Document and Entity Information
Document and Entity Information - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jan. 31, 2024 | Mar. 28, 2024 | Jul. 31, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 31, 2024 | ||
Document Fiscal Year Focus | 2024 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | OOMA | ||
Entity Registrant Name | Ooma, Inc. | ||
Entity Central Index Key | 0001327688 | ||
Current Fiscal Year End Date | --01-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity File Number | 001-37493 | ||
Entity Tax Identification Number | 06-1713274 | ||
Entity Address, Address Line One | 525 Almanor Avenue | ||
Entity Address, Address Line Two | Suite 200 | ||
Entity Address, City or Town | Sunnyvale | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94085 | ||
City Area Code | 650 | ||
Local Phone Number | 566-6600 | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common Stock, par value $0.0001 | ||
Security Exchange Name | NYSE | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Incorporation, State or Country Code | DE | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Common Stock, Shares Outstanding | 26.4 | ||
Entity Public Float | $ 356 | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Name | KPMG LLP | ||
Auditor Location | Santa Clara, California | ||
Auditor Firm ID | 185 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s definitive Proxy Statement for its 2024 Annual Meeting of Stockholders are incorporated by reference in Part III of this Annual Report on Form 10-K. Such Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates. Except with respect to information specifically incorporated by reference in this Form 10-K, the Proxy Statement is not deemed to be filed as part of this Form 10-K. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jan. 31, 2024 | Jan. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 17,536,000 | $ 24,137,000 |
Short-term investments | 0 | 2,723,000 |
Accounts receivable, net | 9,864,000 | 7,131,000 |
Inventories | 19,782,000 | 26,246,000 |
Other current assets | 16,497,000 | 14,368,000 |
Total current assets | 63,679,000 | 74,605,000 |
Property and equipment, net | 9,897,000 | 7,996,000 |
Operating lease right-of-use assets | 17,041,000 | 12,702,000 |
Intangible assets, net | 27,952,000 | 10,463,000 |
Goodwill | 23,069,000 | 8,655,000 |
Other assets | 17,615,000 | 16,584,000 |
Total assets | 159,253,000 | 131,005,000 |
Current liabilities: | ||
Accounts payable | 7,848,000 | 13,462,000 |
Accrued expenses and other current liabilities | 26,586,000 | 26,726,000 |
Deferred revenue | 17,041,000 | 17,216,000 |
Total current liabilities | 51,475,000 | 57,404,000 |
Long-term operating lease liabilities | 13,676,000 | 10,426,000 |
Debt, net of current portion | 16,000,000 | |
Other long-term liabilities | 15,000 | 31,000 |
Total liabilities | 81,166,000 | 67,861,000 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity: | ||
Preferred stock $0.0001 par value: 10 million shares authorized; none issued and outstanding | ||
Common stock $0.0001 par value: 100 million shares authorized; 26.0 million and 25.0 million shares issued and outstanding, respectively | 5,000 | 5,000 |
Additional paid-in capital | 211,361,000 | 195,605,000 |
Accumulated other comprehensive loss | (1,000) | (23,000) |
Accumulated deficit | (133,278,000) | (132,443,000) |
Total stockholders’ equity | 78,087,000 | 63,144,000 |
Total liabilities and stockholders’ equity | $ 159,253,000 | $ 131,005,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jan. 31, 2024 | Jan. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 26,000,000 | 25,000,000 |
Common stock, shares outstanding | 26,000,000 | 25,000,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Revenue: | |||
Total revenue | $ 236,737 | $ 216,165 | $ 192,290 |
Cost of revenue: | |||
Total cost of revenue | 89,505 | 78,517 | 73,852 |
Gross profit | 147,232 | 137,648 | 118,438 |
Operating expenses: | |||
Sales and marketing | 73,503 | 69,671 | 58,631 |
Research and development | 49,935 | 45,939 | 38,193 |
General and administrative | 27,795 | 27,795 | 23,544 |
Total operating expenses | 151,233 | 143,405 | 120,368 |
Loss from operations | (4,001) | (5,757) | (1,930) |
Interest and other income, net | 1,188 | 332 | 179 |
Loss before income taxes | (2,813) | (5,425) | (1,751) |
Income tax benefit | 1,978 | 1,770 | |
Net loss | $ (835) | $ (3,655) | $ (1,751) |
Net loss per share of common stock: | |||
Net loss per share of common stock, Basic | $ (0.03) | $ (0.15) | $ (0.07) |
Net loss per share of common stock, Diluted | $ (0.03) | $ (0.15) | $ (0.07) |
Weighted-average shares of common stock outstanding: | |||
Weighted-average shares of common stock outstanding, Basic | 25,573,288 | 24,506,525 | 23,473,849 |
Weighted-average shares of common stock outstanding, Diluted | 25,573,288 | 24,506,525 | 23,473,849 |
Subscription and services | |||
Revenue: | |||
Total revenue | $ 221,624 | $ 199,105 | $ 175,942 |
Cost of revenue: | |||
Total cost of revenue | 63,667 | 54,499 | 49,563 |
Product and other | |||
Revenue: | |||
Total revenue | 15,113 | 17,060 | 16,348 |
Cost of revenue: | |||
Total cost of revenue | $ 25,838 | $ 24,018 | $ 24,289 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock and Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
BALANCE at Jan. 31, 2021 | $ 39,551 | $ 166,581 | $ 7 | $ (127,037) |
BALANCE, Shares at Jan. 31, 2021 | 22,873,020 | |||
Issuance of common stock under equity-based plans | 2,706 | $ 2,706 | ||
Issuance of common stock under equity based plans, Shares | 1,168,245 | |||
Shares repurchased for tax withholdings on vesting of RSUs | (2,105) | $ (2,105) | ||
Shares repurchased for tax withholdings on vesting of RSUs, Shares | (105,072) | |||
Stock-based compensation | 12,682 | $ 12,682 | ||
Other comprehensive Income (loss) | (27) | (27) | ||
Net loss | (1,751) | (1,751) | ||
BALANCE at Jan. 31, 2022 | 51,056 | $ 179,864 | (20) | (128,788) |
BALANCE, Shares at Jan. 31, 2022 | 23,936,193 | |||
Issuance of common stock under equity-based plans | 3,397 | $ 3,397 | ||
Issuance of common stock under equity based plans, Shares | 1,174,532 | |||
Shares repurchased for tax withholdings on vesting of RSUs | (1,554) | $ (1,554) | ||
Shares repurchased for tax withholdings on vesting of RSUs, Shares | (114,633) | |||
Stock-based compensation | 13,903 | $ 13,903 | ||
Other comprehensive Income (loss) | (3) | (3) | ||
Net loss | (3,655) | (3,655) | ||
BALANCE at Jan. 31, 2023 | 63,144 | $ 195,610 | (23) | (132,443) |
BALANCE, Shares at Jan. 31, 2023 | 24,996,092 | |||
Issuance of common stock under equity-based plans | 2,664 | $ 2,664 | ||
Issuance of common stock under equity based plans, Shares | 1,116,166 | |||
Shares repurchased for tax withholdings on vesting of RSUs | (1,741) | $ (1,741) | ||
Shares repurchased for tax withholdings on vesting of RSUs, Shares | (137,387) | |||
Stock-based compensation | 14,833 | $ 14,833 | ||
Other comprehensive Income (loss) | 22 | 22 | ||
Net loss | (835) | (835) | ||
BALANCE at Jan. 31, 2024 | $ 78,087 | $ 211,366 | $ (1) | $ (133,278) |
BALANCE, Shares at Jan. 31, 2024 | 25,974,871 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Cash flows from operating activities: | |||
Net loss | $ (835) | $ (3,655) | $ (1,751) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Stock-based compensation expense | 14,833 | 13,903 | 12,682 |
Depreciation and amortization of capital expenditures | 4,317 | 3,771 | 3,117 |
Amortization of intangible assets | 3,711 | 2,286 | 1,304 |
Amortization of operating lease right-of-use assets | 2,966 | 2,978 | 2,939 |
Deferred income tax benefit | (3,131) | (2,133) | |
Facilities consolidation (gain) charge | (956) | 1,402 | |
Other | (5) | 38 | 53 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (2,587) | 434 | (2,082) |
Inventories and deferred inventory costs | 6,341 | (12,333) | (1,571) |
Prepaid expenses and other assets | (2,280) | (2,460) | (4,609) |
Accounts payable, accrued expenses and other liabilities | (9,579) | 4,509 | (3,599) |
Deferred revenue | (522) | 33 | 172 |
Net cash provided by operating activities | 12,273 | 8,773 | 6,655 |
Cash flows from investing activities: | |||
Proceeds from maturities of short-term investments | 2,750 | 12,705 | 16,505 |
Proceeds from sales of short-term investments | 300 | ||
Purchases of short-term investments | (3,869) | (17,488) | |
Capital expenditures | (6,159) | (5,211) | (4,204) |
Business acquisition | (31,919) | (9,771) | |
Net cash used in investing activities | (35,328) | (6,146) | (4,887) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock | 2,664 | 3,397 | 2,706 |
Proceeds from issuance of long-term debt | 18,000 | ||
Repayment of long-term debt | (2,000) | ||
Credit facility issuance costs | (469) | ||
Net cash provided by financing activities | 16,454 | 1,843 | 601 |
Net (decrease) increase in cash and cash equivalents | (6,601) | 4,470 | 2,369 |
Cash and cash equivalents at beginning of period | 24,137 | 19,667 | 17,298 |
Cash and cash equivalents at end of period | 17,536 | 24,137 | 19,667 |
Supplementary cash flow disclosure: | |||
Cash paid for income taxes, net | 765 | 409 | 34 |
Non-cash investing and financing activities: | |||
Capital expenditures included in accounts payable at period-end | 188 | 243 | 324 |
Purchase price receivable for business acquisition (see Note 13) | 300 | ||
Restricted Stock Units (RSUs) | |||
Cash flows from financing activities: | |||
Shares repurchased for tax withholdings on vesting of restricted stock units ("RSU") | $ (1,741) | $ (1,554) | $ (2,105) |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ (835) | $ (3,655) | $ (1,751) |
Insider Trading Arrangements
Insider Trading Arrangements | 12 Months Ended |
Jan. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On December 26, 2023 , Jenny Yeh , our Senior Vice President , General Counsel, and Secretary, and a member of our board of directors, adopted a Rule 10b5-1 trading arrangement (as that term is defined in Regulation S-K, Item 408), providing for the sale from time to time of up to 17,300 shares of common stock. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). The duration of the trading arrangement is until March 1, 2025 , or earlier if all transactions under the trading arrangement are completed. No other directors or officers, as defined in Rule 16a-1(f), have adopted and/or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” each as defined in Regulation S-K Item 408, during the fiscal quarter ended January 31, 2024. |
Directors or Officers | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Jenny Yeh | |
Trading Arrangements, by Individual | |
Name | Jenny Yeh |
Title | Senior Vice President |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | December 26, 2023 |
Arrangement Duration | 432 days |
Aggregate Available | 17,300 |
Trd Arr Expiration Date | Mar. 01, 2025 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 12 Months Ended |
Jan. 31, 2024 | |
Accounting Policies [Abstract] | |
Overview and Basis of Presentation | Note 1: Overview and Basis of Presentation Ooma, Inc. and its wholly-owned subsidiaries (collectively, “Ooma” or the “Company”) provides leading communications services and related technologies for businesses and consumers, delivered from its smart SaaS and unified communications platforms. The Company is headquartered in Sunnyvale, California. Principles of Presentation and Consolidation. The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. In the opinion of the Company’s management, the consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. Fiscal Year. The Company’s fiscal year ends on January 31. References to fiscal 2024, fiscal 2023, and fiscal 2022 refer to the fiscal years ended January 31, 2024, January 31, 2023, and January 31, 2022, respectively. Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s consolidated financial statements and accompanying notes. Significant estimates include, but are not limited to, those related to revenue recognition, inventory valuation, deferred sales commissions, valuation of goodwill and intangible assets, operating lease assets and liabilities, regulatory fees and indirect tax accruals, loss contingencies, stock-based compensation and income taxes (including valuation allowances). The Company bases its estimates and assumptions on historical experience, where applicable, and other factors that it believes to be reasonable under the circumstances. These estimates are based on information available as of the date of the consolidated financial statements, and assumptions are inherently subjective in nature. Therefore, actual results could differ from management’s estimates. Comprehensive Loss. For all periods presented, comprehensive loss approximated net loss in the consolidated statements of operations and differences were not material. Therefore, the Consolidated Statements of Comprehensive Loss have been omitted. Segment Reporting. The chief operating decision maker for the Company is the chief executive officer, who reviews the Company’s financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Accordingly, management has determined that the Company operates in a single reportable segment. Revenue was principally derived from customers located in the United States for all periods presented, with a small portion attributable to customers located in Canada and other countries. Long-lived assets located outside of the United States were not significant. Foreign currency. The U.S. dollar is the functional currency of the Company's foreign subsidiaries. Remeasurement and transaction gains and losses are included in interest and other income, net and were not material for any periods presented. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2024 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 2: Significant Accounting Policies Revenue Recognition The Company derives its revenue from two sources: (1) subscription and services revenue, which is derived primarily from the sale of subscription plans for communications services and other connected services; and (2) product and other revenue. Subscriptions and services are sold directly to end-customers. Products are sold to end-customers through several channels, including but not limited to distributors, retailers and resellers (collectively “channel partners”), and Ooma sales representatives. The Company determines revenue recognition through the following steps: • identification of the contract(s) with a customer; • identification of the performance obligations in the contract; • determination of the transaction price; • allocation of the transaction price to the performance obligations in the contract; and • recognition of revenue when, or as, the Company satisfies a performance obligation Subscription and Services Revenue. Most of the Company’s revenue is derived from recurring subscription fees related to service plans such as Ooma Business, Ooma Residential and other communications services. Service plans are generally sold as monthly subscriptions; however, certain plans are also offered as annual or multi-year subscriptions. Subscription revenue is generally recognized ratably over the contractual service term. A small portion of revenue is recognized on a point-in-time basis from services such as prepaid international calls, directory assistance, and advertisements displayed through the Talkatone mobile application. Product and Other Revenue. Product and other revenue is generated primarily from the sale of on-premise devices and end-point devices, including Ooma AirDial, and to a lesser extent from porting fees that enable customers to transfer their existing phone numbers. The Company recognizes product and other revenue from sales to direct end-customers and channel partners at the point-in-time that control is transferred. The Company’s distribution agreements with channel partners typically contain clauses for price protection and right of return. Credits and/or rebates issued for expected product returns and customer sales incentives are deemed to be variable consideration, which the Company estimates and records as a reduction to revenue at the point of sale. Product returns and sales incentives are estimated based on the Company’s historical experience, current trends and expectations regarding future experience. As of January 