OOMA - Earnings call transcript Q2 2021

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Ooma Second Quarter Fiscal 2021 Financial Results Conference Call. [Operator Instructions]. I would now like to hand the conference over to your speaker today, Matt Robison. Thank you. Please go ahead, sir.

Matthew Robison

David. Thanks, and of Second Ooma, everyone, XXXX Fiscal to Call Earnings Inc. welcome day, Quarter the Year Good My name is and Corporate Matt Robison, Ooma's Director Development. of IR

from of Eric and Wire. the included Eastern Narula. link a website, is On link least for and second will page today, the a quarter call Dialing Time. today's with call replay Investor Events replay our company's release today Relations ooma.com. is it available is p.m. release. press its earnings Ooma's the being via at also website. will press Business on me of week Ooma information issued call for CFO, release section starting the This webcast one for the in for telephonic After be of year, this CEO, Ravi accessible a be is earnings evening market The live active closed This on are also X:XX this Stang; available about

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

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

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

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

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

Eric Stang

to and was with X% an bottom on our I'm we or Ooma's the grew for you pleased of and revenue. both exceeded QX million $XX.X Thank to non-GAAP expectations you, $X.X year Matt. XXXX to today. net as revenues income Ooma call. was million, Hi, everyone. fiscal quarter top QX outstanding talk financially line. Welcome QX earnings

in Ooma appreciate from approximately these of flow cash to quarter. the results. members million I the team of also the $X.X achieve in hard We generated operations by work all put

particularly locations. and deployments. solving customers enterprise a clinics by in Ooma of Looking with I'm services complex our example locations, this progress Historically, easily hearing-loss administrator this at such the the unified had A winning the we agents VoIP phone has can control able a America. example excited to In of a words One PSTN large Ooma all locations the in over XX solution of Ooma serve second touch North deployment. X,XXX across Previously, routing currently customer their been different to lifesaver. QX, customer center different Maryland. larger provide Office customer of in chain locations is now customers all across at company company, struggling step closures. is in in its because hybrid phone in were with call was where office providers and used in PSTN COVID-driven conjunction has home-based stay and with X increasingly who

PSTN eliminate We both are now element to peer to engaged with cost this and improve the and quality. directly customer them,

of Our employees drive the was work while new and challenge our others ability customer our of company XXX in over and company an their flow for QX. to powerful to of new home with mobile is ability office. larger administration. they of with some ours, working provide wins our seamless call easy valued switched faced benefits in from One employees, insurance across and week environments, work-from-home solutions Ooma customer because use online portals spending operate app who are work also and helped the part to setup particularly of their This

national label also case, our Solutions the the marketing regulatory implementation relationships. With it customer label new their that a and matters this label who our of brand. of QX, win and larger referrals. customer only away we large wanted report important is who our bring is other level, was general, enterprise fully while full have sales expanded one this a More a desired. wins in significant element progress. call functionality. In Enterprise further translate and with pricing maintain serving Enterprise, customer are this small leg private have QX, independent solution more Ooma background center this secured enterprise Ooma our I'm private we locations In well. small many resellers an much announced X,XXX who the through of seeing of In complex an features that want to to to took year Enterprise, call to reseller, week representing differentiated opportunity in Last that mentioned things, serve as end of we to differentiator we strategy brand, on among offered up the private pleased responsive I believe including in us quarter, national about their on-premise operate with support of serving MTA customer now we One coming strategy I of Ooma plan from focus our us needs. Our At we can businesses Alaska. believe this on resellers distributed over to locations. in naming, center strengths broadly, control execution. in one convert over to users key a can was, our XXX handle many and well was businesses serving And Ooma locations over good engage

but see believe by that still lessening Overall, time. have needs our strategy restrictions efforts is place we in of fight remain today sales our to hampered this of working. strong larger with for we both and smaller Some solutions and the COVID, we businesses

cite Connect that primary month of purchasing are support we DSL backup Internet to report cable new greater announced this ensure execution, accounts Ooma these advance marketing Connect. outages regard second and to for a More per communications to solution poor introduce plan we these or the Last The our sales service launch and have customer. to top and for which use. of this customers I'm hundreds $XX major accounts use. our addition a broader plan selected solution using In with Ooma provide element key in operational. features persistent a quarter, strategy insurance reasons Internet per wireless are primary increase now than accounts is breakout that you'll have our and a half always recall to customer and of Connect, year is performance, revenue of Internet pleased both

