OOMA - Earnings call transcript Q4 2019

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Ooma Fourth Quarter and Fiscal 2020 Financial Results Conference Call. At this time, all participants' lines are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker, Mr. Robison. Matt sir. ahead, go Please

Matt Robison

day, everyone, fiscal fourth and to and XXXX earnings welcome year Inc. the call quarter Good of Ooma,

mentioned, Eric Stang; Matt is CFO, Ravi and me my Director and today Holly here CEO, IR With Corporate Robison, Ooma's are Narula. of Development. As Ooma's name

a be our release is Dialing is website. available on will the company's This on for information section link After included in for starting press this press this website, link closed accessible being one week, telephonic The of newswire. ooma.com. a relations Ooma today, will Globe market call call least webcast the for it and replay is live year. release from evening for A earnings a This active page at today's about Time. investor of events issued via Eastern is the release. available also be also replay the Xpm of

During federal statements today's presentation, our meaning laws. securities of forward-looking the within executives will make the

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

These differ set actual earlier from information statements, law. Exchange beliefs release well update and as on to those today, us could Our the and not cause The materialize, uncertainties are required in to except forward-looking Commission. with and results issued disclaim risks financial in matters forth periods more as by our statements presentation actual in any to we Securities in obligation may day the fully based available described and as regarding subject projected. the any this that are forward-looking those filings hereof, these those to expectations risks we results include and materially press as of

most or otherwise prepared non-GAAP present available considered substitute basis. are reconciliation in website. of non-GAAP financial disclosed financial financial are our financial other with in the intended why that or accordance non-GAAP call will discussed GAAP. to not financial comparable measures is we as stated, in in measures be our the for release, of non-GAAP the be The note, results a a measures isolation to measures on The a which on Please discussion directly be than to on GAAP this and press call earnings measures included this revenue

to included call, investor of and information one page guidance this and quarterly X-K give core full our press fiscal in disclosure links presentations quarter to non-GAAP in On results expenses on section, year and supplemental basis. titled our as and we'll well two. a metrics financial key filing, supplemental first for includes financial These as our not the non-GAAP the subscription disclosure and website in costs the addition the and values, page release events XXXX financial our section of Also, are businesses. of

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

Now, to CEO, I will Stang. hand the over Ooma's Eric call

Eric Stang

recap to do provide Matt. But this review both talk Hello, FY overall look our I'd I'm year Ooma's today. 'XX, welcome Since 'XX to at so, in before a call. briefly everyone, like I and pleased ahead. very progress results. year FY fiscal I'd our end, QX earnings with to strategic the to is Thanks, to new and strong you QX like

XX,XXX we to opportunities Ooma of $X also of be net for backlog of and announce fold. FY the and expanded with QX, Office, an revenue deepened, recurring with QX users. I dollar this QX exit in now we Ooma Business and to largest For pleased that subscription year-over-year. want businesses feature are before. I'm positions see I'm We pleased revenue Ooma revenue million net partnership believe partnership is businesses $XXX we a ever retention well million, new service Overall, particularly over announce of solution the larger expanded rate. Ooma our during we to And for announce ranges. $XX.X we above Pro, XX% tier million XXX% which generated revenue call in excited launch a to grew our annual QX FY our because than several that customer QX from guidance grew just Sprint set to is quarter of our and our more Office for also 'XX. attractive strong both ended, 'XX income our that success a us position believe

winning We the market, have solutions for see ahead. opportunity tremendous we and

start profitability, Pro and we of including last FY one strong corporation, small XX combined just that business one the relationships, class market best progress In teams, to reseller enterprise to market expanded new others need we to a reseller the versus sales go has residential customer, resell of feature and and a offering, Omni, built through revenues we've features market opportunity their expand solution importantly, to months, revenues a and users sales that sprint a business superiority and into enabled brought we business team by revenue partners, team XG our to the we've full actions and our to backup others. improve we've UCaaS the Office their drive booming observed rates solution Sprint over important with power this demonstrated in Ooma it for business back and enhance customers, to exceed overall year increase has branded Sprint of through a made. scaled Ooma environments, for our acquiring and we Ooma to internal solution believe our the growth partnered Ooma for at our taken both Broadsmart Ooma most achieved growth look our perhaps ability including for internet residential business have and to integrated solution, businesses the Office of 'XX interesting the and per Office the we've introduced It's just large of very set Office multinational with Enterprise user, the Ooma XX,XXX with Ooma

