Core Financial Performance - Ooma reported revenue of $67.63 million for the quarter ended October 2025, a year-over-year increase of 3.8% [1] - The EPS for the same period was $0.27, compared to $0.17 a year ago, indicating a significant improvement [1] - The reported revenue exceeded the Zacks Consensus Estimate of $67.58 million, resulting in a surprise of +0.06% [1] - The company delivered an EPS surprise of +22.73%, with the consensus EPS estimate being $0.22 [1] Key Metrics Analysis - Core users totaled 1.23 million, slightly below the estimated 1.24 million [4] - Premium core users were 816 thousand, compared to the average estimate of 834.5 thousand [4] - Annualized exit recurring revenue (AERR) was $243 million, below the estimated $246.87 million [4] - The net dollar subscription retention rate remained strong at 99%, matching the average estimate [4] - Revenue from products and other was $5.67 million, slightly below the estimated $5.72 million, but represented a +13.6% change year-over-year [4] - Subscription and services revenue was $61.95 million, slightly above the estimated $61.87 million, reflecting a +3% change year-over-year [4] Stock Performance - Ooma's shares have returned +1.2% over the past month, matching the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [3]

分组1 - Ooma reported quarterly earnings of $0.27 per share, exceeding the Zacks Consensus Estimate of $0.22 per share, and up from $0.17 per share a year ago, representing an earnings surprise of +22.73% [1] - The company achieved revenues of $67.63 million for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 0.06%, and an increase from $65.13 million year-over-year [2] - Ooma has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] 分组2 - The stock has underperformed the market, losing about 16.5% since the beginning of the year compared to the S&P 500's gain of 16.8% [3] - The current consensus EPS estimate for the upcoming quarter is $0.23 on revenues of $69.09 million, and for the current fiscal year, it is $0.88 on revenues of $268.07 million [7] - The Communication - Components industry, to which Ooma belongs, is currently ranked in the top 19% of over 250 Zacks industries, suggesting a favorable outlook for the sector [8]

Financial Data and Key Metrics Changes - Revenue for Q3 2026 reached $67.6 million, a 4% year-over-year increase, with annual exit recurring revenue at $242.7 million, also up 4% year-over-year [8][17] - Non-GAAP net income increased to $7.7 million, a 68% year-over-year growth, and adjusted EBITDA rose to $8.6 million, representing 13% of total revenue, up from 11% in Q2 and 10% in Q1 [8][22] - Total operating expenses decreased to $34.2 million, down $1.4 million year-over-year, with sales and marketing expenses at 26% of total revenue [20][21] 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, with a 6% year-over-year growth [17][18] - Residential subscription and services revenue declined by 1% year-over-year [18] - The company added nine new resale partners in Q3, marking the strongest quarter to date for partner additions [10] 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 [19] - The average revenue per user (ARPU) increased by 4% year-over-year to $15.82, driven by a higher mix of business users [19] Company Strategy and Development Direction - The company is focused on growth through acquisitions, having recently closed the acquisition of FluentStream and expecting to close on Phone.com soon, which will add over 165,000 users and $45 million in revenue annually [12][17] - The strategy includes leveraging synergies from acquisitions to enhance profitability and expand market reach, particularly in the small and medium-sized business segment [12][13] - The company plans to launch AI solutions early next year, enhancing its service offerings and targeting larger businesses [9][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth potential, citing strong customer engagement and a healthy pipeline for future installations despite some delays [40][66] - The company does not foresee economic sensitivity impacting its SMB business, indicating a stable operating environment [66] Other Important Information - The company generated $6.9 million in operating cash flow and $5.4 million in free cash flow during Q3, with total cash and investments at $21.7 million [22][23] - The company plans to use free cash flow to pay down acquisition-related debt more quickly [24] 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 contributing to improved profitability [32] Question: What are the synergy expectations from the FluentStream and Phone.com acquisitions? - Management expects modest cost-side synergies from FluentStream and anticipates more significant overlaps and synergies with Phone.com post-acquisition [35][36] Question: What caused the guidance adjustment for the legacy business? - The adjustment was primarily due to delays in AirDial installations, reflecting the engagement with larger opportunities that require longer deployment times [40][41] Question: How does the company plan to integrate FluentStream? - The company intends to leverage FluentStream's existing strengths while optimizing operations and exploring vendor relationship opportunities [45][46] Question: What are the competitive dynamics in the hospitality sector? - The company is replacing legacy on-site PBX systems with its cloud solutions, maintaining a stable competitive landscape [73]

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]

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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]

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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]

Core Insights - Ooma, Inc. reported strong financial results for the fiscal third quarter ended October 31, 2025, with revenue of $67.6 million and non-GAAP net income of $7.7 million, reflecting a year-over-year growth of 64% in non-GAAP diluted EPS and a record adjusted EBITDA of $8.6 million, which grew 50% year-over-year [4][7]. Financial Performance - Total revenue for the third quarter was $67.6 million, representing a 4% increase year-over-year. Subscription and services revenue rose to $62.0 million from $60.1 million in the same quarter of the previous fiscal year, accounting for 92% of total revenue, primarily driven by growth in Ooma Business [7]. - GAAP net income was $1.4 million, or $0.05 per diluted share, compared to a GAAP net loss of $2.4 million, or $0.09 per basic and diluted share, in the third quarter of fiscal 2025. 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 [7][24]. - Adjusted EBITDA for the quarter was $8.6 million, up from $5.7 million in the third quarter of fiscal 2025 [7]. Business Outlook - For the fourth quarter of fiscal 2026, Ooma expects total revenue 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. Non-GAAP net income is projected to be between $8.4 million and $8.9 million, with non-GAAP net income per diluted share expected to be in the range of $0.30 to $0.32 [8]. - For the full fiscal year 2026, total revenue is anticipated to be between $270.3 million and $270.9 million, including the contribution from FluentStream, compared to prior guidance of $267.0 million to $270.0 million. Non-GAAP net income is expected to be between $28.2 million and $28.7 million, with non-GAAP net income per diluted share projected to be between $1.00 and $1.02 [8]. Strategic Initiatives - The company has recently completed the acquisition of FluentStream and is on track to complete the acquisition of Phone.com in late December. These acquisitions are viewed as significant opportunities to enhance shareholder value and are expected to contribute positively to Ooma's adjusted EBITDA, cash flow, and revenue growth [4].

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 ...