Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 31, 2020 | Nov. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 31, 2020 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | OOMA | |
Entity Registrant Name | Ooma Inc | |
Entity Central Index Key | 0001327688 | |
Current Fiscal Year End Date | --01-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 22,700,000 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
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 Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, par value $0.0001 | |
Security Exchange Name | NYSE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | DE |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Oct. 31, 2020 | Jan. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 15,511 | $ 11,680 |
Short-term investments | 12,105 | 14,384 |
Accounts receivable, net | 4,990 | 4,591 |
Inventories | 10,233 | 8,369 |
Other current assets | 10,582 | 8,992 |
Total current assets | 53,421 | 48,016 |
Property and equipment, net | 5,037 | 5,270 |
Operating lease right-of-use assets | 6,209 | 8,057 |
Intangible assets, net | 5,839 | 6,818 |
Goodwill | 4,264 | 4,264 |
Other assets | 10,975 | 8,186 |
Total assets | 85,745 | 80,611 |
Current liabilities: | ||
Accounts payable | 7,409 | 8,499 |
Accrued expenses and other current liabilities | 21,431 | 22,576 |
Deferred revenue | 16,313 | 15,797 |
Total current liabilities | 45,153 | 46,872 |
Long-term operating lease liabilities | 3,029 | 5,150 |
Other liabilities | 89 | 174 |
Total liabilities | 48,271 | 52,196 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity: | ||
Common stock $0.0001 par value: 100 million shares authorized; 22.7 million and 21.7 million shares issued and outstanding, respectively | 4 | 4 |
Additional paid-in capital | 163,898 | 152,993 |
Accumulated other comprehensive income | 14 | 14 |
Accumulated deficit | (126,442) | (124,596) |
Total stockholders’ equity | 37,474 | 28,415 |
Total liabilities and stockholders’ equity | $ 85,745 | $ 80,611 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - $ / shares | Oct. 31, 2020 | Jan. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 22,700,000 | 21,700,000 |
Common stock, shares outstanding | 22,700,000 | 21,700,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Revenue: | ||||
Total revenue | $ 42,967 | $ 39,595 | $ 124,685 | $ 110,945 |
Cost of revenue: | ||||
Total cost of revenue | 16,280 | 17,555 | 47,321 | 46,152 |
Gross profit | 26,687 | 22,040 | 77,364 | 64,793 |
Operating expenses: | ||||
Sales and marketing | 13,158 | 13,205 | 37,383 | 37,498 |
Research and development | 8,955 | 10,639 | 26,851 | 29,118 |
General and administrative | 5,096 | 5,136 | 15,346 | 15,416 |
Total operating expenses | 27,209 | 28,980 | 79,580 | 82,032 |
Loss from operations | (522) | (6,940) | (2,216) | (17,239) |
Interest and other income, net | 109 | 128 | 370 | 666 |
Loss before income taxes | (413) | (6,812) | (1,846) | (16,573) |
Income tax benefit | 28 | 66 | ||
Net loss | $ (413) | $ (6,784) | $ (1,846) | $ (16,507) |
Net loss per share of common stock: | ||||
Basic and diluted | $ (0.02) | $ (0.32) | $ (0.08) | $ (0.79) |
Weighted-average shares of common stock outstanding: | ||||
Basic and diluted | 22,531,047 | 21,274,285 | 22,222,659 | 20,872,253 |
Subscription and services | ||||
Revenue: | ||||
Total revenue | $ 39,633 | $ 36,489 | $ 115,749 | $ 102,070 |
Cost of revenue: | ||||
Total cost of revenue | 11,366 | 11,093 | 34,322 | 32,117 |
Product and other | ||||
Revenue: | ||||
Total revenue | 3,334 | 3,106 | 8,936 | 8,875 |
Cost of revenue: | ||||
Total cost of revenue | $ 4,914 | $ 6,462 | $ 12,999 | $ 14,035 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (1,846) | $ (16,507) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Stock-based compensation expense | 9,219 | 9,647 |
Depreciation and amortization of capital expenditures | 2,131 | 1,976 |
Amortization of intangible assets | 978 | 900 |
Non-cash operating lease expense | 2,391 | 1,365 |
Non-cash restructuring charges | 1,603 | |
Other | 41 | (79) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (399) | (289) |
Inventories and deferred inventory costs | (1,368) | (644) |
Prepaid expenses and other assets | (4,873) | (3,645) |
Accounts payable and other liabilities | (4,541) | (1,438) |
Deferred revenue | 431 | 329 |
Net cash provided by (used in) operating activities | 2,164 | (6,782) |
Cash flows from investing activities: | ||
Purchases of short-term investments | (15,804) | (31,236) |
Proceeds from maturities and sales of short-term investments | 18,111 | 42,996 |
Capital expenditures | (2,281) | (2,384) |
Business acquisition, net of cash assumed | (7,073) | |
Net cash provided by investing activities | 26 | 2,303 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 2,820 | 2,740 |
Payment of acquisition-related holdback | (420) | |
Net cash provided by financing activities | 1,641 | 797 |
Net increase (decrease) in cash and cash equivalents | 3,831 | (3,682) |
Cash and cash equivalents at beginning of period | 11,680 | 15,370 |
Cash and cash equivalents at end of period | 15,511 | 11,688 |
Restricted Stock Units (RSUs) | ||
Cash flows from financing activities: | ||
Shares repurchased for tax withholdings on vesting of restricted stock units ("RSU") | $ (1,179) | $ (1,523) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common stock and APIC | [1] | AOCI | [2] | Accumulated Deficit |
BALANCE at Jan. 31, 2019 | $ 33,047 | $ 138,852 | $ (10) | $ (105,795) | ||
Issuance of common stock under equity-based plans | 1,454 | 1,454 | ||||
Shares repurchased for tax withholdings on RSU vesting | (730) | (730) | ||||
Stock-based compensation | 2,982 | 2,982 | ||||
Changes in comprehensive income | 11 | 11 | ||||
Net loss | (4,740) | (4,740) | ||||
BALANCE at Apr. 30, 2019 | 32,024 | 142,558 | 1 | (110,535) | ||
BALANCE at Jan. 31, 2019 | 33,047 | 138,852 | (10) | (105,795) | ||
Net loss | (16,507) | |||||
BALANCE at Oct. 31, 2019 | 27,428 | 149,716 | 14 | (122,302) | ||
BALANCE at Apr. 30, 2019 | 32,024 | 142,558 | 1 | (110,535) | ||
Issuance of common stock under equity-based plans | 354 | 354 | ||||
Stock-based compensation | 3,411 | 3,411 | ||||
Changes in comprehensive income | 5 | 5 | ||||
Net loss | (4,983) | (4,983) | ||||
BALANCE at Jul. 31, 2019 | 30,811 | 146,323 | 6 | (115,518) | ||
Issuance of common stock under equity-based plans | 932 | 932 | ||||
Shares repurchased for tax withholdings on RSU vesting | (793) | (793) | ||||
Stock-based compensation | 3,254 | 3,254 | ||||
Changes in comprehensive income | 8 | 8 | ||||
Net loss | (6,784) | (6,784) | ||||
BALANCE at Oct. 31, 2019 | 27,428 | 149,716 | 14 | (122,302) | ||
BALANCE at Jan. 31, 2020 | 28,415 | 152,997 | 14 | (124,596) | ||
Issuance of common stock under equity-based plans | 1,311 | 1,311 | ||||
Shares repurchased for tax withholdings on RSU vesting | (472) | (472) | ||||
Stock-based compensation | 3,008 | 3,008 | ||||
Changes in comprehensive income | 12 | 12 | ||||
Net loss | (1,066) | (1,066) | ||||
BALANCE at Apr. 30, 2020 | 31,208 | 156,844 | 26 | (125,662) | ||
