OOMA - Earnings call transcript Q1 2021

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Ooma Inc.

First Quarter Fiscal 2021 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. advised conference be being Please Instructions] that is today's recorded. [Operator the now to like would conference to I Mr. hand over today, your speaker Robison. you. Thank Please go ahead.

Matt Robison

quarter is Matt day, to Ooma's Director call Thanks and and Robison, Ooma, fiscal Corporate IR first Development. of name Good earnings year My Shale. Inc. of XXXX everyone, the welcome

Narula. me with call CEO, the are Ooma's Eric Stang; On today and CFO, Ravi

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

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

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

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

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

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

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

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

Eric Stang

you to today. for Thank fiscal was strong call. to quarter with QX Ooma's pleased earnings Hi, XXXX you, Ooma. QX I'm Matt. a talk Welcome busy and year everyone.

of remained we global employees employees focused the Ooma's To pleased and QX, environment activities driven extremely business market new thank for our adapting today. you. also report strategy, I'm all in families by changes During to And the to stepping our up I'm on safe pandemic. to executing and faced. we employees, remain challenges meet their proud Ooma while the all all that

up Subscription million, were revenues revenues grew users from QX Our XX% $XX.X XX% year-over-year. business year-over-year.

response optimize to our million, our guidance in Our as QX both non-GAAP year-over-year net activities versus income was substantially pandemic. up the we $X.X and

to adapt our the of and conditions. resiliency solid to our our changing coupled business speaks model profitability believe growth, ability I market increasing with to

on XX, ended for QX effects April much quarter. experienced our the we the of that of our pandemic Given

Office working home. and we and moved to enable for We Ooma to through you both employees Ooma except unaffected, retailers Desktop wise, adapted Ooma shifted a flexibility user increase functions in marketing home would difficult. an a sales approximately savings expect accommodated modernized the experience network customers to XX% channels introduce effectively. through We and our we essential at extent challenges became chain online in Inside quickly IP few by more call emphasize but a sales managed our supply for to to to concurrently and in solutions. programs and work afforded Enterprise Office sales all of greater collaboration phones from launch video face-to-face and As were use largely Ooma of volume Feature our app.

it's more conditions. are changing in can even times. And to our services Overall, adapt vital these we clear market

announcements. While QX very and two for strategy April, implementing our this Ooma, plan In we progress a on made product was we made dynamic quarter nonetheless substantial year. exciting for

wireless internet. was internet ensure phone us a functions in our replace Ooma for low Strategically solution service. Ooma Ooma utilizes the fixed a distinctive businesses vital backup the deliver such to combined. to want and service unreliable $XX and or DSL service as first to connectivity service. as of that month internet expensive per is LTE Internet It Ooma businesses or double-play Connect for Connect, new want and Phone that both both launch for new market The advanced as satellite Office affords Connect designed

enable Connect more with later We in year. this conjunction plans services new to Ooma also have

Connect launch, since step XXX over toward Ooma running pleased strategy a in unique Award the Ooma Innovation businesses. innovation, Connect Internet complete also honors that provide April next the won managed to products contributions Ooma display small have communications Connect. for TMC Telephony customers our which infrastructure now recently solution We're represents mid-sized we and thrilled longer-term that that Labs and features significant We're technology. on XXXX improving

Ooma Desktop product Windows turning Office Macs expands call PCs app. conferences, April Office of from to Customers in featured new review Our faxes Office business the phones. are the to search directory, up tier announcement app into major customers. by This of the send and the year. this access can using our company work controls, Ooma recordings, launch was service second full of call app. and This expansion anywhere planning Office and our capabilities start Pro for In the step this regard, make attractive feature further and we more receive later and Pro voicemails Office to our strategy Pro bolsters more additions Ooma include

and into We plan region on world of year progress to of expand our during outside a also strategy made this North America. new the QX

then proof-of-concept for further us multinational of XX,XXX region completing with to after customer after number over the this QX, users in the You'll to only plan report served that recall a in with a a a roll of corporation. North pandemic. our caused timing of this end calls us leaves expand to by And at to users America we that start I'm delay in we back a short the significant new pleased opportunity the out open This year. this quarter proof-of-concept. will large half the