31, 2024 and 2023, total reserves for product returns and sales incentives were approximately $ 0.8 million and $ 0.7 million, respectively. Revenue is recorded net of any sales and telecommunications taxes collected from customers to be remitted to government authorities. Amounts billed to customers related to shipping and handling are classified as product and other revenue. Shipping and handling costs are expensed as incurred and classified as cost of product and other revenue. Multiple performance obligations. The Company’s contracts with customers typically contain multiple performance obligations that consist of communications services and related product(s). For these contracts, individual performance obligations are accounted for separately if they are distinct. The contract transaction price is then allocated to the separate performance obligations on a relative stand-alone selling price basis. The Company determines the stand-alone selling price (“SSP”) for its communications services based on observable historical stand-alone sales to customers, for which a substantial majority of selling prices must fall within a reasonably narrow pricing range. The Company determines the SSP for its on-premise devices and end-point devices based upon management’s best estimates and judgments, considering company-specific factors such as pricing strategies, discounting practices, and estimated product and other costs. Cash Equivalents and Short-term Investments. All highly liquid investments with an original maturity of three months or less at the date of purchase are classified as cash equivalents. Short-term investments are classified as available-for-sale and carried at fair value, with unrealized gains and losses, net of tax, recorded as a separate component of stockholders’ equity within accumulated other comprehensive loss. The cost of securities sold is based upon the specific identification method. Fair Value of Financial Instruments. The Company records its financial assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the reporting date. The Company estimates and categorizes the fair value of its financial assets by applying the following hierarchy: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2: Observable prices based on inputs not quoted in active markets but are corroborated by market data. Level 3: Unobservable inputs that are supported by little or no market activity The carrying value of the Company’s financial instruments, including cash equivalents, accounts receivable, inventory, accounts payable and other current assets and current liabilities approximates fair value due to their short maturities. The carrying value of debt approximates its fair value. Concentrations. Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, short-term investments, accounts receivable and convertible note receivable (Note 5). The Company’s cash, cash equivalents and short-term investments are held by financial institutions that management believes are of high-credit quality although the balances, at times, may exceed federally insured limits. The Company performs credit evaluations of its customers’ financial condition and generally does not require collateral for sales made on credit. Customers who represented 10% or more of net accounts receivable were as follows: As of January 31, January 31, Customer A 33 % 18 % Accounts Receivable. Accounts receivable are recorded net of an allowance for doubtful accounts for expected credit losses. Allowances are recorded based upon assessment of several factors, including historical experience, aging of receivable balances and economic conditions. As of January 31, 2024 and 2023, the allowance for doubtful accounts was $ 0.3 million. Bad debt expense recorded in the consolidated statement of operations was not material for the periods presented. Inventories. Inventories, which consist of raw materials and finished goods, include the cost to purchase manufactured products, allocated labor and overhead. Inventories are stated at the lower of actual cost and net realizable value on a first-in, first-out basis. The Company writes down the carrying value of inventory to net realizable value for estimated excess and obsolete inventory based upon assumptions about forecast demand and market conditions. Inventory carrying value adjustments are recognized as a component of cost of product and other revenue in the consolidated statement of operations. Customer Acquisition Costs. Sales commissions and other costs paid to internal sales personnel, third-party sales entities and value-added resellers are considered incremental and recoverable costs of obtaining customer contracts. The resellers are selling agents for the Company and earn sales commissions that are directly tied to the value of the contracts that the Company enters with the end-user customers. These costs are capitalized and amortized on a systematic basis over the expected period of benefit of five years , or customer contractual term for multi-year contracts. The Company has determined the period of benefit taking into consideration both qualitative and quantitative factors, such as expected subscription term and expected renewal periods of its customer contracts, product life cycles and customer attrition. Amortization expense is recorded in sales and marketing expenses in the consolidated statement of operations. The Company pays sales commissions on initial contracts, contracts for increased purchases with existing customers (expansion contracts) and certain contract renewals. The Company periodically evaluates whether there have been any changes in its business, the market conditions in which it operates or other events which would indicate that its amortization period should be changed or if there are potential indicators of impairment. To date, there have been no material impairment losses related to the costs capitalized. Property and Equipment, net. Property and equipment, net is stated at cost, less accumulated depreciation and amortization. Depreciation and amortization is computed on a straight-line basis over the estimated useful lives of those assets, generally two to five years . Capitalized costs related to development of the Company's customer-facing websites are amortized on a straight-line basis over an estimated useful life of three to five years . Leasehold improvements are amortized over the shorter of the lease term or estimated useful lives of the respective assets. Repairs and maintenance costs that do not extend the life or improve the asset are expensed as incurred. Operating Leases. Right-of-use lease assets and lease liabilities are recognized at the lease commencement date based upon the present value of the remaining lease payments over the lease term. The Company uses its incremental borrowing rate in determining the present value of lease payments, as the discount rates implicit in the Company’s leases cannot be readily determined. Lease agreements that contain both lease and non-lease components are combined and accounted for as a single component. Business Combinations. The Company accounts for its business combinations using the acquisition method of accounting. The purchase consideration is allocated to the tangible assets acquired, liabilities assumed and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair value of these assets acquired and liabilities assumed is recorded as goodwill. Management is required to make significant estimates and assumptions in determining fair values, especially with respect to acquired intangible assets, which include but are not limited to: the selection of valuation methodologies, expected future revenue and cash flows, expected customer attrition rates from acquired customers, future changes in technology, and discount rates. These estimates are inherently uncertain and, therefore, actual results may differ from the estimates made. As a result, during the measurement period of up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill as information on the facts and circumstances that existed as of the acquisition date becomes available. Upon the conclusion of the measurement period, any subsequent adjustments are recorded in the consolidated statements of operations . Acquisition-related expenses are recognized separately from business combinations and are expensed as incurred. Intangible Assets. Acquired intangible assets, which primarily consist of customer relationships, are amortized over their estimated useful lives. Ea ch period, the Company evaluates the estimated remaining useful life of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. Impairment Assessment. Long-lived assets, such as property and equipment, capitalized website development costs intangible assets and operating lease right-of-use assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. The Company evaluates goodwill for impairment annually during its fourth quarter of each fiscal year, or more frequently if and when circumstances indicate that goodwill may not be recoverable. The Company has a single reporting unit and consequently evaluates goodwill for impairment based on an evaluation of the fair value of the Company as a whole. See Note 7: Leases for disclosure of impairment charges recorded in fiscal 2024. The Company did no t record any material impairment charges for fiscal 2023 or fiscal 2022. Advertising. Advertising costs are expensed as incurred, except for production costs associated with television and radio advertising, which are expensed on the first date of airing. Advertising costs are included in sales and marketing expense and were $ 16.5 million, $ 16.4 million and $ 14.5 million in fiscal 2024, 2023 and 2022, respectively. Stock-Based Compensation. The majority of the Company's stock-based compensation is derived from RSUs granted to employees and non-employee directors. Stock-based compensation is generally measured based on the closing market price of the Company’s common stock on the date of grant and recognized on a straight-line basis over the vesting period. Forfeitures are recorded in the period in which they occur. Income Taxes. Income taxes are recorded using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income (loss) in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. A tax position is recognized when it is more-likely-than-not that the tax position will be sustained upon examination, including resolution of any related appeals or litigation processes. A tax position that meets the more likely than not recognition threshold is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority. Interest and penalties associated with unrecognized tax benefits are classified as income tax expense. The Company had no interest or penalty accruals associated with uncertain tax benefits in its consolidated balance sheets and statements of operations for any periods presented. |
Revenue and Deferred Revenue
Revenue and Deferred Revenue | 12 Months Ended |
Jan. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue and Deferred Revenue | Note 3: Revenue and Deferred Revenue Disaggregated revenue Revenue disaggregated by revenue source consisted of the following (in thousands): Fiscal Year Ended January 31, 2024 2023 2022 Subscription and services revenue $ 221,624 $ 199,105 $ 175,942 Product and other revenue 15,113 17,060 16,348 Total revenue $ 236,737 $ 216,165 $ 192,290 The Company derived approximately 58 % , 53 % and 49 % of its total revenue from Ooma Business and approximately 40 % , 45 % and 49 % of its total revenue from Ooma Residential in fiscal 2024, 2023, and 2022, respectively. No individual country outside of the United States represented 10% or more of total revenue for the periods presented. No single customer accounted for 10% or more of total revenue for the periods presented. Deferred revenue primarily consists of billings or payments received in advance of meeting revenue recognition criteria. Deferred services revenue is recognized on a ratable basis over the term of the contract as the services are provided. As of January 31, January 31, Subscription and services $ 17,034 $ 17,239 Product and other 22 8 Total deferred revenue $ 17,056 17,247 Less: current deferred revenue 17,041 17,216 Non-current deferred revenue included in other long-term liabilities $ 15 $ 31 During fiscal 2024, the Company recognized revenue of approximately $ 17.2 million pertaining to amounts deferred as of January 31, 2023. As of January 31, 2024, the majority of the Company’s deferred revenue balance was composed of subscription contracts that were invoiced during the fourth quarter of fiscal 2024. Remaining performance obligations . As of January 31, 2024, contract revenue that had not yet been recognized for open contracts with an original expected length of greater than one year was approxima tely $ 26.5 million. The Company expects to recognize revenue on approximately 41 % of this amount over the next 12 month s, with the balance to be recognized thereafter. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 4: Fair Value Measurements As of January 31, 2024 , the Company had no short-term investments. The Company had $ 17.5 million in cash. Financial assets measured at fair value on a recurring basis by level were as follows (in thousands): Balance as of January 31, 2023 Level 1 Level 2 Total Cash and cash equivalents: Money market funds $ 11,380 $ — $ 11,380 Total cash equivalents $ 11,380 $ — 11,380 Cash 12,757 Total cash and cash equivalents $ 24,137 Short-term investments: U.S. treasury securities $ 1,232 $ — $ 1,232 Commercial paper — 1,491 1,491 Total short-term investments $ 1,232 $ 1,491 $ 2,723 The Company classifies its cash equivalents and short-term investments within Level 1 or Level 2 because it uses quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value. The Company has no Level 3 assets or liabilities. For the periods presented, the amortized cost of cash equivalents and marketable securities approximated their fair value and there were no material realized or unrealized gains or losses, either individually or in the aggregate. Short-term investments due in less than a year was $ 2.7 million as of January 31, 2023. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Jan. 31, 2024 | |
Balance Sheet Components [Abstract] | |
Balance Sheet Components | Note 5: Balance Sheet Components The following sections and tables provide details of selected balance sheet items (in thousands): Inventories As of January 31, January 31, Finished goods $ 12,024 $ 13,715 Raw materials 7,758 12,531 Total inventory $ 19,782 $ 26,246 Property and equipment, net As of Estimated life January 31, January 31, Computer hardware and software 3 - 4 $ 6,995 $ 6,847 Network and engineering equipment 3 - 5 7,504 6,283 Website development costs 3 - 5 9,046 6,251 Customer premise equipment 3 - 5 7,466 5,954 Office furniture and fixtures 5 204 497 Leasehold improvements 1 - 5 637 124 Total property and equipment 31,852 25,956 Less: accumulated depreciation and amortization ( 21,955 ) ( 17,960 ) Property and equipment, net $ 9,897 $ 7,996 Depreciation and amortization of property and equipment totaled $ 4.3 million, $ 3.8 million and $ 3.1 million in fiscal 2024, 2023 and 2022, respectively. Other current and non-current assets As of January 31, January 31, Deferred sales commissions, current $ 8,579 $ 7,826 Prepaid expenses and other 4,177 2,777 Convertible note receivable (see "GTC" below) 2,257 1,899 Other current assets 1,484 1,866 Total other current assets $ 16,497 $ 14,368 Deferred sales commissions, non-current $ 15,257 $ 14,467 Other assets 2,358 2,117 Total other non-current assets $ 17,615 $ 16,584 Customer Acquisition Costs. Amortization of deferred sales commissions was $ 9.0 million, $ 7.6 million and $ 6.0 million in fiscal 2024, 2023 and 2022, respectively. Global Telecom Corporation (“GTC”). In December 2018, the Company invested $ 1.3 million in cash in GTC, a privately-held technology company, in exchange for a convertible promissory note that will convert to shares of GTC stock upon the occurrence of certain future events. As amended, the promissory note and accrued interest are due and payable upon the Company’s demand at any time after June 30, 2023. GTC was a variable interest entity for accounting purposes and the Company did not consolidate GTC into its financial statements because the Company was not the primary beneficiary. As of January 31, 2024, the Company’s maximum exposure to loss was equal to the carrying value of the convertible note receivable of $ 2.3 million, including accrued interest. The Company made total payments to GTC for inventory purchases and related shipping costs of approximately $ 0.4 million and $ 2.6 million in fiscal 2024 and 2023, respectively. As of January 31, 2024 and 2023, the Company did no t have any material non-cancelable inventory purchase commitments to GTC. On March 8, 2024 ("Financing Date"), GTC completed an equity financing which qualified as a conversion event under the convertible note. Per the terms of the note, in the event of an equity financing all of the outstanding principal and accrued but unpaid interests would be converted to a number of shares of standard preferred stock equal to the Conversion Amount divided by the Conversion Price. Conversion Amount is defined as outstanding principal plus unpaid accrued interest. Conversion Price is 70 % of the per share price for the preferred stock. As of the Financing Date, the carrying value of the convertible note of $ 2.3 million, including accrued interest was converted to 8.2 million shares of preferred stock of GTC. Accrued expenses and other current liabilities As of January 31, January 31, Payroll and related expenses $ 12,301 $ 13,621 Regulatory fees and taxes 4,598 3,609 Short -term operating lease liabilities 3,742 3,617 Customer-related liabilities 1,118 1,045 Other 4,827 4,834 Total accrued expenses and other current liabilities $ 26,586 $ 26,726 |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets | 12 Months Ended |
