IDT Corporation

Good evening and welcome to the IDT Corporation's fourth quarter and full fiscal year 2021 earnings call. In today's presentation, IDT's management will discuss IDT's financial and operational results for the three and 12 month periods ended July 31st, 2021. During remarks by IDT's Chief Executive Officer, Shmuel Jonas, all participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After the prepared remarks, Marcelo Fisher, IDT's Chief Financial Officer, will join Mr. Jonas for Q&A. Any forward-looking statements made during this conference call, either in the prepared remarks or in the Q&A session, whether general or specific in nature, are subjected 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 they have made or may make, or to update the factors that may cause actual results to differ materially from those that they forecast. In the presentation or in the Q&A session, IDP management may make reference to the non-GAAP measures, including adjusted EBITDA, adjusted EBITDA less capex, non-GAAP net income, and non-GAAP earnings per share. A schedule provided in the IDP earnings release reconciles adjusted EBITDA, adjusted EBITDA less capex, non-GAAP net income, and non-GAAP earnings per share 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. The earnings release has also been filed on a form 8K with the SEC. I will now turn the conference over to Mr. Jonas.

Thank you, Operator. Welcome to IDT's fourth quarter and full fiscal year 2021 earnings call, covering results for the three and 12 months ended July 31st, 2021. I'm joined today on the call by Marcella Fisher, IDT's Chief Financial Officer, and we'll both be available to answer questions after my remarks. My discussions today focus on the fourth quarter fiscal 2021 results. For a more detailed report and discussion on our financial and operational results for both Q4 and the full fiscal year 2021, please read our earnings release filed earlier today and our Form 10-K. We expect to file the 10-K with the SEC on or about October 14th. We continue to drive strong improvement in IBT's results during the fourth quarter, powered by growth at Netophone, NRS, and our mobile top-up business. Let's focus first on Netophone. Netophone subscription revenue growth accelerated in the fourth quarter, increasing 46% year-over-year. Growth in our Latin American, U.S., and Canadian markets was, again, very strong. Our subscription revenue margin remained robust, increasing 10 basis points to 83.5%. Netophone's strategic focus on mid-sized businesses, our multi-channel go-to-market strategies, and deeply localized in-country offerings consistently generate gross margins and revenue growth metrics above UCAS industry averages. But really, the exceptional results at Netophone are the collective efforts of the focused customer-centric group of people around the globe that is Netophone. Customers of Netophone don't hear no very often, If they want or need something to help them better communicate, we find a solution for them. Netaphone is becoming a big company, but we are not becoming the kind of big company that has different departments for large enterprises and a different department for small companies. And we don't have SLAs that differ depending on what you pay us. At Netaphone, no matter whether you are running a large global enterprise from Texas or a five-person startup in Brazil, you are going to get a truly localized, custom-tailored communication solution with outstanding service and reliability. Of course, we continue to work on the spinoff of Netophone. We believe the financial and legal preparations will be substantially completed by calendar year end to enable a tax-free spinoff early in 2022, should our board authorize it. Within our FinTech segment, NRS revenue increased by 76% year over year, led by increased sales of merchant services, and specifically, NRS pay payment processing. Advertising and data sales at NRS were also robust in the fourth quarter. At July 31st, NRS had over 14,000 active terminals and over 5,600 payment processing accounts, more than double the number of accounts a year earlier. Average revenue per terminal exclusive of terminal sales increased from $126 in the year-ago quarter to $169 in the fourth quarter of 2021. We believe that ARPA will continue to climb with the addition of new NRS pay accounts, increased utilization of our enormously powerful advertising network, and further utilization of data offerings by our consumer packaged goods partners, just to name a few. Also within our FinTech segment, money transfer revenue decreased 49% compared to the year-ago quarter. As we have discussed previously, a transitory foreign exchange market condition materially boosted revenue and gross profit in the fourth quarter of fiscal 2020, and persisted through the second quarter of fiscal 2021. Absent that impact, fourth quarter fiscal 2021 revenue would have increased by 36% compared to the year-ago quarter. Sequentially, money transfer revenue increased by over 6%. And finally, turning to our largest segment, traditional communications continued to exceed our expectations. Traditional communications revenue in the fourth quarter increased 10% year-over-year, Within traditional communications, mobile top-up revenue increased by 41%, powered by increases in sales in its B2B channel. We expect that our efforts over the past year to expand our mobile top-up business into the African market, led by the recent acquisition of a majority stake in a mobile top-up operator with an extensive footprint in Africa, our increased focus in the B2B space, as well as the growing demand for data-heavy services worldwide, will continue to drive mobile top-up revenue growth. Fourth quarter earnings per diluted share increased to 146 from 82 cents in the fourth quarter last year. The increase reflects the positive impact of an income tax valuation allowance reversal in addition to the strong improvements in the underlying profitability of several of our business units. Cash generation during the quarter helped to drive an increase in cash and current investments of $34 million during the quarter and $52 million during the fiscal year. to $161 million as of July 31st, and we have no debt. Following the quarter close, our NRS business sold a 2.5% stake to a private investment fund for $10 million, implying a $400 million valuation for that business. That was based on approximately 19 times NRS's trailing 12-month revenue at the end of our third quarter. I want to wrap up by thanking and congratulating everyone in our organization on what was, by any standard, a remarkable ending to a very strong fiscal year. We have not only endured COVID's multifaceted challenges, but over the past several quarters we have dealt, like many other companies across the country and across the globe, with supply chain issues that impacted our inventories of phones, POS terminals, and other hardware. Throughout, we have maintained our focus and succeeded in executing on our key objectives. Now, Marcel and I will be happy to take your questions.