since constrained and enabling face-to-face to sales. of the place our branded Sprint, first rules took sales made effect the as shelter progress includes then partner, but we Regarding grow half Sprint's Sprint we're by good of QX Office Omni, that during force sales Ooma

and we this certainly sales challenges, element and pandemic merge but will a salesforce are in with Sprint-T-Mobile on X year Sprint economy cautious is effect of A are the out X in Omni XXX some imagine of execution our QX more new created roll new success changes at final and the to a and our and to big feel predict Sprint's securing as are them as in marketing to opens our on our and locations two plan though largest XXX know can users point, and large merger has XX sure their office happy with solution. over sales front I'm our examples, this pandemic To nonetheless to April will we the approximately T-Mobile we adopting have and and undertaking Sprint had have customers than we you took customers. execute the to is strategy next organizations. time. key customer addition, have this process the merger the very up. share Sprint months. including the In impact with difficult marketing At T-Mobile The economy plans Sprint- outlook it well-placed focus further in so and

in locations added approximately over about more existing to national further large office quarter in also XXX local XXX enterprise, have XXX this these users QX regarding added this to played a an we enable Referrals whom and XXX with grow users role expect users we now year with securing with customer We where in total. locations. we a key approximately independent brand

to are we be are engaged as channels all dynamic normal. prepared our in economy forward, the marketing we and our sales and activities returns sales to with Looking

times, We customers the services take with from have our even them are but want or and communicate computers these mobile in app covered. work phones to our also anywhere their their home, believe products desktop our via apps, desk we need greater in

And up telephone Larger their businesses we of opens are businesses environment. this new have interest. small re-evaluating the via as increasingly believe work operate further As we solutions. for online, and well our opportunities changing needs seen light in

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

Ravi Narula

afternoon, good Thank everyone. And you, Eric.

these team challenging for the the and Before I want times. my I wishes to start, during hard I work beyond. best safety thank for want focus Ooma give and at Ooma to everyone's entire

$XX and of extraordinary start driven and the our had the financial I'll XX% $XX.X second to issued for orders, quarter we outlook strong year-over-year grew again our Business revenue once range Ooma in XXXX. basis, first to within stay-at-home then in a full guidance prior XX% for now year million. by in of our created the total previously by a accounts a results financial performance review year fiscal revenue this quarter the XX% On that revenue $XX.X quarter. pandemic provide of Despite million With the Business. circumstances achieving with Ooma million quarter compared

range fiscal significantly $X significant Net strong our operational we profitability issued million; first was optimize XXXX during demonstrated quarter efficiencies. than our income $XXX,XXX $X.X million structure within focused to on the as higher previously our leverage our pandemic for of expense and guidance the of activities

effect revenue Business normalizing in the on acquisition revenue. revenue revenue both the business grew residential QX and total XX%. the basis, of revenue May Subscription Residential details year-over-year and X% year-over-year Broadsmart subscription for a XX% made year-over-year or compared with year. when from Services of of for was XX% XX% Subscription some year Services Services on prior and growing XX% our Subscription quarter. Now last grew combined services to percentage and as a and revenue

the million first $X.X to million revenue $X.X was compared Product period. the quarter for year in prior

by impacted affected were April, of as number channel user and March During revenues a Buy shutdown growth. and orders, partners the which our such Best our

period on the from XX,XXX some of had customer key users end of We our year flat XXX,XXX Now at quarter, end details the the at same metrics. last the X, million up first and sequentially. core

During users business marketing quarter, primarily to activities. sales we the and continued through add online

the a economic are of business residential we XX% our our end saw users total period Covid. front, from which users first the same the the decline in small are for XX% a last At However, up users quarter, by disruptions caused year. on the in of from quarter core

