OOMA - Earnings call transcript Q1 2020

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Operator

Good afternoon. My name is Chris, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Ooma, Inc.

First Quarter Fiscal 2020 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. there a remarks, session. speakers' the will question-and-answer be After [Operator you. Instructions] Thank conference. may you Robison, begin Matt the

Matt Robison

the Thanks, everyone, release of Narula. CFO, Good accessible of our The today fiscal today, name the ooma.com. Chris. is are day, at closed Matt on GlobeNewswire. After Company's IR via active year one on webcast quarter is website, section website. the is issued call available and Eric the With Ooma XXXX release the of and first be for will Ooma's Corporate from market least year. earnings for being me is Ooma's of press CEO, Ravi call link Investor Relations Robison, of This of Ooma, Development. also My replay and call Inc. link a Director welcome here This Events to live page and Stang; a this

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

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

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

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

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Eric. Okay,

Eric Stang

year-over-year margin revenues revenues dollar net In our business a of continue we million XX%, a industry. X% based this which grew QX, line seller our million, in representing revenue. significant of earnings I'd our say And terms to to also the Subscription achieved progress FY with year. key Thank Broadsmart, results acquire continued is XX.X XX% medium revenue with revenue services you from long-term of we from on All balance revenues to our QX plan to build subscription Ooma's initiatives but our our excited outlook strong potential. and I'm I'm in of of of excited others we services of our year-over-year call. residential subscription about UCaaS and announcement Ooma Rate Welcome enterprises. outperforms about with QX the pleased first, growth, that vast the in this to and have of initiatives today believe solution large of key more both I'm we everyone. report XX% on you, like with financial expectations. customers strong we the feel to year-over-year. to services initiatives. Broadsmart for moment, continue update QX Hi, a I'll you in proud year. profit in, momentum our on about quarter, for Matt. with we 'XX talk quarter was In grew for to and growth retention customers majority our planned by another XX results business a

enhancements rounding new business, specifically pivoting end-to-end needs for then first previously, small our FY the which is undisputed core discussed Office, set product feature to platform. For progress, SMS, With this eight capitalizing we've is the business which Ooma as we features leverage will and to report of services Ooma on year, including goals we pleased the working of can charge features our include additional our on believe applicable partnership including and will key out new we revenue. launched in strategic our receptionist. to drive now to of that be leader development solutions revenue, new I'm a Office this each 'XX which our start on with designed we for market since on segments year additional virtual the actively Starting we blocking with by to Sprint. call new strategy, solutions unique the are fiscal target that our the office this intercom,

through in now marketing On sales Office productivity goal for the outreach. sales this Ooma so and increased front our sales team to our we and QX, investment is leverage increased

and Ooma new the channel to and label systems quarter. develop is Moving added partners UCaaS in solution which QX we more processes we complete continued several to in for the serve white Enterprise partners, businesses, our larger designed to

be We harnessed needs significant customer a unique customize by to solution unique our also ability for overtime. a which customer could for opportunity, us for quite individual creating

Our align also this strategy efforts with our opportunities. to for vertical segment target customer selected market

sales part this QX of goal our and more we of our marketing primary in expanded team customer driving year engagement. as Finally,

this Ooma to Broadsmart's maintain East Switching and tie platform, year. activities, our sized welcoming of application partner camera, process that to of excellent this our We of report this expect sales in residential Our with year. to of larger the as our and plans take the segment Enterprise wireless along Broadsmart Broadsmart opportunity hosted video of solving progress that term and create customized Broadsoft-based and the structure is versus we acquisition board of we partners to to customers step Ooma channel fits goal now complex and serve solutions scale Beach, and and shipping now has we Ooma of introduce a our on customers even presents in of enterprise to design the near be into the to tailored acquisition, West number our market, team recently to with and Florida, announcement of in to customer Ooma. aspects maximize with enterprise this solutions. strategy. strong the I'm Ravi years for customers will the will growth operationally initiatives Smart and connectivity, partners. And voice the access the balance our as Broadsmart to pleased through we that to These a acquire recognition Coast report conferencing, phone collaboration, set in to combined home provide in of and on the differentiate expansion, gain milestone large with Broadsmart color strategy. QX With relationships team good the This enterprise goal an business. in in Broadsmart retail build Broadsmart's team on integrate range low in directly I a to Headquartered to features our and also Strategically, broader to experienced capabilities understands Palm our believe made more that to take business acquisition service, is provides maintained great team us leverage way the a adept value gain segment customer opportunities service. a low time will trunking channel enterprise Office be deployments improve is existing into strategy Broadsmart in for key forward a more of with differentiated end enterprises Cam with this cost and this our selling bring SIP outstanding is fiber customers for security Broadsmart's audio first to cost select web ongoing network and complete big expand a solutions. to competition. UCaas. Broadsmart's moment. look which enterprise on with business about financial the platform, well custom solutions, our with very for XX I'm professionals calling Company location an with segment, next us at economics and this connectivity opportunity substantially have today, begun The to with managed align a to launched mid-sized solid calling

