Ooma, Inc. (NYSE: OOMA), a smart communications platform for
businesses and consumers, today released financial results for the
fiscal first quarter ended April 30, 2022.
First Quarter Fiscal 2023 Financial Highlights:
- Revenue: Total revenue was $50.3 million, up 10%
year-over-year. Subscription and services revenue increased to
$46.7 million from $42.0 million in the first quarter of fiscal
2022, and was 93% of total revenue, primarily driven by the growth
of Ooma Business.
- Net Income/Loss: GAAP net loss was $0.8 million, or
$0.03 per basic and diluted share, compared to GAAP net loss of
$0.9 million, or $0.04 per basic and diluted share, in the first
quarter of fiscal 2022. Non-GAAP net income was $3.0 million, or
$0.12 per diluted share, compared to non-GAAP net income of $2.8
million, or $0.11 per diluted share in the prior year period.
- Adjusted EBITDA: Adjusted EBITDA was $3.9 million,
compared to $3.5 million in the first quarter of fiscal 2022.
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 performed well in Q1, achieving revenue growth of 10%
year-over-year, to $50.3 million,” said Eric Stang, chief executive
officer of Ooma. “The growth in revenue was primarily driven by
Ooma Business which doubled in new user growth versus the prior
quarter and achieved the milestone of contributing more than 50% of
Ooma’s overall subscription services revenue. Looking forward, our
priorities for fiscal 2023 include extending our leadership serving
small business customers through the launch of Ooma Office Pro Plus
which enables a higher tier of service, expansion of our sales and
marketing reach, increased focus on select vertical markets for
Ooma Enterprise, expanding into Europe to serve our largest
customer, and execution of the company’s growth plans for AirDial
and other 4G/5G solutions.”
Business Outlook:
For the second quarter of fiscal 2023, Ooma expects:
- Total revenue in the range of $51.4 million to $51.9
million.
- GAAP net loss in the range of $1.1 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 $2.4 million to $2.8
million and non-GAAP net income per share in the range of $0.10 to
$0.11.
For the full fiscal year 2023, Ooma expects:
- Total revenue in the range of $210.5 million to $213.5
million.
- GAAP net loss in the range of $4.4 million to $5.9 million, and
GAAP net loss per share in the range of $0.18 to $0.24.
- Non-GAAP net income in the range of $9.5 million to $11.0
million, and non-GAAP net income per share in the range of $0.37 to
$0.43.
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
second quarter ending July 31, 2022 and the fiscal year ending
January 31, 2023 (in millions, except per share data):
Projected range Three Months Ending Fiscal Year
Ending July 31, 2022 January 31, 2023
(unaudited) GAAP net loss
($1.1)-($1.5)
($4.4)-($5.9)
Stock-based compensation and related taxes
3.6
14.1
Amortization of intangible assets
0.3
1.3
Non-GAAP net income
$2.4-$2.8
$9.5-$11.0
GAAP net loss per share
($0.04)-($0.05)
($0.18)-($0.24)
Stock-based compensation and related taxes
0.14
0.56
Amortization of intangible assets
0.01
0.05
Non-GAAP net income per share
$0.10-$0.11
$0.37-$0.43
Weighted-average number of shares used in per share
amounts: Basic
24.4
24.5
Diluted
25.0
25.4
Conference Call Information:
Ooma will host a conference call and live webcast for analysts
and investors at 5:00 p.m. Eastern time today, May 24, 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 May 24, 2022 until 11:59 p.m. Eastern
time on Tuesday, May 31, 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 expectations and priorities 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 Annual
Report on Form 10-K for the year ended January 31, 2022, filed with
the SEC on April 8, 2022. 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) creates powerful connected experiences for
businesses and consumers, delivered from its smart cloud-based SaaS
platform. For businesses of all sizes, Ooma provides 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) April
30, January 31,
2022
2022
Assets Current assets: Cash and cash equivalents
$
21,653
$
19,667
Short-term investments
10,127
11,613
Accounts receivable, net
5,622
7,310
Inventories
14,356
13,841
Other current assets
16,077
13,598
Total current assets
67,835
66,029
Property and equipment, net
6,992
6,481
Operating lease right-of-use assets
13,995
14,396
Intangible assets, net
3,881
4,208
Goodwill
4,264
4,264
Other assets
14,254
13,875
Total assets
$
111,221
$
109,253
Liabilities and stockholders' equity Current
liabilities: Accounts payable
$
11,946
$
7,507
Accrued expenses and other current liabilities
17,198
22,823
