Ooma (OOMA) Q2 2026 Earnings Call August 26, 2025 05:00 PM ET Company ParticipantsMatthew Robison - Director of IR & Corporate DevelopmentEric Stang - President, CEO & DirectorShig Hamamatsu - Chief Financial OfficerKincaid LaCorte - Equity Research AssociateAlinda Li - Equity Research Associate - TechKevin Pimental - Equity Research AssociateConference Call ParticipantsJosh Nichols - Senior Research AnalystEric Martinuzzi - Senior Research AnalystMatthew Harrigan - Equity Research AnalystOperatorHello, and ...

Financial Data and Key Metrics Changes - Revenue for Q2 reached $66.4 million, a 3.5% increase year over year, exceeding guidance [17][19] - Non-GAAP net income was $6.5 million, up 59% year over year, surpassing guidance [19][24] - Adjusted EBITDA reached a record $7.2 million, representing 11% of total revenue, a 27% increase year over year [24][28] - Cash flow from operations was $6.4 million, with free cash flow of $5 million [25] Business Line Data and Key Metrics Changes - Business subscription and services revenue grew 6% year over year, accounting for 62% of total subscription services revenue [18][20] - Residential subscription and services revenue decreased by 2% year over year [20] - The average revenue per user (ARPU) increased by 4% year over year to $15.68, driven by a higher mix of business users [21] Market Data and Key Metrics Changes - The company ended Q2 with 1.23 million core users, including 508,000 business users, an increase of 9,000 from Q1 [20] - The annual exit recurring revenue was $240 million, up 3% year over year [21] - The net data subscription retention rate improved to 100% from 99% in the previous quarter [20][71] Company Strategy and Development Direction - The company plans to enhance its offerings with the introduction of the Connect 5,000, a 5G internet solution for small businesses [9] - Continued development of AI-driven features is a priority, aimed at serving slightly larger businesses [10] - The focus remains on capitalizing on AirDial, enhancing Ooma Office, and positioning 2600 Hertz as a leading wholesale platform [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, particularly with AirDial and the overall market opportunity [29][84] - The company anticipates continued sales momentum and is focused on executing its long-term strategy for profitable growth [28][84] Other Important Information - The company celebrated its ten-year anniversary since going public, highlighting significant revenue growth and improved profitability [15] - The guidance for Q3 revenue is projected between $67.2 million and $67.9 million, with full-year revenue guidance unchanged at $267 million to $270 million [26][27] Q&A Session Summary Question: Contribution of AirDial to ARR - Management confirmed that AirDial is contributing meaningfully to ARR growth, with a significant portion of new business user growth attributed to AirDial [32][33] Question: Updates on AirDial partnerships - Management reported nearly 35 partners reselling AirDial, with notable progress from partners like Comcast and T-Mobile [36][37] Question: Use of incremental cash flow - Management clarified that share buybacks are sensible at current prices, while still exploring M&A opportunities that fit their strategic criteria [43][44] Question: Business subscription growth outlook - Management indicated that the guidance reflects conservatism due to installation timing rather than expected churn [46] Question: Details on the new largest retail customer - Management shared that the new customer is a large national retailer, with installations expected to ramp up in the second half of the year [51][52] Question: Organic growth rate of 2600 Hertz - Management noted that 2600 Hertz is a wholesale platform with low ARPU, but they are working to enhance its capabilities and expect growth opportunities in the future [59][62]

Smart Connected Services Investor Presentation A u g u s t 2 6 , 2 0 2 5 Safe Harbor Statement This presentation contains forward-looking statements. In particular, statements regarding future economic performance, finances, and expectations and objectives of management constitute forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical facts and generally contain words such as "believes", "expects", "may", "will", "should", "seeks", ...

Exhibit 99.1 Ooma Reports Fiscal Second Quarter 2026 Financial Results Sunnyvale, Calif., August 26, 2025 -- Ooma, Inc. (NYSE: OOMA), a provider of advanced communications services for businesses and consumers, today released financial results for the fiscal second quarter ended July 31, 2025. Second Quarter Fiscal 2026 Financial Highlights: For more information about non-GAAP net income and Adjusted EBITDA, see the section below titled "Non-GAAP Financial Measures" and the reconciliation provided in this r ...

