Financial Data and Key Metrics Changes - Revenue for Q3 increased to $67.6 million, up 4% year over year, with annual exit recurring revenue reaching $242.7 million, also up 4% year over year [6][16][18] - Non-GAAP net income rose to $7.7 million, a 68% increase year over year, and adjusted EBITDA reached a record $8.6 million, growing 50% year over year [6][17][20] - Adjusted EBITDA as a percentage of revenue improved to 13%, up from 11% in Q2 and 10% in Q1 [6][20] Business Line Data and Key Metrics Changes - Business subscription and services revenue accounted for 63% of total subscription and services revenue, up from 61% in the prior year quarter [16] - Ooma Office and Ooma Enterprise added new customers, with a healthy take rate for higher-tier services [7][18] - Residential subscription and services revenue decreased by 1% year over year [17] Market Data and Key Metrics Changes - The company ended Q3 with 1,233,000 core users, a slight increase from 1,230,000 in Q2, with business users making up 42% of total core users [18] - The average revenue per user (ARPU) increased by 4% year over year to $15.82, driven by a higher mix of business users [18] Company Strategy and Development Direction - The company is focused on growth through investments in Ooma Office, Ooma Enterprise, Ooma AirDial, and 2600Hz, with plans to launch AI solutions early next year [7][8] - Recent acquisitions of FluentStream and Phone.com are expected to enhance Ooma's capabilities and customer base, adding over 165,000 users and $45 million in revenue annually [11][12] - The strategy includes leveraging synergies from acquisitions to optimize spending and achieve greater scale [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth potential and the positive impact of recent acquisitions on revenue and profitability [6][26] - The company anticipates a strong Q4, with guidance for total revenue between $71.3 million and $71.9 million, including contributions from FluentStream [23][25] - Management noted that customer engagement remains strong, despite some delays in AirDial installations due to customer timing [32] Other Important Information - Total operating expenses for Q3 were $34.2 million, down $1.4 million year over year, with a focus on optimizing sales and marketing spend [20] - The company ended the quarter with total cash and investments of $21.7 million and generated $6.9 million of operating cash flow [21][22] Q&A Session Summary Question: What drives the expected increase in profitability for fiscal Q4? - Management highlighted operating leverage, optimized sales and marketing spend, and lower-than-expected tariff impacts as key factors [27][28][29] Question: What are the synergy expectations from the FluentStream and Phone.com acquisitions? - Management expects modest cost-side synergies from FluentStream and more significant opportunities with Phone.com due to overlapping operations [30][31] Question: What caused the guidance adjustment for the legacy business? - The adjustment was primarily due to AirDial pushouts, with customer deployment timing being delayed [32][33] Question: How will the company integrate FluentStream and Phone.com? - Management plans to integrate both businesses without disrupting existing operations, leveraging their strengths for future growth [46][47] Question: What is the competitive landscape in the hospitality sector? - The company is primarily replacing legacy on-site PBX systems, with no significant changes in competitive dynamics noted [48]

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

Company Overview - Ooma is a multi-tenant SaaS platform for telephony, messaging, video, and more, serving over 1.2 million core users[8] - The company's annual exit recurring revenue (AERR) is $243 million, with a recurring gross profit margin of 72%[8] - Ooma boasts a 99% net dollar subscription retention rate (NDR)[8] Financial Performance - Ooma's revenue is $264 million, with adjusted EBITDA of $29 million[8] - The company targets a long-term subscription & services gross margin of 75%-78%[62] - Ooma's target model includes a long-term adjusted EBITDA margin of 20%-25% of revenue[62] Market Opportunity - The worldwide hosted voice/UC public cloud (UCaaS) market is projected to grow at a CAGR of 7% from $23 billion in 2023 to $32 billion in 2028[28] - The North American business market has 57 million business lines[28] - Ooma addresses a >10 million line U S market opportunity in POTS (copper line) replacement[40]

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

Financial Performance - Total revenue for Q3 fiscal 2026 was $67.6 million, representing a 4% year-over-year increase[6] - Non-GAAP net income was $7.7 million, or $0.27 per diluted share, compared to $4.6 million, or $0.17 per diluted share in the prior year[6] - Adjusted EBITDA reached a record $8.6 million, growing 50% year-over-year from $5.7 million[6] - Total revenue for the three months ended October 31, 2025, was $67.625 million, a 3.84% increase from $65.127 million in the same period of 2024[25] - Subscription and services revenue increased to $61.953 million, up from $60.135 million year-over-year, representing a growth of 3.02%[25] - Net income for the three months ended October 31, 2025, was $1.393 million, compared to a net loss of $2.364 million in the same quarter of 2024[27] - Non-GAAP net income for the three months ended October 31, 2025, was $7.667 million, up from $4.561 million in the prior year[28] - The company reported a basic net income per share of $0.05 for the three months ended October 31, 2025, compared to a loss of $0.09 per share in the same period of 2024[25] - Total operating income for the three months ended October 31, 2025, was $1.292 million, a significant improvement from an operating loss of $2.286 million in the prior year[28] - Adjusted EBITDA for the nine months ended October 31, 2025, was $22.417 million, compared to $16.344 million in the same period of 2024, indicating a strong operational performance[28] Revenue Projections - The company expects total revenue for Q4 fiscal 2026 to be in the range of $71.3 million to $71.9 million, including an expected contribution from FluentStream of $4.0 million to $4.1 million[7] - For the full fiscal year 2026, total revenue is projected to be between $270.3 million and $270.9 million, with FluentStream contributing $4.0 million to $4.1 million[7] Acquisitions - The company completed the acquisition of FluentStream and is on track to complete the acquisition of Phone.com in late December[4] Cash and Assets - Ooma's cash and cash equivalents increased to $21.7 million as of October 31, 2025, up from $17.9 million at the beginning of the fiscal year[22] - Total assets as of October 31, 2025, were $152.7 million, compared to $149.2 million at the beginning of the fiscal year[22] Operating Expenses - Operating expenses decreased to $39.437 million from $41.556 million year-over-year, a reduction of 5.1%[25] - Gross profit for the three months ended October 31, 2025, was $40.729 million, compared to $39.270 million in the prior year, reflecting a gross margin of 60%[28]

SUNNYVALE, Calif.--(BUSINESS WIRE)--Ooma, Inc. (NYSE OOMA), a smart communications platform for businesses and consumers, today released financial results for the fiscal third quarter ended October 31, 2025. Third 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 release. "Ooma delivered solid Q3 financial results, with $67.6 million in revenue and $ ...

