IDT 4분기 및 2026 회계연도 실적 발표 콘퍼런스 콜: EBITDA 성장 및 2027 회계연도 가이던스

핵심 요약

• IDT 코퍼레이션(IDT Corporation)의 4분기 매출은 전년 동기 대비 7% 증가했으며, 2026 회계연도 매출은 2025 회계연도의 2% 성장보다 가속화된 5% 증가를 기록했다.
• 2026 회계연도 조정 EBITDA는 17% 증가한 1억 5,460만 달러를 기록해 경영진이 상향 조정한 가이던스 범위인 1억 5,000만 달러~1억 5,200만 달러를 상회했다. 또한 분기 및 연간 기준 모두 역대 최고 매출총이익과 매출총이익률을 달성했다.
• NRS는 가맹점 서비스(Merchant Services) 및 광고·데이터 매출 성장에 힘입어 4분기 매출이 전년 동기 대비 31% 증가한 4,500만 달러를 기록했다. 조정 EBITDA는 47% 증가했으며 이익률은 31%를 나타냈다.
• 2026 회계연도 핀테크 부문 매출은 14% 증가한 1억 7,600만 달러, 조정 EBITDA는 41% 증가했다. 4분기 기준 보스머니(BOSS Money) 전체 거래의 88%가 디지털 채널에서 발생했다.
• 넷투폰(Net2phone)의 2026 회계연도 구독 매출은 10% 증가한 9,460만 달러, 조정 EBITDA는 33% 증가한 1,610만 달러를 기록했다. 경영진은 이번 분기 중 연간 반복 매출(ARR)이 1억 달러를 넘어설 것으로 예상된다고 밝혔다.
• 2027 회계연도에 대해 경영진은 연결 매출총이익 5억 4,500만 달러~5억 5,500만 달러, 조정 EBITDA 1억 7,600만 달러~1억 8,000만 달러를 전망하고 있다.

주요 재무 데이터

사업 및 영업 성과

NRS

NRS는 역대 최고 분기 실적을 기록했다. 4분기 가맹점 서비스 매출은 31% 증가한 2,850만 달러를 나타냈고, 광고 및 데이터 매출은 49% 증가한 1,000만 달러를 기록했다. 광고 및 데이터 매출의 성장은 최근 단행한 인수와 광고 활동 강화의 수혜를 입었다.

NRS의 '40의 법칙(Rule of 40)' 점수는 전년 동기 49점에서 60점으로 개선되었다. 영업이익은 1,200만 달러로 2배 이상 증가했으며, 이는 전년 동기 분기에 계상되었던 비반복적 법률 비용의 영향도 일부 반영되었다.

또한 4분기 수익성은 매출원가에 반영된 일회성 수입 관세 환급의 이점을 누렸다. 경영진은 92%의 연간 매출총이익률이 향후 성과를 더 잘 보여주는 지표라고 밝혔다.

회사는 배송 관련 서비스를 포함해 더 많은 NRS 서비스를 도입할 수 있는 거래량이 큰 소매업체를 우선순위에 두고 있다. 경영진은 또한 매장 입지 품질에 대한 초점을 유지하면서 매장 추가를 가속화하기 위해 영업 인력을 더 채용할 계획이다.

핀테크 및 보스머니

4분기 핀테크 부문 매출의 90%는 보스머니(BOSS Money)에서 발생했다. 고객당 건당 송금액이 늘어남에 따라 디지털 거래 건수는 20%, 디지털 매출은 22%, 디지털 송금액은 38% 각각 증가했다.

디지털 채널은 전체 보스머니 거래의 88%를 차지했다. 소매 대리점 채널 매출은 17% 감소했으나, 경영진은 소매에서 디지털로 이동한 고객이 더 수익성 높은 거래를 창출했다고 설명했다.

