at retailers utilizing our POS platform increased 3.2% year over year, but decreased 2.1% on a per-day basis compared to September. Inflationary pressures, which were exceptionally strong in September when prices increased 5.3% year over year, moderated to 1.6% in October 2023 compared to October 2022.
“Shopping patterns during October have evolved over the years. This year, the great “bump” in sales of popular Halloween categories began during the second week of October whereas it was once confined to the third and fourth weeks. From a retail sales standpoint, Halloween is no longer a single-day holiday; it is now a season of festivities and celebrations leading up to that big day.
“Halloween is always an interesting holiday to watch with its skew to sales of chocolate and confections. Earlier this year, increasing unit prices pressured sales in these categories. In October, unit sales of chocolate and confections came in below the year-ago levels as shoppers at stores in the NRS network turned to other sugary snacks to satisfy their sweet tooth.
“Our retailers’ three-month rolling year-over-year same-store sales increase of 4.8% has been, on average, 4.8% above the U.S. Commerce Department’s comparable retail same-store metric over the past ten months.”
Retail Trade Comparative Data
The table below provides historical comparative data with the U.S. Commerce Department’s Advance Monthly Retail Trade same-store sales data excluding food service:
The NRSInsights data have not been adjusted to reflect inflation, demographic distributions, seasonal buying patterns, item substitution, or other factors that may facilitate comparisons to other periods, to other same-store retail sales data, or to the U.S. Commerce Department’s retail data.
NRSInsights Reports
The NRSInsights monthly Same-Store Retail Sales Reports are intended to provide timely topline data reflective of sales at NRS’ network of independent, predominantly urban, retail stores.
Same-store data comparisons of October 2023 with October 2022 are derived from approximately 162 million transactions processed through the 15,544 stores on the NRS network that scanned transactions in both months. Same-store data comparisons of October 2023 with September 2023 are derived from approximately 215 million transactions processed through 22,696 stores.
Same-store data comparisons for the three months ended October 31, 2023 with the year-ago three months are derived from approximately 461 million scanned transactions processed through the stores that were in the NRS network in both quarters.
NRS POS Network
The NRS network comprises approximately 27,200 active POS terminals operating in approximately 23,700 independent retail stores. Its platform predominantly serves small-format, independent, retail stores including convenience stores, bodegas, liquor stores, grocers, and tobacco and sundries sellers. The network includes retailers in all 50 states and in 196 of the 210 designated market areas (DMAs) in the U.S. Over the past twelve months, NRS’ POS terminals have processed $16.6 billion in sales through approximately 1.18 billion transactions.
About National Retail Solutions (NRS):
National Retail Solutions operates the largest point-of-sale (POS) terminal-based platform and digital payment processing service for independent retailers nationwide. Retailers utilize NRS offerings to process transactions and effectively manage their businesses. Consumer packaged goods (CPG) suppliers, brokers, analytics firms and advertisers access the terminal’s digital display network to reach these retailers’ predominantly urban, multi-cultural shopper base, and to harness transaction data-based learnings to identify growth opportunities and measure execution and returns on marketing investment. NRS is a subsidiary of IDT Corporation (NYSE: IDT).
All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate,” “target” and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks, and should be consulted along with this release. To the extent permitted under applicable law, IDT assumes no obligation to update any forward-looking statements.
NRSInsights Contact: Suzy Silliman SVP, Data Strategy and Sales at NRS National Retail Solutions suzy.silliman@nrsplus.com
net2phone Unveils AI-Powered Solutions for Smarter Business Communications and Deeper Customer Engagement
Newark, NJ, Oct. 26, 2023 — net2phone, a leading provider of intelligent communications-as-a-service for businesses and contact centers, today unveiled its innovative suite of AI-powered solutions, net2phone AI.
net2phone AI is designed to transform the way businesses communicate with AI-powered insights, coaching, and automated workflows.
“We are harnessing the power of generative AI to help businesses and contact centers drive immediate, quantifiable, and qualitative improvements in customer engagement and agent productivity,” said Dan Leubitz, net2phone’s VP of Product.
“IT departments, managers, supervisors, and business owners will be delighted by our AI-powered call data and analysis features, which provide significantly improved performance metrics,” Leubitz added.
When integrated within net2phone’s UNITE UCaaS and uContact CCaaS platforms, net2phone AI empowers businesses and call centers to optimize customer interactions, improve customer satisfaction, and significantly enhance productivity.
Key functionalities of the fully deployed net2phone AI service include:
Sentiment Analysis: Identifies emotions and sentiments expressed by the customer during a call through voice, tone and contextual analysis, to provide quantifiable feedback;
Automated Recording and Transcription: Records and transcribes phone calls. Recordings and transcriptions can be replayed in full or at intervals;
Done-For-You Tasks: Drafts and prepares personalized follow-up emails after each call. The emails concisely summarize the contents of the call and next steps or to-do items to continue engagement with the customer;
Written Summary: Prepares a written summary of each call including main takeaways, action items, and next steps;
Coaching: Provides agents with suggestions for improvement based on call analysis;
Deep Analytics: Captures and analyzes call data for insights into customer interaction and agent performance including call duration, words spoken per minute, agent-to-caller talk ratios, and overtalk incidents;
CRM Integration: Data collected by net2phone AI is synched into the CRM platform for seamless integration, data capture, and analysis.
“net2phone AI paves the way for businesses and call centers of all sizes to enhance collaboration, productivity, customer satisfaction, and ROI,” said Jonah Fink, net2phone’s President and Chief Executive Officer. “Managers can access and harness the data and evaluations for comprehensive insights into customer interactions across platforms, resulting in increased customer retention and agent satisfaction rates.”
net2phone AI operates in multiple languages, is available worldwide, and integrates with most widely-used CRM platforms and with most communications or voice platforms that accept API webhooks.
net2phone’s innovative cloud-based, unified communications as a service, contact center as a service and SIP trunking solutions help businesses around the globe succeed through smarter conversations with enhanced intelligence and insights. net2phone’s commitment to delivering reliable and high-quality communications services has earned it a reputation as a leader in both innovation and growth. net2phone is a subsidiary of IDT Corporation (NYSE: IDT). To learn more, please visit net2phone.com or connect on LinkedIn.
Forward Looking Statements:
All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate,” “target” and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks and should be consulted along with this release. To the extent permitted under applicable law, IDT assumes no obligation to update any forward-looking statements.
IDT Corporation Reports Fourth Quarter and Fiscal Year 2023 Results
NRS added a record number of net retail terminals and payment processing accounts during 4Q23
net2phone increased seats served by 21% and subscription revenue by 19% YoY in 4Q23
BOSS Money increased transactions by 42% driving a 36% YoY revenue increase in 4Q23
NEWARK, NJ, Oct. 12, 2023 — IDT Corporation (NYSE: IDT), a global provider of fintech, cloud communications, and traditional communications services, today reported results for the fourth quarter and full fiscal year 2023, the three and twelve months ended July 31, 2023.
HIGHLIGHTS
(Throughout this release, unless otherwise noted, results for the fourth quarter of fiscal year 2023 (4Q23) are compared to the fourth quarter of fiscal year 2022 (4Q22) and results for FY2023 are compared to FY2022. All earnings per share (EPS) and other ‘per share’ results are per diluted share.)
National Retail Solutions (NRS) added over 1,700 net active point-of-sale (POS) terminals during 4Q23 and over 6,300 during FY2023 to reach approximately 25,700 as of July 31st. Recurring revenue* increased 6% in 4Q23 to $18.8 million led by a 79% increase in merchant services revenue. FY2023 recurring revenue increased 58% to $71.4 million;
net2phone added approximately 12,000 net seats served during 4Q23 and 61,000 during FY2023 to reach approximately 352,000 as of July 31st. Subscription revenue* increased 19% in 4Q23 to $17.9 million. FY2023 subscription revenue increased 25% to $66.8 million;
BOSS Money remittance volume increased by 42% to 3.79 million transactions during 4Q23 while revenue increased 36% to $22.3 million led by a 46% increase in retail channel revenue. FY2023 BOSS Money revenue increased 38% to $76.9 million;
Consolidated revenue decreased 8% in 4Q23 to $304 million while consolidated direct cost of revenue decreased 11% to $211 million. FY2023 consolidated revenue decreased 9% to $1,239 million while the consolidated direct cost of revenue decreased 15% to $876 million;
Consolidated income from operations decreased 38% in 4Q23 to $12.0 million. FY2023 consolidated income from operations increased 1% to $60.7 million;
Net income attributable to IDT decreased 54% in 4Q23 to $8.0 million. FY2023 net income attributable to IDT increased 50% to $40.5 million;
Consolidated Adjusted EBITDA** decreased 25% in 4Q23 to $18.1 million. FY2023 consolidated Adjusted EBITDA increased 9% to $86.2 million;
EPS decreased to $0.31 in 4Q23 from $0.66 and Non-GAAP EPS** decreased to $0.36 from $0.67. FY2023 EPS increased to $1.58 from $1.03, and Non-GAAP EPS increased to $1.86 from $1.12;
During 4Q23, IDT accelerated its stock repurchases, buying back 231,416 shares of its Class B common stock in market transactions for $5.6 million. During FY2023, IDT repurchased 511,546 Class B shares for $13.1 million. During 1Q24 through October 11th, IDT had repurchased 124,530 shares of Class B common stock for an aggregate purchase price of $2.8 million.
*See ‘Explanation of Key Performance Metrics’ at the end of this release.
**Adjusted EBITDA and Non-GAAP EPS are Non-GAAPfinancial measures intended to provide useful information that supplements IDT’s or the relevant segment’s results in accordance with GAAP.Please refer to the Reconciliation of Non-GAAP Financial Measures later in this release for an explanation of these terms and their respective reconciliations to the most directly comparable GAAP measures.
REMARKS BY SHMUEL JONAS, CEO
“Our results this quarter were highlighted by the continued expansion of our three high-growth, high-margin businesses, while our Traditional Communications segment performed as expected.
“At NRS, we have ramped up our investment to accelerate the growth of the NRS terminal and payment networks, and we delivered record quarterly increases in both net new terminals and net new NRS Pay accounts. With that tailwind, Merchant Services Q4 revenue increased 79% year-over-year. Advertising & Data revenue, while 40% below the year-ago peak, improved sequentially. Advertising & Data revenue increased 7% from the prior quarter and is on track for a larger sequential increase in the current quarter. NRS’ results also reflected our investment in growth initiatives, including the development of new features and functionalities that will help us expand our target market to new verticals within the independent retailer market during the coming year.
“At net2phone, subscription revenue increased 19% year over year, powered by the increase in seats served and an increase in average subscription revenue per seat in Latin America. Here too we are investing in initiatives to expand the business. In the coming quarters, we are preparing to roll out two exciting premium services – net2phone AI and Call Center Essentials – that we expect to enhance ARPU and margins across our markets.
“Within our Fintech segment, BOSS Money, our international remittance business, continued to benefit from the synergies between its retail and direct-to-consumer channels, and from our cross-marketing programs within the larger BOSS ecosystem. Also in our Fintech segment, we’ve begun enrolling customers in our new mobile banking app, Elroy. Elroy is replete with innovative features to help underbanked and unbanked customers integrate into the U.S. financial mainstream while appealing to anyone who despises bank fees but appreciates financial convenience, saving money, and earning interest.
“Within our Traditional Communications segment, we are working to further streamline the operations of our BOSS Revolution Calling and IDT Global businesses while pushing new initiatives to return our IDT Digital Payments business to growth.”