$XX.XX, and prior Services Office customers Subscription business quarter Pro up year user users. core XX% added or increased many monthly average the we from in revenue $XX.XX as including ARPU Our per

future. this foreseeable expect ARPU to continue increasing We the trend for

XX% revenue recurring increased growing year-over-year. exit annual to $XXX.X million Our

Our subscription quarter. XX% retention at prior net year the for to XXX% performed dollar rate well compared

April, impact and the percentage basis. churn March points by of Covid-XX annualized increased rate two to economy. we an our on believe We During the saw due on

an rates seen churn and experienced customers we we in closely April, for have our May. monitoring stabilization March are churn increase although and We in some

charges from Now and gross XX% related associate economies and from in quarter gross year-over-year increased first gross negative benefits margins margins. by increase due decrease margins negative driven of in on the of the were some were increase gross This to XX% first year-over-year. quarter Subscription growth XX% margins air Ooma was the XX%, of color scale. pandemic. a for Services for part the other and Product freight Business to and

future our We levels needs. partner's and have during to us inventory quarter the positioning meet increased our customers

the Overall, year XX% up see very total to margins XX%, in in we first quarter to our gross pleased increased from are prior quarter. the

some Business. higher million, Sales up our that the Operating the our quarter were quarter fourth the development and and or million from the The With sustained Ooma on quarter. total we for XX% marketing X% expenses target expenses our color operating year-over-year. some with level and revenue. for total X% revenue as will first We X% expenses or were XX% by were now $XX.X million $XX.X programs, or expenses I sub retailers. of XX% revenues moderated of and increase marketing million, driven marketing XX% Research our year Sales prior for promotions sales at activities expenses $X.X brick-and-mortar of for of flat year-over-year down down were including sales had of total quarter. last from provide year was $X.X year-over-year. R&D expenses

million G&A expenses or compared the $X.X year quarter. were $X.X of million revenue X% total for to prior

QX, During year per $X.X share per compared million a $X.XX our quarter. share of earnings the prior to loss income resulted diluted net of in $X.XX in

well of prior the or investments is fiscal ended payments and Cash QX million quarter. fiscal of the goal of We million of quarter. EBITDA of by million debt. cash total quarter X% used was a target for the significantly midterm $XX.X revenue EBITDA the and from tax first quarter in of no driven the For This of with adjusted was better X% of annual XXXX during first usage $X total year cash to achievement prior the ahead $X.X with significantly and total other for $X.X million timing versus operations loss our XXXX, of year $XXX,XXX revenue. improved of

first with side, and as spending On same from ended we sequentially from quarter the managed contractors, down XXX time last XXX employees headcount we and contractors. XXX the the primarily at our our with up year

highlight key areas our focus some financial our I of to provide going forward. I want guidance, Before

to I to key we of situations. as confidence and our cash on impact flows, the as on as have cash am on base such solid profitability First, positioned continue pandemic position customer growth, assess issues trends well and the customer we us business all debt well are to that the pleased that which supplier highlight churn gives hand. of and we and with no diversified large weather a the

stock into we and quarter fiscal XXXX be $XX.X second Again, for guidance. macroeconomic as been XXXX of our the to compensation quarter amortization has our to range and based non-GAAP After adjusted and on taking expect $XX Now is guidance revenue full the intangibles. such year and of the environment, current fiscal million. for in second social to total of account expenses million

million diluted be $X.XX We net in expected range expect to of to Non-GAAP is $X $X.XX. second to million. the non-GAAP between and $X.X quarter income EPS be

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

the additions into moderately guidance year. of $XXX $XXX customer range This versus the for in around of year revenue range taking decreased targeted situation For impact to our due full fiscal XXXX, given $XXX to XXXX the growth current of million churn. churn uncertainty previously million for the activities $XXX XXXX we issued are guidance Accordingly, to user million. to expect revised terms takes be and of for customer a approach and general and fiscal we total in customers, on cautious million higher sales lower the face-to-face rates its account full-year fiscal

have a assumed segment. and on for to our approximately business growth little Ooma we Additionally, basis, revenue for very XX% year-over-year Business XX% our residential

non-GAAP guidance We $X expectations be in user of diluted fiscal with profitability increased income net This guidance to this range is in of fiscal of $X to back growth million in now half EPS for be the of and versus half million first the $X.XX XXXX $X.XX. of the million in fiscal expect to Non-GAAP range this the the year spending assumes million. expected of and $X previously $X range issued higher to to year.