회사는 핀테크 부문의 이익률 확대를 디지털 비중 확대, 평균 송금액 증가, 지급 파트너와의 수수료 조건 개선 및 AI 기반 프로세스 자동화 덕분으로 돌렸다. 한편 IDT는 왓츠앱(WhatsApp)을 통한 송금 서비스를 출시하고 미국 내 디지털 지갑을 구축했다. 추가적인 추진 과제로는 보스머니 앱의 해외 출시, 충전식 직불카드가 포함된 스테이블코인 기반 지갑, 신용 점수 형성 기능이 있는 충전식 카드 등이 있다.

경영진은 미국-멕시코 송금 통로에서 보스머니의 점유율이 1년 전 2% 미만에서 3% 미만 수준으로 상승한 것으로 추정했다.

넷투폰

넷투폰(Net2phone)은 미국 내 7% 성장을 포함해 2026 회계연도를 전년 대비 6% 증가한 44만 7,000개의 가입자 수(seats)로 마감했다. 4분기 구독 매출은 10% 증가(고정환율 기준 7% 증가)했으며, CCaaS 매출은 24% 증가했다.

연간 영업이익은 84% 증가한 910만 달러를 기록했다. 지속적인 AI 역량 투자에도 불구하고 조정 EBITDA 이익률은 약 17%에 달했다.

경영진은 현재 거의 모든 잠재 고객과의 상담을 AI가 주도하고 있다고 밝혔다. IDT의 자체 운영 내에서는 전체 커뮤니케이션의 70% 이상이 전적으로 또는 최종 상담원 개입을 거치는 형태로 AI에 의해 처리되고 있다.

기존 통신 부문

기존 통신(Traditional Communications) 부문은 2년 연속 조정 EBITDA 성장을 달성했다. 2026 회계연도 매출총이익은 1억 6,300만 달러로 4% 감소했으나, 판관비(SG&A)가 6% 가까이 줄어들면서 조정 EBITDA는 1% 증가한 7,700만 달러를 기록했다.

IDT 디지털 페이먼츠(IDT Digital Payments)는 성장을 이어가며 IDT 글로벌 및 보스 레볼루션 콜링(BOSS Revolution Calling)의 실적 압박을 상쇄했다. 경영진은 디지털 유통, 구독 요금제 및 기타 고마진 상품을 통해 국제 전화 매출 감소가 실적에 미치는 영향을 완화할 수 있을 것으로 기대하고 있다.

경영진 가이던스

2027 회계연도에 대해 경영진은 다음과 같은 전망을 제시했다.

• 연결 매출총이익 5억 4,500만 달러~5억 5,500만 달러 (중간값 기준 약 11% 성장)
• 조정 EBITDA 1억 7,600만 달러~1억 8,000만 달러 (중간값 기준 약 15% 성장)
• 모든 영업 부문에서의 조정 EBITDA 기여도 확대
• NRS 매출 성장률 약 20%~25%, 조정 EBITDA는 매출보다 빠른 속도로 성장할 것으로 예상
• 규모의 경제, 영업 효율성 및 부문 내 소규모 사업의 기여에 힘입은 핀테크 EBITDA의 지속적인 성장
• 넷투폰의 경우 성장의 일부를 AI 개발 로드맵에 재투자함에 따라 계획된 완만한 수준의 EBITDA 증가
• 기존 통신 부문의 3년 연속 조정 EBITDA 성장

리스크 및 주시해야 할 영역

• NRS의 4분기 이익률은 일회성 관세 환급의 수혜를 입었으므로, 연간 매출총이익률이 실질적인 성과를 더 잘 반영하는 지표이다.
• 광고 매출은 분기별로 불균등한 모습을 보였으나, 경영진은 실적발표 전화회의 당시 현재 광고 활동이 어느 때보다 활발하다고 밝혔다.
• 경영진은 보스 레볼루션 핀리스(PIN-less) 사업의 매출이 두 자릿수 감소세를 이어갈 것으로 계속 전망하고 있다.
• 연방 송금세는 소매 대리점을 통한 현금 기반 송금에 적용되며, 이는 디지털 채널로의 전환을 가속화하고 있다.
• 넷투폰은 AI 개발에 재투자할 계획이며, 이는 경영진 예산안에 반영된 단기 EBITDA 성장폭을 제한하는 요인이다.