RESULTS BY SEGMENT
Fiscal Quarters
NRS
net2phone
Fintech
Traditional Communications
(In millions)
4Q23
3Q23
4Q22
4Q23
3Q23
4Q22
4Q23
3Q23
4Q22
4Q23
3Q23
4Q22
Revenue
$
19.9
$
18.1
$
19.2
$
19.3
$
18.4
$
16.2
$
24.6
$
21.8
$
18.5
$
240.0
$
241.0
$
274.6
Direct cost of revenue
$
2.1
$
2.6
$
2.7
$
3.1
$
3.0
$
2.5
$
11.0
$
9.2
$
7.4
$
195.2
$
195.4
$
225.3
SG&A expense
$
15.4
$
12.8
$
9.5
$
15.2
$
14.4
$
14.0
$
14.8
$
13.2
$
12.5
$
26.3
$
26.0
$
28.9
Income (loss) from operations
$
1.7
$
2.1
$
6.7
$
(0.7
)
$
(0.4
)
$
(1.8
)
$
(1.9
)
$
(1.3
)
$
(1.9
)
$
14.1
$
12.9
$
18.0
Adjusted EBITDA
$
2.4
$
2.7
$
7.1
$
0.9
$
1.0
$
(0.4
)
$
(1.2
)
$
(0.6
)
$
(1.3
)
$
18.6
$
19.7
$
20.5
Fiscal Years
NRS
net2phone
Fintech
Traditional Communications
(In millions)
FY2023
FY2022
FY2023
FY2022
FY2023
FY2022
FY2023
FY2022
Revenue
$
77.1
$
51.3
$
72.4
$
58.2
$
86.6
$
64.6
$
1,002.7
$
1,190.0
Direct cost of revenue
$
8.9
$
7.1
$
12.0
$
10.1
$
36.5
$
26.1
$
818.3
$
991.2
SG&A expense
$
51.4
$
32.1
$
57.3
$
54.2
$
51.9
$
43.1
$
107.0
$
113.3
Income (loss) from operations
$
14.4
$
11.2
$
(2.8
)
$
(11.1
)
$
(2.5
)
$
(6.9
)
$
61.3
$
75.8
Adjusted EBITDA
$
16.8
$
12.1
$
3.0
$
(6.1
)
$
(1.8
)
$
(4.6
)
$
77.5
$
85.5
National Retail Solutions (NRS)
During 4Q23 and 4Q22, the NRS segment contributed 6.6% and 5.9% of IDT’s consolidated revenue, respectively. For FY2023 and FY2022, the corresponding contributions were 6.2% and 3.8%, respectively.
Take-Aways:
During 4Q23, NRS added 1,744 net active terminals – a quarterly record. During FY2023, the network expanded by 6,308 net new terminals.
During 4Q23, NRS added 1,661 net payment processing accounts, also a record quarterly increase. During FY2023, NRS added 5,459 net payment processing accounts.
Merchant Services revenue growth was driven primarily by the increase in net payment processing accounts.
National Retail Solutions (NRS) (Terminals and accounts at end of period. $ in millions, except for revenue per terminal)
4Q23
3Q23
4Q22
4Q23-4Q22 (% Δ)
FY2023
FY2022
FY2023-FY2022 (% Δ)
Terminals and payment processing accounts
Active POS terminals
25,700
23,900
19,400
+33
%
Payment processing accounts
15,800
14,100
10,300
+53
%
Recurring revenue
Merchant Services and other
$
10.3
$
8.7
$
5.8
+79
%
$
32.8
$
17.5
+88
%
Advertising and Data
$
6.2
$
5.8
$
10.3
(40
)%
$
30.6
$
22.3
+37
%
SaaS Fees
$
2.3
$
2.1
$
1.6
+44
%
$
8.0
$
5.6
+45
%
Total recurring revenue
$
18.8
$
16.5
$
17.7
+6
%
$
71.4
$
45.3
+58
%
POS Terminal Sales
$
1.1
$
1.6
$
1.6
(29
%)
$
5.7
$
6.0
(6
)%
Total revenue
$
19.9
$
18.1
$
19.2
+4
%
$
77.1
$
51.3
+50
%
Monthly average recurring revenue per terminal*
$
253
$
237
$
316
(20
)%
$
264
$
226
+17
%
Income from operations
$
1.7
$
2.1
$
6.7
(75
)%
$
14.4
$
11.2
+29
%
Adjusted EBITDA
$
2.4
$
2.7
$
7.1
(66
)%
$
16.8
$
12.1
+38
%
net2phone
During 4Q23 and 4Q22, the net2phone segment contributed 6.3% and 4.9% of IDT’s consolidated revenue, respectively. For FY2023 and FY2022, the corresponding contributions were 5.8% and 4.3%, respectively.
net2phone (Seats in thousands at end of period. $ in millions)
4Q23
3Q23
4Q22
4Q23-4Q22 (% Δ, $)
FY2023
FY2022
FY2023-FY2022 (% Δ, $)
Seats
352
340
291
+21
%
Revenue
Subscription revenue
$
17.9
$
17.1
$
15.1
+19
%
$
66.8
$
53.6
+25
%
Other revenue
$
1.4
$
1.3
$
1.1
+25
%
$
5.6
$
4.6
+20
%
Total Revenue
$
19.3
$
18.4
$
16.2
+19
%
$
72.4
$
58.2
+24
%
Loss from operations
$
(0.7
)
$
(0.4
)
$
(1.8
)
+$
1.1
$
(2.8
)
$
(11.1
)
+$
8.4
Adjusted EBITDA
$
0.9
$
1.0
$
(0.4
)
+$
1.3
$
3.0
$
(6.1
)
+$
9.1
Take-Aways:
net2phone’s year-over-year increase in seats served was powered by continued expansion in key markets led by the U.S., Brazil, and Mexico.
In 4Q23, subscription revenue increased 19% year-over-year driven by the robust increase in seats served.
In FY2023, subscription revenue increased 25% compared to FY2022, as the increase in seats served was augmented by a 3% increase in subscription revenue per seat including a 6% increase in Latin American markets.
Fintech
During 4Q23 and 4Q22, the Fintech segment contributed 8.1% and 5.6% of IDT’s consolidated revenue, respectively. For FY2023 and FY2022, the corresponding contributions were 7.0% and 4.7%, respectively.
Fintech (Transactions in thousands. $ in millions except for revenue per transaction)
4Q23
3Q23
4Q22
4Q23-4Q22 (% Δ, $)
FY2023
FY2022
FY2023-FY2022 (% Δ, $)
BOSS Money Transactions
3,793
3,274
2,670
+42
%
12,983
9,370
+39
%
Fintech Revenue
BOSS Money
$
22.3
$
19.4
$
16.4
+36
%
$
76.9
$
55.6
+38
%
Other
$
2.3
$
2.4
$
2.1
+6
%
$
9.7
$
9.0
+7
%
Total Revenue
$
24.6
$
21.8
$
18.5
+33
%
$
86.6
$
64.6
+34
%
Average revenue per transaction*
$
5.87
$
5.94
$
6.13
$
(0.26
)
$
5.93
$
5.93
NC
Loss from operations
$
(1.9
)
$
(1.3
)
$
(1.9
)
NC
$
(2.5
)
$
(6.9
)
+$
4.4
Adjusted EBITDA
$
(1.2
)
$
(0.6
)
$
(1.3
)
+$
0.1
$
(1.8
)
$
(4.6
)
+$
2.8
Take-Aways:
In 4Q23, the 42% increase in BOSS Money transactions included a 47% increase in retail transactions driven by expansion of the BOSS Money retail agent network and enhancements to the retailer portal. Digital transactions increased 41%. In FY2023, transactions increased 39% including a 41% increase in retail transactions and a 38% increase in digital transactions.
BOSS Money revenue increased 36% in 4Q23 and 38% in FY2023 driven primarily by cross-marketing within the larger BOSS ecosystem and expansion of the retail agent network.
Traditional Communications
During 4Q23 and 4Q22, the Traditional Communications segment contributed 79.0% and 83.6% of IDT’s consolidated revenue, respectively. For FY2023 and FY2022, the corresponding contributions were 81.0% and 87.2%, respectively.
Traditional Communications ($ in millions)
4Q23
3Q23
4Q22
4Q23-4Q22 (% Δ)
FY2023
FY2022
FY2023-FY2022 (% Δ)
Revenue
IDT Digital Payments
$
100.8
$
101.0
$
112.6
(10
)%
$
417.1
$
473.2
(12
)%
BOSS Revolution Calling
$
75.4
$
77.6
$
90.2
(16
)%
$
322.1
$
387.9
(17
)%
IDT Global
$
55.6
$
54.5
$
62.9
(12
)%
$
230.3
$
292.4
(21
)%
Other
$
8.2
$
7.9
$
8.8
(7
)%
$
33.2
$
36.5
(9
)%
Total Revenue
$
240.0
$
241.0
$
274.6
(13
)%
$
1,002.7
$
1,190.0
(16
)%
Income from operations
$
14.1
$
12.9
$
18.0
(22
%)
$
61.3
$
75.8
(19
%)
Adjusted EBITDA
$
18.6
$
19.7
$
20.5
(9
)%
$
77.5
$
85.5
(9
)%
Take-Aways:
As in recent prior quarters, the year-over-year decrease in IDT Digital Payments revenue was due to the deterioration of a key international mobile top-up corridor.
Although BOSS Revolution Calling and IDT Global’s revenues were relatively unchanged sequentially, the industry-wide decline in the paid minute calling markets will continue to impact revenues and cash flows for the segment in the coming quarters.
NOTES ON FINANCIAL STATEMENTS
Consolidated results for all periods presented include corporate overhead. Corporate G&A expense in 4Q23 increased to $2.6 million from $1.7 million in 4Q22 reflecting an increase in audit and accounting fees and higher employee compensation expense. For FY2023, those same factors as well as increased non-cash stock-based compensation expense drove an increase in corporate G&A to $9.3 million from $7.8 million in FY2022.
As of July 31, 2023, IDT held $152.2 million in cash, cash equivalents, debt securities, and current equity investments. Current assets totaled $387.1 million and current liabilities totaled $294.1 million. IDT had no outstanding debt at the fiscal year-end.
Net cash provided by operating activities during 4Q23 was $25.4 million compared to $16.1 million during 4Q22. Exclusive of changes in customer deposit balances at IDT’s Gibraltar-based bank, net cash provided by operating activities during 4Q23 was $27.1 million compared to $22.2 million during 4Q22. The increase in net cash provided by operating activities was primarily due to the timing of operating cash receipts and payments.
Net cash provided by operating activities during FY2023 was $54.1 million compared to $29.4 million in FY2022. Exclusive of changes in customer deposit balances at IDT’s Gibraltar-based bank, net cash provided by operating activities during FY2023 was $58.3 million compared to $45.4 million during FY 2022.
Capital expenditures decreased to $5.9 million in 4Q23 from $8.1 million in 4Q22 and increased to $22.0 million in FY2023 from $21.9 million in FY2022.
IDT EARNINGS ANNOUNCEMENT AND SUPPLEMENTAL INFORMATION
This release is available for download in the “Investors & Media” section of the IDT Corporation website (https://www.idt.net/investors-and-media) and has been filed on a current report (Form 8-K) with the SEC.
IDT will host an earnings conference call beginning at 5:30 PM Eastern today with management’s discussion of results followed by Q&A with investors. To listen to the call and participate in the Q&A, dial 1-888-506-0062 (toll-free from the US) or 1-973-528-0011 (international) and request the IDT Corporation call (participant access code: 300767).
A replay of the conference call will be available approximately three hours after the call concludes through October 24, 2023. To access the call replay, dial 1-877-481-4010 (toll-free from the US) or 1-919-882-2331 (international) and provide this replay passcode: 49120. The replay will also be accessible via streaming audio at the IDT investor relations website.
ABOUT IDT CORPORATION
IDT Corporation (NYSE: IDT) is a global provider of fintech and communications services through a portfolio of synergistic businesses: National Retail Solutions (NRS), through its point-of-sale (POS) platform, enables independent retailers to operate more effectively while providing advertisers and marketers with unprecedented reach into underserved consumer markets; net2phone provides enterprises and organizations with intelligently integrated cloud communications and contact center services across channels and devices; Our fintech and neo-banking services include BOSS Money, our popular international remittance business, as well as other services that make saving, spending, and sharing money easy and secure; IDT Digital Payments and BOSS Revolution Calling make sharing prepaid products and services and speaking with friends and family around the world convenient and reliable; and, IDT Global and IDT Express enable communications services to provision and manage international voice and SMS messaging.
All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate,” “target” and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks and should be consulted along with this release. To the extent permitted under applicable law, IDT assumes no obligation to update any forward-looking statements.
