IDT (IDT) 2024 Southwest IDEAS Conference summary

Company overview and strategy

• Operates six businesses across communications and fintech, with a global presence and 1,815 employees on six continents.

• History of incubating and spinning off businesses, with five public company spinoffs to date.

• Generated over $1.2 billion in revenue and $90 million in EBITDA in fiscal 2024, maintaining a strong balance sheet with nearly $200 million in cash and no debt.

High-growth, high-margin businesses

• National Retail Solutions (NRS) is the largest POS platform for independent retailers, with 32,100 terminals in 27,800 stores, representing 14% market penetration and 25% terminal growth in fiscal 2024.

• NRS recurring revenues are driven by payment processing, advertising/data, and SaaS fees, with gross profit margins approaching 100% on $100 million revenue.

• NRS recurring revenue per terminal rose 13% year-over-year to $285/month, and SaaS fees revenue grew 39% in fiscal 2024.

• NRS generated $25 million in adjusted EBITDA (24% margin) in fiscal 2024, with a Rule of 40 score of 56%.

• BOSS Money, the international remittance service, saw transaction volumes and revenue increase 41% year-over-year, reaching a $125 million annualized run rate and turning EBITDA positive with $4 million in fiscal 2024.

• BOSS Money expects adjusted EBITDA to exceed $10 million in fiscal 2025, with fintech segment gross profit margins at 55%.

• net2phone, the cloud communications business, grew seats served by 13% and subscription revenue by 15% in Q4, with adjusted EBITDA margin more than doubling to 11%.

• net2phone focuses on mid- and small-enterprise markets, especially in Latin America, leveraging channel partners and localized offerings.

Traditional communications segment

• Traditional segment includes IDT Digital Payments, BOSS Revolution calling, and IDT Global, producing 75% of consolidated revenue and $66 million in adjusted EBITDA in fiscal 2024.

• Legacy businesses are experiencing double-digit revenue declines but remain strong cash generators.