We will now begin the question and answer session. To ask a question, you may press star, then 1 on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star, then 2.

At this time, we will pause momentarily to assemble our roster.

Okay, the first question is coming from Connor Haley from AltaFox CAP. Your line is live.

Hi, guys. Congrats on the great quarter. Just one quick one from me. Your international mobile top-up business had another quarter of very impressive growth. We noticed that a private equity firm recently bought a majority stake in a mobile top-up business called Ding, valuing it at $300 million, according to press reports. Can you maybe explain to investors how your international mobile top-up business compares to Ding? How do you think about the growth opportunity for your IMTU business going forward? Thanks.

Hey, Conor. Thank you for joining our call today. You are right. We also read about a month ago that Ding received a valuation of about $300 million on a transaction that they did. I mean, Ding is a private company, Irish company, so we don't know any of the details in terms of the transaction. But we do welcome seeing the valuation that they got, given that we consider them to be a pretty good comparable to our business. Like business-wise, both Ding and ourselves compete in the same space. We really believe that we measure up to DING quite well, both in terms of size and performance. While we are very strong in the U.S., in our mobile top-up offerings, and not too strong outside of the U.S., DING is the opposite. They have very small presence in the U.S. They are very strong outside of the U.S., Their sales presence is just online. We at IDT have a very robust presence, both online and in the retail channels in the US, where our mobile top-up is part of our broader bus evolution suite of products. I think they are probably a little larger than us on the wholesale B2B channel, but that has been a channel that we have grown quite substantially in the last six months, and we are very focused in growing that channel as well. So that's kind of how we compare a little bit ourselves to Dink. In terms of where our mobile top-up business is heading, I mean, we are doing now north of $500 million in sales, for mobile top-up, but we really believe there is still significant growth opportunities for us in growing that business. For example, if you think about from a market perspective, as I said earlier, we are generating all of our sales mostly out of the U.S., and there is significant potential for us to expand to other markets like in Canada, Europe, Asia, Africa, the Caribbean. As Shmuel mentioned in his remarks, we recently acquired a mobile top-up operator that has an extensive footprint in Africa, and we are going to take advantage of that to expand our services and participate in that massive opportunity that Africa represents. And we also think that the opportunity of acquiring that company to continue to grow beyond our retail channel in the U.S., you know, into the B2B channel. And we are putting a lot of investment on our platform, you know, to provide the B2B services. And finally, I would say the following, right? And I think Dave is probably a mobile top-up operator. So are we today. But we view this business to be much more and just mobile top-ups. We think of ourselves as a company which is facilitating all kinds of prepaid payments across the world. So not only do we have an active catalog right now of thousands of mobile top-ups, but we also have grown our offering to include now gift vouchers and data packages and content subscriptions. So we really want to become a global hub for all things that are prepaid or digital prepaid. And again, we welcome the fact that investors are assigning valuations now into companies playing in this space.

