Ooma, Inc. (NYSE: OOMA), a smart communications platform for businesses and consumers, today released financial results for the fiscal fourth quarter and year ended January 31, 2022.

Fourth Quarter Fiscal 2022 Financial Highlights:

  • Revenue: Total revenue was $50.5 million, up 14% year-over-year. Subscription and services revenue increased to $45.8 million from $41.1 million in the fourth quarter of fiscal 2021, and was 91% of total revenue, primarily driven by the growth of Ooma Business.
  • Net Income/Loss: GAAP net loss was $0.1 million, or $0.00 per basic and diluted share, compared to GAAP net loss of $0.6 million, or $0.03 per basic and diluted share, in the fourth quarter of fiscal 2021. Non-GAAP net income was $3.2 million, or $0.13 per diluted share, compared to non-GAAP net income of $2.8 million, or $0.12 per diluted share in the prior year period.
  • Adjusted EBITDA: Adjusted EBITDA was $4.0 million, compared to $3.6 million in the fourth quarter of fiscal 2021.

Full Year Fiscal 2022 Financial Highlights:

  • Revenue: Total revenue was $192.3 million, up 14% year-over-year. Subscription and services revenue increased to $175.9 million from $156.9 million in fiscal 2021, and was 91% of total revenue, primarily driven by the growth of Ooma Business.
  • Net Income/Loss: GAAP net loss was $1.8 million, or $0.07 per basic and diluted share, compared to GAAP net loss of $2.4 million, or $0.11 per basic and diluted share, in fiscal 2021. Non-GAAP net income was $12.6 million, or $0.51 per diluted share, compared to non-GAAP net income of $11.5 million, or $0.49 per diluted share in the prior fiscal year.
  • Adjusted EBITDA: Adjusted EBITDA was $15.6 million, compared to $14.0 million in fiscal 2021.

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 achieved solid fourth quarter results, with revenue growth of 14% year-over-year and continued ARPU expansion and non-GAAP profitability,” said Eric Stang, chief executive officer of Ooma. “For the full fiscal 2022 year, Ooma also delivered 14% revenue growth, with business subscription and services revenue growing 23% year-over-year and residential subscription services revenue growing 3% year-over-year. Ooma made significant investments during fiscal 2022, including for international expansion and new features and products which we expect to capitalize on in the upcoming fiscal year. Our priorities for fiscal 2023 include development of new Ooma Office features supporting a higher tier of service, expansion of our sales and marketing reach, increased focus on select vertical markets for Ooma Enterprise, and execution of the company’s growth plans for AirDial.”

Business Outlook:

For the first quarter of fiscal 2023, Ooma expects:

  • Total revenue in the range of $49.5 million to $50.2 million.
  • GAAP net loss in the range of $1.0 million to $1.6 million and GAAP net loss per share in the range of $0.04 to $0.06.
  • Non-GAAP net income in the range of $2.2 million to $2.8 million and non-GAAP net income per share in the range of $0.09 to $0.11.

For the full fiscal year 2023, Ooma expects:

  • Total revenue in the range of $209.5 million to $212.5 million.
  • GAAP net loss in the range of $4.9 million to $6.9 million, and GAAP net loss per share in the range of $0.19 to $0.27.
  • Non-GAAP net income in the range of $8.5 million to $10.5 million, and non-GAAP net income per share in the range of $0.33 to $0.41.

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 fiscal first quarter ending April 30, 2022 and the fiscal year ending January 31, 2023 (in millions, except per share data):

Projected range Three Months Ending Fiscal Year Ending April 30, 2022 January 31, 2023 (unaudited) GAAP net loss

($1.0)-($1.6)

($4.9)-($6.9)

Stock-based compensation and related taxes

3.5

14.1

Amortization of intangible assets

0.3

1.3

Non-GAAP net income

$2.2-$2.8

$8.5-$10.5

  GAAP net loss per share

($0.04)-($0.06)

($0.19)-($0.27)

Stock-based compensation and related taxes

0.14

0.55

Amortization of intangible assets

0.01

0.05

Non-GAAP net income per share

$0.09-$0.11

$0.33-$0.41

  Weighted-average number of shares used in per share amounts: Basic

24.1

24.6

Diluted

25.1

25.7

Conference Call Information:

Ooma will host a conference call and live webcast for analysts and investors at 5:00 p.m., Eastern time today March 3, 2022. The news release with the financial results will be accessible from the company's website prior to the conference call.

