Idt Corporation · NYSE:IDT
Idt — LD Micro Main Event XV Investor Conference (October 2022)
32 slides from Idt's conference presentation, Oct 25, 2022
Slide 1: LD Micro Main Event XV Investor Conference
Investor Presentation LD Micro Main Event XV Investor Conference October 2022
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: Business Line-Up
| Business Line-Up al Fintech and Cloud Communications Growth Businesses ©@>, NATIONAL _ [Ntegrated cloud software and oe) RIETAIL POS solutions tailored for net2phone Cloud communications eo/ SOLUTIONS retailers taking on the big fenBusiness retail chains & International remittances I DT: IGITAL Mo
Slide 4: National Retail Solutions
manhattan mini storage CLIENTES! WE SAVE OUR ‘CUSTOMERS, ‘MONEY!
Slide 5: The Opportunity and Product
; aN The Opportunity and Product oS) Thoughtfully Designed for Independent Retailers Underserved Market POS solution purpose-built to address B N RSINSIG HTS > needs of 00K independent retailers e C-Stores e Quick service restaurants e Bodegas and delis ee, ans e Liquid Stores e Hardware stores oS}
Slide 6: Revenue Drivers
Revenue Drivers Multiple, High-Growth, High-Margin Recurring Revenues Generating revenue at a $70+ million annual run rate! Advertising & Data 58% of Revenue e Advertisers purchase static and video ad impressions on customer-facing screens. e Data analytic companies, CPGs and distributors purchase t
Slide 7: Robust Platform and Top Line Growth
oe Robust Platform and Top Line Growth ie +38% 8 +77% +87% to 19,400 to 10,300 to $316 Active POS Terminals2 Payment Processing Accounts? Monthly Average Recurring Revenue Per Terminal? $17.7 Recurring Revenue® Long Runway Opportunities alla L than 10% POS TAM trati e ess an enetration 9, ‘ ° 7 — oO
Slide 8: net2phone
net phone 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 9: Vast Market Opportunity
| Vast Market Opportunity net2phone A Growth and Innovation Leader Pursuing an Exceptional Market Opportunity Frost Radar™ “Frost & Sullivan regards ' net2phone as one ofthe’ x 7 fastest-growing UCaaS 2 | ! providers inthe (LATAM) 2 \ one ) region, holdingatop8 & \ billion J position in terms of > |
Slide 10: Product Offering and Go-To-Market Strategy
| Product Offering and Go-To-Market Strategy net2phone Differentiated Leader in the ‘Sweet Spot’ of Communications as a Service : Focus on Mid-Enterprise Messaging Markets Voice ea) Unique Footprint in 8s Global Markets Contact Center Channel Partners Drive uu Mobile App Analytics Integrations Custo
Slide 11: Exceptional Growth & Margins
| Exceptional Growth & Margins 84.3 net2phone Growing Faster than Industry Average Subscription 37 7, Revenue © Growth® Gross % Margin $16.0 Million: $15.0 $14.0 $13.0 $12.0 $11.0 $10.0 Subscription Revenue & Seats® 421 1Q22 2Q22 3Q22 Wm Subscription revenue 9 =—=Seats Quarters of fiscal years ended
Slide 12: Driving To Profitability
| Driving To Profitability net2phone Nearing Profitability as Business Scales Adjusted EBITDA® ‘ (in millions) Reduction in : Quarters of fiscal years ended July 31st 8 6 ss} nega ise | 4q21 1Q22 2022 fe) Adjusted i 3Q22 4Q22 EBITDA ; LE] 1 ($0.4) . _ 7 1 ($0.9) Poised to reach positive Adjusted EBI
Slide 13: Slide 13
Slide 14: Robust Platform Driving Durable Growth
| Driving To Profitability Robust Platform Driving Durable Growth Building Out a Strategically Focused Platform e Focus on LATAM and Africa payout networks e Payout in 315,000 locations via 1,500 payers in 50+ countries + direct bank deposits + mobile wallets e Omni channel including both digital (A
Slide 15: Robust Digital Platform Expansion
Robust Digital Platform Expansion Superior User Digital Experience « BOSS Money app receives superlative reviews e User-rated 4.8 out of 5 stars in App Store e Over 80% of customers are repeat users Efficient Online & Offline Customer Acquisition « Successful cross-selling to existing BOSS customers
Slide 16: Rapid Growth Powered by Digital Expansion
Rapid Growth Powered by Digital Expansion Growth Drivers ° Cross-marketing within BOSS ecosystem Popularity of BOSS Money app Money transfer added to BOSS Calling app Refined pricing models and capabilities Enhanced user and retailer experiences Planned Initiatives - FY23 & Beyond Launch origination
Slide 17: IDT Digital Ventures
IDT PISITAR Our customers rely on us to purchase and send digitized offerings to friends and family globally. Whether the value is embedded in mobile top-up airtime and data bundles, or digitized gifting, we strive to make the transfer process affordable, frictionless and enjoyable.
