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, 2024.
Fourth Quarter Fiscal 2024 Financial Highlights:
- Revenue: Total revenue was $61.7 million, up 9%
year-over-year. Subscription and services revenue increased to
$58.0 million from $52.6 million in the fourth quarter of fiscal
2023, and was 94% of total revenue, primarily driven by the growth
of Ooma Business and the acquisition of 2600hz, Inc.
(“2600Hz”).
- Net Income/Loss: GAAP net loss was $3.1 million, or
$0.12 per basic and diluted share, compared to GAAP net loss of
$0.4 million, or $0.02 per basic and diluted share, in the fourth
quarter of fiscal 2023. Non-GAAP net income was $3.5 million, or
$0.13 per diluted share, compared to non-GAAP net income of $4.1
million, or $0.16 per diluted share in the prior year period.
- Adjusted EBITDA: Adjusted EBITDA was $5.2 million,
compared to $5.1 million in the fourth quarter of fiscal 2023.
Full Year Fiscal 2024 Financial Highlights:
- Revenue: Total revenue was $236.7 million, up 10%
year-over-year. Subscription and services revenue increased to
$221.6 million from $199.1 million in fiscal 2023, and was 94% of
total revenue, primarily driven by the growth of Ooma Business and
the acquisition of 2600Hz.
- Net Income/Loss: GAAP net loss was $0.8 million, or
$0.03 per basic and diluted share, compared to GAAP net loss of
$3.7 million, or $0.15 per basic and diluted share, in fiscal 2023.
GAAP net loss for fiscal 2024 includes tax benefit for the release
of a $3.1 million valuation allowance resulting from the recording
of certain intangible assets associated with the acquisition of
2600Hz in late October 2023, as well as a $1.0 million gain on
consolidation of facility costs, partially offset by $0.7 million
in acquisition-related costs and $0.5 million of certain
restructuring costs. Non-GAAP net income was $15.4 million, or
$0.59 per diluted share, compared to non-GAAP net income of $13.6
million, or $0.54 per diluted share in the prior fiscal year.
- Adjusted EBITDA: Adjusted EBITDA was $19.8 million,
compared to $17.4 million in fiscal 2023.
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 financially in Q4, delivering $61.7 million
in revenue and $3.5 million of non-GAAP net income,” said Eric
Stang, chief executive officer of Ooma. “For our full fiscal year
2024, we grew revenue by 10%, non-GAAP net income by 13%, adjusted
EBITDA by 14%, and cash flow from operations by 40%. We achieved
this growth while also investing significantly in new market
opportunities and international expansion, and we believe we enter
FY25 in a strong position with leading product solutions. Our plans
for FY25 include continued investment across our business as we
capitalize on key industry trends, such as the expansion of cloud
communications for small to medium sized businesses and the
sunsetting of copper lines. We believe our strategic focus on small
to medium sized businesses, larger businesses that are in select
verticals, POTS copper line replacement, and wholesale and CPaaS
platform opportunities positions us well for future success.”
Business Outlook:
For the first quarter of fiscal 2025, Ooma expects:
- Total revenue in the range of $61.7 million to $62.2
million.
- GAAP net loss in the range of $2.6 million to $2.9 million and
GAAP net loss per share in the range of $0.10 to $0.11.
- Non-GAAP net income in the range of $3.0 million to $3.3
million and non-GAAP net income per share in the range of $0.11 to
$0.12.
For the full fiscal year 2025, Ooma expects:
- Total revenue in the range of $250.0 million to $253.0
million.
- GAAP net loss in the range of $8.6 million to $9.6 million, and
GAAP net loss per share in the range of $0.32 to $0.36.
- Non-GAAP net income in the range of $14.0 million to $15.0
million, and non-GAAP net income per share in the range of $0.51 to
$0.55.
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 first fiscal
quarter ending April 30, 2024 and the fiscal year ending January
31, 2025 (in millions, except per share data):
Projected range Three Months Ending Fiscal
Year Ending April 30, 2024 January 31, 2025
(unaudited) GAAP net loss
($2.6)-($2.9)
($8.6)-($9.6)
Stock-based compensation and related taxes
4.4
17.8
Amortization of intangible assets
1.5
5.8
Non-GAAP net income $3.0-$3.3 $14.0-$15.0
GAAP net
loss per share
($0.10)-($0.11)
($0.32)-($0.36)
Stock-based compensation and related taxes
0.16
0.66
Amortization of intangible assets
0.06
0.21
Non-GAAP net income per share $0.11-$0.12 $0.51-$0.55
Weighted-average number of shares used in per share amounts:
Basic
26.2
26.7
Diluted
26.6
27.4
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 March 5, 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/BI133e36b6ab344768928995f79302ae36
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 the net income before interest and other
income, income taxes, depreciation and amortization of capital
expenditures, amortization of intangible assets,
acquisition-related transaction costs, certain litigation
settlement and restructuring costs, non-recurring gains, and
stock-based compensation expense and related taxes.