Trade accounts receivable, net of allowance for doubtful accounts of $5,642 and $5,328 at July 31, 2023 and 2022, respectively
32,092
39,525
Settlement assets, net of reserve of $1,143 and $554 at July 31, 2023 and 2022, respectively
32,396
31,938
Disbursement prefunding
30,113
21,057
Prepaid expenses
16,638
17,526
Other current assets
28,394
23,625
TOTAL CURRENT ASSETS
387,068
362,627
Property, plant, and equipment, net
38,655
36,866
Goodwill
26,457
26,380
Other intangibles, net
8,196
9,609
Equity investments
9,874
7,426
Operating lease right-of-use assets
5,540
7,210
Deferred income tax assets, net
24,101
36,701
Other assets
10,919
10,275
TOTAL ASSETS
$
510,810
$
497,094
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY
CURRENT LIABILITIES:
Trade accounts payable
$
22,231
$
28,543
Accrued expenses
110,796
117,109
Deferred revenue
35,343
36,531
Customer deposits
86,481
85,764
Settlement liabilities
21,495
17,659
Other current liabilities
17,761
19,466
TOTAL CURRENT LIABILITIES
294,107
305,072
Operating lease liabilities
2,881
4,606
Other liabilities
3,354
6,588
TOTAL LIABILITIES
300,342
316,266
Commitments and contingencies
Redeemable noncontrolling interest
10,472
10,191
EQUITY:
IDT Corporation stockholders’ equity:
Preferred stock, $.01 par value; authorized shares-10,000; no shares issued
–
–
Class A common stock, $.01 par value; authorized shares-35,000; 3,272 shares issued and 1,574 shares outstanding at July 31, 2023 and 2022
33
33
Class B common stock, $.01 par value; authorized shares-200,000; 27,851 and 27,725 shares issued and 23,699 and 24,112 shares outstanding at July 31, 2023 and 2022, respectively
279
277
Additional paid-in capital
301,408
296,005
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 4,152 and 3,613 shares of Class B common stock at July 31, 2023 and 2022, respectively
(115,461
)
(101,565
)
Accumulated other comprehensive loss
(17,192
)
(11,305
)
Retained earnings (accumulated deficit)
24,662
(15,830
)
Total IDT Corporation stockholders’ equity
193,729
167,615
Noncontrolling interests
6,267
3,022
TOTAL EQUITY
199,996
170,637
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY
$
510,810
$
497,094
IDT CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
Year ended July 31 (in thousands, except per share data)
2023 Unaudited
2022
2021
REVENUES
$
1,238,854
$
1,364,057
$
1,446,990
COSTS AND EXPENSES:
Direct cost of revenues (exclusive of depreciation and amortization)
875,734
1,034,430
1,154,048
Selling, general and administrative (i)
276,891
250,481
218,467
Depreciation and amortization
20,136
18,115
17,764
Severance
935
116
452
TOTAL COSTS AND EXPENSES
1,173,696
1,303,142
1,390,731
Other operating (expense) gain, net
(4,415
)
(826
)
731
Income from operations
60,743
60,089
56,990
Interest income, net
3,147
146
318
Other (expense) income, net
(3,083
)
(25,352
)
7,916
Income before income taxes
60,807
34,883
65,224
(Provision for) benefit from income taxes
(16,441
)
(5,878
)
31,667
NET INCOME
44,366
29,005
96,891
Net income attributable to noncontrolling interests
(3,874
)
(1,977
)
(416
)
NET INCOME ATTRIBUTABLE TO IDT CORPORATION
$
40,492
$
27,028
$
96,475
Earnings per share attributable to IDT Corporation common stockholders:
Basic
$
1.59
$
1.05
$
3.78
Diluted
$
1.58
$
1.03
$
3.70
Weighted-average number of shares used in calculation of earnings per share:
Basic
25,517
25,791
25,495
Diluted
25,577
26,356
26,053
(i) Stock-based compensation included in selling, general and administrative expenses
$
4,518
$
1,930
$
1,490
IDT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year ended July 31 (in thousands)
2023 Unaudited
2022
2021
OPERATING ACTIVITIES
Net income
$
44,366
$
29,005
$
96,891
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
20,136
18,115
17,764
Deferred income taxes
12,601
4,801
(32,793
)
Provision for doubtful accounts receivable and reserve for settlement assets
2,198
2,330
1,782
Net unrealized loss (gain) from marketable securities
3,368
18,960
(3,262
)
Stock-based compensation
4,518
1,930
1,490
Other
3,175
3,379
(4,096
)
Changes in assets and liabilities:
Trade accounts receivable
4,726
(8,279
)
977
Settlement assets, disbursement prefunding, prepaid expenses, other current assets, and other assets
(17,503
)
(21,046
)
(6,952
)
Trade accounts payable, accrued expenses, settlement liabilities, other current liabilities, and other liabilities
(17,216
)
(1,110
)
(264
)
Customer deposits at IDT Financial Services Limited (Gibraltar-based bank)
(4,200
)
(15,966
)
(6,906
)
Deferred revenue
(2,029
)
(2,712
)
1,989
Net cash provided by operating activities
54,140
29,407
66,620
INVESTING ACTIVITIES
Capital expenditures
(21,958
)
(21,879
)
(16,765
)
Payments for acquisitions, net of cash acquired
–
(7,552
)
(3,673
)
Cash acquired from acquisition of interest in variable interest entity
–
–
3,336
Purchase of Rafael Holdings, Inc. Class B common stock and warrant
–
–
(5,000
)
Exercise of warrant to purchase shares of Rafael Holdings, Inc. Class B common stock
–
–
(1,000
)
Purchase of convertible preferred stock in equity method investment
(840
)
(1,051
)
(4,000
)
Purchases of debt securities and equity investments
(59,872
)
(24,454
)
(43,187
)
Proceeds from maturities and sales of debt securities and redemption of equity investments
49,211
21,157
26,230
Net cash used in investing activities
(33,459
)
(33,779
)
(44,059
)
FINANCING ACTIVITIES
Distributions to noncontrolling interests
(348
)
(514
)
(848
)
Payment for acquisition of warrant in variable interest entity
–
–
(791
)
Proceeds from other liabilities
300
2,301
729
Repayment of other liabilities
(2,037
)
(1,319
)
(108
)
Proceeds from sale of redeemable equity in subsidiary
–
10,000
–
Proceeds from borrowings under revolving credit facility
27,383
2,566
–
Repayments of borrowings under revolving credit facility
(27,383
)
(2,566
)
–
Proceeds from exercise of stock options
172
137
687
Repurchases of Class B common stock
(13,896
)
(26,222
)
(4,192
)
Net cash used in financing activities
(15,809
)
(15,617
)
(4,523
)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents
4,389
(17,365
)
7,656
Net increase (decrease) in cash, cash equivalents, and restricted cash and cash equivalents
9,261
(37,354
)
25,694
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of year
189,562
226,916
201,222
Cash, cash equivalents, and restricted cash and cash equivalents at end of year
$
198,823
$
189,562
$
226,916
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments made for interest
$
536
$
461
$
486
Cash payments made for income taxes
$
777
$
109
$
193
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Conversion of equity method investment’s secured promissory notes into convertible preferred stock
$
4,038
$
–
$
–
Stock issued to certain executive officers for bonus payments
$
615
$
–
$
–
Liabilities incurred for acquisitions
$
–
$
7,849
$
628
Shares of the Company’s Class B common stock issued for acquisition
$
100
$
1,000
$
–
Cashless exercise of stock options in exchange for shares of the Company’s Class B common stock
$
–
$
14,930
$
–
Stock issued for matching contributions to the 401(k) Plan
$
–
$
–
$
1,042
Reconciliation of Non-GAAP Financial Measures for the Fourth Quarter and Full Fiscal Years 2023 and 2022
In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States of America (GAAP), IDT also disclosed for 4Q23, 3Q23, 4Q22, and the full fiscal years 2023 and 2022, Adjusted EBITDA and non-GAAP earnings per diluted share (EPS), both of which are non-GAAP measures.
Generally, a non-GAAP measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP.
IDT’s measure of non-GAAP EPS is calculated by dividing non-GAAP net income by the diluted weighted-average shares. IDT’s measure of non-GAAP net income starts with net income attributable to IDT in accordance with GAAP and adds severance expense, stock-based compensation, and other operating expense, and deducts other operating gains. These additions and subtractions are non-cash and/or non-routine items in the relevant fiscal 2023 and fiscal 2022 periods.
Management believes that IDT’s Adjusted EBITDA and non-GAAP EPS are measures which provide useful information to both management and investors by excluding certain expenses and non-routine gains and losses that may not be indicative of IDT’s or the relevant segment’s core operating results. Management uses Adjusted EBITDA, among other measures, as a relevant indicator of core operational strengths in its financial and operational decision making. In addition, management uses Adjusted EBITDA and non-GAAP EPS to evaluate operating performance in relation to IDT’s competitors. Disclosure of these financial measures may be useful to investors in evaluating performance and allows for greater transparency to the underlying supplemental information used by management in its financial and operational decision-making. In addition, IDT has historically reported similar financial measures and believes such measures are commonly used by readers of financial information in assessing performance, therefore the inclusion of comparative numbers provides consistency in financial reporting.
Management refers to Adjusted EBITDA, as well as the GAAP measures income (loss) from operations and net income, on a segment and/or consolidated level to facilitate internal and external comparisons to the segments’ and IDT’s historical operating results, in making operating decisions, for budget and planning purposes, and to form the basis upon which management is compensated.
While depreciation and amortization are considered operating costs under GAAP, these expenses primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or capitalized in prior periods. IDT’s Adjusted EBITDA, which is exclusive of depreciation and amortization, is a useful indicator of its current performance.
Severance expense is excluded from the calculation of Adjusted EBITDA and non-GAAP EPS. Severance expense is reflective of decisions made by management in each period regarding the aspects of IDT’s and its segments’ businesses to be focused on in light of changing market realities and other factors. While there may be similar charges in other periods, the nature and magnitude of these charges can fluctuate markedly and do not reflect the performance of IDT’s core and continuing operations.
Other operating (expense) gain, net, which is a component of income (loss) from operations, is excluded from the calculation of Adjusted EBITDA and non-GAAP EPS. Other operating (expense) gain, net includes, among other items, gains from the write-off of contingent consideration liabilities, legal fees net of insurance claims related to Straight Path Communications Inc.’s stockholders’ class action, and expense for the indemnification of a cable telephony customer related to a legal settlement. From time-to-time, IDT may have gains or incur costs related to non-routine legal and other matters, however, these various items generally do not occur each quarter. IDT believes the gain and losses from these non-routine matters are not components of IDT’s or the relevant segment’s core operating results.
Stock-based compensation recognized by IDT and other companies may not be comparable because of the variety of types of awards as well as the various valuation methodologies and subjective assumptions that are permitted under GAAP. Stock-based compensation is excluded from IDT’s calculation of non-GAAP EPS because management believes this allows investors to make more meaningful comparisons of the operating results per share of IDT’s core business with the results of other companies. However, stock-based compensation will continue to be a significant expense for IDT for the foreseeable future and an important part of employees’ compensation that impacts their performance.
Adjusted EBITDA and non-GAAP EPS should be considered in addition to, not as a substitute for, or superior to, income (loss) from operations, cash flow from operating activities, net income, basic and diluted earnings per share or other measures of liquidity and financial performance prepared in accordance with GAAP. In addition, IDT’s measurements of Adjusted EBITDA and non-GAAP EPS may not be comparable to similarly titled measures reported by other companies.
Following are reconciliations of Adjusted EBITDA and non-GAAP EPS to the most directly comparable GAAP measure, which are, (a) for Adjusted EBITDA, income (loss) from operations for IDT’s reportable segments and net income for IDT on a consolidated basis, and (b) for non-GAAP EPS, diluted earnings per share.
