Ooma, Inc. (NYSE: OOMA), a smart communications platform for
businesses and consumers, today released financial results for the
fiscal second quarter ended July 31, 2022.
Second Quarter Fiscal 2023 Financial Highlights:
- Revenue: Total revenue was $52.7 million, up 12%
year-over-year. Subscription and services revenue increased to
$48.0 million from $43.5 million in the second quarter of fiscal
2022, and was 91% of total revenue, primarily driven by the growth
of Ooma Business.
- Net Income/Loss: GAAP net income was $0.3 million, or
$0.01 per basic and diluted share, compared to GAAP net loss of
$0.4 million, or $0.02 per basic and diluted share, in the second
quarter of fiscal 2022. GAAP net income for the second quarter
includes a tax benefit for the release of a $2.0 million valuation
allowance resulting from the recording of certain intangible assets
in connection with the acquisition of OnSIP announced today.
Non-GAAP net income was $3.0 million, or $0.12 per diluted share,
compared to non-GAAP net income of $3.3 million, or $0.13 per
diluted share in the prior year period.
- Adjusted EBITDA: Adjusted EBITDA was $4.0 million,
compared to $4.1 million in the second 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 achieved strong results for Q2, with revenue increasing
12% year-over-year to $52.7 million, improved gross margins, and
solid non-GAAP net income,” said Eric Stang, chief executive
officer of Ooma. “Ooma’s investment in new features for Ooma
Office, market and channel development for Ooma Enterprise,
international expansion to serve a large multinational customer,
and the development and Q2 launch of AirDial all contributed to
growth. We believe these initiatives represent a powerful strategy
going forward. In addition, I’m excited to announce that Ooma
acquired Junction Networks Inc., which does business as OnSIP. This
acquisition will add approximately 50,000 new business users to
Ooma and is expected to be accretive starting in Q4 of this year.
It’s my pleasure to welcome all of OnSIP’s employees to the Ooma
family.”
Business Outlook:
For the third quarter of fiscal 2023, Ooma expects:
- Total revenue in the range of $56.0 million to $56.5
million.
- GAAP net loss in the range of $1.6 million to $2.1 million and
GAAP net loss per share in the range of $0.06 to $0.08.
- Non-GAAP net income in the range of $2.7 million to $3.2
million and non-GAAP net income per share in the range of $0.11 to
$0.13.
For the full fiscal year 2023, Ooma expects:
- Total revenue in the range of $215.5 million to $218.5
million.
- GAAP net loss in the range of $3.3 million to $4.3 million, and
GAAP net loss per share in the range of $0.13 to $0.17.
- Non-GAAP net income in the range of $11.4 million to $12.4
million, and non-GAAP net income per share in the range of $0.45 to
$0.49.
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 third
quarter ending October 31, 2022 and the fiscal year ending January
31, 2023 (in millions, except per share data):
Projected range Three Months Ending Fiscal Year
Ending October 31, 2022 January 31, 2023
(unaudited) GAAP net loss
($1.6)-($2.1
)
($3.3)-($4.3
)
Stock-based compensation and related taxes
3.6
14.1
Amortization of intangible assets and acquisition-related costs
1.2
3.6
Acquisition-related income tax benefit
—
(2.0
)
Non-GAAP net income
$2.7-$3.2
$11.4-$12.4
GAAP net loss per share
($0.06)-($0.08
)
($0.13)-($0.17
)
Stock-based compensation and related taxes
0.14
0.56
Amortization of intangible assets and acquisition-related costs
0.05
0.14
Acquisition-related income tax benefit
—
(0.08
)
Non-GAAP net income per share
$0.11-$0.13
$0.45-$0.49
Weighted-average number of shares used in per share
amounts: Basic
24.6
24.5
Diluted
25.2
25.3
Conference Call Information:
Ooma will host a conference call and live webcast for analysts
and investors today at 5:00 p.m. Eastern time. 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
approximately two hours after the call is completed or about 8:00
p.m. Eastern time on September 1, 2022 until 11:59 p.m. Eastern
time Thursday, September 8, 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 benefit, depreciation and amortization of
capital expenditures, amortization of intangible assets,
acquisition-related transaction costs, and stock-based compensation
expense and related taxes.