team FY as into 'XX. of believe proud us I'm FY and the 'XX, well go give important I we accomplishments and executing for these momentum

be seen Some This by Florida, through other marketing who Ooma. a of for chose Enterprise businesses, their in One and users. in APIs. we more customer momentum company adopting use example we that kinds of custom mine will performs is than are from customers Ooma to solution data XXX part where ultimately new them the of Ooma because our enabled can some enable

flexibility a them to and Enterprise call also it. customization choice Ooma our is Ooma core You'll differentiator. the ease perfect power and for recall that the customer runs center, of and of This Enterprise strength was

new about Office, Ooma PBX. switching with is from users. a is customer of a locations, example totaling This away is for ours firm two XX Another customer law who in-house an

You'll use, great are recall and strengths of ease that core Ooma of value the Office. simplicity,

very As lawyers record have voicemail of recording to could aptitudes who Ooma's Pro, the this But served not Office are Ooma focused are launch call transcriptions keeping. customer attractive. for require on prior they their and serving clients, we because

the with available, Ooma this opportunity. we in fully meet needs how Ooma simple Office winning is just Now, can These two their Pro of are marketplace. examples and capture

customization that core, the small They segments needs. market. Ooma's think Today, I view demonstrate they believe the strategic with market our also at different are uniqueness we different two business in and enterprise demonstrate their can believe Ooma when that needs. is meet satisfy enterprise and leader that serving Ooma value customers it clear industry UCaaS, comes larger to the in businesses, we special to small

for forward 'XX to have looking opportunity ahead, the FY drivers many year we Now, creating growth.

than we before First it's this today, marketing to market and end, strengthen ever up to and our us sales we have marketing and a continue to reseller out will fronts, great we more is will product to marketing and through and growth feature and we advances year. To targeting solutions this implement our will foremost, that on expand sales in happen sales the but enable three vertical This segments. activities. expanding partners and perspective, emphasize our major will through all From execution.

The first app expand Pro Ooma further will desktop reach add is of we to market to solution. other this the Office and functionality a

user call user collaboration mobile effort The modernization the Connect. portals, capabilities. a will second Enterprise groundbreaking we Ooma and launch apps, And we we our is product Ooma This will complete will experience. encompass new of thirdly,

Ooma more tell eight already more adapter in antennas. we backup we of a couldn't and beta advanced integrated is the housing an customers, at want some LTE be Connect Office excited radio a Ooma with combined feedback station, solution powerful separate This internet businesses. customers space and their Many new, will about hearing. into us consist Ooma are they

us or quarter. DSL solution. satellite particularly even tell a access, to want to internet more by customers, this the reliable faster those end to Connect they launch of Ooma and We switch limited intend some fiscal And to

'XX. continue we and on expect further on to currently in Sprint With new people Sprint, a largest the With sell more train concept, hope in back also partnerships, customer simple partnership we to we to largest Sprint our sales serve and Omni. to our this half which we and Regarding customer, key lead initiated of growth Meanwhile, FY will the area engaged further momentum customer significant to the market in business we of will are capitalize year. proof in we a opportunities users the to regions of Sprint moderate already abundance drive One with see the we've more opportunities expansion in them. is this we of goal an enable sales teams established. capitalize our

and our connect we is new Sprint Sprint the wireless partner enable under Connect, expect that, will also Omni and solution our Ooma connectivity the Beyond brand. sell to

to that the Finally, T-Mobile. to we up looking of see taking is network are how are with waiting can between this for we advantage this likely are In occur, regard, T-Mobile merger and us. merger now coverage open to we Ooma further Connect Sprint opportunity the mindful and expanded particularly forward