WiFi-based Our IP last solution the well. week cost just a newest can networks a quality have can feature select when become announcement to With it as customizable is most Ooma complexity. and in supported to bring an modest easily Wi-Fi, service turnkey smallest service all of easy-to-use which small In enabled be businesses: excessive performance launched we enterprise-grade very we for to businesses month. comes guest the and are enforced usually Ooma advanced general, left because per customers. excited WiFi charge and management, of behind technology solutions Wi-Fi, to even as phones been have security,

We are to the Wi-Fi, with while tier an to of pleased a operate and With WiFi Extreme a managed introduce is by into have future big even this Networks Office winning at service. Pro perfectly also that enhancement possible. vision broader Ooma an fits affordable will extremely of provide advance, to to in you small Strategically, is to our all here I'm communications, Internet Wi-Fi sound the long-term make small businesses. pleased we the price. soon businesses and combination an like our And our available launch Ooma in vision to of offer business enable solution Ooma. partnered cloud Wi-Fi for to businesses major Ooma for can Ooma be networking, infrastructure now

blocking app, costs advanced our including per XX% our You'll per additional of call provides user of features customers recall up call and desktop step to tier recording. a $X that new of and advanced use our take the today, tier. pro about pro an up month Currently, customers number

to will to a the screen strategy collaboration to other adoption, will enhance to our the tier in tests help in soon sharing. continue addition of now adoption. tier, beta will providers. And an part select We be many with spur we pro it and its exceptional be launching video value As increase and are which believe and this comparison customers be valuable pro will

T-Mobile Turning now to our Sprint and now partnership.

the recall and Office new You'll Sprint was quarter unclear Omni. as T-Mobile Ooma cautious Connect and outlook. it to powers merger, a what T-Mobile Sprint-T-Mobile will announced We enable that we the organization with resell be, Ooma adopted strategy that we last our

portfolio Our continue does place, Ooma will more Sprint in selling to continue is to not intends and relationship remains our Nonetheless, on power understanding that Omni. focus Connect. and now a to plan T-Mobile narrow T-Mobile

well. are service report can I to that organizations. And geographic the largest customer new other possibilities progressed on are exploring decision when out well in is we our jointly to whom proof-of-concept yet don't on users have America, more reached. a our also we for roll We do believe region when but so our a world have larger North of will outside placed today, want regarding XX,XXX of a finally, We between provide two to the scale, than customer clarity trials we

with secured opportunity this, new is report we Beyond now additional customer pleased with when for remarks. expand more and results this Ravi to it that opportunity, to outlook American return us detail customer. some will an call then turn but the post-COVID over and the to our importantly, This I'm favorably discuss believe will in North chooses more to we revenue closing position further. a I

Ravi Narula

and everyone. afternoon, good Eric, Thanks,

of $XX.X us challenging want that, team times our then Before quarter these the begin XX% quarter XX% entire results revenue for marketing by both XX% growth was pandemic, second which to of from a a well expenses, exceeding strong I once to 'XX. fiscal the revenue issued million to long-term Even previously operational we've for of which quarter quarter. QX financial performance compared basis, accounts provide reflect in Business, $XX.X deliver for thank the start, the solid quarter challenges this $X.X results. helping With in a channels. year-over-year extraordinary sales On income with delivered I'll achieving was the 'XX Net strong from and driven during our review revenue now in year These guidance Ooma the of prior second fiscal million year the to $X for issued with focus million outlook revenue to $XX growth exceeds our of and Ooma lower as on remain full results, continuing costs, increased million including unchanged. million. third hard lower profitability range stems travel financial previously objectives, again from created and their and guidance This total performance our efficiencies other which as $X.X while for by our personnel I our work million. range

business revenue was a residential. QX second as prior of activities. quarter. year revenue some X% on XX% and subscription a subscription XX% growth quarter services and and grew XX% revenue to grew for on XX% a compared $X.X and prior subscription services in revenue Product percentage we On basis, year-over-year. with was residential customer achieved and total combined Now both quarter. million, revenue the consistent basis, revenue a and the details year-over-year our year-over-year year key for Business Overall, for the revenue services