애널리스트 Q&A 하이라이트

경영진은 2027 회계연도 조정 EBITDA 성장이 NRS와 핀테크 부문의 주도로 2026 회계연도와 유사한 양상을 보일 것이라고 설명했다. 넷투폰의 예산은 AI 제품 재투자를 위해 의도적으로 보수적으로 책정되었으며, 기존 통신 부문은 디지털 전환, 디지털 페이먼츠의 성장, 지속적인 비용 절감의 혜택을 받을 것으로 예상된다.

NRS와 관련해 경영진은 매장 수 확대와 평균 매장당 수익성 개선 간의 균형을 강조했다. 매출 규모가 큰 식품 중심 유통업체는 배송 연동을 포함한 더 많은 서비스를 이용할 수 있는 반면, 특정 전문 유통업체는 수익화 기회가 적을 수 있다.

또한 경영진은 신규 NRS 고객의 대부분이 POS 시스템을 처음 도입하는 것이 아니라 다른 POS 제공업체에서 전환하는 고객이라고 밝혔다. 회사는 더 광범위한 서비스 제공, 낮은 비용, 고객 지원을 신규 고객 확보의 요인으로 꼽았다.

보스머니에 대해 경영진은 소매에서 디지털 송금으로의 전반적인 전환이 성장을 뒷받침하고 있다고 말했다. 회사는 디지털 사업이 호조를 보이고 있다고 판단하며, 최대 송금 대상국인 멕시코에서의 점유율을 확장할 수 있는 추가적인 기회가 있다고 보고 있다.

실적발표 컨퍼런스콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Operator

Good evening. Welcome to the IDT Corporation's Fourth Quarter and Fiscal Year 2026 Earnings Conference Call. [Operator Instructions] Please note, this conference call is being recorded. I will now turn the call over to Bill Ulrey of IDT Investor Relations. Bill, you may begin.

Bill Ulrey

Thank you, John. Today's presentation, IDT's Chief Executive Officer, Shmuel Jonas; and Chief Financial Officer, Marcelo Fischer, will discuss IDT's financial and operational results for the 3 and 12 months ended July 31, 2026. After their remarks, they will take your questions. Any forward-looking statements made during this conference call, either in their remarks or during the Q&A that follows, whether general or specific in nature, are subject 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 non-GAAP measures, including adjusted EBITDA, non-GAAP earnings per share, NRS' Rule of 40 score and adjusted net cash provided by operating activities. Schedules provided in the IDT earnings release reconcile these non-GAAP measures to their 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. Now I'll turn the call over to Shmuel for his comments on the quarter's results.

Samuel Jonas

Thank you, Bill, and thanks to everyone on the call for joining us this evening. IDT's fourth quarter capped off a strong fiscal year, highlighted by accelerated top line and adjusted EBITDA growth. Our 3 high-margin growth segments, NRS, Fintech and net2phone, each increased their respective quarterly and full year contributions, while our Traditional Communications segment generated more adjusted EBITDA in fiscal 2026 than it did in fiscal 2025 or 2024. At NRS, we continue to develop and deploy new high-value functionalities for our retailers, such as our recent Uber Eats integration following the Grubhub and DoorDash partnerships we announced last year. These advances are supplementing other tailwinds driving gains in merchant services revenues.

