Idt Corporation · NYSE:IDT
Idt — Southwest IDEAS Conference 2023
40 slides from Idt's conference presentation, Nov 13, 2023
Slide 1: IDT Investor Presentation, Fiscal 2023
Investor IDT Presentation NYSE: IDT Fiscal 2023 Southwest IDEAS Conference November 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 NATIONAL NRS Segment: POS-platform A Ese) RETAIL solutions tailored for independent lod: SOLUTIONS retailers, advertisers & marketers net2phone net2phone Segment: Cloud communications for businesses &
Slide 4: IDT at a Glance
VW) IDT | DT ataGlance ed Newark, NJ 33 1,900 Founder & Headquarters Years in Business Employees Chairman Globally a — $1.2BN $86MM $152MM 5 FY 2023 Revenue! FY 2023 Adjusted EBITDA? Net Cash + Current Public Company Investments? Spinoffs ee Oe es
Slide 5: Timeline of Key Events and Strategic Initiatives
W) IDT | Timeline of Key Events and Strategic Initiatives Launched BOSS Revolution , ‘ Straight Path Zedge Spinoff (NYSE: IDT Founded as waa ene Spinoff & Launched ZDGE) & Launched REGeiea a Telecom lobile Top-Up Boss Money NRS vee ony Acquired CCaaS Company (RESET) Provider Integra 1996 2011 2015 2
Slide 6: High-Growth, High-Margin Businesses
High-Growth High-Margin Businesses
Slide 7: National Retail Solutions (NRS)
ZN of! National Retail Solutions (NRS) Our integrated cloud software and POS-based solutions enable independent retailers to operate more profitably. The NRS platform also offers advertisers and consumer packaged goods marketers unprecedented reach and insight into urban markets
Slide 8: NRS: One Platform, Multiple Recurring Revenue Streams
7 oe NRS | One platform > Multiple Recurring Revenue Streams $71 Million in Annual, Recurring, High Margin Revenue* Merchant Services Advertising & Data 46% of Revenue 43% of Revenue > Retailers subscribe to NRS Pay, a > — Advertisers purchase static and payment processing solution for video ad impr
Slide 9: NRS Revenue Growth
| cue NRS | Revenue Growth Recurring Revenue and Average Recurring Revenue per Terminal® (Recurring Revenue in millions) w Revenue growth $80.0 $300.0 4 Year € powered by network +114, Rewoee $2500 © expansion and $ $60.0 ee a increases in revenue g $200.0 $ per terminal ° : > £ $400 #500 & 3 2 3 €
Slide 10: The Leading POS for Independent Convenience Stores and Bodegas
The Leading POS for Independent Convenience Stores and Bodegas POS network - 25,700 active terminals at ~22,300 independent retail stores® -11% penetration to date on core TAM: > C-stores and bodegas 5 > Liquor stores > Tobacco shops Developing differentiated POS solutions for adjacent retail vertic
Slide 11: NRS Merchant Services - Featuring NRS Pay
_| oe NRS | Merchant Services - Featuring NRS Pay Merchant Services Revenue - Predominantly Credit Card & Other Electronic Payment Processing Robust YoY Expansion Continued in 4Q237 $40.0 20.0 - Merchant = : + 1G Dey, revenue 4 Year cacr ¥ +79-, Services S revenue g s00 wo 8 8 £ = a E 800 wo 2 8 § 3
Slide 12: NRS Advertising & Data - Platform with Massive Potential
| oe NRS | Advertising & Data - Platform with Massive Potential America’s largest independent retailer hosted advertising and transaction data network NRS Digital Media: > Adsare served on the NRS POS’ customer-facing digital screens > > Inventory is sold to advertisers via programmatic platforms an
Slide 13: NRS SaaS Fee Revenue Growth Driven by Network Expansion
| oe NRS | SaaS Fee Revenue Growth Driven by Network Expansion SaaS Fee Revenue (in millions) +56, 4 Year CAGR 2019 2020 2021 2022 2023 Fiscal years ended July 3st Retailers pay monthly recurring charges (MRCs) for POS Services Retailers can select from several feature-rich software plans from as li
