Idt Corporation · NYSE:IDT
Idt — LD Micro Main Event XII (December 2019)
23 slides from Idt's conference presentation, Dec 11, 2019
Slide 1: LD Micro Main Event XII
LD Micro Main Event XII December 10-1, 2019 IDT Corporation
Slide 2: PREFACE - Forward-Looking Statements
PREFACE - 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 and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform A
Slide 3: IDT - Financial Overview
IDT - Financial Overview IDT Corporation Industries Telecom; Transaction and Payment Services Ticker NYSE: IDT Stock Price (At close on 12/6/2019) $6.80 Shares Outstanding (As of 12/6/2019) 26.5 MM Market Cap (At close on 12/6/2019) $180 MM Cash and Marketable Securities (As of 10/31/2019) $78 MM Re
Slide 4: IDT - Commitment to Value Creation
IDT - Commitment to Value Creation IDT Spin-Offs RAFAEL NYSE: RFL ~ $320 MM (2018) Holdings, Inc. ZeELDtse NYSE American: ZDGE ~ $18 MM (2016) STRAIGHTPATH Straight Path Communications (2015) = Sold to Verizon - $3,100 MM (2018) NYSE: GNE ~ $224 MM (2011) IDWhe::: OTC: IDWM ~ $77 MM (2009) HOLDINGS
Slide 5: IDT - Overview
IDT - Overview Core Offerings e Global leader in international long-distance calling services e North American leader in value transfer via mobile networks (Mobile Top-Up) e Robust cash flow generation New Businesses e — Significantly higher margins e Huge upside potential e Leverages core assets Fi
Slide 6: CORE - Key Offerings
CORE - Key Offerings A Market Leader in International Long Distance Calling and Mobile Top-Up C VOLUTION IDT Carrier Services IDT Mobile Top-Up International calling Terminates and manages US. customers can serving ~3MM customers international traffic for recharge mobile in the USA telecoms globally
Slide 7: IDT - Rotation to Higher Margin New Businesses
IDT - Rotation to Higher Margin New Businesses (in millions) July 31 Fiscal Year End Fiscal Q120 Fiscal Q120 Fiscal2017_ Fiscal2018 —_ Fiscal 2019 Fiscal2017_ Fiscal2018 —_‘ Fiscal 2019 Annualized Annualized Revenue $1,481.2 $1,506.9 $1,355.3 $1,292.9 $18.3 $29.9 $53.9 $68.1 Revenue less Direct Cost
Slide 8: NEW BUSINESSES - net2phone UCaaS
NEW BUSINESSES - net2phone UCaaS Cloud Communications Solutions for Business Converged Across Channels & Devices Analytics
Slide 9: NEW BUSINESSES - net2phone UCaaS
NEW BUSINESSES - net2phone UCaaS 87% Subscription S25 MMIARR Revenue Growth 112,000 seats Strategic Focus on Growth Opportunities in Latin America e Large, highly fragmented markets without clear leaders e Lower rates of UCaas adoption e Earlier in technology demand cycle e Lower average acquisition
Slide 10: NEW BUSINESSES - net2phone UCaaS - Model
NEW BUSINESSES - net2phone UCaaS - Model (in 000s) Non-GAAP July 31 Fiscal Year End Subscription Revenue $32,439 $48,208 $64,195 $80,191 Variable Subscription Costs 18,452 26,072 34718 43,369 Variable Subscription Profit 13,987 22,136 29,477 36,822 Variable Subscription Margin 43.1% 45.9% 45.9% 45.9
Slide 11: NEW BUSINESSES - National Retail Solutions
NEW BUSINESSES - National Retail Solutions POS Terminals Operated by Retailers Provide Multiple Revenue Streams SaaS Fees Retailers pay a recurring software subscription fee Payment Processing NRS PAY, an integrated payment processing solution Digital Out-of-Home Advertising Digital out of home (DOO
Slide 12: NEW BUSINESSES - National Retail Solutions