BALANCE at Jan. 31, 2020 | 28,415 | 152,997 | 14 | (124,596) | ||
Net loss | (1,846) | |||||
BALANCE at Oct. 31, 2020 | 37,474 | 163,902 | 14 | (126,442) | ||
BALANCE at Apr. 30, 2020 | 31,208 | 156,844 | 26 | (125,662) | ||
Issuance of common stock under equity-based plans | 635 | 635 | ||||
Shares repurchased for tax withholdings on RSU vesting | (350) | (350) | ||||
Stock-based compensation | 3,090 | 3,090 | ||||
Changes in comprehensive income | (3) | (3) | ||||
Net loss | (367) | (367) | ||||
BALANCE at Jul. 31, 2020 | 34,213 | 160,219 | 23 | (126,029) | ||
Issuance of common stock under equity-based plans | 919 | 919 | ||||
Shares repurchased for tax withholdings on RSU vesting | (357) | (357) | ||||
Stock-based compensation | 3,121 | 3,121 | ||||
Changes in comprehensive income | (9) | (9) | ||||
Net loss | (413) | (413) | ||||
BALANCE at Oct. 31, 2020 | $ 37,474 | $ 163,902 | $ 14 | $ (126,442) | ||
[1] | Additional paid-in capital | |||||
[2] | Accumulated other comprehensive income (loss) |
Overview and Basis of Presentat
Overview and Basis of Presentation | 9 Months Ended |
Oct. 31, 2020 | |
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”) create new communications experiences for businesses and consumers, delivered from its smart cloud-based software-as-a-service (“SaaS”) and unified-communications-as-a-service (“UCaaS”) platforms. The Company is headquartered in Sunnyvale, California. Fiscal Year. The Company’s fiscal year ends on January 31. References to fiscal 2021 and fiscal 2020 refer to the fiscal year ending January 31, 2021 and the fiscal year ended January 31, 2020, respectively. Principles of Presentation and Consolidation These unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2020 (“Annual Report”). These financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect The condensed consolidated financial statements include accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation. Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the Company’s condensed consolidated financial statements and notes thereto. Significant estimates include, but are not limited to, those related to revenue recognition, inventory valuation, deferred commissions, valuation of goodwill and intangible assets, operating lease assets and liabilities, regulatory fees and indirect tax accruals, loss contingencies, stock-based compensation, income taxes (including valuation allowances) and fair value measurements. The Company bases its estimates and assumptions on historical experience, where applicable, and other factors that it believes to be reasonable under the circumstances, including but not limited to the potential impacts arising from the COVID-19 pandemic. These estimates are based on information available as of the date of the condensed consolidated financial statements, and assumptions are inherently subjective in nature. Therefore, actual results could differ from management’s estimates. Significant Accounting Policies. The Company’s significant accounting policies are disclosed in its Annual Report. Comprehensive Loss. For all periods presented, comprehensive loss approximated net loss in the condensed consolidated statements of operations and differences were not material. Therefore, the condensed consolidated statements of comprehensive loss have been omitted. Adopted Accounting Standards Financial Instruments-Credit Losses . On February 1, 2020, the Company adopted Accounting Standard Update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments , which replaced the legacy incurred loss impairment model with an expected credit loss model. The Company’s accounts receivable, convertible note receivable and available-for-sale debt securities are subject to this standard. The standard was adopted using the modified retrospective transition method, with no adjustment to accumulated deficit. Adoption did not have a material impact on the Company’s condensed consolidated financial statements and related disclosures. The Company will continue to actively monitor the impact of the COVID-19 pandemic on its estimate of expected credit losses. Fair Value Measurement. On February 1, 2020, the Company adopted ASU 2018-13 , Changes to Disclosure Requirements for Fair Value Measurements (Topic 820), which improved the effectiveness of disclosure requirements for recurring and nonrecurring fair value measurements. The standard removes, modifies, and adds certain disclosure requirements. Adoption did not have an impact on the Company’s condensed consolidated financial statements and related disclosures. Accounting Standards Not Yet Adopted Income Taxes. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) : Simplifying the Accounting for Income Taxes , which simplifies certain aspects of the accounting for income taxes as well as clarifies and amends existing guidance to improve consistent application. The amendment is effective for the Company beginning fiscal 2022. The Company is evaluating the effect of adopting this new guidance, but does not expect adoption will have a material impact on its consolidated financial statements. |
Revenue and Deferred Revenue
Revenue and Deferred Revenue | 9 Months Ended |
Oct. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue and Deferred Revenue | Note 2: Revenue and Deferred Revenue The Company’s revenue is presented in accordance with the provisions under Topic 606. The Company derives its revenue from two sources: Subscription and Services Revenue is derived primarily 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. Product and Other Revenue is generated from the sale of on-premise appliances and end-point devices, including shipping and handling fees for direct customers, and to a lesser extent from porting fees that enable customers to transfer their existing phone numbers. The Company recognizes revenue from sales to direct end-customers and channel partners at the point-in-time that control transfers, which is typically when it delivers the product or when all customer contractual provisions have been met, if any. Revenue disaggregated by revenue source consisted of the following (in thousands): Three Months Ended Nine Months Ended October 31, 2020 October 31, 2019 October 31, 2020 October 31, 2019 Subscription and services revenue $ 39,633 $ 36,489 $ 115,749 $ 102,070 Product and other revenue 3,334 3,106 8,936 8,875 Total revenue $ 42,967 $ 39,595 $ 124,685 $ 110,945 The Company derived approximately 54% and 55% of its total revenue from Ooma Residential and approximately 44% and 42% from Ooma Business for the three months ended October 31, 2020 and 2019, respectively. The Company derived approximately 54% and 59% of its total revenue from Ooma Residential and approximately 43% and 38% from Ooma Business for the nine months ended October 31, 2020 and 2019, 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. Customers who represented 10% or more of the Company’s net accounts receivable balance were as follows: As of October 31, 2020 January 31, 2020 Customer A 11 % * Customer B 10 % * * Less than 10% of net accounts receivable for the period indicated. 