OOMA - Earnings call transcript Q2 2022

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Operator

Good day and thank you for standing by. Welcome to the Ooma Earnings Call. At this time all participants are in a listen-only mode. After the speakers presentation there will be a question-and-answer session. [Operator Instructions]. you. Thank like today, conference Mr. would first to hand for speaker to I over the your And Matt Robison. you. Thank go Please ahead.

Matthew Robison

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

year. release as are earnings X with its live press Shig for market Stang closed is are well as included Wire. Ooma CEO, issued a company's and the press of Sabharwal. Interim will On X:XX this the PM Ooma's Relations section a Namrata the one as announced call telephonic about Dialing link webcast Presentations of link for information being This effective least CFO Hamamatsu replay the active releases Vice appointment replay Time. Treasurer website. website, from today's and and will quarter After next evening These call available is the in press page accessible XXXX ooma.com. be it fiscal also on also of for of Investor President, & via second release, CFO week Events release. available this Eastern me A for at today Eric in is a Tuesday and This Controller, today, September call starting be Business our

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

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

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

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

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

Eric Stang

you joining I'm Welcome Thank update Hi earnings XXXX you, progress our of call. fiscal year. everyone. the to today. Thank and for balance the QX outlook excited us Ooma’s for and to to results year for QX Matt. review our

I X% fiscal to was pleased XX% was report growth QX the customers for First which held year-over-year of above steady guidance strong am QX. sequentially all, customers revenue Total to growth for for represents residential XX% revenue and business year-over-year year-over-year. our increased growth and approximately million, $XX.X at Revenue in for quarter growth.

$X.X end are year. QX more the With our XX% to EBITDA net back to the $XX have the allowed $XX.X remain on momentum record cross Overall, pleased this few EBITDA business fiscal expectations. over QX and over going this end coming customers from point million. we This for of than from fiscal performing quarter making, year. we also subscription fiscal good quarters a services income cash, was I'm we in also up track the well revenue half business the a us million and is to our report into of believe before a ago. million exceeded with progress and of of to just we low

growth driving sales business customers, small initiatives in on through center channel solutions enterprise expanding partners, our expanding internationally. Our growth and business developing primary

these for of We focus progress making be are and good to growth. on they initiatives our continue each will

believe a businesses untapped have and segment to relatively we've a market. the unique convert two-thirds discussed yet least small cloud have needs We UCaaS solution. businesses UCaaS and to of large at As previously, of represent small

and our small a are indications is Pro small Ooma Office at is believe We that formation In Ooma the addition, there Office customers serving currently high. leader in Ooma record business Solutions. business with

Pro years stepped Overall XX% have in by increase an new our introduced QX, ago to of about XX% Our versus Pro premium Office Tier. adopted X.X Office our our QX. was users up users Solution now to price of Office now

meetings above we Caller of We Match, control make even To call. breakthrough QX are announced allows to conference to launch video Video which the are last in investing screens, which investing in Tier new end, we leadership These Pro efforts our strategy tier our priced in new Office to and Pro. a small to we on that attractive also Control, Info segment. We're customers. this of more our the remote business announced Remote users also enable features higher will us in discussed our a part future

over Office, added locations. our a locations solution, and several a including small new Office trucking wins included QX X,XXX Connect of some realtor For those our restaurant additional an largest Pro national brand implementations QX we the user we Office with see Ooma with a user And notable Ooma business Service in XXX with a businesses we at Internet serve customer companies, XXX XX-plus excited we locations. XX company, business. its approximately We advanced with where an XXX XX in customer Ooma a for from including features. their implementation at industrial We're about that now with locations. now of potential over size company by a was national expanded establishment locations, market serving Other serve where entity large added larger locations

business resellers, given channel know, we through you direct resellers, In As feel retail we on we strategy highest and large our term level QX a long is which to our and sales. XX% yet. our historical sales opportunity concentration our partners have grew to of through sales a expand

announced and network. advisor phone AppSmart’s through also unified extensive communication to technology services new We our business partnership AppSmart offer with

contract to relationships of advisors. AppSmart’s AppSmart the for Our build us door with with network opens

several Finally, much onboard see channel support this a needed to the a during the thousand of partner with of this customization quarter mentioned new We QX label who we over balance completed potential work private year. we to partner ago. users

Enterprise feature very industry. Ooma a well hospitality, including where secured and to respected we in We One set select new we hotel several opportunities area is names our some continue differentiated can solution. expand provide customers, the target such where

