Financial Performance - Total revenue for Q3 Fiscal 2025 was $65.1 million, representing a 9% year-over-year increase, primarily driven by growth in Ooma Business[60] - Total revenue for the three months ended October 31, 2024, was $65,127,000, representing a 9% increase from $59,856,000 in the same period last year[69] - For the nine months ended October 31, 2024, total revenue was $191,755,000, a 10% increase from $175,061,000 in the prior year[71] - Subscription and services revenue from Ooma Business grew 7% year-over-year, attributed to user growth[60] - Subscription and services revenue increased by $4.2 million or 8% year-over-year, driven by an increase in core users and AirDial lines[70] - Subscription and services revenue for the nine months increased by $14.4 million or 9%, attributed to organic growth and contributions from the acquisition of 2600Hz[71] - Product and other revenue rose by $1.0 million or 26% year-over-year, primarily due to increased AirDial units shipped and sales of accessories[70] Profitability and Margins - Total gross margin was 60%, compared to 62% in the prior year quarter[60] - Adjusted EBITDA increased to $5.7 million from $5.0 million in the prior year quarter[60] - Gross profit for the three months ended October 31, 2024, was $39,270,000, up from $36,939,000, reflecting a 6% increase[72] - The gross margin for subscription and services decreased to 70% from 71% year-over-year, while product and other revenue gross margin improved to negative 57% from negative 74%[73] Expenses - Operating expenses for the three months ended October 31, 2024, totaled $41,556,000, compared to $37,957,000 in the prior year, marking a 9% increase[72] - Sales and marketing expenses increased by $3.2 million or 6% year-over-year, primarily due to a $4.4 million increase in personnel-related costs[76] - Research and development expenses rose by $5.4 million or 15% year-over-year, mainly driven by a $4.2 million increase in personnel-related costs[76] - General and administrative expenses increased by $3.0 million or 15% year-over-year, largely due to a $1.9 million rise in personnel-related costs[76] - Total operating expenses for the nine months ended October 31, 2024, were $122.7 million, up from $111.1 million, reflecting a year-over-year increase of $11.6 million or 10%[76] Cash Flow and Liquidity - As of October 31, 2024, total cash and cash equivalents were $17.1 million, down from $17.5 million as of January 31, 2024[60] - Net cash provided by operating activities for the nine months ended October 31, 2024, was $18.8 million, an increase of $12.0 million year-over-year[79] - Cash used in investing activities was $4.8 million, a decrease of $26.3 million year-over-year, primarily due to the absence of cash outflow for the 2600Hz acquisition[81] - Cash used in financing activities was $14.4 million, reflecting an increase of $33.4 million year-over-year, mainly due to repayments of borrowings under the Credit Agreement[82] - As of October 31, 2024, the company had $17.1 million in cash and cash equivalents, sufficient to meet cash needs for at least the next 12 months[78] Debt and Credit Facilities - Total debt decreased to $3.0 million from $16.0 million as of January 31, 2024[60] - The company entered into a secured revolving credit facility allowing borrowing up to $30.0 million, with $3.0 million outstanding as of October 31, 2024[83] User Metrics - Core users remained stable at 1,242 as of October 31, 2024, with Ooma Business users increasing to approximately 41% of total core users[62] - Annualized exit recurring revenue (AERR) grew to $234.0 million from $224.9 million year-over-year, driven by an increase in average revenue per core user[62] - Net dollar subscription retention rate remained strong at 99%, indicating effective user retention and growth[62] Net Loss - GAAP net loss was $2.4 million, a decline from net income of $2.3 million in the prior year quarter due to continued investments and a non-recurring tax benefit[60]

