IDT Corporation

Good evening and welcome to the IDT Corporation Second Quarter Fiscal Year 2023 Earnings Call. In today's presentation, IDT's management will discuss IDT's financial and operational results for the three-month period ended January 31, 2023. During remarks by IDT's Chief Executive Officer, Smule Jones, 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 Mr. Jonas' remarks, Marcelo Fisher, IDP'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 subject to risk 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 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 earnings or loss per share. A schedule provided in the IDT earnings release reconciles adjusted EBITDA, non-GAAP net income, and non-GAAP earnings or loss 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 the Form 8K with the SEC. I will now turn the conference over to Mr. Jonas.

Thank you, John. Welcome to IDT's earnings conference call. After my remarks, Marcella Fisher, IDT's chief financial officer, will join me and we'll be available to answer your questions. My speeches lately have been a little long, and personally I prefer short and sweet, so today that's what we're going to do. On the second quarter, the three months ended January 31st. You can read a more detailed discussion of our financial and operational results from our earnings release filed earlier today or our Form 10-Q that we expect to file with the Securities and Exchange Commission early next week. NRS, Boss Money, and Etfone are three primary high-growth businesses, again, performed very well this quarter. Their formula is simple, deliver exceptional value and superior customer experiences. I'm pleased that they continued on their growth trajectories while remaining very focused on improving their bottom lines. Each of these businesses grew robustly in the second quarter. NRES added approximately 1,600 net new terminals this quarter, a record increase, and more than doubled its recurring revenue. The revenue increase was led by a year-over-year jump in advertising and data sales, which grew by 130%. NetPhone achieved 30% year-over-year subscription revenue growth, including a 35% increase in our Latin American markets and a 23% increase in our U.S. market. At Boss Money, transaction volumes through both our retail and direct-to-consumer sales channels increased by 39% year-over-year as we continue to leverage the synergies between these two channels. Led by the contributions of these three businesses, IDT delivered significant year-over-year increases in quarterly adjusted EBITDA, up 25% to $23 million, in income from operations, up 32% to $18 million, and in earnings, which more than doubled to $0.56 per share. Our strong operating results this past quarter enabled us to further strengthen our balance sheet. At the quarter's end, we had over $156.8 million in cash, cash equivalents, debt securities, and current equity investments, an increase of nearly $20 million over the first three months. Once again, we had no debt. I want to wrap up by thanking our stockholders, both our long-term investors and those that are new to our story, for putting their faith and their capital with us. And finally, a huge thank you to our employees, some of whom continue to work under difficult conditions overseas for their many contributions above and beyond the ordinary. The best thing about IT is our amazing team whose hard work and innovative spirit powers all our progress. Now Marcelo and I will be happy to take your questions.

Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touch tone phone. If you are using a speaker phone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. We will now pause momentarily to assemble our roster. The first question comes from David Polanski with Immersion Investments.

Hey, guys. Shmuel, I think you win the award for shortest prepared remarks of any public company that I've ever listened to. So if they give out medals for that, congrats. I think you should be getting one soon. But on to my questions. I want to talk about advertising and data a little bit within NRS. It's now on a trailing 12-month basis. It's over 50% of NRS revenue excluding terminal sales. So I think the data and advertising piece of that business is not super well understood. I think people know point of sale generally and they know about payments, but the marriage of data sales and advertising from a point of sale is not I don't think it's super well understood amongst investors. So could we get one could we get an update on advertising? So like, where are you in terms of penetration, developing relationships there and selling more advertising? And then on data? Could you speak high level about why your data is attractive and sort of what is so interesting about the NRS offering to maybe a third-party data aggregator or a CPG company. That would be great. Thanks.

