OOMA - Earnings call transcript Q1 2019

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Operator

Good afternoon. My name is Chantal and I will be your conference operator today. At this time, I would like to welcome everyone to the Ooma First Quarter Fiscal 2019 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answer session. you. Thank Instructions] [Operator may conference. you begin Robison, your Matt

Matt Robison

Web Director Good is from to the closed our earnings the Nasdaq of And This available call here the press let today Robison, also call site GlobeNewswire. With a CEO, today, be at Corporate company's welcome CFO, live you me accessible ooma.com. also section via Web one Ravi is the is Ooma's events release will this Matt Ooma first link the for is least Stang Ooma, are active My issued day, IR webcast being of me market The Inc. This The and Investors page Development. call everyone. a on of name of -- of on Eric year. site. and quarter and and Ooma's presentations fiscal link release replay XXXX After Narula.

forward-looking executives During the course make Laws. Securities the of the our today's will of Federal meaning statements presentation, within

generally Forward-looking financial operating future or future or events to performance. relate statements

guidance to prepared the these measures materially by why beliefs and will that, a as These include and of non-GAAP revenue forward-looking is that or more stated Our statements financial measures The the release and the this press section in not the metrics disclosed events release statements to financial non-GAAP any on quarter risks businesses. any addition as those as hereof cause as our to this described comparable substitute disclaim forth today included a non-GAAP uncertainties well actual results measures to on discussion basis. considered a are intended call otherwise we'll available subject of be are matters present required measures non-GAAP expenses the and and financial obligation those call, this of projected. forward-looking and earnings Commission. information to our release us The in link and year fully this reconciliation site be discussed core non-GAAP date or we XXXX law. as regarding other and may give financial a available are on if the in included with to and not press for presentation on fiscal measures page or our basis. in financial expectations directly our not accordance based values note most The on are update be in for in than call GAAP Web in of Investor subscription cost includes non-GAAP full Please Also except in could our press we results in the to second actual financial filing, results from Securities and with isolation to those and site. differ GAAP. materialize our periods our X-K and a set filings risks the we key presentations Web that On issued -- Exchange in

Additionally non-GAAP our from to metrics. excluded provides investor that expenses non-GAAP presentation are slides resolution of reconciliation. It GAAP include also GAAP

FBR and Monica, during the despite California. in months on XX Xth Invitational several XX May Our Conference participation press our in Thursday, the Santa tomorrow Investor at release, conferences May including next Riley few B.

Okay, Eric.

Eric Stang

fiscal Ooma's once Hello QX, good year. call. start to to FY'XX Matt. achieved significant services revenue. this to we and I'm we welcome you, Thank growth pleased off In are report, earnings again in a QX subscription

and strength growth segment these in XX% I segment business growth are the and with in and growth model. services up our business core believe outstanding revenue rates services products, up reflect subscription year-over-year Our residential grew our XX% our XX%. of

three We of year them. major fiscal strategic on you to initiatives each I would like have and update this

a our Voxter Ooma year home acquisition office to UCaaS larger growth businesses and are to this and solution serve customer in new security the recent the integration camera. of to our capitalize fast fruition with of continue core Butterfleye base initiatives to custom our with sensors reminder, security bring on features solutions an As small our to business video

market a needs In businesses. usability we to One, market sales with this opportunity Ooma businesses we for Ooma and starting curated up not in to in that represent our Small and for sales meet others. yourself we growing a marketing marketing more expanded by in team QX, broad market is Ooma And ways. XX% efforts bring engine. is our the North investing by improvements America. office. by Office. the features, two, efforts and unique expand businesses easy, in R&D with addressable continued office designed believe growth Now that new Ooma our we is invested of will And installation of Office small custom features it do to vast our to or solution served two out the well

back have features want of year most to gain the Ooma this want them complete of several half we new we of we to that by the fiscal office, While to year. to in momentum middle add the

to small to elegant our Ooma ideal completing shift feature Office of the areas The we we key business. we these see needs is expect serving are for resources business. the businesses. to set of design remaining development And of power small into the believe the other introduced we close opportunity solution As for increasingly features, its

require starting a capitalize acquisition. feature recent any Voxter our Next UCaaS are on to for larger businesses size businesses now of along set we full with that really