IDT Corporation Reconciliation of Net Income to Adjusted EBITDA (unaudited) in millions. Figures may not foot or cross-foot due to rounding to millions
Total IDT Corporation
Traditional Communica-tions
net2phone
NRS
Fintech
Corporate
Three Months Ended July 31, 2023 (4Q23)
Net income attributable to IDT Corporation
$
8.0
Adjustments:
Net income attributable to noncontrolling interests
0.8
Net income
8.8
Provision for income taxes
3.8
Income before income taxes
12.6
Interest income, net
(1.1
)
Other expense, net
0.5
Income (loss) from operations
12.0
$
14.1
$
(0.7
)
$
1.7
$
(1.9
)
$
(1.2
)
Depreciation and amortization
5.1
2.3
1.5
0.7
0.7
–
Severance
0.5
0.4
0.1
–
–
–
Other operating expense, net
0.5
1.8
0.1
–
–
(1.4
)
Adjusted EBITDA
$
18.1
$
18.6
$
0.9
$
2.4
$
(1.2
)
$
(2.6
)
IDT Corporation Reconciliation of Net Income to Adjusted EBITDA (unaudited) in millions. Figures may not foot or cross-foot due to rounding to millions
Total IDT Corporation
Traditional Communica-tions
net2phone
NRS
Fintech
Corporate
Three Months Ended April 30, 2023 (3Q23)
Net income attributable to IDT Corporation
$
6.9
Adjustments:
Net income attributable to noncontrolling interests
0.9
Net income
7.7
Provision for income taxes
3.0
Income before income taxes
10.7
Interest income, net
(0.7
)
Other expense, net
0.4
Income (loss) from operations
10.4
$
12.9
$
(0.4
)
$
2.1
$
(1.3
)
$
(2.9
)
Depreciation and amortization
5.2
2.5
1.4
0.6
0.7
–
Severance
0.1
0.1
–
–
–
–
Other operating expense, net
4.8
4.1
–
–
–
0.6
Adjusted EBITDA
$
20.5
$
19.7
$
1.0
$
2.7
$
(0.6
)
$
(2.3
)
Total IDT Corporation
Traditional Communica-tions
net2phone
NRS
Fintech
Corporate
Three Months Ended July 31, 2022 (4Q22)
Net income attributable to IDT Corporation
$
17.2
Adjustments:
Net income attributable to noncontrolling interests
0.7
Net income
18.0
Benefit from income taxes
–
Income before income taxes
18.0
Interest expense, net
0.1
Other expense, net
1.1
Income (loss) from operations
19.2
$
18.0
$
(1.8
)
$
6.7
$
(1.9
)
$
(1.9
)
Depreciation and amortization
4.8
2.4
1.4
0.4
0.6
–
Other operating expense, net
0.1
–
–
–
–
0.1
Adjusted EBITDA
$
24.1
$
20.5
$
(0.4
)
$
7.1
$
(1.3
)
$
(1.7
)
IDT Corporation Reconciliation of Net Income to Adjusted EBITDA (unaudited) in millions. Figures may not foot or cross-foot due to rounding to millions
Total IDT Corporation
Traditional Communica-tions
net2phone
NRS
Fintech
Corporate
Year Ended July 31, 2023 (FY 2023)
Net income attributable to IDT Corporation
$
40.5
Adjustments:
Net income attributable to noncontrolling interests
3.9
Net income
44.4
Provision for income taxes
16.4
Income before income taxes
60.8
Interest income, net
(3.1
)
Other expense, net
3.1
Income (loss) from operations
60.7
$
61.3
$
(2.8
)
$
14.4
$
(2.5
)
$
(9.7
)
Depreciation and amortization
20.1
9.4
5.6
2.4
2.7
–
Severance
0.9
0.9
0.1
–
–
–
Other operating expense (gain), net
4.4
5.9
0.1
–
(1.9
)
0.3
Adjusted EBITDA
$
86.2
$
77.5
$
3.0
$
16.8
$
(1.8
)
$
(9.3
)
Total IDT Corporation
Traditional Communica-tions
net2phone
NRS
Fintech
Corporate
Year Ended July 31, 2022 (FY 2022)
Net income attributable to IDT Corporation
$
27.0
Adjustments:
Net income attributable to noncontrolling interests
2.0
Net income
29.0
Provision for income taxes
5.9
Income before income taxes
34.9
Interest income, net
(0.1
)
Other expense, net
25.4
Income (loss) from operations
60.1
$
75.8
$
(11.1
)
$
11.2
$
(6.9
)
$
(8.9
)
Depreciation and amortization
18.1
9.5
5.4
0.9
2.2
0.1
Severance
0.1
0.1
–
–
0.1
–
Other operating expense (gain), net
0.8
0.1
(0.3
)
–
–
1.0
Adjusted EBITDA
$
79.1
$
85.5
$
(6.1
)
$
12.1
$
(4.6
)
$
(7.8
)
IDT Corporation Reconciliation of Earnings per share to Non-GAAP EPS (unaudited) in millions, except per share data. Figures may not foot due to rounding to millions.
4Q23
3Q23
4Q22
FY 2023
FY 2022
Net income attributable to IDT Corporation
$
8.0
$
6.9
$
17.2
$
40.5
$
27.0
Adjustments (add):
Stock-based compensation
(1.0
)
(1.7
)
(0.1
)
(4.5
)
(1.9
)
Severance expense
(0.5
)
(0.1
)
(0.1
)
(0.9
)
(0.1
)
Other operating expense, net
(0.5
)
(4.8
)
(0.1
)
(4.4
)
(0.8
)
Total adjustments
(2.0
)
(6.6
)
(0.3
)
(9.8
)
(2.8
)
Income tax effect of total adjustments
(0.7
)
(1.8
)
–
(2.6
)
(0.4
)
1.3
4.8
0.3
7.2
2.4
Non-GAAP net income
$
9.3
$
11.7
$
17.5
$
47.7
$
29.4
Earnings per share:
Basic
$
0.31
$
0.27
$
0.66
$
1.59
$
1.05
Total adjustments
0.06
0.19
0.01
0.28
0.09
Non-GAAP – basic
$
0.37
$
0.46
$
0.67
$
1.87
$
1.14
Weighted-average number of shares used in calculation of basic earnings per share
25.4
25.5
26.0
25.5
25.8
Diluted
$
0.31
$
0.27
$
0.66
$
1.58
$
1.03
Total adjustments
0.05
0.19
0.01
0.28
0.09
Non-GAAP – diluted
$
0.36
$
0.46
$
0.67
$
1.86
$
1.12
Weighted-average number of shares used in calculation of diluted earnings per share
25.5
25.6
26.1
25.6
26.4
*Explanation of Key Performance Metrics
NRS’ recurring revenue is NRS’ revenue in accordance with GAAP excluding revenue from POS terminal sales. NRS’ Monthly Average Recurring Revenue per Terminal is a financial metric. Monthly Average Recurring Revenue per Terminal is calculated by dividing NRS’ recurring revenue by the average number of active POS terminals during the period. The average number of active POS terminals is calculated by adding the beginning and ending number of active POS terminals during the period and dividing by two. NRS’ recurring revenue divided by the average number of active POS terminals is divided by three when the period is a fiscal quarter. Recurring revenue and Monthly Average Recurring Revenue per Terminal are useful for comparisons of NRS’ revenue and revenue per customer to prior periods and to competitors and others in the market, as well as for forecasting future revenue from the customer base.
BOSS Money’s Average Revenue per Transaction is also a financial metric. Average Revenue per Transaction is calculated by dividing BOSS Money’s revenue in accordance with GAAP by the number of transactions during the period. Average Revenue per Transaction is useful for comparisons of BOSS Money’s revenue per transaction to prior periods and to competitors and others in the market, as well as for forecasting future revenue based on transaction trends.
net2phone’s subscription revenue is its revenue in accordance with GAAP excluding its equipment revenue and revenue generated by a legacy SIP trunking offering in Brazil. net2phone’s cloud communications offerings are priced on a per-seat basis, with customers paying based on the number of users in their organization. The number of seats served and subscription revenue trends and comparisons between periods are used in the analysis of net2phone’s revenues and direct cost of revenues, and are strong indications of the top-line growth and performance of the business.
# # #
NRSInsights’ September 2023 Retail Same-Store Sales Report
Same-store sales at NRS retailers during September increased 6.1% compared to September 2022
Compared to August 2023, same-store-sales increased 1.7%
NEWARK, N.J., Oct. 09, 2023 — NRSInsights, a provider of sales data and analytics drawn from retail transactions processed through the National Retail Solutions (NRS) point-of-sale (POS) platform, today announced comparative same-store sales results for September 2023.
As of September 30, 2023, the NRS retail network comprised approximately 26,700 terminals scanning purchases at independent retailers including bodegas, convenience stores, liquor stores, grocers, and tobacco and sundries sellers nationwide, predominantly serving urban consumers.
Retail Same-Store Sales Highlights
Same-store sales increased 6.1% from a year earlier (September 2022). Average sales per calendar day for September increased 1.7% compared to the preceding month (August 2023).
Same-store sales in the preceding month (August 2023) had increased 6.5% compared to the year-ago month (August 2022). Average sales per calendar day in August had decreased 2.3% compared to the preceding month (July 2023).
For the three months ended September 30, 2023, same-store sales increased 5.7% compared to the three months ended September 30, 2022.
The number of items sold during September 2023 increased 6.7% compared to September 2022 and the number of items sold per calendar day in September increased 1.8% compared to August 2023.
The average number of transactions per store in September 2023 increased 3.2% compared to September 2022. The average number of transactions per calendar day in September increased 0.5% compared to August 2023.
A dollar-weighted average of prices for the top 500 items purchased in September 2023 increased 5.3% year-over-year, an increase from the 3.8% year-over-year increase recorded in August 2023.
Commentary from Suzy Silliman (SVP, Data Strategy and Sales at NRS)
“Same-store sales at retailers using our POS platform continued to increase strongly in September, rising 6.1% from September 2022’s level and 1.7% on a sales-per-calendar-day basis compared to August 2023. The data reflected an increase in inflationary pressures for the second consecutive month. The top-selling 500 items had a weighted year-over-year price per unit increase of 5.3% in September compared to 3.8% increase in August and 1.6% increase in July.
“NRS stores saw strong increases in the unit and dollar sales of ‘baking’ and ‘cooking’ related grocery categories in September 2023 versus last year including double-digit growth in baking staples and supplies, baking mixes, sugar/sweeteners, pasta/rice/grains, herbs/seasoning/spices and sauces/gravy/marinades. Milk and dairy alternatives sales increased 25% from September of last year in our same stores’ scans.
“The growing popularity of pre-made wine and spirits-based cocktails once again drove strong year-over-year increases in Wine & Spirits sales during September, while alcoholic beverage mixer sales decreased.
“Our urban retailers’ three-month rolling year-over-year same-store sales increase of 5.7% has been, on average, 5.1% above the U.S. Commerce Department’s comparable retail same-store metric over the past ten months.”
Retail Trade Comparative Data
The table below provides historical comparative data with the U.S. Commerce Department’s Advance Monthly Retail Trade same-store sales data excluding food service:
The NRSInsights data have not been adjusted to reflect inflation, demographic distributions, seasonal buying patterns, item substitution, or other factors that may facilitate comparisons to other periods, to other same-store retail sales data, or to the U.S. Commerce Department’s retail data.
NRSInsights Reports
The NRSInsights monthly Same-Store Retail Sales Reports are intended to provide timely topline data reflective of sales at NRS’ network of independent, predominantly urban, retail stores.
Same-store data comparisons of September 2023 with September 2022 are derived from approximately 157 million transactions processed through the 15,215 stores on the NRS network that scanned transactions in both months. Same-store data comparisons of September 2023 with August 2023 are derived from approximately 214 million transactions processed through 22,252 stores.
Same-store data comparisons for the three months ended September 30, 2023 with the year-ago three months are derived from approximately 458 million scanned transactions processed through the stores that were in the NRS network in both quarters.
NRS POS Network
The NRS network comprises approximately 26,700 active POS terminals operating in approximately 23,200 independent retail stores. Its platform predominantly serves small-format, independent, retail stores including convenience stores, bodegas, liquor stores, grocers, and tobacco and sundries sellers. The network includes retailers in all 50 states and in 196 of the 210 designated market areas (DMAs) in the U.S. Over the past twelve months, NRS’ POS terminals have processed $16.3 billion in sales through approximately 1.16 billion transactions.
About National Retail Solutions (NRS):
National Retail Solutions operates the largest point-of-sale (POS) terminal-based platform and digital payment processing service for independent retailers nationwide. Retailers utilize NRS offerings to process transactions and manage operations more effectively. Consumer packaged goods (CPG) suppliers, brokers, analytics firms and advertisers access the terminal’s digital display network to reach these retailers’ predominantly urban, multi-cultural shopper base, and to harness transaction data-based learnings to identify growth opportunities and measure execution and returns on marketing investment. NRS is a subsidiary of IDT Corporation (NYSE: IDT).
All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate,” “target” and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks, and should be consulted along with this release. To the extent permitted under applicable law, IDT assumes no obligation to update any forward-looking statements.
NRSInsights Contact: Suzy Silliman SVP, Data Strategy and Sales at NRS National Retail Solutions suzy.silliman@nrsplus.com
NRSInsights’ July 2023 Retail Same-Store Sales Report
Same-store salesat NRS retailers during July increased 5.5%compared to July2022
NEWARK, N.J., Aug. 03, 2023 — NRSInsights, a provider of sales data and analytics drawn from retail transactions processed through the National Retail Solutions (NRS) point-of-sale (POS) platform, today announced comparative same-store sales results for July 2023.