NEW BUSINESSES - National Retail Solutions $9MM Annual Revenue 93% Revenue Growth 8,200 Retailers e Empowers independent retailers with networked point-of-sale (POS) terminals, apps and services that significantly enhance competitiveness e Enables consumers to pay in-app, redeem coupons, earn reward
Slide 13: NEW BUSINESSES - National Retail Solutions - Model
NEW BUSINESSES - National Retail Solutions - Model (in 000s) Non-GAAP July 31 Fiscal Year End Saas Fees & Payment Processing $3,963 $7,465 $10,778 $14,709 DOOH Advertising & Data Analytics 3,137 4,973 8,023 12,073 Point-of-Sale Equipment 2,653 2,889 3,164 3,440 Total Revenue 9,753 15,327 21,966 30,2
Slide 14: NEW BUSINESSES - BOSS Revolution Money Transfer
NEW BUSINESSES - BOSS Revolution Money Transfer $30MM Annual Revenue 56% Revenue Growth 4.7 MM Transactions I Year e Customers in US, primarily immigrants, remit cash overseas e Addressable market: Annual remittances from the US ~ $68 billion BOSS e = Origination network: REVOLUTION © DtoC: Money Ap
Slide 15: NEW BUSINESSES - BOSS Revolution Money Transfer - Model
NEW BUSINESSES - BOSS Revolution Money Transfer - Model (in 000s) Non-GAAP July 31 Fiscal Year End Revenue $32,310 $43,816 $57,259 $74,377 Gross Profit 17,613 23,466 29,807 37,452 Gross Profit Margin % 54.5% 53.6% 521% 504% Costs 22,540 25,587 28,325 31825 Cash Investment ($4,928) ($2,121) $1,482 $5
Slide 16: IDT - Pace of Value Creation is Accelerating
IDT- Pace of Value Creation is Accelerating (in 000s) Non-GAAP July 31 Fiscal Year End net2phone UCaaS ($20,209) ($12,617) ($5,875) $827 Money Transfer (4,928) (2121) 1,482 5,627 National Retail Solutions (4,372) (674) 3,823 8776 New Businesses Cash Investment ($29,508) ($15,412) ($569) $15,230 Core
Slide 17: FINANCIALS
FINANCIALS Balance Sheet P&L Non-GAAP Reconciliation IDT Investor Presentation | 17
Slide 18: FINANCIALS - Balance Sheet
FINANCIALS - Balance Sheet Balance Sheet As of October 31, 2019 (USD in millions) Assets Lia s and Equity Cash and cash equivalents 62.2 Accounts payable 37.2 Restricted cash and cash equivalents 190.2 Accrued Expenses 1211 Debt securities 9.9 Deferred revenue 407 Equity Investments 57 Customer Depo
Slide 19: FINANCIALS - P&L
FINANCIALS - P&L (USD in millions, except EPS) Revenue Direct cost of revenue Direct cost % SG&A SG&A % Income (loss) from operation Adjusted EBITDA Income (loss) per share** “Twelve months ended October 3], 2019 ** EPS fully diluted Profit & Loss Quarterly Annual 1QFY 2QFY 3QFY 4QFY 1QFY FY FY FY 2
Slide 20: FINANCIALS - Non-GAAP Reconciliation
FINANCIALS - Non-GAAP Reconciliation In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States of America (GaApP), IDT's investor presentation also included Adjusted EBITDA which is a non-GAAP measure. Generally,
Slide 21: FINANCIALS - Non-GAAP Reconciliation
FINANCIALS - Non-GAAP Reconciliation Severance expense is also excluded from the calculation of Adjusted EBITDA. Severance expense is reflective of decisions made by management in each period regarding the aspects of IDT's and its segments’ businesses to be focused on in light of changing market rea
Slide 22: FINANCIALS - Non-GAAP Reconciliation
FINANCIALS - Non-GAAP Reconciliation Reconciling Adjusted EBITDA to Income (Loss) from Operations Quarterly Annual 1QFY 2QFY 3QFY 4QFY 1QFY FY FY FY (Usp in millions) 2019 2019 2019 2019 2020 2017 2018 2019 TTM* Adjusted EBITDA 71 7.4 8.9 7.4 7.3 37.7 38.2 30.8 31.0 Depreciation & Amortization (5.6)
Slide 23: Thank you
O Thank you \ IDT Investor Relations 520 Broad Street Newark, NJ 07102 invest@idt.net