customization for that extremely to fit this want draws platform’s UCaaS unserved these individual solutions. bespoke strategy In way, and namely market of custom on provide to well. customers an enhancement their companies Our easy intend serve we their to needs the our segment

have did from customers make solution. good of approach. received we our efforts we We progress the partners But grow are go-to-market our in feedback channel our building early and they this in value positive develop QX and days organization. And that to enterprise

the differentiate and of wireless technology, home increase apps Office, services other now activities security, with in platform home unique communications finally, and with also And is our alerts combining marketing ideal sensor's benefits form channel with in with example we in with beginning low home value. of combined we tremendous customers. and our are we new and efforts. to our continued platform, and believe Ooma announced a market, we can with We CES. ULE leads service, the base see partners target by to security and the the we home to the synergy more see also installed phone provide can our generated its progress new the cost to tap new services. XXX as Ooma to for into disruptive at services market By add residential in we security for our our opportunity capabilities leverage mobile solution growing launch security feature fast We connected our remote In the QX, Telo

to the is the we which certification to out lengthy expect except more of new Some in taking be be time more believe don't detector, fall we us QX services Nonetheless, timeline. Ooma introduce we this sometime available for expect QX than anticipated, will and Home. ready in all to we until to smoke products have due we in a but

begin shift spend service phone of Telo Ooma home starter in security is to which and kit optional an home some add-on security. our onto Our to marketing

security for While security a home Butterfleye Home to large have that we standout of an are video feedback. features to storage Ooma market Ooma there's be Ooma cameras part great recognition recognize intend in standalone Security we tap report customers we excited our cameras to this our to also opportunity. camera of and integral into I'm we It's Butterfleye started this are space. are pleased we facial shipping our and getting onboard clear backlog and

for now be accomplish, over has Overall, are the and to about of product believe in Our a distribution made half add in integrate Ooma build achieving. fronts all build QX believe and we to synergies development we particular platform excited in execute Security. fiscal and acquisitions, to all, and to year Ooma features market as unique have and I two Clearly, and upon brand lot we on great this balance additional the year marketing Most year initiatives. awareness. that are we of this to platform progress launch on the scale, we attempting 'XX. retail It of the name, across the our major strategies all solid are track Office first efforts new bringing we areas of cut are many in to during Home we what and will we but a that are

will results we your with then to Ravi comment me let in call Now, final over more I to and will our outlook turn detail, a and discuss questions. take the return

Ravi Narula

release and of fiscal Eric, is stock-based everyone. charges. afternoon and of non-GAAP The quarter on issued good reviewing be a which the GAAP exclude press our year today, then available intangibles for 'XX. related and and to found I'll by as except reconciliation expenses section provide outlook All non-GAAP fiscal first earlier site. the full such 'XX acquisition financial basis of Relations the amortization compensation, of income Thank quarter the of second year items statement revenue start are our you, results Investor on in financial and can Web data

million start to of of particularly loss. our guidance solid of fiscal fiscal strong $XXX,XXX XX% we’ll of the loss and year in results. a segments, provide quarter guidance the performance This 'XX an core continued basis Ooma first $XXX,XXX and year-over-year range Office. achieving the We Office $XX QX Voxter to million by clarity, for help million growth to issued on reclassified was a is within revenue $X.X previously of Communications previously driven Ooma million. first Now Business. Net issued increase was our range 'XX as $XX.X To $XX.X business 'XX $X.X This a quarter. our million or of had exceeds Ooma

the we reminder, a year today, and material us Voxter it forward. expect initiative though in business be March a not is acquired to As overall we for going growth to of Communications Voxter strategic this

services with the this and believe Business businesses would a sometimes on of Talkatone quarter the ahead of grew million. rules, Ooma both Once deferred in from million of focus decline XX% accounting combined, of revenue declined XXXX. we grew Voxter revenue XX% XX% $X.XX the Residential fiscal year $X.X quarter first the users At user. of transferred of year-over-year. basis become deferred services of Ooma that our lower in guidance subscription ASC the year-over-year and I residential majority generates metrics Ooma Business issued product slightly subscription Business 'XX and approximately pleased and XX% Residential and was core Communications. year-over-year XX% sales includes end subscription a revenue compared fiscal metrics have the which XXXX XX% again, which Ooma Product will the from of total the about revenue revenue basis. we for of these which year-over-year provide customer combined of to XX% period. to implementation namely earnings million under the revenue Ooma this to and revenue $X as We a are revenue revenue retained our million as first fiscal Ooma of core at and and subscription on previously our year. grew services the APRU. prior details Again, product revenue come XXX year-over-year growth and the our range $X to the services old continued We Business, per the of fiscal from on growth our otherwise was start other Due like now rules, new

