IDT Corp (IDT) Reports Record Growth in Q4 and Fiscal Year 2023
IDT Corp (NYSE:IDT) reported a 21% increase in seats served and a 19% increase in subscription revenue YoY in Q4 2023.
BOSS Money transactions increased by 42%, driving a 36% YoY revenue increase in Q4 2023.
Net income attributable to IDT increased 50% to $40.5 million in FY2023.
IDT repurchased 511,546 Class B shares for $13.1 million in FY2023.
On October 12, 2023, IDT Corp (NYSE:IDT), a global provider of fintech, cloud communications, and traditional communications services, released its earnings report for the fourth quarter and full fiscal year 2023, ended July 31, 2023. The company reported significant growth across its high-growth businesses, including a 21% increase in seats served and a 19% increase in subscription revenue year-over-year (YoY) in Q4 2023.
Financial Highlights
National Retail Solutions (NRS) added over 1,700 net active point-of-sale (POS) terminals during Q4 2023 and over 6,300 during FY2023, reaching approximately 25,700 as of July 31st. Recurring revenue increased 6% in Q4 2023 to $18.8 million, led by a 79% increase in merchant services revenue. FY2023 recurring revenue increased 58% to $71.4 million.
Net2phone added approximately 12,000 net seats served during Q4 2023 and 61,000 during FY2023, reaching approximately 352,000 as of July 31st. Subscription revenue increased 19% in Q4 2023 to $17.9 million. FY2023 subscription revenue increased 25% to $66.8 million.
BOSS Money remittance volume increased by 42% to 3.79 million transactions during Q4 2023 while revenue increased 36% to $22.3 million. FY2023 BOSS Money revenue increased 38% to $76.9 million.
However, consolidated revenue decreased 8% in Q4 2023 to $304 million while consolidated direct cost of revenue decreased 11% to $211 million. FY2023 consolidated revenue decreased 9% to $1,239 million while the consolidated direct cost of revenue decreased 15% to $876 million.
CEO Commentary
CEO Shmuel Jonas commented on the results, stating,
Our results this quarter were highlighted by the continued expansion of our three high-growth, high-margin businesses, while our Traditional Communications segment performed as expected."
Financial Tables Summary
The financial tables provided in the earnings report detail the performance of IDT's various segments, including National Retail Solutions (NRS), net2phone, Fintech, and Traditional Communications. The tables show a consistent increase in revenue across all segments, with the most significant growth seen in the NRS and net2phone segments.
Outlook
Looking ahead, IDT Corp (NYSE:IDT) is poised for continued growth, driven by its high-growth businesses. The company's strong performance in Q4 2023 and FY2023, coupled with its strategic initiatives, position it well for future success.
This article first appeared on GuruFocus.