product for have accessory module work with a solution And solutions launched utilizing ours. the the Internet will to service. future, XG standalone of in So integrated we other out far bring XG as we an

As busy be confident believe will segment. completed, execution. a strategy us all integration we and of is extra a Once sound acquisition Broadsmart mentioned will this most by I move of this quarter, the enterprise in on the us last have we I'm and powerful keep focus year is our

ultimately outlook final the with in comments turn the Ravi to growth bottom our your results to proportion and our can forward, obtained from look gross R&D our and continue to we with believe developments, we gain these on leverage we and revenue we increase we margins, And then more before improve discuss customers, can I'll questions. return increase over and we call As drive line. and now the spending. detail business of G&A take

Ravi Narula

Eric. have and guidance additional you, grew with a million afternoon quarter On million fiscal was fiscal loss XX%, services the can press XX% results 'XX. 'XX million. Thank quarter services be revenue from with our found Ooma from stock amortization the for performance Business. reconciliation the primarily intangibles $XX by excluded certain strong $XXX,XXX, our million grew year-over-year our investor a year compensation, the revenue grew also I'll subscription range for year-over-year Ooma of Residential contributions and of financial outlook quarter today, statement on available The we based earlier provide our of non-GAAP All section financial we earlier items review basis, of results, announced full are $XX financial website. Broadsmart, as GAAP in except start first achieving I'll of charges. the second relations with Good provide the of everyone. Starting of for issued quarter expenses $X.X while fiscal Net pending data and of and financial litigation today. release quarter year-over-year, $XX.X end a to driven compared on Ooma which basis, the such of acquisition income a then first 'XX total is the non-GAAP services and ended about top previously details financial on quarter subscription the million than our the $XXX,XXX the revenue combined Revenue Ooma $X.X Business issued now Business for of or of guidance X% issued basis. XX% and XX% in XX% to loss. The Business prior revenue Ooma subscription at revenue revenue is first and revenue same to period. better the total a for grew previously residential during quarter, to year range the

'XX, fiscal was in period some first from quarter, Talkatone the year. Talkatone the in business, $XXX,XXX During to ad quarter Overall revenue by revenue. saw we of largely softness revenue compared our the last for same million driven lower $X.X

year-over-year will provide was quarter details With $X.X For 'XX, fiscal of I metrics. on on our a revenue product that, basis. some million flat key the of first now customer

to at for quarter increased the users XXX,XXX period. XX% XX% the users core from now accounting end end the prior total year XXX,XXX to in with 'XX, fiscal at period, Our year the of users prior compared first of up core total the our of of business

color to on primarily gross I margins margin subscription the for and gross to quarter 'XX achieved average that, prior last period year-over-year 'XX, for to to Subscription and negative changes $XX.XX now increased for fluctuations quarter the Annual a selling compared retention the mix negative and same in the XX% charges driven due is improved first year, $XXX in Product year-over-year of and monthly will the a 'XX XX% of by the at margin. core same for paid first was quarter period, quarter increased to the the was change. quarter prior profit our net quarter gross year price, fourth year, fiscal sequentially XXX% first the end improving last user rate are increase. to first from XX% quarter. average negative primarily of compared some blended We XX% Our year in XX% XX% fiscal services subscription period fiscal revenue compared and With in dollar services 'XX, million provide XX% which other to revenue fiscal XX%. increase. for compared first for tariff. margins the $X.XX the a exit recurring per These

uncertainties future and the the Given around we of our impact monitor on current business. closely tariffs tariff, to continue

up the gross overall were Our XX% prior in year the first quarter. margins XX% from for quarter,

expenses. operating onto Now

a $XX for Research Overall, quarter. a were year. increased $XX.X fiscal grow marketing and quarter on marketing to of year-over-year and of compared First Ooma to quarter Business. were sales XX%. sales $X.X we operating expenses $X.X million, and as from our Development first million, of same 'XX million 'XX continue increase increase a basis, year-over-year fiscal period the to programs $XXX,XXX expenses of for the approximately last increase G&A $X.X million, support the year to million, expenses an expenses XX% prior