I mean, I think Marcel said enough. I don't really need to add much to what he already said. But I guess the only bad part I can see is that It's always better when your competitors have less money than when they have more money. I think Marcel hit on this, but I think that really what differentiates us more than anything is we really are the only company of our kind that really competes in every vertical of mobile top-up, both from... you know, being a wholesaler to being a retailer to being a direct-to-consumer. And I think that that's really, you know, another feature that makes us unique is we're not a one-trick, you know, pony. Wherever you need it, we are. And, again, there's more to come. We'll expand on that in further quarters.

I would just add one more thing, Conor. As you know, we have been in the telecom space for now almost three decades now. And because of that, we have been able to establish very strong, robust, direct connections with most of the leading mobile operators globally. And therefore, today, about more than 90% of our sales volumes in mobile top-up comes from those direct connections. connections, those direct deals we have with Donald Rubber, we use very little in terms of aggregators in this space. And that, I believe, definitely gives us a significant edge in our cost structure and margins for this business.

Thanks, guys.

Okay, the next question is coming from Hassan El-Sawi from EH Research. Your line is live.

Hey, guys, just a quick question on the Boss Revolution money transfer business. How do you think about comps like TransferWise, RTGS, who all are talking about, like, kind of losing their bits off their take rates, international money transfer fees going to 0%? Are you seeing some of that in Boss Revolution? And if so, are you kind of just running that as a loss leader for the mobile pop-up? Or how do you think that's impacting, like, Boss Revolution business? on a bigger scale outside of just money transfer?

I definitely don't see the headwinds that you're referring to. I haven't, to be honest, heard them remark that. I will say that I think that over time, the way people make money on money transfer will change. I think that, you know, more of it is going to be made on, you know, the spend of the money that's sent rather than, you know, the fee that's paid or the FX margin that's made, you know, like you have today. And we intend on, you know, being in that space to make money, you know, in country I'll call it rather than just on the send side. And you'll see the beginnings of our foray into that with our own neobanking products here, which we intend to also launch outside of the U.S., including some other things that I don't really feel like I can talk about that much yet. But I don't view it as a gateway to IMTU at all. I view it as a business onto its own that's going to be substantial. It happens to be that a lot of the same customers do also buy IMTU. I will agree with that.

Okay, thanks. And maybe one more quick one. A couple quarters ago, you guys mentioned working on a lot of businesses in the background. I guess we kind of just heard a little bit about some of the neobanking that you've got going on. Are these mostly in that same kind of like end market, banking, payments, telecom stuff that you guys are working on? Or can you maybe give some more color on some of the maybe not specifically businesses, but just end markets in general that you're working on, the businesses you're working on in the background?

Yeah, I mean, again, I would say that most of the things that we're working on in the background, you know, are, you know, somewhat related to things we already do. You know, communications, payments, you know, FinTech in general. So, you know, again, I could, you know, go on and on, you know, like for hours about it, but... Yes. I mean, the very simple answer is most of them are related to payments and communications, both on the consumer side as well as on the business side.

Awesome. Thanks, guys.

Okay. The next question is coming from Matthew Urvanki from Leafa. Your line is live.

Hey, guys. So my question is kind of pertaining to how IDT looks like a business that has a lot of exposure to various components or segments of the telecommunications space. How do you see these company segments growing given their lack of individual scale and ability to differentiate their product or service?

I don't know. I mean, again, I think we continue to scale every one of our businesses. I'm not sure where that question comes from, but maybe you want to elaborate?

Sure. Obviously, you have kind of four main business segments. Obviously, I think you're not the largest competitor within those segments. How do you see your products specifically or services growing given that lack of scale?

Well, I mean, again, I like to believe like that, like, you know, the, the, the real thing that makes IDT better than everyone else, in my opinion is, is, you know, is grit. Like we, you know, um, you know, we're scrappier, we work harder, we fight harder, you know, than, than, you know, I'm not going to say every competitor that we have, we have some great competitors and lots of businesses. Um, and there's some great products out there that are, that aren't our products. Um, You know, that being said, I think that, you know, like, you know, we really try harder. Like, you know, we both are in the service that we give, you know, to our retailers and the products we give to our consumers. You know, we focus on the details. We, you know, we really try to give, you know, all of our, you know, our customers a great experience with us. And, you know, I think that that's what, you know, has helped us achieve, you know, continued growth in all of the different segments that we're in. And yes, we're not, you know, the biggest UCAS player, but, you know, you try to get the biggest UCAS player, you know, engineering department on the phone when you have an issue and you're a nine-person, you know, law office in Brazil, I can pretty much guarantee you, like, you're going to wait on the phone for about nine hours and then they're going to hang up on you. And we... You know, we service our customers, you know, day in, day out. You know, like our tickets that get opened get closed. And, you know, that's really what differentiates us is, you know, our customer focus.