Other non-GAAP financial measures exclude stock-based
compensation expense and related taxes, amortization of intangible
assets, acquisition-related transaction costs, and
acquisition-related income tax benefit. 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 regarding expectations regarding the Company’s initiatives,
strategies and acquisition of OnSIP 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 April 30, 2022, filed
with the SEC on June 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) July
31, January 31,
2022
2022
Assets Current assets: Cash and cash equivalents
$
16,192
$
19,667
Short-term investments
6,277
11,613
Accounts receivable, net
6,592
7,310
Inventories
21,075
13,841
Other current assets
14,968
13,598
Total current assets
65,104
66,029
Property and equipment, net
7,698
6,481
Operating lease right-of-use assets
14,663
14,396
Intangible assets, net
11,690
4,208
Goodwill
8,695
4,264
Other assets
15,132
13,875
Total assets
$
122,982
$
109,253
Liabilities and stockholders' equity Current
liabilities: Accounts payable
$
12,968
$
7,507
Accrued expenses and other current liabilities
22,904
22,823
Deferred revenue
17,686
16,600
Total current liabilities
53,558
46,930
Long-term operating lease liabilities
11,076
11,194
Other liabilities
48
73
Total liabilities
64,682
58,197
Stockholders' equity: Common stock
5
4
Additional paid-in capital
187,571
179,860
Accumulated other comprehensive loss
(60
)
(20
)
Accumulated deficit
(129,216
)
(128,788
)
Total stockholders' equity
58,300
51,056
Total liabilities and stockholders' equity
$
122,982
$
109,253
OOMA, INC. CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited, amounts in thousands, except share
and per share data) Three Months Ended Six
Months Ended July 31, July 31, July 31,
July 31,
2022
2021
2022
2021
Revenue: Subscription and services
$
47,995
$
43,537
$
94,718
$
85,502
Product and other
4,658
3,520
8,272
7,127
Total revenue
52,653
47,057
102,990
92,629
Cost of revenue: Subscription and services
12,675
12,326
25,884
24,665
Product and other
6,161
5,428
11,337
10,579
Total cost of revenue
18,836
17,754
37,221
35,244
Gross profit
33,817
29,303
65,769
57,385
Operating expenses: Sales and marketing
17,432
14,331
33,583
28,347
Research and development
11,119
9,416
21,617
18,723
General and administrative
6,912
6,014
12,974
11,739
Total operating expenses
35,463
29,761
68,174
58,809
Loss from operations
(1,646
)
(458
)
(2,405
)
(1,424
)
Interest and other income, net
17
19
50
98
Loss before income taxes
(1,629
)
(439
)
(2,355
)
(1,326
)
Income tax benefit
1,967
—
1,927
—
Net income (loss)
$
338
$
(439
)
$
(428
)
$
(1,326
)
Net income (loss) per share of common stock: Basic and
diluted
$
0.01
$
(0.02
)
$
(0.02
)
$
(0.06
)
Weighted-average shares of common stock outstanding: Basic
24,388,275
23,359,715
24,254,465
23,209,151
Diluted
24,873,764
23,359,715
24,254,465
23,209,151
OOMA, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (Unaudited, amounts in thousands) Three
Months Ended Six Months Ended July 31, July
31, July 31, July 31,
2022
2021
2022
2021
Cash flows from operating activities: Net income (loss)
$
338
$
(439
)
$
(428
)
$
(1,326
)
Adjustments to reconcile net income (loss) to net cash provided by
operating activities: Stock-based compensation expense
3,505
3,321
6,842
6,515
Depreciation and amortization of capital expenditures
889
775
1,739
1,548
Amortization of intangible assets
372
326
698
652
Amortization of operating lease right-of-use assets
732
713
1,449
1,531
Deferred income tax benefit
(2,043
)
—
(2,043
)
—
Other
11
14
26
24
Changes in operating assets and liabilities: Accounts receivable,
net
(715
)
(762
)
973