X% 'XX. XXX,XXX the of core Our users of increased core fiscal fiscal approximately quarter XXXX end quarter first the from at first at end base the to user the of XXX,XXX users of

in of Our Ooma quarter. our the total to core of the the XX% business the fiscal revenue quarter at to Ooma in at compared year business of XX% total fiscal the the end end of of prior users first users contributed 'XX. grew to XX% quarter XX% 'XX compared first to quarter first

revenue increased a the in quarter recurring $X.XX for of $X.XX of Our fiscal or $XXX the quarter year-over-year at services fiscal of was the average end monthly to monthly subscription exit to million increase. 'XX, ARPU approximately year and prior XX% first revenue period. 'XX the first compared Annualized

of net subscription We XXX% first to for are first our dollar the quarter for pleased also compared retention quarter with XX% 'XX. rate the fiscal

and of increase add period. to margins. the two This XX% was to 'XX Now flat subscription year gross XX% let mentioned potential of margin by gross some and services Overall costs. part first litigation quarter and settlement it charge was $XXX,XXX Subscription Product of year first in the for recorded quarter tax X%. which me Business down quarter by from negative this XX% regulatory year 'XX above revenue last prior in margins settlement as XX% for for increased driven color charges. services gross negative in the growth recorded was was Ooma primarily margin of first other prior the the tax from fiscal quarter up the the in fiscal from offset gross of quarter onetime

Now first million capitalization million, driven year-over-year $XX.X by new commission or developing a onto were by basis. features on increase investments offset of quarter increase in partially $X.X This sales certain expenses. operating was products expenses, operating expenses and XX% of an primarily and

Compared continued the G&A and to growth including decreased two offerings as to year from rule. approximately by a we and growth Business expenses quarter, $X.X accounting sales into and a Butterfleye. adding XX% increase increase of $XXX,XXX prior to of million home $X.X or security as other were to spend acquisitions. product Business. to to capitalize period the commissions new marketing enhancements year-over-year and to million, of as million and our well Ooma features marketing solution expenses the Ooma business support recent XX% support prior approximately the channels $X.X basis the of an our on expenses $X.X were including under $X We Research are sales new million, million, the drive sales overall investing development

for 'XX. last Our 'XX loss in period gain was compared first the $XXX,XXX 'XX first fiscal share $XXX,XXX $X.XX fiscal first same a in share loss of fiscal quarter the net versus per to $XXX,XXX or per $XX,XXX a or was loss year. Adjusted loss quarter of of $X.XX the of loss quarter EBITDA in the of

sheet. Now turning balance to the

acquisition-related quarter of million debt fiscal March $X.X and of million cash made in the 'XX with payments of first have of investments $XX.X reflecting end no We at the XXXX. of

from For full 'XX, growth up year This cash in generated R&D in we the and approximately in and ended the first operations in lesser from increases prior was the of the quarter quarter. around with compared in quarter a acquisitions. year XXX sales XXX prior $XXX,XXX quarter. contractors and extent time fiscal $XXX,XXX employees We approximately from Butterfleye headcount by to driven Voxter and the

quarter the 'XX of the second Again, related under following new stock-based our and guidance provide me and fiscal accounting let excludes is charges. expense, Now full acquisition rules year outlook. compensation amortization intangibles and

to be the to $X.X of For is revenue million. second to is million. range expected in to to loss be loss the of million in quarter net of fiscal net total quarter the second share range range fiscal $XX.X expected of $XXX,XXX expected is for 'XX 'XX, in per $XX.X the $X.XX to Non-GAAP be Non-GAAP $X.XX.

for assumed QX. shares have outstanding average weighted million We XX.X

million. million range Our fiscal full $XXX to be $XXX.X year expected revenue total the in to 'XX, is of

the range $X.X are guidance end low We by million. revenue increasing of our

$X.X $X.XX. range to net range in $X.X in non-GAAP We expected non-GAAP loss the the be net be million is share of loss to million, per $X.XX of to to expect

