Smart Connected Services Investor Presentation M a r c h 4 , 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", "ap ...

Ooma, Inc. (NYSE:OOMA) Q4 2025 Earnings Conference Call March 4, 2025 5:00 PM ET Corporate Participants Matt Robison - Director, IR and Corporate Development Eric Stang - Chief Executive Officer Shig Hamamatsu - Chief Financial Officer Conference Call Participants Alinda Li - William Blair Brian Kinstlinger - Alliance Global Partners Josh Nichols - B. Riley Max Michaelis - Lake Street Capital Markets Matthew Harrigan - The Benchmark Company Operator Thank you for standing by, and welcome to the OOma Inc., F ...

For the quarter ended January 2025, Ooma (OOMA) reported revenue of $65.1 million, up 5.5% over the same period last year. EPS came in at $0.21, compared to $0.13 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $64.7 million, representing a surprise of +0.61%. The company delivered an EPS surprise of +31.25%, with the consensus EPS estimate being $0.16.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expecta ...

Core Viewpoint - Ooma reported quarterly earnings of $0.21 per share, exceeding the Zacks Consensus Estimate of $0.16 per share, and showing an increase from $0.13 per share a year ago, indicating a 31.25% earnings surprise [1][2] Financial Performance - Ooma's revenues for the quarter ended January 2025 were $65.1 million, surpassing the Zacks Consensus Estimate by 0.61% and up from $61.68 million year-over-year [2] - The company has consistently surpassed consensus EPS estimates over the last four quarters [2] Stock Performance - Ooma shares have declined approximately 1.3% since the beginning of the year, while the S&P 500 has decreased by 0.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.16 on revenues of $65.55 million, and for the current fiscal year, it is $0.70 on revenues of $272.06 million [7] - The trend of estimate revisions for Ooma is mixed, which may change following the recent earnings report [6] Industry Context - The Communication - Components industry, to which Ooma belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Ooma's stock performance [5]

Revenue Performance - Ooma reported Q4 fiscal 2025 revenue of $65.1 million, a 6% increase year-over-year, with subscription and services revenue at $60.6 million, representing 93% of total revenue[5][6]. - For the full fiscal year 2025, Ooma achieved total revenue of $256.9 million, an 8% year-over-year growth, with subscription and services revenue increasing to $238.6 million[5][6]. - Total revenue for the three months ended January 31, 2025, was $65.097 million, a 6.9% increase from $61.676 million for the same period in 2024[27]. Profitability Metrics - Non-GAAP net income for Q4 fiscal 2025 was $5.8 million, or $0.21 per diluted share, compared to $3.5 million, or $0.13 per diluted share in Q4 fiscal 2024[5][6]. - Ooma's GAAP net loss for fiscal 2025 was $6.9 million, or $0.26 per share, compared to a loss of $0.8 million, or $0.03 per share in fiscal 2024[6][7]. - Non-GAAP net income for the fiscal year ended January 31, 2025, was $18.022 million, compared to $15.368 million in 2024, indicating a growth of 10.8%[31]. - Non-GAAP operating income for the fiscal year ended January 31, 2025, was $18.963 million, up from $15.524 million in 2024, marking a 22.4% increase[31]. Cash Flow and Assets - Cash flow from operations increased by 117% year-over-year for fiscal 2025[5]. - Cash flows from operating activities for the three months ended January 31, 2025, were $7.842 million, an increase from $5.508 million in the same period last year[30]. - The company reported total assets of $149.2 million as of January 31, 2025, down from $159.3 million a year earlier[24]. - Cash and cash equivalents at the end of the period on January 31, 2025, were $17.871 million, compared to $17.536 million at the end of the previous year[30]. Operating Expenses and Margins - Operating expenses for the three months ended January 31, 2025, totaled $40.254 million, slightly up from $40.134 million in the prior year[27]. - The company reported a GAAP gross margin of 61% for both the three months ended January 31, 2025, and 2024[31]. - Gross profit for the fiscal year ended January 31, 2025, was $156.018 million, compared to $147.232 million in 2024, reflecting a 6.0% increase[27]. Future Outlook - The company expects total revenue for fiscal 2026 to be in the range of $267 million to $270 million[6][7]. - The company plans to continue investing in new products and market expansion, entering FY26 with strong solutions across four targeted segments[5]. - Ooma's acquisition of 2600Hz contributed to the growth in subscription and services revenue for the fiscal year[6]. Quarterly Performance - Subscription and services revenue increased to $60.551 million, up from $57.963 million, representing a growth of 2.7% year-over-year[27]. - The net loss for the three months ended January 31, 2025, was $261 thousand, significantly improved from a net loss of $3.065 million in the same quarter of 2024[27]. - Adjusted EBITDA for Q4 fiscal 2025 was $6.9 million, up from $5.2 million in Q4 fiscal 2024[6].