Other non-GAAP financial measures exclude stock-based
compensation expense and related taxes, certain non-recurring
charges and gains, such as acquisition-related income tax benefits,
acquisition-related transaction costs, amortization of intangible
assets and certain legal settlement 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 expansion efforts and development
of new product features; our ability to successfully integrate
2600Hz and to achieve expected benefits from the acquisition;
failure to retain former employees and 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 October 31, 2023, filed
with the SEC on December 8, 2023. 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, consumers and service providers, delivered through
smart cloud-based communications platforms and services. For
businesses of all sizes, Ooma offers advanced voice and
collaboration features including messaging, intelligent virtual
attendants and video meetings. Ooma’s all-in-one replacement for
analog phone lines helps businesses maintain mission-critical
systems by moving connectivity to the cloud. For consumers, Ooma’s
residential phone service provides PureVoice HD voice quality,
advanced features 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,
2024
2023
Assets Current assets: Cash and cash equivalents
$
17,536
$
24,137
Short-term investments
—
2,723
Accounts receivable, net
9,864
7,131
Inventories
19,782
26,246
Other current assets
16,497
14,368
Total current assets
63,679
74,605
Property and equipment, net
9,897
7,996
Operating lease right-of-use assets
17,041
12,702
Intangible assets, net
27,952
10,463
Goodwill
23,069
8,655
Other assets
17,615
16,584
Total assets
$
159,253
$
131,005
Liabilities and stockholders' equity Current
liabilities: Accounts payable
$
7,848
$
13,462
Accrued expenses and other current liabilities
26,586
26,726
Deferred revenue
17,041
17,216
Total current liabilities
51,475
57,404
Long-term operating lease liabilities
13,676
10,426
Debt, net of current portion
16,000
—
Other liabilities
15
31
Total liabilities
81,166
67,861
Stockholders' equity: Common stock
5
5
Additional paid-in capital
211,361
195,605
Accumulated other comprehensive loss
(1
)
(23
)
Accumulated deficit
(133,278
)
(132,443
)
Total stockholders' equity
78,087
63,144
Total liabilities and stockholders' equity
$
159,253
$
131,005
OOMA, INC. CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited, amounts in thousands, except share
and per share data) Three Months Ended Fiscal
Year Ended January 31,2024 January 31,2023
January 31,2024 January 31,2023 Revenue:
Subscription and services
$
57,963
$
52,638
$
221,624
$
199,105
Product and other
3,713
3,858
15,113
17,060
Total revenue
61,676
56,496
236,737
216,165
Cost of revenue: Subscription and services
17,493
14,545
63,667
54,499
Product and other
6,430
5,992
25,838
24,018
Total cost of revenue
23,923
20,537
89,505
78,517
Gross profit
37,753
35,959
147,232
137,648
Operating expenses: Sales and marketing
18,759
18,069
73,503
69,671
Research and development
13,674
11,824
49,935
45,939
General and administrative
7,701
6,563
27,795
27,795
Total operating expenses
40,134
36,456
151,233
143,405
Loss from operations
(2,381
)
(497
)
(4,001
)
(5,757
)
Interest and other (expense) income, net
(26
)
188
1,188
332
Loss before income taxes
(2,407
)
(309
)
(2,813
)
(5,425
)
Income tax (provision) benefit
(658
)
(108
)
1,978
1,770
Net loss
$
(3,065
)
$
(417
)
$
(835
)
$
(3,655
)
Net loss per share of common stock: Basic and diluted
$
(0.12
)
$
(0.02
)
$
(0.03
)
$
(0.15
)
Weighted-average shares of common stock outstanding: Basic
and diluted
25,915,204
24,900,265
25,573,288
24,506,525
OOMA, INC. CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS (Unaudited, amounts in thousands)
Three Months Ended Fiscal Year Ended January
31,2024 January 31,2023 January 31,2024
January 31,2023 Cash flows from operating activities:
Net loss
$
(3,065
)
$
(417
)
$
(835
)
$
(3,655
)
Adjustments to reconcile net loss to net cash provided by operating
activities: Stock-based compensation expense
3,995
3,521
14,833
13,904
Depreciation and amortization of capital expenditures
1,087
1,034
4,317
3,771
Amortization of intangible assets
1,485
794
3,711
2,286
Amortization of operating lease right-of-use assets
749
730
2,966
2,978
Facilities consolidation (gain) charge
—
—
(956
)
1,402
Deferred income tax benefit
103
—
(3,131
)
(2,133
)
Other
—
3