Also in the fourth quarter, advertising and data revenue returned to growth, bolstered by our recent acquisition. Taken together, these developments helped drive a 47% year-over-year increase in NRS' fourth quarter adjusted EBITDA. Looking ahead, we are working on several product initiatives to increase sales to our existing retailer base and to attract new retailers to the NRS network. Our BOSS Money remittance business shares its brand identity, distribution networks and addressable markets with our other BOSS branded offerings. In recent years, we invested heavily to build and improve our BOSS app. That strategy is paying off as BOSS Money continues to grow rapidly, thanks in part to the quality of our apps and our customer-centric service. At BOSS Money, remittances surpassed the $30 million annual transaction run rate for the first time in May, thanks to strong Mother's Day results in our digital channel. This channel contributed 88% of our total transaction volume in the fourth quarter with transactions and revenue both increasing by 20% plus.

We recently launched money transfers via our WhatsApp channel, and we closed the fiscal year by deploying a digital wallet here in the U.S. The wallet enables our customers to load funds, store promotions and pay for services. In addition, the BOSS Money app is extending its geographic reach, launching internationally with differentiated features by country, including peer-to-peer remittances, a stablecoin-backed wallet with a reloadable debit card and other money management tools. We are also launching a BOSS Money branded rechargeable card with credit building features. All these developments mark early steps towards a broader suite of BOSS Money branded financial services and tools that we intend to offer globally. Net2phone delivered another solid quarter as we enhanced our cloud communications portfolio with both native and stand-alone AI solutions for businesses across the globe.

Our agentic AI solutions, AI agent and Coach, combined with our new integration layer enables customers to connect their everyday business applications and workflow tools with net2phone's suite of services. Net2phone's AI tools and applications are driving nearly every conversation with our clients. That process is delivering new logos and accelerating accretive sales. Net2phone is on track to surpass the $100 million ARR milestone in the current quarter, and we expect continued top line expansion throughout fiscal 2027. Overall, IDT is well positioned as we begin the new fiscal year with accelerating top line growth, increasing cash generation and a debt-free balance sheet that affords us strategic flexibility. Now Marcelo will discuss our financial results.

Marcelo Fischer

Thank you, Shmuel. I apologize for my voice. I'm trying to recover from a cold, so I may have to pause a little more to take a breath from time to time. Okay, so as always, my remarks will focus on year-over-year comparisons in order to set aside the seasonal impacts on our business. Our fourth quarter financial results were very strong and capped off the best year in IDT's operational history. We generated record quarterly and full year gross profit, gross profit margin and adjusted EBITDA. The key dynamic driving our financial performance continues to be the increasing contributions of our 3 segments containing our higher-margin growth businesses: NRS, Fintech and net2phone relative to the larger lower-margin traditional communications segment. In fiscal '26, these 3 higher growth segments boosted the aggregate adjusted EBITDA contribution by $22 million, to 53% of consolidated adjusted EBITDA, exclusive of corporate overhead compared to 46% in fiscal 2025, while generating only 1/3 of our consolidated revenue.

We expect that this ongoing rotation will continue in the coming quarters and years and be the key driver for our continued growth. Looking at our consolidated results, fourth quarter revenue increased by 7%, while full fiscal year revenue increased 5%, accelerating from 2% growth in fiscal 2025. For a company like IDT, where the top line had decreased for many years because of the decline of the international long-distance voice paid minute market, generating 2 consecutive years of top line accelerating growth while simultaneously expanding our gross margin at a very healthy pace is indeed a gratifying inflection. Consolidated gross profit and gross margin attained record quarterly and full fiscal year levels, driving a strong increase in both adjusted EBITDA and net income.

The full year adjusted EBITDA increase of 17% to $154.6 million exceeded the revised guidance range of $150 million to $152 million that we provided when we released our Q3 results. NRS closed the fiscal year with its strongest quarter yet. Total revenue in Q4 increased 31% to $45 million, led by an increase of 31% in Merchant Services revenue to $28.5 million and a 49% increase in advertising and data revenue to $10 million. NRS' adjusted EBITDA in Q4 grew 47% year-over-year for an adjusted EBITDA margin of 31%. In addition to the positive revenue growth impact, fourth quarter gross profit and adjusted EBITDA benefited from a onetime import tariff refund recorded in cost of revenue. Excluding it, gross margin was in line with recent quarters. Tariffs were less important on a full year basis, so the full year's gross margin of 92% is the better indicator of our future performance.

