IDT Corporation IDT delivered adjusted earnings per share (EPS) of 57 cents in the fourth quarter of fiscal 2024, up 58.3% year over year.
GAAP EPS for the quarter was $1.45, reflecting a surge of 367.7% from the year-ago figure.
Full-year fiscal 2024 adjusted EPS was $1.95, reflecting a 4.8% uptick from the comparable fiscal 2023 period.
IDT’s Revenues in Detail
IDT registered revenues of $308.8 million in the fiscal fourth quarter, up 1.7% year over year.
Robust performances by National Retail Solutions (NRS), BOSS Money, net2phone and IDT Digital Payments drove the topline.
Full-year fiscal 2024 revenues were $1.21 billion, reflecting a 2.7% decline from the comparable fiscal 2023 period.
Shares of this company gained nearly 0.9% at yesterday’s close.
IDT’s Segment Details
IDT’s operations consist of four business segments — NRS, net2phone, Fintech and Traditional Communications.
For the quarter under review, NRS reported revenues of $28.2 million, up 42% from the year-ago quarter. During the quarter, NRS added approximately 1,800 net active terminals and approximately 1,900 net payment processing accounts.
The revenues in the net2phone segment totaled $21.4 million, up 11% year over year. The segment also recorded a 13% uptick in the number of seats served, driven by continued expansion in key markets led primarily by the United States, Brazil and Mexico.
The Fintech segment generated revenues of $34.6 million, up 41% from the year-ago quarter. BOSS Money Transactions were up 42% in the reported quarter, driven by a 42% increase in digital transactions and a 41% increase in retail transactions. BOSS Money revenues increased 41% on the back of cross-marketing within the larger BOSS ecosystem and expansion of the retail agent network.
The Traditional Communications segment generated revenues of $224.6 million, down 6% year over year.
IDT Corporation Price, Consensus and EPS Surprise
IDT Corporation price-consensus-eps-surprise-chart | IDT Corporation Quote
IDT Gross Margin
In the quarter under review, IDT’s gross profit increased 12.7% to $102.2 million. The gross margin expanded 320 basis points to 33.1%.
IDT’s Operating Expenses Analysis
Selling, general and administrative expenses increased 5.8% year over year to $69.5 million. Technology and development expenses increased 3.8% year over year to $12.6 million.
IDT’s Profitability
Operating profit totaled $20.1 million, reflecting a 68.4% uptick from the year-ago quarter.
IDT’s adjusted EBITDA in the reported quarter was $25.2 million, up 39.5% from the year-ago quarter’s $18.1 million.
In the fiscal fourth quarter, net income attributable to IDT was $36.8 million, up 362% from $8 million in the prior-year quarter. This included the positive impact of an income tax benefit of $23.6 million in the fiscal fourth quarter.
IDT’s Liquidity & Debt Management
IDT exited fiscal 2024 with cash and cash equivalents of $164.6 million compared with $103.6 million at fiscal 2023-end.
The company had no outstanding debt at fiscal 2024-end.
Cumulative net cash provided by operating activities at the end of fiscal 2024 was $78.2 million compared with $54.1 million a year ago.
Our Take
IDT exited the fourth quarter of fiscal 2024 with encouraging top-line and bottom-line results. Robust performances by the majority of its segments were impressive. The continued strength in BOSS Money Transactions is also promising. The expansion of gross margin bodes well.
Within the NRS segment, IDT continued to expand its customer base in the large independent retailer market, while net2phone is also steadily building its customer base. This raises our optimism about the stock.
However, the decline in IDT’s Traditional Communications segment’s revenues was disappointing.
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IDT Corporation (IDT) : Free Stock Analysis Report
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