Ooma(OOMA) - 2025 Q3 - Quarterly Results

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]