Ooma Reports Second Quarter Fiscal Year 2022 Financial Results

Rhea-AI Summary

Ooma, Inc. (OOMA) reported fiscal Q2 2022 results with revenue of $47.1 million, up 14% year-over-year. Subscription and services revenue increased to $43.5 million and constituted 93% of total revenue. GAAP net loss stood at $0.4 million, unchanged from the previous year, while non-GAAP net income rose slightly to $3.3 million. Adjusted EBITDA improved to $4.1 million. For Q3, Ooma anticipates revenue between $47.8 million to $48.5 million, with projected GAAP net loss of $0.8 to $1.6 million. Full fiscal year guidance estimates revenue at $188.5 million to $190.0 million.

Positive

• Total revenue increased 14% year-over-year, reaching $47.1 million.
• Subscription and services revenue rose to $43.5 million, 93% of total revenue.
• Non-GAAP net income improved to $3.3 million, up from $3.1 million in Q2 fiscal 2021.
• Adjusted EBITDA increased to $4.1 million, compared to $3.7 million in the same period last year.

Negative

• GAAP net loss remained stable at $0.4 million, indicating no improvement in bottom line.

SUNNYVALE, Calif.--(BUSINESS WIRE)-- Ooma, Inc. (NYSE: OOMA), a smart communications platform for businesses and consumers, today released financial results for the fiscal second quarter ended July 31, 2021.

Second Quarter Fiscal 2022 Financial Highlights:

• Revenue: Total revenue was $47.1 million, up 14% year-over-year. Subscription and services revenue increased to $43.5 million from $38.5 million in the second quarter of fiscal 2021, and was 93% of total revenue, primarily driven by the growth of Ooma Business.
• Net Income/Loss: GAAP net loss was $0.4 million, or $0.02 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 2021. Non-GAAP net income was $3.3 million, or $0.13 per diluted share, compared to non-GAAP net income of $3.1 million, or $0.13 per diluted share in the prior year period.
• Adjusted EBITDA: Adjusted EBITDA was $4.1 million, compared to $3.7 million in the second quarter of fiscal 2021.

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 the second quarter of fiscal 2022, with revenue increasing to $47.1 million and solid non-GAAP profitability,” said Eric Stang, chief executive officer of Ooma. “Key metrics either improved or remained strong across the business, with business revenues increasing sequentially to 26% year over year and expanding to 48% of total revenue. Ooma continued to invest in Q2 to execute its leadership strategy for serving small business customers, develop its enterprise business solutions, and expand internationally. We believe Ooma’s Q2 results combined with the many growth initiatives underway create strong momentum for the second half of our fiscal year.”

Business Outlook:

For the third quarter of fiscal 2022, Ooma expects:

• Total revenue in the range of $47.8 million to $48.5 million.
• GAAP net loss in the range of $0.8 million to $1.6 million and GAAP net loss per share in the range of $0.04 to $0.07.
• Non-GAAP net income in the range of $2.0 million to $2.8 million and non-GAAP net income per share in the range of $0.08 to $0.11.

For the full fiscal year 2022, Ooma expects:

• Total revenue in the range of $188.5 million to $190.0 million.
• GAAP net loss in the range of $3.0 million to $4.5 million, and GAAP net loss per share in the range of $0.14 to $0.20.
• Non-GAAP net income in the range of $10.0 million to $11.5 million, and non-GAAP net income per share in the range of $0.40 to $0.46.

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, 2021, and the fiscal year ending January 31, 2022 (in millions, except per share data):

		Projected range
		Three Months Ending		Fiscal Year Ending
		October 31, 2021		January 31, 2022
		(unaudited)
GAAP net loss		($0.8)-($1.6)		($3.0)-($4.5)
Stock-based compensation and related taxes		3.3		13.2
Amortization of intangible assets		0.3		1.3
Non-GAAP net income		$2.0-$2.8		$10.0-11.5
GAAP net loss per share		($0.04)-($0.07)		($0.14)-($0.20)
Stock-based compensation and related taxes		0.14		0.55
Amortization of intangible assets		0.01		0.05
Non-GAAP net income per share		$0.08-$0.11		$0.40-$0.46
Weighted-average number of shares used in per share amounts:
Basic		23.6		23.5
Diluted		24.9		25.0

Conference Call Information:

Ooma will host a conference call and live webcast for analysts and investors at 5:00 p.m. Eastern time today, September 2, 2021. 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 5264798. International parties can access the call by dialing +1 (647) 689-4135, using conference ID 5264798.

