Idt Corporation · NYSE:IDT
Idt — Investor Presentation (June 2023)
37 slides from Idt's investor presentation, Jun 20, 2023
Slide 1: Investor Presentation
Investor IDT Presentation NYSE: IDT June 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: Businesses built around common strategic assets
) IDT | Businesses built around common strategic assets High-Growth, High-Margin Business Segments Cr NATIONAL —_POS-based solutions tailored for AE} RETAIL independent retailers & marketers @ LT) sotutions ° lof net: Cloud communications for business & BOSS International remittances MONEY. and neob
Slide 4: High-Growth, High-Margin Businesses
High-Growth High-Margin Businesses
Slide 5: National Retail Solutions (NRS)
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
Slide 6: NRS: One platform, multiple recurring revenue streams
ez 7 or) NRS | One platform > Multiple recurring revenue streams $70+ Million in Annual, Recurring, High Margin Revenue! Merchant Services Advertising & Data 40% of Revenue 50% of Revenue > Retailers subscribe to NRS Pay, an > Advertisers purchase static and integrated payment processing video ad im
Slide 7: NRS: Recurring Revenue & EBITDA expansion
EN | ome) NRS | Recurring Revenue & EBITDA expansion Recurring Revenue” @ Adjusted EBITDA® eo (in millions) (in mitiions) +113, = @ © ¥ 2019 2020 2021 2022 1™ 2019 2020 2021 2022 1™ Fiscal years ended July 3ist Increasing profitability fueled by growth of exceptionally high margin offerings. > Incom
Slide 8: The Leading POS for Independent Convenience Stores and Bodegas
The Leading POS for Independent Convenience Stores and Bodegas POS network - 23,900 active terminals at ~21,000 independent retail stores® Added +6,000 net new terminals TTM ~11% penetration of core TAM > C-stores and bodegas > 2 Liquor stores > Tobacco shops Developing new market opportunities > Di
Slide 9: NRS: Merchant Services - Robust, Long-Term Growth
C- | cue NRS | Merchant Services - Robust, Long-Term Growth NRS Pay - Payment Processing Revenue and Accounts® (in millions) Merchant Services revenue is soo B94, 453% 16000 generated predominantly by NRS 20 Revenue Accounts 14000 Pay, the NRS payment processing $80 3023/3022 12000 solution $7.0 $6.
Slide 10: NRS: Advertising & Data - Platform with massive growth potential
C- | cue NRS | Advertising & Data - Platform with massive growth potential Advertising & Data Revenue (in millions) NRS Digital Media - The nation’s largest place-based digital advertising network for c-stores and other small format +123% 4-year CAGR independent retailers > Ads are served on the NRS
Slide 11: NRS: SaaS Fee Revenue Growth Powered by Network Expansion
& os) NRS | SaaS Fee Revenue Growth Powered by Network Expansion SaaS Revenue (in millions) ply]oy, 3023/3022 3Q22 4Q22 1923 2Q23 3Q23 Quarters of fiscal years ended July 3ist Retailers pay monthly recurring charges (MRCs) for the services provided by the POS. SaaS MRCs range from $19.95 to $69.95 p
Slide 12: 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 13: net2phone: vast market opportunity
Mi net2phone | vast market opportunity AGrowth Leader Pursuing Exceptional Market Opportunities Unified Communications as $70 a Service (UCaaS) Frost & Sullivan regards a Global market opportunity by 2028 C C net2phone as aleader in billion with CAGR of 13.4%? both innovation and growth.® Contact Ce
Slide 14: net2phone: All-encompassing product & unmatched go-to-market strategy
| net2phone | Anall encompassing product & unmatched go-to-market strategy Leading the ‘Sweet Spot’ of Communications as a Service & Mobile App. Focus on i, 6 7 Mid-Enterprise Clients oat Analytics g Integrations Distinctive Footprint in Several Global Markets Channel Partners Drive Customer Acqu ID
Slide 15: net2phone: Exceptional seat and revenue growth with a CCaaS lift
| net2phone | Exceptional seat and revenue growth with a CCaas lift +22 Subscription Revenue" Total seats fe} 12 % seved CaaS seats served! in millions $18.0 $16.0 $14.0 $12.0 $10.0 Subscription Revenue & Seats 3Q22 4Q22 1923 2Q23 Quarters of fiscal years ended July 3ist [EME Subscription revenue [l
Slide 16: net2phone: Transition to profitable growth
| net2phone | Transition to profitable growth > Achieved three consecutive quarters of positive Adjusted EBITDA. Adjusted EBITDA (in millions) > Nearing cash-flow profitability inclusive of CAPEX and approximately $20MM annual 3Q22 4Q22 1Q23 2Q23 3Q23 spend for customer acquisitions Quartets of fisc
Slide 17: net2phone: Multi-pronged strategy for profitable growth
| net2phone | Multi-pronged strategy for profitable growth Robust Geo and Channel Expansion New LATAM markets > Telephony agnostic solutions Deepening penetration in primary markets: we > Fully localized support and sales in local currency > Expanding sales presence to more cities Growing the channe
Slide 18: net2phone: Multi-pronged strategy, continued
