Good evening, and welcome to the IDT Corporation's Fourth Quarter and Full Fiscal Year 2021 Earnings Call. In today's presentation, IDT's management will discuss IDT's financial and operational results for the three and 12-month periods ended July 31st, 2021. During remarks by IDT's Chief Executive Officer, Shmuel Jonas, all participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After the prepared remarks, Marcelo Fischer, IDT's Chief Financial Officer, will join Mr. Jonas for a Q&A. Any forward-looking statements made during this conference call, either in the prepared remarks or in the Q&A session, whether general or specific in nature, are subjected to risks and uncertainties that may cause actual results to differ materially from those which the company anticipates. These risks and uncertainties include, but are not limited to, specific risks and uncertainties discussed in the reports that IDT files periodically with the SEC. IDT assumes no obligation either to update any forward-looking statements that they have made or may make, or to update the factors that may cause actual results to differ materially from those that they forecast. In their presentation or in the Q&A session, IDT's management may make reference to the non-GAAP measures, including Adjusted EBITDA, Adjusted EBITDA less CapEx, non-GAAP net income, and non-GAAP earnings per share. A schedule provided in the IDT earnings release reconciles Adjusted EBITDA, Adjusted EBITDA less CapEx, non-GAAP net income, and non-GAAP earnings per share to the nearest corresponding GAAP measures. Please note that the IDT earnings release is available on the Investor Relations page of the IDT Corporation website. The earnings release has also been filed on a Form 8-K with the SEC. I will now turn the conference over to Mr. Jonas. Thank you, operator. Welcome to IDT's Fourth Quarter and Full Fiscal Year 2021 Earnings Call, covering results for the three and 12 months ended July 31st, 2021. I'm joined today on the call by Marcelo Fischer, IDT's Chief Financial Officer, and we'll both be available to answer questions after my remarks. My discussion today focus on the fourth quarter fiscal 2021 results. For a more detailed report and discussion on our financial and operational results for both Q4 and the full fiscal year 2021, please read our earnings release filed earlier today and our Form 10-K. We expect to file the 10-K with the SEC on or about October 14th. We continue to drive strong improvement in IDT's results during the fourth quarter, powered by growth at net2phone, NRS, our mobile top-up business. Let's focus first on net2phone. Net2phone subscription revenue growth accelerated in the fourth quarter, increasing 46% year-over-year. Growth in our Latin American, U.S., and Canadian markets was again very strong. Our subscription revenue margin remained robust, increasing 10 basis points to 83.5%. net2phone's strategic focus on mid-size businesses, our multi-channel go-to-market strategies, and deeply localized in-country offerings consistently generate gross margins and revenue growth metrics above UCaaS industry averages. Really, the exceptional results at net2phone are the collective efforts of the focused, customer-centric group of people around the globe that is net2phone. Customers at net2phone don't hear no very often. If they want or need something to help them better communicate, we find a solution for them. net2phone is becoming a big company, we are not becoming the kind of big company that has different departments for large enterprises and a different department for small companies. We don't have SLAs that differ depending on what you pay us. At net2phone, no matter whether you're running a large global enterprise from Texas or a five-person startup in Brazil, you are going to get a truly localized, custom-tailored communication solution with outstanding service and reliability. Of course, we continue to work on the spin-up of net2phone. We believe the financial and legal preparations will be substantially completed by calendar year-end to enable a tax-free spin-off early in 2022 should our board authorize it. Within our FinTech segment, NRS revenue increased by 76% year-over-year, led by increased sales of merchant services and specifically NRS PAY payment processing. Advertising and data sales at NRS were also robust in the fourth quarter. At July 31st, NRS had over 14,000 active terminals and over 5,600 payment processing accounts, more than double the number of accounts a year earlier. Average revenue per terminal exclusive of terminal sales increased from $126 in the year ago quarter to $169 in the fourth quarter of 2021. We believe that ARPU will continue to climb with the addition of new NRS PAY accounts, increased utilization of our enormously powerful advertising network, and further utilization of data offerings by our consumer package goods partners, just to name a few. Also within our FinTech segment, money transfer revenue decreased 49% compared to the year ago quarter. As we have discussed previously, a transitory foreign exchange market