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. Deferred revenue consisted of the following (in thousands): As of October 31, 2020 January 31, 2020 Subscription and services $ 16,333 $ 15,892 Product and other 69 79 Total deferred revenue $ 16,402 15,971 Less: current deferred revenue 16,313 15,797 Non-current deferred revenue included in other long-term liabilities $ 89 $ 174 During the three and nine months ended October 31, 2020, the Company recognized revenue of approximately $2.2 million and $14.5 million, respectively, pertaining to amounts deferred as of January 31, 2020. As of October 31, 2020, the Company’s deferred revenue balance was primarily composed of subscription contracts that were invoiced during the first nine months of fiscal 2021, as well as amounts recorded during fiscal 2020 for annual contracts. Remaining Performance Obligations. As of October 31, 2020, contract revenue that has not yet been recognized for open contracts with an original expected length of greater than one year was approximately $8.2 million. The Company expects to recognize revenue on approximately 51% of this amount over the next 12 months, with the balance to be recognized thereafter |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 3: Fair Value Measurements The Company records its financial assets and liabilities at fair value. The Company estimates and categorizes fair value 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 Company’s financial assets that are measured at fair value on a recurring basis by level within the fair value hierarchy were as follows (in thousands): Balance as of October 31, 2020 Balance as of January 31, 2020 Level 1 Level 2 Total Level 1 Level 2 Total Cash and cash equivalents: Money market funds $ 1,158 $ — $ 1,158 $ 4,822 $ — $ 4,822 U.S. treasury securities 1,000 — 1,000 — — — Corporate debt securities — 250 250 — — — Total cash equivalents $ 2,158 $ 250 $ 2,408 $ 4,822 $ — $ 4,822 Cash 13,103 6,858 Total cash and cash equivalents $ 15,511 $ 11,680 Short-term investments: U.S. treasury securities $ 9,010 $ — $ 9,010 $ 4,492 $ — $ 4,492 Corporate debt securities — 1,517 1,517 — 3,504 3,504 U.S. agency securities — 1,000 1,000 — — — Commercial paper — 275 275 — 5,482 5,482 Asset-backed securities — 303 303 — 906 906 Total short-term investments $ 9,010 $ 3,095 $ 12,105 $ 4,492 $ 9,892 $ 14,384 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. At October 31, 2020 and January 31, 2020, cash equivalents and short-term investments approximated their fair value and there were no material realized or unrealized gains or losses, either individually or in the aggregate. The Company had no Level 3 assets or liabilities for the periods presented. The contractual maturities of short-term investments were as follows (in thousands): As of October 31, 2020 January 31, 2020 Due in one year or less $ 12,105 $ 13,145 Due after one year to two years — 1,239 Total $ 12,105 $ 14,384 |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Oct. 31, 2020 | |
Balance Sheet Components [Abstract] | |
Balance Sheet Components | Note 4 : Balance Sheet Components The following sections and tables provide details of selected balance sheet items (in thousands): Inventories As of October 31, 2020 January 31, 2020 Finished goods $ 8,787 $ 6,988 Raw materials 1,446 1,381 Total inventory $ 10,233 $ 8,369 Acquired intangible assets As of October 31, 2020 January 31, 2020 Customer relationships $ 5,081 $ 5,841 Developed technology 471 622 Trade names 287 355 Total intangible assets $ 5,839 $ 6,818 Amortization expense for acquired intangible assets was $0.3 million and $0.4 million for the three months ended October 31, 2020 and 2019, respectively, and $1.0 million and $0.9 million for the nine months ended October 31, 2020 and 2019, respectively. Other assets As of October 31, 2020 January 31, 2020 Prepaid expenses $ 4,337 $ 2,739 Deferred sales commissions, current 4,184 2,525 Convertible note receivable, including accrued interest 1,566 1,453 Deferred inventory costs 371 867 Other current assets 124 1,408 Total other current assets $ 10,582 $ 8,992 Deferred sales commissions, non-current $ 10,293 $ 7,412 Other non-current assets 682 774 Total other non-current assets $ 10,975 $ 8,186 Deferred Sales Commissions . Amortization expense for deferred sales commissions was $1.0 million and $0.6 million for the three months ended October 31, 2020 and 2019, respectively, and $2.7 million and $1.4 million for the nine months ended October 31, 2020 and 2019, respectively. To date, there have been no material impairment losses related to the costs capitalized . Global In December 2018, the Company invested $1.3 million in cash to Global Telecomm Corporation (“GTC”), a small privately-held technology company, in exchange for an 18-month convertible promissory note, bearing interest at 10% annually, that will convert to shares of GTC common or preferred stock upon the occurrence of certain future events. During the second quarter of fiscal 2021, the Company executed an amended agreement with GTC that extended the maturity date of the convertible promissory note by nine months from June 30, 2020 to March 31, 2021. The Company has partnered with GTC on certain research and development and inventory procurement activities. GTC is considered a variable interest entity (“VIE”) for accounting purposes. However, the Company is not required to consolidate GTC into its financial statements because the Company is not the primary beneficiary. For the periods presented, the Company’s maximum exposure to loss was equal to the carrying value of its convertible note receivable and associated interest receivable . The Company has no other variable interests in VIEs. GTC is a related party of Ooma as a result of the convertible note. As of October 31, 2020 and January 31, 2020, the Company recorded inventory prepayments to GTC of $0.7 million and $0.5 million, respectively, included in other current assets on the consolidated balance sheet. As of October 31, 2020 and January 31, 2020, the Company’s non-cancelable purchase commitments with GTC were zero and $2.2 million, respectively. Accrued expenses and other current liabilities As of October 31, 2020 January 31, 2020 Payroll and related expenses $ 8,909 $ 8,942 Regulatory fees and taxes 4,675 4,777 Short-term operating lease liabilities 3,864 3,263 Customer sales incentives 1,021 1,293 Other 2,962 4,301 Total accrued expenses $ 21,431 $ 22,576 |
Operating Leases
Operating Leases | 9 Months Ended |
Oct. 31, 2020 | |
Leases [Abstract] | |