North outside QX, service as calls. in With have performed During North in to on referenced the offerings just customer, good quarter, our customer In from previous improvements the expanded Eric we partners. largest and further the mentioned. recently we our trials direct this our as proof-of-concept reseller America America, second well have we relating we as VARs orders saw and progress customers made activities with

as conservative this as align further strategy. our have pose T-Mobile-Sprint increase our to We activity with this will are relationship that T-Mobile's Connect T-Mobile had we we been approach to the but Ooma optimistic continue positive improves, impact other with see time, partner taken exploring opportunities some guidance. Ooma situation resell material Also, note, we with as closely decision merger that to a relates watching On for the on does are a long-term our not on to in not and customer. results we a it pandemic

of through online of X,XXX,XXX at business users marketing as total end at well X,XXX,XXX VARs on the the the customers our end of metrics. through XX% We revenue. details were added as and sales At quarter, the business year from prior total our core XX% customer core quarter. second of contributing other users, second some resellers. up We Now activities the a and number quarter, of end key the of users had

subscription quarter. $XX.XX in the revenue per monthly and ARPU, year to X% core or services Our average prior increased user up from $XX.XX,

We are achievement highlight milestone regarding Ooma on mark which growth including the very has now revenue, XX% annual new to Office recurring want basis. $XXX by and offerings, pleased a driven service million major which with Pro. grew I crossed this year-over-year our ARPU a exit

increased XXX% Over was year Accordingly, by last of the the months, our the few to net retention prior points, rate rate XX% couple annual compared pandemic. subscription a attribute we our churn to for which percentage quarter. dollar

gross the of up improvement a from gross our for XX%, partially second number the of on for quarter margins. and color Broadsmart, offset services the some negative period for last quarter. economies period were by compared decline and margins second other including Now Subscription year. same quarter XX% and efficiencies XX% created margins taxes for last scale from resulted by This was increased factors, negative other from in quarter. promotional increase XX% to costs This gross and in were same the year. the Product during shipping margin telecom activities the driven

driven $X.X reduced by $XX in in year-over-year. XXXX. down was X% was or with fuel decrease which which enables increased the basis, products for details to and customer lifetime reminder, some gross activities expenses associated to Smart down value. were year up pandemic overall in to our the customers, the of positive lower marketing prior million for is XX% us XX% costs On from Sales due hardware the eliminated total high-margin subscription get revenue million, year-over-year. to And residential operating were quarter expenses X% a This million October on $XX.X discontinued an second quarter. Cam, and margins now second expenses. to expenses our our total sales business, revenue, and Operating As the XX%, or strategy quarter generate sales

quarter, Business, our the additions. to we marketing which drive relating activities helped Ooma user During business increased

Enterprise. R&D were a Given Cam strong million continue of compared XX% develop revenue higher in integrations total driven insurance momentum features we to were continue prior in fuel Office company from growth. was million was in expenses Research decline quarter. $X.X X% down $X.X and both of will QX, discontinuation our This public to as such by we the Ooma $X.X and million X% million future year or invest programs Smart while costs G&A and stock to or total increase primarily for the revenue, of of new to or and for This these $X.X expenses. result year-over-year. expenses development infrastructure Ooma

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

quarter For representing fiscal versus the of quarter. year loss margin EBITDA $XXX,XXX to $X.X of the a 'XX, earnings for a adjusted second prior X% improved million,

half same EBITDA of for no profitability, generated by of $X.X We inventory an earnings from $X.X approximately debt. $X of operations same period quarter the first was $XX.X the investments 'XX Cash customers second compared was million fiscal with increased year. total for loss to from of million million cash fiscal for used with reduced approximately and quarter the EBITDA the Cash Our ended total achievements operations was our streamlined XXXX, some in 'XX levels. and of a same $XXX,XXX million, collections driven I last total the year. second Accordingly, last It to year. ended XXX for the of the enable with our XXX period Late added last primarily quarter we been like contractors we year of acquisition update provide would in our from employees sales an has a transaction. quarter, number Broadsmart future up period contractors, and personnel, from that in a the since to stemming in key of growth. on