Okay. Well, first of all, thank you for recommending me for the award for shortest speech. I appreciate that. I wear that badge with honor. And, I mean, Listen, I wish that we had more direct salespeople working for us at NRS on the advertising front. The ones that we have have been very, very productive and have really done a great job showing our customers the value that they're getting from advertising on the NRF terminals, both to consumers as well as to the merchants. As far as the data, there's two things I would say just generally. One is that Until now, I would say the data available to CPGs and a variety of other organizations that buy our data has been very, very limited. limited. So the biggest piece is that when people have nothing and you give them something really amazing, they're even more wowed by it than if they had something before. So we have scan data from pretty much all of our stores. And just to use an example, a manufacturer can see exactly how much in sales they're doing in a particular store, in a particular zip code. They can see how their competitors are doing. They can see how their pricing affects their sales. They can see how discounts that they're giving to consumers are affecting their sales. They can really see basically what I would say is everything that they could get from a big box retailer, but maybe even more because in a certain way I think that we're more open with them than what some of the big box retailers might give them. They might not give them what their competitors sell, just as an example. They might not give them, if they were doing testing on pricing, you know, pricing is affecting, you know, sales volume. And, you know, the manufacturers, you know, that we deal with see, you know, great value in that. And, you know, they also want to see how their, you know, advertising dollars, you know, in our stores are, you know, are doing for them. And that's another reason that they buy the data because they, you know, they can see, you know, the impact from one to the other. Maybe Marcel wants to add something to that.

No, I was just thinking, David, I mean, like, yeah, I mean, obviously we are very, very pleased about the data performance. But just to be totally honest, we actually, underperforming was what we had budgeted in the beginning of the year. And of all of our segments, NRS is the wonderful fund versus budget, even though it's our fastest growing segment, because when we did the budget back in June, July, we were really hoping that the broader advertising market would be stronger than they are. We are feeling the headwinds to advertising revenue like everybody else is feeling. But on the other hand, we provide our digital screens inventory out there, mostly for programmatic buyers to match it with sellers. And we believe that digital screens are better than most of the inventory out there, you know, because of the amount of time that people are looking at the screens as they're approaching, you know, to pay for the goods at the NRS stores. So, yeah, we are very happy with it. It's a great element of our business model to have the advertising. But even said that, no, it's a little softer than what we had hoped it would be because of the macro situation.

Great. Thank you. On terminal sales and signing on new relationships, can you give us an update on how many of those sales are coming from direct NRS versus maybe a – IDT salesperson from a traditional channel just to help us kind of think about, you know, is NRS ready to sort of stand on its own, so to speak, or are you still relying heavily on the traditional IDT distribution channels?

I don't have the numbers in front of me for this quarter in terms of where units were sold from, but I would say that we're still getting about a third from IDT, about a third from direct, and about a third through distribution channels.

Okay, great. Net to phone, can you talk a little bit about the profitability and the performance there? I mean, you know, I think I mentioned last quarter, you beat our estimate on EBITDA and you did it again this quarter. So I'm just trying to think about where this business could be from profitability perspective and maybe 12 to 24 months.

Yeah, I guess I'll start with that. We had a very good NetPhone quarter, period. Very pleased about how NetPhone did. Yeah, they did about $800,000 in EBITDA. And based on the performance, I would even venture to say that we might be exiting this fiscal year, now June, July, with Netofoam not only being EBITDA positive, but even being, by then, cash flow positive, meaning it covers its capex expenditures in buying the IP phone, the tracker. So we might be editing already Netofoam being a free cash flow generating company. I would want, and that we saw a good 30% subscription this past quarter. I would caution that as we're going to Q3, that will be the first quarter where our CCAT acquisition will be in the numbers year over year, so Q3 will be purely organic growth as opposed to having some of the acquisition effect, so we're still hoping to grow Q3 at 20%, 25% rate going forward. So we see a net of funds that continues to grow 20% on a go-forward basis and starting to generate positive cash If anything, Q3 might be even stronger than Q2 because Q2 has the summer months, so things are a little more quiet during the holidays in terms of business sales and it's the summer in South America, which is a big portion of our business. So we may even do better in Q3 than Q2. And I think one of the big challenges One of the big good KPIs we saw in Q2 is that our churn was really low. I mean, for the first time we were able to get consolidated churn below 1%. I hope that remains to be the case. But I guess it's an indication that we are doing things right. I think that our customers like our service. So all in all, I'm quite pleased with Netatron and what the management team is doing over there.

Yeah, I don't have much to add to what Marcelo already said. The one thing I would say is that while the acquisition of Integra was probably a little bit of a weight on next quarter, we're very, very excited about what that acquisition brings to the table. We are going to be investing heavily in bringing on more customers for our CCAS solution because we think, A, when you provide a business with both their sales, customer service, and regular business lines, you make them a much stickier customer. And, frankly, we think it's really a great solution at a great price, and it also raises, you know, our ARPU overall. So, I mean, you know, I think one of the things you'll see, you know, from NetPhone over the course of the next couple quarters is continued, you know, expansion of average revenue per user and and margins from Integra taking a deeper relationship into a lot of the customers that we already have. Some of what we're doing now is not just going after new accounts, but landing and expanding the accounts that we have into taking more services from us.

