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

 

 

 

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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