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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 30, 2022

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                   to                  

Commission File Number: 001-37493

 

 

Ooma, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

06-1713274

(State or other jurisdiction

of incorporation or organization)

(I.R.S. Employer

Identification No.)

525 Almanor Avenue, Suite 200, Sunnyvale, California 94085

(Address of principal executive offices)

(650) 566-6600

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock, par value $0.0001

OOMA

The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large Accelerated Filer

 

  

Accelerated Filer

 

 

 

 

 

Non-Accelerated Filer

 

  

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    Yes      No  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

As of May 31, 2022, there were 24.3 million shares of the registrant’s common stock outstanding.

 

 


 

 

TABLE OF CONTENTS

 

 

  

 

  

Page

 

PART I. FINANCIAL INFORMATION

Item 1.

  

Financial Statements (unaudited):

  

3

 

  

Condensed Consolidated Balance Sheets

  

3

 

  

Condensed Consolidated Statements of Operations

  

4

 

  

Condensed Consolidated Statements of Cash Flows

  

5

 

 

Condensed Consolidated Statements of Stockholders’ Equity

 

6

 

  

Notes to Condensed Consolidated Financial Statements

  

7

Item 2.

  

Management’s Discussion and Analysis of Financial Condition and Results of Operations

  

17

Item 3.

  

Quantitative and Qualitative Disclosures About Market Risk

  

26

Item 4.

  

Controls and Procedures

  

26

 

PART II. OTHER INFORMATION

Item 1.

  

Legal Proceedings

  

27

Item 1A.

  

Risk Factors

  

27

Item 2.

  

Unregistered Sales of Equity Securities and Use of Proceeds

  

57

Item 6.

  

Exhibits

  

57

Signatures

  

59

 

 

 

 

 

Ooma | FY2023 Form 10-Q | 2

 


 

 

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

OOMA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, amounts in thousands, except share and per share data)

 

 

 

April 30,

2022

 

 

January 31,

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 long-term liabilities

 

 

58

 

 

 

73

 

Total liabilities

 

 

56,427

 

 

 

58,197

 

Commitments and contingencies (Note 11)

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Common stock $0.0001 par value: 100 million shares authorized; 24.3 million and 23.9 million shares issued and outstanding, respectively

 

 

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

 

 

See notes to condensed consolidated financial statements

 

 

 

 

 

 

 

 

 

 

 

Ooma | FY2023 Form 10-Q | 3

 


 

 

OOMA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, amounts in thousands, except share and per share data)

 

 

Three Months Ended

 

 

April 30,

2022

 

 

April 30,

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

 

 

 

 

See notes to condensed consolidated financial statements

 

 

 

Ooma | FY2023 Form 10-Q | 4

 


 

 

OOMA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, amounts in thousands)

 

 

 

Three Months Ended

 

 

 

April 30,

2022

 

 

April 30,

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

 

 

3,337

 

 

 

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

 

 

(1,951

)

 

 

(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 ("RSU")

 

 

(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

 

 

 

See notes to condensed consolidated financial statements

 

 

Ooma | FY2023 Form 10-Q | 5

 


 

 

OOMA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited, amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

 

 

 

 

Accumulated

 

 

Stockholders'

 

Fiscal 2023

 

and APIC (1)

 

 

AOCL (2)

 

 

Deficit

 

 

Equity

 

BALANCE - February 1, 2022

 

$

179,864

 

 

$

(20

)

 

$

(128,788

)

 

$

51,056

 

Issuance of common stock under equity-based plans

 

 

1,554

 

 

 

 

 

 

 

 

 

1,554

 

Shares repurchased for tax withholdings on RSU vesting

 

 

(348

)

 

 

 

 

 

 

 

 

(348

)

Stock-based compensation

 

 

3,337

 

 

 

 

 

 

 

 

 

3,337

 

Changes in other comprehensive loss

 

 

 

 

 

(39

)

 

 

 

 

 

(39

)

Net loss

 

 

 

 

 

 

 

 

(766

)

 

 

(766

)

BALANCE - April 30, 2022

 