Ooma, Inc. OOMA will release earnings results for the second quarter after the closing bell on Tuesday, Aug. 26.Analysts expect the New York-based company to report quarterly earnings at 20 cents per share, up from 15 cents per share in the year-ago period. Ooma projects to report quarterly revenue of $65.72 million, compared to $64.13 billion a year earlier, according to data from Benzinga Pro.On May 28, Ooma posted better-than-expected first-quarter earnings.Ooma shares fell 0.5% to close at $11.98 on Mon ...

Wall Street analysts expect Ooma (OOMA) to post quarterly earnings of $0.20 per share in its upcoming report, which indicates a year-over-year increase of 33.3%. Revenues are expected to be $65.73 million, up 2.5% from the year-ago quarter. The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period. Analysts' assessment points toward ...

Industry Overview - The Zacks Communication - Components industry is facing challenges due to raw material price volatility, high capital expenditure for infrastructure upgrades, and geopolitical conflicts, which have negatively impacted profitability [1][4][5] - The industry primarily includes companies providing telecom products and services for scalable network architecture, video solutions, and broadband access equipment [3] Current Challenges - High operating costs are driven by a shortage of chips, increased raw material prices, and technological obsolescence, which have escalated operational expenses [7] - Demand erosion is occurring as customers shift to lower-priced alternatives due to increased fees for network upgrades, compounded by trade tensions affecting business credibility [5][6] Future Prospects - Despite current challenges, companies like Corning, Viavi Solutions, and Ooma are expected to benefit from rising demand for scalable infrastructure driven by IoT, fiber densification, and 5G rollout [2][16][20] - The industry is adapting to a software-driven, data-centric approach, enhancing cloud architecture and user experience, positioning itself for growth in cloud networking [6] Performance Metrics - The Zacks Communication - Components industry has outperformed the S&P 500 and the broader Zacks Computer and Technology sector, with a 66.1% increase over the past year compared to 20% and 28.9% for the S&P 500 and sector, respectively [11] - The industry currently trades at a trailing 12-month price-to-book (P/B) ratio of 4.13X, lower than the S&P 500's 7.37X and the sector's 10.68X [14] Company Highlights - **Corning**: Experienced a 69.1% stock surge over the past year, with a long-term earnings growth expectation of 18.2% and a focus on innovative optical connectivity products [16][17] - **Viavi Solutions**: Gained 35% in the past year, with a 27.8% upward revision in current earnings estimates, benefiting from the transition to 5G networks [20][21] - **Ooma**: Achieved a 31.5% stock increase, focusing on small business customers and delivering an earnings surprise of 18% on average in the trailing four quarters [25][26]