Pro, customers year to us larger customer, ahead, all who them being our execution into Ooma possibly reseller by even Ooma and new see Altogether, revenue FY relationships with customers, bar user, by and with value business marketing can both serving new enabling area Ooma per Ooma Office a leveraging by strong and a we core large Office the 'XX new as bring Connect, adding of customers, succeed, fronts, sales we our large securing unique expansion and business and with successful drivers launch Enterprise. the market of higher largest very on the driven customization to at Sprint, look and we

exciting you significant, ahead. As opportunities see, we can have

two call the Ravi, over to turn I before make I'd comments. to like special Now,

Today, of first business supply costs of impact has delay retail residential Ooma our caused by and currently accessories to some some sales residential affects incur to promotions, and and the crisis our it minor, on than affected availability us more us. business be some added The of to to our product side how Ooma. to be the expect lack We concerns expediting health worldwide on the sales.

far, thus to to causing than impacted On been currently bring in into Connect. the product crisis delay other of our is Ooma the launch we the ability business front, have not a inventory support

news. has their The the another to top seventh choice. Business Needless to say, second won couldn't is market. VoIP, PC announce in, fundamental Award. to the once strategy represents we and is pleased Ooma Choice comment our number that to hear VoIP from Magazine. one readers like This in row more Ooma differentiation is to wonderful I'd that business PC are ranked that is be validation the customers is and for Magazine's This The vote working bring we again we a solution to some year of the according make

return in now to more the call outlook some and turn closing with discuss Ravi remarks. our then over will I detail, and to results

Ravi Narula

year-over-year. in Thank business. driven afternoon, for $XX.X million, quarter Ooma financial of had prior for in $XXX.X $XXX.X fiscal million. of the our basis, million end revenue, with quarter. as results, 'XX. $XX.X fiscal million start fourth 'XX, basis, our XX%, issued XX% to the XX% you, achieving previously million for was above total revenue compared We a On $XX.X then high strong of for Ooma Business in grew to I'll fiscal our On full outlook revenue quarter QX, and 'XX provide first review guidance and XX% year total good fiscal total range performance growth accounted year the revenue, a year-over-year of achieving financial primarily compared Eric, full-year by a everyone.

while percentage management, for $XXX,XXX. on by to net to significantly $X $X performance quarter five net breakeven continuing of than subscription importantly, expense year was Revenue for loss to income from million driven 'XX. fiscal was higher This full 'XX and XXXX, year. $XXX,XXX, growth. the focus the million, guidance our issued income of for And Broadsmart, was which compared loss fourth fiscal growth revenue added acquired Net in our better of a was May previously range net points

subscription grew America had QX add added the Business XX% services in we additional on and customer the new now the in after from year-over-year from year-over-year I'll color revenue users previous revenue basis, we fourth our Broadsmart. Ooma excluding In a XX% QX mentioned and earnings in quarter, to large revenue. calls. North

sales earlier, new mentioned about with momentum this proof customer, conducting a including multiple engaged market. fronts, we're as We on are the continued in excited Eric concept and of a

Going and we'll earnings this expansion from future calls. provide opportunity, updates forward, further we expect progress in

Ooma Residential services prior services Business million, $X.X from subscription revenues the to of last total in X% the XX% quarter. year. year-over-year as services XX% for combined on Product million the subscription percentage year-over-year, grew revenue a $X.X revenue and subscription grew and for fourth XX%, fourth quarter was Residential in year quarter basis. the was up and revenue the revenue Ooma compared quarter a from Total and both and fourth

As a 'XX fourth of October Smart revenue XXXX. for revenue, fiscal quarter discontinued million $X we which included reminder, in Camera

for revenue grew our Camera, adjusted So, $XXX,XXX Smart product year-over-year.