Ooma, Inc. (NYSE:OOMA) will release earnings results for the third quarter after the closing bell on Monday, Dec. 8.Analysts expect the Sunnyvale, California-based company to report quarterly earnings at 22 cents per share, up from 17 cents per share in the year-ago period. The consensus estimate for Ooma's quarterly revenue is $71.42 million, compared to $65.13 million a year earlier, according to data from Benzinga Pro.On Nov. 24, Ooma agreed to acquire Phone.Com for $23.2 million in cash.Shares of Ooma r ...

With U.S. stock futures trading higher this morning on Monday, some of the stocks that may grab investor focus today are as follows:Wall Street expects Toll Brothers Inc. (NYSE:TOL) to report quarterly earnings at $4.89 per share on revenue of $3.30 billion after the closing bell, according to data from Benzinga Pro. Toll Brothers shares rose 0.1% to $139.00 in after-hours trading.Analysts are expecting Phreesia Inc. (NYSE:PHR) to post quarterly earnings of 2 cents per share on revenue of $120.05 million fo ...

Summary of Ooma's Acquisition of Phone.com Conference Call Company and Industry - **Company**: Ooma - **Acquisition Target**: Phone.com - **Industry**: Unified Communication as a Service (UCaaS) for small and medium-sized businesses Key Points and Arguments 1. **Acquisition Details**: Ooma has signed a definitive agreement to acquire Phone.com for **$23.2 million in cash**. The acquisition is expected to close in about **30 days** pending regulatory approvals and other conditions [5][11][30] 2. **Financial Expectations**: Phone.com is projected to add **$22 million to $23 million** in revenue and **$1 million to $1.5 million** in adjusted EBITDA annually before synergies [6][11] 3. **Customer Base**: Phone.com currently serves approximately **36,000 customers** and **87,000 users** in North America through its proprietary UCaaS platform [6][12] 4. **Recurring Revenue**: The majority of Phone.com's revenue is recurring service revenue, which is expected to contribute positively to Ooma's financials starting from the closing date of the transaction [11] 5. **Tax Benefits**: The acquisition includes Phone.com's net operating loss tax benefit of over **$8 million**, which is anticipated to enhance Ooma's tax position in the future [12] 6. **Employee Integration**: Ooma will welcome around **100 employees and contractors** from Phone.com as part of the acquisition [12] 7. **Market Position**: Phone.com has been recognized with the **2025 Internet Telephony Excellence Award**, indicating a strong performance in the IP communication sector [8] 8. **Growth Potential**: Although Phone.com is currently growing slowly due to limited capital for sales and marketing, Ooma is optimistic about leveraging its resources to enhance Phone.com's growth [14] 9. **Technology Strategy**: Ooma plans to maintain the Phone.com platform while coordinating new feature development to avoid duplication of efforts, particularly in AI development [15] 10. **Future Outlook**: The combination of Phone.com and another recent acquisition, FluentStream, is expected to add over **$45 million** in revenue and over **$10 million** in adjusted EBITDA to Ooma next year [9] Additional Important Information 1. **User Metrics**: Phone.com's average revenue per user per month is around **$20**, with a historical net dollar retention rate in the mid-90% range [12] 2. **Market Dynamics**: Ooma's strategy includes pursuing smaller acquisitions to augment organic growth, with a focus on acquiring businesses that fit well with its operations [24] 3. **Competitive Landscape**: There has been a decrease in activity from other companies and private equity firms in the UCaaS space, creating opportunities for Ooma to acquire businesses at favorable prices [23] 4. **Margin Profile**: Phone.com's gross margin profile is good but not as strong as Ooma's, with expectations that it will improve as they scale together [26] This summary encapsulates the key points discussed during the conference call regarding Ooma's acquisition of Phone.com, highlighting the strategic, financial, and operational implications of the deal.

Core Viewpoint - Ooma, Inc. has signed a definitive agreement to acquire Phone.com for approximately $23.2 million in cash, aiming to enhance its position in the small and medium-sized business (SMB) communications market [1][3][7] Acquisition Details - The acquisition is expected to close in the fourth quarter of Ooma's fiscal year 2026, pending regulatory approvals and customary closing conditions [3][4] - Phone.com is projected to generate annual revenues of $22-$23 million and adjusted EBITDA of $1.0-$1.5 million based on current run rates [4][7] - The cash purchase price reflects an approximate 1.0x revenue multiple based on Phone.com's current run rate [7] Strategic Implications - This acquisition is part of Ooma's strategy to extend its leadership in serving SMB customers and is expected to add approximately 87,000 business users [6][7] - Ooma plans to finance the acquisition through a combination of cash on hand and bank debt [4][7] - The integration of Phone.com is anticipated to create synergies and enhance Ooma's overall business value [6][7] Company Background - Phone.com, founded in 2006, serves approximately 36,000 customers and 87,000 users across North America, focusing on cloud communications for SMBs [5][6] - Ooma provides a range of communication services, including Ooma Office, which is designed for small to medium-sized businesses [11]