That's great. Thank you. I want to give you an opportunity to talk a little bit about maybe anything new that's going on in the pipeline. I think IDT has been very entrepreneurial in the past. There's this question hanging out there of what happens when NRS gets spun out? What's going to happen to IDT, the holding company? Should I even be interested in IDT, the holding company, as a potential investment? I guess if you could talk a little bit about if you're ready, what maybe what's going on behind the scenes and anything that we could maybe look forward to in the future. Yeah.

I mean, I'll just give you like, you know, two or three things like that are, you know, that come to my, my mind quickly today. I mean, you know, one is, you know, you saw the, our launch of Zendit. Um, I think that, that, that hit the press release a couple, uh, weeks ago. Um, And I was at our booth in Barcelona where we were showing it off. And that's a very exciting product for the top-up and gift card space. It allows developers to come in and basically set themselves up and start selling. And we think that... when you consider like the depth of our portfolio already, you know, the advantages that we have, you know, in pricing from the volume that we do, you know, already in retail and in DTC, we think that that, you know, that leverage is really going to, bring a lot of customers to us from both other players that are out there already as well as new customers who see this as a way to add services into things that they're already selling to customers. So that's one example. You know, we, you know, started marketing our bus money, you know, product overseas this past quarter. And, you know, we're very excited about how that, you know, is going to eventually develop to make money transfer, not just like a one-sided product, but a two-sided product, both, you know, in local markets as well as here. And we think that that's You know, I mean, there's a lot of different pieces to that that, you know, we probably won't get into on the call today, but, you know, that's another one that's very exciting. And, you know, again, we just keep, you know, adding on, you know, different pieces to all of our businesses and, you know, trying to, you know, sell them to consumers and businesses. That's, you know, our goal every day.

That's great. And just as a clarifying point on Zendit, what product, Is that going to be in IDT digital payments?

Yes, that's part of IDT digital payments. That's correct.

Okay. And what does that do when we think about the decay or the decline within traditional? I mean, can you, I guess, help understand what that could mean or is it kind of too early to tell?

I mean, listen, I don't have an answer of what it could be. I mean, I could say that, you know, that part of our business is a very large part of the traditional business, and, you know, we expect to make it an even larger part of the traditional business going forward, and Vended is a big piece of that strategy. Okay. Great.

All right, well, that's it for me. Thanks, guys. I'll pass it over.

Thank you. Thank you. Next question comes from Daniel Koch. Please announce your affiliation, then pose your question.

Hey, guys. This is Daniel from AltaFox. Thanks for taking the question. Agree with David that you probably just set a record on quickest prepared remarks. Had a quick one about Net2Phone. Pleased to see the Net2Phone ARPU up year over year, despite what I thought was some mixed headwinds from international markets. Can you shed some light on where the growth specifically is coming from? Are places like Latin America still showing pretty elevated pace of growth, or is that kind of slowed at this point?

You could see even from my short remarks today that we grew stronger in Latin America than we did in the U.S. I mean, that is definitely a big part of our growth strategy going forward is focusing on those markets. But Marcelo has some stuff to add.

Yeah. Hi. So, yeah, I mean, South America is growing, you know, very fast. You know, some markets like Mexico, Colombia, Brazil continue to grow very fast. Chile, faster than the U.S. So, you know, so the growth is good and strong, and we don't see it decelerating at all. And we also have, as you mentioned earlier, The higher ARPU growth now happening also from the CCAT side, right? When we acquired Integra, our CCAT player in Uruguay, March of last year, I think they had 6,500 seats at the time. So now we ended January with 9,000 seats. So in 11 months, you know, we grew those seats by about 35% and we're putting more investment behind them so they could grow faster. So, all of those areas are bringing the growth to Netofoam.

Got it. Thanks for that, Marcelo. One more quick one from me. I think you all might have one of the fastest growing money transfer businesses in the market now. The growth there is incredibly impressive. Can you all just shed a little bit more light on what's the underlying driver there and how sustainable these growth rates are going forward?

