Ooma, Inc. (NYSE: OOMA), a smart communications platform for
businesses and consumers, today released financial results for the
fiscal third quarter ended October 31, 2024.
Fiscal Third Quarter 2025 Financial Highlights:
- Revenue: Total revenue was $65.1 million, up 9%
year-over-year. Subscription and services revenue increased to
$60.1 million from $55.9 million in the third quarter of fiscal
2024, and was 92% of total revenue, primarily driven by the growth
of Ooma Business and contribution from 2600hz.
- Net Income/Loss: GAAP net loss was $2.4 million, or
$0.09 per basic and diluted share, compared to GAAP net income of
$2.3 million, or $0.09 per basic and diluted share, in the third
quarter of fiscal 2024. GAAP net income in the third quarter of
fiscal 2024 included a tax benefit for the release of a $3.2
million valuation allowance resulting from the recording of certain
intangible assets in connection with the acquisition of 2600hz.
Non-GAAP net income was $4.6 million, or $0.17 per diluted share,
compared to non-GAAP net income of $4.0 million, or $0.15 per
diluted share in the prior year period.
- Adjusted EBITDA: Adjusted EBITDA was $5.7 million,
compared to $5.0 million in the third quarter of fiscal 2024.
For more information about non-GAAP net income and Adjusted
EBITDA, see the section below titled "Non-GAAP Financial Measures"
and the reconciliation provided in this release.
“Ooma executed well in Q3 with 13% year over year growth in
business subscription and services revenue and another quarter of
record levels for Adjusted EBITDA and Cash Flow from Operations,”
said Eric Stang, chief executive officer of Ooma. “We made great
progress in Q3 not only financially but also competitively,
including by signing two large new resale partners for AirDial and
enabling the market launch of a previously announced major new
customer for 2600hz. We believe our efforts to improve operating
expense leverage are starting to take hold, we can secure
additional resale partnerships in the coming quarters, and our
strong UCaaS, POTS replacement, wholesale, and residential
solutions position us well for the future.”
Business Outlook:
For the fourth quarter of fiscal 2025, Ooma expects:
- Total revenue in the range of $64.6 million to $65.1
million.
- GAAP net loss in the range of $1.2 million to $1.5 million and
GAAP net loss per share in the range of $0.04 to $0.05.
- Non-GAAP net income in the range of $4.5 million to $4.8
million and non-GAAP net income per share in the range of $0.16 to
$0.17.
For the full fiscal year 2025, Ooma expects:
- Total revenue in the range of $256.3 million to $256.8
million.
- GAAP net loss in the range of $7.8 million to $8.1 million, and
GAAP net loss per share in the range of $0.29 to $0.30.
- Non-GAAP net income in the range of $16.7 million to $17.0
million, and non-GAAP net income per share in the range of $0.61 to
$0.62.
The following is a reconciliation of GAAP net loss to non-GAAP
net income and GAAP basic and diluted net loss per share to
non-GAAP diluted net income per share guidance for the fourth
fiscal quarter and the fiscal year ending January 31, 2025 (in
millions, except per share data):
Projected range Three Months Ending Fiscal Year
Ending January 31, 2025 January 31, 2025
(unaudited) GAAP net loss
($1.2)-($1.5)
($7.8)-($8.1)
Stock-based compensation and related taxes
4.6
18.4
Amortization of intangible assets
1.4
5.8
Gain on note conversion
—
(1.0)
Restructuring costs
—
1.6
Non-GAAP net income
$4.5-$4.8
$16.7-$17.0
GAAP net loss per share
($0.04)-($0.05)
($0.29)-($0.30)
Stock-based compensation and related taxes
0.16
0.67
Amortization of intangible assets
0.05
0.22
Gain on note conversion
—
(0.04)
Restructuring costs
—
0.06
Non-GAAP net income per share
$0.16-$0.17
$0.61-$0.62
Weighted-average number of shares used in per share
amounts: Basic
27.2
26.7
Diluted
28.1
27.6
Conference Call Information:
The company will host a conference call and live webcast for
analysts and investors at 5:00 p.m., Eastern time on December 4,
2024. The news release with the financial results will be
accessible from the company's website prior to the conference
call.
