Idt Corporation · NYSE:IDT
Idt — Q3 FY2019 Earnings Presentation
29 slides from Idt's earnings presentation, Sep 16, 2019
Slide 1: IDT Corporation Third Quarter Fiscal Year 2019
i IDT Corporation || DT. innovative communications & payment services Third Quarter Fiscal Year 2019
Slide 2: Forward-Looking Statements
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 w
Slide 3: Table of Contents
Table of Contents Overview Core Offerings New Businesses Financials Non-GAAP Reconciliation
Slide 4: Overview - Financial
Overview - Financial Industries Telecom; Transaction and Payment Services ‘Stock Price * ‘$11.20 Market Cap $294 MM Revenue (TTM) * $1,446 MM Adjusted EBITDA (TTM) * $40 MM sBased on closing price on September 13,2019 2As of April 30, 2019 2As of June §, 2019 “TM - Twelve months ended April30, 2019
Slide 5: Overview - Key Facts
Overview - Key Facts 1990 Founded by Howard Jonas
Slide 6: Overview - Business Portfolio
Overview - Business Portfolio Global leader in international long-distance calling services Pioneering international value transfer via mobile networks Stable and predictable cash flows Synergistic with core Higher margins Robust upside potential
Slide 7: Overview - Offerings
Overview - Offerings Core BOSS Revolution Calling Mobile Top-Up Wholesale Carrier Services Othe: New Business Initiatives net2phone - unified communications as a service National Retail Solutions BOSS Revolution Money Transfer New Business initiative
Slide 8: Core - Offerings
Core - Offerings IDT Growing market share through enhanced product technology, global reach, distribution and marketing } \ BOSS REVOLUTION BOSS Revolution Calling Mobile Top-Up Wholesale Carrier Services $502 million * $265 million * $548 million * * Revenue for the twelve months ended April 30, 20
Slide 9: Core - Predictable Revenue & Margins
Core - Predictable Revenue & Margins Core revenue in millions 2a8 3a18 mm 2085 Revolution Calling qa mmm Wholesale Carrier 1919 = Mobile Top-Up 2a19 Other 319 —argin Contribution $70 $50 $30 $20 $10 Revenue less direct cost in millions
Slide 10: Core - BOSS Revolution Calling
Core - BOSS Revolution Calling Prepaid international long-distance offering delivering significant savings vs. most landline and wireless per/minute offerings Leading immigrant-focused brand backed by nationwide marketing 3.7 M customer per month, 1.1 M active on BOSS. Revolution app Underbanked cus
Slide 11: Core - BOSS Revolution Calling
Core - BOSS Revolution Calling App User Growth Driving Business 9%. CAGR to 11s 2a1s 3018 4018 1019 2a 9 3019 1,250,000 1,000,000 750,000 500,000 iT
Slide 12: Core - Mobile Top-Up
Core - Mobile Top-Up Digicel i) Wi mousstar @ T - -Mobile- verizon’ US customers recharge domestic and overseas mobile accounts of family and friends Partnerships with wireless operators in 90+ countries Offered at BOSS Revolution retailers, in app and online Bundled offerings (airtime minutes/text/
Slide 13: Core - Mobile Top-Up
Core - Mobile Top-Up Revenue in millions Data Demand Driving Revenue Growth $70.0 $65.0 $60.0 $55.0 $50.0 $45.0 $40.0 2018 3a18 EB Airtime Top-Up Revenue 4018 1019 2019 3019 I Bundles (voice, data, text) Revenue %
Slide 14: Core - Wholesale Carrier Services
Core - Wholesale Carrier Services wi § Terminates international long distance (ILD) calls for telecom operators, including the largest global carriers I Leverages BOSS Revolution retail origination minutes to create reciprocal “buy and sell” opportunities ™ World's sixth largest ILD carrier ™@ Telec
Slide 15: Core - Strategic Assets Leveraged Across the Enterprise
Core - Strategic Assets Leveraged Across the Enterprise “jg 35,000 retailers serviced Global infrastructure rw by our direct sales force 4} Transaction platform e IDT e my <o5> 8M + retail customers e voir expertise Our people 15
Slide 16: New Businesses