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 8:00 p.m. Eastern time on September 2, 2021, until 11:59 p.m. Eastern time on Thursday, September 9, 2021. To access this replay, parties in the United States and Canada should call +1 (800) 585-8367 and use conference code 5264798. International parties should call +1 (416) 621-4642 and use conference code 5264798.

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 (if any), depreciation and amortization of capital expenditures, amortization of intangible assets, and stock-based compensation and related taxes.

Other non-GAAP financial measures exclude stock-based compensation expense and related taxes and amortization of intangible assets.

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 future economic performance and financial positions, 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. 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: the impact of the COVID-19 pandemic on our business; 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; 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, 2021, filed with the SEC on June 9, 2021. 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,
				2021				2021
	Assets
	Current assets:
	Cash and cash equivalents		$	20,067			$	17,298
	Short-term investments			9,941				11,013
	Accounts receivable, net			4,828				5,228
	Inventories			13,840				12,233
	Other current assets			11,845				10,222
	Total current assets			60,521				55,994
	Property and equipment, net			5,620				5,071
	Operating lease right-of-use assets			14,339				6,045
	Intangible assets, net			4,860				5,513
	Goodwill			4,264				4,264
	Other assets			13,588				12,210
	Total assets		$	103,192			$	89,097
	Liabilities and stockholders' equity
	Current liabilities:
	Accounts payable		$	9,002			$	7,499
	Accrued expenses and other current liabilities			20,896				22,731
	Deferred revenue			16,797				16,426
	Total current liabilities			46,695				46,656
	Long-term operating lease liabilities			11,199				2,815
	Other liabilities			88				75
	Total liabilities			57,982				49,546
	Stockholders' equity:
	Common stock			4				4
	Additional paid-in capital			173,568				166,577
	Accumulated other comprehensive gain			1				7
	Accumulated deficit			(128,363	)			(127,037	)
	Total stockholders' equity			45,210				39,551
	Total liabilities and stockholders' equity		$	103,192			$	89,097

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,
			2021				2020				2021				2020
Revenue:
Subscription and services		$	43,537			$	38,500			$	85,502			$	76,116
Product and other			3,520				2,912				7,127				5,602
Total revenue			47,057				41,412				92,629				81,718
Cost of revenue:
Subscription and services			12,326				11,615				24,665				22,956
Product and other			5,428				4,295				10,579				8,085
Total cost of revenue			17,754				15,910				35,244				31,041
Gross profit			29,303				25,502				57,385				50,677
Operating expenses:
Sales and marketing			14,331				11,779				28,347				24,225
Research and development			9,416				9,050				18,723				17,896
General and administrative			6,014				5,222				11,739				10,250
Total operating expenses			29,761				26,051				58,809				52,371
Loss from operations			(458	)			(549	)			(1,424	)			(1,694	)
Interest and other income, net			19				182				98				261
Net loss		$	(439	)		$	(367	)		$	(1,326	)		$	(1,433	)
Net loss per share of common stock:
Basic and diluted		$	(0.02	)		$	(0.02	)		$	(0.06	)		$	(0.06	)
Weighted-average shares of common stock outstanding:
Basic and diluted			23,359,715				22,232,176				23,209,151				22,066,771

