Idt Corporation · NYSE:IDT
Idt — Sidoti Small Cap Virtual Conference December 2022
36 slides from Idt's conference presentation, Dec 7, 2022
Slide 1: Investor Presentation: Sidoti Small Cap Virtual Conference
Investor Presentation Sidoti Small Cap Virtual Conference December 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: Financial Strength and Growth
; Financial Strength and Growth Solid Balance Sheet and Increasing Profitability Powered by Growth Businesses Consolidated Adjusted EBITDA' (in millions) $137 million in cash + current $85.1 > investments ($5.37 / share)* +37% $74.5 $79.1 3-year CAGR 2019-2022 > $0 debt? $46.9 $30.8 5 Net cash provi
Slide 4: IDT - Our Businesses
; IDT - Our Businesses High-Growth, High-Margin Business Segments net2phone ane MONEY. Integrated POS-based solutions tailored for independent retailers, advertisers and marketers Cloud communications International remittances for business. and neobanking Traditional Communications Segment IDT 2ISIT
Slide 5: National Retail Solutions (NRS)
Slide 6: NRS: The Opportunity and Product
os | NRS / The Opportunity and Product omg) Thoughtfully Designed for Independent Retailers Underserved Market POS solution purpose-built to address &NRSKNSIGHTS , bess ote odepeneersremallers + C-Stores + Quick service restaurants + Bodegas and delis NRSDIC MEDIA + Liquor Stores + Hardware stores l
Slide 7: Multiple, High-Growth, High-Margin Recurring Revenues
Multiple, High-Growth, High-Margin Recurring Revenues Generating recurring revenue at a $71+ million annual run rate* Advertising & Data 54% of Revenue Merchant Services e Advertisers purchase static 36% of Revenue and video ad impressions on customer-facing screens. Retailers utilize NRS PAY, an in
Slide 8: NRS: Robust Platform and Top Line Growth
oe | NRS/ Robust Platform and Top Line Growth oe ‘ot. ' 437% We +66% +51% to 20,800 to 11,300 = to $296 ‘Active POS Terminale! Payment Processing Accounts? Monthly Average Recurring Revenue Per Terminal® ny $316 $17.7 $17.8 Monthly Recurring sae Revenue per Terminal® P $190 $193 a 1022 2022 3022 402
Slide 9: NRS: Adjusted EBITDA Expansion
a | NRS / Adjusted EBITDA Expansion Adjusted EBITDA' (in millions) Scalable Business Model * Expansion driven by high growth, high roe margin offerings - led by advertising {o) i revenues and network expansion + fy) es _ / Long Runway Opportunities ee * Less than 10% POS TAM penetration to-date $2.2
Slide 10: 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 11: net2phone: Vast Market Opportunity
| net2phone / Vast Market Opportunity net2phone A Growth and Innovation Leader Pursuing an Exceptional Market Opportunity Global market opportunity by 2028 with CAGR of 13.4%” “Frost & Sullivan regards net2phone as one of the fastest-growing UCaaS providers in the (LATAM) region, holding a top 8 pos
Slide 12: Differentiated Leader in the Sweet Spot of Communications as a Service
Differentiated Leader in the ‘Sweet Spot’ of Communications as a Service Messaging Contact Center bai | G wt Mobile App Analytics Integrations User Portals Focus on Mid-Enterprise Markets Unique Footprint in Global Markets Channel Partners Drive Customer Acquisition IDT | net2phone / Product Offerin
Slide 13: net2phone: Exceptional Growth & Margins
| net2phone / Exceptional Growth & Margins net2phone Faster Growth than Industry Average Subscription Revenue” & Seats? Pca my : : $15.0 3 300 $14.0 $13.0 278 Subscription $12.0 aha 3 3 x Revenue 250 © Growth"? site $10.0 2s 1022 2022 3Q22 4022 1923 mmm Subscription revenue ——Seats Quarters of fisca
Slide 14: net2phone: Focus on Profitable Growth
| net2phone / Focus on Profitable Growth net2phone Achieved Adjusted EBITDA Profitability Nearing cash-flow profitability even as it continues to invest over $21MM annually (TTM) in new customer acquisition $(2.9) 1Q22 Adjusted EBITDA’ $(1.9) 2022 (in millions) “8 $(0.4) $(0.9) 3Q22 4022 1Q23 Quarte
Slide 15: BOSS Money
Slide 16: BOSS Money: Platform
| BOSS Money | Platform Robust Platform Driving Durable Growth Building Out a Strategically Focused Platform > ‘ Focus on LATAM and Africa payout networks Payout in 315,000 locations via 1,500 payers in 50+ countries + direct bank deposits + mobile wallets Omni channel including both digital (Apps &
Slide 17: BOSS Money: Robust Digital Platform
| BOSS Money | Robust Digital Platform 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 Efficient Online & Offline Customer Acquit ion Successful cross-selling to existing BOSS custo