$

184,407

 

 

$

(59

)

 

$

(129,554

)

 

$

54,794

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

 

 

 

 

Accumulated

 

 

Stockholders'

 

Fiscal 2022

 

and APIC

 

 

AOCL

 

 

Deficit

 

 

Equity

 

BALANCE - February 1, 2021

 

$

166,581

 

 

$

7

 

 

$

(127,037

)

 

$

39,551

 

Issuance of common stock under equity-based plans

 

 

1,469

 

 

 

 

 

 

 

 

 

1,469

 

Shares repurchased for tax withholdings on RSU vesting

 

 

(485

)

 

 

 

 

 

 

 

 

(485

)

Stock-based compensation

 

 

3,194

 

 

 

 

 

 

 

 

 

3,194

 

Changes in other comprehensive loss

 

 

 

 

 

(4

)

 

 

 

 

 

(4

)

Net loss

 

 

 

 

 

 

 

 

(887

)

 

 

(887

)

BALANCE - April 30, 2021

 

$

170,759

 

 

$

3

 

 

$

(127,924

)

 

$

42,838

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Additional paid-in capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) Accumulated other comprehensive (loss) income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See notes to condensed consolidated financial statements

 


 

Ooma | FY2023 Form 10-Q | 6

 


Ooma, Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

 

 

Note 1: Overview

Ooma, Inc. and its wholly-owned subsidiaries (collectively, “Ooma” or the “Company”) provides leading communications services and related technologies for businesses and consumers, delivered from its smart software-as-a-service (“SaaS”) and unified communications platforms. The Company is headquartered in Sunnyvale, California.

Fiscal Year.  The Company’s fiscal year ends on January 31. References to fiscal 2023 and fiscal 2022 refer to the fiscal year ending January 31, 2023 and the fiscal year ended January 31, 2022, respectively.

Basis of Presentation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet as of January 31, 2022 included herein was derived from the audited financial statements as of that date, but does not include all the disclosures required by GAAP. Therefore, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2022 filed with the SEC on April 8, 2022 (“Annual Report”).

The accompanying condensed consolidated financial statements reflect all normal recurring adjustments that management believes are necessary for a fair presentation of the interim periods presented. The results for the three months ended April 30, 2022 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending January 31, 2023.

Principles of Consolidation. The condensed consolidated financial statements include the accounts of Ooma, Inc. and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates.  The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the Company’s condensed consolidated financial statements and notes thereto. Significant estimates include, but are not limited to, those related to revenue recognition, inventory valuation, deferred sales commissions, valuation of goodwill and intangible assets, operating lease assets and liabilities, regulatory fees and indirect tax accruals, loss contingencies, stock-based compensation and income taxes (including valuation allowances). The Company bases its estimates and assumptions on historical experience, where applicable, and other factors that it believes to be reasonable under the circumstances. These estimates are based on information available as of the date of the consolidated financial statements, and assumptions are inherently subjective in nature. Therefore, actual results could differ from management’s estimates.

Significant Accounting Policies.  There have been no material changes to the Company’s significant accounting policies from those disclosed in the Annual Report.

Comprehensive Loss.  For all periods presented, comprehensive loss approximated net loss in the condensed consolidated statements of operations and differences were not material. Therefore, the condensed consolidated statements of comprehensive loss have been omitted.

 

 

 

 

Ooma | FY2023 Form 10-Q | 7

 


Ooma, Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

 

Note 2:  Revenue and Deferred Revenue

The Company derives its revenue from two sources:

Subscription and Services Revenue is derived primarily from recurring subscription fees related to service plans such as Ooma Business, Ooma Residential and other communications services. Service plans are generally sold as monthly subscriptions; however, certain plans are also offered as annual or multi-year subscriptions. Subscription revenue is generally recognized ratably over the contractual service term.

Product and Other Revenue is generated primarily from the sale of on-premise appliances and end-point devices, including shipping and handling fees for direct customers. The Company recognizes product and other revenue from sales to direct end-customers and channel partners at the point-in-time that control transfers, which is typically when it delivers the product.