Financial Data and Key Metrics Changes - Ooma achieved record revenue of $65.1 million in Q3 2025, a 9% increase year-over-year, exceeding guidance [11][24] - Non-GAAP net income for Q3 was $4.6 million, surpassing the guidance range of $4.1 million to $4.3 million [34] - Adjusted EBITDA reached $5.7 million, another record for the company, representing 9% of total revenue [34] - Cash flow from operations was $8.1 million, marking a record quarterly performance [35] - The company is now debt-free after paying off the remaining $3 million of debt following a total debt reduction of $18 million over the past year [11][36] Business Line Data and Key Metrics Changes - Ooma Business contributed 62% of total revenue in Q3, up from 58% a year ago, driven by strong performance in Ooma Office [12] - Business subscription and services revenue grew 13% year-over-year, while residential subscription services revenue declined by 1% [27] - The percentage of new users opting for premium tiers in Ooma Office increased to 60% in Q3, up from 56% in the prior year [29] Market Data and Key Metrics Changes - The market for AirDial, a solution for POTS replacement, is heating up, contributing to significant sales growth in Q3 [14] - Ooma signed several larger customers for AirDial, including a top-tier national cable company and an aggregator/CLEC [16][19] - The company ended Q3 with 1,242,000 core users, slightly down from the previous quarter, primarily due to seat reductions with IWG [28] Company Strategy and Development Direction - Ooma is focused on improving operating expense leverage and executing its growth strategy while driving further bottom-line improvements [12] - The company aims to add new AirDial resale partners each quarter and is actively pursuing significant discussions [21] - Ooma is also leaning into the 2600Hz platform to capitalize on market needs for replacing older solutions [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market dynamics, particularly for AirDial and residential POTS replacement, despite potential churn from IWG [43][72] - The macro environment appears stable, with no significant negative impacts observed post-election [99] - Management anticipates continued growth in business subscription and services revenue, with a projected 13% growth rate for fiscal 2025 [40] Other Important Information - Total operating expenses for Q3 were $35.6 million, a 7% increase year-over-year, driven by higher sales and marketing expenses [33] - The company ended the quarter with total cash and investments of $17.1 million [35] - Ooma's annual exit recurring revenue grew to $234 million, up 4% year-over-year [30] Q&A Session Summary Question: Comments on 2600Hz acquisition and market dynamics - Management noted that the acquisition has revealed tremendous opportunities, especially with the sunset of older platforms like Metaswitch [48][50] Question: Expectations for EBITDA margins - Management indicated a potential for double-digit EBITDA margins next year, with current projections showing a 9.2% margin for Q4 [59][61] Question: Clarification on AirDial bookings - Management confirmed that Q3 bookings for AirDial were higher than in Q2 [66] Question: Impact of IWG churn on revenue guidance - Management stated that the impact of IWG churn would not be significant, as it was already accounted for in Q3 [78][82] Question: Future capital allocation strategies - Management plans to be opportunistic with stock buybacks and is also looking to build inventory for AirDial [104][106] Question: Outlook for net retention rate - Management expects net retention rates to stabilize in the 98%-99% range in the short term, with potential improvements as churn from IWG subsides [113]

Company Performance - Ooma reported quarterly earnings of $0.17 per share, exceeding the Zacks Consensus Estimate of $0.16 per share, and up from $0.15 per share a year ago, representing an earnings surprise of 6.25% [1] - The company achieved revenues of $65.13 million for the quarter ended October 2024, surpassing the Zacks Consensus Estimate by 1.32% and increasing from $59.86 million year-over-year [2] - Ooma has consistently surpassed consensus EPS estimates for the last four quarters [2] Stock Performance - Ooma shares have increased approximately 39.1% since the beginning of the year, outperforming the S&P 500's gain of 26.8% [4] - The current Zacks Rank for Ooma is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.14 on revenues of $64.04 million, and for the current fiscal year, it is $0.58 on revenues of $254.95 million [8] - The estimate revisions trend for Ooma is mixed, and changes in earnings expectations may occur following the recent earnings report [7] - The outlook for the Communication - Components industry, where Ooma operates, is currently in the top 34% of Zacks industries, suggesting a favorable environment for stock performance [9]

Smart Connected Services Investor Presentation D e c e m b e r 4 , 2 0 2 4 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 ...