Yeah.

If I could just add to that, right, in all the businesses that we have chosen, we have chosen to compete in very unique niche categories, looking for opportunities in each one of those segments. For example, in the case of NRS, We really are dominating the bodega independent retailer market. We have huge distribution into that space, and we're becoming the primary provider of POS systems and leveraging everything we can out of that network. Similarly, in the case of NettoPhone, we have chosen to compete primarily in the small, medium-sized SMB market. business with a multi-channel offering, choosing the right geographies where we see above average growth and opportunities, which differentiates us a lot with some of the larger number one, number two players in each one of these categories. Our goal is not necessarily to be the number one, number two player, but to be the best player in the categories and in each market that we choose. When you think about our international long-distance voice businesses, Pinless and Carrier, I think that we are probably the best operator on the international long-distance minutes business. And no other company draws more economics and better economics out of a minute of use than we do.

Awesome. Second question here. You appear to have made several new hires in the sales space as of late. Could you just kind of walk us through your thought process behind that and how you see that accelerating growth?

I mean, hiring more salespeople, you know, means you're going to have more sales. So, I mean, you know, I think that it's really very simple. You know, like if we're getting good economics, you know, or good returns on investment, we invest more. It's really that simple.

Awesome. Thank you.

Again, if you have a question, please press star, then one. Your next question is coming from David Polanski from Immersion. David, your line is live.

Hey, guys. Thanks for taking my question. I want to talk about NRS. I mean, I'm really impressed with that business, particularly NRS. the monthly average revenue per terminal expansion from 131 to 169 a month. I mean, that's 29% in just one quarter. So I guess at like a high level, can you talk about the drivers for continued growth in that number? And can you, do you think that you can continue that performance?

I mean, probably not indefinitely. But, yes, I mean, I do think that we can continue that performance. I mean, we're, you know, the – I mean, you know, A, you know, on the merchant processing side of the business, you know, we really, you know, I mean, we don't have anywhere near the penetration that we believe that we can get to. You know, on the advertising side, you know, I don't believe we have – you know, even scratch the surface of where we can get to. You know, on the data, you know, the same. I mean, you know, again, we just started, you know, lending, you know, money to stores this past quarter. You know, like, the business, I mean, I know it's crazy to talk about it, like, that, you know, this is, like, it's completely nascent, but it's really completely, you know, nascent. I mean, we're going to... We're going to show remarkable growth from NRS that I think everyone will be very happy with. In terms of the amount we get per store, again, I think as we do a better job of signing up stores for more services and more products when we acquire them at first, probably over time the number will somewhat stabilize. But, you know, we believe there's lots of areas that we can add revenue from, you know, everything from, you know, selling them, you know, curated lists of products, you know, which we just started doing, you know, to, you know, managing their delivery services for them, you know, which, you know, we'll be rolling out over the next couple months. And each one of these services are things that our stores need to compete with. and that we can make money on. And, you know, we think we're, I mean, yes, we're driving, you know, a lot of incremental revenue for us, but we're driving way more incremental revenue for them from, you know, the products and services that we're bringing to them.

Yeah, and as a benefit to our investors, as you have noticed, this is the first earnings release that we have started to include a breakdown of the NRS different revenue streams, you know, the advertising and data, the facilities, the merchant services, and we hope that by giving that visibility to investors, you could see the potential for growth from those revenue streams and how they will help significantly to leverage our existing POS network.

Yeah, that's great. I mean, yeah, we all, I'm sure everyone really appreciates the disclosure. I mean, it's, you know, highlighting what is going to be one day a super, super valuable asset I guess if you could just highlight a little one, this is my last question. Could you talk a little bit about the data opportunities? So the data that you're selling, I feel like when I talk to other investors, they don't really understand just how lucrative that could be. So could you talk, I guess, at a high level just on the data opportunities specifically within NRS?