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,
			2021				2020				2021				2020
Cash flows from operating activities:
Net loss		$	(439	)		$	(367	)		$	(1,326	)		$	(1,433	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Stock-based compensation expense			3,321				3,090				6,515				6,098
Depreciation and amortization of capital expenditures			775				756				1,548				1,469
Amortization of intangible assets			326				326				652				652
Non-cash operating lease expense			713				798				1,531				1,592
Other			14				(6	)			24				24
Changes in operating assets and liabilities:
Accounts receivable, net			(762	)			1,157				400				327
Inventories			(394	)			1,174				(1,600	)			(524	)
Other assets			(2,037	)			(1,148	)			(3,007	)			(1,818	)
Accounts payable and other liabilities			343				(4,134	)			(2,127	)			(7,140	)
Deferred revenue			710				867				384				418
Net cash provided by (used in) operating activities			2,570				2,513				2,994				(335	)
Cash flows from investing activities:
Proceeds from maturities and sales of short-term investments			3,000				2,800				9,900				11,986
Purchases of short-term investments			(2,816	)			(2,998	)			(8,859	)			(12,013	)
Capital expenditures			(1,077	)			(746	)			(1,742	)			(1,508	)
Net cash used in investing activities			(893	)			(944	)			(701	)			(1,535	)
Cash flows from financing activities:
Proceeds from issuance of common stock			152				634				1,621				1,901
Shares repurchased for tax withholdings on vesting of restricted stock units			(660	)			(350	)			(1,145	)			(822	)
Net cash (used in) provided by financing activities			(508	)			284				476				1,079
Net increase (decrease) in cash and cash equivalents			1,169				1,853				2,769				(791	)
Cash and cash equivalents at beginning of period			18,898				9,036				17,298				11,680
Cash and cash equivalents at end of period		$	20,067			$	10,889			$	20,067			$	10,889

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,
			2021				2020				2021				2020
Revenue		$	47,057			$	41,412			$	92,629			$	81,718
GAAP gross profit		$	29,303			$	25,502			$	57,385			$	50,677
Stock-based compensation and related taxes			296				269				585				539
Amortization of intangible assets			73				73				146				146
Non-GAAP gross profit		$	29,672			$	25,844			$	58,116			$	51,362
Gross margin on a GAAP basis			62	%			62	%			62	%			62	%
Gross margin on a Non-GAAP basis			63	%			62	%			63	%			63	%
GAAP operating loss		$	(458	)		$	(549	)		$	(1,424	)		$	(1,694	)
Stock-based compensation and related taxes			3,442				3,175				6,767				6,309
Amortization of intangible assets			326				326				652				652
Non-GAAP operating income		$	3,310			$	2,952			$	5,995			$	5,267
GAAP net loss		$	(439	)		$	(367	)		$	(1,326	)		$	(1,433	)
Stock-based compensation and related taxes			3,442				3,175				6,767				6,309
Amortization of intangible assets			326				326				652				652
Non-GAAP net income		$	3,329			$	3,134			$	6,093			$	5,528
GAAP basic and diluted net loss per share		$	(0.02	)		$	(0.02	)		$	(0.06	)		$	(0.06	)
Stock-based compensation and related taxes			0.15				0.14				0.29				0.28
Amortization of intangible assets			0.01				0.02				0.03				0.03
Non-GAAP net income per basic share		$	0.14			$	0.14			$	0.26			$	0.25
Non-GAAP net income per diluted share		$	0.13			$	0.13			$	0.25			$	0.24
GAAP weighted-average basic and diluted shares			23,359,715				22,232,176				23,209,151				22,066,771
Non-GAAP weighted-average diluted shares			24,767,569				23,326,465				24,558,433				23,076,692
GAAP net loss		$	(439	)		$	(367	)		$	(1,326	)		$	(1,433	)
Reconciling items:
Interest and other income, net			(19	)			(182	)			(98	)			(261	)
Depreciation and amortization of capital expenditures			776				756				1,549				1,469
Amortization of intangible assets			326				326				652				652
Stock-based compensation and related taxes			3,442				3,175				6,767				6,309
Adjusted EBITDA		$	4,086			$	3,708			$	7,544			$	6,736

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210902005731/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

Source: Ooma, Inc.

FAQ

What were Ooma's revenue results for fiscal Q2 2022?

Ooma reported total revenue of $47.1 million for fiscal Q2 2022, a 14% increase year-over-year.

How did Ooma perform in terms of net income in Q2 2022?

Ooma's GAAP net loss was $0.4 million in Q2 2022, unchanged from the previous year, while non-GAAP net income rose to $3.3 million.

What is Ooma's guidance for Q3 2022 revenue?

Ooma expects total revenue for Q3 2022 to be between $47.8 million and $48.5 million.

What is the projected revenue for Ooma for the full fiscal year 2022?

Ooma projects total revenue for the full fiscal year 2022 to be in the range of $188.5 million to $190.0 million.