Parties in the United States and Canada can access the call by dialing +1 (888) 550-5744, using conference ID 4726540. International parties can access the call by dialing +1 (646) 960-0223, using conference ID 4726540.

The webcast will be accessible on the Events and Presentations page of Ooma’s investor relations website, https://investors.ooma.com, for a period of at least one year. A telephonic replay of the conference call will be available from 8:00 p.m. Eastern time on March 3, 2022 until 11:59 p.m. Eastern time on Thursday, March 10, 2022. To access the replay, parties in the United States and Canada should call +1 (800) 770-2030 and use conference code 4726540. International parties should call +1 (647) 362-9199 and use conference code 4726540.

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 the net income before interest and other income, income tax (if any), depreciation and amortization of capital expenditures, amortization of intangible assets, and stock-based compensation and related taxes.

Other non-GAAP financial measures exclude stock-based compensation expense and related taxes and amortization of intangible assets.

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 regarding future economic performance and financial positions, expectations and objectives of management 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 expansion efforts and development of new product features; 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 October 31, 2021, filed with the SEC on December 8, 2021. 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) provides leading communications services and related technologies that bring unique features, ease of use, and affordability to businesses of all sizes and residential customers through a smart cloud-based SaaS platform. For businesses, Ooma delivers advanced voice and collaboration features including messaging, intelligent virtual attendants, and video conferencing to help them run more efficiently. For consumers, Ooma’s residential phone service provides PureVoice HD voice quality, advanced functionality and integration with mobile devices. Learn more at www.ooma.com or www.ooma.ca in Canada.

OOMA, INC CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, amounts in thousands)     January 31, January 31,

2022

2021

Assets Current assets: Cash and cash equivalents

$

19,667

 

$

17,298

 

Short-term investments

 

11,613

 

 

11,013

 

Accounts receivable, net

 

7,310

 

 

5,228

 

Inventories

 

13,841

 

 

12,233

 

Other current assets

 

13,598

 

 

10,222

 

Total current assets

 

66,029

 

 

55,994

 

Property and equipment, net

 

6,481

 

 

5,071

 

Operating lease right-of-use assets

 

14,396

 

 

6,045

 

Intangible assets, net

 

4,208

 

 

5,513

 

Goodwill

 

4,264

 

 

4,264

 

Other assets

 

13,875

 

 

12,210

 

Total assets

$

109,253

 

$

89,097

 

  Liabilities and stockholders' equity Current liabilities: Accounts payable

$

7,507

 

$

7,499

 

Accrued expenses and other current liabilities

 

22,823

 

 

22,731

 

Deferred revenue

 

16,600

 

 

16,426

 

Total current liabilities

 

46,930

 

 

46,656

 

Long-term operating lease liabilities

 

11,194

 

 

2,815

 

Other liabilities

 

73

 

 

75

 

Total liabilities

 

58,197

 

 

49,546

 

  Stockholders' equity: Common stock

 

4

 

 

4

 

Additional paid-in capital

 

179,860

 

 

166,577

 

Accumulated other comprehensive (loss) gain

 

(20

)

 

7

 

Accumulated deficit

 

(128,788

)

 

(127,037

)

Total stockholders' equity

 

51,056

 

 

39,551

 

Total liabilities and stockholders' equity

$

109,253

 

$

89,097

 

OOMA, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, amounts in thousands, except share and per share data)   Three Months Ended Fiscal Year Ended January 31, January 31, January 31, January 31,

2022

2021

2022

2021

Revenue: Subscription and services

$

45,781

 

$

41,124

 

$

175,942

 

$

156,873

 