Nevertheless, you can see the underlying operating leverage as we continue to scale the business. Our Rule of 40 score climbed to 60 from 49 in 4Q '25. Income from operations more than doubled to $12 million in Q4. This increase was positively impacted by nonrecurring legal expenses that were recorded in the comparative year ago quarter. A word on how we will report a key performance indicator of the NRS network going forward. Starting this quarter, we are sharing in our earnings releases 2 new KPIs: retailer locations and average monthly gross profit per location. And we are retiring the monthly average recurring revenue per terminal KPI to more meaningfully and precisely reflect the economic performance of our retailer network. BOSS Money represents the dominant driver of results within our Fintech segment. It contributed 90% of Fintech revenue in the fourth quarter and its digital channel in turn is what drives BOSS Money revenue growth.

Digital channel transactions increased by 20% in Q4, while revenue increased 22%. Digital send volume, namely the principal funds our customers remitted increased 38% as our customers sent more money per transaction. The new federal tax on remittances, which impacts only cash originated transfers typically conducted at retailer agents has further accelerated the long-standing migration of transactions from retail to digital alternatives. Although revenue from our retailer agent channel declined 17% in Q4, every customer who migrated from retail to digital contributed more profitable transactions. We ended the year with 88% of our total BOSS Money transactions originating in our BOSS apps. Turning now to the larger Fintech segment in which we report BOSS Money. During Q4, profit -- gross profit margin expanded by 650 basis points year-over-year to 66%, reflecting mainly the mix shift to digital, the higher average send amounts and also better pricing terms from our payout partners.

As BOSS Money continues to grow and scale, we are deploying AI-driven process automation throughout the business to achieve measurable productivity gains. Those gains have enhanced the operating leverage effect on the Fintech segment profitability quite significantly. Fintech revenue grew 14% to $176 million during fiscal '26, while income from operations grew 40% and adjusted EBITDA 41%. Our bottom line was also boosted by increased contribution from the other smaller businesses in our Fintech segment, including our fully licensed Gibraltar-based bank, IDT Financial Services. At net2phone, every new potential customer conversation now leads with AI. Subscription revenue increased 10% year-over-year in the fourth quarter, a 7% increase on a constant currency basis, and we ended the year with 447,000 seats, a 6% increase.

Growth was a little stronger in the U.S.A. than elsewhere with seats increasing by 7%. Our CCaaS business grew revenue by 24%. For the full year, subscription revenue grew 10% to $94.6 million. Income from operations grew 84% to $9.1 million, and adjusted EBITDA grew 33% to $16.1 million. We are quite pleased with net2phone's strong operating leverage with adjusted EBITDA margins increasing to approximately 17%, even as we invested throughout the year in building out our AI capabilities. Finally, in discussing our segment's performance, I want to call your attention to the Traditional Communications segment, which once again outperformed our expectations.

In fiscal '26, the segment grew both revenue and adjusted EBITDA and increased its adjusted EBITDA for the second consecutive year. Quarterly gross profit during fiscal '26 remained steady throughout the year at about $41 million, while declining 4% for the full year to $163 million. We continue to benefit from top line growth at IDT Digital Payments, while the GP contribution from IDT Global and BOSS Revolution Calling declined in the low single digits year-over-year as we expected. For the full year, adjusted EBITDA increased 1% to $77 million as we compensated for the decline in GP by reducing SG&A expense by nearly 6% compared to fiscal '25. We continue to believe that this segment will remain a reliable contributor to our cash generation for many years to come.