To access the call by phone, please visit
https://register.vevent.com/register/BI4e08d5a8d646423ba627f67df536483a
to register and receive the dial-in details. To avoid delays, Ooma
encourages participants to dial into the conference call ten
minutes ahead of the scheduled start time. For webcast listening,
please visit Ooma’s Events & Presentations page
https://investors.ooma.com/news-events/events-presentation for a
link.
Following the call, an archived version of the webcast will be
available on the Ooma investor relations site at
https://investors.ooma.com for 12 months.
Non-GAAP Financial Measures
In addition to disclosing financial measures prepared in
accordance with U.S. generally accepted accounting principles
(“GAAP”), this press release and the accompanying tables contain
certain non-GAAP financial measures, including: non-GAAP net
income, non-GAAP net income per share, non-GAAP gross profit and
gross margin, non-GAAP operating income, and Adjusted EBITDA.
Adjusted EBITDA represents net income before interest and other
income, income taxes, depreciation and amortization of capital
expenditures, amortization of intangible assets and acquisition
related costs, stock-based compensation and related taxes,
litigation costs, restructuring costs, gain on note conversion, and
facilities consolidation gain.
Other non-GAAP financial measures exclude stock-based
compensation expense and related taxes, amortization of intangible
assets, certain non-recurring gains and charges, such as
acquisition-related income tax benefits, acquisition-related
transaction costs, facilities consolidation gain and gain on note
conversion, litigation costs and restructuring costs. Non-GAAP
weighted-average diluted shares include the effect of potentially
dilutive securities from the company’s stock-based benefit
plans.
These non-GAAP financial measures are presented to provide
investors with additional information regarding our financial
results and core business operations. Ooma considers these non-GAAP
financial measures to be useful measures of the operating
performance of the company, because they contain adjustments for
unusual events or factors that do not directly affect what
management considers to be Ooma's core operating performance and
are used by the company's management for that purpose. Management
also believes that these non-GAAP financial measures allow for a
better evaluation of the company's performance by facilitating a
meaningful comparison of the company's core operating results in a
given period to those in prior and future periods. In addition,
investors often use similar measures to evaluate the operating
performance of a company.
Non-GAAP financial measures are presented for supplemental
informational purposes only to aid an understanding of the
company's operating results. The non-GAAP financial measures should
not be considered a substitute for financial information presented
in accordance with GAAP and may be different from non-GAAP
financial measures presented by other companies. A limitation of
the non-GAAP financial measures presented is that the adjustments
relate to items that the company generally expects to continue to
recognize. The adjustment of these items should not be construed as
an inference that the adjusted gains or expenses are unusual,
infrequent or non-recurring. Therefore, both GAAP financial
measures of Ooma's financial performance and the respective
non-GAAP measures should be considered together. Please see the
reconciliation of non-GAAP financial measures to the most directly
comparable GAAP measure in the tables below.
Disclosure Information
Ooma uses the investor relations section on its website as a
means of complying with its disclosure obligations under Regulation
FD. Accordingly, investors should monitor Ooma's investor relations
website in addition to following Ooma's press releases, Securities
and Exchange Commission (“SEC”) filings, and public conference
calls and webcasts.