Deferred revenue
16,392
16,600
Total current liabilities
45,536
46,930
Long-term operating lease liabilities
10,833
11,194
Other liabilities
58
73
Total liabilities
56,427
58,197
Stockholders' equity: Common stock
5
4
Additional paid-in capital
184,402
179,860
Accumulated other comprehensive loss
(59
)
(20
)
Accumulated deficit
(129,554
)
(128,788
)
Total stockholders' equity
54,794
51,056
Total liabilities and stockholders' equity
$
111,221
$
109,253
OOMA, INC. CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited, amounts in thousands, except share
and per share data)
Three Months Ended
April 30,
April 30,
2022
2021
Revenue: Subscription and services
$
46,723
$
41,965
Product and other
3,614
3,607
Total revenue
50,337
45,572
Cost of revenue: Subscription and services
13,209
12,339
Product and other
5,176
5,151
Total cost of revenue
18,385
17,490
Gross profit
31,952
28,082
Operating expenses: Sales and marketing
16,151
14,016
Research and development
10,498
9,307
General and administrative
6,062
5,725
Total operating expenses
32,711
29,048
Loss from operations
(759
)
(966
)
Interest and other income, net
33
79
Loss before income taxes
(726
)
(887
)
Income tax provision
(40
)
—
Net loss
$
(766
)
$
(887
)
Net loss per share of common stock: Basic and diluted
$
(0.03
)
$
(0.04
)
Weighted-average shares of common stock outstanding: Basic and
diluted
24,116,144
23,053,512
OOMA, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (Unaudited, amounts in thousands)
Three Months Ended
April 30,
April 30,
2022
2021
Cash flows from operating activities: Net loss
$
(766
)
$
(887
)
Adjustments to reconcile net loss to net cash provided by operating
activities: Stock-based compensation expense
3,336
3,194
Depreciation and amortization of capital expenditures
850
773
Amortization of intangible assets
326
326
Amortization of operating lease right-of-use assets
717
818
Other
15
10
Changes in operating assets and liabilities: Accounts receivable,
net
1,688
1,162
Inventories and deferred inventory costs
(493
)
(1,206
)
Prepaid expenses and other assets
(2,681
)
(970
)
Accounts payable, accrued expenses and other liabilities
(1,950
)
(2,470
)
Deferred revenue
(223
)
(326
)
Net cash provided by operating activities
819
424
Cash flows from investing activities: Proceeds from
maturities and sales of short-term investments
4,800
6,900
Purchases of short-term investments
(3,380
)
(6,043
)
Capital expenditures
(1,459
)
(665
)
Net cash (used in) provided by investing activities
(39
)
192
Cash flows from financing activities: Proceeds from
issuance of common stock
1,554
1,469
Shares repurchased for tax withholdings on vesting of restricted
stock units
(348
)
(485
)
Net cash provided by financing activities
1,206
984
Net increase in cash and cash equivalents
1,986
1,600
Cash and cash equivalents at beginning of period
19,667
17,298
Cash and cash equivalents at end of period
$
21,653
$
18,898
OOMA, INC. Reconciliation of Non-GAAP Financial
Measures (Unaudited, amounts in thousands, except
percentages, shares and per share data)
Three Months Ended
April 30,
April 30,
2022
2021
Revenue
$
50,337
$
45,572
GAAP gross profit
$
31,952
$
28,082
Stock-based compensation and related taxes
248
289
Amortization of intangible assets
73
73
Non-GAAP gross profit
$
32,273
$
28,444
Gross margin on a GAAP basis
63
%
62
%
Gross margin on a Non-GAAP basis
64
%
62
%
GAAP operating loss
$
(759
)
$
(966
)
Stock-based compensation and related taxes
3,440
3,325
Amortization of intangible assets
326
326
Non-GAAP operating income
$
3,007
$
2,685
GAAP net loss
$
(766
)
$
(887
)
Stock-based compensation and related taxes
3,440
3,325
Amortization of intangible assets
326
326
Non-GAAP net income
$
3,000
$
2,764
GAAP basic and diluted net loss per share
$
(0.03
)
$
(0.04
)
Stock-based compensation and related taxes
0.14
0.15
Amortization of intangible assets
0.01
0.01
Non-GAAP net income per basic share
$
0.12
$
0.12
Non-GAAP net income per diluted share
$
0.12
$
0.11
GAAP weighted-average basic and diluted shares
24,116,144
23,053,512
Non-GAAP weighted-average diluted shares
24,909,140
24,243,472
GAAP net loss
$
(766
)
$
(887
)
Reconciling items: Interest and other income, net
(33
)
(79
)
Income tax provision
40
—
Depreciation and amortization of capital expenditures
850
773
Amortization of intangible assets
326
326
Stock-based compensation and related taxes
3,440
3,325
Adjusted EBITDA
$
3,857
$
3,458
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version on businesswire.com: https://www.businesswire.com/news/home/20220524005849/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
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