IDT (IDT) Q4 2024 earnings summary

Executive summary

• Achieved record Adjusted EBITDA in Q4 and FY24, with strong performances from NRS, BOSS Money, and net2phone, while traditional telecom segments generated solid cash flow.

• Fourth quarter revenue grew 2% YoY to $308.8 million, with NRS (+42%), BOSS Money (+41%), and net2phone (+15%) leading growth.

• Net income rose 362% in 4Q24 to $36.8 million, aided by a $23.6 million income tax benefit; full-year net income increased 59% to $64.5 million.

• All major growth segments—NRS, BOSS Money, and net2phone—are profitable and positioned for continued expansion in fiscal 2025.

• Management remains focused on maximizing cash generation, reinvesting in growth, and returning value to shareholders through investments, share buybacks, and dividends.

Financial highlights

• BOSS Money surpassed $100 million in revenue and achieved over $4 million in positive EBITDA for the first time, with transaction and revenue growth exceeding 40% YoY in Q4.

• NRS delivered record $25 million in EBITDA for the year, with recurring revenue up 36% to $96.9 million and expectations for 30% EBITDA growth in the coming year.

• net2phone added approximately 12,000 net new seats in Q4, subscription revenue rose 17% YoY to $78.4 million, and Adjusted EBITDA margin doubled YoY.

• Fiscal 2024 ended with record $90 million in consolidated EBITDA, with Q4 EBITDA at $25 million—the highest in company history.

• Gross profit and margin reached record levels in FY24, with gross margin up 360 bps to 32.4%.

Outlook and guidance

• Fiscal 2025 is expected to see a slight increase in consolidated revenue as growth businesses outpace declines in traditional segments.

• Management anticipates surpassing $100 million in consolidated EBITDA for fiscal 2025, with all business units EBITDA positive.

• BOSS Money is projected to deliver over $10 million in EBITDA in 2025, more than doubling 2024 results.

• NRS aims to deploy 6,000 new POS terminals in 2025, maintaining 24–25% net margins.

• Continued expansion and investment in NRS, BOSS Money, and net2phone, all of which are profitable and have significant growth runways.