Idt Corp (NYSE: IDT)

IDT Corporation is a diversified provider of telecommunications and financial technology solutions that operates across North America and internationally.

The company generates revenue from multiple streams. In the NRS segment it earns from the sale and subscription of point of sale equipment and store management software, from payment processing fees, and from digital out of home advertising and transaction data services. The Fintech segment derives revenue from money transfer fees collected by BOSS Money, from banking services offered by IDT Financial Services Limited, from electronic money services provided by IDT Services Limited, and from fees for processing disbursement payments through its variable interest entity. The net2phone segment generates income from subscription fees for unified communications as a service, contact center as a service, AI powered interaction tools and Coach performance optimization, as well as usage based charges for certain offerings. The Traditional Communications segment receives revenue from airtime and messaging transfers via IDT Digital Payments, from long distance calling fees through BOSS Revolution, and from wholesale voice and SMS termination services supplied by IDT Global. NRS contributed roughly 12% of total revenue, Fintech about 13%, net2phone around 7%, and Traditional Communications the remaining approximately 68%.

The company operates through the following segments:

• NRS: Provides point of sale equipment, store management software, electronic payment processing, and ancillary merchant services to independent retailers in the United States and Canada, and offers digital out of home advertising and transaction data to marketers.

• Fintech: Includes BOSS Money for international money remittance, a variable interest entity that processes disbursement payments, IDT Financial Services Limited as a Gibraltar based bank, and IDT Services Limited as a Malta based electronic money institution.

• net2phone: Delivers unified communications as a service, contact center as a service, AI powered interaction tools, and Coach performance optimization, all priced on a per seat or usage basis.

• Traditional Communications: Comprises IDT Digital Payments for airtime and messaging transfers, BOSS Revolution as an international long distance calling service for immigrant communities, and IDT Global as a wholesale provider of international voice and SMS termination and traffic management.

IDT Corporation operates in competitive markets where it encounters other point of sale providers, money transfer operators, cloud communications vendors, and wholesale telecom carriers. The company distinguishes itself by integrating point of sale, fintech, cloud communications and traditional telecom services within a single corporate structure, allowing cross selling opportunities and shared technology infrastructure. Its proprietary platforms for payment processing, remittance and unified communications give it a cost advantage and enable rapid introduction of new features. The breadth of its portfolio also helps mitigate reliance on any single line of business.

The company serves independent retailers and marketers in the United States and Canada through its NRS segment, immigrant communities and individuals sending money abroad via BOSS Money, mid sized businesses seeking cloud communications solutions through its net2phone segment, and telecommunications carriers and enterprises requiring wholesale voice services through its IDT Global unit. Additionally, it provides banking and electronic money services to customers through IDT Financial Services Limited and IDT Services Limited, and processes disbursement payments for partners via its variable interest entity.