IDT Corporation (NYSE:IDT) Q1 2019 Earnings Conference Call Transcript

Dec 04, 2018 • 05:30 pm ET


IDT Corporation (NYSE:IDT) Q1 2019 Earnings Conference Call Transcript


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Good day everyone and welcome to IDT Corporation's First Quarter Fiscal Year 2019 Earnings Call. In today's presentation, IDT's management team will discuss IDT's financial and operational result for the three-month period ended October 31st, 2018. During prepared remarks by IDT's CEO, Shmuel Jonas, all participants will be in a listen only mode. (Operator Instructions).

After the prepared remarks, Marcelo Fischer, IDT's SVP of Finance and Principal Financial Officer will join Mr. Jonas for a Q&A.(Operator Instructions)

(Forward-Looking Cautionary Statement)

With that I would now like to turn the conference over to Mr. Jonas. Please go ahead with your presentation.

Shmuel Jonas

Thank you, Operator. Welcome to IDT's first quarter fiscal year 2019 earnings call, covering results for the three month period ended October 31st 2018. I am joined today on the call by, Marcelo Fischer, IDT's CFO. In my remarks, I will focus on the first quarter's results as well as overall strategy. For a more detailed report on our financial results please see our earnings release filed earlier today and our Form 10-Q which we will file with the SEC next week.

This quarter we are reporting revenue within our two operating segments and a new structure of verticals to more accurately reflect our business strategy and the way that management looks at the business units or providing investors with more clarity into our top-line and operating performance. Please see our earnings release for additional details.

IDT continue to make progress in the first quarter with increasing operating income and robust investment in our exciting growth initiatives, including net2phone's UCaaS offerings, National Retail Solutions point-of-sale network, our international money transfer business and BOSS Revolution Mobile. net2phone's UCaaS offering doubled its revenue compared to the year ago quarter, expanding through both the domestic channel and adding new markets in Canada, Mexico and Colombia. Looking ahead, we expect to continue to build this business through a combination of international expansion, growth in our partner channels in the US and seeking other additional acquisition focused on new markets and capability enhancements. net2phone released in beta its new proprietary UCaaS platform in the first quarter. The early feed-back has been positive. We continue to enhance and refine the platform and will begin to enroll new customers on the platform as early as the current second quarter.

National Retail Solutions now has over 6,000 terminals active on its retailer point-of-sale network compared to 3,000 a year ago and it is now adding about 1,000 new retailers each quarter. NRS revenue increased 69% year-over-year, and has only just begun to develop promising new network-based services and offerings including data analytics and out-of-home advertising.

Our money transfer business' direct-to-consumer channel revenue increased by over 160%, driven by the expansion of our global disbursement network and the effectiveness of our app. These technology driven initiatives are increasingly impactful and we have only just begun to tap their respective market opportunities.

On a consolidated basis, the headwinds in the global per-minute calling sector impacted revenues from our BOSS Revolution Calling