Revenue disaggregated by revenue source consisted of the following (in thousands):

 

Three Months Ended

 

 

April 30,

2022

 

 

April 30,

2021

 

Subscription and services revenue

$

46,723

 

 

$

41,965

 

Product and other revenue

 

3,614

 

 

 

3,607

 

Total revenue

$

50,337

 

 

$

45,572

 

The Company derived approximately 50% and 47% of its total revenue from Ooma Business and approximately 47% and 51% from Ooma Residential for the three months ended April 30, 2022 and 2021, respectively. No individual country outside of the United States, and no single customer, represented 10% or more of total revenue for the periods presented.

Customers who represented 10% or more of net accounts receivable were as follows:

 

 

 

 

As of

 

 

 

 

 

April 30,

2022

 

 

January 31,

2022

 

Customer A

 

 

 

14%

 

 

19%

 

Customer B

 

 

 

*

 

 

11%

 

 

 

 

 

 

 

 

 

 

 

 

* Less than 10% of net accounts receivable for the period indicated.

 

Deferred Revenue primarily consists of billings or payments received in advance of meeting revenue recognition criteria. Deferred services revenue is recognized on a ratable basis over the term of the contract as the services are provided.

 

 

 

 

As of

 

 

 

 

 

April 30,

2022

 

 

January 31,

2022

 

Subscription and services

 

 

 

$

16,392

 

 

$

16,614

 

Product and other

 

 

 

 

58

 

 

 

59

 

Total deferred revenue

 

 

 

$

16,450

 

 

 

16,673

 

Less: current deferred revenue

 

 

 

 

16,392

 

 

 

16,600

 

Non-current deferred revenue included in other long-term liabilities

 

 

 

$

58

 

 

$

73

 

During the three months ended April 30, 2022, the Company recognized revenue of approximately $9.9 million pertaining to amounts deferred as of January 31, 2022. As of April 30, 2022, deferred revenue was primarily composed of subscription contracts invoiced during the first quarter of fiscal 2023, as well as amounts recorded during fiscal 2022 for annual contracts.

Remaining Performance Obligations. As of April 30, 2022, contract revenue that had not yet been recognized for open contracts with an original expected length of greater than one year was approximately $9.1 million. The Company expects to recognize revenue on approximately 53% of this amount over the next 12 months, with the balance to be recognized thereafter.

 

Ooma | FY2023 Form 10-Q | 8

 


Ooma, Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

Note 3:  Fair Value Measurements

The Company estimates and categorizes fair value by applying the following hierarchy:

Level 1:

Quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2:

Observable prices based on inputs not quoted in active markets, but are corroborated by market data.

Level 3:

Unobservable inputs that are supported by little or no market activity.

Financial assets measured at fair value on a recurring basis by level were as follows (in thousands):

 

 

Balance as of April 30, 2022

 

 

Level 1

 

 

Level 2

 

 

Total

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

Money market funds

$

2,434

 

 

$

 

 

$

2,434

 

Commercial paper

 

 

 

 

1,299

 

 

 

1,299

 

Total cash equivalents

$

2,434

 

 

$

1,299

 

 

$

3,733

 

Cash

 

 

 

 

 

 

 

 

$

17,920

 

Total cash and cash equivalents

 

 

 

 

 

 

$

21,653

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury securities

$

5,037

 

 

$

 

 

$

5,037

 

Corporate debt securities

 

 

 

 

3,341

 

 

 

3,341

 

Commercial paper

 

 

 

 

1,749

 

 

 

1,749

 

Total short-term investments

$

5,037

 

 

$

5,090

 

 

$

10,127

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of January 31, 2022

 

 

Level 1

 

 

Level 2

 

 

Total

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

Money market funds

$

2,275

 

 

$

 

 

$

2,275

 

Total cash equivalents

$

2,275

 

 

$

 

 

$

2,275

 

Cash

 

 

 

 

 

 

 

 

 

17,392

 

Total cash and cash equivalents

 

 

 

 

 

 

$

19,667

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury securities

$

7,065

 

 

$

 

 

$

7,065

 

Commercial paper

 

 

 

 

4,548

 

 

 

4,548

 

Total short-term investments

$

7,065

 

 

$

4,548

 

 

$

11,613

 

 

The Company classifies its cash equivalents and short-term investments within Level 1 or Level 2 because it uses quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value. The Company has no Level 3 assets or liabilities. For the periods presented, the amortized cost of cash equivalents and marketable securities approximated their fair value and there were no material realized or unrealized gains or losses, either individually or in the aggregate.  