As of July 31, 2023, the NRS retail network comprised approximately 25,700 terminals scanning purchases at independent retailers including bodegas, convenience stores, liquor stores, grocers, and tobacco and sundries sellers nationwide, predominantly serving urban consumers.
Retail Same-Store Sales Highlights
Same-store sales increased 5.5% from a year earlier (July 2022). Average sales per calendar day for July increased 1.7% compared to the preceding month (June 2023).
Same-store sales in the preceding month (June 2023) had increased 7.7% compared to the year-ago month (June 2022). Average sales per calendar day in June had increased 1.5% compared to the preceding month (May 2023).
For the three months ended July 31, 2023, same-store sales increased 6.1% compared to the three months ended July 31, 2022.
The number of items sold during July 2023 increased 6.2% compared to July 2022 and the number of items sold per calendar day increased 0.9% compared to June 2023.
The average number of transactions per store in July 2023 increased 3.4% compared to July 2022 and the average number of transactions per calendar day increased 1.2% compared to June 2023.
A dollar-weighted average of prices for the top 500 items purchased in July 2023 increased 1.6% year-over-year, a substantial decrease from the 2.9% year-over-year increase recorded in June 2023.
Commentary from Suzy Silliman(SVP, Data Strategy and Sales at NRS)
“A big 4th of July holiday created momentum for a strong July performance across the NRS retail network. During the seven days (Thursday – Wednesday) around the 4th, our network recorded overall increases in dollars, units and traffic versus the same holiday period in the prior year and compared to June’s year over year growth trend. For the seven-day period, non-alcoholic packaged beverages, ice cream and novelties, beer/flavored malt beverages (FMB)/cider/seltzer, sun care and ice unsurprisingly showed the greatest lifts compared to June.
“For the full month of July, same-store sales by NRS retailers rose a robust 5.5% year-over-year, although at a slower rate of increase than the 7.7% year-over-year increase we reported in June. The cooling reflects, in part, a further easing of inflationary pressures. The top selling 500 items had a weighted year-over-year price per unit increase of just 1.6% in July-which is a substantial decrease from the 2.9% year-over-year increase in June.
“Our neighborhood retailers’ three-month rolling, year-over-year same-store sales increase of 6.1% continues to exceed the U.S. Commerce Department’s comparable retail same-store metric. Our rate of increase has, on average, been 5% above the Department’s rate of same store sales over the past eight months.”
Retail Trade Comparative Data
The table below provides historical comparative data with the U.S. Commerce Department’s Advance Monthly Retail Trade same store sales data excluding food service:
The NRSInsights data have not been adjusted to reflect inflation, demographic distributions, seasonal buying patterns, item substitution, or other factors that may facilitate comparisons to other periods, to other same-store retail sales data, or to the U.S. Commerce Department’s retail data.
NRSInsights Reports
The NRSInsights monthly Same-Store Retail Sales Reports are intended to provide timely topline data reflective of sales at NRS’ network of independent, predominantly urban, retail stores.
Same-store data comparisons of July 2023 with July 2022 are derived from approximately 158 million transactions processed through the 14,537 stores on the NRS network that scanned transactions in both months. Same-store data comparisons of July 2023 with June 2023 are derived from approximately 209 million transactions processed through 21,388 stores.
Same-store data comparisons for the three months ended July 31, 2023 with the year-ago three months are derived from approximately 440 million scanned transactions processed through the stores that were in the NRS network in both quarters.
NRS POS Network
The NRS network comprises approximately 25,700 active POS terminals operating in approximately 22,300 independent retail stores. Its platform predominantly serves small-format, independent, retail stores including convenience stores, bodegas, liquor stores, grocers, and tobacco and sundries sellers. The network includes retailers in all 50 states and in 195 of the 210 designated market areas (DMAs) in the U.S. Over the past twelve months, NRS’ POS terminals have processed $15.6 billion in sales through approximately 1.11 billion transactions.
About National Retail Solutions (NRS):
National Retail Solutions operates a point-of-sale (POS) terminal-based platform and digital payment processing service for independent retailers nationwide. Retailers utilize NRS offerings to process transactions and manage operations more effectively. Consumer packaged goods (CPG) suppliers, brokers, analytics firms and advertisers access the terminal’s digital display network to reach these retailers’ massive, predominantly urban, multi-cultural shopper base, and to harness transaction data-based learnings to identify profitable growth opportunities and measure execution and returns on current marketing investments. NRS is a subsidiary of IDT Corporation (NYSE: IDT).
All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate,” “target” and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors.Our filings with the SEC provide detailed information on such statements and risks, and should be consulted along with this release. To the extent permitted under applicable law, IDT assumes no obligation to update any forward-looking statements.
NRSInsightsContact: Suzy Silliman SVP, Data Strategy and Sales at NRS National Retail Solutions suzy.silliman@nrsplus.com
BOSS Money Launches Naira Currency Payout Option for Remittances to Nigeria
Customers Sending Money to Nigeria Can Now Choose Direct Deposit in Naira or in U.S. DollarsatNigeria’s Leading Banks
Newark, NJ, July 18, 2023 — BOSS Money, the money remittance service of IDT Corporation (NYSE: IDT), today announced the introduction of naira currency remittances for its customers sending cash to friends and family through direct deposit payout at commercial banks throughout Nigeria.
“BOSS Money customers sending money for direct deposit in Nigeria can now choose between the naira and U.S. dollar,” said Alfredo O’Hagan, IDT’s SVP for Consumer Payments. “Our naira direct deposit option enables Nigerians to quickly and securely receive and use the money sent by friends and family in the United States.”
The new naira payout option supplements BOSS Money‘s robust U.S. dollar payout network in Nigeria. Its launch follows the Central Bank of Nigeria’s decision, announced earlier this month, to allow overseas remittances to be paid out in naira.
Through the popular BOSS Money and BOSS Revolution Calling apps, customers in the United States can now send up to $2999 to Nigerian bank accounts for payout in naira for a $0 fee through August 31, 2023 when using their debit card.
The highly rated BOSS apps are free on the App Store and on Google Play. Senders utilizing either BOSS app or the bossrevolution.com website for the first time pay no fees on transfers up to $2999.
Customers can also send from licensed Boss Revolution retailers across the United States.
Among the 26 Nigerian banks accepting BOSS Money remittances are Access Bank, Ecobank, Fidelity Bank, First Bank, First City Monument Bank, GT Bank, Polaris Bank, Stanbic IBTC Bank, United Bank for Africa, Union Bank and Zenith Bank. The complete list of participating Nigerian banks is provided in the BOSS apps.
BOSS Money now offers remittances from the United States to Nigeria and 46 other countries at over 280,000 cash pick-up locations in addition to mobile money and direct deposit services.
About IDT Corporation:
IDT Corporation (NYSE: IDT) is a global provider of fintech, cloud communications, and traditional communications services. We make it easy for families to contact and support each other across international borders. We also enable businesses to transact and communicate with their customers with enhanced intelligence and insight.
Our BOSS Money international remittance, IDT Digital Payments and BOSS Revolution international calling services make sending money, paying for products and services, and speaking with friends and family around the world convenient and reliable. National Retail Solutions‘ (NRS) point-of-sale retail network enables independent retailers to operate and process transactions more effectively while providing advertisers and consumer marketers with unprecedented reach into underserved consumer markets. net2phone‘s communications-as-a-service solutions provide businesses with intelligently integrated cloud communications and collaboration tools across channels and devices. Our IDT Global and IDT Express wholesale offerings enable communications service enterprises to provision and manage international voice and SMS services.
All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate,” “target” and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors.Our filings with the SEC provide detailed information on such statements and risks and should be consulted along with this release. To the extent permitted under applicable law, IDT assumes no obligation to update any forward-looking statements.
NRSInsights’ June 2023 Retail Same-Store Sales Report
Same-store salesat NRS retailers during June increased 7.7%compared to June2022
NEWARK, N.J., July 06, 2023 — NRSInsights, a provider of sales data and analytics drawn from retail transactions processed through the National Retail Solutions (NRS) point-of-sale (POS) platform, today announced comparative same-store sales results for June 2023.
As of June 30, 2023, the NRS retail network comprised approximately 25,200 terminals scanning purchases at independent retailers including bodegas, convenience stores, liquor stores, grocers, and tobacco and sundries sellers nationwide, predominantly serving urban consumers.
Retail Same-Store Sales Highlights
Same-store sales increased 7.7% from a year earlier (June 2022). Average sales per calendar day for June increased 1.5% compared to the preceding month (May 2023).
Same-store sales in the preceding month (May 2023) had increased 7.1% compared to the year-ago month (May 2022). Average sales per calendar day in May increased 1.0% compared to the preceding month (April 2023).
For the three months ended June 30, 2023, same-store sales increased 6.2% compared to the three months ended June 30, 2022;
The number of items sold during June 2023 increased 7.3% compared to June 2022 and the number of items sold per calendar day increased 1.0% compared to May 2023.
The average number of transactions per store in June 2023 increased 4.3% compared to June 2022 and the average number of transactions per store increased 1.4% compared to May 2023
A dollar-weighted average of prices for the top 500 items purchased in June 2023 increased 2.9% year-over-year, a slight decrease from the 3.2% year-over-year increase recorded in May 2023.
Commentary from Suzy Silliman(SVP, Data Strategy and Sales at NRS)
“Same-store sales by NRS retailers again increased robustly during June, rising 7.7% year-over-year, driven by both increased traffic and average ring per basket.
“Category growth leaders included prepared cocktails (both spirits and wine-based), tequila, smokeless tobacco, packaged cookies, energy drinks and sports drinks, as well as salty snack and candy categories.
“Our neighborhood retailers’ three-month rolling, year-over-year same-store sales increase of 6.2% continues to exceed the U.S. Commerce Department’s comparable retail same-store metric, likely because our sales overweight food, household essentials and other necessities compared to the broader retail marketplace.”
Retail Trade Comparative Data
The table below provides historical comparative data with the U.S. Commerce Department’s Advance Monthly Retail Trade data excluding food service:
The NRSInsights data have not been adjusted to reflect inflation, demographic distributions, seasonal buying patterns, item substitution, or other factors that may facilitate comparisons to other periods, to other same-store retail sales data, or to the U.S. Commerce Department’s retail data.
NRSInsights Reports
The NRSInsights monthly Same-Store Retail Sales Reports are intended to provide timely topline data reflective of sales at NRS’ network of independent, predominantly urban, retail stores.
Same-store data comparisons of June 2023 with June 2022 are derived from approximately 148 million transactions processed through the 14,284 stores on the NRS network that scanned transactions in both months. Same-store data comparisons of June 2023 with May 2023 are derived from approximately 204 million transactions processed through 20,883 stores.
Same-store data comparisons for the three months ended June 30, 2023 with the year-ago three months are derived from approximately 416 million scanned transactions processed through the NRS network in both quarters.
NRS POS Network
The NRS network comprises approximately 25,200 active POS terminals operating in approximately 21,900 independent retail stores. Its platform predominantly serves small-format, independent, retail stores including convenience stores, bodegas, liquor stores, grocers, and tobacco and sundries sellers. The network includes retailers in all 50 states and in 194 of the 210 designated market areas (DMAs) in the U.S. Over the past twelve months, NRS’ POS terminals have processed $16.4 billion in sales through approximately 1.17 billion transactions.
About National Retail Solutions (NRS): National Retail Solutions operates a point-of-sale (POS) terminal-based platform and digital payment processing service for independent retailers nationwide. Retailers utilize NRS offerings to process transactions and manage operations more effectively. Consumer packaged goods (CPG) suppliers, brokers, analytics firms and advertisers access the terminal’s digital display network to reach these retailers’ massive, predominantly urban, multi-cultural shopper base, and to harness transaction data-based learnings to identify profitable growth opportunities and measure execution and returns on current marketing investments. NRS is a subsidiary of IDT Corporation (NYSE: IDT).
All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate,” “target” and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors.Our filings with the SEC provide detailed information on such statements and risks, and should be consulted along with this release. To the extent permitted under applicable law, IDT assumes no obligation to update any forward-looking statements.
