Workflow
Ooma(OOMA) - 2026 Q1 - Quarterly Report
OOMAOoma(OOMA)2025-06-06 21:35
Slide

Revenue Performance - Total revenue for the first quarter of fiscal 2026 was 65.0million,representinga465.0 million, representing a 4% year-over-year increase, primarily driven by growth in Ooma Business[78]. - Total revenue for the three months ended April 30, 2025, was 65.029 million, a 4% increase from 62.499millioninthesameperiodof2024[99].−SubscriptionandservicesrevenuefromOomaBusinessgrew662.499 million in the same period of 2024[99]. - Subscription and services revenue from Ooma Business grew 6% year-over-year, mainly due to user growth[78]. - Subscription and services revenue increased by 1.9 million or 3% year-over-year, driven by an increase in AirDial lines and average revenue per core user[100]. - Product and other revenue rose by 0.7millionor160.7 million or 16% year-over-year, primarily due to increased AirDial shipments[101]. Financial Metrics - Adjusted EBITDA for the first quarter was 6.7 million, compared to 5.0millionintheprioryearquarter[78].−Thenetdollarsubscriptionretentionrateremainedstableat995.0 million in the prior year quarter[78]. - The net dollar subscription retention rate remained stable at 99% year-over-year, indicating strong customer retention[81]. - Total gross margin improved to 62%, up from 61% in the prior year quarter[78]. - Gross profit for total revenue was 40.209 million, reflecting a 5% increase from 38.115millionintheprioryear[102].−Thegrossmarginforsubscriptionandservicesremainedconsistentat7038.115 million in the prior year[102]. - The gross margin for subscription and services remained consistent at 70% year-over-year[103]. Operating Expenses - Operating expenses for the first quarter totaled 40.3 million, slightly down from 40.9millionintheprioryearquarter[98].−Operatingexpensesdecreasedby140.9 million in the prior year quarter[98]. - Operating expenses decreased by 1% year-over-year to 40.266 million, with research and development expenses down by 10%[105]. Cash Position - As of April 30, 2025, total cash and cash equivalents were 19.0million,upfrom19.0 million, up from 17.9 million as of January 31, 2025[78]. - As of April 30, 2025, the company had 19.0millionincashandcashequivalents,sufficienttomeetcashneedsforatleastthenext12months[109].−Netcashprovidedbyoperatingactivitieswas19.0 million in cash and cash equivalents, sufficient to meet cash needs for at least the next 12 months[109]. - Net cash provided by operating activities was 3.703 million, an increase of 0.1millionyear−over−year[110].−Cashusedininvestingactivitieswas0.1 million year-over-year[110]. - Cash used in investing activities was 1.223 million, a decrease of 0.2millioncomparedtothepreviousyear[113].UserMetrics−Coreusersdecreasedto1,225asofApril30,2025,downfrom1,239ayearearlier,withOomaBusinessusersnowcomprisingapproximately410.2 million compared to the previous year[113]. User Metrics - Core users decreased to 1,225 as of April 30, 2025, down from 1,239 a year earlier, with Ooma Business users now comprising approximately 41% of total core users[79]. - Annualized exit recurring revenue (AERR) grew to 234.0 million, up from 227.6millionyear−over−year,drivenbyanincreaseinaveragerevenuepercoreuser[79][80].DebtandFinancing−Thecompanyenteredintoasecuredrevolvingcreditfacilityallowingborrowingupto227.6 million year-over-year, driven by an increase in average revenue per core user[79][80]. Debt and Financing - The company entered into a secured revolving credit facility allowing borrowing up to 30.0 million, potentially increased to 50.0million[115].NetLoss−GAAPnetlossnarrowedto50.0 million[115]. Net Loss - GAAP net loss narrowed to 0.1 million, compared to a net loss of $2.1 million in the prior year quarter, reflecting operational improvements[78].