basic XXXX. million diluted shares XX.X We outstanding shares weighted weighted fiscal and million assumed XX.X for average have average approximately

generate flow to expect fiscal cash year. from during also this operations We positive

in the of the and executed we well long-term quarter in summary, the In confident strategy. our remain effects in of first spite pandemic we

Eric With Eric? for that closing I will pass to it back remarks. some

Eric Stang

Ravi. Thanks

this Our beyond. with us current the perhaps the going will be pandemic that economy and gradually while business will up effects view through is open its and forward, year

Although, also money. solutions cautious work help the believe our more our we often but we not plan businesses only outlook, save to be flexibly, in

these as to strength customers As value we in core the forward, bring the we look times.

strength core range of is capabilities. Another our

set, expanding Ooma with are small differentiation. Office our our Pro tremendously internet Enterprise ranked satisfaction to solution customer in Ooma Connect integrate new customer scores and number residential one And both by business and Ooma Our customize feature ability and extend our it Office and solutions users with themselves reach high referrals.

opportunity strategy over the Operator? We is believe our significant Thank term. on can you. we and capitalize long working

Operator

Instructions] [Operator

Nichols Josh from is question B. Riley. first Please go of The ahead.

line Your is open.

JoshNichols

as on Glad profitability ask about see and this that didn't up is it that thought half question. starts thanks the company's that's to percentage offerings. at R&D second to I given like quarter. to leverage a or my that hear to of the the the a is for launches Yes. that maybe to in with company line this remain strong the revenue bit for doing want good taking these quarter levels on bottom everyone's of going or the this around year continue trickle the Really thinking new safe investments capitalizing a to little

EricStang

Good to to Josh. Hi, talk you.

Our intend at was And about grow same this it grow sales. spend a R&D ago. quarter the as is rate we level it don't we to the year

some maybe And comment. Ravi to in would order. leverage has more that So mean

RaviNarula

Yes. Josh. Hey,

to three today, high to the but are we XX% in. So our if grow years, business XX%. range range we target coming we expect the given of mid-term as you of leverage at do look some we at Yes, the model end one have it that more R&D

time XX% go period to also. of that over it, down could XX% So could

JoshNichols

expand opportunity long in is big guess, America expected and the company? want of take front has for the I great of to I proof-of-concept Eric, or this, ask, to then, see How North demo to it the this outside company Thanks market. to

EricStang

that that's don't start I ready to couple this but it. it script little this done. half do significant than a have last proof-of-concept means quarter that be We longer of intended it we numbers will roll my we hopeful more quarter had of a will that than a got And out before I the work we're back work end the of maybe for some a think to in We can little ago I as had some to expect starting QX. at that all months, said to open that. this year; be We users. and started

JoshNichols

additional far as could I is And the you the quarter provide any of you you mentioned size last XX,XXX that up as detail seats. opportunity? know there to already

EricStang

company's North has in the large This been that in as never -- of America. new world this geographic area here is region

So significant could do with time come. be customer years is the for who we a and I too, over to is opportunity pretty think, this growing

So big a pretty it's opportunity.