From a balance sheet perspective, we ended the year with $272 million in unrestricted cash and liquid investments, and we had no debt. We continue to repurchase shares opportunistically, buying back approximately 31,000 shares for [indiscernible] million in the fourth quarter and approximately 422,000 shares for $21 million over the course of fiscal '26. In terms of our financial outlook for fiscal '27, we are already working hard to generate strong results on top of our fiscal '26 records. Continuing a trend that we have established for the past few years, we expect to again expand consolidated gross profit by double digits to a range of $545 million to $555 million, an increase of 11% at the midpoint.

In terms of adjusted EBITDA, we are working to build on the record $155 million we achieved in fiscal '26 and to reach $176 million to $180 million in fiscal '27 with each of our operating segments expanding its contribution. This represents a 15% increase year-over-year at the midpoint. To sum up, fiscal '26 was the best year in IDT's history, and we finished it with our strongest quarter. The rotation toward our high-margin growth businesses is accelerating. Our top line is growing faster, and we are entering fiscal '27 debt-free with a stronger balance sheet and a lot of momentum. Now Shmuel and I will do our best to answer your questions. Operator, back to you for Q&A.

Operator

[Operator Instructions] The first question is from [indiscernible] with Freedom Broker.

질의응답

Unknown Analyst

First, I wanted to ask on the next financial year outlook. Could you please walk us through the main drivers behind the EBITDA guidance across the different segments?

Marcelo Fischer

Yes. I mean, as I just mentioned in my remarks, we expect to grow EBITDA in each one of our segments. To a large extent, some of it is going to mirror the same pattern of growth that you saw in fiscal '26. For example, in fiscal '26, we said we were going to grow NRS revenue by 20% to 25% and EBITDA between 25% to 30%. We achieved that. And for this coming fiscal year, we are, again, assuming almost the same type of guidance that will again be able to grow revenue 20%, 25% as well as EBITDA at a higher clip than that. And the same type of guidance is still also at Fintech, where we believe that EBITDA will continue to grow quite nicely.

We continue to benefit from the scale of the business as it grows from the efficiencies that we have incorporated into the business processes of the segment, better performance even from the smaller businesses within that segment. And in the case of net2phone, we budgeted a very small increase in EBITDA for this coming year. We did the same thing last year, as a matter of fact. They ended up delivering a lot higher EBITDA last year than we had budgeted for them. And again, for this year, we are trying to budget and allow the management team of net2phone to redeploy a lot of the EBITDA coming from the growth back into the business, so they could continue to roll out and improve on the AI development road map. And even in our traditional segment, we hope to once again be able to demonstrate that, that segment is no longer a contracting segment, but it will be, once again, for the third year in a row, a segment that's actually adding to total EBITDA.

Unknown Analyst

Got it. That's helpful. And as we stop at net2phone, may I ask one more on that segment, please? So where are you seeing the clearest commercial impact from the AI products so far in net2phone?

Samuel Jonas

Yes. I mean I would say that we're definitely seeing clear evidence of our product being used. I mean, mostly, I try not to talk about other customers without their permission, but I can talk about IDT as a customer of net2phone for our own solutions. And in our own customer service areas as well as in lots of other areas in the company where they're helping us. We're using it tremendously. I mean I would say probably 70-plus percent of communications are being handled by AI in some way, shape or form. Some of those from start to finish. Some of them require an agent at some point. But I mean, it's been a real game changer in terms of the cost and the efficiency of servicing our customers. And from the customers I have spoken to at net2phone, the same thing is true from their perspective.

Unknown Analyst

Understood. Okay. And then one on NRS, if I may. So now how are you thinking about the balance between network growth and monetization of the existing retailer base from here?