Ooma As part we using meeting platform, example and strategy Telephone strategy, This centers contact and offers hotel Ooma is solutions, Ooma hospitality of now Network. provide and other Enterprise management of new middleware the customized Jazzware’s the Jazzware, offer services. announced applications customers’ one a Switched Jazzware and unique partnership UCaaS to connection can hotel connecting solutions Enterprises this needs. Public universal with which to premise Together,

also contact UJET’s combining Enterprise now We with partnership Ooma offers an a omni-channel with Ooma solution. announced UJET. new leading center integrated solution

referrals UJET need UJET when are In of will to Ooma in UCaaS clients or prospects services. deliver addition,

seeing sales opportunities already coming partnership. are from We new this

to Finally, The world. well we the our are largest Europe investing opportunity in this accomplish serve the customer and new this QX. by in countries across year in expansion, international of driven parts effort other progressed to

to across locations established a newly up We customer out rolling we are we our this and number when rollout initiatives this is remains by the to QX. are this also In begin are though began currently QX, of in a collaborating our of further on course which we on new focus proceed. with services current poised more countries, customer some ready number excited extensive a fall of of about services bringing customer,

On front business the in again expectations. we our solid remains once grew and with line revenues residential

is we the year. Our demand anticipate of meet in half in we chain expect able relatively shape to the to good be supply this and back

we pandemic, is join turn public more growth, growth and result new will the business to over strategic past welcoming Shig on lastly, the has and I Hamamatsu CFO, me that and be experience, look we noted call Ooma’s Ooma’s a in as I'm customer track I He welcome we is who process now Shig creates the outlook him results acting and remarks. our he stable it development. financial Namrata and with week. to of very And and to hope Shig joining partnering warmly are as leadership engagement and brings with understanding to Turning of in and our CFO will be our thrilled an return extensive will Ooma. our challenges forward a Sabharwal, company that some business the Ooma drive as to right to the auditor Nonetheless, across will deep closing search in starting an you X have demonstrated both place discuss pleased our organization people I to then hiring. and and in September detail plans. to Hiring CFO. next for direct execute record

Namrata Sabharwal

fiscal overall Eric and provide our quarter was you, outlook revenue which issued then previously high the Thank total above for XX% quarter driven in quarter. year by We increased accounts Net second revenues range financial $XX.X quarter year the to total for million, gross achieved million. compared year-over-year range and full of our of $XX.X prior guidance will a I basis second good XX% begin grew $X.X by which results, revenue end XX%, everyone. our to of income revenue million, million review million On now driven year-over-year. issued Omar guidance services a XXXX of with third improved margins. XXXX. for our Ooma $X.X of higher of largely million. exceeded previously the Business the to and Business, XX% which $XX record total was $X.X was and afternoon subscription This

Now, on QX some details results. our revenue

was other the and Products and and and the X% quarter. prior to year-over-year year-over-year subscription subscription was quarter. subscription year-over-year. quarter revenue XX% $XX.X percentage revenue growing grew Residential a year sequentially revenue from year total and the and similar Ooma services services services $X.X prior million million services second % revenue revenue as Our Business revenue Subscription up of to million for from XX XX% with for $X.X grew X% QX.

users the with on the driven in marketing business through continued of at X,XXX,XXX second Now quarter ended growth We quarter activity. up key some This our customer from end the X,XXX,XXX last metrics. users year. and sales was by second core users, details

of XX% XX% of second Our our ago, total users XXX,XXX were a the we business business have now business up from At year users. year-over-year total XX%. from quarter, users core end the and grew users,

significantly which monthly which an Our XX% fiscal to ARPU service, services quarter. increased mix Pro users. Office for XXXX, increasing was Pro new Office core $XX.X, year-over-year is to In XX% the from of the up in year second user per average of revenue and or opted of Office XX% quarter due prior subscription users

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

subscription dollar sequentially XX%, the second comparable rate Our improved year quarter. from and was in retention prior for net quarter the XX%

margins up be the inventory functional on Now, directly year. margin. higher margins related and second that from of up On quarter XX% compared gross Products the were not and to XX%, were period same a some gross quarter. driven is margins increased down decline with Subscription under last XX%, year ARPU in-part the XX% for from overall excess margin gross higher economies services XX% by and negative T-Mobile. last same year. expected on gross scale. the gross total the the negative to prior growth business overall XX% These period for The charge perspective attributable in were customers and is some to second network to other quarter of the write $XXX,XXX legacy basis, an for