Jan. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Acquired Intangible Assets | Note 6: Goodwill and Acquired Intangible Assets During fiscal 2024 , the Company recognized intangibles of $ 21.2 million and goodwill of $ 14.4 million in connection with a business acquisition completed in October 2023. See Note 13: Business Acquisition. The goodwill balance was as follows (in thousands): Total Balance at January 31, 2023 $ 8,655 Additions due to 2600Hz acquisition 14,414 Balance at January 31, 2024 $ 23,069 The gross value, accumulated amortization and carrying values of intangible assets were as follows (in thousands): As of January 31, 2024 Estimated life Gross Accumulated Amortization Carrying Developed technology 2 - 7 $ 20,618 $ ( 2,865 ) $ 17,753 Customer relationships 5 - 7 16,545 ( 7,336 ) 9,209 Trade names 2 - 5 1,685 ( 695 ) 990 Total intangible assets $ 38,848 $ ( 10,896 ) $ 27,952 As of January 31, 2023 Estimated life Gross Accumulated Amortization Carrying Customer relationships 5 - 7 $ 14,745 $ ( 4,775 ) $ 9,970 Developed technology 2 - 5 2,219 ( 1,891 ) 328 Trade names 2 - 5 684 ( 519 ) 165 Total intangible assets $ 17,648 $ ( 7,185 ) $ 10,463 Amortization expense was $ 3.7 million, $ 2.3 million and $ 1.3 million in fiscal 2024, 2023 and 2022, respectively. At January 31, 2024, the estimated future amortization expense for intangible assets was as follows (in thousands): Fiscal Years Ending January 31, Total 2025 $ 5,768 2026 5,624 2027 5,068 2028 3,950 2029 3,030 Thereafter 4,512 Total $ 27,952 |
Operating Leases
Operating Leases | 12 Months Ended |
Jan. 31, 2024 | |
Leases [Abstract] | |
Operating Leases | Note 7: Operating Leases The Company leases its headquarters located in Sunnyvale, California, as well as office space and data center facilities in several locations under non-cancelable operating lease agreements, with expiration dates through fiscal 2033 . The lease agreements often include escalating rent payments, renewal provisions and other provisions which require the Company to pay common area maintenance costs, property taxes and insurance. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. Operating lease right-of-use assets and long-term operating lease liabilities are included on the face of the consolidated balance sheet. Short-term operating lease liabilities are presented within accrued expenses and other current liabilities. Supplemental balance sheet information related to leases was as follows (in thousands): As of January 31, January 31, Assets Operating lease right-of-use assets $ 17,041 $ 12,702 Total leased assets $ 17,041 $ 12,702 Liabilities Short-term operating lease liabilities $ 3,742 $ 3,617 Long-term operating lease liabilities 13,676 10,426 Total lease liabilities $ 17,418 $ 14,043 Weighted-average remaining lease term 6.0 years 4.8 years Weighted-average discount rate 6.2 % 4.5 % The components of lease expense were as follows (in thousands): Fiscal Year Ended January 31, 2024 2023 2022 Operating lease costs (1) $ 4,581 $ 4,030 $ 3,861 Variable lease costs (2) 1,217 1,117 972 Total lease cost $ 5,798 $ 5,147 $ 4,833 (1) Recognized on a straight-line basis over the lease term. Includes rent for leases with initial terms of twelve months or less, which were not material. (2) Primarily included common area maintenance, utilities and property taxes and insurance, which were expensed as incurred. Additionally, in the third quarter of fiscal 2023, the Company recorded facilities consolidation charges of $ 1.4 million to general and administrative expense, in connection with the leased office facilities assumed in the OnSIP acquisition that the Company subsequently determined were not needed to support the future growth of its business. In July 2023, upon the lessor's sale of the property, the Company wrote off the remaining $ 1.0 million lease liability related to the lease as facilities consolidation gain in general and administrative expense in the condensed consolidated statements of operations. Supplemental cash flow information related to leases was as follows (in thousands): Fiscal Year Ended January 31, 2024 2023 2022 Cash payments for operating leases $ 3,895 $ 3,563 $ 3,945 Right-of-use assets recognized in exchange for new operating lease obligations $ 7,303 $ 2,599 $ 11,289 As of January 31, 2024, maturities of operating lease liabilities were as follows (in thousands): Fiscal Years Ending January 31, January 31, 2024 2025 $ 3,845 2026 3,810 2027 3,648 2028 2,656 2029 2,742 Thereafter 4,629 Total future minimum lease payments 21,330 Less: imputed interest ( 3,912 ) Present value of lease liabilities $ 17,418 Additionally, in August 2022, the Company entered into a new operating lease agreement to expand its warehouse facilities and customer contact center in Newark, California to scale with the Company’s business growth. The lease commenced in March 2023 and will expire in March 2033. Total rental payments are approximately $ 6.9 million from the commencement date through the expiration date. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jan. 31, 2024 | |
Equity [Abstract] | |
Stockholders' Equity | Note 8: Stockholders’ Equity Common Stock Reserved for Future Issuance The Company had shares of common stock reserved for issuance as follows (in thousands): As of January 31, January 31, Restricted stock units outstanding 2,075 1,466 Options to purchase common stock 1,161 1,217 Shares available for future issuance under stock plans 2,601 2,654 Shares reserved under ESPP 1,909 1,637 Total shares reserved for issuance 7,746 6,974 Stock Options. Under the Company's 2015 Equity Incentive Plan, or the 2015 Plan, options to purchase shares of common stock may be granted to employees, non-employee directors and consultants. These options vest from the date of grant to up to four years and expire ten years from the date of grant. Options may be exercised anytime during their term in accordance with the vesting/exercise schedule specified in the recipient’s stock option agreement and in accordance with the 2015 Plan provisions. Stock option activity for fiscal 2024 was as follows: Weighted-Average Aggregate Shares Exercise Price Intrinsic Value (in thousands) Per Share (in thousands) Balance as of January 31, 2023 1,217 $ 9.93 $ 5,949 Granted — $ — Exercised ( 54 ) $ 4.90 Canceled ( 2 ) $ 13.36 Balance as of January 31, 2024 1,161 $ 10.14 $ 2,522 Vested and exercisable as of January 31, 2024 1,068 $ 9.63 $ 2,520 The aggregate intrinsic value of vested options exercised during fiscal 2024 , 2023 and 2022 was $ 0.5 million, $ 1.7 million and $ 1.9 million, respectively. The weighted-average grant date fair value of options granted during fiscal 2023 and 2022, was $ 8.06 and $ 7.89 , respectively. No options were granted in fiscal 2024. Restricted Stock Units. Under the 2015 Plan, RSUs may be granted to employees, non-employee directors and consultants. These RSUs vest ratably over a period ranging from one to four years , and are subject to the participant’s continuing service to the Company over that period. Until vested, RSUs do not have the voting and dividend participation rights of common stock and the shares underlying the awards are not considered issued and outstanding. RSU activity for fiscal 2024 was as follows: Shares Weighted-Average Balance as of January 31, 2023 1,466 $ 15.81 Granted 1,507 $ 12.30 Vested ( 835 ) $ 14.65 Canceled ( 63 ) $ 15.24 Balance as of January 31, 2024 2,075 $ 13.74 Vested RSUs included shares of common stock that the Company withheld on behalf of certain employees to satisfy the minimum statutory tax withholding requirements, as defined by the Company. The Company withheld an aggregate amount of $ 1.7 million, $ 1.6 million and $ 2.1 million in fiscal 2024, 2023 and 2022, respectively, which were classified as financing cash outflows in the consolidated statements of cash flows. The Company canceled and returned these shares to the 2015 Plan, which became available under the plan terms for future issuance. Employee Stock Purchase Plan The ESPP allows eligible employees to purchase shares of common stock at a discount through payroll deductions of up to 15 % of their eligible compensation, subject to plan limitations. The ESPP provides for a 24 -month offering period comprised of four purchase periods of approximately six months . Employees are able to purchase shares at 85 % of the lower of the fair market value of the Company’s common stock as of the first date or the ending date of each six-month offering period. The offering periods are scheduled to start on the first trading day on or after March 15 and September 15 of each year. During each of the fiscal years 2024 , 2023 and 2022, employees purchased 0.2 million shares at a weighted-average purchase price of $ 10.60 , $ 10.44 and $ 10.22 per share, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jan. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 9: Stock-Based Compensation Total stock-based compensation recognized in the consolidated statements of operations was as follows (in thousands): Fiscal Year Ended January 31, 2024 2023 2022 Cost of revenue $ 1,000 $ 956 $ 979 Sales and marketing 2,226 2,019 1,856 Research and development 4,760 4,623 4,216 General and administrative 6,847 6,305 5,631 Total stock-based compensation expense $ 14,833 $ 13,903 $ 12,682 The income tax benefit related to stock-based compensation expense was zero for all periods presented due to a full valuation allowance on the Company's deferred tax assets (see Note 10: Income Taxes below). As of January 31, 2024, there was $ 27.2 million of unrecognized compensation expense related to unvested RSUs, stock options and stock purchase rights under the ESPP, which is expected to be recognized over a weighted-average vesting period of 2.2 years. The fair value of employee stock options and ESPP was estimated using the Black–Scholes model with the following assumptions: Fiscal Year Ended January 31, 2024 (1) 2023 2022 Stock Options: Expected volatility NA 49 % 51 % Expected term (in years) NA 6.1 6.1 Risk-free interest rate NA 1.6 % 0.9 % Dividend yield NA NA NA (1) No option was granted in fiscal 2024. Fiscal Year Ended January 31, 2024 2023 2022 ESPP: Expected volatility 32 %- 43 % 41 %- 55 % 41 %- 58 % Expected term (in years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Risk-free interest rate 3.9 %- 5.5 % 0.9 %- 4.0 % 0.1 %- 0.2 % Dividend yield NA NA NA The expected term of options granted to employees was based on the simplified method because the Company does not have sufficient historical exercise data for the fiscal years presented, and the expected term of the ESPP is based on the contractual term. For fiscal years presented, expected volatility was derived from the average historical volatility of the Company’s own common stock. The risk-free interest rate was based on the yields of U.S. Treasury securities with maturities similar to the expected term. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10: Income Taxes The domestic and foreign components of loss before income taxes were as follows (in thousands): Fiscal Year Ended January 31, 2024 2023 2022 United States $ ( 491 ) $ ( 2,557 ) $ 1,340 Foreign ( 2,322 ) ( 2,868 ) ( 3,091 ) Loss before income taxes $ ( 2,813 ) $ ( 5,425 ) $ ( 1,751 ) Income tax benefit consisted of the following: Fiscal Year Ended January 31, 2024 2023 2022 Current: Federal $ — $ — $ — State 1,153 363 — Foreign — — — Total current 1,153 363 — Deferred: Federal ( 2,661 ) ( 1,783 ) — State ( 470 ) ( 350 ) — Foreign — — — Total deferred ( 3,131 ) ( 2,133 ) — Income tax benefit $ ( 1,978 ) $ ( 1,770 ) $ — The income tax benefit of $ 2.0 million for fiscal 2024 was primarily attributable to the release of a $ 3.1 million valuation allowance on certain preexisting deferred tax assets realized as a result of deferred tax liabilities assumed in the Company's acquisition of 2600Hz. Income tax benefit differed from the amount computed by applying the U.S. federal income tax rate to pre-tax loss as a result of the following (dollars in thousands): Fiscal Year Ended January 31, 2024 Rate 2023 Rate 2022 Rate Federal tax at statutory rate $ ( 603 ) 21 % $ ( 1,139 ) 21 % $ ( 368 ) 21 % State taxes, net of federal benefit ( 128 ) 4 % ( 40 ) 1 % 52 ( 3 )% Foreign income and withholding taxes ( 139 ) 5 % ( 172 ) 3 % ( 185 ) 11 % Permanent tax adjustment 294 ( 10 )% 543 ( 10 )% 58 ( 3 )% Section 162(m) 802 ( 28 )% 843 ( 16 )% 1,050 ( 60 )% Stock-based compensation 812 ( 28 )% 530 ( 10 )% ( 1,545 ) 88 % Change in valuation allowance ( 1,015 ) 35 % ( 1,566 ) 29 % 2,959 ( 169 )% Research and development credit ( 2,095 ) 73 % ( 1,288 ) 24 % ( 1,980 ) 113 % Provision to return adjustments 4 — 533 ( 10 )% — — Other 90 ( 3 )% ( 14 ) 1 % ( 41 ) 2 % Income tax benefit at effective tax rate $ ( 1,978 ) 69 % $ ( 1,770 ) 33 % $ — 0 % The tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets and liabilities are as follows (in thousands): As of January 31, 2024 2023 Deferred tax assets: Net operating loss carryforwards $ 18,486 $ 28,771 Tax credit carryover 14,928 12,205 Operating lease liabilities 4,405 3,547 Stock-based compensation 1,095 923 Capitalized research and development 17,131 6,061 State Taxes 232 — Deferred revenue 4 8 Other — 22 Gross deferred tax assets 56,281 51,537 Valuation allowance ( 42,530 ) ( 43,545 ) Net deferred tax assets $ 13,751 $ 7,992 Deferred tax liabilities: Operating lease right-of-use assets $ ( 4,309 ) $ ( 3,202 ) Deferred sales commissions and other ( 2,119 ) ( 2,396 ) Acquired intangible assets ( 6,100 ) ( 1,543 ) Fixed assets depreciation ( 1,223 ) ( 851 ) Gross deferred tax liabilities $ ( 13,751 ) $ ( 7,992 ) Net deferred taxes $ — $ — Under the Tax Cuts and Jobs Act of 2017, research and development costs are no longer fully deductible and are required to be capitalized and amortized for U.S. tax purposes effective January 1, 2022. As of January 31, 2024, the mandatory capitalization requirement resulted in an increase to the Company’s gross deferred tax assets above, which was fully offset by the valuation allowance, and increases the Company's cash tax liabilities. Management believes that, based upon the available evidence, both positive and negative, it is more likely than not that the deferred tax assets will not be utilized, such that a full valuation allowance has been recorded. The net change in the total valuation allowance was a decrease of $ 1.0 million and $ 1.6 million for fiscal 2024 and 2023, respectively. As of January 31, 2024 , the Company had federal net operating loss carryforwards of approximately $ 47.7 million available to offset future income, of which approximate ly $ 5.8 million will expire