MMV Financial Provides $3 Million in Debt Financing to Ooma.

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Lakeo
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MMV Financial Provides $3 Million in Debt Financing to Ooma.

Post by Lakeo » Mon Jan 31, 2011 8:19 am

If ooma is doing well, why do they need to borrow more money?

http://www.sfgate.com/cgi-bin/article.c ... 939454.DTL

This link to DSL Reports has some interesting discussion on the matter.

http://www.dslreports.com/forum/r253975 ... operations.

lakeo

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lbmofo
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Re: MMV Financial Provides $3 Million in Debt Financing to Ooma.

Post by lbmofo » Mon Jan 31, 2011 9:49 am

Perhaps it is intended to pay for the new ad campaign with Heat: viewtopic.php?t=10598&start=10#p73918
Customer Since: 3/13/10
Hardware: Telo & Hub
Service: Premier 12/06/10
Verizon Port: 3/15/10 - 4/02/10
Internet: 100 Mbps/10 Mbps
Setup: SB6141/R6700/Ooma
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thunderbird
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Re: MMV Financial Provides $3 Million in Debt Financing to Ooma.

Post by thunderbird » Mon Jan 31, 2011 9:53 am

lbmofo:

That means that you will become extremely busy, helping all of those new customers who have purchased Ooma products.:D

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lbmofo
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Re: MMV Financial Provides $3 Million in Debt Financing to Ooma.

Post by lbmofo » Mon Jan 31, 2011 9:53 am

That will be nice :)
Customer Since: 3/13/10
Hardware: Telo & Hub
Service: Premier 12/06/10
Verizon Port: 3/15/10 - 4/02/10
Internet: 100 Mbps/10 Mbps
Setup: SB6141/R6700/Ooma
MainStreetSHARES Ebates: get Ca$h Back when you shop online!!

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thunderbird
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Re: MMV Financial Provides $3 Million in Debt Financing to Ooma.

Post by thunderbird » Mon Jan 31, 2011 9:56 am

You must own Ooma stock and DECT 6 phone stock! :D

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lbmofo
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Re: MMV Financial Provides $3 Million in Debt Financing to Ooma.

Post by lbmofo » Mon Jan 31, 2011 10:14 am

As with everyone else on here, I am as good as a stock holder in that I benefit directly from Ooma's prosperity and longevity. :P
Customer Since: 3/13/10
Hardware: Telo & Hub
Service: Premier 12/06/10
Verizon Port: 3/15/10 - 4/02/10
Internet: 100 Mbps/10 Mbps
Setup: SB6141/R6700/Ooma
MainStreetSHARES Ebates: get Ca$h Back when you shop online!!

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Lakeo
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Location: Oregon

Re: MMV Financial Provides $3 Million in Debt Financing to Ooma.

Post by Lakeo » Mon Jan 31, 2011 11:19 am

I'm an ooma booster, and there are certainly lots of good reasons for ooma to borrow more money. But, it still makes me wonder if we are riding another Sun Rocket.

lakeo

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nn5i
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Re: MMV Financial Provides $3 Million in Debt Financing to Ooma.

Post by nn5i » Mon Jan 31, 2011 3:13 pm

Ah, well -- now all this, just as my Telo has finished paying for itself and showing a long-term saving.

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lbmofo
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Re: MMV Financial Provides $3 Million in Debt Financing to Ooma.

Post by lbmofo » Mon Jan 31, 2011 5:15 pm

I think as long as Ooma doesn't get reckless in customer acquisition expeditures, I think they will do just fine.

Ooma has already done a great job in making their products widely available online and at many reputable retailers nationwide so I am guessing the business is growing at a pretty good & managable pace yet without a huge price tag.

Taking a look at some cost figures with Vonage, it costs roughly $8, $9 to provide telephony services per line; this is figuring all their Vonage World customers who I am sure are making bukoo loads of international calls.

Therefore, I am sure the cost per sub is considerably less for Ooma (Ex Ooma CMO puts it at roughly $1.75 a month; see below). This figure is relevant in the arena of providing basic/core service with whatever profit Ooma made with selling the hardware.

Then, you got the Premier subscribers (I've seen anywhere from 20% to 40% of the userbase reported) and the folks who subscribe to different international packages not to mention the pay per use prepaid international (I have a friend who pays about $20 a month in prepaid international calls because he thinks the volume of calls is only temporary and doesn't want to sign up to an international package; it has been that way since he signed up mid last year :)) and Ooma app users. I am also guessing that Ooma earns about 50% of the porting fee as net; and lots and lots of folks choose to port.

Hence I think Ooma is doing just fine. My 2 cents.

About what the Ex Ooma CMO, Rich Buchanan, said about what the cost is per sub:

Rich was talking about $1.75 a month @0.5 cents per min worst scenario termination cost with average of 350 outgoing minutes; he was talking cost per sub of about $21 a year. BTW, Rich was figuring the life span of the Ooma device @ 5 years.

http://www.fiercevoip.com/story/ooma-co ... 2009-03-19
Customer Since: 3/13/10
Hardware: Telo & Hub
Service: Premier 12/06/10
Verizon Port: 3/15/10 - 4/02/10
Internet: 100 Mbps/10 Mbps
Setup: SB6141/R6700/Ooma
MainStreetSHARES Ebates: get Ca$h Back when you shop online!!

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