| net2phone | Multi-pronged strategy for profitable growth, cont. Compelling New Offerings and Features New Premium Add-On Solutions > > i. 2 net2phone Als Using the power of Al to monitor and analyze agent interactions, provide coaching, and drive greater performance Call Center Essentials» CCaaS t
Slide 19: International remittance services
Our international remittance services enable customers in the U.S., and more recently in Canada and certain African countries, to send money to friends and family in 46 destination countries
Slide 20: BOSS Money: Robust platform driving durable expansion
Wi & BOSS | Robust platform driving durable expansion MONEY. Money Transfer Transactions (in millions) Building Out a Strategically + hy hy % Focused Platform ¢ Focus on LATAM and Africa 6-year CAGR @ corridors @ * Global payout network now 287,000 locations via 427 payers ss J in 46 countries + dir
Slide 21: BOSS Money: A powerful digital platform
| & BOSS | A powerful digital platform MONEY. Superior User Digital Experience > BOSS Money app receives superlative reviews > User-rated 4.8 out of 5 stars in App Store > Over 80% of customers are repeat users Send money (| toGHANA. for Refera $0 FEE! Efficient Online & Offline Customer Friend aan
Slide 22: BOSS Money: Robust revenue growth and opportunities
MI & BOSS | Robust revenue growth and opportunities MONEY. Growth Drivers BOSS Money Revenue {in millions) > Cross-marketing within BOSS ecosystem > — Refined pricing models and capabilities > Enhanced user and retailer experiences +29% > — Origination from Canada (0) > New corridors to Africa and C
Slide 23: Traditional Communications Segment
Traditional Communications Segment
Slide 24: Traditional Communications: Strong cash generation
Wi tradi nr IDT PISITAL Cross-border value transfer through mobile-top-up and other digital prepaid offerings $429 MM TTM Revenue ional Communications | Strong cash generation ——_ @ BOSS REVOLUTION’ International calling serving ~3MM customers $337 MM TTM Revenue —y~ IDT Voice & SMS Services Termina
Slide 25: IDT Consolidated
IDT IDT Consolidated
Slide 26: Increasing profitability & strong balance sheet
WH DT | Increasing profitability & strong balance sheet Well positioned for additional value creation Consolidated Adjusted EBITDA (in millions) +352, 4-Year CAGR @ @ > $138 million in cash + current investments ($5.44 / share)" @ © > $0 debt® 2019 2020 2021 2022 ™™™ » Fiscal years ended July 31 IDT
Slide 27: High growth businesses driving profitability
BH DT | High growth businesses driving profitability Consolidated Adjusted EBITDA Revenue by reporting segment 3Q23 / 3Q22 $100 Millions $80 $40 $20 $ 2019 2020 2021 2022 Fiscal years ended July 31st {Ml High Growth Business Segments Ii Traditional Communications Segment + Corporate Overhead TM IDT
Slide 28: Thank You
Thank You invest@idt.net
Slide 29: Footnotes
Footnotes ) (2) (3) {4) (5) NRS' recurring revenue is the aggregate of NRS Advertising & Data, Merchant Services and SaaS Fee revenues. Recurring revenue excludes the one time revenue from the sale of NRS terminals. Percentages of revenue are percentages of aggregate NRS recurring revenue for the tw
Slide 30: Footnotes, continued
Footnotes, continued (10) m) (12) (13) Fortune Business Insights, “Contact Center as a Service (CCaaS) Market Size, Share & COVID-19 Impact Analysis and Regional Forecast, 2022-2029" net2phone subscription revenue excludes equipment (phone) sales and revenue generated by a legacy SIP trunking offeri
Slide 31: Non-GAAP Reconciliation
Non-GAAP Reconciliation
Slide 32: Non-GAAP Reconciliation
BM DT | 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 mest directly com
Slide 33: 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 34: Non-GAAP Reconciliation: NRS
WM IDT | FINANCIALS - Non-GAAP Reconciliation - Slide 7 Reconciling (Loss) Income from Operations to Adjusted EBITDA for NRS (USD in thousands) 0323 FY2019 FY2020 FY2021 FY2022 TTM (Loss) income from operations (6,724) (6,132) (252) 11,208 +—19,410 Depreciation and amortization 289 634 520 905 2,043
Slide 35: Non-GAAP Reconciliation: net2phone
WM IDT | FINANCIALS - Non-GAAP Reconciliation - Slide 16 Reconciling Loss from Operations to Adjusted EBITDA for net2phone (USD in thousands) 3Q22 4Q22 1023 2Q23 3Q23 Loss from operations (2,256) (1,817) (1,056) (575) (377) Depreciation and amortization 1343 1,443 1,352_—-1,390_—-1,402 Adjusted EBIT
Slide 36: Non-GAAP Reconciliation: IDT Consolidated
WM IDT | FINANCIALS - Non-GAAP Reconciliation - Slide 26 Reconciling Net Income to Adjusted EBITDA for IDT Consolidated (USD in thousands) Q3 23 FY 2019 FY2020 FY2021 FY2022 TIM Net income attributable to IDT Corporation 134 21,430 96,475 27,028 49,757 Adjustments: Net income (loss) attributable to
Slide 37: Non-GAAP Reconciliation: Reporting Segments
WM DT | FINANCIALS - Non-GAAP Reconciliation - Slide 27 Growth (Loss) income from operations Depreciation and amortization Severance expense Other operating (gain) expense, net Adjusted EBITDA Traditional Communications & Corporate Overhead Income from operations Depreci Severance expense Other oper