condition materially boosted revenue and gross profit in the fourth quarter of fiscal 2020 and persisted through the second quarter of fiscal 2021. Absent that impact, fourth quarter fiscal 2021 revenue would have increased by 36% compared to the year ago quarter. Sequentially, money transfer revenue increased by over 6%. Finally, turning to our largest segment, Traditional communications continued to exceed our expectations. Traditional communications revenue in the fourth quarter increased 10% year-over-year. Within Traditional communications, Mobile top-up revenue increased by 41%, powered by increases in sales in its B2B channel. We expect that our efforts over the past year to expand our Mobile top-up business into the African market, led by the recent acquisition of a majority stake in a Mobile top-up operator with an extensive footprint in Africa, our increased focus in the B2B space, as well as the growing demand for data-heavy services worldwide, will continue to drive Mobile top-up revenue growth. Fourth quarter earnings per diluted share increased to $1.46 from $0.82 in the fourth quarter last year. The increase reflects the positive impact of an income tax valuation allowance reversal, in addition to the strong improvements in the underlying profitability of several of our business units. Cash generation during the quarter helped to drive an increase in cash and current investments of $34 million during the quarter and $52 million during the fiscal year to $161 million as of July 31st, and we have no debt. Following the quarter close, our NRS business sold a 2.5% stake to a private investment fund for $10 million, implying a $400 million valuation for that business. That was based on approximately 19 times NRS's trailing 12-month revenue at the end of our third quarter. I want to wrap up by thanking and congratulating everyone in our organization on what was, by any standard, a remarkable ending to a very strong fiscal year. We have not only endured COVID's multifaceted challenges, but over the past several quarters, we have dealt, like many other companies across the country and across the globe, with supply chain issues that impacted our inventories of phones, POS terminals, and other hardware. Throughout, we have maintained our focus in succeeding and executing on our key objectives. Now, Marcelo and I will be happy to take your questions. We will now begin the question and answer session. Okay, the first question is coming from Connor Haley from Alta Fox Capital. Your line is live. Hi, guys. Congrats on the great quarter. Just one quick one from me. Your international mobile top-up business had another quarter of very impressive growth. We noticed that a private equity firm recently bought a majority stake in a mobile top-up business called Ding, valuing it at $300 million, according to press reports. Can you maybe explain to investors how your international mobile top-up business compares to Ding, and h ow you think about the growth opportunity for your IMTU business going forward? Thanks. Hey, Connor. Thank you for joining our call today. You are right. We also read about a month ago that Ding received a valuation of about $300 million on a transaction that they did. I mean, Ding is a private company, Irish company, we don't know any of the details in terms of transaction. We do welcome seeing the valuation that they got, given that we consider them to be a pretty good comparable to our business. Business-wise, both Ding and ourselves compete in the same space. We really believe that we measure up to Ding quite well, both in terms of size and performance. While we are very strong in the U.S. on mobile top-up offerings, and not too strong outside of the U.S., Ding is the opposite. They have a very small presence in the U.S. They are very strong outside of the U.S. Their sales presence is just online. We at IDT have a very robust presence both online and in the retail channels in the U.S., where our mobile top-up is part of our broader BOSS Revolution suite of products. I think they are probably a little larger than us on the wholesale B2B channel, but that has been a channel that we have grown quite substantially in the last six months, and we are very focused in growing that channel as well. That's kind of how we compare a little bit ourselves to Ding. In terms of where our mobile top-up business is heading, we are doing now north of $500 million in sales for mobile top-up, but we really believe there is still significant growth opportunities for us in growing that business. For example, if you think about from a market perspective, as I said earlier, we are generating all of our sales mostly out of the U.S., there is significant potential for us to expand to other markets like in Canada, Europe, Asia, Africa, the Caribbean. As Shmuel mentioned in his remarks, we recently acquired a mobile top-up operator. They have extensive footprint in Africa, we are going to take advantage of that to expand our services and participate in that massive opportunity that Africa represents. Look at the opportunity of