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

buildup the Cash end cash in million sheet of of no Now cash generation $XX.X the from of use first with million XXX with This investments up payable, and some we the had operations the approximately quarter. approximately approximately to the largely in inventory. prior metrics, 'XX. with cash XXX turning contractors, accounts of quarter. timing fiscal of year $XXX,XXX of along prior payments other to accruals and used was ended of debt and in at was quarter quarter compared $X.X year employees of by driven the the balance We

Now, to financial details aspects earlier the Broadsmart I like provide the would acquisition today. of we about announced

is Furthermore, one the purchase represents Broadsmart to our XX for months. under strategy. become enterprise Broadsmart We for times other and channel paying cash with no expected for acquisition. especially of accretive an overall expect on growth in this the revenue We Ooma, payments Broadsmart to the our next there of outlook complementary Based $X.X are million of forward-looking value contingency believe Broadsmart, we strategy will revenue. acquisition Broadsmart regards be to slightly consideration

focus efficiencies we on and synergies. generating As scale

in to XX provide we of impact fiscal year months and expect now second transition the 'XX the our the should have We to Broadsmart approximately next X so days, close 'XX. further of guidance full for our from details quarter fiscal I'll guidance.

as charges, related stock-based adjusted litigation been and expenses acquisition non-GAAP amortization for certain other expenses. of Our has and guidance such intangibles is compensation,

includes the pending Additionally, near-term. Broadsmart close expected of to the the this guidance acquisition effect in

be range fiscal $XX.X is quarter the revenue to 'XX, million to $XX of million. second expected in total For

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

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

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

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

We have weighted outstanding assumed fiscal average for approximately 'XX. XX.X million shares

Ooma first with our results of driven Business. by quarter We are pleased growth

positioned we to expanded to as believe our our go-to-market I'll pass some for well that, having and products back forward, we as features strategy. Eric? execute With closing well are Going Eric remarks. enhanced it

Eric Stang

Thank you, Ravi.

we well growth Ooma. we and pleased marketing, small at brand residential and differentiated We're we questions. discussed are solution our that by innovating our now in enterprise sales strategy take trajectory. name now the we happy momentum. another complete strong made in are increasingly business to acquisition strong continue to segment With quarter pending now our the unique of and to additional new Thank areas the believe position you. the segment, outset, even we're and building stronger has As which our our And for are for Broadsmart positioned in the we scaling segment,

Operator

Bhavan [Operator from Your with William Instructions] comes Blair. Suri first question

open. is line Your

Bhavan Suri

obviously, just given I to front, the on guess this first announcement start morning. to start I wanted the acquisition

then Voxter like I've about you the got more was it side, strategy as not on around what's think side, couple features? going with us adding are a competitive the Help customers? like And more but follow-ups. understand market the think enterprise acquisitions? up channel you Is there, infrastructure of Butterfleye, environment about future today progress thinking acquisitions, more Just and you as importantly sort

Eric Stang

first talking announced, Well, us we is the about very today. logical a move we're what for Sure. doing just this with acquisition

have can And things customizable is and exceptionally for service the enterprise customers. a Ooma We unique Broadsmart do customers. to larger very strong platform Enterprise, of of providing at customizing individuals white-glove and team deployments

I enterprise can up And so our do of we to leverage think about And, can bringing Ooma, but our we part strategy it, that into faster. in team more scale direction it's together. talk and more

your second have Butterfleye that. about was I the think missed may question camera I or

Bhavan Suri

maybe so bit. Yes, strategy a little a

Butterfleye, Security, about So Home you've I added something say is guess maybe you've market. so an to over sort adjacent got talk just of, just which

now a of to from to and and company at it. sense Regarding service, you infrastructure up added? Ooma you maybe Voxter you've is feel like thought I'm do be an trying it you as just of Office, market, map. just that I brought an a move kind the Ooma provide as of acquisition but look look you area building to feel Telo around what you perspective? you're sort at white-glove core areas What What strategically do would at company, look that to specifically not needs at like