I mean, at a very high level, and again, it's been a year or two since I've had to pitch it to a company on my own. I think the people that are there do it really, really well. But I would say if you're Procter & Gamble, you really want to know what Unilever is doing in the same stores that you are. You want to know. you know how you know the products that are in you know in each of your categories is doing compared to them you want to know if the companies that you hire to make sure that the products are on the shelves are actually putting those products on the shelves you want to know how many are moving when you lower the price or when you offer you know incentives I mean that there's literally a hundred different you know data points on any product category that's important to a consumer packaged goods company to figure out what their next move should be. And frankly, the independent convenience store market has been a complete black hole to them. And we really are the first company that has ever come in and been able to give them you know, a real understanding of what's happening in that market, you know, the good, the bad, and the ugly. You know, I mean, you know, and, you know, we think that over time, you know, that data has only become, you know, significantly more valuable. And, you know, as we, you know, grow our network and, you know, go into, you know, larger stores and, you know, larger chains, it becomes even more valuable. So it's kind of, you know, a self-fulfilling prophecy just based on, you know, the way the business is growing.

So you're able to sell data to individual CBG companies, not just the third-party data aggregators. So there's a lot of potential customers here.

That's correct. I mean, when you're buying the data from the third-party aggregators who, you know, today are, you know, probably our largest, you know, source of revenue, you're getting, you know, much, much more you know, wide, you know, spectrum, you know, like a shotgun, you know, approach to the data, I'll call it. As opposed to when, you know, you're buying it, you know, tailored to you, you know, you're getting, you know, the data in exactly the way that you want and the reports that you want to see. It's, you know, it's just a completely different product. I mean, you know, one gives you, You know general information one gives you like the absolute most you know my new amount of information, you would want to be. Like how are the swords in you know the southern half of the city, you know doing versus the western half of the city, you know you know versus you know or two zip codes right next to each other, I mean you can really you know scrub it any way you want.

So this – and you're operating in basically, like you said, like a black box. So this is really valuable data that nobody else has aggregated. So this is in demand.

People want this. A hundred percent. I mean, again, like, you know, this is the type of data, you know, that, you know, a Walmart can offer, you know, a CPG. But, again, it's only, you know, they sell, you know, stuff for a fixed price. You know, so it doesn't, they don't have the ability to see if you price it at a dollar less or if you give a, you know, an incentive a dollar more or, you know, if you put it, you know, in promotion in this area and not in this area, what will happen. You know, that kind of, you know, there's also some, I'll say test and learn that they're able to do in our markets that they're not able to do even in bigger chains. I think that they're using that, you know, to really, you know, drive their business in other areas besides, you know, our own area.

That's great. And I guess what I kind of meant by that was, like, in terms of markets, like the bodega communities, like nobody else has eyeballs in that market. That's what I was asking.

I mean, you know, I'm sure there's somebody else that has, you know, some eyeballs in bodegas, but there is no one that has anywhere near that. you know, the amount of data and, you know, the granularity and the systems to process it that we do.

Well, awesome. All right. Thanks, guys. I'll hand it over.

Okay. We have a follow-up from Hassan Asawi from EH Research. Hassan, your line is live. Okay.

Hey, guys. I just wanted to hop back in line and follow up on something David asked about. You mentioned when you're deploying these NRS terminals, the stores are actually seeing their own revenues get a little bit of an uplift. Could you just, A, explain really how that's working? And then, B, if you have any idea of direction on the magnitude of that revenue uplift for the stores that you're deploying these terminals in?

You know, again, on the magnitude, you know, we don't break it out. And frankly speaking, like it varies, you know, a lot from, you know, from retailer to retailer. I mean, we have, you know, retailers that have seen, you know, 80 to 100%, you know, increases in their business after, you know, deploying our system. But, you know, we really give them the management tools to see, you know, how their business is doing, to see what their, you know, gross profit is on items, what they're out of stock. you know, levels are, you know, which are the top 50 items, you know, in their area that they're not carrying, you know, et cetera, et cetera. And, again, like any tool, you know, the tool is only as good as the person who is, you know, using it. So, you know, if you don't, you know, you could have, you know, an iPhone and use it only to make, you know, phone calls and then, you know, you might as well have a flip phone. On the other hand, you can probably do everything from your iPhone that you can do from your desktop computer, which makes it a really powerful tool. So I think that it really obviously depends on the retailer, how much of a benefit they're going to see from it. But almost all retailers are seeing a benefit from it, both from the fact that our merchant processing is very low fee, very simple, and it makes people use their credit card more than they had been before, and that in and of itself drives sales. The advertising in stores for products that they're selling in those stores drives sales for those products. Again, the fact that we give them the data tools themselves to see how they're doing on each of these categories lets them figure out what they should be doing in their business to drive sales. We tell them which are their busiest hours, so maybe they're opening an hour earlier than they need to be or closing an hour earlier than they should because, you know, they're close, you know, and those types of decisions really, you know, let them, you know, make more intelligent choices for their business.