NRSInsightsContact: Suzy Silliman SVP, Data Strategy and Sales at NRS National Retail Solutions suzy.silliman@nrsplus.com
IDT Corporation to Participate in East Coast IDEAS Virtual Investor Conference
NEWARK, NJ, June 19, 2023 — IDT Corporation (NYSE: IDT), a global provider of fintech, cloud communications, and traditional communications services, announced today that members of its management team will participate in the 13th Annual East Coast IDEAS Investor Conference.
A pre-recorded presentation by management, including an overview of the company’s strategy, operations, and financial results will be available beginning at 6:00 am ET on Wednesday, June 21st. The presentation slides and audio will be accessible through the IDT investor relations website, https://www.idt.net/investors-and-media/.
IDT’s Chief Financial Officer, Marcelo Fischer, will host virtual meetings with conference participants on Wednesday and Thursday.
Investors can also view the presentation, register for the conference and request a 1×1 meeting with Mr. Fischer through the conference host’s website, www.ThreePartAdvisors.com/East-Coast.
IDEAS Conferences provide independent, regional venues for companies to present to investment professionals. Conferences are held annually in Boston, Chicago and Dallas and are produced by Three Part Advisors, LLC.
About IDT Corporation:
IDT Corporation (NYSE: IDT) is a global provider of fintech, cloud communications, and traditional communications services. We make it easy for families to contact and support each other across international borders. We also enable businesses to transact and communicate with their customers with enhanced intelligence and insight.
Our BOSS Money international remittance, IDT Digital Payments and BOSS Revolution international calling services make sending money, paying for products and services, and speaking with friends and family around the world convenient and reliable. National Retail Solutions‘ (NRS) point-of-sale retail network enables independent retailers to operate and process transactions more effectively while providing advertisers and consumer marketers with unprecedented reach into underserved consumer markets. net2phone‘s communications-as-a-service solutions provide businesses with intelligently integrated cloud communications and collaboration tools across channels and devices. Our IDT Global and IDT Express wholesale offerings enable communications service enterprises to provision and manage international voice and SMS services.
All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate,” “target” and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors.Our filings with the SEC provide detailed information on such statements and risks, and should be consulted along with this release. To the extent permitted under applicable law, IDT assumes no obligation to update any forward-looking statements.
IDT Corporation Reports Third Quarter Fiscal Year 2023 Results
EPS increases to $0.27 per share on revenue of $299 million
NEWARK, NJ, June 05, 2023 — IDT Corporation (NYSE: IDT), a global provider of fintech, cloud communications, and traditional communications services, today reported results for the third quarter of its fiscal year 2023, the three months ended April 30, 2023.
HIGHLIGHTS
(Throughout this release, unless otherwise noted, results for the third quarter of fiscal year 2023 (3Q23) are compared to the thirdquarter of fiscal year 2022 (3Q22). All earnings per share (EPS) and other ‘per share’ results are per diluted share.)
National Retail Solutions (NRS) added approximately 1,600 net active point-of-sale (POS) terminals and 1,600 net NRS Pay Accounts during 3Q23 to end the quarter with 23,900 active terminals and 14,100 NRS Pay accounts. Recurring revenue* increased 65% to $16.5 million.
net2phone subscription revenue* increased 20% to $17.1 million. net2phone added approximately 13,000 net seats during the quarter to end 3Q23 with approximately 340,000 seats served.
BOSS Money remittance revenue increased 29% to $19.4 million. Volume increased by 38% to 3.28 million transactions.
Consolidated revenue decreased 9% to $299 million while consolidated direct cost of revenue decreased 15% to $210 million.
Consolidated income from operations decreased to $10.4 million from $13.3 million, including the impact of a $3.9 million charge in the Traditional Communications segment resulting from a legal settlement.
Net income attributable to IDT increased to $6.9 million from $4.8 million.
Consolidated Adjusted EBITDA** increased 14% to $20.5 million.
EPS increased 50% to $0.27 from $0.18. Non-GAAP EPS** more than doubled to $0.46 from $0.22.
During 3Q23, IDT repurchased 76,694 shares of its Class B common stock in the open market for approximately $2.5 million. During the first nine months of FY 2023, IDT repurchased 280,130 shares in the open market for approximately $7.5 million.
*See ‘Explanation of Key Performance Metrics’ at the end of this release.
**Adjusted EBITDA and Non-GAAP EPS are Non-GAAPfinancial measures intended to provide useful information that supplements IDT’s or the relevant segment’s results in accordance with GAAP.Please refer to the Reconciliation of Non-GAAP Financial Measures later in this release for an explanation of these terms and their respective reconciliations to the most directly comparable GAAP measures.
REMARKS BY SHMUEL JONAS, CEO
“For the third quarter of our 2023 fiscal year, IDT generated year-over-year increases in gross profit, Adjusted EBITDA, and EPS highlighted by the continued expansion of our three high growth, high-margin businesses and by the relatively resilient cash-flows from our Traditional Communications segment, even as revenue from this segment continued to decline.
“NRS added new POS terminals and payment processing accounts at a record pace this quarter, and achieved solid year-over-year increases in all three of its recurring revenue verticals as well as in recurring revenue per terminal. Advertising revenue decreased sequentially due to seasonal reductions in demand and the advertising industry’s pull-back – particularly in the digital out-of-home segment. Behind the scenes, we are enhancing our advertising platform and diversifying our network partnerships to pursue new opportunities both within and outside of the digital out-of-home market. This foundational work should pay off when advertising demand rebounds. Given our success in accelerating the pace of new payment processing account sign-ups, increasing merchant services’ ARPU, and bringing new premium features to our platform, we expect that NRS will continue to perform extremely well.
“net2phone increased its subscription revenue by 20% year-over-year while approaching cash-flow break-even. In the coming weeks, we expect to launch exciting new offerings and features that will help to build on our momentum, including net2phone AI, which includes powerful analytic tools powered by artificial intelligence technology.
“At BOSS Money, remittance volume increased by 38% year over year driving a 29% revenue increase. I am especially pleased by the robust growth of BOSS Money’s retail channel over the past few quarters. Throughout the rest of the BOSS ecosystem – the synergies between retail and direct-to-consumer drive better economics than we could achieve with a single-channel approach. We believe that the same will be true for the money remittance business. For that reason, we continue to focus on retail channel expansion as we invest to achieve scale and long-term profitability.
“With our diverse mix of businesses, backed by a solid balance sheet and with no debt, IDT is positioned to continue delivering solid results across a wide variety of economic conditions while returning value to our stockholders.”
RESULTS BY SEGMENT
NRS
net2phone
Fintech
Traditional Communications
(In millions)
3Q23
2Q23
3Q22
3Q23
2Q23
3Q22
3Q23
2Q23
3Q22
3Q23
2Q23
3Q22
Revenue
$
18.1
$
19.8
$
11.4
$
18.4
$
17.8
$
15.6
$
21.8
$
20.3
$
17.2
$
241.0
$
256.0
$
284.2
Direct cost of revenue
$
2.6
$
2.2
$
1.7
$
3.0
$
3.0
$
2.6
$
9.2
$
8.0
$
6.6
$
195.4
$
209.1
$
236.6
SG&A expense
$
12.8
$
11.6
$
8.4
$
14.4
$
14.0
$
13.8
$
13.2
$
12.8
$
11.2
$
26.0
$
27.3
$
27.6
Income (loss) from operations
$
2.1
$
5.4
$
1.1
$
(0.4
)
$
(0.6
)
$
(2.3
)
$
(1.3
)
$
(0.8
)
$
(1.1
)
$
12.9
$
17.0
$
17.6
Adjusted EBITDA
$
2.7
$
6.0
$
1.3
$
1.0
$
0.8
$
(0.9
)
$
(0.6
)
$
(0.5
)
$
(0.5
)
$
19.7
$
19.6
$
20.0
National Retail Solutions (NRS)
In 3Q23 and 3Q22, the NRS segment contributed 6.0% and 3.5% of IDT’s consolidated revenue, respectively.
National Retail Solutions (NRS) (Terminals and accounts at end of period. $ in millions, except for revenue per terminal)
3Q23
2Q23
3Q22
3Q23-3Q22 change %
Terminals and payment processing accounts
Active POS terminals
23,900
22,400
17,900
+34%
Payment processing accounts
14,100
12,500
9,200
+53%
Recurring revenue
Merchant Services and other
$
8.7
$
7.4
$
4.8
+82%
Advertising and Data
$
5.8
$
9.0
$
3.7
+54%
SaaS Fees
$
2.1
$
1.9
$
1.5
+41%
Total recurring revenue
$
16.5
$
18.3
$
10.0
+65%
POS Terminal Sales
$
1.6
$
1.5
$
1.4
+12%
Total revenue
$
18.1
$
19.8
$
11.4
+59%
Monthly average recurring revenue per terminal*
$
237
$
283
$
193
+23%
Income from operations
$
2.1
$
5.4
$
1.1
+93%
Adjusted EBITDA
$
2.7
$
6.0
$
1.3
+110%
Take-Aways:
Sequentially, NRS added 1,570 net active terminals in 3Q23 – slightly ahead of the prior quarter’s record pace.
Sequentially, NRS added 1,609 net payment processing accounts in 3Q23, also a record increase.
Merchant Services, Advertising and Data, and SaaS Fees all achieved robust year-over-year revenue increases. Industry-wide seasonality and advertising demand weakness resulted in a sequential decrease in Advertising and Data revenue and in monthly average recurring revenue per terminal.
net2phone
net2phone (Seats in thousands at end of period. $ in millions)
3Q23
2Q23
3Q22
3Q23-3Q22 Change %, $
Seats
340
327
279
+22%
Revenue
Subscription revenue
$
17.1
$
16.3
$
14.3
+20%
Other revenue
$
1.3
$
1.5
$
1.3
(2
)%
Total Revenue
$
18.4
$
17.8
$
15.6
+18%
Loss from operations
$
(0.4
)
$
(0.6
)
$
(2.3
)
+$1.9
Adjusted EBITDA
$
1.0
$
0.8
$
(0.9
)
+$1.9
In 3Q23 and 3Q22, the net2phone segment accounted for 6.2% and 4.7% of IDT’s consolidated revenue, respectively.
Take-Aways:
The growth in net2phone’s seats-served reflected balanced geographic expansion across key markets led by the U.S., Brazil, and Mexico.
net2phone continued to make progress toward operating profitability. Its loss from operations narrowed to $0.4 million as the business, across all regions, continues to scale. net2phone’s SG&A, expressed as a percentage of revenue, declined from 89% to 78%.
In April, net2phone announced a strategic partnership with Bridgepointe, a leading tech advisory firm. Bridgepointe is now offering net2phone’s cloud communications solutions to its mid-market and enterprise clients.
Fintech
In 3Q23 and 3Q22, the Fintech segment contributed 7.3% and 5.2% of IDT’s consolidated revenue, respectively.
Fintech (Transactions in thousands. $ in millions except for revenue per transaction)
3Q23
2Q23
3Q22
3Q23-3Q22 Change %, $
BOSS Money Transactions
3,281
3,061
2,371
+38%
Fintech Revenue
BOSS Money
$
19.4
$
17.6
$
15.1
+29%
Other
$
2.4
$
2.7
$
2.1
+10%
Total Revenue
$
21.8
$
20.3
$
17.2
+27%
Average revenue per transaction*
$
5.93
$
5.77
$
6.36
(7
)%
Loss from operations
$
(1.3
)
$
(0.8
)
$
(1.1
)
$
(0.2
)
Adjusted EBITDA
$
(0.6
)
$
(0.5
)
$
(0.5
)
$
(0.1
)
Take-Aways:
BOSS Money transaction volumes increased 38% compared to the year ago quarter with similar contributions from both retail and digital channels.
The year-over-year decrease in BOSS Money’s average revenue per transaction was due to unusually favorable, but temporary, foreign exchange spread opportunities in certain corridors in the year-ago quarter.
Traditional Communications
In 3Q23 and 3Q22, the Traditional Communications segment accounted for 80.5% and 86.6% of IDT’s consolidated revenue, respectively.
Traditional Communications ($ in millions)
3Q23
2Q23
3Q22
3Q23-3Q22
Change %
Revenue
IDT Digital Payments
$
101.0
$
106.1
$
115.9
(13
)%
BOSS Revolution Calling
$
77.6
$
82.8
$
91.8
(15
)%
IDT Global
$
54.5
$
58.6
$
67.1
(19
)%
Other
$
7.9
$
8.5
$
9.4
(17
%)
Total Revenue
$
241.0
$
256.0
$
284.2
(15
)%
Income from operations
$
12.9
$
17.0
$
17.6
(27
)%
Adjusted EBITDA
$
19.7
$
19.6
$
20.0
(2
)%
Take–Aways:
As in the prior quarter, the year-over-year decrease in IDT Digital Payments revenue was due to the deterioration of a key international mobile top-up corridor that was particularly impactful to sales in the lower margin wholesale and retail channels.