acquiring that company to continue to grow beyond our retail channel in the U.S., into B2B channel. We are putting a lot of investment on our platform to provide those B2B services. Finally, I would say the following. I think Ding was primarily a mobile top-up operator, so are we today. We view this business to be much more broader than just mobile top-ups. We think of ourselves as a company which is facilitating all kinds of prepaid payments across the world. Not only do we have an active catalog right now of thousands of mobile top-ups, but we also have grown our offering to include now gift vouchers and data packages and content subscriptions. We really want to become a global hub for all things that are prepaid or digital prepaid. Again, we welcome the fact that investors are assigning evaluations now into companies playing this space. I think Marcelo said enough. I don't really need to add much to what he already said. I guess, the only bad part I can see is it's always better when your competitors have less money than when they have more money. I think Marcelo hit on this, but I think that really what differentiates us more than anything is we really are the only company of our kind that really competes in every vertical of mobile top-up, both from being a wholesaler to being retail to being direct-to-consumer. I think that that's really another feature that makes us unique, is we're not a one-trick pony. Wherever you need it, we are. Again, there's more to come. We'll expand on that in further quarters. Yeah. I would just add one more thing, Connor. As you know, we have been in the telecom space for now almost three decades. Because of that, we have been able to establish very strong, robust direct connections with most of the leading mobile operators globally. Therefore, today, about more than 90% of our sales volumes in mobile top-up comes from those direct connections— those direct deals we have with one another. We use very little in terms of aggregators in this space. That, I believe, definitely gives us a significant edge in our cost structure and margins for this business. Thanks, guys. Okay, the next question is coming from Hassan El-Ouazzani from EH Research. Your line is live. Hey, guys. Just a quick question on the BOSS Revolution money transfer business. How do you think about comps like Transfer Wise, RTGS.global, who all are talking about losing their bits off their take rates, international money transfer fees going to 0%? Are you seeing some of that in BOSS Revolution? If so, are you just running that as a loss leader for the mobile top-up? Or how do you think that's impacting BOSS Revolution on a bigger scale outside of just money transfer? I definitely don't see the headwinds that you're referring to. I haven't, to be honest, heard them remark that. I will say that I think that over time, the way people make money on money transfer will change. I think that more of it is going to be made on the spend of the money that's sent rather than the fee that's paid or the FX margin that's made, like you have today. We intend on being in that space to make money in-country, I'll call it, rather than just on the send side. You'll see the beginnings of our foray into that with our own neo-banking products here, which we intend to also launch outside of the U.S., including some other things that I don't really feel like I can talk about that much yet. I don't view it as a gateway to IMTU at all. I view it as a business onto its own that's going to be substantial. It happens to be that a lot of the same customers do also buy IMTU. I will agree with that. Okay, thanks. Maybe one more quick one. A couple of quarters ago, you guys mentioned working on a lot of businesses in the background. I guess we kind of just heard a little bit about some of the neo banking that you've got going on. Are these mostly in that same kind of end markets, banking, payments, telecom stuff that you guys are working on? Can you maybe give some more color on some of the, maybe not specifically businesses, but just end markets in general that you're working on, but the businesses you're working on in the background? Again, I would say that most of the things that we're working on in the background are somewhat related to things we already do: communications, payments, FinTech in general. Again, I could go on and on for hours about it. Yes, the very simple answer is most of them are related to payments and communication, both on the consumer side as well as on the business side. Awesome. Thank you. Okay, the next question is coming from Matthew Orvanek from Lisa. Your line is live. Hey, guys. My question is kind of pertaining to how IDT looks like a business that has a lot of exposure to various components or segments of the telecommunication space. How do you see these company segments growing, given their lack of individual scale and ability to differentiate their product or service? I don't know. Again, I think we continue to scale every one of our businesses. I'm not sure where that question comes from, but maybe you want to elaborate? Sure. You