I mean, listen, I think that we are giving our customers great value. I mean, that's the number one thing that I think is driving our growth, and I think that's both on the retail side as well as on the direct-to-consumer side. You know, again, we spend a lot less money than some of the big companies in the space. And, you know, we try to be, you know, I mean, you know, very, very responsible when it comes to, you know, acquiring customers at a reasonable price. And that's both, you know, on the retail side as well as on the direct-to-consumer side. Like, you know, we're not going to, you know, go into a store and lose money and we're not going to go, you know, after, you know, quadrants of customers that we're going to lose money. So, you know, we're very disciplined about that. But by the same token, we don't look to make the last dollar off of every transaction. We look to make sure that we have a very, very strong base of customers that comes back to us multiple times a month. and recommends their friends. And that's been a big part of our success. And we're always tweaking things on the edge. This past quarter, we started marketing our neobank service to our customers, which we think is a big plus. We give them a $2 discount if they pay using our neobank. And, you know, we're focused on making sure that, you know, we provide good value, good customer service. And, you know, I think you can see from, you know, even just the ratings online that we're doing a good job on that.

Got it. Thanks, Shmuel. I appreciate it. That's all for me. Thank you.

The next question comes from Adam Wilk. Please announce your affiliation, then pose your question.

Hey guys, can you hear me very well? Great. Um, yeah, this is Adam with Greystone capital. Thanks for taking my questions and a great job on the quarter. Really impressive. Once again, um, the bulk of my questions were asked and answered, which is great. Um, so maybe just two quick ones. Um, as you think about the advertising opportunity for NRS, um, it sounds like there's, you know, you're talking about a little bit of economic softness or cyclicality there, which I guess is to be expected. Is there anything you can, or any color you can add on what to expect for the rest of the year? I know you don't give guidance, but just curious if maybe the out of home trends are different than, um, you know, maybe some, uh, some, uh, different areas of the advertising market or kind of what you're seeing, anything you're seeing there would be helpful.

I'm sure that the trends are different in out-of-home versus other forms of advertising. But no, I mean, again, as Marcel indicated, we definitely are feeling headwinds. We've done a good job, as I said, on direct sales, on marketing. on data sales, et cetera, and really, you know, making sure that our advertisers see the value, you know, from our, from advertising with us. But, you know, again, I think that, you know, that Personally, I think inflation will be brought under control in the next six months or so. And I think that when that happens, you'll start to see more budget free up to increase business. But that's my personal opinion. Don't take it to the bank. Everyone has their own ideas of what's going to happen.

Yeah, I don't have much more to add. I mean, usually, as you know, the month of January is the weakest month for advertising for us. It was the same this past January. It was not a strong month. It appeals to me that advertising budgets either being held or trimmed right now or companies haven't decided yet how much capital to allocate towards the advertising budget, but we are seeing clearly a soft start to the new calendar year in terms of advertising, and I think it's across the board.

Okay. Yeah, that's helpful and makes sense. I appreciate it. And then last one for me, the quarters prior to this one I thought reflected a really nice pace of share repurchase activity. And I'm just wondering what your current stance is on buybacks moving forward and how you're thinking about that as a use of cash situation.

I don't know. I mean, again, we're opportunistic, and we don't have any plans one way or the other as of yet. So no change in stance, just no buybacks this past quarter.

Okay. I might just push back on that – or not push back, but just add to that question a bit just by asking, was there something you saw the last two quarters that kind of spurred you to action?

No. I mean, again, like I think, you know, the business did well. As you saw, we threw off, you know, $20 million plus or minus this past quarter. You know, we just – you know, did not decide to invest it in buying back stock this quarter.

Sure, I understand. Well, the buybacks, you know, at this price remain incredibly accretive. So that's my two cents anyway. But I appreciate you taking my questions and congrats on a great quarter. Thanks. Thank you.

The next question comes from Alexander Rohr. Please announce your affiliation, then pose your questions.

Hi, guys. Congrats on the numbers. So this is the third consecutive quarter with NRS advertising at kind of a dramatically higher level. So it's been, for three straight quarters, roughly a 2x increase in ad revenue per terminal, roughly. I think there's some skepticism out there that these are kind of one-time gains or you guys might revert back to the per-terminal levels you were seeing a year ago when the total business was doing $4 million-ish per quarter in ad revenue. So maybe just speak to... the sustainability of the new run rate in ad revenue?