I'll long-term approximately this average our We us prospects XX.X outstanding believe confidence well fiscal are results. to our further growth in shares have some QX the summary, remarks. that, about weighted our first the for with pass Eric? Eric 'XX. assumed With we back momentum with We In quarter execution pleased initiatives. as financial closing for gives as million of it

Eric Stang

we but headed. growth, we off continuing value and and It's summarize, Security. Voxter this we overall, to And To about disruptive and provide everything to a accomplish, to Ooma as pursuing will launching lot year you. major intend in are quality a three on Thank are we strategic Ooma we Office where Ravi. capitalizing ultimately Thanks are this initiatives do believe success. excited we drive start good our Home

to We happy are now take questions.

Operator

Your Instructions] [Operator comes Suisse. with Credit from Brad first question Zelnick

open. is line Your

Brad Zelnick

guys. my question taking Hi. Thanks for

the do how going think it'll take? Just how Voxter wanted and to integration ask is you long

Eric Stang

This is Brad. Eric. Hi,

the a well. Vancouver. coming now up that. think three for we've side and going I I nicely. four very organization really of And the it's or great important build hires to go-to-market think that's got in needed We've done team We've together

we've said we've to so far. good talked script, got and from I the partners in As feedback my customers

And it as QX. We for can the so of execute. to on now, need on we we're you to platform. believe things we're will just imagine Voxter working the at add hundreds this looking quarter way the That's the we users

Brad Zelnick

one the ask can product. you could if other, bit Butterfleye on I with And expand perhaps security opportunity more just the video Awesome. just a

Eric Stang

very really of to happy It the capabilities product. about space. this Butterfleye. talk stands in the I'm about We're excited out

With the it's Butterfleye them we to recognize since possible a now capabilities We've you actually it things stranger, if alert for improved it set like instance we app have. only is the recognition to doesn't facial acquired within that.

battery for a that With of shipped the our an identify clearing stands to and really who shipping well, or on, it space. but out temperature, really were going high-end -- have the position. at use can But it. you, I sound, temperature customers retailers. just to preordered. it that's two outstanding both storage, what's think begun back-up, motion thank onboard temperature, of one We've We've manufacturing backlog We the think and I heat It's that solution and motion fact product. it's

front yet, of start drive somewhere. Now, forward. the we I'm warehouse not year it and has brand But actually a products as product the for even probably we're Amazon sure rest in build in now to sitting of stock excited the awareness

Brad Zelnick

Awesome.

addition. much Thanks a great like guys. Sounds so

Eric Stang

you. Thank

Ravi Narula

Thank you.

Operator

question from Beliov Bank Nikolay with line the next of comes Your America. of

open. is line Your

Nikolay Beliov

the to here. Ravi, and guidance the kept you the you the raised revenue puts takes of just guidance, my Hi. wanted understand Thanks for end for the of you high-end same taking but Question revenue question. lower

Ravi Narula

Yes.

we now given also, terms – Office in QX to on right the hopefully, and have is guidance execute the the Eric in performed the there we raising as said of year, on range a we'll range. in even of upside lot of as what progress And of or we opportunities but Nikolay, terms and the Butterfleye. comfortable QX, us Ooma I for low-end ahead in felt of those, Voxter, very So, working given with guidance be

this feel feel time. the So we we I making and of optimistic at guidance very but did good the progress, range are comfortable raising we're low-end

Nikolay Beliov

split light being about And how pricier Butterfleye revenues we and of the in a product? the should product think year for subscription between revenues

Ravi Narula

think I overall as is revenue percentage subscription So, our a revenue of XX%.

that I it around will stay think number.