in various amounts beginning in fiscal 2038 and the remainder may be carried forward indefinitely. A s of January 31, 2024 , the Company had state net operating loss carryforwards of $ 70.7 million which will expire in various amounts beginning in fiscal 2025 . In addition, the Company had research and development tax credits for federal and state tax purposes of approximately $ 14.8 million and $ 12.8 million, respectively, available to offset future taxes. If not utilized, the available federal credits will begin to expire in fiscal 2030 and the state credits can be carried forward indefinitely. The Company’s ability to utilize the domestic net operating losses (NOLs) and tax credit carryforwards may be limited due to ownership change limitations that may have occurred or that could occur in the future, as required by Internal Revenue Code Section 382, as well as similar state provisions. An “ownership change,” as defined by the code, results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percentage points of the outstanding stock of a company by certain stockholders or public groups. Any limitation may result in expiration of all or a portion of the NOL or tax credit carryforwards before utilization. Uncertain Tax Positions The Company has unrecognized tax benefits of approximately $ 11.0 million as of January 31, 2024. Deferred tax assets associated with these unrecognized tax benefits are fully offset by a valuation allowance. If recognized, these benefits would not affect the effective tax rate before consideration of the valuation allowance. The following table summarizes the activity related to unrecognized tax benefits (in thousands): Fiscal Year Ended January 31, 2024 2023 2022 Unrecognized tax benefits, beginning of fiscal year $ 9,060 $ 8,090 $ 6,642 Increase (decrease) related to prior year tax positions 670 ( 331 ) — Increase related to current year tax positions 1,313 1,301 1,448 Unrecognized tax benefits, end of fiscal year $ 11,043 $ 9,060 $ 8,090 The Company had no interest or penalty accruals associated with uncertain tax benefits in its balance sheets and statements of operations. The Company does not have any tax positions for which it is reasonably possible the total amount of gross unrecognized benefits will significantly increase or decrease within 12 months of the year ended January 31, 2024 . Because the Company has net operating loss and credit carryforwards, there are open statutes of limitations in which federal, state and foreign taxing authorities may examine the Company’s tax returns for all tax years from the fiscal year ended January 31, 2010 through the current period. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11: Commitments and Contingencies Purchase Commitments As of January 31, 2024 and 2023, non-cancelable inventory purchase commitments to contract manufacturers and other parties were approximately $ 1.1 million and $ 7.8 million, respectively. Additionally, the Company has a non-cancelable service agreement with a telecommunications provider that contains total annual minimum purchase commitments of $ 1.5 million between August 2022 and February 2024 and $ 2.5 million between March 2024 and February 2025. Legal Proceedings In addition to the litigation matters described below, from time to time, the Company may be involved in a variety of other claims, lawsuits, investigations, and proceedings relating to contractual disputes, intellectual property rights, employment matters, regulatory compliance matters, and other litigation matters relating to various claims that arise in the normal course of business. Defending such proceedings is costly and can impose a significant burden on management and employees, the Company may receive unfavorable preliminary or interim rulings in the course of litigation, and there can be no assurances that favorable final outcomes will be obtained. The Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. The Company assesses its potential liability by analyzing specific litigation and regulatory matters using reasonably available information. The Company develops its views on estimated losses in consultation with inside and outside counsel, which involves a subjective analysis of potential results and outcomes, assuming various combinations of appropriate litigation and settlement strategies. Legal fees are expensed in the period in which they are incurred. As of January 31, 2024 and 2023, the Company did no t have any accrued liabilities recorded for loss contingencies in its consolidated financial statements. Canadian Litigation On February 3, 2021, plaintiff Fiona Chiu filed a class action complaint against the Company and Ooma Canada Inc. in the Federal Court of Canada, alleging violations of Canada’s Trademarks Act and Competition Act. The complaint seeks monetary and other damages and/or injunctive relief enjoining the Company from describing and marketing its Basic Home Phone using the word “free” or otherwise representing that it is free. On November 9, 2021, the Federal Court of Canada removed Ms. Chiu and substituted John Zanin as the new plaintiff in the proceeding. In connection with the substitution of Mr. Zanin as the new plaintiff, the Federal Court of Canada deemed the proceeding as having commenced on November 8, 2021 instead of February 3, 2021. In January 2022, the Federal Court of Canada heard arguments from counsel representing each of the Company and Mr. Zanin regarding jurisdiction and class action certification issues, and the parties are awaiting the Court's ruling. The Company intends to continue to defend itself vigorously against this complaint. Based on the Company’s current knowledge, the Company has determined that the amount of any reasonably possible loss resulting from the Canadian Litigation is not estimable. Indemnification The Company enters into standard indemnification arrangements in the ordinary course of business. Pursuant to these arrangements, the Company indemnifies, holds harmless and agrees to reimburse the indemnified parties for certain losses suffered or incurred by the indemnified party. In some cases, the term of these indemnification agreements is perpetual. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable because it involves claims that may be made against the Company in the future but have not yet been made. The Company has entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of the individual. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has director and officer insurance coverage that reduces the Company’s exposure and enables the Company to recover a portion of any future amounts paid. To date the Company has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements. No liability associated with such indemnifications has been recorded to date. |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Jan. 31, 2024 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Note 12: Financing Arrangements Revolving Credit Facility On October 20, 2023 , the Company, as borrower, entered into a three-year credit and security agreement (“Credit Agreement”) with Citizens Bank N.A., as Administrative Agent (“Agent”) and lender. The Credit Agreement provides for a secured revolving credit facility (“Credit Facility”) under which the Company may borrow up to an aggregate amount of $ 30.0 million, which includes a $ 10.0 million sub-facility for letters of credit. The Company and its lenders may increase the total commitments under the Credit Facility to up to an aggregate amount of $ 50.0 million, subject to certain conditions. Funds borrowed under the Credit Agreement may be used for acquisition, working capital and other general corporate purposes. Loans under the Credit Agreement will bear interest, at the Company’s option, at either a rate equal to the Alternate Base Rate plus the Applicable Margin (as defined in the Credit Agreement) or Term Secure Overnight Financing Rate ("SOFR") plus the Applicable Margin (as defined in the Credit Agreement). The Alternate Base Rate is the highest of (i) the Agent’s prime rate, (ii) the federal funds effective rate plus 0.50 % per annum, and (iii) the Daily SOFR rate plus 1.00 % per annum. The SOFR Rate is a rate equal to the secured overnight financing rate as published by the SOFR Administrator and displayed on CME Group Benchmark Administration Limited’s Market Data Platform. The Applicable Margin for Alternative Base Rate Loans is 1.25 % and the Applicable Margin for the SOFR Loans is 2.00 %. Upon the occurrence of any event of default, the interest rate on the borrowings increases by 5.00 %. The Company is required to pay a commitment fee on the unused portion of the Credit Facility of 0.25 % per annum. The Credit Agreement contains customary representations, warranties, affirmative and negative covenants, events of default and indemnification provisions in favor of the Agent, lenders and their affiliates. Among other covenants, the Credit Agreement includes restrictive financial covenants that require the Company to meet minimum recurring revenue levels and maintain specified amounts of available liquidity on a quarterly basis. As of January 31, 2024, the Company had $ 16.0 million in outstanding borrowings, which are recorded as debt, net of current portion in the condensed consolidated balance sheets. The funds were used for the acquisition of 2600Hz at the Term SOFR interest rate of 7.4 % . The Company is in compliance with the covenants contained in the Credit Agreement as of January 31, 2024 . Accordingly, $ 14.0 million of borrowing capacity was available for the purposes permitted by the Credit Agreement. As of January 31, 2024 , the Company incurred $ 0.5 million of debt issuance costs in connection with the Credit Agreement, which was capitalized in the condensed consolidated balance sheets and is amortized on straight-line basis over the term of the Credit Agreement. On January 8, 2021 , the Company, as borrower, entered into a credit and security agreement (“Key Bank Credit Agreement”) with KeyBank National Association ("Key Bank") as Administrative Agent (“Agent”) and lender, and KeyBanc Capital Markets Inc. as sole lead arranger and sole book runner. Prior to its termination as described below, the Key Bank Credit Agreement provided for a secured revolving credit facility under which the Company could have borrowed up to an aggregate amount of $ 25.0 million, which included a $ 10.0 million sub-facility for letters of credit. The Company and its lenders were able to increase the total commitments under the credit facility to up to an aggregate amount of $ 45.0 million, subject to certain conditions. Permitted uses of funds borrowed under the Key Bank Credit Agreement included working capital and other general corporate purposes. The Key Bank Credit Agreement contained customary representations, warranties, affirmative and negative covenants, events of default and indemnification provisions in favor of the Agent, lenders and their affiliates. Among other covenants, the Key Bank Credit Agreement included restrictive financial covenants that required the Company to meet minimum recurring revenue levels and maintain specified amounts of available liquidity on a quarterly basis. The Company terminated the Key Bank Credit Agreement on June 7, 2023. |
Business Acquisition
Business Acquisition | 12 Months Ended |
Jan. 31, 2024 | |
Business Acquisitions And Divestitures Abstract | |
Business Acquisition | Note 13: Business Acquisition On October 20, 2023, the Company acquired all outstanding stock of 2600hz, Inc. ("2600Hz"), a provider of business communications applications targeted at resellers and carriers. The Company acquired 2600Hz for total cash consideration of approximately $ 32.2 million (net of $ 1.8 million in cash acquired), subject to certain working capital adjustments. This payment is not subject to any contingency requirements. The Company has included the financial results of 2600Hz in the condensed consolidated financial statements from the date of acquisition, which for the twelve months ended January 31, 2024 were not material. The following table summarizes the preliminary purchase price allocation, as adjusted (in thousands): Fair Value Cash and cash equivalents $ 1,829 Accounts receivable 440 Other current and non-current assets 588 Property plant and equipment, net 195 Intangible assets 21,200 Goodwill 14,414 Accounts payable and other liabilities ( 1,487 ) Deferred tax liability ( 3,131 ) Total purchase consideration $ 34,048 Intangible assets acquired primarily consisted of developed technology of $ 18.4 million, which represented the estimated fair values of the acquired 2600Hz developed platform technology and have an estimated useful life of seven years as of the date of acquisition. The goodwill recognized was primarily attributable to the assembled workforce and is not expected to be deductible for income tax purposes. Revenues of 2600Hz included in the Company’s consolidated statements of operations from the acquisition date of October 20, 2023, to January 31, 2024 was approximately $ 2.3 million. The Company believes it is not practicable to separately identify earnings of 2600Hz on a stand-alone basis due to the integrated nature of the Company's operations. On a pro forma basis, had the 2600Hz acquisition been included in the Company's consolidated results of operations beginning February 1, 2022, the Company’s total revenue would have approxima ted $ 243.7 million and $ 226.5 million for fiscal 2024 and 2023. These pro forma revenue amounts do not necessarily represent what would have occurred if the business combination had taken place on February 1, 2022, nor do these amounts represent the results that may occur in the future. Pro forma net income (losses) have not been presented because the impact was not material to the consolidated statements of operations. In connection with the acquisition, the Company agreed to issue approximately 423,000 restricted stock units that are subject to on-going service conditions and vest over an 18-month period. The estimated fair value of these awards of $ 4.3 million will be recorded as stock compensation expense over the service period. Acquisition-related costs charged to general and administrative expense during fiscal 2024 were approximately $ 0.9 million. During the second quarter of fiscal 2023, the Company acquired Junction Networks, Inc. which does business as OnSIP for $ 9.5 million. During the nine months ended October 31, 2023 , the Company received $ 0.3 million from the seller for certain working capital adjustments, which is recorded in investing activities in the Company's condensed consolidated statement of cash flows. Revenues of OnSIP included in the Company’s consolidated statements of operations from the acquisition date of July 22, 2022 to January 31, 2023 was approximately $ 6.5 million. The Company believes it is not practicable to separately identify earnings of OnSIP on a stand-alone basis due to the integrated nature of the Company's operations. On a pro forma basis, had the OnSIP acquisition been included in the Company's consolidated results of operations beginning February 1, 2021, the Company’s total revenue would have approximated $ 222.2 million for fiscal 2023 and approximated $ 205.1 million for fiscal 2022. These pro forma revenue amounts do not necessarily represent what would have occurred if the business combination had taken place on February 1, 2021, nor do these amounts represent the results that may occur in the future. Pro forma net losses have not been presented because the impact was not material to the consolidated statements of operations . |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Jan. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Note 14: Net Loss Per Share Basic and diluted net loss per share of common stock is calculated by dividing the net loss allocable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net loss per share of common stock is the same as basic net loss per share because the effects of potentially dilutive securities are antidilutive because the Company reported net losses for all periods presented. The following table sets forth the computation of basic and diluted net loss per share (in thousands, except share and per share data): Fiscal Year Ended January 31, 2024 2023 2022 Numerator Net loss $ ( 835 ) $ ( 3,655 ) $ ( 1,751 ) Denominator Weighted-average common shares 25,573,288 24,506,525 23,473,849 Basic and diluted net loss per share $ ( 0.03 ) $ ( 0.15 ) $ ( 0.07 ) Potentially dilutive securities of approximately 0.6 million, 0.7 million and 1.4 million in fiscal 2024 , 2023 and 2022, respectively, were excluded from the computation of diluted net loss per share as their inclusion would have been anti-dilutive. These shares included the Company’s unvested RSUs, outstanding stock options and shares to be purchased under the ESPP. |