Broadsmart we foremost, realized integrated efficiencies. operational into fully Ooma and and significant have First

scale the of helps are we Ooma customer Broadsmart's Business. base increase leveraging Enterprise, now Second, Ooma into which us

as the acquisition. of channel we increased that Third, sell we a the of to partners result have number

growth our our Business. long-term significant and Ooma have we To achieving made progress to by value that shareholder businesses. small strategic goal create effect, both adding are via of large We

given For users going-to-market our and momentum. strategy, example, are optimistic now more our XX% differentiated of we are businesses and product business than this larger sustaining about

we our define 'XX non-GAAP more. large such as amortization as or With of a provide third and clarity, adjusted and is $XX,XXX now year details that, for one, Again, has been stock-based and on guidance annual compensation has an of For business guidance. our full fiscal ARR which intangibles. I'll quarter expenses

million. We third of quarter to of $XX.X expect range in $XX 'XX fiscal the total for to million be revenue the

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

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

fiscal million, $XXX full For total 'XX, for we million. of in to be expect $XXX revenue million $XXX.X range an our range previously to $XXX 'XX year the increase from now of guidance fiscal issued to million

to We expect 'XX for guidance EPS million of $X to fiscal the $X million, million to of our income range from be the to in non-GAAP previously million. be to in $X.XX. net Non-GAAP an issued of $X.X range $X increase is expected diluted range $X.XX

Eric? We shares pleased diluted are to fiscal long-term 'XX. some XX.X Eric basic the million have results average we pass summary, XX.X second remarks. very million In and quarter now with outstanding strategy. our our in execution strength assumed back it weighted of weighted shares demonstrate for average I'll for closing continued which

Eric Stang

and the from are and Ooma executing believe results of that Thanks, face Ravi. we seeing new expanded and new most opportunities. initiatives view are the the Like finding capabilities Wi-Fi on sharing, and is our Nonetheless, in well and into app, customers. larger-sized while by Ooma significantly some video this open improvement business we with desktop now year in we effects will marketing Connect rest our achieving, and will up likely energized the year. the through are particular, Also features still we economy, last that and sales screen our next pandemic collaboration are we're quarter, current

in, on forward. outlook deliver profitable continuing can significant working, strategy while in going growth Our and is Operator? to our capitalize opportunity future. All believe to invest is we we

Operator

Instructions]. [Operator

Markets. question comes Northland the Capital first Latimore Your of Mike from with line

Michael Latimore

last that, things I guess, as fluid sense a churn a kind And the here, bit of a a or market to X the give little Great. of Yes, of give month-by-month flavor on here. talking by X a Progression still how month as about transpired months. is you I'm over kind the the since on side, by for little side well demand just can

Eric Stang

we've stick say any I QX, wouldn't at that a looking through that pretty hockey there's quarter. Well, seen regard. way demand been in good in the

not cases, we stabilized, some And churn, gone saw with QX come as talked. and It's we down. up churn think further. has I go in has up it in

Michael Latimore

Got it.

new is kind replacing out device clear And here? Okay. in playing that new you offering, Or service among of do your Great. thing? Is more be how going then or customers? of of WiFi terms that easily current there you're see to a a customer this

Eric Stang

service, both, will it biggest customers. although networking their and the new when needs. penetration for at uncommon for I their look cloud, be think to I their a It's not we'll changing whole our with moving strategy they're think see phone customer to

essentially us. customer way by the service they're customization or including in will need us buy And and running without implementation. full done find that easier get that ongoing bring having ensure customers they they phones very business to installed turnkey do the We the customer, much can with to want. kind WiFi us. us very, quality work With in for once others they can cabling. from service. rest And where provide just phones the package also of a with struggle work will properly can than solution the a a it those so by we just of wanting also from enforced to It's monitoring to WiFi we locations, it solution, do to the of in put a managed endpoints all it's The the have their any

just But getting to there's see it value develops. service. lot of So started and obviously, I think we'll it, with a how the have in we're

Michael Latimore

new Is your that large then opportunity size just And And being services new should of -- how opportunity? it. Got customer. largest about seat? American I that the your talked about with we more you added? think Is North that a think, new