Operating Leases | Note 5: Operating Leases The Company leases its headquarters located in Sunnyvale, California, as well as office and data center space in various locations under non-cancelable operating lease agreements. Supplemental balance sheet information related to leases was as follows (in thousands): As of October 31, 2020 January 31, 2020 Assets Operating lease right-of-use assets $ 6,209 $ 8,057 Total leased assets $ 6,209 $ 8,057 Liabilities Short-term operating lease liabilities $ 3,864 $ 3,263 Long-term operating lease liabilities 3,029 5,150 Total lease liabilities $ 6,893 $ 8,413 Operating lease right-of-use assets and long-term operating lease liabilities are included on the face of the condensed consolidated balance sheet. Short-term operating lease liabilities are included in other current liabilities. The Company incurred total lease costs in its consolidated statements of operations of $1.2 million and $1.0 million for the three months ended October 31, 2020 and 2019, respectively, and $3.7 million and $2.7 million for the nine months ended October 31, 2020 and 2019, respectively. Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended Nine Months Ended October 31, 2020 October 31, 2019 October 31, 2020 October 31, 2019 Cash payments for operating leases $ 964 $ 534 $ 2,370 $ 1,587 Right-of-use assets recognized in exchange for new operating lease obligations $ 250 $ 1,492 $ 553 $ 1,612 As of October 31, 2020, maturities of lease liabilities under non-cancelable operating leases were as follows (in thousands): Fiscal Years Ending January 31, October 31, 2020 2021 - remainder of fiscal year $ 978 2022 3,950 2023 1,654 2024 492 2025 200 Total lease payments 7,274 Less: imputed interest (381 ) Present value of lease liabilities $ 6,893 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Oct. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Note 6: Stockholders’ Equity The Company has a stock-based compensation plan pursuant to which it has granted stock options and RSUs. The Company also maintains its 2015 Employee Stock Purchase Plan (the “ESPP”) for all eligible employees. Stock Options. Stock option activity for the nine months ended October 31, 2020 was as follows: Weighted Average Aggregate Shares Exercise Price Intrinsic Value (in thousands) Per Share (in thousands) Balance as of January 31, 2020 1,416 $ 7.35 $ 8,530 Granted 133 $ 10.61 Exercised (141 ) $ 5.51 Canceled (9 ) $ 3.82 Balance as of October 31, 2020 1,399 $ 7.86 $ 8,906 Vested and exercisable as of October 31, 2020 1,187 $ 7.14 $ 8,373 The aggregate intrinsic value of vested options exercised during the nine months ended October 31, 2020 and 2019 was $ 1.1 million and $1.9 million, respectively. The weighted average grant date fair value of options granted during the nine months ended October 31, 2020 and 2019 was $ 4.72 and $7.13 per share, respectively. Restricted Stock Units. RSU activity for the nine months ended October 31, 2020 was as follows: Shares (in thousands) Weighted Average Grant-Date Fair Value Per Share Balance as of January 31, 2020 1,657 $ 12.82 Granted 758 $ 10.97 Vested (701 ) $ 11.67 Canceled (57 ) $ 13.05 Balance as of October 31, 2020 1,657 $ 12.46 Employee Stock Purchase Plan. During each of the nine months ended October 31, 2020 and 2019, employees purchased 0.2 million shares at a weighted purchase price o f $9.98 and $9.97 per share, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Oct. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 7: Stock-Based Compensation Total stock-based compensation recognized for stock-based awards in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended Nine Months Ended October 31, 2020 October 31, 2019 October 31, 2020 October 31, 2019 Cost of revenue $ 252 $ 335 $ 765 $ 964 Sales and marketing 478 511 1,444 1,480 Research and development 1,095 1,153 3,220 3,487 General and administrative 1,296 1,255 3,790 3,716 Total stock-based compensation expense $ 3,121 $ 3,254 $ 9,219 $ 9,647 As of October 31, 2020, there was $21.5 . |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8: Income Taxes The Company recorded no income tax expense or benefit during the three and nine months ended October 31, 2020. The Company recorded income tax benefits of $28,000 and $66,000 during the three and nine months ended October 31, 2019, respectively, primarily associated with state taxes and the Company’s acquisition of Voxter in March 2018. The Company continues to maintain a full valuation allowance against its deferred tax assets. As of October 31, 2020, the Company had unrecognized tax benefits of $7.2 million, none of which would currently affect the Company's effective tax rate if recognized due to the Company's deferred tax assets being fully offset by a valuation allowance. The Company does not anticipate that the amount of unrecognized tax benefits relating to tax positions existing at October 31, 2020 will significantly increase or decrease within the next twelve months. There were no interest expense or penalties related to unrecognized tax benefits recorded through October 31, 2020. A number of years may elapse before an uncertain tax position is audited and finally resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, the Company believes that its reserves for income taxes reflect the most likely outcome. The Company adjusts these reserves, as well as the related interest, in light of changing facts and circumstances. Settlement of any particular position could require the use of cash. On March 27, 2020, the “Coronavirus Aid, Relief and Economic Security (CARES) Act” was signed into law. The CARES Act included provisions relating to refundable payroll tax credits, deferment of the employer portion of certain payroll taxes, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. These provisions are not expected to have a material effect on the Company’s consolidated financial statements. |
Basic and Diluted Net Loss Per
Basic and Diluted Net Loss Per Share | 9 Months Ended |
Oct. 31, 2020 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Loss Per Share | Note 9: Basic and Diluted Net Loss Per Share Basic and diluted net loss per share is calculated by dividing the net loss 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 of common stock because the effects of potentially dilutive securities are antidilutive as the Company reported net losses for all periods presented. The following table sets forth the computation of the Company’s basic and diluted net loss per share of common stock (in thousands, except share and per share data): Three Months Ended Nine Months Ended October 31, 2020 October 31, 2019 October 31, 2020 October 31, 2019 Numerator Net loss $ (413 ) $ (6,784 ) $ (1,846 ) $ (16,507 ) Denominator Weighted-average common shares 22,531,047 21,274,285 22,222,659 20,872,253 Basic and diluted net loss per share $ (0.02 ) $ (0.32 ) $ (0.08 ) $ (0.79 ) Potentially dilutive securities of approximately 3.4 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10: Commitments and Contingencies Purchase Commitments . As of October 31, 2020 and January 31, 2020, non-cancelable purchase commitments with the Company’s contract manufacturers and other parties were $4.4 million and $4.0 million, respectively. 