Retirement Plan
Retirement Plan | 12 Months Ended |
Jan. 31, 2024 | |
Retirement Benefits [Abstract] | |
Retirement Plan | Note 15: Retirement Plan The Company offers a qualified 401(k) defined contribution plan to eligible full-time employees that provides for discretionary employer matching and profit-sharing contributions. The Company matches the lower of 50 % of employee contributions or 50 % of the first 6 % of each employee’s eligible compensation that is contributed to the 401(k) plan. Contributions made by the Company vest 100 % upon contribution and are expensed as incurred as compensation costs. The Company’s matching contributions to the plan were $ 1.1 million, $ 0.9 million and $ 0.7 million for fiscal 2024, 2023 and 2022, respectively. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2024 | |
Accounting Policies [Abstract] | |
Principles of Presentation and Consolidation | Principles of Presentation and Consolidation. The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. In the opinion of the Company’s management, the consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. |
Fiscal Year | Fiscal Year. The Company’s fiscal year ends on January 31. References to fiscal 2024, fiscal 2023, and fiscal 2022 refer to the fiscal years ended January 31, 2024, January 31, 2023, and January 31, 2022, respectively. |
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s consolidated financial statements and accompanying notes. Significant estimates include, but are not limited to, those related to revenue recognition, inventory valuation, deferred sales commissions, valuation of goodwill and intangible assets, operating lease assets and liabilities, regulatory fees and indirect tax accruals, loss contingencies, stock-based compensation and income taxes (including valuation allowances). The Company bases its estimates and assumptions on historical experience, where applicable, and other factors that it believes to be reasonable under the circumstances. These estimates are based on information available as of the date of the consolidated financial statements, and assumptions are inherently subjective in nature. Therefore, actual results could differ from management’s estimates. |
Comprehensive Loss | Comprehensive Loss. For all periods presented, comprehensive loss approximated net loss in the consolidated statements of operations and differences were not material. Therefore, the Consolidated Statements of Comprehensive Loss have been omitted. |
Segment Reporting | Segment Reporting. The chief operating decision maker for the Company is the chief executive officer, who reviews the Company’s financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Accordingly, management has determined that the Company operates in a single reportable segment. Revenue was principally derived from customers located in the United States for all periods presented, with a small portion attributable to customers located in Canada and other countries. Long-lived assets located outside of the United States were not significant. |
Foreign Currency | Foreign currency. The U.S. dollar is the functional currency of the Company's foreign subsidiaries. Remeasurement and transaction gains and losses are included in interest and other income, net and were not material for any periods presented. |
Revenue Recognition | Revenue Recognition The Company derives its revenue from two sources: (1) subscription and services revenue, which is derived primarily from the sale of subscription plans for communications services and other connected services; and (2) product and other revenue. Subscriptions and services are sold directly to end-customers. Products are sold to end-customers through several channels, including but not limited to distributors, retailers and resellers (collectively “channel partners”), and Ooma sales representatives. The Company determines revenue recognition through the following steps: • identification of the contract(s) with a customer; • identification of the performance obligations in the contract; • determination of the transaction price; • allocation of the transaction price to the performance obligations in the contract; and recognition of revenue when, or as, the Company satisfies a performance obligation |
Subscription and Service Revenue | Subscription and Services Revenue. Most of the Company’s revenue is derived from recurring subscription fees related to service plans such as Ooma Business, Ooma Residential and other communications services. Service plans are generally sold as monthly subscriptions; however, certain plans are also offered as annual or multi-year subscriptions. Subscription revenue is generally recognized ratably over the contractual service term. A small portion of revenue is recognized on a point-in-time basis from services such as prepaid international calls, directory assistance, and advertisements displayed through the Talkatone mobile application. |
Product and Other Revenue | Product and Other Revenue. Product and other revenue is generated primarily from the sale of on-premise devices and end-point devices, including Ooma AirDial, and to a lesser extent from porting fees that enable customers to transfer their existing phone numbers. The Company recognizes product and other revenue from sales to direct end-customers and channel partners at the point-in-time that control is transferred. The Company’s distribution agreements with channel partners typically contain clauses for price protection and right of return. Credits and/or rebates issued for expected product returns and customer sales incentives are deemed to be variable consideration, which the Company estimates and records as a reduction to revenue at the point of sale. Product returns and sales incentives are estimated based on the Company’s historical experience, current trends and expectations regarding future experience. As of January 31, 2024 and 2023, total reserves for product returns and sales incentives were approximately $ 0.8 million and $ 0.7 million, respectively. Revenue is recorded net of any sales and telecommunications taxes collected from customers to be remitted to government authorities. Amounts billed to customers related to shipping and handling are classified as product and other revenue. Shipping and handling costs are expensed as incurred and classified as cost of product and other revenue. |
Multiple performance obligations | Multiple performance obligations. The Company’s contracts with customers typically contain multiple performance obligations that consist of communications services and related product(s). For these contracts, individual performance obligations are accounted for separately if they are distinct. The contract transaction price is then allocated to the separate performance obligations on a relative stand-alone selling price basis. The Company determines the stand-alone selling price (“SSP”) for its communications services based on observable historical stand-alone sales to customers, for which a substantial majority of selling prices must fall within a reasonably narrow pricing range. The Company determines the SSP for its on-premise devices and end-point devices based upon management’s best estimates and judgments, considering company-specific factors such as pricing strategies, discounting practices, and estimated product and other costs. |
Cash Equivalents and Short-term Investments | Cash Equivalents and Short-term Investments. All highly liquid investments with an original maturity of three months or less at the date of purchase are classified as cash equivalents. Short-term investments are classified as available-for-sale and carried at fair value, with unrealized gains and losses, net of tax, recorded as a separate component of stockholders’ equity within accumulated other comprehensive loss. The cost of securities sold is based upon the specific identification method. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments. The Company records its financial assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the reporting date. The Company estimates and categorizes the fair value of its financial assets by applying the following hierarchy: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2: Observable prices based on inputs not quoted in active markets but are corroborated by market data. Level 3: Unobservable inputs that are supported by little or no market activity The carrying value of the Company’s financial instruments, including cash equivalents, accounts receivable, inventory, accounts payable and other current assets and current liabilities approximates fair value due to their short maturities. The carrying value of debt approximates its fair value. |
Concentrations | Concentrations. Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, short-term investments, accounts receivable and convertible note receivable (Note 5). The Company’s cash, cash equivalents and short-term investments are held by financial institutions that management believes are of high-credit quality although the balances, at times, may exceed federally insured limits. The Company performs credit evaluations of its customers’ financial condition and generally does not require collateral for sales made on credit. Customers who represented 10% or more of net accounts receivable were as follows: As of January 31, January 31, Customer A 33 % 18 % |
Accounts Receivable | Accounts Receivable. Accounts receivable are recorded net of an allowance for doubtful accounts for expected credit losses. Allowances are recorded based upon assessment of several factors, including historical experience, aging of receivable balances and economic conditions. As of January 31, 2024 and 2023, the allowance for doubtful accounts was $ 0.3 million. Bad debt expense recorded in the consolidated statement of operations was not material for the periods presented. |
Inventories | Inventories. Inventories, which consist of raw materials and finished goods, include the cost to purchase manufactured products, allocated labor and overhead. Inventories are stated at the lower of actual cost and net realizable value on a first-in, first-out basis. The Company writes down the carrying value of inventory to net realizable value for estimated excess and obsolete inventory based upon assumptions about forecast demand and market conditions. Inventory carrying value adjustments are recognized as a component of cost of product and other revenue in the consolidated statement of operations. |
Customer Acquisition Costs | Customer Acquisition Costs. Sales commissions and other costs paid to internal sales personnel, third-party sales entities and value-added resellers are considered incremental and recoverable costs of obtaining customer contracts. The resellers are selling agents for the Company and earn sales commissions that are directly tied to the value of the contracts that the Company enters with the end-user customers. These costs are capitalized and amortized on a systematic basis over the expected period of benefit of five years , or customer contractual term for multi-year contracts. The Company has determined the period of benefit taking into consideration both qualitative and quantitative factors, such as expected subscription term and expected renewal periods of its customer contracts, product life cycles and customer attrition. Amortization expense is recorded in sales and marketing expenses in the consolidated statement of operations. The Company pays sales commissions on initial contracts, contracts for increased purchases with existing customers (expansion contracts) and certain contract renewals. The Company periodically evaluates whether there have been any changes in its business, the market conditions in which it operates or other events which would indicate that its amortization period should be changed or if there are potential indicators of impairment. To date, there have been no material impairment losses related to the costs capitalized. |
Property and Equipment, net | Property and Equipment, net. Property and equipment, net is stated at cost, less accumulated depreciation and amortization. Depreciation and amortization is computed on a straight-line basis over the estimated useful lives of those assets, generally two to five years . Capitalized costs related to development of the Company's customer-facing websites are amortized on a straight-line basis over an estimated useful life of three to five years . Leasehold improvements are amortized over the shorter of the lease term or estimated useful lives of the respective assets. Repairs and maintenance costs that do not extend the life or improve the asset are expensed as incurred. |
Operating Leases | Operating Leases. Right-of-use lease assets and lease liabilities are recognized at the lease commencement date based upon the present value of the remaining lease payments over the lease term. The Company uses its incremental borrowing rate in determining the present value of lease payments, as the discount rates implicit in the Company’s leases cannot be readily determined. Lease agreements that contain both lease and non-lease components are combined and accounted for as a single component. |
Goodwill | Business Combinations. The Company accounts for its business combinations using the acquisition method of accounting. The purchase consideration is allocated to the tangible assets acquired, liabilities assumed and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair value of these assets acquired and liabilities assumed is recorded as goodwill. Management is required to make significant estimates and assumptions in determining fair values, especially with respect to acquired intangible assets, which include but are not limited to: the selection of valuation methodologies, expected future revenue and cash flows, expected customer attrition rates from acquired customers, future changes in technology, and discount rates. These estimates are inherently uncertain and, therefore, actual results may differ from the estimates made. As a result, during the measurement period of up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill as information on the facts and circumstances that existed as of the acquisition date becomes available. Upon the conclusion of the measurement period, any subsequent adjustments are recorded in the consolidated statements of operations . Acquisition-related expenses are recognized separately from business combinations and are expensed as incurred. |
Intangible Assets | Intangible Assets. Acquired intangible assets, which primarily consist of customer relationships, are amortized over their estimated useful lives. Ea ch period, the Company evaluates the estimated remaining useful life of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. |
Impairment of Long-Lived Assets | Impairment Assessment. Long-lived assets, such as property and equipment, capitalized website development costs intangible assets and operating lease right-of-use assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. The Company evaluates goodwill for impairment annually during its fourth quarter of each fiscal year, or more frequently if and when circumstances indicate that goodwill may not be recoverable. The Company has a single reporting unit and consequently evaluates goodwill for impairment based on an evaluation of the fair value of the Company as a whole. See Note 7: Leases for disclosure of impairment charges recorded in fiscal 2024. The Company did no t record any material impairment charges for fiscal 2023 or fiscal 2022. |
Advertising | Advertising. Advertising costs are expensed as incurred, except for production costs associated with television and radio advertising, which are expensed on the first date of airing. Advertising costs are included in sales and marketing expense and were $ 16.5 million, $ 16.4 million and $ 14.5 million in fiscal 2024, 2023 and 2022, respectively. |
