Ooma Inc Reports Fiscal Second Quarter 2025 Financial Results

Ooma, Inc. Reports Fiscal Second Quarter 2025 Financial Results

Ooma, Inc. (NYSE: OOMA), a smart communications platform for businesses and consumers, today released its financial results for the fiscal second quarter ended July 31, 2024.

Key Financial Metrics

Ooma's financial performance demonstrated a robust revenue growth of 10% year-over-year, surpassing Wall Street's estimates. Non-GAAP metrics also showed positive trends, with Adjusted EBITDA reaching a record level of $5.6 million.

Segment Revenue Performance

Subscription and services revenue, which accounts for 93% of total revenue, grew by 9% year-over-year, reflecting a strong contribution from Ooma Business and 2600Hz.

Key Developments and Operational Highlights

• Introduction of new feature enhancements for Ooma products.
• Expansion of customer base.
• Addition of new resale partners for AirDial.
• Record levels for Adjusted EBITDA and Cash Flow from Operations.

Executive Commentary

"Ooma made strong progress in Q2 with revenues of $64.1 million and non-GAAP net income of $4.1 million and is well-positioned, we believe, for the second half of fiscal 2025," said Eric Stang, Chief Executive Officer. "Ooma executed well in Q2 on both the top and bottom line, driving 10% revenue growth year-over-year and record levels for Adjusted EBITDA and Cash Flow from Operations. Progress continued across the business with new feature enhancements, customer expansion, and the addition of new resale partners for AirDial. Looking ahead, we believe Ooma's premier position in each of its business segments and key new customer wins in the first half of this year create the opportunity for continued strong performance."

Dividends and Share Repurchase Program

The earnings release did not mention any announced dividends or share repurchase program.

Forward Guidance

For the third quarter of fiscal 2025, Ooma expects: - Total revenue in the range of $64.2 million to $64.6 million. - GAAP net loss in the range of $1.7 million to $1.9 million, and GAAP net loss per share in the range of $0.06 to $0.07. - Non-GAAP net income in the range of $4.1 million to $4.3 million, and non-GAAP net income per share in the range of $0.15 to $0.16.

For the full fiscal year 2025, Ooma anticipates: - Total revenue in the range of $254.0 million to $255.5 million. - GAAP net loss in the range of $7.7 million to $8.2 million, and GAAP net loss per share in the range of $0.30 to $0.32. - Non-GAAP net income in the range of $15.7 million to $16.2 million, and non-GAAP net income per share in the range of $0.57 to $0.59.

Stock Price Movement

Following the earnings release, Ooma's share price decreased by 2.88%.

Final Thoughts

Ooma's Q2 fiscal 2025 results reflect solid financial performance and strategic business growth, positioning the company for continued success in the upcoming quarters. The forward guidance suggests a stable outlook with potential for further gains in revenue and net income. As always, investors should remain attentive to Ooma's strategic initiatives and market dynamics.