Now, year, on key at some of X,XXX,XXX being fiscal our of the users prior XX% customer fiscal details business with XXX,XXX at the users. of metrics. end total end users 'XX, We users from now up our the had

as user user a define or we residential clarity, a Ooma For a Business customer.

subscription Our quarter, $XX.XX XX% services as or number ARPU customers, per to of prior monthly including ARPU customers. added $XX.XX, a higher increased from and up average Pro in we blended Office user the year revenue

compared recurring for exit $XXX customer the we Ooma was of net growing the million, continues Business dollar churn, to continue ARPU year-over-year. performance of stable XX% to Annualized prior Driven expect upwards, XXX%, by Ooma quarter. grow. revenue year to retention as Business We subscription strong and trending XX% achieved rate

other of Moving fiscal fiscal in the gross margins and to gross 'XX, year margins 'XX for of was comparable the prior the to fourth XX% our margins, and margins. were XX%, quarter's product outlook. with subscription quarter negative gross quarter and for line prior services Product fourth

some quarter, fourth China. the on product shipments During our to the coronavirus expedited we of impact minimize from business,

As Eric mitigate mentioned, chain our to issues. we contract are working supply closely with manufacturers potential

we of and continue in services the subscription knowledge, our in from XX% the increased Ooma best Business. year will to business. XX% revenue our the have to To impact due to to guidance. risks gross the virus the margins We assess in quarter, our prior monitor this Overall, and quarter reflected of potential in financial potential fourth primarily growth

XX% $XX.X Now, and total up development fiscal some on XX% X% $XX.X commentary headcount up expenses operating or to $X.X increase This expenses Ooma total of for quarter. were the or marketing increasing programs the Fourth quarter $X.X 'XX up increase. growth Sales year-over-year. in revenue, operating XX% a or of were sales was and XX% million, expenses expenses grow driven million, year-over-year million, marketing revenue, total million, year-over-year. and Business. Research by were

Business, report XX% that we total As sub achieved onto Ooma of a our our QX. R&D of our focusing product in pleased Camera are we the effort of development target Smart expense result revenue and discontinuing to

flat G&A of would with fiscal In of fourth to the $X.X expenses XX% million one-time been total including expenses expenses non-recurring 'XX quarter. claim. $XXX,XXX expenses, of to were were Included prior for certain approximately million, year or revenue, compared expenses, G&A in expenses quarter. preceding roughly have these final absence the quarter relating a litigation $X.X the

in million to continued During a loss QX, of year to increased we management. share of in the was compared due expense $X.XX net per $X.XX profitability This income quarter. $X revenue achieve diluted and prior growth EPS,

metrics for Now, fourth sheet quarter. EBITDA onto the and balance

adjusted of the for of quarter quarter $XXX,XXX year prior in ended used of Cash for fiscal prior the versus million We to improved the cash $X.X operations approximately of of year employees XXX fourth total a EBITDA approximately than to undertaken was quarter. included XXX last compared profit end EBITDA $XX.X up for significantly fourth with cash October. 'XX fiscal in million charges For the We year. with the investments the negative $X.X and fiscal $XXX,XXX, of 'XX, payment year This period fiscal at usage the $X.X fourth of million operating the more ended same contractors, and from year. quarter restructuring million.

for such guidance guidance Again, is for stock-based non-GAAP, our full compensation and provide and adjusted fiscal the quarter now 'XX. as has been I'll first and intangibles. of year expenses amortization

'XX First, range million the quarter the to fiscal for expect macro total of fiscal be million. quarter $XX of 'XX the $XX.X to guidance. After current into first taking environment, in account we revenue

diluted expect We to be and $X to net between is Non-GAAP between expected range non-GAAP $X.XX. income to $XXX,XXX million. $X.XX EPS

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

For fiscal and approximately be Ooma subscription range $XXX growth expected for X% in fiscal X% million. for revenue and Business, to $XXX year-over-year to the includes million is residential. rate full of guidance year 'XX, of XX% around total 'XX to This services for

expect non-GAAP in range We to of be net $X.XX $X Non-GAAP diluted in $X.XX. to the to 'XX million to of fiscal income be is the for expected range EPS million. $X

approximately diluted timing year, generate the outstanding we We subject a 'XX, cash to the annual typically during and shares first payments. breakeven perspective, with fiscal throughout to cash expect flows seasonality to have assumed weighted XX.X fiscal From fluctuate 'XX. This positive quarter can cash million of higher seasonal cause requiring from cash takes. flow given to average usage, for puts operations

performance integrated believe us In given in Broadsmart execution, a both terms we and positions performance closing, our new into strong this and forward. that business. we added 'XX, I execution going of had for strong financial customers fiscal well

back I'll closing that, to Eric remarks. pass it Eric? some for With

Eric Stang

Ravi. made in great Ooma recap, strides To 'XX. Thanks, FY

partnership view opportunity in we vast. opportunities, and combined fiscal year. positions on is our focus with serve the upcoming increased market customer for us new The Our business, well