In terms lots think of it, year land a selling of more expectations get grab now compared means that on overall right lot be subscription so the Butterfleye from be side growth XX% revenue coming from million of this subscription users. I core will sell cameras, revenue, we revenue to subscription of will our for of -- is the but we'll we very small the a or

some will using think as it forward to become customers for years one in the become is, get will it So focus revenue features, many I the cameras, over and it bigger take subscription sell a they meaningful, Butterfleye subscription and as start to going revenue start number but time there. it think the out the lot liking from I they

the optimistic very are side. our execution Business we So Ooma about on

the So as possible we growing year. much around goal is our year-over-year have for been as to and XX% grow

Nikolay Beliov

more marketplace. in in Security the and noise should for And the marketplace. what's about Eric, own in fact going that we Ooma the you. for solution there's That's me. how for strategy think Thank whatnot, example, be the Amazon, it packaging you, differentiation for of light to a Home the their question

Eric Stang

to Couple Nikolay. answers Hi, of last question. that

the less platform Home Security, that that quality for for position about have can base integrating space. and phone cost we've in side Like We do differentiate on we we the some security security Security, features phone value. I have disruptive And home by it's a service also believe also Home the for to of just the are got consumers. we with leveraging

all We get are dollars the on great frankly platform. few to month just Security a Home a our features

compelling pretty -- So together it's a think coming in way. really I

their And I They we're and for Home And focused things it services are I headed. at like them package doing have I Geek I someone they could that think Squad of also would well. Security in-home strategies we think are Now perspective other's where try are on wanted, -- bit to and delivery will we Amazon little all like do Ooma's from if much we with sell actually get assume package a aligned in some with activity they you. services look a selling solution products. most when as don't farther are they delivery

That phone a next to Amazon of relationship The the of connect, close I there. lot Connect, But is in it. got online everything and the I and We're someone XX% ours. key When buy you going to it So think is arguably connect today the put partner with which to also leaves market it, to it's buy with Amazon ours like Security space do of what no thrilled five XX% anyway Echo. a doubling box They to to XX% Amazon get together opportunity, that within you disruptive phone if to a size really used years. so the Home next a we a a it. you quality service. and shown market is our right we're think us partner you to not certainly And place buy have if is way up big, carve that of for to or one's value need go go players households has space. service that's Telo to are the that clear --

Nikolay Beliov

Thank you.

Operator

of from comes William Suri question with line next Your the Bhavan Blair.

open. is Your line

Sarah Shizas

associated your solution? your in And Bhavan. marketing and office solution just in bit it Voxter channel for synergies, investments of forward? office expand partner some going your Shizas like a of my on Voxter leveraging Thanks little sort Sarah question. with for you for sounds more for taking and the synergies is Can what This there's Hi. sales

Eric Stang

follow but Ravi I'll up. start, Sure. let I'll

partners the leverage we a for building and But market. channel develop to effort where segment. go-to-market segments different Voxter and combined we partners of Ooma a sell separate have the full UCaaS channel we will both channel Office team is as and hope that Voxter the are We partners

of to sell add? to very low Some channel to all do. the at But partners market. the want some Anything don't Yes. end

Ravi Narula

other Ravi. thing, this And Sarah, is just one

think mentioned besides generation what teams. the marketing, Eric lead on building also about I sales working They're programs. creating

inside So having Office, integration. the I and of are team scale Voxter on demand sales benefit Ooma that help team in getting and and drive both working of synergies for to from think that's something we terms

Eric Stang

We some will send leads it to Thank on you. or other size that and one Voxter couldn't just those to depending we we the fits. Yes. the the really serve. we the now acquisition, where of leads lead of Prior drive think

So that's the synergy. part of

Sarah Shizas

you, guys. Thank Great.

Ravi Narula

Thank you.

Operator

line from JMP Pat comes the question of with next Walravens Your Securities.

Your is open. line

Mathew Spencer

is Spencer Mathew taking you for for Pat. Hi. my on This Thank question.

you your So important single on the and now focused you right International What most? Eric obviously initiative have WeWork the Butterfleye, a and are Security most UCaaS. I where Home lot expansion specifically with table guess Thanks

Eric Stang

Well, there, mentioned really things my Sure. in three script. but I focused five on you

Office or us. great attempting We bit the beyond the our at today. any itself if than almost and time. at smoothly added growth And for And is a of initiatives for coming WeWork this the it's QX And I is customers driver you right that's continued countries of now, footprint growth least we well, Ooma autopilot, in opportunity a where a in to sales And actually prior our more I looking relationship. and three but quarter that running back. on expand first that's not most with will. WeWork little We internationally way working X of we're spend revenue not foremost, do much expand in about, our talked back beyond goes are year. WeWork, and that expect biggest this of marketing think to that's to even X But WeWork

come but are We know on Security this will I they front. third Home to Office. the Voxter contribute Ooma on they and front year, building second UCaaS building and building And the

Mathew Spencer

Thank much and Great. you congratulations. so

Eric Stang

Thank you.