(5
)
37
Changes in operating assets and liabilities: Accounts receivable,
net
(684
)
(6
)
(2,587
)
434
Inventories and deferred inventory costs
1,670
(4,198
)
6,341
(12,333
)
Prepaid expenses and other assets
(49
)
(1,156
)
(2,280
)
(2,460
)
Accounts payable, accrued expenses and other liabilities
478
3,265
(9,579
)
4,509
Deferred revenue
(261
)
(268
)
(522
)
33
Net cash provided by operating activities
5,508
3,302
12,273
8,773
Cash flows from investing activities: Proceeds from
maturities and sales of short-term investments
—
1,805
2,750
12,705
Purchases of short-term investments
—
—
—
(3,869
)
Capital expenditures
(1,275
)
(1,304
)
(6,159
)
(5,211
)
Business acquisition, net of cash acquired
(3,009
)
—
(31,919
)
(9,771
)
Net cash (used in) provided by investing activities
(4,284
)
501
(35,328
)
(6,146
)
Cash flows from financing activities: Proceeds from
issuance of common stock
—
720
2,664
3,397
Shares repurchased for tax withholdings on vesting of restricted
stock units
(392
)
(423
)
(1,741
)
(1,554
)
Proceeds from issuance of long-term debt
—
—
18,000
—
Repayment of long-term debt
(2,000
)
—
(2,000
)
—
Credit facility issuance costs
(168
)
—
(469
)
—
Net cash (used in) provided by financing activities
(2,560
)
297
16,454
1,843
Net (decrease) increase in cash and cash equivalents
(1,336
)
4,100
(6,601
)
4,470
Cash and cash equivalents at beginning of period
18,872
20,037
24,137
19,667
Cash and cash equivalents at end of period
$
17,536
$
24,137
$
17,536
$
24,137
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 31,2024
January 31,2023 January 31,2024 January
31,2023 Revenue $
61,676
$
56,496
$
236,737
$
216,165
GAAP gross profit $
37,753
$
35,959
$
147,232
$
137,648
Stock-based compensation and related taxes
246
248
1,026
986
Amortization of intangible assets
786
139
1,151
430
Non-GAAP gross profit $
38,785
$
36,346
$
149,409
$
139,064
Gross margin on a GAAP basis
61
%
64
%
62
%
64
%
Gross margin on a Non-GAAP basis
63
%
64
%
63
%
64
%
GAAP operating loss $
(2,381
)
$
(497
)
$
(4,001
)
$
(5,757
)
Stock-based compensation and related taxes
4,054
3,563
15,110
14,155
Amortization of intangible assets
1,484
794
3,710
2,286
Acquisition-related costs
476
157
884
1,538
Facilities consolidation (gain) charge
—
—
(956
)
1,402
Legal settlement costs
—
—
300
—
Restructuring costs
477
—
477
—
Non-GAAP operating income $
4,110
$
4,017
$
15,524
$
13,624
GAAP net loss $
(3,065
)
$
(417
)
$
(835
)
$
(3,655
)
Stock-based compensation and related taxes
4,054
3,563
15,110
14,155
Amortization of intangible assets
1,484
794
3,710
2,286
Acquisition-related costs
476
157
693
1,538
Facilities consolidation (gain) charge
—
—
(956
)
1,402
Legal settlement costs
—
—
300
—
Acquisition-related income tax benefit
103
—
(3,131
)
(2,133
)
Restructuring costs
477
—
477
—
Non-GAAP net income $
3,529
$
4,097
$
15,368
$
13,593
GAAP diluted net loss per share $
(0.12
)
$
(0.02
)
$
(0.03
)
$
(0.15
)
Stock-based compensation and related taxes
0.15
0.14
0.58
0.57
Amortization of intangible assets
0.06
0.03
0.14
0.09
Acquisition-related costs
0.02
0.01
0.03
0.06
Facilities consolidation (gain) charge
—
—
(0.04
)
0.06
Legal settlement costs
—
—
0.01
—
Acquisition-related income tax benefit
—
—
(0.12
)
(0.08
)
Restructuring costs
0.02
—
0.02
—
Non-GAAP net income per basic share $
0.13
$
0.16
$
0.59
$
0.55
Non-GAAP net income per diluted share $
0.13
$
0.16
$
0.59
$
0.54
GAAP weighted-average basic and diluted shares
25,915,204
24,900,265
25,573,288
24,506,525
Non-GAAP weighted-average diluted shares
26,237,825
25,552,378
26,136,049
25,233,985
GAAP net loss $
(3,065
)
$
(417
)
$
(835
)
$
(3,655
)
Reconciling items: Interest and other expense (income), net
26
(188
)
(1,188
)
(332
)
Income tax provision (benefit)
658
108
(1,978
)
(1,770
)
Depreciation and amortization of capital expenditures
1,087
1,034
4,318
3,771
Facilities consolidation (gain) charge
—
—
(956
)
1,402
Legal settlement costs
—
—
300
—
Amortization of intangible assets
1,485
794
3,711
2,286
Acquisition-related costs
476
157
884
1,538
Stock-based compensation and related taxes
4,054
3,563
15,110
14,155
Restructuring costs
477
—
477
—
Adjusted EBITDA $
5,198
$
5,051
$
19,843
$
17,395
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version on businesswire.com: https://www.businesswire.com/news/home/20240305988006/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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