I'm Ooma also every and future Everyone the and focus for of success. support. strong dedication planned, We and this our hard shareholders make have committed at their their execution. exciting developments team, driving them marketing stakeholders our and to other new XXX% I proud to one of sales on Ooma and thank is possible. thank work for

so the let that, With to can turn operator we questions. me back it take

Operator

Thank you. Michael [Operator of first Latimore, Instructions] to Our Northland the from going come Capital. question is line

Michael Latimore

quarter Great, fast this in deployed. get nice. XX,XXX That's How large how and get that guess outlook. quickly you deployment? did to I guess, customer, that deployed? quick -- Very of I thanks. pretty was what Great views terms

Eric Stang

Hi, Mike. year. This is Eric. last We late of that QX started

months really, it last of lot And year, fiscal a that. back the last we So work. in half did of year, six yes, took

You're right.

Michael Latimore

the of similar terms In been already to deployed variation of new there, size that of opportunity is that? or what's some

Eric Stang

there. think similar the opportunities extended we this and to to potential have last growth I this this an we're achieved going but extensive we outlook. to over year at expand believe customer year, from do see have I get critical the are Yes, to then concepts through what

Michael Latimore

In from the the doing, channel through are terms what I guess seeing pipeline that work of Sprint? been you kind channel you've of separate

Eric Stang

little every there. With team takes with agents partners you in to time them, a quarter, to reseller adding effort of well and get that a acquisition, build channel team and also the you into up time good with and some become you we've help we put we took good if and and partners go can pretty first partner go But place. for I things But place, a to that solidly from with then, Broadsmart those We're then momentum. work and sale. built tens their in strengthened agents it relationships, fiscal our think this year this

growth the late reseller around look how it's way. on well, made their further Since given to and solutions. of the the it's took lights so plans in that securing who white out side activities, simply that But of make more direct for systems we've We a sure partner and in as is enterprise to grey year. do -- in strategy, this it want industry, a place to work business. of And own. have good just for I to of has because it. easy put much our it partners so year previously, I'm heavy little or not the kind with most to white us solutions also feel progress we -- but relative We're metrics of talked part last a customizable, our any also that We don't partners were growth white get to label as partners, label think, sales and specific of activities, channel our potential our we on see we've reseller label

Michael Latimore

in think terms first guidance; And on side side residential product is about? any the or then, there quarter seasonality to of there

Ravi Narula

Mike, Ravi. is this

Eric Stang

make a fine. That's Go I'll Ravi. comment. ahead,

Ravi Narula

of size heavy, I February, there's given there's Residential not holiday was major January, any we thing overall, we slightly if then seasonality going a same just also But January small overall. QX. February. to seasonality business, from generally do in -- generally [indiscernible] the given perspective, much in scale, the have not January, residential and at pretty say lower. might speaking, our speaking, -- see seasonality February But the period seasonality is look is business small CPM. in is with

Michael Latimore

Okay, very one. the last

adding, of Can collaboration lot this elaborate talked you definitions different You I that? There's about think, collaboration. on sort a of of year.

Eric Stang

We offer what and opening we'd the the it. the offer other Sure. user my speaking things the like user actually video as today. was user things to mentioned we in experience ideal We experiences have was remarks. as And for collaboration. But modernizing I isn't interfaces I

enterprise to we admin So, to we've solution user experience. our the We're new and will already. desktop portal user been investing mobile collaboration app experience last in experience. get thing new will revamping yes. But a brought on out that. app our new out be video bring We've And soon a