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements under the
Private Securities Litigation Reform Act of 1995. In particular,
the financial projections under “Business Outlook” and the
statements contained in the quotations of our Chief Executive
Officer may constitute forward-looking statements. Forward-looking
statements can be identified by the fact that they do not relate
strictly to historical facts and generally contain words such as
"believes”, "expects”, "may”, "will”, "should”, "seeks”,
"approximately”, "intends”, "plans”, "estimates”, "anticipates”,
and other expressions that are predictions of or indicate future
events. Although the forward-looking statements contained in this
press release are based upon information available at the time the
statements are made and reflect management's good faith beliefs,
forward-looking statements inherently involve known and unknown
risks, uncertainties and other factors, which may cause the actual
results, performance or achievements to differ materially from
anticipated future results. Important factors that could cause
actual results to differ materially from expectations include,
among others: our inability to attract new customers on a
cost-effective basis; our inability to retain customers; our
inability to realize expected returns from our investments made in
connection with our international operations and development of new
product features; our ability to successfully integrate our
acquisitions and to achieve their expected benefits; failure to
retain former customers of 2600hz; failure to realize AirDial
opportunities; intense competition; loss of key retailers and
reseller partnerships; our reliance on vendors to manufacture the
on-premise appliances and end-point devices we sell; our reliance
on third parties for our network connectivity and co-location
facilities; our reliance on third parties for some of our software
development, quality assurance and operations; our reliance on
third parties to provide the majority of our customer service and
support representatives; and interruptions to our service. You
should not place undue reliance on these forward-looking
statements, which speak only as of the date hereof. We do not
undertake to update or revise any forward-looking statements after
they are made, whether as a result of new information, future
events, or otherwise, except as required by applicable law.
The forward-looking statements contained in this press release
are also subject to other risks and uncertainties, including those
more fully described in our filings which we make with the SEC from
time to time, including the risk factors contained in our Quarterly
Report on Form 10-Q for the quarter ended July 31, 2024, filed with
the SEC on September 6, 2024. The forward-looking statements in
this press release are based on information available to Ooma as of
the date hereof, and Ooma disclaims any obligation to update any
forward-looking statements, except as required by law.
About Ooma, Inc.
Ooma (NYSE: OOMA) delivers phone, messaging, video and advanced
communications services that are easy to implement and provide
great value. Founded in 2003, the company offers Ooma Office for
small to medium-sized businesses seeking enterprise-grade features
designed for their needs; Ooma AirDial for any business looking to
replace aging and increasingly expensive copper phone lines; Ooma
2600Hz for businesses that provide their own communications
solutions built on an outsourced underlying platform; and Ooma Telo
for residential consumers who value a landline experience at a more
affordable price point. Ooma’s award-winning solutions power more
than 1.2 million users today. Learn more at www.ooma.com in the
United States or www.ooma.ca in Canada.
OOMA, INC CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, amounts in thousands) October
31, January 31,
2024
2024
Assets Current assets: Cash and cash equivalents
$
17,131
$
17,536
Accounts receivable, net
8,225
9,864
Inventories