Financial Performance - Total revenue for Q3 2025 was $65.1 million, representing a 9% year-over-year increase[3] - Subscription and services revenue increased to $60.1 million, accounting for 92% of total revenue, driven by growth in Ooma Business and contributions from 2600hz[3] - GAAP net loss was $2.4 million, compared to a GAAP net income of $2.3 million in Q3 2024, which included a tax benefit of $3.2 million[3] - Non-GAAP net income was $4.6 million, or $0.17 per diluted share, up from $4.0 million, or $0.15 per diluted share in the prior year[3] - Adjusted EBITDA for Q3 2025 was $5.7 million, an increase from $5.0 million in Q3 2024[3] - For Q4 2025, total revenue is expected to be between $64.6 million and $65.1 million, with a GAAP net loss projected between $1.2 million and $1.5 million[5] - For the full fiscal year 2025, total revenue is expected to be between $256.3 million and $256.8 million, with a GAAP net loss projected between $7.8 million and $8.1 million[6] Business Growth - Business subscription and services revenue grew by 13% year-over-year in Q3 2025[4] - The company signed two large new resale partners for AirDial and launched a major new customer for 2600hz in Q3 2025[4] - Ooma's solutions currently power over 1.2 million users, indicating a strong market presence[16] Historical Comparison - Total revenue for the three months ended October 31, 2024, was $65,127,000, representing a 10.3% increase from $59,856,000 for the same period in 2023[21] - Subscription and services revenue increased to $60,135,000 for the three months ended October 31, 2024, up from $55,886,000 in the prior year, marking a growth of 4.5%[21] - Revenue for the three months ended October 31, 2024, was $65,127,000, representing a 8.5% increase from $59,856,000 for the same period in 2023[26] Assets and Liabilities - Total current assets decreased to $55,089,000 as of October 31, 2024, down from $63,679,000 at the end of January 31, 2024, a decline of 13.5%[19] - Total liabilities decreased to $66,098,000 as of October 31, 2024, from $81,166,000 at the end of January 31, 2024, a reduction of 18.5%[19] Operating Performance - Operating expenses for the three months ended October 31, 2024, were $41,556,000, up from $37,957,000 in the same period last year, an increase of 9.5%[21] - The company reported a net loss of $2,364,000 for the three months ended October 31, 2024, compared to a net income of $2,285,000 for the same period in 2023[21] - Cash and cash equivalents at the end of the period were $17,131,000, a decrease from $18,872,000 at the end of the previous year[24] - The company’s accumulated deficit increased to $(139,918,000) as of October 31, 2024, compared to $(133,278,000) at the end of January 31, 2024[19] Research and Development - The company plans to continue investing in research and development, with R&D expenses rising to $14,234,000 for the three months ended October 31, 2024, compared to $12,540,000 in the prior year, an increase of 13.5%[21] Profitability Metrics - Non-GAAP gross profit for the three months ended October 31, 2024, was $40,265,000, compared to $37,372,000 for the same period in 2023, reflecting a 5.1% increase[26] - Non-GAAP net income for the three months ended October 31, 2024, was $4,561,000, up from $4,018,000 in the same period of 2023, indicating a 13.5% increase[26] - Adjusted EBITDA for the three months ended October 31, 2024, was $5,709,000, compared to $4,990,000 for the same period in 2023, showing a 14.4% increase[26] - GAAP gross margin for the three months ended October 31, 2024, was 60%, while the Non-GAAP gross margin was 62%[26] - Non-GAAP operating income for the three months ended October 31, 2024, was $4,639,000, compared to $3,949,000 for the same period in 2023, reflecting a 17.5% increase[26] - Stock-based compensation and related taxes for the three months ended October 31, 2024, amounted to $4,575,000, compared to $3,766,000 for the same period in 2023[26] - GAAP operating loss for the three months ended October 31, 2024, was $(2,286,000), compared to $(1,018,000) for the same period in 2023[26] - The weighted-average diluted shares for the three months ended October 31, 2024, were 26,837,594, compared to 25,990,264 for the same period in 2023[26]

Wall Street analysts expect Ooma (OOMA) to post quarterly earnings of $0.16 per share in its upcoming report, which indicates a year-over-year increase of 6.7%. Revenues are expected to be $64.28 million, up 7.4% from the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Prior to a company's earnings announcement, it is crucial to consider ...