JoshNichols

then on expectations the of in solutions thinking built then and management's question last the to I and upsell taking app top I'll hop like stance a line the that about? for kind pretty there around these company's Desktop Thanks the what's Connect, and in Ooma back conservative know Pro queue. the for guidance the

EricStang

as on we're take seeing XX% channels of question of Ooma much we've see our I'll late base new as it first it with second of then take some and customers is its we now pleased take XX% your other Office to and customers the since it. for say some We're channels with part It's using made of to progress about new about last come X% year. seeing Pro pretty the launch back connect. XX% customers, new and

of it entire so forward our double-digit as a drive to our percentage we go goal base. here And it is to

and So it more way. with just Desktop well important as We added tool that obviously it. the work time pretty home goes on. the from We're is are by an happy adding to app we as

a solution expensive start haven't customers I for are of we and already good in we and off poor solution. you feel precise yet about primary we and things. doing set So situations. to out think have very can pretty good and in those think market Ooma some what in goals it's it's good it. we're Internet across just On and we're tell internet the that it's getting where Good Connect, a I cases; types have success customers some who good coming those remarkably primary because

got a there. we So we've success know

customer we we for need having hopeful as is drive can we that think will solution what find also hopeful Ooma needs. other our everyday with can to their hopeful of put internet much great solutions go choice. with and lots we I a that learn in product well. base Connect and today will Ooma that we're today Those we're find and amount solution this And also value backup that locations we're see Connect -- a forward them they'll larger companies some as of for backup companies a better distributed internet

its it come quarter I'll early So there to got Connect quarter we've under on but days, color give is a lot after our Ooma with try next more and belt. another to

Operator

Mike from Capital. Northland is question Latimore Please next of You go ahead.

Your line is open.

MichaelLatimore

there congratulations the or XXX kind do Thank it? quarter Yes, through Are specific users great. verticals of there. would any on you. I took that channel? color come Any be on connect the on connect that they guess any nice customers,

EricStang

got some get expose expanding. with we're worked customer with a able whatever more did off either of not through come When we and and to now generation to good that as some channels customers They much kind started general we out sales know fantastic product they it face-to-face we're still that's marketing access call, a the as or came something portion already only our we lead inbound we Yes. customers tend I call with These with fundamental. so them size of to form for where start off and what internet this that larger levels and a little It's small We roll would would Main operate. a bit really of it. just of like have experience we to to where A don't base wants new we I some they far our Street be so location of reason lot product. are start through say.

can Sprint able depends T-Mobile worked today work we in It all be so to Sprint that efforts we adopt it we're are and with hopeful merger, that runs the but subject all out as no, the with we will create We the we'll customer have -- can of network it the far coverage. on this finding range has. product, to expand situations. our finding, expected. coverage network -- We're aren't We

MichaelLatimore

Great. just product think quarter And Subscription subscription gross the you -- on how should on the the in guess then fairly --in freight margins. was strong, the those second the side about margins next I cost mentioned we and product.

RaviNarula

Yes. Mike, this -- always is puts happens. expect Ravi. I small do which there's takes and

higher volume will have will on For time example, but the Pro some keep margins, margin the same those impact as help a the Office at calling side. adding customers we us on they

services subscription expect do around levels on the the QX for I to subscription QX side. be So margins

but margins, it have be have have we less less not we airfare but up charges freight improving good obviously from air do to it's On since built QX given the will or in do charges expect gone expect I freight function up products charges, they of lightly levels QX a overall inventory.

MichaelLatimore

Got terms in your way pricing in environment much it. having then you pretty it are change in consistent? the of to or of we're pricing various given is And the services, just

EricStang

to change pricing. any a need made of strong the we note been haven't We've to strong felt haven't always value a changes market the -- it. in and We provided

MichaelLatimore

Right was in revenue the and one, What quarter? Talkatone. the just Talkatone last

RaviNarula

in down especially gone It $X slightly given was had and around April. March $X CPMS million, below million

had $X an was year. was the million. But expected million for below iota it So $X we

for so track of nothing on are we in that, think I Talkatone. big terms

Operator

from of Suisse. is Kevin go question ahead. next Credit Your Please McVeigh

is Your line open.