have kind of four main business segments. I think, you're not the largest competitor within those segments. How do you see your products specifically or services growing, given that lack of scale? Well, again, I like to believe that the real thing that makes IDT better than everyone else, in my opinion, is grit. We're scrappier. We work harder. We fight harder than, I'm not going to say every competitor that we got, we have some great competitors in lots of businesses. There are some great products out there that aren't our products. That being said, I think that we really try harder. Both for in the service that we give to our retailers and the products we give to our consumers, we focus on the details. We really try to give all of our customers a great experience with us. I think that that's what has helped us achieve continued growth in all of the different segments that we're in. Yes, we're not the biggest UCaaS player. You try to get the biggest UCaaS player engineering department on the phone when you have an issue, and you're a nine-person law office in Brazil. I can pretty much guarantee you're going to wait on the phone for about nine hours. They're going to hang up on you. We service our customers day in, day out. Our tickets that get opened, get closed. That's really what differentiates us, is our customer focus. Yeah. If I could just add to that, right? In all the businesses that we have chosen, we have chosen to compete in very unique niche categories, looking for opportunities in each one of those segments. For example, in the case of NRS, we really are dominating the bodega independent retailer market. We have huge distribution into that space, and are becoming the primary provider of POS systems and leveraging everything we can out of that network. Similarly, in the case of net2phone, we have chosen to compete primarily with small, medium-sized SMB business, with that multi-channel offering, choosing the right geographies, where we see above-average growth and opportunities, which differentiates us a lot with some of the larger number one, number two players in each one of these categories. Our goal is not necessarily to be the one, number two player, but to be the best player in the categories and in which markets that we choose. When you think about our international long-distance voice businesses being with the carrier, I think that we are probably the best operator on the international long-distance managed business, and no other company draws more economics and better economics out of our minutes of use than we do. Awesome. Second question here. You appear to have made several new hires in the sales space as of late. Could you just kind of walk us through your thought process behind that and how you see that accelerating growth? Hiring more salespeople means you're going to have more sales. I think that it's really very simple. If we're getting good economics, or good returns on the investment, we invest more. It's really that simple. Awesome. Thank you. Again, if you have a question, please press star, then one. Your next question is coming from David Polansky from Immersion. David, your line is live. Hey, guys. Thanks for taking my question. I want to talk about NRS. I'm really impressed with that business. Particularly the monthly average revenue per terminal expansion from $131 to $169 a month. That's 29% in just one quarter. I guess at a high level, can you talk about the drivers for continued growth in that number? Do you think that you can continue that performance? Probably not indefinitely. Yes, I do think that we can continue that performance. On the merchant processing side of the business, we don't have anywhere near the penetration that we believe that we can get to. On the advertising side, I don't believe we have even scratched the surface of where we can get to. On data, the same. Again, we just started lending money to stores this past quarter. I know it's crazy to talk about it like it's completely nascent, but it's really completely nascent. We're going to show remarkable growth in NRS that I think everyone will be very happy with. In terms of the amount we get per store, again, I think as we do a better job of signing up stores for more services and more products when we acquire them at first, probably over time, the number will somewhat stabilize. We believe there's lots of areas that we can add revenue from, everything from selling them curated lists of products, which we just started doing, to managing their delivery services for them, which we'll be rolling out over the next couple of months. Each one of these services are things that our stores need to compete and that we can make money on. Yes, we're driving a lot of incremental revenue for us, but we're driving way more incremental revenue for them from the products and services that we're bringing to them. Yeah. As a benefit to our investors, as we have noticed, this is the first earnings release that we have started to include a breakdown of the NRS different revenue streams, now the advertising and data, the SaaS