Idt Corporation · NYSE:IDT
Idt — 13th Annual Southwest IDEAS Investor Conference (November 2021)
37 slides from Idt's conference presentation, November 2021
Slide 1: IDT Corporation Investor Presentation
IDT Corporation Investor Presentation 13th Annual Southwest IDEAS Investor Conference November 2021
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: IDT · At a Glance
IDT · At a Glance POS and payment platform services Cloud communications nrsplus.com for business net2phone.com Retail calling bossrevolution.com bossrevolutionmobile.com Mobile top-up, banking and other early initiatives International remittances idtcarrierservices.com Carrier services and and neob
Slide 4: Commitment to Value Creation
IDT · Commitment to Value Creation From $54 million to $4.6 BILLION¹ Today 2009 Dividends Market caps of 5 SpinCos paid by IDT and SpinCos $54 MM Market cap at first spin-off $1.6 B $2.8 B ≅$210 MM IDT Investor Presentation | 4
Slide 5: Financial Highlights
IDT · Financial Highlights Financial Strength Strategic Flexibility Consolidated Adjusted EBITDA2 Less CAPEX $1.59 B Market Cap +$560% year over year3 +87% Balance Sheet $161 MM Cash + Near Cash4 +$52 MM5 $0 Fiscal years ended July 31 Debt6 IDT Investor Presentation | 5
Slide 6: net2phone
netZ2phone
Slide 7: Cloud Communications
Cloud Communications Differentiated Leader in the ‘Sweet Spot’ of Communications as a Service Web Calling Video Integrations 226,000 seats6 User Portals $47MM annualized revenue7 Voice Exceptional topline growth and margins Analytics SMS/MMS Messaging Mobile App Investor Presentation | 7
Slide 8: Exceptional Opportunity in Domestic and International Markets
Cloud Communications Exceptional Opportunity in Domestic and International Markets $70 billion Global market opportunity by 2028 with CAGR of 13.4% 8 Investor Presentation | 8
Slide 9: Differentiator #1: Exceptional and Sustainable Growth and Margins
Differentiator #1 Exceptional and Sustainable Growth and Margins 46% Revenue growth9 83.5% Margin10 Fiscal quarters for fiscal years ended July 31st IDT Investor Presentation | 9
Slide 10: Differentiator #2: Boots on the Ground
Differentiator #2 Boots on the Ground - 9 Countries, Across 3 Continents 40% of the Global Communications as a Service Market is Abroad and Growing 44% YoY Growth9 56% YoY Growth9 Recently Launched Local offices: São Paulo, Brazil Local offices: Buenos Aires, Newark, NJ, US Local offices: Argentina Ott
Slide 11: Differentiator #3: Leader in SMB and Small Enterprise Marketplace
Differentiator #3 A Leader in the SMB and Small Enterprise Global Marketplace SMB Sweet Spot ❖ Fragmented market ❖ Aligned technology ❖ Condensed sales cycles ❖ Dynamic global market IDT Investor Presentation | 11
Slide 12: Differentiator #4: Multi-Channel Acquisition Approach
Differentiator #4 Focused SMB/Small Enterprise Multi-Channel Acquisition Approach AGENT CHANNEL PARTNERS 20+ 5,000+ ❖ ❖ Trusted technology / telecom advisors Favor best value solution Master Channel Agent Partners Partners ❖ Higher average per customer seat counts / multiple clients DIRECT CHANNEL ❖
Slide 13: Differentiator #5: Continuous Release of Product Features
Differentiator #5 Continuous Release of Product Features, Functionality, and Service Enhancements Tailored to SMB and Small Enterprises Huddle Video Conferencing Features & Differentiators ● Web based ● Calendar Integration ● Passcode protected ● Live Stream with YouTube ● Encrypted for security ● E
Slide 14: A Powerful Point-of-Sale Platform for Independent Retailers
A Powerful Point-of-Sale Platform to Drive Independent Retailers’ Success
Slide 15: The Opportunity and Product Offering
The Opportunity and Product Offering Independently owned convenience, liquor and tobacco stores need modern store management technology Underserved Market Full suite of software The NRS solution is designed specifically to solutions for retailers address the unique needs of the independent retailer,
Slide 16: Core Revenue Drivers
Core Revenue Drivers POS terminals provide multiple revenue streams SaaS Fees Digital Out-of-Home Retailers pay a recurring (DOOH) Advertising software subscription fee Advertisers purchase static and video ad impressions on customer-facing screens Payment Processing Retailers can utilize NRS Data A
Slide 17: Platform Revenue Growth Powered by Multiple Offerings
Platform Revenue Growth Powered by Multiple Offerings 76% 14,000 5,600 Revenue Growth 12 Active Payment Processing Terminals6 Accounts6 IDT Investor Presentation | 17
Slide 18: Helping families to share resources around the world
