Ooma(OOMA) - 2025 Q1 - Quarterly Results

Ooma Fiscal First Quarter 2025 Financial Results Fiscal First Quarter 2025 Financial Highlights & CEO Remarks Ooma reported Q1 FY2025 total revenue of $62.5 million, up 10% year-over-year, driven by 18% business services growth, achieving $3.6 million non-GAAP net income and $5.0 million Adjusted EBITDA Q1 FY2025 Financial Highlights (vs. Q1 FY2024) | Metric | Q1 FY2025 | Q1 FY2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $62.5 million | $56.9 million | +10% YoY | | Subscription & Services Revenue | $58.4 million | $53.0 million | +10.2% YoY | | GAAP Net Loss | ($2.1 million) | ($0.3 million) | Increased Loss | | Non-GAAP Net Income | $3.6 million | $4.0 million | -10% YoY | | Adjusted EBITDA | $5.0 million | $4.8 million | +4.2% YoY | - CEO Eric Stang highlighted key achievements and strategic progress in Q1[4] - Business Growth: Achieved 18% year-over-year growth in business services revenue[4] - Financial Health: Cash flow from operations was significantly higher than the previous year, enabling a $4.5 million debt paydown[4] - Strategic Initiatives: Progress was made through feature expansion, adding new reseller partners, launching AirDial in Canada, and securing key customer wins[4] Business Outlook Ooma provided Q2 FY2025 guidance projecting total revenue between $62.5 million and $63.0 million, and full-year revenue between $250.7 million and $253.0 million, with corresponding non-GAAP net income ranges Guidance for Q2 Fiscal 2025 (ending July 31, 2024) | Metric | Projected Range | | :--- | :--- | | Total Revenue | $62.5M - $63.0M | | GAAP Net Loss | ($2.2M) - ($2.5M) | | GAAP Net Loss per Share | ($0.08) - ($0.09) | | Non-GAAP Net Income | $3.6M - $3.9M | | Non-GAAP Net Income per Share | $0.13 - $0.14 | Guidance for Full Fiscal Year 2025 (ending Jan 31, 2025) | Metric | Projected Range | | :--- | :--- | | Total Revenue | $250.7M - $253.0M | | GAAP Net Loss | ($7.7M) - ($8.7M) | | GAAP Net Loss per Share | ($0.30) - ($0.33) | | Non-GAAP Net Income | $15.0M - $16.0M | | Non-GAAP Net Income per Share | $0.55 - $0.58 | Financial Statements Condensed Consolidated Balance Sheets As of April 30, 2024, Ooma's total assets were $155.2 million, a slight decrease from $159.3 million, while total liabilities decreased to $74.2 million, primarily due to a $4.5 million debt reduction Balance Sheet Highlights (in thousands) | Account | April 30, 2024 | January 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $15,585 | $17,536 | | Total current assets | $57,382 | $63,679 | | Total assets | $155,235 | $159,253 | | Debt, net of current portion | $11,500 | $16,000 | | Total liabilities | $74,247 | $81,166 | | Total stockholders' equity | $80,988 | $78,087 | Condensed Consolidated Statements of Operations For Q1 FY2025, Ooma's total revenue grew 10% year-over-year to $62.5 million, but increased operating expenses led to a wider GAAP net loss of $2.1 million, or $0.08 per share Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 FY2025 (ended Apr 30, 2024) | Q1 FY2024 (ended Apr 30, 2023) | | :--- | :--- | :--- | | Total Revenue | $62,499 | $56,852 | | Subscription and services | $58,389 | $53,049 | | Gross Profit | $38,115 | $35,952 | | Total Operating Expenses | $40,852 | $36,560 | | Loss from Operations | ($2,737) | ($608) | | Net Loss | ($2,139) | ($326) | | Net Loss per Share | ($0.08) | ($0.01) | Condensed Consolidated Statements of Cash Flows In Q1 FY2025, Ooma generated $3.6 million in net cash from operating activities, a significant improvement, while financing activities used $3.8 million, primarily for a $4.5 million debt repayment Cash Flow Summary (in thousands) | Activity | Q1 FY2025 (ended Apr 30, 2024) | Q1 FY2024 (ended Apr 30, 2023) | | :--- | :--- | :--- | | Net cash provided by operating activities | $3,585 | $1,284 | | Net cash (used in) provided by investing activities | ($1,450) | $676 | | Net cash (used in) provided by financing activities | ($3,823) | $1,293 | | Net (decrease) increase in cash | ($1,688) | $3,253 | - Key financing activity included a $4.5 million repayment of long-term debt during the quarter[28] Reconciliation of Non-GAAP Financial Measures Ooma utilizes non-GAAP financial measures, such as non-GAAP net income and Adjusted EBITDA, to offer investors insight into its core business performance by excluding items like stock-based compensation and amortization of intangibles - The company uses non-GAAP measures to supplement GAAP results, believing they provide a better evaluation of core operating performance by excluding items like stock-based compensation, amortization of intangibles, restructuring costs, and non-recurring gains[12][13][14] Q1 FY2025 GAAP to Non-GAAP Reconciliation (in thousands) | Metric | GAAP Value | Adjustments | Non-GAAP Value | | :--- | :--- | :--- | :--- | | Net Loss / Income | | | | | GAAP Net Loss | ($2,139) | | | | Stock-based compensation | | $4,508 | | | Amortization of intangibles | | $1,484 | | | Restructuring costs | | $710 | | | Gain on note conversion | | ($980) | | | Non-GAAP Net Income | | | $3,583 | | Adjusted EBITDA | | | | | GAAP Net Loss | ($2,139) | | | | Plus: Interest, Taxes, D&A, etc. | | $7,139 | | | Adjusted EBITDA | | | $5,000 | Ancillary Information This section contains logistical and legal information, including details for the investor conference call and a standard 'Forward-Looking Statements' disclaimer outlining potential risks and uncertainties - The company hosted a conference call and webcast for analysts and investors on May 28, 2024, to discuss the financial results[9] - The press release contains forward-looking statements, including financial projections and CEO remarks, which are subject to risks and uncertainties. Key risks include inability to attract/retain customers, competition, and reliance on third-party vendors and service providers[17][18] - Ooma describes itself as a provider of smart cloud-based communications platforms and services for businesses and consumers, offering features like advanced voice, messaging, and video meetings[20]