Ooma, Inc. delivers a diverse range of communication solutions and associated technological innovations to both commercial clients and individual users across the ...
Ooma, Inc., headquartered in Sunnyvale, California, was founded in 2003 and went public in 2015 on the New York Stock Exchange. The company delivers a diverse range of communication solutions and associated technological innovations to both commercial clients and individual users across the United States and Canada. For businesses, Ooma ...Ooma, Inc., headquartered in Sunnyvale, California, was founded in 2003 and went public in 2015 on the New York Stock Exchange. The company delivers a diverse range of communication solutions and associated technological innovations to both commercial clients and individual users across the United States and Canada. For businesses, Ooma offers Ooma Office, a scalable, cloud-based multi-user communication platform tailored for small to mid-sized enterprises, and Ooma Office Pro, which expands capabilities with high-definition video conferencing, call recording, advanced call blocking, and voicemail transcription. Additionally, Ooma provides Ooma Connect for fixed wireless internet, Ooma Managed Wi-Fi for enterprise-grade wireless networks, and Ooma Enterprise, a comprehensive unified-communications-as-a-service (UCaaS) offering. On the consumer front, Ooma supplies various home communication technologies, including Ooma AirDial, a modern landline replacement; Ooma Telo Basic, offering unlimited domestic calling; and Ooma Premier, a subscription package with enhanced features. The flagship Ooma Telo serves as a primary home communications hub, with Ooma Telo 4G integrating a 4G cellular adapter and battery backup. The company also offers the Ooma Mobile HD app and Talkatone for mobile calling, as well as Ooma Smart Security for home monitoring. Ooma distributes its solutions through direct sales, partnerships with distributors, retailers, and resellers, and its online presence. With a team of approximately 1,420 employees, Ooma focuses on innovation and customer value, as reflected in its financial metrics such as a gross profit margin of 61.3% and a net profit margin of 3.2%. Under the leadership of CEO Eric Stang, who also serves as Chairman, Ooma continues to expand its product portfolio and market reach, aiming to revolutionize communications through cloud technology and AI-enhanced features.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$273.6M
+6.5%
+2.6%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$6.5M
+193.6%
+16.3%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+61.1%
+0.6%
-1.9%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+1.6%
+157.6%
+10.9%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+2.4%
+187.9%
+13.4%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$22.1M
+9.6%
+119.1%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+8.1%
+2.9%
+113.7%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
78.7%
+321.1%
-83.8%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.93x
-14.4%
+1.5%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Thank you for standing by, and welcome to Ooma's Second Quarter Fiscal Year 2027 Earnings Conference Call. [Operator Instructions] I would now like to hand the call over to Matthew Robison, Director of Investor Relations. Please go ahead.
Matthew Robison: Thanks, Latif. Good day, everyone, and welcome to the Second Quarter Fiscal 2027 Earnings Call of Ooma, Inc. My name is Matt Robison, Ooma's Director of IR and Corporate Development. On the call with me today are Ooma's CEO, Eric Stang; and CFO, Shig Hamamatsu. After the market closed today, Ooma issued its second quarter fiscal 2027 earnings press release. This release is also available on the company's website, ooma.com. This call is being webcast live and is accessible from a link on the Events and Presentations page of the Investor Relations section of our website. This link will be active for replay of this call for 1 year. During today's presentation, our executives will make forward-looking statements within the meaning of the federal securities laws. Forward-looking statements generally relate to future events or future financial or operating performance. Our expectations and beliefs regarding these matters may not materialize, and actual results are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include those set forth in the press release we issued earlier today and those risks more fully described in our filings with the Securities and Exchange Commission. The forward-looking statements in this presentation are based on information available to us as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law. Please note that other than revenue or as otherwise stated, the financial measures to be disclosed on this call will be on a non-GAAP basis. The non-GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A discussion of why we present non-GAAP financial measures and a reconciliation of the non-GAAP financial measures described in this call to the most directly comparable GAAP financial measures is included in our earnings press release, which is available on our website. On this call, we will give guidance for third quarter and full year fiscal 2027 on a non-GAAP basis. Also, in addition to our press release and 8-K filing, the Overview page and Events and Presentations page in the Investors section of our website as well as the Quarterly Results page of the Financial Information section of our website include links to information about costs and expenses not included in our non-GAAP values and key metrics of our core subscription businesses. These are titled Supplemental Financial Disclosure 1 and Supplemental Financial Disclosure 2. Additionally, our investor presentation slides include GAAP to non-GAAP reconciliation that also provides resolution of GAAP …