Helping families to share resources around the world
Slide 19: Money Transfer | Leveraging Assets for Growth
Money Transfer | Leveraging Assets for Growth Leveraging strategic assets: Digital Transactions ● Trusted BOSS Revolution brand ● 10 million BOSS ecosystem customers to cross sell ● High volume transaction platform ● Boss Revolution app ecosystem Global remittance platform ● Origination in USA ● Foc
Slide 20: Money Transfer | Digital Platform Expansion
Money Transfer | Digital Platform Expansion 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 Customer Acquisition ● Successful cross-selling to existing BOSS customers ● Sophi
Slide 21: Money Transfer | Growth Runway
Money Transfer | Growth Runway Growth Runway ● Expand retail pay-in network ● Retail payout network growth ● Origination market expansion- Canada and UK to start ● Peer-to-peer transfers ● In country neo-banking services ● Expand wholesale payout network ○ Investor Presentation | 21
Slide 22: Traditional Communications led by Mobile Top-Up
Traditional Communications led by Mobile Top-Up
Slide 23: Traditional Communications · Key Offerings
Traditional Communications · Key Offerings A Market Leader in Mobile Top-Up and International Long Distance Calling Carrier Services U.S. customers can recharge International calling Terminates & manages mobile accounts in 100+ serving ~3MM international traffic for countries customers in the USA tel
Slide 24: What's Mobile Top Up?
What’s Mobile Top Up? 170+ Carriers 100+ Countries 1,600+ Products Simple · Instant · Secure · Targeted · Value Investor Presentation | 24
Slide 25: Mobile Top Ups | Rapid Topline Growth
Mobile Top Ups | Rapid Topline Growth 41% Revenue growth12 1.2 MM Customers14 Fiscal quarters for fiscal years ended July 31st Investor Presentation | 25
Slide 26: Looking Ahead | Mobile Top-Up Growth Opportunities
Looking Ahead | Mobile Top-Up Growth Opportunities Regional Momentum New Products Investing in high growth corridors Global demand for Internet access - Africa (100%+YoY) driving data-heavy packages - Caribbean (40%+ YoY). worldwide. Growing at 56% YoY. Unique Omni Channel Expansion Opportunities Br
Slide 27: Beyond Mobile Top Ups | A Global Value Strategy
Beyond Mobile Top Ups | A Global Value Strategy A Global Portfolio of Lifestyle Value Added Services, all delivered in real-time via our secure platform, direct to the recipient’s phone. Investor Presentation | 27
Slide 28: Value Creation
Value Creation
Slide 29: Valuation - Sum of the Parts Suggests Potential Upside
Valuation - Sum of the Parts Suggests Potential Upside15 Unified Communications POS Network Money Transfer Q4 FY21 Annualized Subscription Revenue Q4 FY21 Annualized Revenue = $33MM Q4 FY21 Annualized Revenue = $44MM = $47MM Industry Multiples = 15x - 20x Industry Multiples = 5x - 7.5x Industry Multi
Slide 30: Thank You
IDT Corporation Thank You
Slide 31: Footnotes
Footnotes (1) Market capitalizations of IDW Media Holdings, Genie Energy Ltd., Zedge, and Rafael Holdings at market close on October 11, 2021 plus $2.35 billion for Straight Path Communications, which was sold to Verizon for net proceeds of that amount in 2018 (2) Throughout this presentation, Adjus
Slide 32: Footnotes, continued
Footnotes, continued (13) Traditional Communications total revenue for fiscal 2021, the twelve months ended July 31, 2021. Total includes revenue from other, smaller businesses. (14) Average number of unique customers per month during Q4 fiscal 2021, the three months ended July 31, 2021 (15) Industry
Slide 33: Non-GAAP Reconciliation
Non-GAAP Reconciliation 33 | Investor Presentation
Slide 34: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted EBITDA less CAPEX is a financial metric, which is calculated by deriving Adjusted EBITDA as described below and subtracting capital expenditures in accordance with generally accepted accounting principles in the United States of America (GAAP) as reported in the conso
Slide 35: Non-GAAP Reconciliation, continued
Non-GAAP Reconciliation, continued Management refers to Adjusted EBITDA, as well as the GAAP measures income (loss) from operations and net income (loss), on a segment and/or consolidated level to facilitate internal and external comparisons to the segments’ and IDT's historical operating results, i
Slide 36: FINANCIALS · Non-GAAP Reconciliation
FINANCIALS · Non-GAAP Reconciliation Investor Presentation | 36
Slide 37: FINANCIALS · Non-GAAP Reconciliation
FINANCIALS · Non-GAAP Reconciliation Investor Presentation | 37
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