Ooma Reports Fourth Quarter and Fiscal Year 2018 Financial Results
Sunnyvale, CA - Tuesday, March 6th, 2018 Ooma, Inc.
(NYSE:OOMA), a smart communications platform for small businesses and consumers, today released financial results for the fourth quarter and fiscal year ended January 31, 2018.
Fourth Quarter Fiscal 2018 Financial Highlights:
- Revenue: Total revenue was $30.2 million, up 10% year-over-year. Subscription and services revenue increased to $27.2 million and was 90% of total revenue, driven by 22% year-over-year growth in our office and residential subscription and services revenue.
- Net Loss: GAAP net loss was $2.9 million, or $0.15 per basic and diluted share, compared to GAAP net loss of $2.8 million, or $0.16 per basic and diluted share, in the fourth quarter fiscal 2017. Non-GAAP net loss was $0.5 million, or $0.03 per basic and diluted share, compared to non-GAAP net loss of $0.2 million, or $0.01 per basic and diluted share, in the prior year period.
- Adjusted EBITDA: Adjusted EBITDA was ($0.2) million compared to $0.2 million in the prior year period.
Full Year Fiscal 2018 Financial Highlights
- Revenue: Total revenue was $114.5 million, up 10% year-over-year. Subscription and services revenue increased 12% year-over-year to $102.0 million and was 89% of total revenue. Product and other revenue decreased 7% year-over-year to $12.5 million.
- Net Loss: GAAP net loss was $13.1 million, or $0.71 per basic and diluted share, compared to GAAP net loss of $12.9 million, or $0.74 per basic and diluted share, in fiscal 2017. Non-GAAP net loss was $1.6 million, or $0.08 per basic and diluted share, compared to non-GAAP net loss of $2.7 million, or $0.16 per basic and diluted share, in fiscal 2017.
- Adjusted EBITDA: Adjusted EBITDA was ($0.2) million for fiscal 2018 compared to ($1.4) million in the prior fiscal year.
For more information about non-GAAP net loss and Adjusted EBITDA, see the section below titled “Non-GAAP Financial Measures” and the reconciliation provided in this release.
“We are pleased to deliver another solid quarter driven by 55% year-over-year growth in our Office subscription and services revenue,” said Eric Stang, chief executive officer of Ooma. “We achieved good progress on our growth initiatives to expand Ooma Office for small businesses and enhance home security on our Telo residential platform. We enter fiscal 2019 with added momentum due to two recent acquisitions: Voxter, which enables us to provide custom UCaaS solutions for mid-market and enterprise businesses; and Butterfleye, an AI powered video camera and security platform which strengthens our home security solution. We believe we are well positioned to execute our long-term strategy to bring unique and differentiated cloud communications and security solutions to the marketplace.”
Our guidance below includes the effects of the new accounting standard ASC 606 and the impact of our recent acquisitions.Business Outlook:
For the first quarter fiscal 2019, Ooma expects to report:
- Total revenue in the range of $29.5 million to $30.0 million.
- GAAP net loss in the range of $3.5 million to $4.2 million and GAAP net loss per share in the range of $0.19 to $0.21 based on approximately 19.3 million basic and diluted weighted average common shares outstanding.
- Non-GAAP net loss in the range of $0.7 million to $1.2 million and non-GAAP net loss per share in the range of $0.04 to $0.06 based on approximately 19.3 million basic and diluted weighted average common shares outstanding.
For the full fiscal year 2019, Ooma expects to report:
Conference Call Information:
- Total revenue in the range of $123.0 million to $127.0 million.
- GAAP net loss in the range of $14.5 million to $17.0 million, and GAAP net loss per share in the range of $0.73 to $0.85, based on approximately 19.9 million basic and diluted weighted average common shares outstanding.
- Non-GAAP net loss in the range of $2.5 million to $4.5 million, and non-GAAP net loss per share in the range of $0.13 to $0.23 based on approximately 19.9 million basic and diluted weighted average common shares outstanding.
Ooma will host a conference call and live webcast for analysts and investors at 5:00 p.m. Eastern time today, March 6, 2018. 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 (833) 233-4456, using conference ID 2767865. International parties can access the call by dialing +1 (647) 689-4135, using conference ID 2767865.
The webcast will be accessible on Ooma’s investor relations website at https://investors.ooma.com
for a period of one year. A telephonic replay of the conference call will be available through Sunday, March 11, 2018. To access the replay, parties in the United States and Canada should call +1 (800) 585-8367 and use conference ID 2767865. International parties should call +1 (416) 621-4642 and enter conference ID 2767865.
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. Adjusted EBITDA represents the net loss before interest and other expense or income, depreciation and amortization and other non-GAAP expenses.
These non-GAAP financial measures exclude non-cash stock-based compensation expense and related taxes, and acquisition related costs and amortization of intangibles.
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.
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, 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, 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. This press release also includes forward–looking statements regarding the company being well positioned to bring unique and differentiated solutions to the market place. 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; 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 Quarterly Report on Form 10-Q for the quarter ended October 31, 2017, filed with the SEC on December 8, 2017. 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.
For full report- please visit: https://investors.ooma.com/investors/press-releases/press-release-details/2018/Ooma-Reports-Fourth-Quarter-and-Fiscal-Year-2018-Financial-Results/default.aspx
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 that are flexible and scalable. For consumers, Ooma’s residential phone service provides PureVoice HD voice quality, advanced functionality and integration with mobile devices. Ooma’s innovative smart security solution delivers a range of wireless security sensors that make it easy for anyone to protect their home or business. Learn more at www.ooma.com.
Matthew S. Robison
Director of IR and Corporate Development
phone: (650) 300-1480
Director of Corporate Communications
phone: (650) 566-6693