Samuel Jonas

I would like to grow the network much more than we've been growing it. I'll say that just as a starting point. And we're going to be investing more in our sales growth. That being said, for a long time, we looked at every retailer as equal to the -- to another retailer, and we focused more so on the quantity rather than the quality. And we've become much more, I don't want to use the word analytical, but I'll say that we've become much more regimented about making sure that we're going after the right kinds of stores that produce the right results for our business. And sometimes that unfortunately leads to less gross number of ads, but the revenue coming from those locations tend to be quite a lot better than they were beforehand. And you can see that playing out in our numbers, and I think you'll continue to see that playing out into the future. That being said, we are going to be hiring quite a lot of salespeople this year and really upping our game to make sure that we also bring in higher numbers than what we've been bringing in.

Unknown Analyst

Great. And please -- yes, the last one for me on traditional communications. Could I ask you to add some more color on the main drivers you see for EBITDA growth in the next financial year for that segment?

Samuel Jonas

I mean again, I think the general switch from a lot of our customers becoming digital-first customers rather than retail-first customers has definitely allowed our margins to improve. I mean, again, from a very macro point, if a customer goes into a store and they spend $10, $2.50 of that revenue goes directly to the store, if not more. And when a customer comes to us directly and spends $10, $10 goes directly into our pocket. So we are a multi omnichannel, I'll call it, type of a company. We sell in retail, wholesale, direct-to-consumer, but we've definitely upped our game in the digital space, and we've seen our customers very satisfied by that and us as well.

Marcelo Fischer

If I just add to that, right, we are going to still expect to see double-digit decline in the revenue of the BOSS Revolution PIN-less business. But as Shmuel mentioned, right, the impact that, that has to the bottom line is much smaller because of our migration from retail to digital as well as introducing subscription plans and other higher-margin elements. And on our digital payments business, that has been driving growth in the past few years, and we expect that to continue and to offset the declines on the ILD side of the business. And just to mention also that it's been part of the modus operandi for us at IDT for now for many years that we are constantly looking to reduce the cost structure in that segment. Now we're trying to achieve reduction in cost and SG&A so that we could net-net, see positive growth in EBITDA.

Samuel Jonas

Yes. But again, I would say more than anything, is we drive customer growth by driving happy customers. And when one customer tells another customer, if you're needing to provide balance to your family, whether that be in cash top-up, their utility bills, their supermarkets, anything related to supporting your family back home, go to IDT. You can trust them. That's really what drives the business. And that's what we focus on every day.

Operator

The next question comes from [William Vaughan] private investor.

Unknown Attendee

Congrats on a fantastic quarter. Just I just want to ask a question on -- you mentioned trying to reaccelerate new store growth in NRS, which is awesome to hear. Do you see -- and also like maximizing profitability sort of in the types of stores that are brought on. Do you see any types of verticals being more or less attractive in that initiative in terms of thinking about independent retailers versus tobacco versus quick service or liquor stores? Are there any types of verticals that are more attractive in that?

Samuel Jonas

There are. I mean, definitely ones that are more attractive and ones that are less attractive. I mean, in general, I would say that we're looking for stores that are doing higher volume versus stores that are doing lower volume. That's really the main factor of what we're focusing on. That being said, like there definitely are verticals in specific where we are -- our solutions are better situated to those types of stores, and we get more revenue from them because they're able to take more types of our services.

So again, I mean, like I just -- it's a bad example, but if somebody is a tobacco shop, right, we'll just use them as an example. They're most likely not going to be able to take a lot of our services at this point because they're not allowed to do delivery in most places as opposed to a store that has a big food element to it and does a lot of deliveries, they would be much more profitable as well as they would be doing much more deliveries for the store. I mean, so it's those kinds of factors that influence the overall profitability of a store.

Unknown Attendee

Okay. And a follow-up on that. Do you still see that new stores that are brought on are mostly converting folks who didn't really have a good POS system prior? Or have we got to the point where the offering is sort of taking business away from other providers because of the specialization in terms of services that you add and becoming more competitive that way?

