IDT Corporation Reports 2.3% Revenue Growth and 125.2% Increase in Net Income

IDT Corporation reported a revenue increase of 2.3% for the three months ended October 31, 2024, reaching $309.6 million compared to $301.2 million in the same period last year. The company’s net income attributable to IDT Corporation surged to $17.2 million, a 125.2% increase from $7.7 million in the prior year. This growth in profitability was driven by a combination of higher revenues and a reduction in direct costs, which fell to $201.9 million from $207.2 million, resulting in a gross profit of $107.6 million, up from $94.0 million.

The financial performance reflects significant changes in various business segments. The National Retail Solutions (NRS) segment saw revenues rise to $30.4 million from $24.0 million, driven by an increase in active point-of-sale terminals and payment processing accounts. The Fintech segment, which includes BOSS Money, reported a revenue increase of 39.6% to $37.1 million, attributed to higher transaction volumes. However, the Traditional Communications segment experienced a decline in revenues to $220.5 million from $230.7 million, primarily due to decreased usage in the BOSS Revolution service.

Operationally, IDT Corporation has made strategic advancements, including the expansion of its NRS POS network and enhancements in its Fintech offerings. The company reported an increase in active POS terminals to 33,100, up from 27,200, and payment processing accounts rose to 22,700 from 17,100. Additionally, the net2phone segment served 406 seats, an increase from 364, indicating a growing customer base in cloud communications.

The company’s cash position showed a decrease, with cash and cash equivalents at $148.0 million as of October 31, 2024, down from $164.6 million at the end of July 2024. IDT’s total assets increased slightly to $554.6 million from $550.1 million, while total liabilities decreased to $272.4 million from $283.5 million. The company continues to maintain a strong working capital position, with $161.9 million in current assets exceeding current liabilities.

Looking ahead, IDT Corporation anticipates continued growth driven by its strategic initiatives and market expansion. The company expects to leverage its existing cash flow and investments to support ongoing operational needs and potential acquisitions. Management remains optimistic about the future, citing a strong demand for its services across various segments and a commitment to enhancing customer engagement and satisfaction.