Idt Corporation · NYSE:IDT
Idt — Sidoti Small Cap Virtual Conference March 2023
33 slides from Idt's conference presentation, Mar 22, 2023
Slide 1: IDT Investor Presentation
Investor IDT Presentation NYSE: IDT Sidoti Small Cap Virtual Conference March 2023
Slide 2: Forward-Looking Statements
All statements in this presentation that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate, “target” and similar expressions, are forward-looking statements within the meaning of the Pr
Slide 3: Increasing profitability & strong balance sheet
WH IDT | Increasing profitability & strong balance sheet Positioned to Outperform in Volatile Interest Rate Environment Consolidated Adjusted EBITDA’ {in millions) $389.8 $74.5 $79.1 Le) $157 million in cash + current +39 % > investments ($6.14 / share)? ” eke 9 $0 debt? $30.8 > Net cash provided by
Slide 4: Businesses built around common strategic assets
WH IDT | Businesses built around common strategic assets High-Growth, High-Margin Business Segments E@Z NATIONAL __ Integrated POS-based solutions GAR) RETAIL tailored for independent retailers SOLUTIONS net2phone Clouel communications & BOSS riemational remittances MONEY. and neobanking Cash Genera
Slide 5: High Growth, High Margin Businesses
High Growth High Margin Businesses
Slide 6: National Retail Solutions (NRS)
we National Retail Solutions (NRS) Our integrated cloud software and POS-based solutions enable independent retailers to operate more profitably while offering consumer packaged goods marketers unprecedented reach and insight into urban markets mmitettape
Slide 7: NRS | Unique POS-based solutions for an underserved market
> NRS | Unique POS-based solutions for an underserved market TAM: 200K+ independent retailers in the U.S ’&NRSKINSIGHTS Key functionalities enhance NRS MEDIA retailer ‘stickiness’ ZN NRS solution typically replaces Say i NB Cabs ‘dumb’ terminal or cash box i. IDT
Slide 8: NRS | Multiple high-margin recurring revenue streams
_| oa NRS | Multiple high-margin recurring revenue streams x Recurring Revenue at $73+ Million Annual Run Rate?® Advertising & Data Merchant Services 49% of Revenue 41% of Revenue > Advertisers purchase static and Retailers utilize NRS PAY, an video ad impressions on integrated payment customer-faci
Slide 9: NRS | Robust platform and top line growth
| cue NRS | Robust platform and top line growth Active POS Terminals® (in thousands) +55% to 22,400 Recurring Revenue’ (in millions) +103% to $18.3 million 20.8 19.4 79 2Q22 3922 4922 1925 2923 Quarters of fiscal years ended July 3ist g77 siz 8S $10.0 2022 3022 4q22 1023 2925 Quarters of fiscal year
Slide 10: NRS | Adjusted EBITDA expansion with large opportunities ahead
| cue NRS | Adjusted EBITDA expansion with large opportunities ahead Adjusted EBITDA! Scalable Business Model (in millions) > $71 ° ve 2Q22 3Q22 4Q22 1923 2923 Quarters of fiscal years ended July 3ist Expansion driven by high growth, high margin offerings Adjusted EBITDA margin expanded from 24% in
Slide 11: net2phone
net2phone Our cloud-based, unified communications and contact center solutions help businesses around the globe succeed by interacting with their consumers with enhanced intelligence and insights
Slide 12: net2phone | Vast market opportunity
HM net2phone | vast market opportunity AGrowth Leader Pursuing Exceptional Market Opportunities Frost & Sullivan regards net2phone as one of the fastest-growing UCaaS providers in the (LATAM) region, holding atop 8 position in terms of market share. '° $70 billion $15 billion Unified Communications
Slide 13: net2phone | Differentiated product & go-to-market strategy
| net2phone | Differentiated product & go-to-market strategy Differentiated Leader in the ‘Sweet Spot’ of Communications as a Service (Ei User Portals Video & Mobile App Focus on a . Mid-Enterprise Markets Cy Voice w& Messaging ogh Analytics Web Calling rai Contact Center @ Integrations Differentiat
Slide 14: net2phone | Exceptional growth & margins
M@ net2phone | exceptional growth & margins Growth Rates Above Industry Averages Subscription Revenue" & Seats'® Subscription Revenue $11.0 2022 3022 4022 1923 2023 mm Subscription revenue ——Seats Quarters of fiscal years ended July 31st 275 225 IDT 4
Slide 15: net2phone | Focus on profitable growth
| net2phone | Focus on profitable growth Adjusted EBITDA! (in millions) $0.9) 2Q22 3Q22 4Q22 1Q23 2Q23 . Quarters of fiscal years ended July 31st > Achieved two consecutive quarters of positive Adjusted EBITDA. > Nearing cash-flow profitability inclusive of approximately $21MMrun rate annual spend f
Slide 16: International remittance services (BOSS Money)
Our international remittance services enable customers in the U.S. to send money to friends and family in over 50 countries.