Slide 14: NRS Robust Scalability Driving Net Margin Expansion
| oe NRS | Robust Scalability Driving Net Margin Expansion fi Increasing profitability 4 fueled by growth of rN . = exceptionally high net margin offerings NRS’ Adjusted EBITDA margin’° increased from 1% in FY 2021 to 22% in FY 2023 a Adjusted EBITDA (in millions) 2021 2022 2028 Fiscal years ended J
Slide 15: 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 net2phone sales office locations
Slide 16: net2phone Vast Market Opportunities
M@ net2phone | Vast Market Opportunities AGrowth Leader Pursuing Exceptional Market Opportunities Unified Communications as $70 a Service (UCaaS) Frost & Sullivan io Global market opportunity with CAGR c¢ regards net2phone billion of 13.4% through 2028” as a leader in both innovation and growth.” Co
Slide 17: net2phone Strategic Differentiation
MM net2phone | Strategic Differentiation Offerings Differentiated by Market, Geography and Channel iy User Portals Focus on i a Mid-Enterprise Clients yw Voice Web Calling Contact Center Distinctive Geographic Footprint Focused on the Americas Channel Partners Customer Acqui: Video & Mobile App Mess
Slide 18: net2phone Exceptional Growth with a CCaaS Lift
M™ net2phone | Exceptional Growth with a CCaa$ Lift Subscription revenue (in millions) Subscription Revenue & Seats Served 4-year +40y, Revenue CAGR $80.0 $60.0 $40.0 $20.0 2019 2020 2021 2022 Fiscal years ended July 31st BD suvscription revenue Ss Seats 2023 100 Seats (in thousands) Fourth Quarter
Slide 19: net2phone Transitioning to Profitability
MW net2phone | Transitioning to profitability Adjusted EBITDA (in millions) 2020-2021 2022 Fiscal years ended July 31st 2023 Nearing cash flow break-even inclusive of CAPEX and of approximately $20MM annual spend for customer acquisitions Highly profitable model as business continues to scale oT
Slide 20: net2phone Margin Expansion
W net2phone | Margin Expansion Current Drivers > Higher ARPU CCaaS$ growth e > — Operating leverage (fixed SG&A as a % of revenue decreased from 76% in FY 2019 to 49% in FY 2023) > Lower customer churn. > Lower per customer acquisition spend _ New Premium Plans and Add-Ons a= 5 Differentiated Plans
Slide 21: BOSS Money
4 e = eo Bpread tle pe Ss ® BOSS MONEY. Our international remittance services enable customers in the U.S.;and more recently in Canada and certain African markets, to send money to friends and family in nearly 50 destination countries. BOSS Money's results are reported within ; IDT’s Fintech segment
Slide 22: BOSS Money Robust Platform Driving Durable Expansion
Mi & BOSS | Robust Platform Driving Durable Expansion Money Transfer Transactions cmon) Building Out a Strategically Focused Platform : > Processed remittances: $4.3 billion of +39, 4 Year CAGR principal transferred in FY 2023 ~ = > — Geography: Expanding origination beyond primary US to LATAM and A
Slide 23: BOSS Money Robust Revenue Growth and Opportunities
MI <& BOSS | Robust Revenue Growth and Opportunities BOSS Money Revenue (in millions) +55% neve Fiscal years ended July 31st Fourth Quarter Fiscal 2023 Highlights +36: Revenue Retail Transactions D-to-C Transactions
Slide 24: BOSS Money Powerful Omni-Channel Platform
WM & BOSS | A Powerful & Synergistic Omni-Channel Platform MONEY. Retail Channel - Nationwide Footprint > Serves asa strategic ‘gateway’ for underbanked to enter BOSS ecosystem > — Agent network expanded 47% in FY 2023 / FY 2022 Direct-to-Consumer Channel - Superior UX > > — User-rated 4.8 out of S
Slide 25: Traditional Communications Segment
Traditional Communications Segment
