The chart below shows how IDT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, IDT sees a +0.36% change in stock price 10 days leading up to the earnings, and a +5.21% change 10 days following the report. On the earnings day itself, the stock moves by -0.27%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Record Gross Profit Achievement: IDT delivered strong financial results in Q1 of fiscal 2025, achieving record levels of gross profit and gross profit margin.
Consistent Revenue Growth: Consolidated revenue increased sequentially for three consecutive quarters, indicating consistent growth.
Segment Revenue Growth: NRS and Fintech segments reported robust increases in revenue, gross profit, and adjusted EBITDA.
Subscription Revenue Increase: NRS achieved a 13% increase in subscription revenue, driven by over 400,000 seats served despite negative FX impacts.
Subscription Revenue Growth: Net2Phone's subscription revenue growth was 13% for Q1, with a strong focus on improving product offerings and customer engagement.
Negative
Declining Consolidated Revenue: Consolidated revenue has now decreased sequentially for three consecutive quarters.
Revenue Decline, Income Growth: The year-over-year revenue decrease was 4%, while income from operations increased by only 2%.
Currency Depreciation Impact: The Brazilian Real is down about 14%, and the Mexican Peso is down about 11%, impacting the business significantly.
Exchange Rate Impact: The exchange rates are not helping net2phone right now, affecting revenue growth.
Seasonal Sales Decline: The terminal sales were lower, indicating a seasonal churn in the NRS segment.
IDT Corporation (IDT) Q1 2025 Earnings Call Transcript
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