Slide 18: Mobile Top-Up - Growth Fueled by Demand for Data
| Mobile Top-Up - Growth Fueled by Demand for Data IDT DIGITAL Growth Drivers > Data-centric bundles Global demand for Internet access driving demand for data-centric packages Regional Momentum Investing in high growth corridors: Africa and the Caribbean Geographic Expansion Opportunities Canada, UK
Slide 19: eGifts
eGifts Regional Brands Open API Retail Networks eGifts Global Brands Global Value Hub Boss Revolution Stores "Boss Revolution Apps IDT Ecosystem Airtime & Data A Global Portfolio of Lifestyle Value Added Services, all delivered in real-time via our secure platform, direct to the recipient’s phone. I
Slide 20: Legacy Communications Businesses
Boss IDT global Legacy Communications Businesses Our BOSS Calling and IDT Global carrier services both participate in the international paid-minute voice communications market generating robust cash-flows
Slide 21: Offerings in the Paid-Minute Communications Market
| Offerings in the Paid-Minute Communications Market A Market Leader in International Long Distance Calling Services @ BOSS REVOLUTION International calling serving ~3MM customers $388 MM FY 2022 Revenue’ IDT global Voice & SMS Services Terminates & manages international voice traffic and SMS throug
Slide 22: IDT Consolidated
IDT IDT Consolidated
Slide 23: Financial Strength
| Financial Strength Increasing Profitability Powered by Growth Businesses - Solid Balance Sheet - Returning Value to Stockholders $138 million in cash + current ances aiaeiee ated EBIEDA? investments ($5.40 / share)!° roel 31.5% = b $0 debt" | B-yearCAGR 4404 a 8 Repurchased $13.4 million of IDT co
Slide 24: From $54 million to $3.5 billion
2009 ' = Dividends — _ Market caps a . -— paid by IDT ." 5 SpinCos" po : : IDT and SpinCos | IDT + ; $54 MM $645 us : ‘9278 $210 MN Market cap at first spin-off From $54 million to $3.5 BILLION IDT BRN
Slide 25: Thank You
Thank You
Slide 26: Footnotes
Footnotes (1) (2) (3) (4) (5) (6) Revenue for 4QFY2022, the three months ended July 31, 2022, annualized (x4). Revenue percentages are based on 4QFY2022 recurring revenues. Revenue percentage increases are 4QFY2022 (the three months ended July 31, 2022) compared to 4QFY2021. Active POS Terminals and
Slide 27: Footnotes, continued
Footnotes, continued (8) net2phone seats are seats served at July 31,2022 compared to seats served at July 31, 2021. 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
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation
Slide 29: Non-GAAP Reconciliation
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 comparable
Slide 30: Non-GAAP Reconciliation, continued
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 foreign entit
Slide 31: Reconciling Loss from Operations to Adjusted EBITDA for net2phone
FINANCIALS - Non-GAAP Reconciliation - Slide 12 Reconciling Loss from Operations to Adjusted EBITDA for net2phone (USD in thousands) 4Q21 1Q22 2Q22 3Q22 4022 Loss from operations (3,958) (4,193) (2,866) (2,256) (1,817) Depreciation and amortization 1,367 1,328 1,260 1,343 1,443 Other operating (gain
Slide 32: Reconciling Net Income to Adjusted EBITDA for IDT Consolidated
FINANCIALS - Non-GAAP Reconciliation - Slide 23 Reconciling Net Income to Adjusted EBITDA for IDT Consolidated (USD in thousands) FY 2019 FY2020 FY2021 FY 2022 Net income attributable to IDT Corporation 134 21,430 96,475 27,028 Adjustments: Net income (loss) attributable to noncontrolling interests
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