Eric Stang

over it way have done the of but and not scope in large them, allow step kind traditionally is substantial us provide better is more It's other them of for to and delivering the forward we save full our service service. some them can those which time, with them believe quality date. as partial growth I us we've some it elements for to It bring the to money service a lead users will to users. And we of

it's So I but as rest would will in before, it's we not scope, hope flow, much revenue in as the think it's but the only large have implementation, had and per user partial future. we a

Operator

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

Michael Nichols

here. Really VAR? forward specifics you What's far seeing that I expectation Any coming the good the you're of front down the top from little set? more the mentioned beat Broadsmart on with the also fully sales see a provide company margin channel. are quarter-over-quarter flowing going integrated, with seeing? the traction you on to VAR expansion bit EBITDA can acquisition percentage think line What focus the as and that as of you're some Ravi, opportunity

Ravi Narula

overall from little VARs total expect of pretty we user around be well. we seeing than of and growing, or reseller resellers. resellers. increasing good been revenue perspective, the look the our Josh, generally, Ooma it in at if term, the from What said, traction thank X/X growth. It's yes, XX% some the bit I longer coming and contribution, it overall VARs you. And But I a VAR and more to has are

and playing and making we at we're growth, years good of was this progress now, good momentum. are us think programs that for VARs seeing which but role I in couple a reseller a some building So also we been have time, Broadsmart for

Michael Nichols

to know to set And of to customer, the One, outside of beta? the is seats working And back XX,XXX year? opportunity for it's to excluded fair that that you domestically? built I North still half the for you've have still then there for because been is that Or two, comparable assume through back really is get that the company's any the into opportunity largest of guidance an just beta America. it is

Eric Stang

The there. I'll talk It size guidance. about Ravi is scope. mentioned in you that the let

Ravi Narula

thought much a included approach want what to investments be. to happened, really upsides upside how could have process cautious incorporated all obviously We would obviously, there take that. of or and the take But will I until

to there is expenses, very some don't want we make sure of a revenue element of So some element disappoint. element, built it's whether small but I and would in,

we cautious So optimistic approach are a but a guidance opportunity, I about perspective. taking this I think am from

Michael Nichols

And then last features. to question these unleash new for companies see me. Good the continue to

solution going a Now the think that have you WiFi what out value people other roll versus bit you detail and features when more proposition or Could of on well. expected from have this timing you some to company's as you video provide and the little new that's the the to like conferencing do peers on market?

Eric Stang

Yes.

customers. This Office Ooma now. We have at is it out and some for today working

times, to conferencing, customers obviously, video some of earlier in For our service. and Ooma But that's much always even that improvements year. generally have had not a business it interest made But this we we've smaller these changing. this kind Enterprise, had in

able you we tier. want will as going a it's roll have Economically, to for I And in using get of Office customers be no said, to quarter, so going it be our out very the it month. just It's have well. as very, extra some the that value to be included $X all doubt beta. enable have Pro a extensively. this And now of I great other things that to part as to we it part able that

Operator

William line comes Matt of question with from Stotler Our next the Blair.

Matthew Stotler

on going it's the but around channel. good Unfortunate then to there see the business? moving you I you specific I'd still I forward in Congrats I'd Omni, carrier solid seems do do And another love see for, any thoughts as about guess, that? up? the that like is importance results. with there. on for T-Mobile channel that additional think of to and potential How guess, the And the that to the update be forward opportunity the that partnership. first, intact, touch still pipeline to partner with how looking is the of additional on, contribution one to love what I about think guess, shaping get terms with Sprint partnerships, relationship you

Eric Stang

Yes.

develop said, as partnership that And much moment, They're have that. core we can strong of the for But with Yes, this their to we to focus. still portfolio always fairly the that's appreciate outlook more back down T-Mobile. things you can extend far I have. a tell. As doesn't us. narrowing extensively I just of as the line. Cutting And business a can differently doing

the doing about some excited Connect, we're of to is how do I internally, interested to in things, an just as and they are together unfolds earlier, strategically and them. of which of things do, important Ooma with solution said fixed And that we them. continue are forward-looking wireless with see have course, power some they We that we'll those

think And forms additional think various other carriers. scope just partnerships, of at. terms In in we potential. we discussions are than that good that and of today parties something I in various that's we're And with more other broadly and with

work with kinds setup those others in of are ways. solutions Our to

towards seeing develop so more that for And we to of continue drive us.