Group 1 - Ooma (OOMA) is expected to report quarterly earnings of $0.16 per share, reflecting a year-over-year increase of 23.1% [1] - Revenue projections for Ooma are anticipated to reach $64.7 million, which is a 4.9% increase from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the past 30 days, indicating analysts' reassessment of their initial projections [1] Group 2 - Analysts predict 'Revenue- Product and other' to be $4.56 million, showing a year-over-year change of +22.9% [4] - 'Revenue- Subscription and services' is projected to reach $60.16 million, indicating a change of +3.8% from the previous year [4] - The forecast for 'Gross Margin- Subscription and services' is 70.6%, down from 72% reported in the same quarter last year [4] Group 3 - Ooma shares have returned -1.8% over the past month, compared to a -2.2% change in the Zacks S&P 500 composite [5] - Ooma holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [5]

Group 1 - The article discusses the services provided by IPO Edge, which includes actionable information on growth stocks, first-look IPO filings, previews on upcoming IPOs, an IPO calendar, a database of U.S. IPOs, and a comprehensive guide to IPO investing [1]

Core Viewpoint - Ooma (OOMA) has received a Zacks Rank 1 (Strong Buy) upgrade, indicating a positive earnings outlook that may lead to increased stock price [1][3]. Earnings Estimates and Stock Price Correlation - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with stock price movements, particularly influenced by institutional investors [4][6]. - Rising earnings estimates for Ooma suggest an improvement in the company's underlying business, likely resulting in upward stock price pressure [5][10]. Earnings Estimate Revisions - Ooma is projected to earn $0.61 per share for the fiscal year ending January 2025, reflecting a year-over-year increase of 3.4% [8]. - Over the past three months, the Zacks Consensus Estimate for Ooma has risen by 35.3%, indicating a significant upward revision trend [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Ooma's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting strong potential for market-beating returns in the near term [10].

Core Viewpoint - Ooma (OOMA) has shown a recent price increase and analysts suggest there is potential for further upside, with a mean price target indicating a 27.4% increase from the current price [1]. Price Targets - The mean price target for OOMA is $17.90, with a standard deviation of $0.55, indicating a consensus among analysts [2]. - The lowest estimate is $17, suggesting a 21% increase, while the highest estimate is $18.50, indicating a potential surge of 31.7% [2]. - A low standard deviation signifies a high degree of agreement among analysts regarding the stock's price movement [7]. Analyst Sentiment - Analysts are optimistic about OOMA's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which historically correlate with stock price movements [9]. - Over the last 30 days, six earnings estimates for OOMA have increased, leading to a 35.3% rise in the Zacks Consensus Estimate [10]. Zacks Rank - OOMA holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, suggesting strong potential for upside [11]. Caution on Price Targets - While price targets are a common metric, they should not be the sole basis for investment decisions due to historical inaccuracies in predicting actual stock movements [5][8]. - Analysts may set overly optimistic price targets influenced by business relationships, which can lead to inflated expectations [6].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Overview: Ooma (OOMA) - Ooma currently holds a Momentum Style Score of A, indicating strong potential for momentum investing [3]. - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for outperformance in the market [4]. Performance Metrics - Ooma's shares have increased by 0.74% over the past week, outperforming the Zacks Communication - Components industry, which rose by 0.68% [7]. - Over the last month, Ooma's stock price has risen by 12.68%, significantly higher than the industry's 4.22% [7]. - In the last three months, Ooma's shares have surged by 38.72%, and over the past year, they have increased by 55.88%, compared to the S&P 500's gains of 9.93% and 33.15%, respectively [8]. Trading Volume - Ooma's average 20-day trading volume is 161,622 shares, which serves as a bullish indicator when combined with rising stock prices [9]. Earnings Outlook - Recent earnings estimate revisions for Ooma show a positive trend, with 3 estimates moving higher and only 1 lower for the current fiscal year, raising the consensus estimate from $0.58 to $0.59 [11]. - For the next fiscal year, 4 estimates have increased with no downward revisions, indicating strong earnings potential [11]. Conclusion - Given the strong performance metrics and positive earnings outlook, Ooma is positioned as a solid momentum pick for investors [12][13].