Upon the release of IDT Corporation’s fourth-quarter results for fiscal year 2024, market dynamics reveled in a surge, with adjusted earnings per share (EPS) leaping by a staggering 58.3% year over year to 57 cents. In comparison, GAAP EPS skyrocketed to $1.45, marking a whopping 367.7% increase from the same period last year.
For the entirety of fiscal year 2024, adjusted EPS settled at $1.95, showcasing a modest 4.8% augmentation from the preceding fiscal year’s analogous period.
IDT’s Revenue Surge
Amidst the financial triumph, IDT recorded a revenue upswing to $308.8 million in the fourth fiscal quarter, demonstrating a 1.7% climb on a year-over-year basis. Driving this achievement were impressive performances from National Retail Solutions (NRS), BOSS Money, net2phone, and IDT Digital Payments.
The grand annual financial stage was set at $1.21 billion, notwithstanding a slight decline of 2.7% from the corresponding period a year prior. Following these notable achievements, the company’s shares experienced a modest uptick, closing at nearly 0.9% during the latest trading session.
Exploring IDT’s Business Segments
Structured across four primary business segments — NRS, net2phone, Fintech, and Traditional Communications — IDT’s operational essence painted a compelling picture in the latest quarter. Within the NRS domain, revenues soared to $28.2 million, marking a substantial 42% increase compared to the same period a year earlier.
Notably, net2phone reported revenues of $21.4 million, reflecting a commendable 11% growth in a year-over-year comparison. The Fintech segment outshined, boasting revenues of $34.6 million, a remarkable 41% spike from the prior year.
Nevertheless, the Traditional Communications segment reported slightly disappointing numbers with revenues declining by 6% year over year, contrasting with the favorable trends witnessed in other core segments.
Unveiling IDT’s Gross Margin Expansion
Reflecting a robust financial canvas, IDT’s gross profit soared by 12.7%, reaching $102.2 million in the latest quarter. Noteworthy, the gross margin expanded by a commendable 320 basis points to 33.1%, underscoring the company’s financial fortitude amidst market fluctuations.
Decoding IDT’s Financial Performance
Against a backdrop of heightened financial activity, selling, general, and administrative expenses saw a 5.8% uptick to $69.5 million, while technology and development expenses showed a modest 3.8% increase year over year, reaching $12.6 million during the quarter under review.
Assessing IDT’s Overall Outlook
Concluding its fiscal journey for 2024, IDT reported an operating profit of $20.1 million, translating to a remarkable 68.4% jump from the previous year. Additionally, adjusted EBITDA surged to $25.2 million in the latest quarter, exhibiting a resilient 39.5% increment from the same period last year.
Furthermore, net income attributable to IDT for the fiscal fourth quarter reached $36.8 million, a significant 362% improvement from the previous year, partly attributable to a favorable income tax benefit of $23.6 million in the quarter.
Delving into IDT’s Financial Health
As fiscal year 2024 concluded, IDT boasted cash and cash equivalents amounting to $164.6 million, compared to $103.6 million in the previous fiscal period. Impressively, the company cleared all outstanding debts as it stepped into the new financial era.
Cumulative net cash provided by operating activities stood at $78.2 million by fiscal year-end, contrasting positively with the $54.1 million recorded a year earlier, setting a solid foundation for future financial exploits.
Final Thoughts
IDT’s financial prowess in the fourth quarter of fiscal year 2024 paints a promising narrative for investors. With strong performances across key segments, notably in areas like BOSS Money Transactions, the company’s gross margin expansion signifies a robust financial future.
Expansion in customer bases for NRS and net2phone further strengthens investor confidence in IDT’s trajectory. While the decline in the Traditional Communications segment’s revenues raises some concerns, the overall financial landscape remains promising.