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 October 31, 2020, the Company did not have any accrued liabilities recorded for loss contingencies in its consolidated financial statements . Deep Green Wireless Litigation On June 8, 2016, plaintiff Deep Green Wireless LLC (“Deep Green”) filed a complaint in the U.S. District Court for the Eastern District of Texas against Ooma, Inc., alleging infringement of U.S. Patent No. RE42,714 (the “Deep Green Wireless Patent”, and such litigation, the “Deep Green Wireless Litigation ”). The complaint sought unspecified monetary damages, costs, attorneys’ fees and other appropriate relief. On July 20, 2020, the U.S. District Court for the Northern District of California dismissed the Deep Green Wireless Litigation with prejudice as to Deep Green’s claims against the Company. Oregon Tax Litigation On August 30, 2016, the Oregon Department of Revenue (the “DOR”) issued tax assessments against the Company for the Oregon Emergency Communications Tax (the “Tax”), which the DOR alleges Ooma should have collected from its subscribers in Oregon and remitted to the DOR during the period between January 1, 2013 and March 31, 2016 (collectively, the “Assessments”). The Company believes that the Commerce Clause of the United States Constitution bars the application of the Tax and the Assessments to the Company, since the Company has no employees, property or other indicia of a “substantial nexus” with the State of Oregon. On March 2, 2020, Oregon Tax Court issued a decision upholding the Assessments. On April 1, 2020, the Company filed a Notice of Appeal with the Supreme Court of the State of Oregon. However, litigation is unpredictable and there can be no assurances that the Company will obtain a favorable final outcome or that it will be able to avoid further unfavorable interim rulings in the course of litigation that may significantly add to the expense of its defense and could result in substantial costs and diversion of resources. Through January 31, 2020, the Company recorded and paid cumulative charges of $0.6 million as its best estimate of probable loss related to the Assessments. No additional charges were recorded during the nine months ended October 31, 2020. 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 losses suffered or incurred by the indemnified party, in connection with any trade secret, copyright, patent or other intellectual property infringement claim by any third party with respect to the Company’s technology. The term of these indemnification agreements is generally 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. |
Overview and Basis of Present_2
Overview and Basis of Presentation (Policies) | 9 Months Ended |
Oct. 31, 2020 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year. The Company’s fiscal year ends on January 31. References to fiscal 2021 and fiscal 2020 refer to the fiscal year ending January 31, 2021 and the fiscal year ended January 31, 2020, respectively. |
Principles of Presentation and Consolidation | Principles of Presentation and Consolidation These unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2020 (“Annual Report”). These financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect The condensed consolidated financial statements include accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation. |
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 Company’s condensed consolidated financial statements and notes thereto. Significant estimates include, but are not limited to, those related to revenue recognition, inventory valuation, deferred commissions, valuation of goodwill and intangible assets, operating lease assets and liabilities, regulatory fees and indirect tax accruals, loss contingencies, stock-based compensation, income taxes (including valuation allowances) and fair value measurements. The Company bases its estimates and assumptions on historical experience, where applicable, and other factors that it believes to be reasonable under the circumstances, including but not limited to the potential impacts arising from the COVID-19 pandemic. These estimates are based on information available as of the date of the condensed consolidated financial statements, and assumptions are inherently subjective in nature. Therefore, actual results could differ from management’s estimates. |
Significant Accounting Policies | Significant Accounting Policies. The Company’s significant accounting policies are disclosed in its Annual Report. |
Comprehensive Loss | Comprehensive Loss. For all periods presented, comprehensive loss approximated net loss in the condensed consolidated statements of operations and differences were not material. Therefore, the condensed consolidated statements of comprehensive loss have been omitted. |
Adopted Accounting Standards | Adopted Accounting Standards Financial Instruments-Credit Losses . On February 1, 2020, the Company adopted Accounting Standard Update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments , which replaced the legacy incurred loss impairment model with an expected credit loss model. The Company’s accounts receivable, convertible note receivable and available-for-sale debt securities are subject to this standard. The standard was adopted using the modified retrospective transition method, with no adjustment to accumulated deficit. Adoption did not have a material impact on the Company’s condensed consolidated financial statements and related disclosures. The Company will continue to actively monitor the impact of the COVID-19 pandemic on its estimate of expected credit losses. Fair Value Measurement. On February 1, 2020, the Company adopted ASU 2018-13 , Changes to Disclosure Requirements for Fair Value Measurements (Topic 820), which improved the effectiveness of disclosure requirements for recurring and nonrecurring fair value measurements. The standard removes, modifies, and adds certain disclosure requirements. Adoption did not have an impact on the Company’s condensed consolidated financial statements and related disclosures. |
Accounting Standards Not Yet Adopted | Accounting Standards Not Yet Adopted Income Taxes. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) : Simplifying the Accounting for Income Taxes , which simplifies certain aspects of the accounting for income taxes as well as clarifies and amends existing guidance to improve consistent application. The amendment is effective for the Company beginning fiscal 2022. The Company is evaluating the effect of adopting this new guidance, but does not expect adoption will have a material impact on its consolidated financial statements. |
Revenue and Deferred Revenue (T
Revenue and Deferred Revenue (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Revenue Disaggregated by Revenue Source | Revenue disaggregated by revenue source consisted of the following (in thousands): Three Months Ended Nine Months Ended October 31, 2020 October 31, 2019 October 31, 2020 October 31, 2019 Subscription and services revenue $ 39,633 $ 36,489 $ 115,749 $ 102,070 Product and other revenue 3,334 3,106 8,936 8,875 Total revenue $ 42,967 $ 39,595 $ 124,685 $ 110,945 |
