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Business Segment Information
 6 Months Ended
Jan. 31, 2023
Segment Reporting [Abstract]  
Business Segment Information

Note 2—Business Segment Information

 

As of August 1, 2022, the Company revised its reportable business segments primarily to reflect the growth of its financial technology businesses and their increased contributions to the Company’s consolidated results. The Company’s four reportable business segments, Fintech, National Retail Solutions (“NRS”), net2phone, and Traditional Communications, reflect management’s current approach to analyzing results, its resource allocation strategy, and its assessment of business performance. NRS was previously included in the Company’s Fintech segment. In addition, certain lines of business were reclassified to the Fintech segment from the Traditional Communications segment. Comparative segment information has been reclassified and restated in all periods to conform to the current period presentation.

 

The Company’s reportable segments are distinguished by types of service, customers, and methods used to provide their services. The operating results of these business segments are regularly reviewed by the Company’s chief operating decision maker. The accounting policies of the segments are the same as the accounting policies of the Company as a whole. There are no significant asymmetrical allocations to segments. The Company evaluates the performance of its business segments based primarily on income (loss) from operations.

 

  The Fintech segment is comprised of BOSS Money, a provider of international money remittance and related value/payment transfer services, as well as other, significantly smaller financial services businesses, including Leaf Global Fintech Corporation (“Leaf”), a provider of digital wallet services in emerging markets, the Company’s variable interest entity (“VIE”) that operates money transfer businesses (see Note 9), and IDT Financial Services Limited (“IDT Financial Services”), the Company’s Gibraltar-based bank.

 

  The NRS segment is an operator of a nationwide point of sale (“POS”) network providing independent retailers with store management software with credit, debit, and other electronic payment processing, as well as with other ancillary merchant services. NRS’ POS platform provides marketers with digital out-of-home advertising and transaction data.

 

The net2phone segment is comprised of net2phone’s cloud communications offerings.

 

  The Traditional Communications segment includes Mobile Top-Up, which enables customers to transfer airtime and bundles of airtime, messaging, and data to international and domestic mobile accounts, BOSS Revolution Calling, an international long-distance calling service marketed primarily to immigrant communities in the United States and Canada, and IDT Global, a wholesale provider of international voice and SMS termination and outsourced traffic management solutions to telecoms worldwide. Traditional Communications also includes other small businesses and offerings including early-stage business initiatives and mature businesses in harvest mode.

 

Corporate costs mainly include compensation, consulting fees, treasury, tax and accounting services, human resources, corporate purchasing, corporate governance including Board of Directors’ fees, internal and external audit, investor relations, corporate insurance, corporate legal, and other corporate-related general and administrative expenses. Corporate does not generate any revenues, nor does it incur any direct cost of revenues.

 

 

Operating results for the business segments of the Company were as follows:

 

 (in thousands)  Fintech   National Retail Solutions   net2phone   Traditional Communications   Corporate   Total 
Three Months Ended January 31, 2023                              
Revenues  $20,321   $19,822   $17,794   $255,999   $—   $313,936 
(Loss) income from operations   (806)   5,374    (575)   17,008    (2,820)   18,181 
                               
Three Months Ended January 31, 2022                              
Revenues  $14,599   $10,620   $13,535   $298,304   $—   $337,058 
(Loss) income from operations   (2,271)   2,058    (2,866)   19,897    (3,004)   13,814 
                               
Six Months Ended January 31, 2023                        
Revenues  $40,208   $39,135   $34,744   $521,665   $—   $635,752 
Income (loss) from operations   

706

    10,605    (1,631)   34,271    (5,544)   38,407 
                               
Six Months Ended January 31, 2022                              
Revenues  $28,829   $20,692   $26,448   $631,172   $—   $707,141 
(Loss) income from operations   (3,866)   3,405    (7,059)   40,225    (5,113)   27,592