Why did IDT's Q1 earnings show such a strong performance?

IDT's Q1 earnings showed a strong performance due to several key factors:

1. **Revenue Growth**: IDT reported a 2% year-over-year increase in revenue, reaching $303.35 million. This growth was driven by strong performances across its business segments, particularly in NRS and BOSS Money.
2. **NRS Segment Expansion**: The NRS segment experienced a 32% increase in recurring revenue, reaching $31.6 million. This growth was fueled by improved ARPU and expanding profitability margins, highlighting the segment's successful diversification into payment processing and software solutions.
3. **BOSS Money's Strong Performance**: BOSS Money achieved over 40% year-over-year growth in both transaction volume and revenue, generating $4 million for the year. The segment's record transaction volume of 5.7 million underscored its expanding market presence and contribution to IDT's financial success.
4. **Traditional Communications Segment Performance**: Despite expectations of a decline, the Traditional Communications segment adjusted EBITDA surpassed $20 million, marking a 90% year-over-year increase. This outcome was likely due to growth in the mobile top-up business, which offset expected declines in other services.
5. **Strategic Investments and Operational Efficiency**: IDT's focus on growing profitable segments and creating long-term shareholder value was evident in its strategic investments and operational improvements. The company's adjusted EBITDA reached record levels, with $34 million in Q2 and a total of $63 million for the first half of the year.
6. **Dividend Increase and Share Repurchases**: IDT's decision to increase its regular quarterly dividend by 20% and repurchase a record level of shares reflected the company's commitment to shareholder returns and confidence in its financial stability.

In summary, IDT's Q1 earnings showed a strong performance due to robust revenue growth, particularly in the NRS and BOSS Money segments, strategic investments, operational efficiency, and a focus on shareholder returns.