Michael Latimore

results. good Thanks a lot. Very

Eric Stang

you. Thank

Ravi Narula

you. Thank

Operator

you. Thank

line come William will Blair. Bhavan the Suri, next Our from of question the

Bhavan Suri

my Let congrats. echo me

you there. that nice a drove customer on the the too. let Just first environment compete quarter I of did love big sort me there. understand I'd to some Eric, touch guess selection competitive Who bit against? see? did a little process? of What Who you

Eric Stang

talked a color about, of different I a They've is business and the large that's places different It's multinational competitive customer variety in environment. their past add company. used beyond This reasons. can't a we've Bhavan. what solutions a lot of a in in think I for

generally it from in-house solutions, to is the very see to had those that think to to two We to as in of a don't want we trend. who solution was the But out PBX interesting enterprise And in good able a customers capabilities quite And as of industry. things where really have for very what think them at that the customer more to PBX fit one customer's to some we upon that need. cloud. customized about even well-known I were this move want extensively. solutions, Well, have improve they to forward we're able customer a well have. We way that beat to competitors move bring had and this give some and value be it they with they've with sophisticated getting do customize use, needs, Ooma Office the simple, easy And combined much they positioned we could past. solution work up weren't their make a to things they've

win enterprise is And won other we to hope based say when we you sit forward. business that, So, and this we enable that's go work? does can where as how we with we an often large win customers How can on we down how that's your better? customer, and how customer

Bhavan Suri

of geography, of you dynamics I'll the you know something then, And like terms pattern I'd you or it its that But Got contribution of understand And you give bit. brought want share, And won't growth types seeing there. sort coming to business. in sort and little love on ask, or more there it. overall Sprint up. through of of I I channel? importantly, the of touch color, know that? I to Is as sort to vertical, customers a what size, or a are

Eric Stang

can different I answer a ways. couple Yes, that

Sprint it's way working customers First they're of They little an us, teams, larger channel are on large of do the would on towards And our I through secure this them to they bringing extensive business help working we They say own. what bring slowly in it will bit we have that very force. not customer sales them, to just we really customer very customer But of some sized relationships a teams. difference. smaller it's will that have and potentially some all now point market. out I let force, all, partners. one to. reaching coming, members would Ooma has average, though, large work Connect think a not be normally larger their leverage sales say with I customers big with with also probably might than another not be

the have So, encourage I think would of it's pleased far, get be we've opportunity. force fortunately, them about a through the time. behind positively fair something. well, to to need gone say the that And the experience, to lots and great are force that does things. and is you Everything lines which the momentum people within I sell front Sprint takes Their so at talking made sales sales the sales think it

the set will period users is we're with relationship, be time rather a new goal, our our we've me our set randomly, Sprint the and channel. we We've it's by that in of a that this on goal XX% this. matured But so goal through adding bear

Bhavan Suri

piece, Got that's labeling? are traction those co-branding, the conversations the sort it, in two of. white you sort the to or those terms just sort and How have of things I'll of with so how arrangements? more of the Are helpful. those ask of then co-branding going white overall. Obviously, the one progressed seeing quick and speak, discussions pieces types on piece, the direct label embedded piece, channel about itself, a sort the of

Eric Stang

to talking seeing them. bring and the understand we can with how can resellers we we're support work uniqueness traction to think getting them, that good with them I and and to them

in I the quite differentiator Our deployment year, our that progress with work fiscal and to whatever have customization in end plans year, relatively we Broadsmart back the this some customization way customer us, delayed them. bit today, for new for situations, with for channel That's much big slow, capability it's last differentiator. the I the a to got half and we we quite a goals added arise. really needs of can was meaningful. I them, the is ability is was we to customer would did and last than this end little an and think second year But brought the our in That year. what extensive. other all for it of them a the together to is enable and coming A some big say handle be think our that bigger team did And enterprise.

some We it, unique niche we're it. own than just and successful for to mentioned. going it, and I we have I with think find us going our much today where capabilities are us of to And take which that's farther our be for in

Bhavan Suri

it. guys. Got quarter, I job taking Talk and you to thanks Nice my soon. And questions. like for good said,

Eric Stang

Thank you, Bhavan. Appreciate it.

Operator

come question next Gulani, the Instructions] [Operator from Aman Our will line Riley. of B.