Slide 18: BOSS Money: Rapid Growth Powered by Digital Expansion
| BOSS Money | Rapid Growth Powered by Digital Expansion & > > MONEY. Growth Drivers BOSS Money Revenue © Cross-marketing within BOSS ecosystem fin millions) © Popularity of BOSS Money app. e® Money transfer added to BOSS Calling app $17.6 ° . Introduction of neo-banking and wallets Insurance produc
Slide 19: IDT Digital
IDT Aes 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 20: Mobile Top-Up: Growth Fueled by Demand for Data
| Mobile Top-Up | Growth Fueled by Demand for Data 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 5 Geographic Expansion Opportunities Canada, UK, Spain, G
Slide 21: Beyond Mobile Top-Up: A Global Value Transfer Strategy
| Beyond Mobile Top-Up | A Global Value Transfer Strategy IDT DIGITAL Content & ‘Gaming eGifts Regional Brands eGifts Global Brands Global Value Hub Boss Revolution Stores (oT | BessRevouion Apps > | Besson ies > POSpe paishevaien es > eas > Airtime & Data A Global Portfolio of Lifestyle Value Added
Slide 22: IDT Global: Legacy Communications Businesses
oe 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 23: Offerings in the Paid-Minute Communications Market
| Offerings in the Paid-Minute Communications Market A Market Leader in International Long Distance Calling Services @ IDT BOSS REVOLUTION: Voice & SMS Services International calling serving Terminates & manages international ~3MM customers voice traffic and SMS through direct connections to 156 cou
Slide 24: IDT Consolidated
IDT IDT Consolidated
Slide 25: Leveraging traditional businesses to invest in growth
IDT - Leveraging traditional businesses to invest in growth Revenue 1Q23 /1Q22 Consolidated Adjusted EBITDA! by reporting segment -$5 1022 2022 3Q22 4022 1Q23 === Traditional Communications & Corporate Overhead «mmm Growth Segments Quarters of fiscal years ended July 31st IDT (Ry
Slide 26: Market caps and dividends of SpinCos
2009 Market caps Dividends =" 5 SpinCos® paid by IDT IDT [> IDT } and SpinCos bathe $765 us” $27B —-=$210 MM first spin-off From $54 million to $3.7 BILLION IDT 2 6
Slide 27: Thank You
Thank You invest@idt.net
Slide 28: Footnotes
Footnotes 3) (4) (6) 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 explana
Slide 29: Footnotes, continued
Footnotes, continued (7) (3) (9) (10) m) (2) 13) Fortune Business Insights, “Unified Communication as a Service (UCaaS) Market Size, Share & COVID-19 Impact Analysis and Regional Forecast, 2021-2028" Frost & Sullivan. “Frost RadarTM: Unified Communications as a Service Market in Latin America and th
Slide 30: Non-GAAP Reconciliation
Non-GAAP Reconciliation
Slide 31: Non-GAAP Reconciliation
Non-GAAP Reconciliation IDT 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 compara
Slide 32: 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 enti
Slide 33: Reconciling Net Income to Adjusted EBITDA for IDT Consolidated
FINANCIALS - Non-GAAP Reconciliation - Slide 3 Reconciling Net Income to Adjusted EBITDA for IDT Consolidated (USD in thousands) 1023 FY 2019 _FY2020 FY 2021 FY2022___TTM Net income attributable to IDT Corporation 134 21,430 96,475 27,028 40,508 Adjustments: Net income (loss) attributable to noncont
Slide 34: Reconciling Income from Operations to Adjusted EBITDA for NRS
FINANCIALS - Non-GAAP Reconciliation - Slide 9 Income from operations Adjusted EBITDA Reconciling Income from Operations to Adjusted EBITDA for NRS (USD in thousands) 1Q22 2022 3Q22 4022 1023 1347 2,058 «1,078 6,725. 5,231 Depreciation and amortization 160 183 207 355, 478 1507 2,241 «21,285 ~—7,080
Slide 35: Reconciling Loss from Operations to Adjusted EBITDA for net2phone
FINANCIALS - Non-GAAP Reconciliation - Slide 14 Reconciling Loss from Operations to Adjusted EBITDA for net2phone (USD in thousands) 1Q22.2Q22_3Q22_4Q22_—— 1023 Loss from operations (4,193) (2,866) (2,256) (1,817) (1,056) Depreciation and amortization 1328 1,260 13431443. 1,352 Other operating (gain
Slide 36: Reconciling Income from Operations to Adjusted EBITDA for Reporting Segments
FINANCIALS - Non-GAAP Reconciliation - Slide 25 Reconciling (Loss) Income from Operations to Adjusted EBITDA for Reporting Segments (USD in thousands) 1022 2Q22 3Q22 4022 1Q23 Growth (Loss) income from operations (4,441) (3,079) (2,290) 2,999 5,686 Depreciation and amortization 1,997 1,977 2,128 2,4
IDT — Sidoti Small Cap Virtual Conference December 2022 on 6ix