Stock-Based Compensation | Stock-Based Compensation. The majority of the Company's stock-based compensation is derived from RSUs granted to employees and non-employee directors. Stock-based compensation is generally measured based on the closing market price of the Company’s common stock on the date of grant and recognized on a straight-line basis over the vesting period. Forfeitures are recorded in the period in which they occur. |
Income Taxes | Income Taxes. Income taxes are recorded using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income (loss) in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. A tax position is recognized when it is more-likely-than-not that the tax position will be sustained upon examination, including resolution of any related appeals or litigation processes. A tax position that meets the more likely than not recognition threshold is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority. Interest and penalties associated with unrecognized tax benefits are classified as income tax expense. The Company had no interest or penalty accruals associated with uncertain tax benefits in its consolidated balance sheets and statements of operations for any periods presented. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Accounting Policies [Abstract] | |
Concentration of Net Accounts Receivable Balance | Customers who represented 10% or more of net accounts receivable were as follows: As of January 31, January 31, Customer A 33 % 18 % |
Revenue and Deferred Revenue (T
Revenue and Deferred Revenue (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue Disaggregated by Revenue Source | Revenue disaggregated by revenue source consisted of the following (in thousands): Fiscal Year Ended January 31, 2024 2023 2022 Subscription and services revenue $ 221,624 $ 199,105 $ 175,942 Product and other revenue 15,113 17,060 16,348 Total revenue $ 236,737 $ 216,165 $ 192,290 |
Components of Deferred Revenue | Deferred revenue primarily consists of billings or payments received in advance of meeting revenue recognition criteria. Deferred services revenue is recognized on a ratable basis over the term of the contract as the services are provided. As of January 31, January 31, Subscription and services $ 17,034 $ 17,239 Product and other 22 8 Total deferred revenue $ 17,056 17,247 Less: current deferred revenue 17,041 17,216 Non-current deferred revenue included in other long-term liabilities $ 15 $ 31 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets at Fair Value | Financial assets measured at fair value on a recurring basis by level were as follows (in thousands): Balance as of January 31, 2023 Level 1 Level 2 Total Cash and cash equivalents: Money market funds $ 11,380 $ — $ 11,380 Total cash equivalents $ 11,380 $ — 11,380 Cash 12,757 Total cash and cash equivalents $ 24,137 Short-term investments: U.S. treasury securities $ 1,232 $ — $ 1,232 Commercial paper — 1,491 1,491 Total short-term investments $ 1,232 $ 1,491 $ 2,723 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Balance Sheet Components [Abstract] | |
Components of Inventories | The following sections and tables provide details of selected balance sheet items (in thousands): Inventories As of January 31, January 31, Finished goods $ 12,024 $ 13,715 Raw materials 7,758 12,531 Total inventory $ 19,782 $ 26,246 |
Components of Property and Equipment, Net | Property and equipment, net As of Estimated life January 31, January 31, Computer hardware and software 3 - 4 $ 6,995 $ 6,847 Network and engineering equipment 3 - 5 7,504 6,283 Website development costs 3 - 5 9,046 6,251 Customer premise equipment 3 - 5 7,466 5,954 Office furniture and fixtures 5 204 497 Leasehold improvements 1 - 5 637 124 Total property and equipment 31,852 25,956 Less: accumulated depreciation and amortization ( 21,955 ) ( 17,960 ) Property and equipment, net $ 9,897 $ 7,996 |
Components of Other Current and Non-current Assets | Other current and non-current assets As of January 31, January 31, Deferred sales commissions, current $ 8,579 $ 7,826 Prepaid expenses and other 4,177 2,777 Convertible note receivable (see "GTC" below) 2,257 1,899 Other current assets 1,484 1,866 Total other current assets $ 16,497 $ 14,368 Deferred sales commissions, non-current $ 15,257 $ 14,467 Other assets 2,358 2,117 Total other non-current assets $ 17,615 $ 16,584 |
Components of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities As of January 31, January 31, Payroll and related expenses $ 12,301 $ 13,621 Regulatory fees and taxes 4,598 3,609 Short -term operating lease liabilities 3,742 3,617 Customer-related liabilities 1,118 1,045 Other 4,827 4,834 Total accrued expenses and other current liabilities $ 26,586 $ 26,726 |
Goodwill and Acquired Intangi_2
Goodwill and Acquired Intangible Assets (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Summary of Goodwill | The goodwill balance was as follows (in thousands): Total Balance at January 31, 2023 $ 8,655 Additions due to 2600Hz acquisition 14,414 Balance at January 31, 2024 $ 23,069 |
Schedule of Carrying Value of Intangible Assets Other than Goodwill | The gross value, accumulated amortization and carrying values of intangible assets were as follows (in thousands): As of January 31, 2024 Estimated life Gross Accumulated Amortization Carrying Developed technology 2 - 7 $ 20,618 $ ( 2,865 ) $ 17,753 Customer relationships 5 - 7 16,545 ( 7,336 ) 9,209 Trade names 2 - 5 1,685 ( 695 ) 990 Total intangible assets $ 38,848 $ ( 10,896 ) $ 27,952 As of January 31, 2023 Estimated life Gross Accumulated Amortization Carrying Customer relationships 5 - 7 $ 14,745 $ ( 4,775 ) $ 9,970 Developed technology 2 - 5 2,219 ( 1,891 ) 328 Trade names 2 - 5 684 ( 519 ) 165 Total intangible assets $ 17,648 $ ( 7,185 ) $ 10,463 |
Schedule of Estimated Future Amortization Expense | At January 31, 2024, the estimated future amortization expense for intangible assets was as follows (in thousands): Fiscal Years Ending January 31, Total 2025 $ 5,768 2026 5,624 2027 5,068 2028 3,950 2029 3,030 Thereafter 4,512 Total $ 27,952 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Leases [Abstract] | |
Summary of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows (in thousands): As of January 31, January 31, Assets Operating lease right-of-use assets $ 17,041 $ 12,702 Total leased assets $ 17,041 $ 12,702 Liabilities Short-term operating lease liabilities $ 3,742 $ 3,617 Long-term operating lease liabilities 13,676 10,426 Total lease liabilities $ 17,418 $ 14,043 Weighted-average remaining lease term 6.0 years 4.8 years Weighted-average discount rate 6.2 % 4.5 % |
Components of Lease Expense | The components of lease expense were as follows (in thousands): Fiscal Year Ended January 31, 2024 2023 2022 Operating lease costs (1) $ 4,581 $ 4,030 $ 3,861 Variable lease costs (2) 1,217 1,117 972 Total lease cost $ 5,798 $ 5,147 $ 4,833 (1) Recognized on a straight-line basis over the lease term. Includes rent for leases with initial terms of twelve months or less, which were not material. (2) Primarily included common area maintenance, utilities and property taxes and insurance, which were expensed as incurred. |
Summary of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows (in thousands): Fiscal Year Ended January 31, 2024 2023 2022 Cash payments for operating leases $ 3,895 $ 3,563 $ 3,945 Right-of-use assets recognized in exchange for new operating lease obligations $ 7,303 $ 2,599 $ 11,289 |
Summary of Maturities of Operating Lease Liabilities | As of January 31, 2024, maturities of operating lease liabilities were as follows (in thousands): Fiscal Years Ending January 31, January 31, 2024 2025 $ 3,845 2026 3,810 2027 3,648 2028 2,656 2029 2,742 Thereafter 4,629 Total future minimum lease payments 21,330 Less: imputed interest ( 3,912 ) Present value of lease liabilities $ 17,418 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Equity [Abstract] | |
Schedule of Common Stock Reserved for Issuance | The Company had shares of common stock reserved for issuance as follows (in thousands): As of January 31, January 31, Restricted stock units outstanding 2,075 1,466 Options to purchase common stock 1,161 1,217 Shares available for future issuance under stock plans 2,601 2,654 Shares reserved under ESPP 1,909 1,637 Total shares reserved for issuance 7,746 6,974 |
Summarizes of Stock Option Activities | Stock option activity for fiscal 2024 was as follows: Weighted-Average Aggregate Shares Exercise Price Intrinsic Value (in thousands) Per Share (in thousands) Balance as of January 31, 2023 1,217 $ 9.93 $ 5,949 Granted — $ — Exercised ( 54 ) $ 4.90 Canceled ( 2 ) $ 13.36 Balance as of January 31, 2024 1,161 $ 10.14 $ 2,522 Vested and exercisable as of January 31, 2024 1,068 $ 9.63 $ 2,520 |
Summarizes of Restricted Stock Units Activities | RSU activity for fiscal 2024 was as follows: Shares Weighted-Average Balance as of January 31, 2023 1,466 $ 15.81 Granted 1,507 $ 12.30 Vested ( 835 ) $ 14.65 Canceled ( 63 ) $ 15.24 Balance as of January 31, 2024 2,075 $ 13.74 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Total Stock-Based Compensation Recognized for Stock-Based Awards in Consolidated Statements of Operations | Total stock-based compensation recognized in the consolidated statements of operations was as follows (in thousands): Fiscal Year Ended January 31, 2024 2023 2022 Cost of revenue $ 1,000 $ 956 $ 979 Sales and marketing 2,226 2,019 1,856 Research and development 4,760 4,623 4,216 General and administrative 6,847 6,305 5,631 Total stock-based compensation expense $ 14,833 $ 13,903 $ 12,682 |
Summary of Assumptions Used to Estimate Fair Value of Employee Stock Options Grants and Employee Stock Purchase Plan Using Black-Scholes Option Pricing Model | The fair value of employee stock options and ESPP was estimated using the Black–Scholes model with the following assumptions: Fiscal Year Ended January 31, 2024 (1) 2023 2022 Stock Options: Expected volatility NA 49 % 51 % Expected term (in years) NA 6.1 6.1 Risk-free interest rate NA 1.6 % 0.9 % Dividend yield NA NA NA (1) No option was granted in fiscal 2024. Fiscal Year Ended January 31, 2024 2023 2022 ESPP: Expected volatility 32 %- 43 % 41 %- 55 % 41 %- 58 % Expected term (in years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Risk-free interest rate 3.9 %- 5.5 % 0.9 %- 4.0 % 0.1 %- 0.2 % Dividend yield NA NA NA |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Domestic and Foreign Components of Loss Before Income Taxes | The domestic and foreign components of loss before income taxes were as follows (in thousands): Fiscal Year Ended January 31, 2024 2023 2022 United States $ ( 491 ) $ ( 2,557 ) $ 1,340 Foreign ( 2,322 ) ( 2,868 ) ( 3,091 ) Loss before income taxes $ ( 2,813 ) $ ( 5,425 ) $ ( 1,751 ) |
Schedule of Income Tax Benefit | Income tax benefit consisted of the following: Fiscal Year Ended January 31, 2024 2023 2022 Current: Federal $ — $ — $ — State 1,153 363 — Foreign — — — Total current 1,153 363 — Deferred: Federal ( 2,661 ) ( 1,783 ) — State ( 470 ) ( 350 ) — Foreign — — — Total deferred ( 3,131 ) ( 2,133 ) — Income tax benefit $ ( 1,978 ) $ ( 1,770 ) $ — |
Reconciliation of Income Tax Benefit | Income tax benefit differed from the amount computed by applying the U.S. federal income tax rate to pre-tax loss as a result of the following (dollars in thousands): Fiscal Year Ended January 31, 2024 Rate 2023 Rate 2022 Rate Federal tax at statutory rate $ ( 603 ) 21 % $ ( 1,139 ) 21 % $ ( 368 ) 21 % State taxes, net of federal benefit ( 128 ) 4 % ( 40 ) 1 % 52 ( 3 )% Foreign income and withholding taxes ( 139 ) 5 % ( 172 ) 3 % ( 185 ) 11 % Permanent tax adjustment 294 ( 10 )% 543 ( 10 )% 58 ( 3 )% Section 162(m) 802 ( 28 )% 843 ( 16 )% 1,050 ( 60 )% Stock-based compensation 812 ( 28 )% 530 ( 10 )% ( 1,545 ) 88 % Change in valuation allowance ( 1,015 ) 35 % ( 1,566 ) 29 % 2,959 ( 169 )% Research and development credit ( 2,095 ) 73 % ( 1,288 ) 24 % ( 1,980 ) 113 % Provision to return adjustments 4 — 533 ( 10 )% — — Other 90 ( 3 )% ( 14 ) 1 % ( 41 ) 2 % Income tax benefit at effective tax rate $ ( 1,978 ) 69 % $ ( 1,770 ) 33 % $ — 0 % |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets and liabilities are as follows (in thousands): As of January 31, 2024 2023 Deferred tax assets: Net operating loss carryforwards $ 18,486 $ 28,771 Tax credit carryover 14,928 12,205 Operating lease liabilities 4,405 3,547 Stock-based compensation 1,095 923 Capitalized research and development 17,131 6,061 State Taxes 232 — Deferred revenue 4 8 Other — 22 Gross deferred tax assets 56,281 51,537 Valuation allowance ( 42,530 ) ( 43,545 ) Net deferred tax assets $ 13,751 $ 7,992 Deferred tax liabilities: Operating lease right-of-use assets $ ( 4,309 ) $ ( 3,202 ) Deferred sales commissions and other ( 2,119 ) ( 2,396 ) Acquired intangible assets ( 6,100 ) ( 1,543 ) Fixed assets depreciation ( 1,223 ) ( 851 ) Gross deferred tax liabilities $ ( 13,751 ) $ ( 7,992 ) Net deferred taxes $ — $ — |
Summary of Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to unrecognized tax benefits (in thousands): Fiscal Year Ended January 31, 2024 2023 2022 Unrecognized tax benefits, beginning of fiscal year $ 9,060 $ 8,090 $ 6,642 Increase (decrease) related to prior year tax positions 670 ( 331 ) — Increase related to current year tax positions 1,313 1,301 1,448 Unrecognized tax benefits, end of fiscal year $ 11,043 $ 9,060 $ 8,090 |
Business Acquisition (Tables)
Business Acquisition (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
2600Hz, Inc | |
Business Acquisition [Line Items] | |
Summary of Preliminary Purchase Price Allocation | The following table summarizes the preliminary purchase price allocation, as adjusted (in thousands): Fair Value Cash and cash equivalents $ 1,829 Accounts receivable 440 Other current and non-current assets 588 Property plant and equipment, net 195 Intangible assets 21,200 Goodwill 14,414 Accounts payable and other liabilities ( 1,487 ) Deferred tax liability ( 3,131 ) Total purchase consideration $ 34,048 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss Per Share | The following table sets forth the computation of basic and diluted net loss per share (in thousands, except share and per share data): Fiscal Year Ended January 31, 2024 2023 2022 Numerator Net loss $ ( 835 ) $ ( 3,655 ) $ ( 1,751 ) Denominator Weighted-average common shares 25,573,288 24,506,525 23,473,849 Basic and diluted net loss per share $ ( 0.03 ) $ ( 0.15 ) $ ( 0.07 ) |
Overview and Basis of Present_2
Overview and Basis of Presentation - Additional Information (Details) | 12 Months Ended |
Jan. 31, 2024 Segment | |
Accounting Policies [Abstract] | |
Reportable segments | 1 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Jan. 31, 2024 USD ($) | Jan. 31, 2023 USD ($) Source | Jan. 31, 2022 USD ($) | |
Significant Accounting Policies [Line Items] | |||
Number of sources of revenue | Source | 2 | ||
Allowances for product returns and customer sales incentives | $ 800,000 | $ 700,000 | |
Allowances for doubtful accounts | 300,000 | 300,000 | |
Impairment loss in relation to deferred commission costs capitalized | 0 | ||
Impairment of long-lived assets | 0 | $ 0 | |
Interest expense or penalties related to unrecognized tax benefits | 0 | 0 | 0 |
Sales and marketing | |||
Significant Accounting Policies [Line Items] | |||
Advertising costs | $ 16,500,000 | $ 16,400,000 | $ 14,500,000 |
Deferred Sales Commissions | |||
Significant Accounting Policies [Line Items] | |||
Estimated life (in years) | 5 years | ||
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life of property and equipment | 2 years | ||
Minimum | Website Development Costs | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life of property and equipment | 3 years | ||
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life of property and equipment | 5 years | ||
Maximum | Website Development Costs | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life of property and equipment | 5 years |
Significant Accounting Polici_5
Significant Accounting Policies - Concentration of Net Accounts Receivable Balance (Details) | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Accounts Receivable | Customer Concentration Risk | Customer A | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 33% | 18% |