Aman Gulani

on quarter. Thanks and for taking my another great question, congrats

once complete? do talk that for you partnership smoothly. more. think to wanted it's you in the visibility get Obviously, ramp. might terms sense when So, is I And pretty to progressing just visibility some want will I improve think the about merger Sprint your a of

Eric Stang

quite know mean by what not sure I'm I visibility. you

visibility you you give our If ability to meet it... about

Aman Gulani

might customers Visibility aggressively. of team like the ramping, in terms sales the to when marketing be

Eric Stang

yet grew sales of We several to don't of some a with instance, fold. Sprint's where like the would us way, backlog, significant a we things team with step not made customer, backlog, or a that but our help our by all selling for I terms That it. in built of or in they see And versus QX quoting, number share with sales in significant can them we it us of, do and the say their Yes, QX. we people venture that. have increased

on this This for a two-way And So, I behind Sprint, partnership. our marketing been sales of to and solution of think and together, do. are to goes execution that it's powered bucket by year just we it's think I us. need into develop, great I there's new and to tell Connect They with our plenty can you what room doing work we're with. solidly Sprint's

Aman Gulani

thank looking label maybe you Got with you. solution? wireless And secure similar it, possibly white to a carrier, are another

Eric Stang

become moment, I at a point, if I we're doing on Sprint. for the partnership. focused we're what part cheeky with Well, this T-Mobile no, But we're of hoping be will mean,

Now, Sprint the primarily States. is United partnership for a

we something. in market focused U.S., But on Sprint. other So, think areas, pretty do in I we're might the

Aman Gulani

it. Got

Okay, received question wanted are for just from then how market? sense is of Ooma being And Office just me. by a sort the features I the Pro last to new tracking. get how

Eric Stang

team have X,XXX And we customers them. on every not adopt Yes. we what it, numbers keep and think to base get that. the something months know industry quarter came we've have and of a that perspective the as on it, to really of like using it customer our that this, in is some And since percentage we isn't ago, features, go good to it. don't find then waiting going going be were a sales launched model on that it choose users training we but on I And forward. from for out We're advanced to like been give that'll But couple part them, our I -- explicitly it. uncommon you I

Aman Gulani

Got pass I'll on. it it, thank you.

Operator

you. Thank

of the is to from Pat next come Walravens, Our Securities. line going JMP question

Joe Goodwin

This question, congrats on is so for for Thank much Pat. you on Goodwin taking Joe quarter. again and the the

the now line, to in excluding has Broadsmart, business decelerated, curious, growth looking revenue down subscription at XX%. Just

Or As we expect think about that? lap we there model of business a you. line Thank stabilize that forward? level how you to going the kind acquisition, in revenue that growth prescription is the should that of

Ravi Narula

There Ravi. in I'll probably business XX% year-over-year around 'XX. subscription aspect least fiscal growth in to I That's of a is it right highlight. my say prepared this remarks, higher, at one fiscal guidance One, 'XX I XX% things compared Joe, on my hopefully. did be are assumes are will saying couple have,

growth of term I help those other customers up, some our I implementation opportunity do there we're year. rate. do in for opportunities, if feel at large on and is ramped year we early which customer large market, last for this in come while aspect because is things this us a you on QX, could the will large the Second growth with late look new working customer either And PLC believe or longer

those, something see Ooma Pro. I earlier, opportunities on as quarter. very are feel on feel Office we'll we one. to be Pro, have and uptick then XX% I execute So, start to do Eric And If But comfortable mentioned larger then, adopting with. that that. there is customers going obviously, Office is behind later some Connect this launched

our potentially services. could also those So, increase subscription help

are are then deploy. help ready large solutions can of us and subscription successful, lots PLC levels grow was ARPU there So, customer This larger And to and these we growth. have, launch customers. new our we