Product and other

 

4,708

 

 

3,138

 

 

16,348

 

 

12,074

 

Total revenue

 

50,489

 

 

44,262

 

 

192,290

 

 

168,947

 

  Cost of revenue: Subscription and services

 

12,624

 

 

11,812

 

 

49,563

 

 

46,134

 

Product and other

 

7,058

 

 

5,010

 

 

24,289

 

 

18,009

 

Total cost of revenue

 

19,682

 

 

16,822

 

 

73,852

 

 

64,143

 

Gross profit

 

30,807

 

 

27,440

 

 

118,438

 

 

104,804

 

  Operating expenses: Sales and marketing

 

15,206

 

 

13,536

 

 

58,631

 

 

50,919

 

Research and development

 

10,003

 

 

9,228

 

 

38,193

 

 

36,079

 

General and administrative

 

5,725

 

 

5,235

 

 

23,544

 

 

20,581

 

Total operating expenses

 

30,934

 

 

27,999

 

 

120,368

 

 

107,579

 

Loss from operations

 

(127

)

 

(559

)

 

(1,930

)

 

(2,775

)

Interest and other income, net

 

28

 

 

49

 

 

179

 

 

419

 

Loss before income taxes

 

(99

)

 

(510

)

 

(1,751

)

 

(2,356

)

Income tax provision

 

 

 

(85

)

 

 

 

(85

)

Net loss

$

(99

)

$

(595

)

$

(1,751

)

$

(2,441

)

  Net loss per share of common stock: Basic and diluted

$

(0.00

)

$

(0.03

)

$

(0.07

)

$

(0.11

)

Weighted-average shares of common stock outstanding: Basic and diluted

 

23,845,659

 

 

22,774,263

 

 

23,473,849

 

 

22,361,312

 

OOMA, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, amounts in thousands)   Three Months Ended Fiscal Year Ended January 31, January 31, January 31, January 31,

2022

2021

2022

2021

Cash flows from operating activities: Net loss

$

(99

)

$

(595

)

$

(1,751

)

$

(2,441

)

Adjustments to reconcile net loss to net cash provided by operating activities: Stock-based compensation expense

 

2,934

 

 

3,056

 

 

12,682

 

 

12,275

 

Depreciation and amortization of capital expenditures

 

789

 

 

746

 

 

3,117

 

 

2,877

 

Amortization of intangible assets

 

326

 

 

326

 

 

1,304

 

 

1,304

 

Non-cash operating lease expense

 

709

 

 

807

 

 

2,939

 

 

3,198

 

Other

 

14

 

 

5

 

 

53

 

 

46

 

Changes in operating assets and liabilities: Accounts receivable, net

 

(1,025

)

 

(238

)

 

(2,082

)

 

(637

)

Inventories

 

398

 

 

(2,010

)

 

(1,571

)

 

(3,378

)

Other assets

 

(247

)

 

(623

)

 

(4,609

)

 

(5,496

)

Accounts payable and other liabilities

 

(1,861

)

 

630

 

 

(3,599

)

 

(3,911

)

Deferred revenue

 

(155

)

 

99

 

 

172

 

 

530

 

Net cash provided by operating activities

 

1,783

 

 

2,203

 

 

6,655

 

 

4,367

 

  Cash flows from investing activities: Proceeds from maturities and sales of short-term investments

 

2,575

 

 

5,355

 

 

16,805

 

 

23,466

 

Purchases of short-term investments

 

(2,622

)

 

(4,273

)

 

(17,488

)

 

(20,077

)

Capital expenditures

 

(1,154

)

 

(879

)

 

(4,204

)

 

(3,160

)

Net cash (used in) provided by investing activities

 

(1,201

)

 

203

 

 

(4,887

)

 

229

 

  Cash flows from financing activities: Proceeds from issuance of common stock

 

126

 

 

85

 

 

2,706

 

 

2,905

 

Shares repurchased for tax withholdings on vesting of restricted stock units

 

(481

)

 

(462

)

 

(2,105

)