Again, we are definitely facing some headwinds in advertising. There's no question about it. I do think that, again, we're doing better in March than we were in January by a large amount. But again, there definitely is headwinds in advertising. There's no question about it. That being said, we think that we're going to do well in it.

Obviously, we don't control the macro environment from a micro perspective. I think we're very well positioned, right? I mean, we are competing in the DOOH segment of advertising, which continues to grow and will be one of the fastest growing segments in advertising growth. And we participate in that segment. And as I mentioned earlier, I think that our digital screens in that segment a very, very attractive way for advertisers who want to place ads digitally to choose a solution. So we are trying to continue to grow the number of programmatic relationships that we do business with. And I think that we, to a large extent, will always from now on be a function more of the macro situation. But as long as the timing dollars are out there, I think we'll be capturing more and more of a share of it as time goes by and that our network continues to increase.

Got it. And then... Last quarter, the NRS store base on a same-store sales basis really outperformed the peer set. I'm just eyeballing the statistics and the NRS insights released from February, and it looks like for the whole quarter, you know, on a cumulative basis, the NRS stores were doing about four percentage points better year on year than convenience stores in general nationally. So what do you attribute that to, and do you expect that to be a sustainable trend?

I don't really know the answer. That's the truth. I mean, you know, I think that, you know, that the main thing that I attribute to is, you know, independent business people are really, you know, the drivers of the economy. And, you know, they're innovative. And, you know, when inflation is high, you know, they put, you know, things on sale in the front of their store that, you know, that make things, you know, not seem like they're, you know, out of reach for consumers. And, you know, they talk to their consumers and they, you know, tell them, you know, what's a good deal. And I think that it's really that, you know, that independent, you know, businessman, you know, mentality, you know, that's keeping them strong. I really don't have any other explanation. It's not because, you know, they have, you know, better access to, you know, products or financing or, you know, rental rates or, you know, et cetera, et cetera. You know, they, um, you know, they, they have a lot of, uh, of, uh, you know, challenges in my opinion, still that, you know, we're trying to help them overcome. Um, but, uh, yeah, they, they definitely are resilient.

Got it. And last question for me, um, any update on the, well, you talked about this last quarter, the, the group purchasing, uh, effort to try and help some of your NRS customers get scale with distributors? How's the early progress there?

Unfortunately, this is not a great quarter for that. We don't lose many good people, but we lost the head of that division this past quarter to a different startup. So that was a little bit of a setback. But, you know, we have, you know, high hopes for it going forward.

Great. Thanks very much.

The next question comes from Sean Berger. Please announce your affiliation, then pose your question.

Hi. This is Sean Berger from Adirondack Retirement Specialists, and I want to first congratulations on a very good quarter. And first, also, if anybody ever wants to contact me on why Boss Money is the best as a consumer, I can give you a lot about it because I use it all the time. One of the things that when I've used Boss Money is they gave me a little discount for downloading mobile wallet, and I was really impressed with the mobile wallet. I was just wondering anything with that in the future as far as potential? I don't know if that's a potential revenue source or just more glue.

I believe you're referring to our neobanking solution.

Because on my phone, the app, so maybe that is... It's called Wallet by Boss. Yeah, Wallet by Boss. So I call it Mobile Wallet. All right, so that's the neobanking. That is our neobanking. Okay, all right.

So that's what I was referring to earlier, that you get $2 when you use it to pay for a money transfer. So yeah, I mean, it's more than glue. I mean, glue is definitely part of it, but we make money on it the same way that lots of neobanks do, which is the more money in balances you have, the more money we're making in interest, and the more money you spend on your card, the more money we're making on interchange. And like all of our products, we're giving customers great value. There's no fees in having a card with us. You get paid early if you have direct deposit. You get the discounts when you use it for Buff money. You get some really cool information on how you're spending money and things that will help you budget more appropriately. And, you know, we think that we're, you know, we think that we're giving consumers a really great product and, again, at a great value. And, you know, we hope that it becomes, you know, a much bigger part of our business.

And as I said, you know... I was also very impressed with the technology. Like, it linked up my photo with my wallet or with my driver's license and, boom, like, merged the two. So, like, it identified me well. And I think it's very good for the unbanked, like, people that are unbanked, like Latin American people that... you know, are here and would, you know, need to be banked. I think that there's a very underserved community, so I think that's great. One other, the only other question I had was also with regard to, I know that you can't comment much on the lawsuit, but I did know about the judge sustained an injury. I'm just wondering if there's any expected delays or if you've been informed in any delays as a result of that with the straight path litigation or if that just seems to be progressing along, you know, that was it.