Contractual maturities of short-term investments were as follows (in thousands): 

 

 

 

As of

 

 

 

 

April 30,

2022

 

 

January 31,

2022

 

Due in one year or less

 

 

$

9,644

 

 

$

10,377

 

Due after one year to two years

 

 

 

483

 

 

 

1,236

 

Total

 

 

$

10,127

 

 

$

11,613

 

 

 

Ooma | FY2023 Form 10-Q | 9

 


Ooma, Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

 

Note 4: Balance Sheet Components

The following sections and tables provide details of selected balance sheet items (in thousands):

Inventories

 

 

 

 

As of

 

 

 

 

 

April 30,

2022

 

 

January 31,

2022

 

Finished goods

 

 

 

$

10,655

 

 

$

10,452

 

Raw materials

 

 

 

 

3,701

 

 

 

3,389

 

Total inventory

 

 

 

$

14,356

 

 

$

13,841

 

Acquired intangible assets, net

 

 

 

 

As of

 

 

 

 

 

April 30,

2022

 

 

January 31,

2022

 

Customer relationships

 

 

 

$

3,561

 

 

$

3,814

 

Developed technology

 

 

 

 

173

 

 

 

224

 

Trade names

 

 

 

 

147

 

 

 

170

 

Total intangible assets

 

 

 

$

3,881

 

 

$

4,208

 

Amortization expense for acquired intangible assets was $0.3 million for each of the three months ended April 30, 2022 and 2021.

Other current and non-current assets

 

 

 

 

As of

 

 

 

 

 

April 30,

2022

 

 

January 31,

2022

 

Deferred sales commissions, current

 

 

 

$

6,736

 

 

$

6,395

 

Inventory prepayments

 

 

 

 

4,090

 

 

 

1,462

 

Convertible note receivable (see "GTC" below)

 

 

 

 

1,818

 

 

 

1,773

 

Prepaid expenses and other

 

 

 

 

3,433

 

 

 

3,968

 

Total other current assets

 

 

 

$

16,077

 

 

$

13,598

 

 

 

 

 

 

 

 

 

 

 

 

Deferred sales commissions, non-current

 

 

 

$

13,346

 

 

$

13,228

 

Other non-current assets

 

 

 

 

908

 

 

 

647

 

Total other non-current assets

 

 

 

$

14,254

 

 

$

13,875

 

 

Customer Acquisition Costs.   Amortization expense for deferred sales commissions was $1.7 million and $1.3 million for the three months ended April 30, 2022 and 2021, respectively. There was no impairment in relation to the costs capitalized for the periods presented.

Global Telecom Corporation (“GTC”). In December 2018, the Company invested $1.3 million in cash in GTC, a privately-held technology company, in exchange for a convertible promissory note that will convert to shares of GTC stock upon the occurrence of certain future events. As amended, the promissory note and accrued interest is due and payable upon the Company’s demand at any time after June 30, 2022. GTC is a variable interest entity for accounting purposes and the Company does not consolidate GTC into its financial statements because the Company is not the primary beneficiary. As of April 30, 2022, the Company’s maximum exposure to loss is equal to the carrying value of the convertible note receivable of $1.8 million, including accrued interest. As of April 30, 2022, the Company had non-cancelable inventory purchase commitments to GTC of $1.4 million.

