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Ooma(OOMA) - 2025 Q3 - Quarterly Results
OOMAOoma(OOMA)2024-12-04 21:16

Financial Performance - Total revenue for Q3 2025 was 65.1million,representinga965.1 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 2.4million,comparedtoaGAAPnetincomeof2.4 million, compared to a GAAP net income of 2.3 million in Q3 2024, which included a tax benefit of 3.2million[3]−Non−GAAPnetincomewas3.2 million[3] - Non-GAAP net income was 4.6 million, or 0.17perdilutedshare,upfrom0.17 per diluted share, up from 4.0 million, or 0.15perdilutedshareintheprioryear[3]−AdjustedEBITDAforQ32025was0.15 per diluted share in the prior year[3] - Adjusted EBITDA for Q3 2025 was 5.7 million, an increase from 5.0millioninQ32024[3]−ForQ42025,totalrevenueisexpectedtobebetween5.0 million in Q3 2024[3] - For Q4 2025, total revenue is expected to be between 64.6 million and 65.1million,withaGAAPnetlossprojectedbetween65.1 million, with a GAAP net loss projected between 1.2 million and 1.5million[5]−Forthefullfiscalyear2025,totalrevenueisexpectedtobebetween1.5 million[5] - For the full fiscal year 2025, total revenue is expected to be between 256.3 million and 256.8million,withaGAAPnetlossprojectedbetween256.8 million, with a GAAP net loss projected between 7.8 million and 8.1million[6]BusinessGrowth−Businesssubscriptionandservicesrevenuegrewby138.1 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 59,856,000forthesameperiodin2023[21]−Subscriptionandservicesrevenueincreasedto59,856,000 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 55,886,000intheprioryear,markingagrowthof4.555,886,000 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 59,856,000forthesameperiodin2023[26]AssetsandLiabilities−Totalcurrentassetsdecreasedto59,856,000 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 63,679,000attheendofJanuary31,2024,adeclineof13.563,679,000 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 81,166,000attheendofJanuary31,2024,areductionof18.581,166,000 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 37,957,000inthesameperiodlastyear,anincreaseof9.537,957,000 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 2,285,000forthesameperiodin2023[21]−Cashandcashequivalentsattheendoftheperiodwere2,285,000 for the same period in 2023[21] - Cash and cash equivalents at the end of the period were 17,131,000, a decrease from 18,872,000attheendofthepreviousyear[24]−Thecompany’saccumulateddeficitincreasedto18,872,000 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 12,540,000intheprioryear,anincreaseof13.512,540,000 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 37,372,000forthesameperiodin2023,reflectinga5.137,372,000 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 4,018,000inthesameperiodof2023,indicatinga13.54,018,000 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 4,990,000forthesameperiodin2023,showinga14.44,990,000 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 3,949,000forthesameperiodin2023,reflectinga17.53,949,000 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 3,766,000forthesameperiodin2023[26]−GAAPoperatinglossforthethreemonthsendedOctober31,2024,was3,766,000 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]