Financial Performance - Ooma's multi-tenant SaaS platform generated $262 million in revenue with $25 million in adjusted EBITDA[7] - The company boasts an annual exit recurring revenue (AERR) of $240 million[7] - Recurring gross profit margin stands at 72%[7] - Ooma business subscription and services revenue accounted for 62% of overall subscription and services revenue in 2QF26[45] User Base and Growth - Ooma has over 1.2 million core users[7] - The net dollar subscription retention rate (NDR) is 100%[7] - The company serves customers in 32 countries[42] Market and Strategy - The worldwide hosted voice/UC public cloud (UCaaS) market is projected to reach $32 billion by 2028[26] - Ooma is targeting a >10 million line U S market opportunity in POTS (copper line) replacement[39] - Ooma's integrated growth strategy includes advertising, customer referrals, direct sales, resellers/partners, geographic expansion, and retailers, with a Net Promoter Score of 73%[41]

Ooma (OOMA) FY Conference Summary Company Overview - Ooma is a provider of communication services, specifically cloud telephone service and Unified Communications as a Service (UCaaS) [3][4] - The company operates in four segments: residential phone service, small business phone service, enterprise solutions, and wholesale platforms [17][26] Financial Performance - Ooma reported total revenue of $259 million for the last four quarters, with a year-over-year growth of 7% [5] - Adjusted EBITDA for the same period was $25 million, reflecting a 24% increase [5] - Annual exit recurring revenue (ARR) stands at $234 million, with a retention rate of 72% [6] - The company has a high gross margin of 72% on subscription revenue and a total gross margin of 63% [35] User Metrics - Ooma has over 1.2 million core users, with a monthly average revenue per user (ARPU) of approximately $15 [6][13] - Business ARPU is reported at over $23, while residential ARPU is around $19 [34] Market Opportunities - There are an estimated 6 million businesses in North America with 1 to 20 employees, with about half yet to transition to cloud solutions, presenting a significant market opportunity [16] - The company is targeting the replacement of copper lines, with an estimated 10 million lines in the U.S. being phased out [17][18] Product Segments - **Residential Product Line**: Ranked number one by Consumer Reports, offering affordable phone services [9][15] - **Small Business Solutions**: Ooma Office allows small businesses to access powerful communication features at a low cost, catering to their unique needs [10][12] - **Enterprise Solutions**: Focused on verticals like hospitality, with over 500 hotels in North America using Ooma's services [11] - **AirDial**: A solution for replacing copper lines, designed to maintain existing equipment while providing advanced features [19][22] Strategic Partnerships - Ooma has signed over 30 resellers for AirDial, including major partners like T-Mobile and Comcast, enhancing market reach [22] - The company has a significant partnership with Marriott, certifying Ooma AirDial for all their properties, which includes over 5,000 locations in North America [51] Growth Strategy - Ooma aims to reach 300,000 lines for AirDial, which could generate an additional $100 million in recurring revenue annually [23] - The company is focused on acquiring small business user bases through strategic acquisitions, typically targeting businesses with $10 million to $25 million in revenue [38] Financial Outlook - Ooma expects to improve adjusted EBITDA margins to 11% by Q4 of the current year, with a long-term goal of reaching 20% to 25% in the next four to five years [43] - The company plans to continue using free cash flow for stock buybacks, having spent $12 million in the last twelve months [39][40] Conclusion - Ooma is positioned in a growing market with a strong financial foundation, focusing on differentiated solutions in the cloud communications space, particularly through its unique offerings like AirDial and the 2,600 Hertz platform [59]