 

Ooma | FY2023 Form 10-Q | 10

 


Ooma, Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

Accrued expenses and other current liabilities

 

 

 

 

As of

 

 

 

 

 

April 30,

2022

 

 

January 31,

2022

 

Payroll and related expenses

 

 

 

$

5,964

 

 

$

10,853

 

Regulatory fees and taxes

 

 

 

 

3,978

 

 

 

3,933

 

Short-term operating lease liabilities

 

 

 

 

3,248

 

 

 

3,260

 

Customer-related liabilities

 

 

 

 

1,236

 

 

 

1,587

 

Other

 

 

 

 

2,772

 

 

 

3,190

 

Total accrued expenses and other current liabilities

 

 

 

$

17,198

 

 

$

22,823

 

 

 

 

 

 

 


 

Ooma | FY2023 Form 10-Q | 11

 


Ooma, Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

 

Note 5:  Operating Leases

The Company leases its headquarters located in Sunnyvale, California, as well as office and data center space in various locations under non-cancelable operating lease agreements.  

Supplemental balance sheet information related to leases was as follows (in thousands):

 

 

 

 

 

 

 

As of

 

 

 

 

 

 

 

April 30,

2022

 

 

January 31,

2022

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Operating lease right-of-use assets

 

 

 

 

 

$

13,995

 

 

$

14,396

 

   Total leased assets

 

 

 

 

 

$

13,995

 

 

$

14,396

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Short-term operating lease liabilities

 

 

 

 

 

$

3,248

 

 

$

3,260

 

Long-term operating lease liabilities

 

 

 

 

 

 

10,833

 

 

 

11,194

 

   Total lease liabilities

 

 

 

 

 

$

14,081

 

 

$

14,454

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average remaining lease term

 

 

 

 

 

5.6 years

 

 

5.8 years

 

Weighted-average discount rate

 

 

 

 

 

 

3.7

%

 

 

3.7

%

 

Operating lease right-of-use assets and long-term operating lease liabilities are included on the face of the condensed consolidated balance sheet. Short-term operating lease liabilities are included in other current liabilities.

The Company incurred total lease costs in its consolidated statements of operations of $1.2 million for each of the three months ended April 30, 2022 and 2021.

Supplemental cash flow information related to leases was as follows (in thousands):

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

April 30,

2022

 

 

April 30,

2021

 

Cash payments for operating leases

 

 

 

 

 

$

822

 

 

$

980

 

Right-of-use assets recognized in exchange for new operating lease obligations

 

 

 

 

 

$

316

 

 

$

313

 

 

As of April 30, 2022, maturities of lease liabilities under non-cancelable operating leases were as follows (in thousands):

Fiscal Years Ending January 31,

 

 

 

 

 

 

 

April 30, 2022

 

2023 remainder

 

 

 

 

 

 

 

$

2,366

 

2024

 

 

 

 

 

 

 

 

3,175

 

2025

 

 

 

 

 

 

 

 

3,130

 

2026

 

 

 

 

 

 

 

 

1,721

 

2027

 

 

 

 

 

 

 

 

1,684

 

Thereafter

 

 

 

 

 

 

 

 

3,555

 

Total future minimum lease payments

 

 

 

 

 

 

 

 

15,631

 

Less: imputed interest

 

 

 

 

 

 

 

 

(1,550

)

      Present value of lease liabilities

 

 

 

 

 

 

 

$

14,081

 

 

 

 

Ooma | FY2023 Form 10-Q | 12

 


Ooma, Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

 

Note 6: Stockholders’ Equity

The Company has a stock-based compensation plan, the 2015 Equity Incentive Plan, pursuant to which it has granted incentive and nonstatutory stock options and restricted stock units. Additionally, the Company's 2015 Employee Stock Purchase Plan (“ESPP”) allows eligible employees to purchase shares of common stock at a discounted price through payroll deductions.

Stock Options. Stock option activity for the three months ended April 30, 2022 was as follows:

 

 

 

 

 

 

Weighted-Average

 

 

Aggregate

 

 

 

Shares

 

 

Exercise Price

 

 

Intrinsic Value

 

 

 

(in thousands)

 

 

Per Share

 

 

(in thousands)

 

Balance as of January 31, 2022

 

 

1,325

 

 

$

8.93

 

 

$

12,064

 

Granted

 

 

95

 

 

$

16.69

 

&