Matthew Stotler

do see kind internationally results Obviously, piece. outside about And one timing from maybe to international expansion Right. or think avenues opportunities could America? talked the just you've the hear. of more you and Right. of How the waiting on about expansion just It's that then where North for POC there. the a positive other bit good further or you

Eric Stang

just internationally us. it's very expand for do move economic to large With lead rushing to not a a so. We're customer,

what to propel do that's And us it. so will

number of X We are Europe, X already a countries countries, in Australia. today or in

to users in countries mind. comes have other well. as We Japan

and makes any large North customer we new enabling our So internationally but further. we today situation and going a the do of think, unless a what are timing we're this some a a little marketing partnership we're opportunity to what need not we the to really is economic are have We that expand of sales I sense. this part there well. we've But with opportunity as of focus of is that to customer current leverage to sense business going there. international America, pandemic bit It's about. large that's able for doing of needed doing be with think that geographic away is can we together when adverse just a in matter talked region that is the for the And them, has, gotten whole

time, all just believe we've this over we'll together So see I come discussed. do as

Operator

comes Your line Joe the JMP Securities. question next Goodwin with of from

Joseph Goodwin

guidance, the just conservatism from on first a thinking Just the it about? that the looks just anything decline. sequential there should be like Is we or XQ midpoint, shows

Ravi Narula

Joe, this is Ravi.

see such subscription generally, we decline subscription sequentially. high revenue, in don't revenue a Given

just would range, it's which given. say a I I've So

some more it the stores growth. the stable our brick-and-mortar could there the but but of than I small probably If can just the only at we why and be revenue, X seen, which end side unknowns Given out may services it's could be would a is of I it, bigger some pandemic, think or speaking, predictable. revenue sequentially, have some reason I January, and could of given the variability the December, probably it. Where in conservatism where revenue closed, low say call and subscription subscription issue generally is that's pandemic on highlight very November, around we you revenue XX% product months range be that's is in a

Joseph Goodwin

guess, the guys business how just that thinking you this then the line, of to how about on of year? low And is kind you fair think I it. business? of right I mid-XXs kind trajectory what's internally? that the of the mean, kind I of think for foreseeable growth way beyond it about assume do do subscription mean, Got future? guys

Ravi Narula

business love rates to very lots different a see of year in would love is the situations. invest this the the continue and so I challenges But growth future. I would with to -- into side, year we

would be and I And say, to to would year, than are guidance expect, some next growth now, example, we'll that's I for impacted. But in this in rate thing right see got one of want provide next unknowns, ours that. year QX revenue So for for large more from our of I say there of I more probably hope business our I would customer earnings XX% business, color terms would coming call.

had Some year the out. being of plans early slightly this for are pushed we

think positioned. are want would with I we this see we happening pandemic, well to but So what's

engines, VARs are good resellers very have channels. growth We there. growth

us. X just X So we over ahead see channels or all have this We have of situation and the comes months. opportunities how next out the right to COVID-XX

Operator

[Operator Instructions].

question of Alliance Your Global the Kinstlinger next Partners. line comes Brian from with

Brian Kinstlinger

growth in of a seen we've year-over-year Obviously, Great. a of slowdown development. little COVID has terms slowed bit subscribers. Clearly, in business that business

see conversations With additions might And with the of enterprises? lot obviously, begin to office, How back accelerate? changing the when in a open, economy we not to beginning are people everybody.

Eric Stang

what how enterprises? changing Sorry, is with

Ravi Narula

Conversations.

Brian Kinstlinger

X, last mean, development conversation. in we've Just sounds like the seen or I it slow. X months, business X

have some had had businesses challenges. challenges, You've

forward does As year-over-year in comfortable the business moving the you're like and your to of with And rate more sound acceleration term might subscribers? near they're that some solutions? lead implementing growth an in of it opening, getting

