IDT Corporation (NYSE:IDT) Q1 2020 Earnings Conference Call - Final Transcript
Dec 05, 2019 • 05:30 pm ET
Good day, and welcome to the IDT Corporation's First Quarter Fiscal Year 2020 Earnings Call. In today's presentation, IDT's management will discuss IDT's financial and operational results for the three month period ending in October 31st of 2019.
During prepared remarks by IDT's Chief Executive Officer, Shmuel Jonas, all participants will be in a listen-only mode. [Operator Instructions] After the prepared remarks by Marcelo Fischer, IDT's Chief Financial Officer, will join Mr. Jonas for Q&A.
Any forward-looking statements made during this conference call either in their prepared remarks or in the Q&A session, whether general or specific in nature, are subject to risks and uncertainties that may cause actual results to differ materially from those which the Company anticipates.
These risks and uncertainties include, but are not limited to, specific risks and uncertainties discussed in the reports that IDT files periodically with the SEC. IDT assumes no obligation either to update any forward-looking statements that have made or may make or to update the factors that may cause actual results to differ materially from those they forecast.
In their presentation or in the Q&A session, IDT's management may make reference to non-GAAP measures, including adjusted EBITDA, non-GAAP net income and non-GAAP EPS. A schedule provided in the IDT earnings release reconciles adjusted EBITDA, non-GAAP net income and non-GAAP EPS to the nearest corresponding GAAP measures.
Please note that the IDT earnings release is available on the Investor Relations page of the IDT Corporation website at www.idt.net. Their earnings release has also been filed on Form 8-K with the SEC.
I would now like to turn the conference over to Mr. Jonas. Please go ahead, sir.
Thank you, Operator. Welcome to IDT's first quarter fiscal 2020 earnings call covering results for the three months period ended October 31st, 2019. I'm joined today on the call by Marcelo Fischer, IDT's Chief Financial Officer. For a more detailed report on our results, please read our earnings release filed earlier today and our Form 10-Q, which we will file with the SEC next week.
We delivered consistent results in the first quarter of our 2020 fiscal year, highlighted by expansion of our higher margin growth initiatives and expansion of our lower margin Mobile Top-Up service offset by the expected decreases in our BOSS Revolution Calling and Carrier Service revenues.
Net2phone's cloud-based UCaaS offerings increased revenue 50% year-over-year, and 35% excluding the impact of our acquisition of Versature, while subscription revenue increased 87%. Net2phone's UCaaS revenue growth this quarter, although strong, came in below our internal targets.
We are working to accelerate deployments of new feature sets later this fiscal year that will enhance our ability to compete and win larger accounts, particularly in the US where agents and customers are escalating their requirements for advanced functionalities.
During the first quarter, we launched a net2phone third-party agent partner portal in key international markets and expect to see a significant positive impact from this initiative in the coming quarters. At October 31st, net2phone served 112,000 seats globally,