The decreases in BOSS Revolution Calling and IDT Global’s carrier services revenues reflected the long-standing industry-wide decline in the paid minute calling markets and were in-line with expectations.
During 3Q23, IDT Digital Payments launched Zendit, a cloud-based, prepaid-as-a-service platform enabling businesses to easily and quickly add a curated menu of airtime top-ups and other cross-border prepaid offerings to their apps and websites. Subsequently, the Zendit team has formed new strategic alliances globally, expanded its catalog to over 15,000 digital offerings, and onboarded its initial customers.
Income from operations decreased mostly due to the impact of a $3.9 million charge resulting from the settlement of an indemnification claim resulting from a legal settlement.
NOTES ON FINANCIAL STATEMENTS
Consolidated results for all periods presented include corporate overhead. Corporate G&A expense in 3Q23 increased to $2.3 million from $1.8 million in 3Q22 reflecting higher employee compensation and stock-based compensation expense.
As of April 30, 2023, IDT held $138.5 million in cash, cash equivalents, debt securities, and current equity investments. Current assets totaled $390.0 million and current liabilities totaled $301.7 million. IDT had no outstanding debt at quarter end.
Net cash used in operating activities during 3Q23 was $6.9 million compared to net cash provided by operating activities of $1.6 million during 3Q22. Exclusive of changes in customer deposit balances at IDT’s Gibraltar-based bank, net cash used in operating activities during 3Q23 was $4.3 million compared to net cash provided by operating activities of $9.6 million during 3Q22. The decline in operating cash generation is due almost entirely to the timing of certain working capital movements.
Capital expenditures increased to $5.5 million in 3Q23 from $4.8 million in 3Q22.
IDT EARNINGS ANNOUNCEMENT AND SUPPLEMENTAL INFORMATION
This release is available for download in the “Investors & Media” section of the IDT Corporation website (https://www.idt.net/investors-and-media) and has been filed on a current report (Form 8-K) with the SEC.
IDT will host an earnings conference call beginning at 5:30 PM Eastern today with management’s discussion of results followed by Q&A with investors. To listen to the call and participate in the Q&A, dial 1-888-506-0062 (toll-free from the US) or 1-973-528-0011 (international) and request the IDT Corporation call (participant access code: 568841).
A replay of the conference call will be available approximately three hours after the call concludes through June 19, 2023. To access the call replay, dial 1-877-481-4010 (toll-free from the US) or 1-919-882-2331 (international) and provide this replay number: 48437. The replay will also be accessible via streaming audio at the IDT investor relations website.
ABOUT IDT:
IDT Corporation (NYSE: IDT) is a global provider of fintech, cloud communications, and traditional communications services. We make it easy for families to contact and support each other across international borders. We also enable businesses to transact and communicate with their customers with enhanced intelligence and insight.
Our BOSS Money international remittance, IDT Digital Payments and BOSS Revolution international calling services make sending money, paying for products and services, and speaking with friends and family around the world convenient and reliable. National Retail Solutions‘ (NRS) point-of-sale retail network enables independent retailers to operate and process transactions more effectively while providing advertisers and consumer marketers with unprecedented reach into underserved consumer markets. net2phone‘s communications-as-a-service solutions provide businesses with intelligently integrated cloud communications and collaboration tools across channels and devices. Our IDT Global and IDT Express wholesale offerings enable communications service enterprises to provision and manage international voice and SMS services.
All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate,” “target” and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors.Our filings with the SEC provide detailed information on such statements and risks and should be consulted along with this release. To the extent permitted under applicable law, IDT assumes no obligation to update any forward-looking statements.
Trade accounts receivable, net of allowance for doubtful accounts of $6,133 at April 30, 2023 and $5,882 at July 31, 2022
65,942
64,315
Disbursement prefunding
40,428
21,057
Prepaid expenses
15,575
17,526
Other current assets
35,211
30,773
Total current assets
389,962
362,627
Property, plant, and equipment, net
39,083
36,866
Goodwill
26,596
26,380
Other intangibles, net
8,483
9,609
Equity investments
10,263
7,426
Operating lease right-of-use assets
6,141
7,210
Deferred income tax assets, net
27,501
36,701
Other assets
10,197
10,275
Total assets
$
518,226
$
497,094
Liabilities, redeemable noncontrolling interest, and equity
Current liabilities:
Trade accounts payable
$
29,715
$
29,080
Accrued expenses
109,177
117,109
Deferred revenue
33,910
36,531
Customer deposits
86,111
85,764
Other current liabilities
42,762
36,588
Total current liabilities
301,675
305,072
Operating lease liabilities
3,572
4,606
Other liabilities
3,527
6,588
Total liabilities
308,774
316,266
Commitments and contingencies
Redeemable noncontrolling interest
10,449
10,191
Equity:
IDT Corporation stockholders’ equity:
Preferred stock, $.01 par value; authorized shares-10,000; no shares issued
–
–
Class A common stock, $.01 par value; authorized shares-35,000; 3,272 shares issued and 1,574 shares outstanding at April 30, 2023 and July 31, 2022
33
33
Class B common stock, $.01 par value; authorized shares-200,000; 27,798 and 27,725 shares issued and 23,892 and 24,112 shares outstanding at April 30, 2023 and July 31, 2022, respectively
278
277
Additional paid-in capital
300,328
296,005
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 3,906 and 3,613 shares of Class B common stock at April 30, 2023 and July 31, 2022, respectively
(109,410
)
(101,565
Accumulated other comprehensive loss
(14,475
)
(11,305
Retained earnings (accumulated deficit)
16,685
(15,830
Total IDT Corporation stockholders’ equity
193,439
167,615
Noncontrolling interests
5,564
3,022
Total equity
199,003
170,637
Total liabilities, redeemable noncontrolling interest, and equity
$
518,226
$
497,094
IDT CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Three Months Ended April 30,
Nine Months Ended April 30,
2023
2022
2023
2022
(in thousands, except per share data)
Revenues
$
299,295
$
328,353
$
935,047
$
1,035,494
Costs and expenses:
Direct cost of revenues (exclusive of depreciation and amortization)
210,250
247,565
664,281
796,516
Selling, general and administrative (i)
68,574
62,772
202,591
183,948
Depreciation and amortization
5,185
4,509
14,986
13,333
Severance
145
–
458
67
Total costs and expenses
284,154
314,846
882,316
993,864
Other operating expense, net
(4,764
)
(179
)
(3,948
)
(709
)
Income from operations
10,377
13,328
48,783
40,921
Interest income, net
709
85
2,029
217
Other expense, net
(382
)
(5,068
)
(2,610
)
(24,234
)
Income before income taxes
10,704
8,345
48,202
16,904
Provision for income taxes
(2,960
)
(3,239
)
(12,594
)
(5,887
)
Net income
7,744
5,106
35,608
11,017
Net income attributable to noncontrolling interests
(854
)
(335
)
(3,093
)
(1,231
)
Net income attributable to IDT Corporation
$
6,890
$
4,771
$
32,515
$
9,786
Earnings per share attributable to IDT Corporation common stockholders:
Basic
$
0.27
$
0.18
$
1.27
$
0.38
Diluted
$
0.27
$
0.18
$
1.27
$
0.37
Weighted-average number of shares used in calculation of earnings per share:
Basic
25,518
25,901
25,544
25,706
Diluted
25,612
26,205
25,589
26,455
(i) Stock-based compensation included in selling, general and administrative expenses
$
1,679
$
1,245
$
3,537
$
1,840
IDT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended April 30,
2023
2022
(in thousands)
Operating activities
Net income
$
35,608
$
11,017
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
14,986
13,333
Deferred income taxes
9,200
4,624
Provision for doubtful accounts receivable
1,180
1,578
Net unrealized loss from marketable securities
3,151
19,705
Stock-based compensation
3,537
1,840
Other
2,114
3,486
Change in assets and liabilities:
Trade accounts receivable
(2,084
)
(8,461
)
Disbursement prefunding, prepaid expenses, other current assets, and other assets
(27,043
)
(20,504
)
Trade accounts payable, accrued expenses, other current liabilities, and other liabilities
(6,220
)
(2,566
)
Customer deposits at IDT Financial Services Limited (Gibraltar-based bank)
(2,570
)
(9,843
)
Deferred revenue
(3,160
)
(948
)
Net cash provided by operating activities
28,699
13,261
Investing activities
Capital expenditures
(16,033
)
(13,794
)
Purchase of convertible preferred stock in equity method investment
(168
)
(1,051
)
Payments for acquisitions, net of cash acquired
–
(7,546
)
Purchases of debt securities and equity investments
(44,166
)
(11,277
)
Proceeds from maturities and sales of debt securities and redemptions of equity investments
34,309
7,752
Net cash used in investing activities
(26,058
)
(25,916
)
Financing activities
Distributions to noncontrolling interests
(293
)
(359
)
Proceeds from other liabilities
300
2,301
Repayment of other liabilities.
(2,031
)
(1,319
)
Proceeds from borrowings under revolving credit facility
2,383
2,566
Repayment of borrowings under revolving credit facility.
(2,383
)
(2,566
)
Proceeds from sale of redeemable equity in subsidiary
–
10,000
Proceeds from exercise of stock options
172
137
Repurchases of Class B common stock
(7,845
)
(12,832
)
Net cash used in financing activities
(9,697
)
(2,072
)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents
2,537
(14,093
)
Net decrease in cash, cash equivalents, and restricted cash and cash equivalents
(4,519
)
(28,820
)
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period
189,562
226,916
Cash, cash equivalents, and restricted cash and cash equivalents at end of period
$
185,043
$
198,096
Supplemental schedule of non-cash investing and financing activities
Conversion of equity method investment’s secured promissory notes into convertible preferred stock
$
4,038
$
–
Stock issued to certain executive officers for bonus payments
$
615
$
–
Liabilities incurred for acquisitions
$
–
$
7,849
Shares of the Company’s Class B common stock issued for acquisition
$
–
$
1,000
Cashless exercise of stock options in exchange for shares of the Company’s Class B common stock
$
–
$
14,930
Reconciliation of Non-GAAP Financial Measures for the Third Quarter Fiscal 2023 and 2022
In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States of America (GAAP), IDT also disclosed for 3Q23, 2Q23, and 3Q22, Adjusted EBITDA and non-GAAP earnings per diluted share (EPS), both of which are non-GAAP measures.
Generally, a non-GAAP measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP.
IDT’s measure of non-GAAP EPS is calculated by dividing non-GAAP net income by the diluted weighted-average shares. IDT’s measure of non-GAAP net income starts with net income attributable to IDT in accordance with GAAP and adds severance expense, stock-based compensation, and other operating expense, and deducts other operating gains. These additions and subtractions are non-cash and/or non-routine items in the relevant fiscal 2023 and fiscal 2022 periods.
Management believes that IDT’s Adjusted EBITDA and non-GAAP EPS are measures which provide useful information to both management and investors by excluding certain expenses and non-routine gains and losses that may not be indicative of IDT’s or the relevant segment’s core operating results. Management uses Adjusted EBITDA, among other measures, as a relevant indicator of core operational strengths in its financial and operational decision making. In addition, management uses Adjusted EBITDA and non-GAAP EPS to evaluate operating performance in relation to IDT’s competitors. Disclosure of these financial measures may be useful to investors in evaluating performance and allows for greater transparency to the underlying supplemental information used by management in its financial and operational decision-making. In addition, IDT has historically reported similar financial measures and believes such measures are commonly used by readers of financial information in assessing performance, therefore the inclusion of comparative numbers provides consistency in financial reporting.
Management refers to Adjusted EBITDA, as well as the GAAP measures income (loss) from operations and net income, on a segment and/or consolidated level to facilitate internal and external comparisons to the segments’ and IDT’s historical operating results, in making operating decisions, for budget and planning purposes, and to form the basis upon which management is compensated.
While depreciation and amortization are considered operating costs under GAAP, these expenses primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or capitalized in prior periods. IDT’s Adjusted EBITDA, which is exclusive of depreciation and amortization, is a useful indicator of its current performance.