Well, I mean, first off, I hope he has a full recovery. You know, from afar, he looks like a very, very nice man, and we wish him the best. And yes, I mean, there is probably going to be, you know, a slight delay. We don't know exactly by how much, you know, but we were informed by the court, you know, of a delay.

Okay.

Okay, thank you. I mean, just to clarify, okay, at this point, I think that the post-trial oral arguments are scheduled to sometime in May, tentatively. The judge's condition may affect that, but that's all we know at this point.

Okay.

I thank you the next question comes from an eagle Alonzo please announce your affiliation then pose your question hello can you guys hear me yet yeah the first question is about NRS you had the announcement of the Canadian market recently and if I'm not mistaken this was announced already about a year ago that you were selling in Canada so I'm wondering is it that Canada is a bigger part of your strategy right now, or what's behind it? And have you already tapped into all the U.S. markets? So the bus retail network that you have, I had it estimated at 35,000. So is that market close to being tapped into, or what's the reason behind the announcement? Thank you.

No, I mean, first of all, I mean, definitely not. I mean, we're selling, you know, more stores you know, today than we've ever sold before. So the market is not tapped at all in the U.S. You know, listen, we think we have a great product. You know, as I said, we, you know, give great values, you know, to our retailers, you know, and again, I don't want to take any credit for, you know, for the fact that their numbers are better than convenience stores are doing overall. But it's sure not hurting them. And we want to bring that same technology to Canada. And it's the easiest market for us to go into. All of our merchant processing solutions, et cetera, work there. We already have a distribution channel there. And it was a natural next step for NRS. But no, it has nothing to do with us believing that you know, that we are in any way saturated in the U.S. market.

Okay. And then regarding Net2Phone, you postponed the spinoff a couple of quarters ago, so I'd like to hear where you are at with the potential spinoff in the future. And also, we have seen your unprofitable peers suffer a lot, so I was wondering if you are looking to acquire any technology expand in a geography or new clients through the acquisition of any competition of natural phone?

I mean, listen, you know, we're always, you know, looking for, you know, good acquisitions, you know, that we can, you know, help you more successful than they were on their own. That being said, we're not looking at anything actively right now for net to phone, but that doesn't mean that we will not in the future. As far as our plans on the spinoff for Netaphone, again, we definitely do not believe that current market conditions are appropriate for a spinoff. That being said, we have our heads down, as you can see, and we're making sure that we're not only a very good growth company, but a profitable company and one that doesn't need to rely on you know, markets to support it, but, you know, we'll rely on its actual, you know, cash flow to continue to support and grow its business.

Got it. And lastly, on Boss Money Transfer, so I would like to hear about the vision of the company. You compete in a very... There's a lot of competitors in your industry, and I'd like to know why you're going to succeed in this competitive environment, and what's the endpoint? When are we going to see consistent and positive EBITDA for boss money transfer?

Well, I mean, listen. We definitely have some very strong competitors in the money transfer business. It's a business that's been around for many, many years. And again, as I said, I don't think that we do anything unique. What we do is we focus on giving customers good value, and that's in every way, from the experience that they have using us to the systems that we have in place to make sure that none of their information is compromised, that the transactions are safe. you know, et cetera, et cetera. You know, we give really good value to our customers, and that's why they come back to us, as I said, you know, usually multiple times a month. And, you know, at the store level, you know, we're really focused on making sure that we're not only, you know, an online competitor. You know, the money transfer business is still, you know, probably – you know, 80% of retail business, definitely, you know, moving more and more online every day. But, you know, we have a strong base of retailers, as you pointed out in a different question. And we want, you know, our retailers to take advantage of using Boss money rather than, you know, other competitors of ours who, again, you know, some of them are very good. I'm not trying to say that we don't have good competitors. We have good competitors, but we think, you know, we give great value to consumers and to our retailers.

Okay, thank you, and congrats again on the results. Thank you.

Again, if you have a question, please press star, then 1. As there are no more questions, this concludes our question and answer session and conference call. Thank you for attending today's presentation. You may now disconnect.