Ooma (OOMA) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. Individual investors often fi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-37493 Ooma, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 06-1713274 (State or other jurisdiction of incorp ...

Financial Data and Key Metrics Changes - Q2 revenue was $64.1 million, up 10% year-over-year, and non-GAAP net income was $4.1 million, exceeding guidance [6][14] - Cash flow from operations was $7.1 million, nearly double that of Q1 and Q2 of the previous year [7] - Total subscription and services revenue was $59.6 million, or 93% of total revenue, compared to $54.7 million, or 94% in the prior year [15] Business Line Data and Key Metrics Changes - Business subscription and services revenue grew 15% year-over-year in Q2, driven by user growth and the addition of 2600Hz [15] - Ooma Office saw increased user engagement with 58% of new office users opting for higher-tier services, up from 55% in the prior quarter [16] - Ooma AirDial closed more new customers than any previous quarter, with significant sales momentum [9] Market Data and Key Metrics Changes - The residential market opportunity is expanding as POTS lines increase in cost and begin to sunset, with Ooma Telo positioned as a replacement solution [12] - The 2600Hz platform is experiencing expanded customer interest both domestically and internationally, driven by market dynamics [10] Company Strategy and Development Direction - The company is reaching a turning point to capitalize on previous investments and market opportunities, aiming for increased bottom-line results [13] - Ooma is focused on diversifying its offerings across business solutions, wholesale, and POTS replacement, with a strategic emphasis on growth in all areas [32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming quarters, highlighting new customer relationships and the potential for significant growth [21] - The company anticipates a strong pipeline of opportunities, particularly with large customer wins expected to contribute to growth [34] Other Important Information - The company reduced its debt by $3 million in Q2, bringing the total outstanding debt to $8.5 million [19] - Annual exit recurring revenue grew to $233 million, up 8% year-over-year, with a gross margin of 72% [16][51] Q&A Session Summary Question: Updates on the sales cycle or install pace for AirDial customers - Management noted that larger customers often start with proof of concepts before full rollout, while smaller customers can be installed quickly [22] Question: Impact of the Top 10 service provider selling AirDial and Telo - Management indicated that both offerings are significant opportunities, but specific guidance on future impacts was not provided [23][24] Question: Guidance on adjusted net income for upcoming quarters - Management explained that anticipated churn and one-time revenue impacts were factored into the guidance [25][26] Question: Pipeline focus between wholesale and CPaaS customers - The pipeline is currently more skewed towards wholesale opportunities, with ongoing developments in the CPaaS model [30] Question: Update on the large 2600Hz customer rollout - The customer is expected to launch in beta in September, with a full rollout anticipated by year-end [44] Question: Size of the residential and enterprise opportunity with the local carrier - Management refrained from providing specific numbers but indicated that the opportunity is substantial given the carrier's size [45] Question: Update on UScellular and T-Mobile partnerships - Both partnerships are progressing well, with T-Mobile fully embracing AirDial and UScellular beginning to sell Ooma Office [50]

Ooma (OOMA) came out with quarterly earnings of $0.15 per share, beating the Zacks Consensus Estimate of $0.14 per share. This compares to earnings of $0.14 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 7.14%. A quarter ago, it was expected that this internet phone service provider would post earnings of $0.11 per share when it actually produced earnings of $0.14, delivering a surprise of 27.27%. Over the last four quarters, ...