Eric Stang

a if user drill I'll today just and believe I can Ooma Over it, for more they to business those solution the get a better they pay Connect And on our one around get of at look a comment you of Connect. connectivity for all little on XX% what down speeds line. runs Ooma DSL there, customers. base be

about we But out the take some way. any this new for Ooma get new refinement. often our double now, can double With for and to with a a that And when time. type in business Connect from you sure fact, else. we're see in excited solution. they'll pretty we're the potential environment, we someone And mean solution, So, own it's have working I'm and small internet be of a potential going Also, play. lot competing play that to product, cable

been station we our it's base a And all strengthen new remote as and with get to us effort pretty advanced antenna Ooma going big even market. adapter to It's a a I latest of this good is strength, signal the And is at to The on custom also part. forward. so, think go LTE design technology takes significant locations. module step very that around advantage

a prove potential. So, these them. take we're lot we've a on how I that's us think little to going to it. guidance able got But time viewing then It's to better get be we'll of and things,

Joe Goodwin

Thank the color. you for additional

Eric Stang

thanks. Yes,

Operator

for question. time one have we And final

line & the Dougherty from Company. for question the Andrew come King, of last day Our will

Andrew King

my for question. taking there. Thanks Hi,

get wanted I spending a your in a where to year-over-year be you'll lot to as COVID-XX. So, predicting growth, confidence just that of result of this you're of bit your of the slowdown able XX% competitors a despite seeing idea hit a better

Eric Stang

been my that to projecting we COVID-XX. affected far, vis-à-vis our specifically I side Well, think what company. it so of channels so not even are business the aren't of be that I'm people speak. tell traveling, And to strong, can competitors not business routes if I by have market you and on the can aware has to market

there's is we I turn been have concern that at of lot about anything? to of suppose given in want COVID-XX lot we add I knowledge time. So, don't a a we going into. believe you do this to know Ravi, the but I we've forecast know what think it, a with

Ravi Narula

I would.

one other Just thing.

very years, channel, channels, of Over Sprint the of some it's Andrew, we our other opportunities. these talked have couple of and resellers ours, built whether last sales about diversified we

gives that So, that diversified we confidence have specific channel depend also a upon thing. doesn't that us hey, very one

looked also. guidance done We So, part about our XX% can we at supply how have and look feel we seeing 'XX comfortable for as of a range. little and planning analysis our fiscal at chain our

are and have we for we this well a we positioned feel So, rate. places, are -- number given looked the challenge, growth that at of

Andrew King

sneak farther build impact? you if quarter? And you going than are just mind, into you quarters this Was seeing I'm many your that? How it of COVID-XX Or Okay. out did quick follow-up. a any don't next to guidance it

Ravi Narula

supply don't where six we come looked happen good looked could big the next the in months for at in. we know They supply much months situations, six a will question. of but could three We to chain issues have be our months. the three term, have what to at next position but It's months long

Andrew King

Great, thank you.

Eric Stang

disease last about infectious did I'll bit this that. actually add I talk week. to a little with doctor a leading

end that have and and to be it the to the most think now see then the expectation back it's going the going of next come sorry, tested going summer be is here. U.S. is winter, I you you're April, and strongest, the lighter, to between and people just easy also, next going virus, if I'm fall, has winter. of -- the virus. for to this it's not done not I'm much on think testing get And I But then

slows places already But it and RCMs in could people assume not for the and part, and know. going spread, think customer preconfigured A most lot through lot more and are to by to of for And that going it's inside be down on a wait than They've economy is Asia process, our to are, most we have are quarantine the And to mild large have to people symptoms. have see likely RCMs, And back our like just virus in work. process we're be so much so, get it you the I that sales going an who something such. products the through to process largely out to particularly also, affected back producing. do the this. ship that such, been how

but it going of next die that down summer, with it we then I My position point a going when the get fall, in again be better through to cents. will lot the So, next two to we'll think and through with it dealing we're deal months. couple be think to It's U.S. the comes.

Operator

to like Thank closing over to you. comments. now turn for I would Eric the call

Eric Stang

listen you, taking to call to everybody. Well, time your Appreciate today. thank our

my can on remarks, time is in much. we said for year. results last talk you. we forward focused driving I And with at you next to look Thank XXX% As Ooma this everyone the very

Operator

conference Once to participation your today's again, like you we'd for thank on call.

disconnect. You may now

Ooma (OOMA) 5 Mar 202019 Q4 Earnings call transcript