Operator

B. of Your Josh Riley. next from line comes question with the Nichols

Your line is open.

Josh Nichols

ADT Yes. features. or taking how number be for like offering say of was do Could Security you a out feel whatnot? Hi. rolling white about with ask, companies going potentially you're my like talk and security of question. might offerings new a competing you I Thanks type any Home interested other that about to doing of label

Eric Stang

where flexible like are go-to-market never that. strategies something our outright We to would say we no fairly in

We to Security have the solution and quite But for talked to clearly focus to capabilities place getting core sensors along word, sorts of not as into market base systems is in those the -- but the today that probably our up base right the now having we've define been happen do geosensing person as along out remote the and is things. Home we about with features allows and with we've capability developing. person smoke arming automatically detector These pretty features our the siren is some house the home comes house. are last the to outstanding disarming and some then also or like leaves XXX, first which already the which cool But the there.

to talked that think capabilities siren about we have security so far home additional really those us. further There done for with be we've We that's And forward. will we we the will have those things, we QX. on. very nice platform on as platform step once bringing things we development in a go one be of build we've that a out, intend will But

third sales into doubt look phases. today. a little it no of I this If about There's our It same quarter. see that from right business, of the America. The is perspective, this things very ask development goal XX% about end ask moving you me, spent our went is in service And we we're Ooma feel so. Don't It by very position spending say lot on we've to year. good the best the home R&D that. last now. a with to spend phone at are Telo in overall core Office organizations party get that where we

it simplistic elegance, going in we pretty and need invest does to a Office really its in do Ooma that curates Ooma So what much forward. of way. you need Office not part

So try more up. it and you to install do if And it we it. muddy we'll much make use can it it that, yourself than

on channel. marketing terms we building how we challenge we on transitioning and to So into how of we level be some brand of do building discretionary of more sales more primarily create focused doing fast will Security with as will Home both we believe then that a that's awareness transition Voxter. want with spend in at go. much be to and what want and and I And we're those

Ravi Narula

If one is this small Security. can just for thing question Josh, to Ravi. your label about Eric's I white Home point, And add

value have in to We it have price we'll great comes structure happen very cost what we in, case features make think we opportunity and able If synergies be an like given in our have. that I offering. a

I think if as is in. the goal our -- it. once is into to opportunities open looking So soon like those market We'll come product as be to ready it

Josh Nichols

And end raise bottom then, nice to see the the of year. for guidance

want built-in this to how much little the far year? or offering is to guidance, clarify the revenue Home fiscal as a bit pertaining Just as Security

Ravi Narula

includes I look also. When Butterfleye at the this Home Security

It's to it's acquisitions. and in Butterfleye number two and last be I in big $X to small my revenue we addition but fiscal subscription earnings will Home revenue in between that, not number. So the addition The mentioned Security talk sensors I a ‘XX. million a Voxter for to that in million expect $X are call from about some when

in the revenue want But channel I marketing, guidance. we'll that start will think working that to are partners start amount to will I take we once our having put time. with gone some wanted didn't big of process, in without -- ready, products

Josh Nichols

mean has the Voxter seems up of UCaaS pull for me, also advantages as seeing to company fit good it those -- as additional any with like provide But benefits Canada that maybe customizable, couple you will are Voxter want solutions last to or larger for given base as well. talent some far help international good company well as that in could potential from a clients for a customers. the And question I to and you other great move I then, ask, some did any are enterprise

Eric Stang

the about certainly excited will market in terms the great more a of There we I think Japan in bit of have and today more year here they company. Valley customers talent benefits. certainly in we're It’s grow than markets in to a scale done Silicon quite great some these several Ooma there in in in up engineering we We and with them just base are customers several are add last we gain amount it's some in but Europe internationally more having I importantly and about. team than we of Office. call, on there will Vancouver a talked this a they our countries with have

simple and synergies course and doing of getting we business the the we're So to there have PBX Office any for Office a things as of pretty for that. the not a be blend of significant help top sized to effort with lot is great they've you The that is but channel a channel fancy here wants cloud solution way believe engineering Ooma just with some of scaled features when a partner there on save is last for as opportunity real leverage finally, well. And will And Voxter area platform is Ooma Office as attention together the an it us solution platform we forward without Ooma their our and together easy in channel. as telephony scale go. which

users. have now our and we what and the want feature,’ leverage do our is ‘They want time Ooma to they in we time that We that have more not intended is Office ability Ooma feature,’ customers one today again have that direct But, one dozens customers, of channel Office XX which seen to where ‘Oh, on are on than this sales.

direction headed. So think fits them it step is together I in a I putting is notion now Ooma a think and where Business we're together of of that well the the

Josh Nichols

Thanks Eric and Ravi.