13,177
19,782
Other current assets
16,556
16,497
Total current assets
55,089
63,679
Property and equipment, net
11,586
9,897
Operating lease right-of-use assets
15,329
17,041
Intangible assets, net
23,591
27,952
Goodwill
23,069
23,069
Other assets
20,940
17,615
Total assets
$
149,604
$
159,253
Liabilities and stockholders' equity Current
liabilities: Accounts payable
$
6,764
$
7,848
Accrued expenses and other current liabilities
27,147
26,586
Deferred revenue
16,952
17,041
Total current liabilities
50,863
51,475
Long-term operating lease liabilities
12,211
13,676
Debt, net of current portion
3,000
16,000
Other liabilities
24
15
Total liabilities
66,098
81,166
Stockholders' equity: Common stock
5
5
Additional paid-in capital
223,419
211,361
Accumulated other comprehensive loss
—
(1
)
Accumulated deficit
(139,918
)
(133,278
)
Total stockholders' equity
83,506
78,087
Total liabilities and stockholders' equity
$
149,604
$
159,253
OOMA, INC. CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited, amounts in thousands, except share
and per share data) Three Months Ended Nine
Months Ended October 31,2024 October 31,2023
October 31,2024 October 31,2023 Revenue:
Subscription and services
$
60,135
$
55,886
$
178,090
$
163,661
Product and other
4,992
3,970
13,665
11,400
Total revenue
65,127
59,856
191,755
175,061
Cost of revenue: Subscription and services
18,006
15,993
53,120
46,174
Product and other
7,851
6,924
22,550
19,408
Total cost of revenue
25,857
22,917
75,670
65,582
Gross profit
39,270
36,939
116,085
109,479
Operating expenses: Sales and marketing
19,223
17,912
57,960
54,744
Research and development
14,234
12,540
41,667
36,261
General and administrative
8,099
7,505
23,077
20,094
Total operating expenses
41,556
37,957
122,704
111,099
Loss from operations
(2,286
)
(1,018
)
(6,619
)
(1,620
)
Interest and other income, net
14
267
834
1,214
Loss before income taxes
(2,272
)
(751
)
(5,785
)
(406
)
Income tax (provision) benefit
(92
)
3,036
(855
)
2,636
Net (loss) income
$
(2,364
)
$
2,285
$
(6,640
)
$
2,230
Net (loss) income per share of common stock: Basic and
diluted
$
(0.09
)
$
0.09
$
(0.25
)
$
0.09
Weighted-average shares of common stock outstanding: Basic
26,837,594
25,469,997
26,547,389
25,458,063
Diluted
26,837,594
25,990,264
26,547,389
26,052,180
OOMA, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (Unaudited, amounts in thousands) Three
Months Ended Nine Months Ended October 31,2024
October 31,2023 October 31,2024 October
31,2023 Cash flows from operating activities: Net (loss)
income
$
(2,364
)
$
2,285
$
(6,640
)
$
2,230
Adjustments to reconcile net (loss) income to net cash provided by
operating activities: Stock-based compensation expense
4,517
3,714
13,475
10,838
Depreciation and amortization of capital expenditures
1,070
1,041
3,143
3,230
Amortization of intangible assets
1,406
793
4,361
2,226
Amortization of operating lease right-of-use assets
774
757
2,291
2,217
Gain on note conversion
—
—
(980
)
—
Facilities consolidation gain
—
—
—
(956
)
Other
39
—
147
(5
)
Changes in operating assets and liabilities: Accounts receivable,
net
(36
)
(422
)
1,639
(1,903
)
Inventories and deferred inventory costs
2,087
1,324
6,614
4,671
Prepaid expenses and other assets
(959
)
(746
)
(2,530
)
(2,231
)
Accounts payable, accrued expenses and other liabilities
1,723
(3,161
)
(2,676
)
(10,057
)
Deferred revenue
(165
)
(422
)
(80
)
(261
)
Net cash provided by operating activities
8,092
1,929
18,764
6,765
Cash flows from investing activities: Capital
expenditures
(1,560
)
(1,366
)
(4,752
)
(4,884
)
Proceeds from maturities and sales of short-term investments
—
500
—
2,750
Business acquisition, working capital adjustments
—
(29,210
)
—
(28,910
)
Net cash used in investing activities
(1,560
)
(30,076
)
(4,752
)
(31,044
)
Cash flows from financing activities: Proceeds from
issuance of common stock
1,867
776
3,451
2,725
Shares repurchased for tax withholdings on vesting of restricted
stock units
(1,192
)
(435
)
(2,816
)
(1,410
)