Okay, awesome. That makes a lot of sense. That's interesting. It's like a little like business intelligence tool wrapped into a payment system. I'm not sure if I missed this in some of your filings, but Could you just like directionally walk us through the economics of like deploying a single terminal? Just thinking about like cost of deploy. I imagine like coming in at the top line because you've got data, you've got the payments processing fees, it gets a little bit messy. But if you could just like directionally guide us and like how you guys think about like the per terminal returns as you start to deploy these in more stores.

Well, I mean, I think that we sort of got, you know, a similar question earlier with, you know, we broke out the ARPU, you know, per terminal, you know, this quarter. So, again, as I said, I believe that you're going to continue to see, you know, good improvement on that ARPU for a significant period of time. As I said, I don't think, you know, it expands at the same rate that we've been doing it forever, like, you know, I wish I could do that, but I don't think that's reality. That being said, as I said, I think the penetration in stores of all of our services is still very low, so you're going to see massive improvement from just better penetration in general. Again, we are adding lots and lots of features. Essentially, like NRS to a degree, it's one business, but it's also many different businesses all in one. You know, so the funding, you know, is one business, you know, all unto itself. You know, the data is one business unto itself. The payments is one business unto itself. The software is one business unto itself. You know, the delivery and e-commerce, you know, is a business unto itself. You know, the core of that product is the POS and, you know, the, you know, you know, the great user experience and the great service that we, you know, that we, you know, and price, frankly speaking, that we give our customers, you know, for this, you know, for this product. I mean, you can get a POS that probably, you know, does some of the things that we do. It's just going to, you know, you know, cost you probably eight to 10 times, you know, as much upfront and, you know, probably, you know, 20 to 30 times as much, you know, on a monthly basis, you know, I mean, SAP and, you Any major company sells fancier equivalents. But for an independent store, this is really an amazing deal besides everything else.

Awesome. And just one more quick one before I'll maybe hop back in line again. It sounds like you're using the POS almost like a land and expand thing with your customers. How successful are you finding that? Are many of the customers coming just for the terminal and then over a few months, a year, you're starting to monetize them through some of the other services? Or it's more like you have the ability to do that and it's only now starting to catch on?

I mean, it's both. I mean, I think that, A, things always take time until they improve to a point where you know, the ball really starts, you know, rolling, you know, quickly. You know, by the same token, there's also a lot of new products that, you know, we've, you know, barely introduced already. And, you know, you're not going to see those, you know, in our results for, you know, a couple of quarters, but they're going to be, you know, huge.

Okay, awesome. Awesome. Thanks, guys.

Okay, we have a question coming from Chical King, private investor. Chical, your line is live.

Hello? Hello?

Yeah, you're here, we hear you. Do you hear us?

Yeah, yeah, yeah. I had a question about the monthly average revenue for terminal. Could you talk more, could you tell us the difference between the average revenue for NRS pay and then the regular, just the regular terminal?

We don't break it out specifically. But, I mean, again, you know, the price that we charge for our terminal and the price we charge for our service, as well as our merchant processing, is all very, very simple and easy to find. Go to NRSplus.com, and, you know, the pricing is right there.

Okay. And then I have another question about just the penetration of NRS pay, because it seems that you have 900 more terminals for this quarter, right? and 900 new NRS-PAY terminal. Was it mainly from NRS, or the new terminal from NRS-PAY, or was it like a mix of the two?

I'm not 100% sure I understand your question, but about two-thirds of the new terminals are taking NRS-PAY.

Yeah, that was my question, yeah. So it was, okay, okay, thank you.

This concludes our question and answer session and conference call.

Thank you for attending today's presentation. You may now disconnect.