The chart below shows how OOMA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, OOMA sees a +0.48% change in stock price 10 days leading up to the earnings, and a +1.80% change 10 days following the report. On the earnings day itself, the stock moves by +0.07%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Strong Q3 Revenue Performance: Q3 was a great quarter for Ooma, achieving $65.1 million in revenue, exceeding expectations by 9% year-over-year.
New Customer Acquisitions: We secured two significant new customer wins in Q3, building on our previous successes from Q1 and Q2.
Record Cash Flow Achievement: Ooma's cash flow from operations reached a record $8.1 million in Q3, contributing to our strong financial performance.
Ooma Business Revenue Growth: Ooma Business contributed 62% of total revenue in Q3, up from 58% a year ago, indicating strong growth in this segment.
Strong Financial Position: We ended the quarter with total cash and investments of $17.1 million, reflecting our solid financial position.
Negative
Q3 Revenue Performance: Q3 revenue was $65.1 million, which was below expectations and reflects a 9% year-over-year increase, indicating slower growth compared to previous quarters.
Rising Operating Expenses: Operating expenses for Q3 were $35.6 million, up $2.2 million or 7% from the same period last year, highlighting rising costs.
User Retention Decline: The total number of core users decreased slightly to 1,242,000 from 1,244,000 at the end of Q2, indicating a decline in user retention.
Weaker Profitability Indicated: Non-GAAP net income for Q3 was $4.6 million, which is below the guidance range of $4.1 million to $4.3 million, suggesting weaker profitability than anticipated.
Core User Decline: The company experienced a sequential decline in total core users primarily due to seat reductions with IWG, which may impact future revenue growth.
Ooma, Inc. (OOMA) Q3 2025 Earnings Call Transcript
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