KevinMcVeigh

Great. Thank you.

sense despite So good channels. it of the seems disruptions of saw other side. overall revenue I outcome your sales what percentage even Covid pretty you wondered the like Because give still is net-net can a face-to-face the just your versus on disruption,

EricStang

I they a new be XX% which then We they revenue good means not may mind activities that our face-to-face, have the come in there in going quarter did form. on customers consider are build some channel over the outcome, in come of Approximately in that quarter, sales through much when business time. keep would field some although on depending but

XX%. about So it's

KevinMcVeigh

Got it.

say So, Eric, areas of is that to it way in kind came delivered revenue other the the fair in over overall? you

EricStang

We did areas. in certain well

direct our sales inbound little but and a In were a of not it. point enough to fact, big make stronger

KevinMcVeigh

positioned customers real it. the there's of and maybe of for we And how quick channel behavioral to on benefit seeing [Tech going you to us probably be in space Got Can some where obviously folks you a then bit post post are behavioral world, And among are just remote I changes on, from some this Covid as think your more the tell changes. Covid Difficulty]. work. you kind

EricStang

some couldn't There I ask Could get apologize. apologize. you. I that from was background noise. again? you I just it

KevinMcVeigh

Yes.

Of course, Eric.

as it Just about position about you thinking could a the you your business Covid-XX no, clients' as folks model how need? are like think post in opposed to post entities you benefit Covid-XX, be feels to other coming of out

EricStang

Yes.

placed well post Covid-XX. we're think I

strong you is solutions orders a but phone you lot of if you're to a phone handle through frailty up I take Covid-XX the that's woken business to the limitations petty your of very had. example pick need going or that. do now small businesses have and think they've a And let existing all are and and me solutions Our up, a restaurant system to the

it's opportunity just we cost looking them in And for more so at us I other than savings people them think that tell se. interested get do about and more can for switching a little maybe per an reasons for to what

decisions; down and for of businesses a These the Covid. strategic moves sell home, it's an out hunkered So a bit. would it's are to we say of a think little to more I IT as companies professional. post lot us mid-sized have coming about make help going from I larger kind work that more think to of those companies

companies don't new may at demand bigger think come big if but back some they -- try be some moment. changes make home, augmenting be at from not what decisions. right getting work that they're the the to to aren't We'll there'll They work. making those but see. have going some potentially to I for or I extra moment as anything users fundamental pent-up people

teams through and to that back So, sales for a pace up will able we yes, go our little we think I the measured be Covid be bit be building will a That'll as get post situation. that that. of advantage us, take

Operator

Your Blair. of Please Stotler go Matt question is ahead. next from William

open. is line Your

MattStotler

guys. for questions. you my Hey, Thank taking

that and first, challenging I'd impact. even to results maybe good guess, COVID in to Solid double-click environment. like see on a I

impacting You saw said, overall outs how face-to-face conversations of to this push that outside you're delineate given good Would actually interaction. business quarter. situations new the then seems deals and is existing what obviously, require deals in the pretty like face-to-face first in environment in between process? that What were And maybe that you was business, some seeing customers? it love with

EricStang

hunkered as where in the down bit comment they larger I I from are solutions we're of our already I little the interested a to then our from any actually with mentioned or smaller interested we ratios Yes. that here. business we're they're out inline. change; our aren't that our just They're times may the very closing getting to mobile and talking increased money. lot in bit, I these anything in still we the there flexibility still go But finding businesses remote reevaluate be can And in market the are little very closed previous if saving size a see and We're in -- businesses a that recognition home seeing -- of mode. think are through seeing receptionist, apps they better our resistance virtual fact, a not serve if elaborate there. in lot work

in out to have And the for but if work even going others like balance from work the has we're There's on capabilities. companies and I Covid and situation and no put don't California Google a this home longer. to from announced of how go, doubt that here that know some spotlight to Facebook big nation's maybe continue year home going the

to we we're and needs a are can which the service your So we where and most things way into phone frankly change integrate operate, be distinctive. think we seeing flexible -- that business cloud diff is

valuable just even that it's as think look I forward. more we

to cycle. a tend per most to it the have think terms relatively sale out business any have In do. tend doing, We deals we don't of fast for We pushed are I of se. we

It's longer little to a But our goals when that harder around. and and to down the smaller business best the through channel partners we're will to that sure I one A of with we building year today. turn we're, sales way. tend go can't strengthen deals But that are And be doing that build say even partners. our your our there this story channel terms channel, enterprise can. in shut I'm really out bit and conferences in nature tell is that meet get of portion to will of you

