IDT’s Q4 Earnings Highlights
IDT Corporation (IDT) reported adjusted earnings per share (EPS) of 57 cents in Q4 2024, a 58.3% increase year over year. GAAP EPS for the same quarter stood at $1.45, reflecting a substantial surge of 367.7% from the previous year’s figure. Full-year adjusted EPS for fiscal 2024 was $1.95, showing a modest 4.8% uptick from the prior fiscal year.
IDT’s Revenue Overview
In the fiscal fourth quarter, IDT recorded revenues of $308.8 million, a 1.7% increase from the same period last year. Growth was primarily driven by robust performances from National Retail Solutions (NRS), BOSS Money, net2phone, and IDT Digital Payments. However, full-year fiscal 2024 revenues experienced a slight decrease, totaling $1.21 billion, down by 2.7% from the comparable period in 2023. The stock closed with a nearly 0.9% gain yesterday.
IDT’s Business Segments Breakdown
IDT operates through four business segments – NRS, net2phone, Fintech, and Traditional Communications. NRS reported Q4 revenues of $28.2 million, a 42% increase year over year. In the same period, net2phone saw revenues of $21.4 million, up 11%, while the Fintech segment generated $34.6 million in revenues, marking a 41% growth. On the other hand, the Traditional Communications segment’s revenues declined by 6% to $224.6 million.
IDT’s Financial Performance and Outlook
In Q4, IDT’s gross profit rose by 12.7% to $102.2 million, with the gross margin expanding to 33.1%. Operating profit also saw a significant 68.4% increase compared to the previous year. Additionally, the company’s adjusted EBITDA climbed by 39.5% year over year to $25.2 million. Net income attributable to IDT in Q4 was $36.8 million, soaring 362% from the same period in the prior year.
IDT’s Financial Position and Conclusion
As of the end of fiscal 2024, IDT held $164.6 million in cash and cash equivalents and had no outstanding debt. The company generated $78.2 million in cumulative net cash provided by operating activities, compared to $54.1 million in the previous year. IDT’s strong fourth-quarter results, particularly in key segments like BOSS Money Transactions, have left a positive impression, despite the decline in Traditional Communications revenues.
