Ooma(US:OOMA)2025-06-06 21:35Revenue Performance - Total revenue for the first quarter of fiscal 2026 was $65.0 million, representing a 4% year-over-year increase, primarily driven by growth in Ooma Business[78]. - Total revenue for the three months ended April 30, 2025, was $65.029 million, a 4% increase from $62.499 million in the same period of 2024[99]. - Subscription and services revenue from Ooma Business grew 6% year-over-year, mainly due to user growth[78]. - Subscription and services revenue increased by $1.9 million or 3% year-over-year, driven by an increase in AirDial lines and average revenue per core user[100]. - Product and other revenue rose by $0.7 million or 16% year-over-year, primarily due to increased AirDial shipments[101]. Financial Metrics - Adjusted EBITDA for the first quarter was $6.7 million, compared to $5.0 million in the prior year quarter[78]. - The net dollar subscription retention rate remained stable at 99% year-over-year, indicating strong customer retention[81]. - Total gross margin improved to 62%, up from 61% in the prior year quarter[78]. - Gross profit for total revenue was $40.209 million, reflecting a 5% increase from $38.115 million in the prior year[102]. - The gross margin for subscription and services remained consistent at 70% year-over-year[103]. Operating Expenses - Operating expenses for the first quarter totaled $40.3 million, slightly down from $40.9 million in the prior year quarter[98]. - Operating expenses decreased by 1% year-over-year to $40.266 million, with research and development expenses down by 10%[105]. Cash Position - As of April 30, 2025, total cash and cash equivalents were $19.0 million, up from $17.9 million as of January 31, 2025[78]. - As of April 30, 2025, the company had $19.0 million in cash and cash equivalents, sufficient to meet cash needs for at least the next 12 months[109]. - Net cash provided by operating activities was $3.703 million, an increase of $0.1 million year-over-year[110]. - Cash used in investing activities was $1.223 million, a decrease of $0.2 million compared to the previous year[113]. User Metrics - Core users decreased to 1,225 as of April 30, 2025, down from 1,239 a year earlier, with Ooma Business users now comprising approximately 41% of total core users[79]. - Annualized exit recurring revenue (AERR) grew to $234.0 million, up from $227.6 million year-over-year, driven by an increase in average revenue per core user[79][80]. Debt and Financing - The company entered into a secured revolving credit facility allowing borrowing up to $30.0 million, potentially increased to $50.0 million[115]. Net Loss - GAAP net loss narrowed to $0.1 million, compared to a net loss of $2.1 million in the prior year quarter, reflecting operational improvements[78].