Eric Stang

Thank you.

Ravi Narula

you. Thank

Operator

question the Northland Capital [Operator Instructions] Your next Latimore Markets. from comes with of line Mike

Your line is open.

Mike Latimore

the up the of mentioned Office. what you to features next kind -- feature set remind you finishing Nice of Yes. are key focus the Can ideal next Ooma for sort Eric Thanks. or on? two quarter. me

Eric Stang

need On multi-site. to business will operate the have being a to handful. are for capabilities that Ooma one difference and believe not two They a a the Office, the most Yes. would has able They Today I platform locations. two the two But make there's office phone so phones multi-site. it Ooma at Office secondly, desk in systems. that having all the could handle that person use And front one the can receptionist on oversee way.

this one longest. platform enable -- take end biggest significant. will that and to to out. that too sit And that to it a on as when they'll get about of I the we how probably like needing dynamic on at to call I Office we're will think There's both. longest and things those be thereafter. the today it operate there's be we the said, think recording till invest it level is we needs when that we really – two that one the is think but really the the year do. with less think down to want of end would other hope I that are handful But And this much done. by placed has through you are they There's Ooma fairly add very year and working to of things are the But hard well not needs and in some I features

Mike Latimore

you help or customization, And the you. do it able Voxter kind professional it services to to stay add customizable thinking of that Got is you I that with customize then, you are guess, mentioned offering, customer the customization? need

Eric Stang

platform to we're with channel the channel well, customization I the we latter. – like some a platform easy of it for partner individual It's adaptability. do instance. to this it will or also the for tell have When we'd I thinking that's like we us, think do the on the you to branding actually partners, asked create phones platform have these needs them analytics work question, It's to over support customized customers integrate on need customer customer to or thinking very We're way the in a the IP and with very as designed platform. we for easy the will your for And complete a that's it new when the of here.’ to have strengths easy have new enhancement ‘Oh, customer and your way. one direct think of channel We partner we'd a

things We capability And the have that it's -- have some them on. we're management us at locations we significant who design we Voxter it customers able those was won that kinds centralized one for very focused to were unique customer that of with customer. and that of hundreds call

what described when kind it strategy a there of really ultimately out There at pretty do for similar needs. instance you leads customer. last this when who for Now, to market market of customers are work get that in good more I just the you vertical other you have

our to that be your I the just more partners what think to and sales channel treat a with say more channel a company? And same so value work organization. be them we with will this fits and to channel want will try embrace us just you the to the add bespoke strategy let not apart. do really leverage how done, to set as partner to their And it's ability to work system want we've That but phone in customer where

Mike Latimore

I the enough expect or new majority That do there [ph] of the being customers? the majority mean or makes base then, with a here is sense. [cast] to that of at regard sales net you Butterfleye, your maybe to be the sort And is most wide

Eric Stang

I sold think the couple next the all significantly. market to and over but type we of retailers we'll year of a promoting. coming a cameras position more Butterfleye we is got have need today or out and No, market majority our start able Arguably thousand where inventory to customers. have so in it more production that it's pursue or video significant We got cameras $X be to that to that into home We and think we'll opportunity just billion it come get We've new be sizable. then be growing. Ooma just will in it. -- surveillance a with this No, in, month and

really a have out backlog customers us product. and -- the given is we're the of thank coming because being the product. who to And in of that, I so them And that is lot excited interest we unique feature of level that of sought

back the create We around the have for solution. of awareness So challenge year a good the it. to know we is half

Mike Latimore

lot. Okay. Thanks a

Eric Stang

you. Thank

Operator

today's concludes conference This call.

may now disconnect. You

Ooma (OOMA) 22 May 182019 Q1 Earnings call transcript