Revenue and Deferred Revenue -
Revenue and Deferred Revenue - Summary of Revenue Disaggregated by Revenue Source (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 236,737 | $ 216,165 | $ 192,290 |
Subscription and services revenue | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 221,624 | 199,105 | 175,942 |
Product and other revenue | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 15,113 | $ 17,060 | $ 16,348 |
Revenue and Deferred Revenue _2
Revenue and Deferred Revenue - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Jan. 31, 2024 USD ($) Customer Country | Jan. 31, 2023 Country Customer | Jan. 31, 2022 Customer Country | |
Disaggregation Of Revenue [Line Items] | |||
Number of countries outside United States represented 10% or more of total revenue | Country | 0 | 0 | 0 |
Number of customers that individually exceeded 10% of revenue | Customer | 0 | 0 | 0 |
Deferred revenue recognized | $ | $ 17.2 | ||
Ooma Business | Revenue | Product Concentration Risk | |||
Disaggregation Of Revenue [Line Items] | |||
Concentration risk, percentage | 58% | 53% | 49% |
Ooma Residential | Revenue | Product Concentration Risk | |||
Disaggregation Of Revenue [Line Items] | |||
Concentration risk, percentage | 40% | 45% | 49% |
Revenue and Deferred Revenue _3
Revenue and Deferred Revenue - Components of Deferred Revenue (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 17,056 | $ 17,247 |
Less: current deferred revenue | 17,041 | 17,216 |
Non-current deferred revenue included in other long-term liabilities | 15 | 31 |
Subscription and Services | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 17,034 | 17,239 |
Product and Other | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 22 | $ 8 |
Revenue and Deferred Revenue _4
Revenue and Deferred Revenue - Additional Information (Details 1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-02-01 $ in Millions | Jan. 31, 2024 USD ($) |
Disaggregation Of Revenue [Line Items] | |
Revenue expected to be recognized from remaining performance obligations | $ 26.5 |
Revenue expected to be recognized from remaining performance obligations, percentage | 41% |
Revenue expected to be recognized from remaining performance obligations, period | 12 months |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | Jan. 31, 2024 | Jan. 31, 2023 |
Debt Securities, Available-for-Sale [Line Items] | ||
Fair value level asset and liability | $ 0 | |
Short-term investments | 0 | $ 2,723,000 |
Total cash and cash equivalents | $ 17,500,000 | 24,137,000 |
Short-term Investments | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Short-term investments due in less than a year | $ 2,700,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets at Fair Value (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | $ 17,500 | $ 24,137 |
Total short-term investments | 2,723 | |
U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 1,232 | |
Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 1,491 | |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 1,232 | |
Level 1 | U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 1,232 | |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 1,491 | |
Level 2 | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 1,491 | |
Cash | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 12,757 | |
Cash Equivalents | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 11,380 | |
Cash Equivalents | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 11,380 | |
Cash Equivalents | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 11,380 | |
Cash Equivalents | Level 1 | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | $ 11,380 |
Balance Sheet Components - Comp
Balance Sheet Components - Components of Inventories (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 12,024 | $ 13,715 |
Raw materials | 7,758 | 12,531 |
Total inventory | $ 19,782 | $ 26,246 |
Balance Sheet Components - Co_2
Balance Sheet Components - Components of Property And Equipment, Net (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 31,852 | $ 25,956 |
Less: accumulated depreciation and amortization | (21,955) | (17,960) |
Property and equipment, net | $ 9,897 | 7,996 |
Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, estimated life | 2 years | |
Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, estimated life | 5 years | |
Computer Hardware and Software | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 6,995 | 6,847 |
Computer Hardware and Software | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, estimated life | 3 years | |
Computer Hardware and Software | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, estimated life | 4 years | |
Network and Engineering Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 7,504 | 6,283 |
Network and Engineering Equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, estimated life | 3 years | |
Network and Engineering Equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, estimated life | 5 years | |
Website Development Costs | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 9,046 | 6,251 |
Website Development Costs | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, estimated life | 3 years | |
Website Development Costs | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, estimated life | 5 years | |
Customer Premise Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 7,466 | 5,954 |
Customer Premise Equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, estimated life | 3 years | |
Customer Premise Equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, estimated life | 5 years | |
Office Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 204 | 497 |
Property and equipment, estimated life | 5 years | |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 637 | $ 124 |
Leasehold Improvements | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, estimated life | 1 year | |
Leasehold Improvements | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, estimated life | 5 years |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands, shares in Millions | 12 Months Ended | ||||
Mar. 08, 2024 | Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | Dec. 31, 2018 | |
Balance Sheet Components [Line Items] | |||||
Depreciation and amortization | $ 4,300 | $ 3,800 | $ 3,100 | ||
Amortization expense for deferred sales commissions | 9,000 | 7,600 | $ 6,000 | ||
Convertible note receivable | 2,257 | 1,899 | |||
Non-cancelable inventory purchase commitments | 1,100 | 7,800 | |||
Global Telecom Corporation | |||||
Balance Sheet Components [Line Items] | |||||
Convertible note receivable | 2,300 | ||||
Non-cancelable inventory purchase commitments | 0 | 0 | |||
Payment for inventory purchases and related costs | $ 400 | $ 2,600 | |||
Global Telecom Corporation | Convertible Promissory Note | |||||
Balance Sheet Components [Line Items] | |||||
Investment in privately-held company | $ 1,300 | ||||
Equity Financing | Preferred Stock | Subsequent Event | Global Telecom Corporation | |||||
Balance Sheet Components [Line Items] | |||||
Conversion price per share percentage | 70% | ||||
Carrying value of convertible note | $ 2,300 | ||||
Outstanding principal and unpaid interests converted to shares | 8.2 |
Balance Sheet Components - Co_3
Balance Sheet Components - Components of Other Current and Non-current Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Other Assets [Abstract] | ||
Deferred sales commissions, current | $ 8,579 | $ 7,826 |
Prepaid expenses and other | 4,177 | 2,777 |
Convertible note receivable (see "GTC" below) | 2,257 | 1,899 |
Other current assets | 1,484 | 1,866 |
Total other current assets | 16,497 | 14,368 |
Deferred sales commissions, non-current | 15,257 | 14,467 |
Other assets | 2,358 | 2,117 |
Total other non-current assets | $ 17,615 | $ 16,584 |
Balance Sheet Components - Co_4
Balance Sheet Components - Components of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Payables and Accruals [Abstract] | ||
Payroll and related expenses | $ 12,301 | $ 13,621 |
Regulatory fees and taxes | 4,598 | 3,609 |
Short-term operating lease liabilities | $ 3,742 | $ 3,617 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Total accrued expenses and other current liabilities | Total accrued expenses and other current liabilities |
Customer-related liabilities | $ 1,118 | $ 1,045 |
Other | 4,827 | 4,834 |
Total accrued expenses and other current liabilities | $ 26,586 | $ 26,726 |
Goodwill and Acquired Intangi_3
Goodwill and Acquired Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | Oct. 20, 2023 | |
Goodwill [Line Items] | ||||
Amortization expense | $ 3,711 | $ 2,286 | $ 1,304 | |
Goodwill | 14,414 | |||
2600Hz, Inc | ||||
Goodwill [Line Items] | ||||
Intangibles | 21,200 | $ 21,200 | ||
Goodwill | $ 14,400 |
Goodwill and Acquired Intangi_4
Goodwill and Acquired Intangible Assets - Summary of Goodwill (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2024 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Balance at January 31, 2023 | $ 8,655 |
Additions due to 2600Hz acquisition | 14,414 |
Balance at January 31, 2024 | $ 23,069 |
Goodwill and Acquired Intangi_5
Goodwill and Acquired Intangible Assets - Summary of Carrying Values of Intangible Assets Other than Goodwill (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Value, Intangible Assets | $ 38,848 | $ 17,648 |
Accumulated Amortization, Intangible Assets | (10,896) | (7,185) |
Carrying Value, Intangible Assets | 27,952 | 10,463 |
Developed technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Value, Intangible Assets | 20,618 | 2,219 |
Accumulated Amortization, Intangible Assets | (2,865) | (1,891) |
Carrying Value, Intangible Assets | $ 17,753 | $ 328 |
Developed technology | Minimum | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated life (in years) | 2 years | 2 years |
Developed technology | Maximum | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated life (in years) | 7 years | 5 years |
Customer relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Value, Intangible Assets | $ 16,545 | $ 14,745 |
Accumulated Amortization, Intangible Assets | (7,336) | (4,775) |
Carrying Value, Intangible Assets | $ 9,209 | $ 9,970 |
Customer relationships | Minimum | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated life (in years) | 5 years | 5 years |
Customer relationships | Maximum | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated life (in years) | 7 years | 7 years |
Trade names | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Value, Intangible Assets | $ 1,685 | $ 684 |
Accumulated Amortization, Intangible Assets | (695) | (519) |
Carrying Value, Intangible Assets | $ 990 | $ 165 |
Trade names | Minimum | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated life (in years) | 2 years | 2 years |
Trade names | Maximum | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated life (in years) | 5 years | 5 years |
Goodwill and Acquired Intangi_6
Goodwill and Acquired Intangible Assets - Schedule of Estimated Future Amortization Expense for Intangible Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2025 | $ 5,768 | |
2026 | 5,624 | |
2027 | 5,068 | |
2028 | 3,950 | |
2029 | 3,030 | |
Thereafter | 4,512 | |
Carrying Value, Intangible Assets | $ 27,952 | $ 10,463 |
Operating Leases - Additional I
Operating Leases - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Jul. 31, 2023 | Oct. 31, 2023 | Jan. 31, 2024 | Jan. 31, 2023 | |
Lessee Lease Description [Line Items] | ||||
Operating lease, description | The Company leases its headquarters located in Sunnyvale, California, as well as office space and data center facilities in several locations under non-cancelable operating lease agreements, with expiration dates through fiscal 2033. | |||
Operating lease, expiration date ending period | 2033 | |||
Facilities consolidation charges | $ (956) | $ 1,402 | ||
Lease liability | 17,418 | $ 14,043 | ||
Total rental payments | $ 6,900 | |||
General and Administrative Expense | ||||
Lessee Lease Description [Line Items] | ||||
Facilities consolidation charges | $ 1,400 | |||
Write off of lease liability | $ 1,000 |
Operating Leases - Summary of S
Operating Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Assets | ||
Operating lease right-of-use assets | $ 17,041 | $ 12,702 |
Total leased assets | 17,041 | 12,702 |
Liabilities | ||
Short-term operating lease liabilities | 3,742 | 3,617 |
Long-term operating lease liabilities | 13,676 | 10,426 |
Total lease liabilities | $ 17,418 | $ 14,043 |
Weighted-average remaining lease term | 6 years | 4 years 9 months 18 days |
Weighted-average discount rate | 6.20% | 4.50% |
Operating Leases - Components o
Operating Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Lease, Cost [Abstract] | |||
Operating lease costs | $ 4,581 | $ 4,030 | $ 3,861 |
Variable lease costs | 1,217 | 1,117 | 972 |
Total lease cost | $ 5,798 | $ 5,147 | $ 4,833 |
Operating Leases - Summary of_2
Operating Leases - Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Leases [Abstract] | |||
Cash payments for operating leases | $ 3,895 | $ 3,563 | $ 3,945 |
Right-of-use assets recognized in exchange for new operating lease obligations | $ 7,303 | $ 2,599 | $ 11,289 |
Operating Leases - Summary of M
Operating Leases - Summary of Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Lessee, Operating Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract] | ||
2025 | $ 3,845 | |
2026 | 3,810 | |
2027 | 3,648 | |
2028 | 2,656 | |
2029 | 2,742 | |
Thereafter | 4,629 | |
Total future minimum lease payments | 21,330 | |
Less: imputed interest | (3,912) | |
Present value of lease liabilities | $ 17,418 | $ 14,043 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Common Stock Reserved for Issuance (Details) - shares shares in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Common Stock Reserved For Future Issuance [Line Items] | ||
Total shares of common stock reserved | 7,746 | 6,974 |
Restricted stock units outstanding | ||
Common Stock Reserved For Future Issuance [Line Items] | ||
Total shares of common stock reserved | 2,075 | 1,466 |
Options to purchase common stock | ||
Common Stock Reserved For Future Issuance [Line Items] | ||
Total shares of common stock reserved | 1,161 | 1,217 |
Shares available for future issuance under stock plans | ||
Common Stock Reserved For Future Issuance [Line Items] | ||
Total shares of common stock reserved | 2,601 | 2,654 |
Shares reserved under ESPP | ||
Common Stock Reserved For Future Issuance [Line Items] | ||
Total shares of common stock reserved | 1,909 | 1,637 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Jan. 31, 2024 USD ($) $ / shares shares | Jan. 31, 2023 USD ($) $ / shares shares | Jan. 31, 2022 USD ($) $ / shares shares | Jan. 31, 2021 Period | |
Stockholders Equity Note Disclosure [Line Items] | ||||
Stock options granted | shares | 0 | |||
Number of shares of common stock issued under ESPP | shares | 200,000 | 200,000 | 200,000 | |
ESPP | ||||
Stockholders Equity Note Disclosure [Line Items] | ||||
Percentage of eligible compensation subject to plan limitation | 15% | |||
Employee stock purchase plan offering period | 24 months | |||
Number of purchase periods | Period | 4 | |||
Purchase periods | 6 months | |||
Purchase price of common stock as percentage of fair market value | 85% | |||
Weighted average purchase price of shares of common stock under ESPP | $ / shares | $ 10.6 | $ 10.44 | $ 10.22 | |
Employee Stock Option | ||||
Stockholders Equity Note Disclosure [Line Items] | ||||
Employee stock option expiration period | 10 years | |||
Aggregate intrinsic value of vested options exercised | $ | $ 500 | $ 1,700 | $ 1,900 | |
Weighted-average grant date fair value of options granted | $ / shares | $ 8.06 | $ 7.89 | ||
Employee Stock Option | Maximum | ||||
Stockholders Equity Note Disclosure [Line Items] | ||||
Employee stock option vesting period | 4 years | |||
Restricted Stock Units (RSUs) | ||||
Stockholders Equity Note Disclosure [Line Items] | ||||
Payment for shares of common stock withheld for tax withholdings on vesting of restricted stock units ("RSU") | $ | $ 1,741 | $ 1,554 | $ 2,105 | |
Restricted Stock Units (RSUs) | Maximum | ||||
Stockholders Equity Note Disclosure [Line Items] | ||||
Employee stock option vesting period | 4 years | |||