fees, the merchant services. We hope that by giving that visibility to investors, you could see the potential for growth from those revenue streams and how they will have significantly to leverage our existing POS network. Yeah, that's great. I'm sure everyone really appreciates the disclosure. It's highlighting what is going to be one day a super valuable asset. I guess if you could just highlight a little. This is my last question. Sure. Could you talk a little bit about the data opportunities, so the data that you're selling? I feel like when I talk to other investors, they don't really understand just how lucrative that could be. Could you talk, I guess, at a high level, just on the data opportunity, specifically within NRS? At a very high level, again, it's been a year or two since I've had to pitch it to a company on my own. I think the people that are there do it really well. I would say, if you're Procter & Gamble, you really want to know what Unilever is doing in the same stores that you are. You want to know how the products that are in each of your categories is doing compared to them. You want to know if the companies that you hire to make sure that the products are on the shelves are actually putting those products on the shelves. You want to know how many are moving when you lower the price or when you offer incentives. There's literally 100 different data points on, I'm going to say, on any product category that's important to a consumer packaged goods company to figure out what their next move should be. Frankly, the independent convenience store market has been a complete black hole to them. We really are the first company that has ever come in and been able to give them a real understanding of what's happening in that market, the good, the bad, and the ugly. We think that over time, that data is only going to become significantly more valuable. As we grow our network and go into larger stores and larger chains, it becomes even more valuable. It's kind of a self-fulfilling prophecy just based on the way the business is growing. You're able to sell data to individual CPG companies, not just the third-party data aggregators. There's a lot of potential customers here. That's correct. When you're buying the data from a third-party aggregator, who today are probably our largest source of revenue, you're getting much, much more wide spectrum, like a shotgun approach to the data, I'll call it. As opposed to when you're buying it tailored to you're getting the data in exactly the way that you want and the reports that you want to see. It's a completely different product. One gives you general information, one gives you the absolute most minute amount of information you would want to be, like, how are the stores in the southern half of the city doing versus the western half of the city, versus our two ZIP codes right next to each other? You can really scrub it any way you want. You're operating in, basically, like you said, like a black box, so this is really valuable data that nobody else has aggregated. This is interesting. Yeah. Super. People want this. 100%. This is the type of data that, you know, that a Walmart can offer a CPG. But again, its only, you know, they sell stuff for a fixed price. They don't have the ability to see if you price it at $1 less, or if you give an incentive $1 more, or if you put it on promotion in this area and not in this area, what will happen. There's also some, I'll say, test and learn that they're able to do in our markets that they're not able to do even in bigger chains. I think that they're using that to really drive their business in other areas besides our own area. That's great. I guess what I kind of meant by that was in terms of markets like the bodega communities. Nobody else has eyeballs in that market. That's what I was asking. I'm sure there's somebody else that has some eyeballs in bodegas, but there is no one that has anywhere near the amount of data and the granularity and the systems to process it that we do. Awesome. All right. Thanks, guys. I'll hand it over. Okay, we have a follow-up from Hassan El-Ouazzani from EH Research. Hassan, your line is live. Hey, guys. Just wanted to hop back in line and follow up on something David asked about. You mentioned when you're deploying these NRS terminals, the stores are actually seeing their own revenues get a little bit of an uplift. Can you just, A, explain really how that's working, and then, B, if you have any idea, direction on what the magnitude of that revenue uplift for the stores that you're deploying these terminals in? Again, on the magnitude, we don't break it out, and frankly speaking, it varies a lot from retailer to retailer. We have retailers that have seen 80%-100% increases in their business after deploying our system. We really give them the management tools to see how their business is doing, to see what their gross profit is on items, what their out-of-stock levels are, which are the top 50 items in their area that they're not carrying, et cetera. Again, like any tool, the tool is only as good as