Concentration of Net Accounts Receivable Balance | Customers who represented 10% or more of the Company’s net accounts receivable balance were as follows: As of October 31, 2020 January 31, 2020 Customer A 11 % * Customer B 10 % * * Less than 10% of net accounts receivable for the period indicated. |
Components of Deferred Revenue | Deferred revenue consisted of the following (in thousands): As of October 31, 2020 January 31, 2020 Subscription and services $ 16,333 $ 15,892 Product and other 69 79 Total deferred revenue $ 16,402 15,971 Less: current deferred revenue 16,313 15,797 Non-current deferred revenue included in other long-term liabilities $ 89 $ 174 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities at Fair Value | The Company’s financial assets that are measured at fair value on a recurring basis by level within the fair value hierarchy were as follows (in thousands): Balance as of October 31, 2020 Balance as of January 31, 2020 Level 1 Level 2 Total Level 1 Level 2 Total Cash and cash equivalents: Money market funds $ 1,158 $ — $ 1,158 $ 4,822 $ — $ 4,822 U.S. treasury securities 1,000 — 1,000 — — — Corporate debt securities — 250 250 — — — Total cash equivalents $ 2,158 $ 250 $ 2,408 $ 4,822 $ — $ 4,822 Cash 13,103 6,858 Total cash and cash equivalents $ 15,511 $ 11,680 Short-term investments: U.S. treasury securities $ 9,010 $ — $ 9,010 $ 4,492 $ — $ 4,492 Corporate debt securities — 1,517 1,517 — 3,504 3,504 U.S. agency securities — 1,000 1,000 — — — Commercial paper — 275 275 — 5,482 5,482 Asset-backed securities — 303 303 — 906 906 Total short-term investments $ 9,010 $ 3,095 $ 12,105 $ 4,492 $ 9,892 $ 14,384 |
Schedule of Contractual Maturities of Short-term Investments | The contractual maturities of short-term investments were as follows (in thousands): As of October 31, 2020 January 31, 2020 Due in one year or less $ 12,105 $ 13,145 Due after one year to two years — 1,239 Total $ 12,105 $ 14,384 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Balance Sheet Components [Abstract] | |
Components of Inventories | The following sections and tables provide details of selected balance sheet items (in thousands): Inventories As of October 31, 2020 January 31, 2020 Finished goods $ 8,787 $ 6,988 Raw materials 1,446 1,381 Total inventory $ 10,233 $ 8,369 |
Components of Acquired Intangible Assets | Acquired intangible assets As of October 31, 2020 January 31, 2020 Customer relationships $ 5,081 $ 5,841 Developed technology 471 622 Trade names 287 355 Total intangible assets $ 5,839 $ 6,818 |
Components of Other Assets | Other assets As of October 31, 2020 January 31, 2020 Prepaid expenses $ 4,337 $ 2,739 Deferred sales commissions, current 4,184 2,525 Convertible note receivable, including accrued interest 1,566 1,453 Deferred inventory costs 371 867 Other current assets 124 1,408 Total other current assets $ 10,582 $ 8,992 Deferred sales commissions, non-current $ 10,293 $ 7,412 Other non-current assets 682 774 Total other non-current assets $ 10,975 $ 8,186 |
Components of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities As of October 31, 2020 January 31, 2020 Payroll and related expenses $ 8,909 $ 8,942 Regulatory fees and taxes 4,675 4,777 Short-term operating lease liabilities 3,864 3,263 Customer sales incentives 1,021 1,293 Other 2,962 4,301 Total accrued expenses $ 21,431 $ 22,576 |
Operating Leases (Tables)
Operating Leases (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
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 October 31, 2020 January 31, 2020 Assets Operating lease right-of-use assets $ 6,209 $ 8,057 Total leased assets $ 6,209 $ 8,057 Liabilities Short-term operating lease liabilities $ 3,864 $ 3,263 Long-term operating lease liabilities 3,029 5,150 Total lease liabilities $ 6,893 $ 8,413 |
Summary of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended Nine Months Ended October 31, 2020 October 31, 2019 October 31, 2020 October 31, 2019 Cash payments for operating leases $ 964 $ 534 $ 2,370 $ 1,587 Right-of-use assets recognized in exchange for new operating lease obligations $ 250 $ 1,492 $ 553 $ 1,612 |
Summary of Maturities of Lease Liabilities Under Non-cancelable Operating Leases | As of October 31, 2020, maturities of lease liabilities under non-cancelable operating leases were as follows (in thousands): Fiscal Years Ending January 31, October 31, 2020 2021 - remainder of fiscal year $ 978 2022 3,950 2023 1,654 2024 492 2025 200 Total lease payments 7,274 Less: imputed interest (381 ) Present value of lease liabilities $ 6,893 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Equity [Abstract] | |
Summarizes of Stock Option Activities | Stock option activity for the nine months ended October 31, 2020 was as follows: Weighted Average Aggregate Shares Exercise Price Intrinsic Value (in thousands) Per Share (in thousands) Balance as of January 31, 2020 1,416 $ 7.35 $ 8,530 Granted 133 $ 10.61 Exercised (141 ) $ 5.51 Canceled (9 ) $ 3.82 Balance as of October 31, 2020 1,399 $ 7.86 $ 8,906 Vested and exercisable as of October 31, 2020 1,187 $ 7.14 $ 8,373 |
Summarizes of Restricted Stock Units Activities | RSU activity for the nine months ended October 31, 2020 was as follows: Shares (in thousands) Weighted Average Grant-Date Fair Value Per Share Balance as of January 31, 2020 1,657 $ 12.82 Granted 758 $ 10.97 Vested (701 ) $ 11.67 Canceled (57 ) $ 13.05 Balance as of October 31, 2020 1,657 $ 12.46 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Total Stock-Based Compensation Recognized for Stock-Based Awards in Condensed Consolidated Statements of Operations | Total stock-based compensation recognized for stock-based awards in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended Nine Months Ended October 31, 2020 October 31, 2019 October 31, 2020 October 31, 2019 Cost of revenue $ 252 $ 335 $ 765 $ 964 Sales and marketing 478 511 1,444 1,480 Research and development 1,095 1,153 3,220 3,487 General and administrative 1,296 1,255 3,790 3,716 Total stock-based compensation expense $ 3,121 $ 3,254 $ 9,219 $ 9,647 |
Basic and Diluted Net Loss Pe_2
Basic and Diluted Net Loss Per Share (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss Per Share of Common Stock | The following table sets forth the computation of the Company’s basic and diluted net loss per share of common stock (in thousands, except share and per share data): Three Months Ended Nine Months Ended October 31, 2020 October 31, 2019 October 31, 2020 October 31, 2019 Numerator Net loss $ (413 ) $ (6,784 ) $ (1,846 ) $ (16,507 ) Denominator Weighted-average common shares 22,531,047 21,274,285 22,222,659 20,872,253 Basic and diluted net loss per share $ (0.02 ) $ (0.32 ) $ (0.08 ) $ (0.79 ) |
Revenue and Deferred Revenue -
Revenue and Deferred Revenue - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020USD ($) | Oct. 31, 2019 | Oct. 31, 2020USD ($)SourceCountryCustomer | Oct. 31, 2019CountryCustomer | |
Disaggregation Of Revenue [Line Items] | ||||
Number of sources of revenue | Source | 2 | |||
Number of countries outside United States represented 10% or more of total revenue | Country | 0 | 0 | ||
Number of customers that individually exceeded 10% of revenue | Customer | 0 | 0 | ||