400
Inventories and deferred inventory costs
(6,665
)
(394
)
(7,158
)
(1,600
)
Prepaid expenses and other assets
355
(2,037
)
(2,326
)
(3,007
)
Accounts payable, accrued expenses and other liabilities
4,641
343
2,690
(2,127
)
Deferred revenue
743
710
520
384
Net cash provided by operating activities
2,163
2,570
2,982
2,994
Cash flows from investing activities: Proceeds from
maturities and sales of short-term investments
4,325
3,000
9,125
9,900
Purchases of short-term investments
(489
)
(2,816
)
(3,869
)
(8,859
)
Capital expenditures
(1,353
)
(1,077
)
(2,812
)
(1,742
)
Business acquisition
(9,771
)
—
(9,771
)
—
Net cash used in investing activities
(7,288
)
(893
)
(7,327
)
(701
)
Cash flows from financing activities: Proceeds from
issuance of common stock
—
152
1,554
1,621
Shares repurchased for tax withholdings on vesting of restricted
stock units
(336
)
(660
)
(684
)
(1,145
)
Net cash (used in) provided by financing activities
(336
)
(508
)
870
476
Net (decrease) increase in cash and cash equivalents
(5,461
)
1,169
(3,475
)
2,769
Cash and cash equivalents at beginning of period
21,653
18,898
19,667
17,298
Cash and cash equivalents at end of period
$
16,192
$
20,067
$
16,192
$
20,067
OOMA, INC. Reconciliation of Non-GAAP Financial
Measures (Unaudited, amounts in thousands, except
percentages, shares and per share data) Three Months
Ended Six Months Ended July 31, July 31,
July 31, July 31,
2022
2021
2022
2021
Revenue
$
52,653
$
47,057
$
102,990
$
92,629
GAAP gross profit
$
33,817
$
29,303
$
65,769
$
57,385
Stock-based compensation and related taxes
248
296
496
585
Amortization of intangible assets
79
73
152
146
Non-GAAP gross profit
$
34,144
$
29,672
$
66,417
$
58,116
Gross margin on a GAAP basis
64
%
62
%
64
%
62
%
Gross margin on a Non-GAAP basis
65
%
63
%
64
%
63
%
GAAP operating loss
$
(1,646
)
$
(458
)
$
(2,405
)
$
(1,424
)
Stock-based compensation and related taxes
3,567
3,442
7,007
6,767
Amortization of intangible assets and acquisition-related costs
1,173
326
1,499
652
Non-GAAP operating income
$
3,094
$
3,310
$
6,101
$
5,995
GAAP net income (loss)
$
338
$
(439
)
$
(428
)
$
(1,326
)
Stock-based compensation and related taxes
3,567
3,442
7,007
6,767
Amortization of intangible assets and acquisition-related costs
1,173
326
1,499
652
Acquisition-related income tax benefit
(2,043
)
—
(2,043
)
—
Non-GAAP net income
$
3,035
$
3,329
$
6,035
$
6,093
GAAP basic and diluted net income (loss) per share
$
0.01
$
(0.02
)
$
(0.02
)
$
(0.06
)
Stock-based compensation and related taxes
0.14
0.15
0.29
0.29
Amortization of intangible assets and acquisition-related costs
0.05
0.01
0.06
0.03
Acquisition-related income tax benefit
(0.08
)
—
(0.08
)
—
Non-GAAP net income per basic share
$
0.12
$
0.14
$
0.25
$
0.26
Non-GAAP net income per diluted share
$
0.12
$
0.13
$
0.24
$
0.25
GAAP weighted-average basic shares
24,388,275
23,359,715
24,254,465
23,209,151
GAAP weighted-average diluted shares
24,873,764
23,359,715
24,254,465
23,209,151
Non-GAAP weighted-average diluted shares
24,873,764
24,767,569
24,908,575
24,558,433
GAAP net income (loss)
$
338
$
(439
)
$
(428
)
$
(1,326
)
Reconciling items: Interest and other income, net
(17
)
(19
)
(50
)
(98
)
Income taxes
(1,967
)
—
(1,927
)
—
Depreciation and amortization of capital expenditures
889
775
1,739
1,548
Amortization of intangible assets and acquisition-related costs
1,173
326
1,499
652
Stock-based compensation and related taxes
3,567
3,442
7,007
6,767
Adjusted EBITDA
$
3,983
$
4,085
$
7,840
$
7,543
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220901005769/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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