Slide 26: Traditional Communications: Strong Cash Generation
Wy tradi a AL IDT DIGITAL Cross-border value transfers through mobile-top-up and other digital prepaid offerings $417 MM FY 2023 Revenue onal Communications | Strong Cash Generation —_ @ BOSS REVOLUTION’ International calling serving ~3MM customers $322 MM FY 2023 Revenue > IDT Voice & SMS Services
Slide 27: IDT Consolidated
IDT IDT Consolidated
Slide 28: Increasing Profitability & Strong Balance Sheet
WH IDT | Increasing Profitability & Strong Balance Sheet Positioned for additional value creation Consolidated Adjusted EBITDA $152 million in cash + current investments ($5.93 / share)'” > $0 debt” Returning value to shareholders (in milfons) +29», 4 Year CAGR > through buybacks ($13 million in FY
Slide 29: High Growth Businesses Driving Profitability
WH DT | High Growth Businesses Driving Profitability Revenue 4Q23 / 4Q22 Growth Segments® Consolidated Adjusted EBITDA by reporting segment $100 = $60 $40 $20 $. s(20) S40) 2019 2020 2021 2022 2023 Fiscal years ended July 31st ll High Growth Business Segments [li Traditional Communications Segment +
Slide 30: Thank You
Thank You invest@idt.net
Slide 31: Footnotes
Footnotes a) (2) Fiscal years cited throughout this presentation refer to the 12 months ended July 31* 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 i the end of this presentation fo
Slide 32: Footnotes, continued
Footnotes, continued (10) Adjusted EBITDA margin is Adjusted EBITDA divided by revenue for the corresponding periods. (Il) Frost & Sullivan. “Frost RadarTM: Unified Communications as a Service Market in Latin America and the Caribbean, 2022" (12) Fortune Business Insights, “Unified Cormmunication as
Slide 33: Non-GAAP Reconciliation
Non-GAAP Reconciliation
Slide 34: 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 35: 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 36: Non-GAAP Reconciliation: NRS Adjusted EBITDA
WM NDT | FINANCIALS - Non-GAAP Reconciliation - Slide 14 Reconciling (Loss) Income from Operations to Adjusted EBITDA for NRS (USD in thousands) Fy 2019 FY2020 FY2021 FY2022 FY 2023 (Loss) income from operations (6,724) (6,132) (252) (11,208 + 14,401 Depreciation and amortization 289 634 520 905 2,3
Slide 37: Non-GAAP Reconciliation: net2phone Adjusted EBITDA
WM DT | FINANCIALS : Non-GAAP Reconciliation - Slide 19 Reconciling (Loss) from Operations to Adjusted EBITDA for net2phone (USD in thousands) FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 (Loss) from operations (14,404) (16,765) (15,460) (11,132) (2,754) Depreciation and amortization 3,763 4,147 5,053 5,
Slide 38: Non-GAAP Reconciliation: Traditional Communications
WH DT | FINANCIALS : Non-GAAP Reconciliation - Slide 26 Reconciling Income from Operations to Adjusted EBITDA for Traditional Communication (USD in thousands) FY2023 Income from operations 61,288 Depreciation and amortization 9,428 Severance 875 Other operating expense 5,888 Adjusted EBITDA 77,479 I
Slide 39: Non-GAAP Reconciliation: IDT Consolidated
WM DT | FINANCIALS : Non-GAAP Reconciliation - Slide 28 Reconciling Net Income to Adjusted EBITDA for IDT Consolidated (USD in thousands) Fy2019 _FY2020—~FY2021_—s=#FY.2022_~—=FY-2023 Net income attributable to IDT Corporation 134 (21,430 96,475 27,028 «40,492. Adjustments: Net income (loss) attribu
Slide 40: Non-GAAP Reconciliation: Reporting Segments
WH DT | FINANCIALS : Non-GAAP Reconciliation - Slide 29 Reconciling Income from Operations to Adjusted EBITDA for Reporting Segments (USD in thousands) Fy2019 _-FY2020FY2021_ =~FY2022 ~—_—~FY2023 High Growth Business Segments (Loss) income from operations (27,272) (13,683) (17,660) (6811) 9,113 Depr