Deferred revenue recognized | $ | $ 2.2 | $ 14.5 | ||
Ooma Residential | Revenue | ||||
Disaggregation Of Revenue [Line Items] | ||||
Concentration risk, percentage | 54.00% | 55.00% | 54.00% | 59.00% |
Ooma Business | Revenue | ||||
Disaggregation Of Revenue [Line Items] | ||||
Concentration risk, percentage | 44.00% | 42.00% | 43.00% | 38.00% |
Revenue and Deferred Revenue _2
Revenue and Deferred Revenue - Summary of Revenue Disaggregated by Revenue Source (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 42,967 | $ 39,595 | $ 124,685 | $ 110,945 |
Subscription and services revenue | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 39,633 | 36,489 | 115,749 | 102,070 |
Product and other revenue | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 3,334 | $ 3,106 | $ 8,936 | $ 8,875 |
Revenue and Deferred Revenue _3
Revenue and Deferred Revenue - Concentration of Net Accounts Receivable Balance (Details) - Accounts Receivable - Customer Concentration Risk | Oct. 31, 2020 |
Customer A | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 11.00% |
Customer B | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 10.00% |
Revenue and Deferred Revenue _4
Revenue and Deferred Revenue - Components of Deferred Revenue (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Jan. 31, 2020 |
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 16,402 | $ 15,971 |
Less: current deferred revenue | 16,313 | 15,797 |
Non-current deferred revenue included in other long-term liabilities | 89 | 174 |
Subscription and Services | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 16,333 | 15,892 |
Product and Other | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 69 | $ 79 |
Revenue and Deferred Revenue _5
Revenue and Deferred Revenue - Additional Information (Details 1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-11-01 $ in Millions | Oct. 31, 2020USD ($) |
Disaggregation Of Revenue [Line Items] | |
Revenue expected to be recognized from remaining performance obligations | $ 8.2 |
Revenue expected to be recognized from remaining performance obligations, percentage | 51.00% |
Revenue expected to be recognized from remaining performance obligations, period | 12 months |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets at Fair Value (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Jan. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | $ 15,511 | $ 11,680 |
Total short-term investments | 12,105 | 14,384 |
U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 9,010 | 4,492 |
Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 1,517 | 3,504 |
U.S. Agency Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 1,000 | |
Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 275 | 5,482 |
Asset-backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 303 | 906 |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 9,010 | 4,492 |
Level 1 | U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 9,010 | 4,492 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 3,095 | 9,892 |
Level 2 | Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 1,517 | 3,504 |
Level 2 | U.S. Agency Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 1,000 | |
Level 2 | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 275 | 5,482 |
Level 2 | Asset-backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 303 | 906 |
Cash | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 13,103 | 6,858 |
Cash Equivalents | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 2,408 | 4,822 |
Cash Equivalents | U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 1,000 | |
Cash Equivalents | Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 250 | |
Cash Equivalents | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 1,158 | 4,822 |
Cash Equivalents | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 2,158 | 4,822 |
Cash Equivalents | Level 1 | U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 1,000 | |
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 | 1,158 | $ 4,822 |
Cash Equivalents | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 250 | |
Cash Equivalents | Level 2 | Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | $ 250 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | Oct. 31, 2020 | Jan. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Fair value level asset and liability | $ 0 | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Contractual Maturities of Short-term Investments (Details) - Short-term Investments - USD ($) $ in Thousands | Oct. 31, 2020 | Jan. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | ||
Due in one year or less | $ 12,105 | $ 13,145 |
Due after one year to two years | 1,239 | |
Total | $ 12,105 | $ 14,384 |
Balance Sheet Components - Comp
Balance Sheet Components - Components of Inventories (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Jan. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 8,787 | $ 6,988 |
Raw materials | 1,446 | 1,381 |
Total inventory | $ 10,233 | $ 8,369 |
Balance Sheet Components - Co_2
Balance Sheet Components - Components of Acquired Intangible Assets (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Jan. 31, 2020 |
Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 5,839 | $ 6,818 |
Customer relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets | 5,081 | 5,841 |
Developed technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets | 471 | 622 |
Trade names | ||
Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 287 | $ 355 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2018 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Jan. 31, 2020 | |
Balance Sheet Components [Line Items] | ||||||
Amortization expense | $ 300,000 | $ 400,000 | $ 978,000 | $ 900,000 | ||
Amortization expense for deferred sales commissions | 1,000,000 | $ 600,000 | 2,700,000 | $ 1,400,000 | ||
Impairment loss in relation to deferred commission costs capitalized | 0 | |||||
Non-cancelable purchase commitments | 4,400,000 | 4,400,000 | $ 4,000,000 | |||
Global Telecomm Corporation | ||||||
Balance Sheet Components [Line Items] | ||||||
Inventory prepayments | 700,000 | 700,000 | 500,000 | |||
Non-cancelable purchase commitments | $ 0 | $ 0 | $ 2,200,000 | |||
Global Telecomm Corporation | Convertible Promissory Note | ||||||
Balance Sheet Components [Line Items] | ||||||
Investment in privately-held company | $ 1,300,000 | |||||
Convertible promissory note, maturity period | 18 months | |||||
Convertible promissory note, interest rate | 10.00% |
Balance Sheet Components - Co_3
Balance Sheet Components - Components of Other Assets (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Jan. 31, 2020 |
Other Assets [Abstract] | ||
Prepaid expenses | $ 4,337 | $ 2,739 |
Deferred sales commissions, current | 4,184 | 2,525 |
Convertible note receivable, including accrued interest | 1,566 | 1,453 |
Deferred inventory costs | 371 | 867 |
Other current assets | 124 | 1,408 |
Total other current assets | 10,582 | 8,992 |
Deferred sales commissions, non-current | 10,293 | 7,412 |