New Businesses Leveraging Core Competencies to Provide Next Generation Communications and Payment Services NATIONAL RETAIL net2phone = &@) SEIAL net2phone's UCaaS National Retail Offering Solutions Cloud communication solutions Point-of-sale (POS) network for businesses globally serving independent
Slide 17: New Businesses - net2phone UCaaS
New Businesses - net2phone UCaaS Cloud Communications Solutions for Business Converged Across Channels & Devices Tr | _@ Analytics wennre . = Full Featured Desk Phone Mobile App
Slide 18: New Businesses - net2phone UCaaS
New Businesses - net2phone UCaaS | Addressable market: $79 billion by 2024! ™ Near term growth drivers: @ Deployment of proprietary platform with upmarket feature set enhancements and integrations Continued expansion in Brazil and other current LATAM markets lm Marketed through indirect and direct c
Slide 19: New Businesses - National Retail Solutions
New Businesses - National Retail Solutions 7,200+ Retailers* lm Provides independent retailers with networked point-of-sale (POS) terminals and services that significantly enhance retailers’ competitiveness m Addressable market of ~200k independent retailers including 40k BOSS Revolution retailers l
Slide 20: New Businesses - BOSS Revolution Money Transfer
New Businesses - BOSS Revolution Money Transfer ™ Customers in US, primarily immigrants, remit cash overseas ™ Addressable market: Annual remittances from the US - $68 billion res BOSS Origination network: + Direct to consumer (D2C) - Money app + web REVOLUTION * Nationwide retail network at over 70
Slide 21: New Businesses - Money Transfer
New Businesses - Money Transfer Growth in Direct-to-Consumer (D2C) Channel 1,000,000 800,000 600,000 400,000 200,000 118 sQ18 418 rg19 Transactions HB Retailer initiated I 2c: App and web
Slide 22: New Businesses - Revenue & Margin Contribution
New Businesses - Revenue & Margin Contribution Revenues Increasing and Margins Expanding as Initiatives Scale 2 8 5 . oe a Z S — 2 sno 5 E % £ $60 c a $8.0 ° 2 o 2 3 rd $60 5 3 a A H Hl | 5 fe g é 2 c $20 g H es é oa et HM Netphone ucaes I Money Transfer IBD National Retail Solutions EEE Margin Cont
Slide 23: Financials
IDT Financials Balance Sheet P&L Non-GAAP Reconciliation
Slide 24: Financials - Balance Sheet
Financials Balance Sheet As of April 30, 2019 (in millions of USD) ‘Cash and cash equivalents 793 Restricted cash and cash equivalents 1628 Debt securities 03 Trade accounts receivable, net 544 Prepaid expenses 29 Other current assets 267 Total current assets Evers Plant, property and equipment 350
Slide 25: Financials - Profit & Loss
{USD in mitions except EPS) Revenue Direct cost of revenue Direct cost % SCBA SGBA% Income from operations Adjusted EBITDA Income (loss) per share" ‘Twelve months ended Aptil 30,2019 EPS fly dluted Financials Profit & Loss 4QFY2018 IQ FY 2019 3926 3623 325) 304.7 62.8% 84.1% 50.7 50.6 129% 14.0% 105
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation Inaddition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States of America (GAAP), IDT's investor presentation also included Adjusted EBITDA which is a non-GAAP measure. Generally, non-GAAP financ
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation Severance expense is also excluded from the calculation of Adjusted EBITDA Severance expenses reflective of decisions made by managementin each period regarding the aspects of IDTs and its segments’ businesses to be focused on in ight of changing market realities and other fa
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciling Adjusted EBITDA to Income from Operations 4Q FY 2018 TQFY 2019 2Q FY2019 3QFY2019 ™ (USD in millions) Adjusted EBITDA S68 $7 $74 $09 $402 8a ($5.6) (85.6) ($5.8) ($55) ($225) Severance ($03) $0.0 $0.0 ($0.6) ($0.9) Other gains (losses) ($0.4) ($0.2) (so) ($02) ($0
Slide 29: Thank you
SS | Thank you \ IDT Investor Relations 520 Broad Street Newark, NJ 07102 invest@idt.net IDT Corporation - innovative Communications and Payment Services