Restricted Stock Units (RSUs) | Minimum | ||||
Stockholders Equity Note Disclosure [Line Items] | ||||
Employee stock option vesting period | 1 year |
Stockholders' Equity - Summariz
Stockholders' Equity - Summarizes of Stock Option Activities (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Number of Shares | ||
Shares, Beginning balance | 1,217,000 | |
Shares, Granted | 0 | |
Shares, Exercised | (54,000) | |
Shares, Canceled | (2,000) | |
Shares, Ending balance | 1,161,000 | |
Shares, Vested and exercisable | 1,068,000 | |
Weighted Average Exercise Price Per Share | ||
Weighted Average Exercise Price Per Share, Beginning balance | $ 9.93 | |
Weighted Average Exercise Price Per Share, Granted | 0 | |
Weighted Average Exercise Price Per Share, Exercised | 4.90 | |
Weighted Average Exercise Price Per Share, Canceled | 13.36 | |
Weighted Average Exercise Price Per Share, Ending balance | 10.14 | |
Weighted Average Exercise Price Per Share, Vested and exercisable | $ 9.63 | |
Aggregate Intrinsic Value | ||
Aggregate Intrinsic Value | $ 2,522 | $ 5,949 |
Aggregate Intrinsic Value, Vested and exercisable | $ 2,520 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summarizes of Restricted Stock Units Activities (Details) - Restricted Stock Units (RSUs) shares in Thousands | 12 Months Ended |
Jan. 31, 2024 $ / shares shares | |
Number of Shares | |
Shares, RSUs Beginning Balance | shares | 1,466 |
Shares, Granted | shares | 1,507 |
Shares, Vested | shares | (835) |
Shares, Canceled | shares | (63) |
Shares, RSUs Ending Balance | shares | 2,075 |
Weighted Average Grant-Date Fair Value Per Share | |
Weighted Average Grant-Date Fair Value Per Share, Beginning Balance | $ / shares | $ 15.81 |
Weighted Average Grant-Date Fair Value Per Share, Granted | $ / shares | 12.3 |
Weighted Average Grant-Date Fair Value Per Share, Vested | $ / shares | 14.65 |
Weighted Average Grant-Date Fair Value Per Share, Canceled | $ / shares | 15.24 |
Weighted Average Grant-Date Fair Value Per Share, Ending Balance | $ / shares | $ 13.74 |
Stock-Based Compensation - Tota
Stock-Based Compensation - Total Stock-Based Compensation Recognized for Stock-Based Awards in Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 14,833 | $ 13,903 | $ 12,682 |
Cost of revenue | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 1,000 | 956 | 979 |
Sales and marketing | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 2,226 | 2,019 | 1,856 |
Research and development | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 4,760 | 4,623 | 4,216 |
General and administrative | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 6,847 | $ 6,305 | $ 5,631 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Income tax benefit related to stock-based compensation expense | $ 0 | $ 0 | $ 0 |
Unrecognized compensation expense related to unvested share-based awards | $ 27,200,000 | ||
Compensation expenses recognized over weighted average vesting period | 2 years 2 months 12 days |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used to Estimate Fair Value of Employee Stock Options Grants and Employee Stock Purchase Plan Using Black-Scholes Option Pricing Model (Details) | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
ESPP | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected volatility, minimum | 32% | 41% | 41% |
Expected volatility, maximum | 43% | 55% | 58% |
Risk-free interest rate, minimum | 3.90% | 0.90% | 0.10% |
Risk-free interest rate, maximum | 5.50% | 4% | 0.20% |
ESPP | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 6 months | 6 months | 6 months |
ESPP | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 2 years | 2 years | 2 years |
Employee Stock Option | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected volatility | 49% | 51% | |
Expected term (in years) | 6 years 1 month 6 days | 6 years 1 month 6 days | |
Risk-free interest rate | 1.60% | 0.90% |
Income Taxes - Domestic and For
Income Taxes - Domestic and Foreign Components of Loss Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (491) | $ (2,557) | $ 1,340 |
Foreign | (2,322) | (2,868) | (3,091) |
Loss before income taxes | $ (2,813) | $ (5,425) | $ (1,751) |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Current: | ||
State | $ 1,153 | $ 363 |
Total current | 1,153 | 363 |
Deferred: | ||
Federal | (2,661) | (1,783) |
State | (470) | (350) |
Total deferred | (3,131) | (2,133) |
Income tax benefit / Income tax benefit at effective tax rate | $ (1,978) | $ (1,770) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Income Tax [Line Items] | ||||
Income tax benefit | $ (1,978,000) | $ (1,770,000) | ||
Net deferred tax asset, Increase (decrease) in valuation allowance | (1,000,000) | (1,600,000) | ||
Unrecognized tax benefits | 11,043,000 | 9,060,000 | $ 8,090,000 | $ 6,642,000 |
Interest expense or penalties related to unrecognized tax benefits | 0 | 0 | $ 0 | |
Deferred tax liabilities assumed | $ (3,131,000) | $ (2,133,000) | ||
Minimum | ||||
Income Tax [Line Items] | ||||
Percentage of ownership change | 50% | |||
Research and Development | ||||
Income Tax [Line Items] | ||||
Federal tax credit, expired | 2030 | |||
2038 | ||||
Income Tax [Line Items] | ||||
Net operating loss carryforwards | $ 5,800,000 | |||
Federal | ||||
Income Tax [Line Items] | ||||
Net operating loss carryforwards | $ 47,700,000 | |||
Net operating loss carryforwards, expired | 2038 | |||
Federal | Research and Development | ||||
Income Tax [Line Items] | ||||
Tax credit carryforwards | $ 14,800,000 | |||
State | ||||
Income Tax [Line Items] | ||||
Net operating loss carryforwards, expired | 2025 | |||
State | Research and Development | ||||
Income Tax [Line Items] | ||||
Tax credit carryforwards | $ 12,800,000 | |||
State | 2025 | ||||
Income Tax [Line Items] | ||||
Net operating loss carryforwards | $ 70,700,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
Federal tax at statutory rate | $ (603) | $ (1,139) | $ (368) |
State taxes, net of federal benefit | (128) | (40) | 52 |
Foreign income and withholding taxes | (139) | (172) | (185) |
Permanent tax adjustment | 294 | 543 | 58 |
Section 162(m) | 802 | 843 | 1,050 |
Stock-based compensation | 812 | 530 | (1,545) |
Change in valuation allowance | (1,015) | (1,566) | 2,959 |
Research and development credit | (2,095) | (1,288) | (1,980) |
Provision to return adjustments | 4 | 533 | |
Other | 90 | (14) | $ (41) |
Income tax benefit / Income tax benefit at effective tax rate | $ (1,978) | $ (1,770) | |
Federal tax at statutory rate, Rate | 21% | 21% | 21% |
State taxes, net of federal benefit, Rate | 4% | 1% | (3.00%) |
Foreign income and withholding taxes, Rate | 5% | 3% | 11% |
Permanent tax adjustment, Rate | (10.00%) | (10.00%) | (3.00%) |
Section 162(m), Rate | (28.00%) | (16.00%) | (60.00%) |
Stock-based compensation, Rate | (28.00%) | (10.00%) | 88% |
Change in valuation allowance, Rate | 35% | 29% | (169.00%) |
Research and development credit, Rate | 73% | 24% | 113% |
Provision to return adjustments, Rate | (10.00%) | ||
Other, Rate | (3.00%) | 1% | 2% |
Income tax benefit at effective tax rate, Rate | 69% | 33% | 0% |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 18,486 | $ 28,771 |
Tax credit carryover | 14,928 | 12,205 |
Operating lease liabilities | 4,405 | 3,547 |
Stock-based compensation | 1,095 | 923 |
Capitalized research and development | 17,131 | 6,061 |
State Taxes | 232 | |
Deferred revenue | 4 | 8 |
Other | 22 | |
Gross deferred tax assets | 56,281 | 51,537 |
Valuation allowance | (42,530) | (43,545) |
Net deferred tax assets | 13,751 | 7,992 |
Deferred tax liabilities: | ||
Operating lease right-of-use assets | (4,309) | (3,202) |
Deferred sales commissions and other | (2,119) | (2,396) |
Acquired intangible assets | (6,100) | (1,543) |
Fixed assets depreciation | (1,223) | (851) |
Gross deferred tax liabilities | $ (13,751) | $ (7,992) |
Income Taxes - Summary of Activ
Income Taxes - Summary of Activity Related to Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, Beginning Balance | $ 9,060 | $ 8,090 | $ 6,642 |
Increase (decrease) related to prior year tax positions | 670 | (331) | |
Increase related to current year tax positions | 1,313 | 1,301 | 1,448 |
Unrecognized tax benefits, Ending Balance | $ 11,043 | $ 9,060 | $ 8,090 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | Jan. 31, 2024 | Jan. 31, 2023 |
Commitments And Contingencies Disclosure [Line Items] | ||
Non-cancelable inventory purchase commitments | $ 1,100,000 | $ 7,800,000 |
Accrued liabilities for loss contingencies | 0 | $ 0 |
Non-Cancelable Service Agreement with Telecommunications Provider | Minimum | ||
Commitments And Contingencies Disclosure [Line Items] | ||
Non-cancelable purchase commitments between August 2022 and July 2023 | 1,500,000 | |
Non-cancelable purchase commitments between August 2023 and July 2024 | $ 2,500,000 |
Financing Arrangements - Additi
Financing Arrangements - Additional Information (Details) - Revolving Credit Facility - USD ($) | 12 Months Ended | ||
Oct. 20, 2023 | Jan. 08, 2021 | Jan. 31, 2024 | |
Credit Agreement | |||
Line Of Credit Facility [Line Items] | |||
Credit agreement initiation date | Oct. 20, 2023 | ||
Maximum borrowing capacity | $ 50,000,000 | ||
Borrowing capacity description | On October 20, 2023, the Company, as borrower, entered into a three-year credit and security agreement (“Credit Agreement”) with Citizens Bank N.A., as Administrative Agent (“Agent”) and lender. The Credit Agreement provides for a secured revolving credit facility (“Credit Facility”) under which the Company may borrow up to an aggregate amount of $30.0 million, which includes a $10.0 million sub-facility for letters of credit. The Company and its lenders may increase the total commitments under the Credit Facility to up to an aggregate amount of $50.0 million, subject to certain conditions. Funds borrowed under the Credit Agreement may be used for acquisition, working capital and other general corporate purposes. | ||
Credit agreement, Interest rate description | Loans under the Credit Agreement will bear interest, at the Company’s option, at either a rate equal to the Alternate Base Rate plus the Applicable Margin (as defined in the Credit Agreement) or Term Secure Overnight Financing Rate ("SOFR") plus the Applicable Margin (as defined in the Credit Agreement). The Alternate Base Rate is the highest of (i) the Agent’s prime rate, (ii) the federal funds effective rate plus 0.50% per annum, and (iii) the Daily SOFR rate plus 1.00% per annum. The SOFR Rate is a rate equal to the secured overnight financing rate as published by the SOFR Administrator and displayed on CME Group Benchmark Administration Limited’s Market Data Platform. The Applicable Margin for Alternative Base Rate Loans is 1.25% and the Applicable Margin for the SOFR Loans is 2.00%. Upon the occurrence of any event of default, the interest rate on the borrowings increases by 5.00%. The Company is required to pay a commitment fee on the unused portion of the Credit Facility of 0.25% per annum. | ||
Percentage of commitment fees on revolving credit facility | 0.25% | ||
Borrowing remaining capacity | $ 14,000,000 | ||
Debt issuance costs | $ 500,000 | ||
Credit Agreement | SOFR | |||
Line Of Credit Facility [Line Items] | |||
Credit agreement, rate | 2% | ||
Credit agreement, Variable rate | 1% | 7.40% | |
Borrowing capacity, Outstanding amount | $ 16,000,000 | ||
Credit Agreement | Base Rate | |||
Line Of Credit Facility [Line Items] | |||
Credit agreement, rate | 1.25% | ||
Credit agreement, Variable rate | 0.50% | ||
Credit Agreement | Maximum | |||
Line Of Credit Facility [Line Items] | |||
Borrowing capacity | $ 30,000,000 | ||
Credit Agreement | Maximum | SOFR | |||
Line Of Credit Facility [Line Items] | |||
Debt instrument interest rate increases on borrowings | 5% | ||
Credit Agreement | Letters of Credit | |||
Line Of Credit Facility [Line Items] | |||
Borrowing capacity | $ 10,000,000 | ||
Key Bank Credit Agreement | |||
Line Of Credit Facility [Line Items] | |||
Credit agreement initiation date | Jan. 08, 2021 | ||
Maximum borrowing capacity | $ 45,000,000 | ||
Borrowing capacity description | On January 8, 2021, the Company, as borrower, entered into a credit and security agreement (“Key Bank Credit Agreement”) with KeyBank National Association ("Key Bank") as Administrative Agent (“Agent”) and lender, and KeyBanc Capital Markets Inc. as sole lead arranger and sole book runner. Prior to its termination as described below, the Key Bank Credit Agreement provided for a secured revolving credit facility under which the Company could have borrowed up to an aggregate amount of $25.0 million, which included a $10.0 million sub-facility for letters of credit. The Company and its lenders were able to increase the total commitments under the credit facility to up to an aggregate amount of $45.0 million, subject to certain conditions. Permitted uses of funds borrowed under the Key Bank Credit Agreement included working capital and other general corporate purposes. | ||
Key Bank Credit Agreement | Maximum | |||
Line Of Credit Facility [Line Items] | |||
Borrowing capacity | $ 25,000,000 | ||
Key Bank Credit Agreement | Letters of Credit | |||
Line Of Credit Facility [Line Items] | |||
Borrowing capacity | $ 10,000,000 |
Business Acquisition - Addition
Business Acquisition - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Oct. 20, 2023 | Jan. 31, 2024 | Jul. 31, 2023 | Jan. 31, 2023 | Oct. 31, 2023 | Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Business Acquisition [Line Items] | ||||||||
Stock compensation expense | $ 14,833 | $ 13,903 | $ 12,682 | |||||
Acquisition related costs | 900 | |||||||
Receivable from the seller for working capital adjustments | 300 | |||||||
Revenues | 236,737 | 216,165 | 192,290 | |||||
2600Hz, Inc | ||||||||
Business Acquisition [Line Items] | ||||||||
Payment of cash consideration subject to working capital adjustments | $ 32,200 | |||||||
Cash acquired | 1,800 | |||||||
Intangible assets | $ 21,200 | $ 21,200 | 21,200 | |||||
Pro forma revenue | $ 243,700 | 226,500 | ||||||
Revenues | $ 2,300 | |||||||
2600Hz, Inc | Restricted Stock Units | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of units issued | 423,000 | |||||||
Vesting period | 18 months | |||||||
Stock compensation expense | $ 4,300 | |||||||
2600Hz, Inc | Developed technology | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | $ 18,400 | |||||||
Junction Networks, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Pro forma revenue | $ 222,200 | $ 205,100 | ||||||
Total cash consideration | $ 9,500 | |||||||
Receivable from the seller for working capital adjustments | $ 300 | |||||||
Revenues | $ 6,500 |
Business Acquisition - Summary
Business Acquisition - Summary of Preliminary Purchase Price Allocation (Details) - 2600Hz, Inc - USD ($) $ in Thousands | Jan. 31, 2024 | Oct. 20, 2023 |
Business Acquisition [Line Items] | ||
Cash and cash equivalents | $ 1,829 | |
Accounts receivable | 440 | |
Other current and non-current assets | 588 | |
Property plant and equipment, net | 195 | |
Intangible assets | $ 21,200 | 21,200 |
Goodwill | 14,414 | |
Accounts payable and other liabilities | (1,487) | |
Deferred tax liability | (3,131) | |
Total purchase consideration | $ 34,048 |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Numerator | |||
Net loss | $ (835) | $ (3,655) | $ (1,751) |
Denominator | |||
Basic weighted-average common shares | 25,573,288 | 24,506,525 | 23,473,849 |
Diluted weighted-average common shares | 25,573,288 | 24,506,525 | 23,473,849 |
Basic net loss per share | $ (0.03) | $ (0.15) | $ (0.07) |
Diluted net loss per share | $ (0.03) | $ (0.15) | $ (0.07) |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Details) - shares shares in Millions | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Earnings Per Share [Abstract] | |||
Potentially dilutive securities excluded from the computation of diluted net loss per share | 0.6 | 0.7 | 1.4 |
Retirement Plan - Additional In
Retirement Plan - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Retirement Benefits [Abstract] | |||
Employee contribution, percent of match | 50% | ||
Employer contribution, percent of match | 50% | ||
Employee maximum contribution percent of deferred salary amount | 6% | ||
Vesting percentage | 100% | ||
Matching contributions to the plan | $ 1.1 | $ 0.9 | $ 0.7 |