Samuel Jonas

I mean, I don't know the answer exactly to the question like off the top of my head. But I mean, I would just give you like my thoughts on it. And again, these aren't statistical numbers. But I would say at this point in time, most stores have a point-of-sale system. They're not moving from a Casio to a POS at this juncture. I'm not saying that none are moving off of a Casio, we'll call it. But in general, they're moving to us because of all of the different services that we provide and the fact that it's just much more robust and much lower cost than anybody else is offering those services for. And again, we've had customers that have left us for something new and shiny. And a couple of months later, they realized their bills are not what they thought they were going to be. Their service is not what they thought they were going to get and they end up coming back.

And a huge percentage of stores also that I would say sell their store to a new operator also come back to us, which I think is also proof of what a good value and a good job we do because if you're coming into a new business and you want to improve it and you choose to go with the main core of your business, again, from NRS IDT, that means that you think that part of your business is not what needs changing. And we're very focused on making sure that we provide great service and affordable pricing to our retail partners so that they can continue to do well in really a very tough environment.

Unknown Attendee

Awesome. Awesome. Last question on NRS. It's great to see the recovery and increase in advertising spend and advertising revenue. What would you say has really driven that? So you mentioned the acquisition. Is it just getting more bidding for ad impressions? Is it -- what specifically has drove the recovery? If you could just give some color on that?

Samuel Jonas

Yes. I mean it's not a one facet answer. And I would also say, listen, I mean, unfortunately and fortunately, depending on which quarter we're talking about, advertising has been somewhat -- I don't want to say seasonal, but has been somewhat imbalanced. And right now, it's doing very well. Like as we're speaking this quarter, it's doing better than ever. And I think this is, again, my own opinion, not fact. It's that more and more retailers are seeing good results from the ads that are happening. They're driving results in their stores. And the -- our partners who are usually the brands that sell products in these stores are seeing the results.

And our partners who sell other services, whether or not it's legal services or immigration services or any of a number of types of companies that advertise in our network, see the results from the dollars that they're spending in NRS -- in a community that's harder to reach than maybe somebody who -- I don't know, we'll say you, who works in Wall Street. So I think that, that's, generally speaking, what's happening. That being said, I mean, the acquisition brought on other pieces of business that they do that have nothing to do with what happens in our stores directly. And that's been a new area of growth. So it's that whole combination together.

Unknown Attendee

Awesome. And just one on BOSS Money. Nice growth there. How would you say the market is evolving in the remittance space with the tax and then with people shifting more to digital? Just any comments you could give there? And do you feel like you guys are taking share in the overall market? And do you guys feel like you're taking share within the digital part of the market specifically as well?

Samuel Jonas

So I mean, listen, I can't speak to like how our competitors are doing that aren't public competitors. I mean you can see a lot of the public competitors to us who have retail businesses and how it's affected them. I mean that's very public information, and it's easy to see that it's hurting their business, this remittance tax and the move to digital in general. In terms of how we're doing digitally versus our competitors, I would say we're doing well. I wish we were doing always a little better than we're currently doing. And we're trying our best always. I mean, right now, the business is doing very, very well. And I don't expect anything to change. But yes, I mean, we are definitely being helped by the market moving to digital. Like it's not just us, I would say like that.

Marcelo Fischer

Yes. I mean we do see that our market share has remained stable to growing to our largest destination. I'll give you an example, in the case of Mexico. Mexico, as you know, is the largest corridor for remittances out of the U.S. So you go back a year ago, we probably had a little less than 2% of the market share. Now we probably have about a little bit less than 3%. So we grew a little bit there. So I think hopefully, there will be a lot of opportunity for us to grow market share into Mexico, and we think about Mexico all the time as an area of opportunity for continued growth and being able to have the best app out there, which is above money app have been rated and a great service. Now we hope that will be a way to over time, educate more and more users to try our service and stick with us.

Operator

[Operator Instructions] As there are no more questions, this concludes our question-and-answer session and conference call. Thank you for attending today's presentation. You may now disconnect.