Other non-current assets | 682 | 774 |
Total other non-current assets | $ 10,975 | $ 8,186 |
Balance Sheet Components - Co_4
Balance Sheet Components - Components of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Jan. 31, 2020 |
Payables And Accruals [Abstract] | ||
Payroll and related expenses | $ 8,909 | $ 8,942 |
Regulatory fees and taxes | 4,675 | 4,777 |
Short-term operating lease liabilities | 3,864 | 3,263 |
Customer sales incentives | 1,021 | 1,293 |
Other | 2,962 | 4,301 |
Total accrued expenses | $ 21,431 | $ 22,576 |
Operating Leases - Additional I
Operating Leases - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Leases [Abstract] | ||||
Operating lease, description | The Company leases its headquarters located in Sunnyvale, California, as well as office and data center space in various locations under non-cancelable operating lease agreements. | |||
Lease costs | $ 1.2 | $ 1 | $ 3.7 | $ 2.7 |
Operating Leases - Summary of S
Operating Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Jan. 31, 2020 |
Assets | ||
Operating lease right-of-use assets | $ 6,209 | $ 8,057 |
Total leased assets | 6,209 | 8,057 |
Liabilities | ||
Short-term operating lease liabilities | 3,864 | 3,263 |
Long-term operating lease liabilities | 3,029 | 5,150 |
Total lease liabilities | $ 6,893 | $ 8,413 |
Operating Leases - Summary of_2
Operating Leases - Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Leases [Abstract] | ||||
Cash payments for operating leases | $ 964 | $ 534 | $ 2,370 | $ 1,587 |
Right-of-use assets recognized in exchange for new operating lease obligations | $ 250 | $ 1,492 | $ 553 | $ 1,612 |
Operating Leases - Summary of M
Operating Leases - Summary of Maturities of Lease Liabilities Under Non-cancelable Operating Leases (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Jan. 31, 2020 |
Operating Lease Liabilities Payments Due [Abstract] | ||
2021 - remainder of fiscal year | $ 978 | |
2022 | 3,950 | |
2023 | 1,654 | |
2024 | 492 | |
2025 | 200 | |
Total lease payments | 7,274 | |
Less: imputed interest | (381) | |
Present value of lease liabilities | $ 6,893 | $ 8,413 |
Stockholders' Equity - Summariz
Stockholders' Equity - Summarizes of Stock Option Activities (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Oct. 31, 2020USD ($)$ / sharesshares | |
Number of Shares | |
Shares, Beginning balance | shares | 1,416,000 |
Shares, Granted | shares | 133,000 |
Shares, Exercised | shares | (141,000) |
Shares, Canceled | shares | (9,000) |
Shares, Ending balance | shares | 1,399,000 |
Shares, Vested and exercisable | shares | 1,187,000 |
Weighted Average Exercise Price Per Share | |
Weighted Average Exercise Price Per Share, Beginning balance | $ / shares | $ 7.35 |
Weighted Average Exercise Price Per Share, Granted | $ / shares | 10.61 |
Weighted Average Exercise Price Per Share, Exercised | $ / shares | 5.51 |
Weighted Average Exercise Price Per Share, Canceled | $ / shares | 3.82 |
Weighted Average Exercise Price Per Share, Ending balance | $ / shares | 7.86 |
Weighted Average Exercise Price Per Share, Vested and exercisable | $ / shares | $ 7.14 |
Aggregate Intrinsic Value | |
Aggregate Intrinsic Value, Beginning balance | $ | $ 8,530 |
Aggregate Intrinsic Value, Ending balance | $ | 8,906 |
Aggregate Intrinsic Value, Vested and exercisable | $ | $ 8,373 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
ESPP | ||
Stockholders Equity Note Disclosure [Line Items] | ||
Number of shares of common stock issued under ESPP | 0.2 | 0.2 |
Weighted purchase price of shares of common stock under ESPP | $ 9.98 | $ 9.97 |
Stock Options | ||
Stockholders Equity Note Disclosure [Line Items] | ||
Aggregate intrinsic value of vested options exercised | $ 1.1 | $ 1.9 |
Weighted-average grant date fair value of options granted | $ 4.72 | $ 7.13 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summarizes of Restricted Stock Units Activities (Details) - Restricted Stock Units (RSUs) | 9 Months Ended |
Oct. 31, 2020$ / sharesshares | |
Number of Shares | |
Shares, RSUs Beginning Balance | shares | 1,657,000 |
Shares, Granted | shares | 758,000 |
Shares, Vested | shares | (701,000) |
Shares, Canceled | shares | (57,000) |
Shares, RSUs Ending Balance | shares | 1,657,000 |
Weighted Average Grant-Date Fair Value Per Share | |
Weighted Average Grant-Date Fair Value Per Share, Beginning Balance | $ / shares | $ 12.82 |
Weighted Average Grant-Date Fair Value Per Share, Granted | $ / shares | 10.97 |
Weighted Average Grant-Date Fair Value Per Share, Vested | $ / shares | 11.67 |
Weighted Average Grant-Date Fair Value Per Share, Canceled | $ / shares | 13.05 |
Weighted Average Grant-Date Fair Value Per Share, Ending Balance | $ / shares | $ 12.46 |
Stock-Based Compensation - Tota
Stock-Based Compensation - Total Stock-Based Compensation Recognized for Stock-Based Awards in Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 3,121 | $ 3,254 | $ 9,219 | $ 9,647 |
Cost of revenue | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 252 | 335 | 765 | 964 |
Sales and marketing | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 478 | 511 | 1,444 | 1,480 |
Research and development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 1,095 | 1,153 | 3,220 | 3,487 |
General and administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 1,296 | $ 1,255 | $ 3,790 | $ 3,716 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Millions | 24 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unrecognized share-based compensation expense related to unvested share-based awards | $ 21.5 | |
Scenario forecast | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based payment awards offering period | 2 years |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Income Tax [Line Items] | ||||
Income tax expense (benefit) | $ (28,000) | $ (66,000) | ||
Unrecognized tax benefits | $ 7,200,000 | $ 7,200,000 | ||
Interest expense or penalties related to unrecognized tax benefits | 0 | |||
Voxter Communications Inc | ||||
Income Tax [Line Items] | ||||
Income tax expense (benefit) | $ 0 | $ (28,000) | $ 0 | $ (66,000) |
Basic and Diluted Net Loss Pe_3
Basic and Diluted Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Numerator | ||||||||
Net loss | $ (413) | $ (367) | $ (1,066) | $ (6,784) | $ (4,983) | $ (4,740) | $ (1,846) | $ (16,507) |
Denominator | ||||||||
Weighted-average common shares | 22,531,047 | 21,274,285 | 22,222,659 | 20,872,253 | ||||
Basic and diluted net loss per share | $ (0.02) | $ (0.32) | $ (0.08) | $ (0.79) |
Basic and Diluted Net Loss Pe_4
Basic and Diluted Net Loss Per Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Earnings Per Share [Abstract] | ||||
Potentially dilutive securities excluded from the computation of diluted net loss per share | 3.4 | 3.5 | 3.4 | 3.5 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Oct. 31, 2020 | Jan. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Non-cancelable purchase commitments | $ 4,400,000 | $ 4,000,000 |
Accrued liabilities for loss contingencies | 0 | |
Cumulative charges of litigation loss | $ 0 | $ 600,000 |