Slide 17: BOSS Money | Robust platform driving durable expansion
Wi & BOSS | Robust platform driving durable expansion MONEY. Money Transfer Transactions {in millions) To 9.4 +48% 5-year CAGR 2017-2022 ail Oo 2017 2018 2019 2020 2021 2022 TIM Fiscal years ended July 3ist Building Out a Strategically Focused Platform * Focus on LATAM and Africa payout networks * P
Slide 18: BOSS Money | Digital experience and customer acquisition
MB @ Fas Superior User Digital Experience >: Efficient Online & Offline Customer BOSS Money app receives superlative reviews User-rated 4.8 out of 5 stars in App Store Over 80% of customers are repeat users Acquisition Successful cross-selling to existing BOSS customers Sophistic: Trust in IDT/BOSS
Slide 19: BOSS Money | Robust revenue growth and opportunities
MI & BOSS | Robust revenue growth and opportunities MONEY. Growth Drivers Cross-marketing within BOSS ecosystem Popularity of BOSS Money app Money transfer added to BOSS Calling app Planned Initiatives - FY23 & Beyond Launched origination from Canada New corridors to African and Caribbean Corporate
Slide 20: Traditional Communications Segment
Traditional Communications Segment
Slide 21: Traditional Communications | Strong cash generation
—_ yn IDT PISITAL Cross-border value transfer through mobile-top-up and other digital prepaid offerings $444 MM TTM Revenue’ itional Communications | Strong cash generation —_ @ BOSS REVOLUTION’ International calling serving ~3MM customers $351 MM TTM Revenue" —y> IDT Voice & SMS Services Terminates
Slide 22: IDT Consolidated
IDT IDT Consolidated
Slide 23: High growth businesses driving financial improvement
WB DT | High growth businesses driving financial improvement Revenue Consolidated Adjusted EBITDA! 2Q23 / 2Q22 by reporting segment ges i _ a mz a S 3 2019 2020 2021 2022 1™ High Growth Business Segments Traditional Communications Segment + Corporate Overhead Fiscal years ended July 31st int iy
Slide 24: Thank You
Thank You invest@idt.net
Slide 25: Footnotes
Footnotes a) (6) (7) (8) Throughout this presentation, Adjusted EBITDA is a Non-GAAP measure intended to provide useful information that supplements IDT's or the relevant segment's results in accordance with GAAP. Please refer to the Non-GAAP Reconciliation at the end of this presentation for an exp
Slide 26: Footnotes, continued
Footnotes, continued (9) i) (12) (13) (15) (16) Monthly Average Recurring Revenue per Terminal is a financial metric aggregating the revenue of NRS Advertising & Data, Merchant Services and SaaS Fees divided by the average number of active terminals operating during 2QFY23, (the three months ended J
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation
Slide 28: Non-GAAP Reconciliation
BH IDT | Non-GAAP Reconciliation IDT's Adjusted EBITDA is a non-GAAP measure, Generally, a non-GAAP measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly co
Slide 29: Non-GAAP Reconciliation, continued
BM IDT | Non-GAAP Reconciliation, continued ‘Other operating (expense) gain, net, which is a component of income (loss) from operations, is excluded from the calculation of Adjusted EBITDA. Other operating (expense) gain, net includes accruals for non-income related taxes related to one of IDT’s for
Slide 30: Reconciling Net Income to Adjusted EBITDA for IDT Consolidated
BM DT | FINANCIALS : Non-GAAP Reconciliation - Slide 3 Reconciling Net Income to Adjusted EBITDA for IDT Consolidated (USD in thousands) 0223 Fy2019 FY2020 FY2021 FY2022 TIM Net income attributable to IDT Corporation 134 21,430 96,475 27,028 + 47,638 Adjustments: Net income (loss) attributable to no
Slide 31: Reconciling Income from Operations to Adjusted EBITDA for NRS
WM DT | FINANCIALS : Non-GAAP Reconciliation - Slide 10 Reconciling Income from Operations to Adjusted EBITDA for NRS (USD in thousands) 2022 3022, 4Q22_— 1023-2023 Income from operations 2,058 1,078 6725 5,231 5,374 Depreciation and amortization 183 207 355, 478 594 Adjusted EBITDA 2,241 1,285 7,08
Slide 32: Reconciling Loss from Operations to Adjusted EBITDA for net2phone
WW DT | FINANCIALS : Non-GAAP Reconciliation - Slide 15 Reconciling Loss from Operations to Adjusted EBITDA for net2phone (USD in thousands) 2022 3022, 402210232023 Loss from operations (2,866) (2,256) (1,817) (1,056) (575) Depreciation and amortization 1,260 1343 «1,443 1,3521,390 Other operating (
Slide 33: Reconciling Income from Operations to Adjusted EBITDA for Reporting Segments
WH DT | FINANCIALS : Non-GAAP Reconciliation - Slide 23 Reconciling (Loss) Income from Operations to Adjusted EBITDA for Reporting Segments (USD in thousands) Q2.23 FY2019 FY 2020 FY 2021 FY2022 TIM Growth (Loss) income from operations (27,272) (13,683) (17,660) (6811) 10,388 Depreciation and amorti