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Revenue Performance - Total revenue for the first quarter of fiscal 2026 was $65.0 million, representing a 4% year-over-year increase, primarily driven by growth in Ooma Business[78]. - Total revenue for the three months ended April 30, 2025, was $65.029 million, a 4% increase from $62.499 million in the same period of 2024[99]. - Subscription and services revenue from Ooma Business grew 6% year-over-year, mainly due to user growth[78]. - Subscription and services revenue increased by $1.9 million or 3% year-over-year, driven by an increase in AirDial lines and average revenue per core user[100]. - Product and other revenue rose by $0.7 million or 16% year-over-year, primarily due to increased AirDial shipments[101]. Financial Metrics - Adjusted EBITDA for the first quarter was $6.7 million, compared to $5.0 million in the prior year quarter[78]. - The net dollar subscription retention rate remained stable at 99% year-over-year, indicating strong customer retention[81]. - Total gross margin improved to 62%, up from 61% in the prior year quarter[78]. - Gross profit for total revenue was $40.209 million, reflecting a 5% increase from $38.115 million in the prior year[102]. - The gross margin for subscription and services remained consistent at 70% year-over-year[103]. Operating Expenses - Operating expenses for the first quarter totaled $40.3 million, slightly down from $40.9 million in the prior year quarter[98]. - Operating expenses decreased by 1% year-over-year to $40.266 million, with research and development expenses down by 10%[105]. Cash Position - As of April 30, 2025, total cash and cash equivalents were $19.0 million, up from $17.9 million as of January 31, 2025[78]. - As of April 30, 2025, the company had $19.0 million in cash and cash equivalents, sufficient to meet cash needs for at least the next 12 months[109]. - Net cash provided by operating activities was $3.703 million, an increase of $0.1 million year-over-year[110]. - Cash used in investing activities was $1.223 million, a decrease of $0.2 million compared to the previous year[113]. User Metrics - Core users decreased to 1,225 as of April 30, 2025, down from 1,239 a year earlier, with Ooma Business users now comprising approximately 41% of total core users[79]. - Annualized exit recurring revenue (AERR) grew to $234.0 million, up from $227.6 million year-over-year, driven by an increase in average revenue per core user[79][80]. Debt and Financing - The company entered into a secured revolving credit facility allowing borrowing up to $30.0 million, potentially increased to $50.0 million[115]. Net Loss - GAAP net loss narrowed to $0.1 million, compared to a net loss of $2.1 million in the prior year quarter, reflecting operational improvements[78].

Ooma (OOMA) FY Conference Summary Company Overview - Ooma is a provider of communication services, specifically cloud telephone service and Unified Communications as a Service (UCaaS) [3][4] - The company operates in four segments: residential phone service, small business phone service, enterprise solutions, and wholesale platforms [17][26] Financial Performance - Ooma reported total revenue of $259 million for the last four quarters, with a year-over-year growth of 7% [5] - Adjusted EBITDA for the same period was $25 million, reflecting a 24% increase [5] - Annual exit recurring revenue (ARR) stands at $234 million, with a retention rate of 72% [6] - The company has a high gross margin of 72% on subscription revenue and a total gross margin of 63% [35] User Metrics - Ooma has over 1.2 million core users, with a monthly average revenue per user (ARPU) of approximately $15 [6][13] - Business ARPU is reported at over $23, while residential ARPU is around $19 [34] Market Opportunities - There are an estimated 6 million businesses in North America with 1 to 20 employees, with about half yet to transition to cloud solutions, presenting a significant market opportunity [16] - The company is targeting the replacement of copper lines, with an estimated 10 million lines in the U.S. being phased out [17][18] Product Segments - **Residential Product Line**: Ranked number one by Consumer Reports, offering affordable phone services [9][15] - **Small Business Solutions**: Ooma Office allows small businesses to access powerful communication features at a low cost, catering to their unique needs [10][12] - **Enterprise Solutions**: Focused on verticals like hospitality, with over 500 hotels in North America using Ooma's services [11] - **AirDial**: A solution for replacing copper lines, designed to maintain existing equipment while providing advanced features [19][22] Strategic Partnerships - Ooma has signed over 30 resellers for AirDial, including major partners like T-Mobile and Comcast, enhancing market reach [22] - The company has a significant partnership with Marriott, certifying Ooma AirDial for all their properties, which includes over 5,000 locations in North America [51] Growth Strategy - Ooma aims to reach 300,000 lines for AirDial, which could generate an additional $100 million in recurring revenue annually [23] - The company is focused on acquiring small business user bases through strategic acquisitions, typically targeting businesses with $10 million to $25 million in revenue [38] Financial Outlook - Ooma expects to improve adjusted EBITDA margins to 11% by Q4 of the current year, with a long-term goal of reaching 20% to 25% in the next four to five years [43] - The company plans to continue using free cash flow for stock buybacks, having spent $12 million in the last twelve months [39][40] Conclusion - Ooma is positioned in a growing market with a strong financial foundation, focusing on differentiated solutions in the cloud communications space, particularly through its unique offerings like AirDial and the 2,600 Hertz platform [59]