Financial Data and Key Metrics Changes - For Q1 FY 2026, the company achieved revenue of $65 million, a 4% year-over-year growth, and non-GAAP net income of $5.6 million, which is a 56% increase compared to the prior year [9][17][22] - Adjusted EBITDA for the quarter was $6.7 million, representing a 33% growth over the prior year [22] - The annual exit recurring revenue was $234 million, up 33% year over year [19] Business Line Data and Key Metrics Changes - Business subscription and services revenue grew 6% year over year, accounting for 62% of total subscription and services revenue [16][17] - Residential subscription and services revenue declined by 2% year over year [17] - Ooma Office expanded its new account wins and users, with 61% of new Office users opting for a premium service tier, the highest ever [10][19] Market Data and Key Metrics Changes - The company serves over 500 hotels across North America, indicating strong traction in the hospitality sector [11][60] - The number of Airdial reseller partners increased to over 30, with significant new customer wins in Q1 [13][52] Company Strategy and Development Direction - The company focuses on four market segments: cloud communications for small businesses, POTS replacement, wholesale platform services, and residential telephony [9][10] - The company is optimistic about the growth of Airdial, especially with the partnership with Comcast, which launched Airdial on schedule [12][38] - The company aims to enhance its product offerings and expand its market reach, particularly in the hospitality and larger business segments [11][46] Management's Comments on Operating Environment and Future Outlook - Management noted a steady demand environment for UCaaS solutions, while demand for Airdial is accelerating [32][33] - The company expects to maintain a net dollar subscription retention rate of around 99% going forward [29] - Management expressed confidence in achieving higher profitability and adjusted EBITDA margins in the future [93] Other Important Information - The company generated $3.7 million of operating cash flow and $2.5 million of free cash flow in Q1 [22][23] - Total operating expenses for Q1 were $35.4 million, up 1% year over year, with a focus on sales and marketing for Airdial [21][22] Q&A Session Summary Question: What contributed to the 1% increase in NRR this quarter? - The retention rate improvement was largely due to the improvement in non-Regis subscription revenue, offsetting the anticipated decline from Regis [28][29] Question: What are you seeing in the demand environment? - The demand environment for UCaaS solutions has remained steady, while Airdial demand is accelerating [32][33] Question: Is there any change to visibility on Airdial adoption? - Early opportunities with larger accounts are promising, but it takes time to move through the sales cycle [38] Question: What impact have tariffs had on your subscriber base? - There has been no significant impact from tariffs on the customer base or sales opportunities [40] Question: What areas will you be investing in moving forward? - The company is reallocating sales and marketing spend towards Airdial and 2600 Hertz, while maintaining significant R&D investment [44][46] Question: How productive are your Airdial partners? - The company is pleased with the traction of its largest partners and is seeing good success across its reseller network [51][52] Question: What is the outlook for the hospitality sector? - The company targets winning 50 to 100 hotels per quarter and sees significant opportunity in this segment [60] Question: Are there any significant changes in the competitive environment? - The company continues to focus on its four segments to maintain a competitive advantage, with no specific changes noted [68] Question: Are you talking with other cable companies? - The company is actively engaging with new reseller partners and aims to add partners consistently [74] Question: What is the timeline for integrating Ooma apps into 2600 Hertz? - The integration is expected to be completed by the end of the year [80] Question: Have you seen any change in sales cycles for 2600 Hertz? - There is good momentum in customer wins, but it is unclear if this is due to the market or the company's efforts [82]

Financial Data and Key Metrics Changes - For Q1 FY 2026, the company achieved revenue of $65 million, a 4% year-over-year growth, and non-GAAP net income of $5.6 million, which is a 56% increase compared to the prior year [8][16][22] - Adjusted EBITDA for the quarter was $6.7 million, representing a 33% growth year-over-year [22] - The annual exit recurring revenue was $234 million, up 33% year-over-year [19] Business Line Data and Key Metrics Changes - Business subscription and services revenue grew 6% year-over-year, accounting for 62% of total subscription and services revenue [16][17] - Residential subscription and services revenue declined by 2% year-over-year [17] - Ooma Office saw an increase in new account wins, with 61% of new Office users opting for a premium service tier, the highest ever [11][19] Market Data and Key Metrics Changes - The company serves over 500 hotels across North America, indicating strong traction in the hospitality sector [10][60] - The number of Airdial reseller partners increased to over 30, with significant new customer wins in Q1 [13][52] Company Strategy and Development Direction - The company focuses on four market segments: cloud communications for small businesses, POTS replacement, wholesale platform services, and residential telephony [8][9] - The company is optimistic about Airdial growth and has made significant investments in developing solutions for its target segments [26] - The company aims to maintain a strong gross margin of 72% for subscription and services while investing in infrastructure to support growth [20][49] Management's Comments on Operating Environment and Future Outlook - Management noted a steady demand environment for UCaaS solutions, while demand for Airdial is accelerating [32][33] - The company expects to see continued growth in adjusted EBITDA and free cash flow, reaffirming its revenue guidance for FY 2026 [24][25] Other Important Information - The company ended Q1 with total cash and investments of $19 million and generated $3.7 million of operating cash flow [22][23] - The company is raising the low end of its non-GAAP net income guidance for FY 2026 to a range of $22.5 million to $23.5 million [25] Q&A Session Summary Question: What contributed to the 1% increase in NRR this quarter? - The retention rate improvement was largely due to the improvement in non-Regis subscription revenue, offsetting the anticipated decline from Regis [28][29] Question: What are you seeing in the demand environment? - The demand environment for UCaaS solutions has remained steady, while Airdial demand is accelerating [32][33] Question: Is there any change to visibility on when adoption will begin to ramp? - The company is optimistic about early opportunities with Comcast and expects continued growth through the year [37][38] Question: What impact have tariffs had on your subscriber base? - There has been no significant impact from tariffs on the customer base or sales opportunities [39] Question: What areas will you be investing in moving forward? - The company is reallocating sales and marketing spend towards Airdial and 2600 Hertz, while maintaining significant R&D investment [44][46] Question: Can you quantify the number of lines that churned at Regis? - Approximately $12,000 to $13,000 in churn occurred over the last two quarters at Regis [90][92] Question: What is a reasonable goal for adjusted EBITDA margin in the future? - The company believes there is potential for significantly higher adjusted EBITDA margins in the future [96]