Severance expense is excluded from the calculation of Adjusted EBITDA and non-GAAP EPS. Severance expense is reflective of decisions made by management in each period regarding the aspects of IDT’s and its segments’ businesses to be focused on in light of changing market realities and other factors. While there may be similar charges in other periods, the nature and magnitude of these charges can fluctuate markedly and do not reflect the performance of IDT’s core and continuing operations.
Other operating gain (expense), net, which is a component of income (loss) from operations, is excluded from the calculation of Adjusted EBITDA and non-GAAP EPS. Other operating gain (expense), net primarily includes gains from the write-off of a contingent consideration liabilities, legal fees net of insurance claims related to Straight Path Communications Inc.’s stockholders’ class action, and expense for the indemnification of a net2phone cable telephony customer related to a legal settlement. From time-to-time, IDT may have gains or incur costs related to non-routine legal and other matters, however, these various items generally do not occur each quarter. IDT believes the gain and losses from these non-routine matters are not components of IDT’s or the relevant segment’s core operating results.
Stock-based compensation recognized by IDT and other companies may not be comparable because of the variety of types of awards as well as the various valuation methodologies and subjective assumptions that are permitted under GAAP. Stock-based compensation is excluded from IDT’s calculation of non-GAAP EPS because management believes this allows investors to make more meaningful comparisons of the operating results per share of IDT’s core business with the results of other companies. However, stock-based compensation will continue to be a significant expense for IDT for the foreseeable future and an important part of employees’ compensation that impacts their performance.
Adjusted EBITDA and non-GAAP EPS should be considered in addition to, not as a substitute for, or superior to, income (loss) from operations, cash flow from operating activities, net income, basic and diluted earnings per share or other measures of liquidity and financial performance prepared in accordance with GAAP. In addition, IDT’s measurements of Adjusted EBITDA and non-GAAP EPS may not be comparable to similarly titled measures reported by other companies.
Following are reconciliations of Adjusted EBITDA and non-GAAP EPS to the most directly comparable GAAP measure, which are, (a) for Adjusted EBITDA, income (loss) from operations for IDT’s reportable segments and net income for IDT on a consolidated basis, and (b) for non-GAAP EPS, diluted earnings per share.
IDT Corporation Reconciliation of Net Income to Adjusted EBITDA (unaudited) in millions. Figures may not foot or cross-foot due to rounding to millions
Total IDT Corporation
Traditional Communica-tions
net2phone
NRS
Fintech
Corporate
Three Months Ended April 30, 2023 (3Q23)
Net income attributable to IDT Corporation
$
6.9
Adjustments:
Net income attributable to noncontrolling interests
0.9
Net income
7.7
Provision for income taxes
3.0
Income before income taxes
10.7
Interest income, net
(0.7
)
Other expense, net
0.4
Income (loss) from operations
10.4
$
12.9
$
(0.4
)
$
2.1
$
(1.3
)
$
(2.9
)
Depreciation and amortization
5.2
2.5
1.4
0.6
0.7
–
Severance
0.1
0.1
–
–
–
–
Other operating expense, net
4.8
4.1
–
–
–
0.6
Adjusted EBITDA
$
20.5
$
19.7
$
1.0
$
2.7
$
(0.6
)
$
(2.3
)
Total IDT Corporation
Traditional Communica-tions
net2phone
NRS
Fintech
Corporate
Three Months Ended January 31, 2023 (2Q23)
Net income attributable to IDT Corporation
$
14.6
Adjustments:
Net income attributable to noncontrolling interests
0.7
Net income
15.3
Provision for income taxes
5.3
Income before income taxes
20.6
Interest income, net
(0.8
)
Other income, net
(1.6
)
Income (loss) from operations
18.2
$
17.0
$
(0.6
)
$
5.4
$
(0.8
)
$
(2.8
)
Depreciation and amortization
5.0
2.4
1.4
0.6
0.7
–
Severance
0.2
0.2
–
–
–
–
Other operating (gain) expense, net
–
–
–
–
(0.3
)
0.3
Adjusted EBITDA
$
23.4
$
19.6
$
0.8
$
6.0
$
(0.5
)
$
(2.5
)
IDT Corporation
Reconciliation of Net Income to Adjusted EBITDA
(unaudited) in millions. Figures may not foot or cross-foot due to rounding to millions.
Total IDT Corporation
Traditional Communica-tions
net2phone
NRS
Fintech
Corporate
Three Months Ended April 30, 2022 (3Q22)
Net income attributable to IDT Corporation
$
4.8
Adjustments:
Net income attributable to noncontrolling interests
0.3
Net income
5.1
Provision for income taxes
3.2
Income before income taxes
8.3
Interest income, net
(0.1
)
Other expense, net
5.1
Income (loss) from operations
13.3
$
17.6
$
(2.3
)
$
1.1
$
(1.1
)
$
(2.0
)
Depreciation and amortization
4.5
2.4
1.3
0.2
0.6
–
Other operating expense, net
0.2
–
–
–
–
0.2
Adjusted EBITDA
$
18.0
$
20.0
$
(0.9
)
$
1.3
$
(0.5
)
$
(1.8
)
IDT Corporation
Reconciliation of Earnings per share to Non-GAAP EPS
(unaudited) in millions, except per share data. Figures may not foot due to rounding to millions.
3Q23
2Q23
3Q22
Net income attributable to IDT Corporation
$
6.9
$
14.6
$
4.8
Adjustments (add) subtract:
Stock-based compensation
(1.7
)
(1.3
)
(1.2
)
Severance expense
(0.1
)
(0.2
)
–
Other operating expense, net
(4.8
)
–
(0.2
)
Total adjustments
(6.6
)
(1.5
)
(1.4
)
Income tax effect of total adjustments
(1.8
)
(0.4
)
(0.6
)
4.8
1.1
0.8
Non-GAAP net income
$
11.7
$
15.7
$
5.6
Earnings per share:
Basic
$
0.27
$
0.57
$
0.18
Total adjustments
0.19
0.05
0.04
Non-GAAP – basic
$
0.46
$
0.62
$
0.22
Weighted-average number of shares used in calculation of basic earnings per share
25.5
25.5
25.9
Diluted
$
0.27
$
0.57
$
0.18
Total adjustments
0.19
0.05
0.04
Non-GAAP – diluted
$
0.46
$
0.62
$
0.22
Weighted-average number of shares used in calculation of diluted earnings per share
25.6
25.5
26.2
*Explanation of Key Performance Metrics
NRS’ recurring revenue is NRS’ revenue in accordance with GAAP excluding revenue from POS terminal sales.
NRS’ Monthly Average Recurring Revenue per Terminal is a financial metric. Monthly Average Recurring Revenue per Terminal is calculated by dividing NRS’ recurring revenue by the average number of active POS terminals during the period. The average number of active POS terminals is calculated by adding the beginning and ending number of active POS terminals during the period and dividing by two. NRS’ recurring revenue divided by the average number of active POS terminals is divided by three when the period is a fiscal quarter. Monthly Average Recurring Revenue per Terminal is useful for comparisons of NRS’ revenue per customer to prior periods and to competitors and others in the market, as well as for forecasting future revenue from the customer base.
BOSS Money’s Average Revenue per Transaction is also a financial metric. Average Revenue per Transaction is calculated by dividing BOSS Money’s revenue in accordance with GAAP by the number of transactions during the period. Average Revenue per Transaction is useful for comparisons of BOSS Money’s revenue per transaction to prior periods and to competitors and others in the market, as well as for forecasting future revenue based on transaction trends.
net2phone’s subscription revenue is its revenue in accordance with GAAP excluding its equipment revenue and revenue generated by a legacy SIP trunking offering in Brazil. net2phone’s cloud communications offerings are priced on a per-seat basis, with customers paying based on the number of users in their organization. The number of seats served and subscription revenue trends and comparisons between periods are used in the analysis of net2phone’s revenues and direct cost of revenues are strong indications of the top-line growth and performance of the business.
# # #
NRSInsights’ May 2023 Retail Same-Store Sales Report
Same-store salesat NRS retailers during May increased 7.1%compared to May2022
NEWARK, N.J., June 05, 2023 — NRSInsights, a provider of sales data and analytics drawn from retail transactions processed through the National Retail Solutions (NRS) point-of-sale (POS) platform, today announced comparative same-store sales results for May 2023.
As of May 31, 2023, the NRS retail network comprised approximately 25,000 terminals scanning purchases at independent retailers including bodegas, convenience stores, liquor stores, grocers, and tobacco and sundries sellers nationwide, predominantly serving urban consumers.
Retail Same-Store Sales Highlights
(Sequential comparisons are influenced by seasonal factors)
Same-store sales increased 7.1% from a year earlier (May 2022). Sales increased 4.3% compared to the preceding month (April 2023). The sequential increase is primarily attributable to May comprising 31 days compared to April’s 30 days;
Same-store sales in the preceding month (April 2023) had increased 6.5% compared to the year-ago month (April 2022), and increased 0.1% compared to the preceding month (March 2023) despite April comprising 30 days compared to March’s 31 days;
For the three months ended May 31, 2023, same-store sales increased 6.4% compared to the three months ended May 31, 2022;
The number of items sold during May 2023 increased 7.0% compared to May 2022 and increased 3.8% compared to April 2023;
The average number of transactions per store in May 2023 increased 4.7% compared to May 2022 and increased 6.0% compared to April 2023;
A dollar-weighted average of prices for the top 500 items purchased in May 2023 increased 3.2% year-over-year, an increase from the 3.1% year-over-year increase in April 2023.
Commentary from Suzy Silliman(SVP, Data Strategy and Sales at NRS)
“NRS same-store sales in NRS retailers during May increased 7.1% year-over-year, and sales per calendar day increased slightly from April’s level, even as price increases moderated.
“Our three-month rolling average rate of year-over-year increase -6.4% – again outpaced the prior months’ U.S. Commerce Department’s comparable retail same-store metric, likely reflecting our neighborhood retailers’ overweighting of food, household essentials and other necessities compared to the broader retail marketplace.”
Retail Trade Comparative Data
The table below provides historical comparative data with the U.S. Commerce Department’s Advance Monthly Retail Trade data excluding food service:
The NRSInsights data have not been adjusted to reflect inflation, demographic distributions, seasonal buying patterns, item substitution, or other factors that may facilitate comparisons to other periods, to other same-store retail sales data, or to the U.S. Commerce Department’s retail data.
NRSInsights Reports
The NRSInsights monthly Same-Store Retail Sales Reports are intended to provide timely topline data reflective of sales at NRS’ network of independent, predominantly urban, retail stores.
Same-store data comparisons of May 2023 with May 2022 are derived from approximately 149 million transactions processed through the 13,956 stores on the NRS network that scanned transactions in both months. Same-store data comparisons of May 2023 data with April 2023 data are derived from approximately 197 million transactions processed through 20,409 stores.
Same-store data comparisons for the three months ended May 31, 2023 with the year-ago three months are derived from approximately 372 million scanned transactions processed through the NRS network in both quarters.
NRS POS Network
NRS operates the largest POS network for independent retailers in the U.S., aggregating data from approximately 25,000 active POS terminals operating in approximately 21,000 independent retail stores. Its platform predominantly serves urban, small-format, independent, retail stores including convenience stores, bodegas, liquor stores, grocers, and tobacco and sundries sellers. The network includes retailers in all 50 states and in 194 of the 210 designated market areas (DMAs) in the U.S. Over the past twelve months, NRS’ POS terminals have processed $15.0 billion in sales through approximately 1.07 billion transactions.
About National Retail Solutions (NRS):
National Retail Solutions operates a point-of-sale (POS) terminal-based platform and digital payment processing service for independent retailers and bodega owners nationwide. Retailers utilize NRS offerings to process transactions and manage operations more effectively. Advertisers access the terminal’s digital display network to reach these retailers’ massive, predominantly urban customer bases. Consumer packaged goods (CPG) suppliers leverage the NRS platform to provision promotions, coupons, and special offers to independent retailers. NRS is a subsidiary of IDT Corporation (NYSE: IDT).
All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate,” “target” and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks, and should be consulted along with this release. To the extent permitted under applicable law, IDT assumes no obligation to update any forward-looking statements.
NRSInsightsContact: Suzy Silliman SVP, Data Strategy and Sales at NRS National Retail Solutions suzy.silliman@nrsplus.com