the person who is using it. You could have an iPhone, and use it only to make phone calls, and then you might as well have a flip phone. On the other hand, you can probably do everything from your iPhone that you can do from your desktop computer, which makes it a really powerful tool. I think that it really obviously depends on the retailer, how much of a benefit they're going to see from it. Almost all retailers are seeing a benefit from it, both from the fact that our merchant processing is very low fee, very simple, and it makes people use their credit card more than they had been before. That in and of itself drives sales. The advertising in stores for products that they're selling in those stores drives sales for those products. The fact that we give them the data tools themselves to see how they're doing in each of these categories lets them figure out what they should be doing in their business to drive sales. We tell them which are their busiest hours. Maybe they're opening an hour earlier than they need to be or closing an hour earlier than they should. Those types of decisions really let them make more intelligent choices for their business. Awesome. That makes a lot of sense. That's interesting. It's like a little business intelligence tool wrapped into a payment system. I'm not sure if I missed this in some of your filings, but could you just directionally walk us through the economics of deploying a single terminal, just thinking about cost to deploy. I imagine coming in at the top line, because you've got data, you've got the payments processing fees, it gets a little bit messy, but if you could just directionally guide us on how you guys think about the per terminal returns as you start to deploy these in more stores. Well, I think that we sort of got a similar question earlier. We broke up the ARPU per terminal this quarter. Again, as I said, I believe that we are going to continue to see good improvement on that ARPU for a significant period of time. As I said, I don't think it expands at the same rate that we've been doing it forever. I wish I could do that, but I don't think that's reality. That being said, as I said, I think the penetration in stores of all of our services is still very low. You're going to see massive improvement from just better penetration in general. Again, we are adding lots and lots of features. Essentially NRS, to a degree, it's one business, but it's also many different businesses all in one. The funding is one business all unto itself. The data is one business unto itself. The payments is one business unto itself. The software is one business unto itself. The delivery and e-commerce is a business unto itself. The core of that product is the POS and the great user experience and the great service and price, frankly speaking, that we give our customers for this product. You can get a POS that probably does some of the things that we do. It's just going to cost you probably 8 to 10 times as much upfront and probably 20 to 30 times as much on a monthly basis. SAP and any major company sells fancier equivalents. For an independent store, this is really an amazing deal besides everything else. Awesome. Just one more quick one before I'll maybe hop back in line again. It sounds like you're using the POS almost like a land and expand thing with your customers. How successful are you finding that? Are many of the customers coming just for the terminal and then over a few months, a year, you're starting to monetize them through some of the other services? It's more like you have the ability to do that, and it's only now starting to catch on? It's both. I think that, A, things always take time till they improve to a point where the ball really starts rolling quickly. By the same token, there's also a lot of new products that we've barely introduced already, and you're not going to see those in our results for two quarters, but they're going to be huge. Okay, awesome. Thanks, guys. Okay, we have a question coming from Shikal Karim, Private Investor. Shikal, your line is live. Hello? Yeah. You're here, we hear you. Do you hear us? Yeah. I had a question about the monthly average revenue per terminal. Could you talk about the difference between the average revenue for NRS Pay and then just a regular terminal? We don't break it out specifically. Again, the price that we charge for our terminal and the price we charge for our service, as well as our merchant processing, is all very, very simple and easy to find. Go to nrsplus.com, and the pricing is right there. Okay. Then I have another question about just the penetration of NRS Pay, because it seems that you have 900 more terminals for this quarter and 900 new NRS Pay terminal. Are the new terminals from NRS Pay, or is it like a mix of the two? I'm not 100% sure I understand your question. About two-thirds of the new terminals are taking NRS PAY. Yeah, that was my question. Yeah. Okay, got that. Thank you. This concludes our question and answer session and conference call. Thank you for attending today's presentation. You may now disconnect.