Eric Stang

minute Sure, talk this company us what and special. and about let a step just me makes back

in opportunities because be core easy in the business defined with a solution small be building now to And UCAAS for and to led for Small curated number use too more for need and and business service that we we anyone Office didn't designed for more it solutions with and one is we're to Business larger completely elegant And residential the Ooma now a simple to phone their to into a compared small customer on ranked We're number solutions owner. that us that. market there Offices to Enterprise, think be out platform makes capabilities customization the also has sense else specifically segment really ranked have building and We Office Ooma that applications. stretching the try Ooma Ooma and one customers. customers customers we're type

And so Office with marrying up was very a Enterprise move. logical

but of And structure faster manage of customer. said of board, solution solution on great we're with efforts platform to All of how will significant no business, and meet capability us spread and a how for synergy. go-to-market frankly. can Broadsmart, across It's to the the previously, on and Broadsmart having is pending we deployment, it the to, find full The acquisition acquisition allow extend of fantastic take can you into farther being target, both whole do, do platform those customers work not and it's marketing how to team be what larger the our allowed their this just the needs at side our them. them the you sales you range now that. that able on and the us But is enterprise bringing board activities

capabilities And we're those that that so it small there. have pioneering that, marries the with I solution we up team the think enterprise and we've

to platform get platform, Now to was And capabilities it's we out when wish. actually platform our field features designed we to Butterfleye calling and the there units to designed have unique with for the Residential, update when be never new be have services. and we all just a capability the a in

much operate so platform Home think not We're can it, market. priority perspective, operate growing a space. of calling same It's do as many And our ways. to us. for you if way Security know, platform And Security that attached monitoring platform that what's a completing the it onto essentially and stretch extending always that's from you got excited calls. to have is we we the in an that sensors But cloud second on now video about Home site what business on it's been in we the the happening can you've a to the solutions and Residential in

really at look install moved Security be name, and with momentum retailer so will brand have residential the we we capabilities area relationships, side nothing to able XX% more little that But and side as We're acquisition for with more our that talking to our in perhaps revenue. than This Home we're strategically I about slowly that. of Security doing. company. leverage what could on a don't lot growing we reinvigorate an frankly, the out our we the to base, we've our need first bringing And of priority a our the business Home field on say But, of than acquisition as bit frankly, our do to is fits acquire -- there's side business strategy. business. because residential want total growth, isn't to there a to our regard,

that. capabilities successful. need all to that that in to can was core But go many the to we will on that us when price we here. in great the house see over a than differently be good we just lever like And we think what have platform forward not forward. And have there less We out end-to-end else take fact, be an is strength a to opportunity frankly up what to opportunities, fact from step our looked they acquisition it's years us from revenues operate and diverge we our like anyone has built want slightly the that we

I So said I that's for you. question done hope I lot. know that a why it. your answers we've

Bhavan Suri

channel as actually quite, the That it was touch partners want helpful. No, quite I well. did. to on

versus So, out but partner for I sort about just both of the on the take Home percentage saw the by VAR channel? co-branding just Enterprise Broadsmart progress and respective the on a channel you of channels. from guess there but and growing also the you've Security revenue channel, both labeling talk talked white me the expanding second,

Eric Stang

on it, highlight And believe even make what it. has the telecom business would can business bring that and not Yes, small bit to is right small do others to productive business tremendous but And team us, I for level because what at channel. At platform. bringing our professionals and it sales several them going selling developing strategy, and lot each a and say it that it's and augment do growing this a IT the bring do with we're distinguish the go in you direct part we grows we We often level, farther enterprise leveraging off to have that's partner level. particularly quite frankly, small people and between into the a it little leverage part well a few a business we steadily past to sold we have on the I have quarter. channel we channels of a every have to what of to on key but or at our

strategic of where was could my way. work of systems about move conference they in year how you I my some what -- infrastructure reseller, channel label white we it white unique a traditional since going have to way, And a in to preserve will things to to I of more do we channel over and think On things kind likely talked of believe white several spent and strategies, Ooma -- have lot And deep turning the start themselves Broadsmart, one to see my move they our more they year the this start the is this with last network and relationships. traditionally have there I the be of are type telecom be label brought resellers with we're partners, for enterprise my goal think side of the white we that label the is we label dial. been year. relationships -- partners to position XXX% channel partners last of the And is to in here we one customers. our recall of the this to sell think key believe This able fiscal of build have That up and cloud, is what how And we're a of our on but you year, do dilemma on us, the is that and leverage fiscal this last we one I effort how very call, channel acquisition of channel the channel willingness typical side. our have that you and been those might done it to enterprise who partners faster. that and the significant we've developing -- nascent well been since facing