So that I that's think, yes, if helpful. I much pretty out, it think lays

RaviNarula

other add is may Matt. comment Eric's. just one to Ravi. If Hey, This I

couple right. last the diversified sales Over channel we of years, very built a have

VARs. We have

resellers. have We

have We retailers.

inbounded. can and we VARs far. of more have more are and happy more also building to and short pretty with do continue marketing We to of that and term. issues is we with lot channels And but lot channel Eric We a a diversification activities channels strength gives we, of deal said, obviously, our us that bench long as so term sales the goal our

MattStotler

the just more Right. some We'd the me. players And with there's your Thank in That's thoughts get pads, you. and of so heard what to and those out NEC I'd recently, dial we've on updated on market, We've the change? love seeing especially you're current been in Thank announced landscape, helpful. if thoughts very any get else hearing to InterMedia environment? you. more one deal love competitive for

EricStang

these Yes. the I user's channel there's any of we're fundamental needs types go think against and the in. on We companies depending up don't change.

step to one pretty generally but doing Microsoft a that can I it's free or tell an intricate for did Some announced solutions for something chosen a video although, solution maybe done, not little something way we've large. we're side early in to enterprise use. little smaller give what to for is smaller further That's having set video as their a on and product enterprise That's recognition with expand define have our on as a solution, up still bit. we conferencing a And solution. we as the looked our little for did they took to you businesses, companies conferencing modernize our away size users said make I on at -- stronger.

there's don't to So for know addressing. I that the not something that we're it's a else channels mention. lot much And particularly of

Operator

next of go Your Please Securities. JMP from is question Joe Goodwin ahead.

Your line is open.

JoeGoodwin

glad everyone my for hear question. taking you to And Thank as well.

Just on? currently in I provide pipeline the you that regards deal any opportunities the to large XX,XXX-seat mean, is in other potential there out -- the color that closed was year, there or last

EricStang

Yes. talk very is se. deals increase. I really pending opportunity have this same customer with large year to there about significant per the The can't another

out off start lot have this a typically up those back a a set larger more customers for locations we're think to in need they distributed secure I companies solution sized when great on think and that. have we larger of We with We year Internet to good locations.

in a And advantage some being the user of able different you companies based that and talking API have with well if who enterprise And on the not when we've for way it solution sized in by customer And be And our the platform particularly or have that's And they very the strategic they them. that's focus and are today. solution one for for when process are some about to in real larger need. we're our customization so fulfilled need single opportunity a a based every for business customize we as they general, ability multi-tenant area will. flexibility that's talked need has how them. to works on then if us, what companies or there a regard garner to

forward. it that's we hope And, So responsive. that's how see yes, looking

JoeGoodwin

do as was America, expansion see of beyond you then opportunity that helpful. that Thank of in Yes, customers? you. the North existing just kind large a And outside kind of the

EricStang

us for re-architect in that We it specific it solution our this but customer than easily a step to got in our locations be more to more just it's first to customers. will of in with will we in goal I with to as us do operate a business. launch take variety the generally a able to be fun. particular with other internationally countries. next And I started think in WeWork drove here and office It's little history fun have maybe

Operator

is go Kinstlinger question of Alliance ahead. Brian next Global Please from Your Partners.

open. is line Your

BrianKinstlinger

two this follow-ups asked, of point terms mainly so your going Great. wondering theirs customers $XX.XX in with landscape, that about of competitive that's how have opportunities? plan but Thanks versus per $XX.XX RingCentral, price similar been the much. the I'm any to difference questions you it kind yours. you're what of recently your came a when believe impact business new on your discussing often forward? And between month inquiring Do has sales out

EricStang

Yes.