 

(1,641

)

Payment of credit facility issuance costs

 

 

 

(242

)

 

 

 

(242

)

Net cash (used in) provided by financing activities

 

(355

)

 

(619

)

 

601

 

 

1,022

 

Net increase in cash and cash equivalents

 

227

 

 

1,787

 

 

2,369

 

 

5,618

 

Cash and cash equivalents at beginning of period

 

19,440

 

 

15,511

 

 

17,298

 

 

11,680

 

Cash and cash equivalents at end of period

$

19,667

 

$

17,298

 

$

19,667

 

$

17,298

 

OOMA, INC. Reconciliation of Non-GAAP Financial Measures (Unaudited, amounts in thousands, except percentages, shares and per share data)   Three Months Ended Fiscal Year Ended January 31, January 31, January 31, January 31,

2022

2021

2022

2021

Revenue

$

50,489

 

$

44,262

 

$

192,290

 

$

168,947

 

  GAAP gross profit

$

30,807

 

$

27,440

 

$

118,438

 

$

104,804

 

Stock-based compensation and related taxes

 

231

 

 

257

 

 

1,026

 

 

1,054

 

Amortization of intangible assets

 

73

 

 

73

 

 

292

 

 

292

 

Non-GAAP gross profit

$

31,111

 

$

27,770

 

$

119,756

 

$

106,150

 

  Gross margin on a GAAP basis

 

61

%

 

62

%

 

62

%

 

62

%

Gross margin on a Non-GAAP basis

 

62

%

 

63

%

 

62

%

 

63

%

  GAAP operating loss

$

(127

)

$

(559

)

$

(1,930

)

$

(2,775

)

Stock-based compensation and related taxes

 

3,004

 

 

3,115

 

 

13,077

 

 

12,607

 

Amortization of intangible assets

 

326

 

 

326

 

 

1,304

 

 

1,304

 

Non-GAAP operating income

$

3,203

 

$

2,882

 

$

12,451

 

$

11,136

 

  GAAP net loss

$

(99

)

$

(595

)

$

(1,751

)

$

(2,441

)

Stock-based compensation and related taxes

 

3,004

 

 

3,115

 

 

13,077

 

 

12,607

 

Amortization of intangible assets

 

326

 

 

326

 

 

1,304

 

 

1,304

 

Non-GAAP net income

$

3,231

 

$

2,846

 

$

12,630

 

$

11,470

 

  GAAP basic and diluted net loss per share

$

(0.00

)

$

(0.03

)

$

(0.07

)

$

(0.11

)

Stock-based compensation and related taxes

 

0.13

 

 

0.14

 

 

0.55

 

 

0.56

 

Amortization of intangible assets

 

0.01

 

 

0.01

 

 

0.06

 

 

0.06

 

Non-GAAP net income per basic share

$

0.14

 

$

0.12

 

$

0.54

 

$

0.51

 

Non-GAAP net income per diluted share

$

0.13

 

$

0.12

 

$

0.51

 

$

0.49

 

  GAAP weighted-average basic and diluted shares

 

23,845,659

 

 

22,774,263

 

 

23,473,849

 

 

22,361,312

 

Non-GAAP weighted-average diluted shares

 

25,120,348

 

 

23,894,792

 

 

24,910,303

 

 

23,554,838

 

  GAAP net loss

$

(99

)

$

(595

)

$

(1,751

)

$

(2,441

)

Reconciling items: Interest and other income, net

 

(28

)

 

(49

)

 

(179

)

 

(419

)

Income tax provision

 

 

 

85

 

 

 

 

85

 

Depreciation and amortization of capital expenditures

 

789

 

 

746

 

 

3,117

 

 

2,877

 

Amortization of intangible assets

 

326

 

 

326

 

 

1,304

 

 

1,304

 

Stock-based compensation and related taxes

 

3,004

 

 

3,115

 

 

13,077

 

 

12,607

 

Adjusted EBITDA

$

3,992

 

$

3,628

 

$

15,568

 

$

14,013

 

 

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

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