Bhavan Suri

one last for me. And

front you sort competitive kind Ooma phone, which they've and successful the IPO Office from is XX% a of On X% obviously, targeting Zoom of type sort of to had Zoom for got environment.

so, is into? that of anything small sort competition? is with the big moving are wondering, would it trying wondering low like I I but markets And you're I seen run there environment am end. see was but you business Ooma Or of haven't Obviously sort if sense any stuff just and given something where competitive sort of the specifically? how just there market, to started, Zoom from was you there, looks low Office in So up end core at Voxster you the where

Eric Stang

this not I not worried business for in competitor as that segment, all at them Sure, I'm have not about us. easy having seen What them buy space a have contracts, our administrate we use cabling, And to ago once. small in space into business it. first built in and now has several more business than phones, all our got you when accessible, of And days experience frankly PBX to don't in a the cloud development if task a it's small small to low to without the partner, without of we VAR without more run complex to years make Ooma actually, cost, to building solution IP platform. a even and want to setting buy having goes without sign started way the a decade a them. having And back

have that for don't pretty anybody segment. us. excited I compares what And about so, think we to I'm

on very maybe in and future, them some in growth to spend we sales marketing feel strong how to is open at us point it. for I the solution but see we'll market And really and that have want a much based so,

Operator

B. Nichols FBR. Riley Josh from comes question with next Your

line Your open. is

Josh Nichols

your thanks between this with well bit our VAR as ask, the generated this to the VAR Yes, taking channel my Look new economic little as talk previous I bit conference efforts a acquisition. push week. any about Could to catching little want the question. just internally up for versus forward for for at payouts sales? more as you you a channel differences into

Ravi Narula

economics some and from partner you to the couple points and -- this. a data Company. share the Josh, a Ravi. give you channel partner, Generally a this the I'll have for between of channel is speaking VAR customers between in

if gross a customer. the at don't So, we the spending. slightly sales time lower to, over same go are But and have same speaking enter to go marketing the to generally than margins you the direct

So basis, with channel from that to a get them. if economic or I channel a period, I partners. pretty I But margin whether sales VAR or a share direct on I'm at payback gross customer through look a the happy

looking we whether this the period, for. payback acquisition a what and to customer to with coming partner paid lifetime who the the have it's coming basis. pretty were or economic were Then for VAR we good saying, did is customers Broadsmart, we pretty happy is for are analysis direct So in, a same we at the for through these model price value

we with are think paid going I channel the this happy the overall, partners So, -- at through with forward. the for Broadsmart same economics, we've time

Josh Nichols

or payback potentially customers holding period just then to bit? customers, more relatively you lines? of the down kind study little that. a get with customer is And value follow Or coming you even these ones specifically on higher business seeing the up Are

Ravi Narula

couple things. question. say a of Good I'll

into, For are into investing new get XX longer the we're there That's the customers. costs the are last payback XX and have which those continue where we the happy payback and in are those a in, higher, we've to spending mature, period investing customer as payback performing a happy more and been pretty But more channels. channels to expected to over payback our channels, higher, the channels period we make very we we do period. for But channels consistently. been we period, All existing months, And acquisition obviously, the channels. are new well developing is as will mature, been investing so have longer believe with we improve. have they payback the but the with creating period

Josh Nichols

too Good shipping, I'm much fair to then say? just for there's not for in the launch about fiscal guidance, question last that's to far And as way it Is hear Smart for that year. Cam the factors this assuming but me. now that as

Ravi Narula

that, not some fully, since it, obviously Yes, launch expectation starting there it. is but to we of it's are

those just recently. conservative shipping So, to more I from started we more we is there upside it be say have given would

Operator

Michael Latimore Northland with question is Your next Capital Markets. from

Your line is open.