Eric Stang

It's one answer to Yes. isn't There just question. interesting. that

it's very think are solution working in the customers, of people from down of company Some or talking the save a changes a something capable to, hunkered needs. or even to customers there's A that's the have put. little a pandemic cases, pressures not been of their number furlough customers bit on be our disjointed to anymore. we've little acceleration and And with more moving on-prem of an other might been I much And across cost. to bit make with those those though,

going forward. demand range a a we've is is I whole think customer as we hold I back seen us things happen customers. look customer So and Generally, of lack the demand with of strong think don't to

want somewhat as I but have to bit talking And weather bounce, with just effective comes second face-to-face. the that customer, pretty is I optimistic them channels the our most of all solutions have and ability will, little things. and success to our with what later we those sales that and think directly outlook But anything back teams as better, moving more cold feel engage all are be said, you a we'd the customers do our plan where good teams are we to we've need. to be, particularly a go. farther if the rate channels business we've in getting customers as And I to forward. think impacted of once engaged year this very winning think if I a I or it's that for got think of a we and

-- and it leverage go, look I that script, to said are getting the So environment. in things too, I'm we gradually I forward, too, feeling be as we'll think the with better as we for us, able

Brian Kinstlinger

Great. a that. to And Great. follow-up

businesses, especially and the notwithstanding largest you customer. of pipeline, terms in speak your to enterprises If can small the

in six conversations the are are has But Has Over the grown? RFPs. not opportunity that curious you looking like? if I'm where I'm RFPs, just last what and, today, COVID? months the we there's kind sure it you will, near-term seeing terms of pipeline what given shrunk if of is

Eric Stang

has affected by I little speaking, robust, described pipeline it's again, we earlier. But and growing is our it -- is a it by today. Our And the way, generally here as bit channel. sit pipeline

Brian Kinstlinger

time that talked, more it last about COVID a result last other like it's a factor The that's sounds may customer? me It going with forward. or customer. a on was some that move bit installation your Okay. question I that had, questions unclear the when little to about Is we largest is to few compared

Eric Stang

since see we've that as with them. with to customer, But mentioned with that still of new in because implementation do two nice business beyond also will more a North which happen. that a we America last, we're us go secured and implementing that Yes, new we what positions of believe step in do. implementing opportunity even talked done able is I things forward move mentioned for So well we now customer. to about that customers the the this they area, the think a some not trials with these want pandemic, I I I geographic But fast as

yes, in fast things wouldn't So good see think together before, going happen, things as we running we're a nicely. I pandemic forward the are spot. but were And ideally, be I think come would as everything still to all

Operator

Your with of next the Benchmark. line comes Matthew Harrigan from question

Matthew Harrigan

then probably conferencing power your about of I expected, period as But your rigueur pricing that can the people talk part product at de time? whether think will. given affects offering point, some people's video over utility you economy there And and sooner all you a bouquet, COVID becomes if of more somewhat more than next mean, think pricing to more and work just on higher a seems the eventually that period I of becomes generically, of the business do over much hopefully, robust, translates you power side with time, home particularly it year? so at inevitably that. as

Eric Stang

Yes.

the step great just the market the in But a business. and talk to capability particularly is that for a Office What to a But good a is at -- as strategy, it's what Enterprise screen favorable puts some us customer. solution Office there, are value And what to They're in today will good we even one There building not a We but which some believe that's price most and capability, to a really it's very solution a have conferences, that Ooma solid video we're think do make sharing conferences. cost-effective you've more businesses. our someone others. heard I little that us power piling currently do even end be versus higher more into a yes, is with we more got in do conferences, special Pro Office Ooma Pro significant, this and us smaller though, user, Office in think I a position a about that I those maybe business. longer features wants video say, are think point Ooma satisfy of tier will it we or, and we way our will just the we Ooma basically, conferencing larger limitations. price than in incorporate allow adding along higher it premium screen the question. sharing tier eventually And bit. it's for would

little So I a it's both. bit of think

look I effective, will also but think it service going what be for we're the higher be to tier as base forward. very an of doing we even is

Operator

There questions turn further are Stang. I back no this the over Eric call will at to time.

Eric Stang

doing things today. QX. about scale and with a after we're Well, great. new on larger happy QX. everyone forward results for And having that we're the and very I the updating you. excited success really appreciate We're you Thank us look on to our very all joining

Operator

today's this for gentlemen, concludes participating. Thank call. and conference Ladies you

disconnect. You may now

Ooma (OOMA) 25 Aug 202021 Q2 Earnings call transcript