Financial Performance - Ooma's revenue reached $259 million, with a 7% year-over-year growth[7] - Adjusted EBITDA was $25 million, showing a 24% year-over-year increase[7] - Annual Exit Recurring Revenue (AERR) amounted to $234 million[7] - Recurring Gross Profit Margin stood at 72%[7] Customer Base and Retention - The company has over 12 million core users[7] - Net dollar subscription retention rate (NDR) is 99%[7] Market and Growth Opportunities - The North American Business Market is experiencing a -4% CAGR[27] - The Worldwide hosted voice/UC public cloud (UCaaS) market is experiencing a 17% CAGR[27] - All other VoIP is experiencing a 36% CAGR[27] - Ooma is targeting the POTS (copper line) replacement market, estimated at >10 million lines in the U S [31]

Financial Data and Key Metrics Changes - For Q4 FY'25, the company achieved revenue of $65.1 million and non-GAAP net income of $5.8 million, marking a solid growth compared to previous quarters [10][11] - For the full fiscal year 2025, revenue grew 8% year-over-year to $256.9 million, with non-GAAP net income increasing 17% to $18 million [28][29] - The company generated over $20 million in free cash flow and repurchased approximately $9 million of its stock [11][39] Business Line Data and Key Metrics Changes - Business subscription and services revenue accounted for 61% of total revenue in Q4, up from 60% in the prior quarter, with a year-over-year growth of 13% [26][28] - Residential subscription and services revenue decreased by 1% year-over-year in Q4 [29] - The blended average monthly subscription and services revenue per core user increased by 4% year-over-year to $15.26, driven by a higher mix of business users [32] Market Data and Key Metrics Changes - The company ended Q4 with 1,234,000 core users, a slight decline from 1,242,000 in the previous quarter, primarily due to seat reductions with IWG [31] - The annual exit recurring revenue was $234 million, up 3% year-over-year, with a net dollar subscription retention rate of 98% [33] Company Strategy and Development Direction - The company focuses on four market segments: cloud communications for small businesses, POTS replacement, wholesale platform services, and residential telephony [12][47] - Plans for FY'26 include expanding features for small to medium-sized businesses, enhancing POTS replacement solutions, and strengthening the 2600Hz platform [21][22][47] - The company aims to add new resale partners quarterly and enhance sales activities across all routes to market [16][55] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the SMB environment, noting that business activity has remained strong post-holidays [51] - The company is cautious about its outlook due to expected churn from IWG and the timing of new partner revenue ramps [44][68] - Management believes the POTS replacement market opportunity is significant, with many businesses yet to transition from traditional lines [12][102] Other Important Information - The company reported a total gross margin of 63% for Q4, consistent with the prior year, despite a heavier mix of product revenue [35] - Operating expenses for Q4 were $35.1 million, with sales and marketing expenses increasing due to higher marketing activities for AirDial and 2600Hz [36] Q&A Session Summary Question: What are you seeing in the SMB environment? - Management indicated that the SMB environment remains strong, with activity picking up in January after the holiday season [51] Question: Can you provide more details on assisting resale partners? - Management highlighted that they have over 20 partners for AirDial and are focused on adding a couple of resellers each quarter [55] Question: How many POTS lines does Marriott have? - Marriott has over 5,000 properties in the U.S., and the brand certification for AirDial is expected to facilitate sales [58][60] Question: What is the visibility on the large cable partner for POTS replacement? - Management noted limited visibility on the partner's launch and sales generation but expressed optimism about the market's movement towards POTS replacement [62][64] Question: Will there be continued churn from IWG after Q1? - Management expects stabilization after Q1, with potential growth opportunities arising from new initiatives with IWG [68] Question: What is the outlook for the SMB market excluding AirDial? - Management emphasized a balanced approach across all segments, with significant opportunities remaining in the SMB market [75] Question: What is the growth expectation for the business segment in FY'26? - Management anticipates faster growth in the second half of FY'26, driven by AirDial installations [87] Question: How is the growth from the 2600Hz deal progressing? - Management indicated that growth from 2600Hz will take time, focusing on new customer acquisition and monetizing existing services [92][94] Question: What are the competitive dynamics in the POTS replacement market? - Management acknowledged competition from aggregators but believes they have a superior product solution [103][104]