Michael Latimore

Would or sales or channel Ooma person they Can sell you like, an would Ooma opportunity. on they in partner tell sees Enterprise us, just they XXX if seats Broadsmart? now sell had

Ravi Narula

We'll sell to might them them even sell It you. with Ooma best needs the fit customer. whichever the is going of honest to be Office

I We would as asking. is have two follows, capabilities was is Ooma Ooma Office you're what which they customers with over what contrast does. Office the XXX I needed generally, seats. It's think the because But, all

is to going specific is needs. to Ooma flexible something Someone need who's for going utilize that business and customizable their Enterprise

the things a if kinds great the going the integrations them And we're Broadsmart saying not But flexible that's Enterprise interested Broadsmart a to wholly time Ooma Broadsmart with have partnership a we Enterprises all more a then of enterprise the customer needs, obviously go for long might going from that, doesn't targeting be center. But contact we're And one one Talkdesk label, But other, partners the customers other for offer. platform switch. the the on advanced be be because portfolio, supports tell that competitive It on can UC that side. you in been a and to that they over than rich platform little and a to platform more as the we not little Broadsmart and the need pricing white to we has is other really a we're doesn't that bit mean working to may and particularly say have such. flexibility what with. imagine owned more it's if of us. We with frankly, they're have developed

this see we'll So, how develops.

Michael Latimore

at of this sort -- Or And trajectory stable Broadsmart kind the point how's or what's is that there? growing? the of revenue

Ravi Narula

Mike, question. is This Ravi again. Hey, good

manage just opportunity recently, were, they churn believe had churn down. at going reduce in to worked some look churn they really still you there's the if but past, So, we they they but some -- that they the hard improved have the And to churn, forward.

For so to flat, far users having. new they've in were the last replenish couple they of periods, which the they relatively were have churn adding been been

integration look at and with our and the term, either Ooma I having channel longer think options Broadsmart cost Broadsmart or synergies to grow give Enterprise low forward. I strategy between think revenues we to going So the Office with the help at Ooma of platform, Ooma

Michael Latimore

use or they the then, And BroadCloud BroadWorks platform? did as

Ravi Narula

host They their it customers. for used BroadWorks. They

Operator

Instructions] [Operator Your Suisse. McVeigh next question is with from Kevin Credit

open. line Your is

Kevin McVeigh

you. give prior the dialed to current XXX guidance a how Hey versus Great, of XXX? guidance, much XXX of the to Ravi, sense thank revenue into the XXX you can us Broadsmart's

Ravi Narula

at guidance to Broadsmart. by largely the is change this The big time driven

change right it after be slightly paying seven of is with current longer sometimes Broadsmart. as like us them guidance. assessment doing baked million should but help we'll Cam this by now in is Smart probably So There with better, or quarter one-times to probably expect revenue, expectation some from Josh of the guidance. But is, term, but logic is much can one $X majority revenue have said, we of revenue the plus multiple the guidance to increase not quarter last of I close in driven the the -- this a a our this for too I of into lot, eight I not And months the but under transaction the there. this think

Kevin McVeigh

you any just any lower And that earnings Broadsmart with tariff end costs thoughts down, Is it like impact. on brought the maybe or the the associated around related some looks the thoughts Just that? deal?

Ravi Narula

$X previous Yes, guidance the on million. was side, loss million net $X to

But like comfortable will I some this or those under be accretive things that us synergies driven expenses, even X XX upfront transition to months an probably some next it's investment there in assessments some feel six the driving do some again. Broadsmart is that's and months it. money for X spend have to in sometimes than that. make initial it's by Now, to And

Kevin McVeigh

decision sales force just the then the quick, in the boost what Office? real to Ooma And drove

Eric Stang

been great we faster others than team. to to we're year. opportunity think that do that, industry and in a We've are The this the continue growing And growing have to going have bigger we we see. want to

Operator

for this closing of gentlemen, Eric and now concludes turn remarks. Ladies call. Q&A it the I the over back will any portion Stang to

Eric Stang

in coming of Thank today at you look you of forward conferences up. and one dialing all everyone. Thank Thanks very our we to you seeing hopefully for much.

Operator

today's concludes conference This call.

disconnect. You may now

Ooma (OOMA) 21 May 192020 Q1 Earnings call transcript