IDT Corporation

Good evening and welcome to the IDT Corporation's fourth quarter and full fiscal year 2024 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 31, 2024. During prepared 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 Mr. Jonas' remarks, Marcelo Fisher, IDT's Chief Financial Officer, will join Mr. Jonas for Q&A with investors. 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 per share. A schedule provided in IDT earnings release reconciles adjusted EBITDA, 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 Form 8K with the SEC. I will now turn the conference over to Mr. Jonas.

Thank you, Operator. Welcome to IDT's earnings conference call. My remarks today focus on the fourth quarter and full fiscal year 2024. The three and 12 months ended July 31st. For more detailed discussion of our financial and operational results for the quarter, please read our earnings release filed earlier today and our Form 10-K that we expect to file with the SEC next Tuesday. IDT delivered a strong fourth quarter highlighted by record-just EBITDA to cap off our 2020-4 fiscal year. NRS, Boss Money, and NetPhone all performed well, while our traditional communications segment businesses delivered solid cash flow. At NRS, we continue to make good progress in our strategic priorities, expanding our customer base in the large independent retailer market, increasing the penetration of NRS pay, developing point-of-sale solutions for new verticals, and building out our advertising tech, all while deploying hundreds of new locations every month. At Boss Money, we again achieved year-over-year transaction volume and revenue growth. of over 40% during the fourth quarter. Boss Money's economics continue to improve as the business scales, which enabled our fintech segment to achieve its first quarter of positive cash flow generation. NetFone is steadily building its customer base, again adding approximately 12,000 net new seats, including 2,000 CCAS seats in the fourth quarter, while also doing a good job of controlling its costs. As a result, NetFone's adjusted EBITDA margin more than doubled compared to the year-ago quarter, We are focused on further improving NetPhone's bottom line through continued volume growth and increasing revenue per user, driven by expansion of our higher revenue, higher margin CCaaS offering, and by migrating customers to premium plans and features, including plans with new AI-powered functionalities. In our traditional communications segment, we significantly improved the economics of our business and began to see the expected payoff from cost reduction initiatives we implemented throughout fiscal year 2024. In fiscal 2025, we will continue to pursue opportunities to improve the performance of our businesses and lower costs while maximizing cash flows and reinvesting in customer acquisition. IDT enters fiscal 2025 with strong momentum. NRS, Boss Money, and NetFone are all profitable, and each has a long growth runway. In the year ahead, we will drive their continued expansion and invest in new exciting growth initiatives that leverage our strategic assets and expertise. We remain committed to maximizing the cash generation from each of our segments, building dynamic businesses for long-term value creation, and returning value to our stockholders through our investments in new initiatives, share buybacks, and dividends. Lastly, I would like to thank everyone at IDT who has really worked very, very hard to deliver the numbers that we deliver to you today. Oftentimes, it just looks like numbers on a paper, but it's really a lot of work. Now, Marcel 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 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. We will now pause momentarily to assemble our roster. Okay, our first question comes from Anigo Alonso with Morum Capital. Please proceed.