Ooma Reports Second Quarter Fiscal 2016 Financial Results
Palo Alto, CA - Wednesday, September 2nd, 2015
Second Quarter Fiscal 2016 Financial Highlights:
- Revenue: Total revenue of $21.1 million, up 27% year-over-year. Subscription and services revenue increased 37% to $17.4 million, and was 83% of total revenue. Product and other revenue decreased 8% to $3.7 million, and was 17% of total revenue.
- Net Loss: GAAP net loss was $3.4 million, or $0.80 per basic and diluted share, compared to GAAP net loss of $1.1 million, or $0.48 per basic and diluted share, in the second quarter of fiscal 2015. Non-GAAP net loss was $2.5 million, or $0.58 per basic and diluted share, compared to non-GAAP net loss of $1.3 million, or $0.59 per basic and diluted share, in the second quarter of fiscal 2015. For more information about non-GAAP net loss, see the section below titled “Non-GAAP Financial Measures” and the reconciliation from GAAP net loss at the end of this earnings release.
- Cash and cash equivalents: $59.2 million as of July 31, 2015.
“This was a strong quarter for Ooma,” said Eric Stang, chief executive officer of Ooma. “We delivered solid financial results, with revenue growth of 27% year-over-year and core user growth of 29% year-over-year. Our unique hybrid SaaS platform allows us to capitalize on the trend of both small business and home communications moving to the Cloud. Our superior voice quality and low cost are just some of the differentiators which allowed us to grow our core user base substantially and drive subscription recurring revenue growth of 37% year-over-year in the July quarter. The completion of our initial public offering in the second quarter will allow us to further build our brand awareness and offer additional connected services to our target markets.”￼￼￼
Recent Business Highlights:
- Expanded Ooma Office capacity to support up to 20 users for greater flexibility.
- Launched mobile app for Ooma Office.
- Ooma Telo named Editors’ Choice for home VoIP services by PCMag.
- Released Ooma Office Business Promoter, a powerful lead generation tool designed to drive customer acquisition for small businesses.
- Completed initial public offering and began trading on the NYSE on July 17, 2015. Net proceeds from the IPO were approximately $57 million, after underwriting discounts and other offering costs.
Conference Call Information:
Ooma will host a conference call and live webcast for analysts and investors at 5:00 p.m. Eastern Time on September 2, 2015. 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) 337-8198, using conference code 9325890. International parties can access the call by dialing +1 (719) 325-2329, using conference code 9325890.
The webcast will be accessible on Ooma’s investor relations website at http://investors.ooma.com for a period of one year. A telephonic replay of the conference call will be available through Wednesday, September 9, 2015. To access the replay, parties in the United States and Canada should call +1 (888) 203-1112 and enter conference code 9325890. International parties should call +1 (719) 457-0820 and enter conference code 9325890.
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 loss, non-GAAP net loss per share, non-GAAP gross profit and gross margin, non-GAAP operating loss, and Adjusted EBITDA. These non-GAAP financial measures exclude non-cash stock-based compensation expense, the change in the fair value of our convertible preferred stock warrants, as well as the write-off of non-cash deferred debt issuance costs, change in fair value of our acquisition-related contingent consideration and income tax benefit. These non-GAAP financial measures are presented to enhance investors’ understanding of the results of Ooma’s 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 attached to this release.
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995. In particular, statements regarding future economic performance, finances, and expectations and objectives of management 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 and trends and that do not relate to historical matters. In particular, this press release includes forward looking statements regarding the trend of communications moving to the cloud, building brand awareness and offering additional connected services. Although the forward-looking statements contained in this presentation 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; intense competition; our reliance on retailers and reseller partnerships to sell our products; 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; our limited operating history; 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 with the Securities and Exchange Commission, including the risk factors contained in our final prospectus filed with the SEC on July 17, 2015. 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.
SOURCE Ooma, Inc.
Investor Relations: Cynthia Hiponia or Erin Rheaume, The Blueshirt Group for Ooma, Inc., firstname.lastname@example.org, (650) 300- 1480, Public Relations: Inez Be, Access Communications, TeamOoma@accesspr.com, (415) 844-6254
About Ooma, Inc.
Founded in 2004, Ooma creates new communications experiences for small businesses and consumers. Its smart platform serves as a communications hub, which offers cloud-based telephony and other connected services. Ooma combines PureVoice HD call quality and innovative features with mobile applications for reliable anytime, anywhere calling. The company has been ranked the No. 1 home phone service for overall satisfaction and value for five consecutive years by the leading consumer research publication. Ooma is also partnering with connected device makers to create smarter offices and homes. Ooma is available in stores and online from leading retailers. For more information about Ooma, please visit www.ooma.com or follow us on Twitter, LinkedIn or Facebook.
Ooma, Ooma Telo, Ooma Office, PureVoice and the Ooma logo are trademarks of Ooma, Inc. All other company and product names may be trademarks of the respective companies with which they are associated.
The detailed terms and conditions of Ooma's products, services, and support are fully set forth in the Terms and Conditions, available online under the "legal" tab on the bottom navigation bar of the Ooma Web site.
Vanessa Piccinini / Access Emanate Communications