seen a have players. We little competitiveness certain price bit more from

of always constraints. get always don't except a And that we balance of other contract and a in only one-year you it's You get or with don't marketplace. see the minority the time everything you it the them

we that the solution users at available. use. to be by our as referrals. without level much point solution that through what easy think And of ranked really be best further And why Our business set is to a up themselves we're get to it's it's just I at And complexity. and price why it's one curated needs so designed number business

particular I seeing competition, issue we're price. So, trying beat on with yes, not think, don't to but a us to others have we're going

Let me that. say

BrianKinstlinger

in the of should or expecting customer; have we Thank a XXXX the end is impact is then Right. you're that may much -- you. terms see of being My on large ramp an follow-up at more the XXXX? catalyst of that revenue

RaviNarula

the Ravi. in happen, to have Brian, this POC positive they starting we Once and impact you fiscal are Obviously, some XXXX. more will the binary. installs Yes. done see is

of in which in year after be when will much but very hard impact, revenue install this will month XXXX impact be bigger when or the on in The to half also quarter -- bigger year. be given they fiscal in impact the it's second MRR even the predict MRR. a in installed could have So on which will thousands more some impact we put some there of but the users I

cautionary I customer some we So optimistic see half, we since it's about obviously this more that it. large will to binary the want in second be but am from growth

Operator

Benchmark. is ahead. next Your from question Please of Matthew Harrigan go

line is Your open.

MatthewHarrigan

neophyte two Thank Ooma are relatively you. if questions. I apologize these

Thanks suite are that tangential kind the And question but maintain the I APIs on capability Thank be internet then these a as progress taking a that perception. is the at look different business my residential is some that you the recognition is in Ooma recognizing questions. the there Connect, questions introducing for there when differentiator. on of any side including all appropriate also was a thoughts you second at voice with marketing have product I product? voice your of in higher-end thought you. of point price Would So is realize to any interested. and And

EricStang

and capable continues build as our home space. product and need. and married Ooma to see Happy situations up have little solution. I is No. do powered to And targeted when high as being We a we could us. certain home that that our Ooma in we you tower a launched the at while Telo for just office not talk or something XG thank which phone particularly is Connect, ago dedicated with It's XG a you. Connect same call today Telo residential a but used really home offer it's

put to a Connect difficult not minute have be will when a do designed we that modular in take capability way I So will Ooma time we a the comes for there. that mention it throughput as a this modem to XG. in up in capabilities And to are develop we looking us with networks. and it as speeds different and it forward move well the product

up sure backup will a no voice of drops on continuous wireless which be internet way designed And through applied on the to also a it by for We your internet, if very businesses patent miss. with call very something have voice nice where with immediately to customers. your the main call not pick for we've the losing that's your is feature

have APIs, larger it's APIs but APIs type today be our strategy customize to the internally customer. voice not it work we with is expose community, for to a strategy for able the to of customers developer terms to our In and target

it Ooma lot customer market And can does what and think a a think just Enterprise of combined a talked all-in-one solution Office need. one to Ooma that's largest that's lot with frankly powerful. about, we solution that do We something we've wouldn't they our kind so with hadn't they have the if so it's a and we -- done we then that something have and approach integrated we could the customer it with special

today, we of So think what about I of as but you kind doing solution a kind talking doing of company. it all-in-one sort we're

Operator

will There the the call are closing turn at no over further for I remarks. time. this to questions presenters

Eric Stang

time today. there the our working is out because forward appreciate strategy. you. Thank and times excited we do at challenges move everyone. doing can we about We're quickly these hard that through safe we're we're with of staying get all what your and of everyone you We Ooma and hope Thank

Operator

conference today's concludes for you This call. participation. Thank your

You may now disconnect.

Matt Robison	Director of IR and Corporate Development
Eric Stang	CEO
Ravi Narula	CFO
Josh Nichols	B. Riley FBR
Michael Latimore	Northland Capital Markets
Kevin McVeigh	Credit Suisse
Matt Stotler	William Blair & Company
Joe Goodwin	JMP Securities LLC
Brian Kinstlinger	Alliance Global Partners
Matthew Harrigan	Benchmark

Ooma (OOMA) 26 May 202021 Q1 Earnings call transcript