Payments for repurchases of common stock
(1,161
)
—
(2,052
)
—
Repayments of long-term debt
(5,500
)
—
(13,000
)
—
Proceeds from issuance of long-term debt
—
18,000
—
18,000
Credit facility issuance costs
—
(301
)
—
(301
)
Net cash (used in) provided by financing activities
(5,986
)
18,040
(14,417
)
19,014
Net increase (decrease) in cash and cash equivalents
546
(10,107
)
(405
)
(5,265
)
Cash and cash equivalents, at beginning of period
16,585
28,979
17,536
24,137
Cash and cash equivalents, at end of period
$
17,131
$
18,872
$
17,131
$
18,872
OOMA, INC. Reconciliation of Non-GAAP Financial
Measures (Unaudited, amounts in thousands, except
percentages, shares and per share data) Three Months
Ended Nine Months Ended October 31,2024
October 31,2023 October 31,2024 October
31,2023 Revenue $
65,127
$
59,856
$
191,755
$
175,061
GAAP gross profit $
39,270
$
36,939
$
116,085
$
109,479
Stock-based compensation and related taxes
248
260
806
780
Amortization of intangible assets and acquisition-related costs
708
173
2,266
365
Restructuring costs
39
—
39
—
Non-GAAP gross profit $
40,265
$
37,372
$
119,196
$
110,624
Gross margin on a GAAP basis
60
%
62
%
61
%
63
%
Gross margin on a Non-GAAP basis
62
%
62
%
62
%
63
%
GAAP operating loss $
(2,286
)
$
(1,018
)
$
(6,619
)
$
(1,620
)
Stock-based compensation and related taxes
4,575
3,766
13,710
11,056
Amortization of intangible assets and acquisition-related costs
1,406
1,201
4,361
2,634
Litigation costs
75
—
170
300
Restructuring costs
869
—
1,579
—
Facilities consolidation gain
—
—
—
(956
)
Non-GAAP operating income $
4,639
$
3,949
$
13,201
$
11,414
GAAP net (loss) income $
(2,364
)
$
2,285
$
(6,640
)
$
2,230
Stock-based compensation and related taxes
4,575
3,766
13,710
11,056
Amortization of intangible assets and acquisition-related costs
1,406
1,201
4,361
2,443
Litigation costs
75
—
170
300
Restructuring costs
869
—
1,579
—
Gain on note conversion
—
—
(980
)
—
Acquisition-related income tax benefit
—
(3,234
)
—
(3,234
)
Facilities consolidation gain
—
—
—
(956
)
Non-GAAP net income $
4,561
$
4,018
$
12,200
$
11,839
GAAP diluted net (loss) income per share $
(0.09
)
$
0.09
$
(0.25
)
$
0.09
Stock-based compensation and related taxes
0.17
0.13
0.51
0.42
Amortization of intangible assets and acquisition-related costs
0.05
0.05
0.16
0.09
Litigation costs
0.01
—
0.01
0.01
Restructuring costs
0.03
—
0.06
—
Gain on note conversion
—
—
(0.04
)
—
Acquisition-related income tax benefit
—
(0.12
)
—
(0.12
)
Facilities consolidation gain
—
—
—
(0.04
)
Non-GAAP net income per basic share $
0.17
$
0.15
$
0.45
$
0.45
Non-GAAP net income per diluted share $
0.17
$
0.15
$
0.45
$
0.45
GAAP weighted-average basic shares
26,837,594
25,469,997
26,547,389
25,458,063
GAAP weighted-average diluted shares
26,837,594
25,990,264
26,547,389
26,052,180
Non-GAAP weighted-average diluted shares
27,395,079
25,990,264
27,006,510
26,052,180
GAAP net (loss) income $
(2,364
)
$
2,285
$
(6,640
)
$
2,230
Reconciling items: Interest and other (income) expense, net
(14
)
(267
)
146
(1,214
)
Income tax provision (benefit)
92
(3,036
)
855
(2,636
)
Depreciation and amortization of capital expenditures
1,070
1,041
3,143
3,230
Amortization of intangible assets and acquisition-related costs
1,406
1,201
4,361
2,634
Stock-based compensation and related taxes
4,575
3,766
13,710
11,056
Litigation costs
75
—
170
300
Restructuring costs
869
—
1,579
—
Gain on note conversion
—
—
(980
)
—
Facilities consolidation gain
—
—
—
(956
)
Adjusted EBITDA $
5,709
$
4,990
$
16,344
$
14,644
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241204034293/en/
INVESTOR CONTACT: Matthew S. Robison Director of IR and
Corporate Development Ooma, Inc. ir@ooma.com (650) 300-1480
MEDIA CONTACT: Mike Langberg Director of Corporate
Communications Ooma, Inc. press@ooma.com (650) 566-6693
Grafico Azioni Ooma (NYSE:OOMA)
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Da Nov 2024 a Dic 2024
Grafico Azioni Ooma (NYSE:OOMA)
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Da Dic 2023 a Dic 2024