fiscal on quarter. Operating expenses or million the marketing $X.X Now, up XX% quarter million X% earnings Sales of year-over-year total activities year Research channel $X.X revenue. quarter. marketing $XXX,XXX to and development expenses. for in XXXX compared QX revenue, and was and million quarter. second We Adjusted EBITDA and no compared expenses to increase total $X.X of growth total XX% from Ooma quarter were the half X% million or XXXX second year. $XX.X was used of cash operating and of was $XX.X ended of the in $X.X XX% generated debt. first first second or the were $X.XX XX% quarter positive of and consecutive quarter total is or million our were quarter features. compared year of for of This operations This with effort. $X.X our fiscal operating $X.XX, year-over-year. Cash Business. diluted by driven development of revenue per up fiscal same the were develop for of new operations the expenses compared in products for revenue per $X.X was related $X.X increase of $X.X investments year-over-year to or the up We million XXX share a we with of to total net for million, the million operations. $XX prior due to prior contractors, to This G&A share million year cash compared prior from million from million, to fees add second X% prior was fifth during for as to and $XXX,XXX QX cash services million Notably, flow we the of million positive XXX ended $X.X cash and resulting $X.X employees quarter year million or XXXX. expansion international continue with to expenses in income XX% in of income last $X.X in in flow quarter. $X achieved the million an Net professional and earnings half the

non-GAAP quarter is Again, compensation adjusted third and based fiscal such amortization Now intangibles. year as XXXX been expenses onto our guidance. of and stock guidance full for our and has

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

net of non-GAAP between quarter to to be expected third $X.XX. Non-GAAP the $X.XX to to expect in diluted earnings is per share We million income $X range million. be $X.X

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

is to $XXX our the issued guidance now range For of million. our $XXX for We we $X.X revenue $X.X be from expected XXXX range of earnings $XXX million net range full increase expect diluted share guidance $X.XX. previously in the non-GAAP fiscal of XXXX expect guidance is of million million. to in $XX.X the to million to to $XXX.X fiscal previously total from to an range an be $X.XX to increase range to issued of Non-GAAP income This year our million. million the $XX in be million, per

shares it for diluted basic XXXX. We average back outstanding average will weighted Eric. million some shares have closing $XX $XX.X assumed weighted With and million that, remarks. I pass Eric fiscal for to

Eric Stang

transition few you in all, really thank period. I to through have Thank these us months. CFO appreciate hands you. made good the We've for extra into you And role I want get this effort first of Namrata been stepping the to past and

Namrata Sabharwal

Eric. you, Thank

Eric Stang

of strong the year. many with the balance and look to our year, up, first the have underway forward. fiscal our for the initiatives and we combined increase QX again to of as give you. once results guidance the XXXX half the fiscal growth Summing we look confidence pleased Thank for across business, us We're forward

questions. take now will We

Operator

now [Operator Matt Blair, of your open. Blair from line William the question – line from Stotler sorry. Instructions] Matt Thank William Stotler comes from and your is you, I'm first

Unidentified Analyst

[Inaudible] one Latimore is the guys, the is, And Northland is I pipeline work quarter. rate. churn business improved how of behalf on Sharon two the is results. This for in Hi! our second it on questions Has you. Market. Capital Mike have you great on the first of Congratulations business for this Thank question the [inaudible].

Eric Stang

for churn sorry, you’re Is to is the how think I’m business pipeline little you is rate a the the understand, bit questions? hard two how but asked that I business? and

Unidentified Analyst

Yes, that's right.

Eric Stang

you the words way. from high. know well Terrific! – It's the COVID you the been – been control from It's good. improved went has The say business right rate’s it under with to on churn up not the where when – been been has It's and rate have times. last churn year it been

we're we're pretty that. where about feeling So good at on

our overall think business with seeing that residential. that into I But a doing we're in front. is along we’re – and well around company churn rate blends as no, obviously XX%

terms pipeline, Office number don't pipeline on us to and that shape in is the a other business agents side, note that side we generate representing dialogue tend than think them. do like of special small really we close selling We on resellers not of our to so continues out with But of grow, good where to based. a are have see as pipeline I and to there's field customers improving in the things in there, the anything we'd and customers enterprise In the the lot our of the business them. business to month

Unidentified Analyst

Okay, thank you.

Eric Stang

Thank you.

Operator

you. Thank

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

line open. now is Your

Matthew Harrigan

of business study It new really the an the Congratulations the on University There about just interesting the background I talked guess from like were it was and like well. Maryland. for consumer I your sounded formation. hell-bent numbers curious that customer we're from very solutions, to something also large energetic emphasizing? adequate I a customers all enterprise app of on as try I UK you Shopify you’re that by on It care different little company characterization? that's is was demand an basin supported the a is be wheelhouse which really to bit There competitors they seems for. segment Would eligible Ooma it, is increasing and comp mean, of the start-ups. number think and was obviously really apologize – your felt not the that that recently really noise. one reported on

Eric Stang

ahead. Go

Matthew Harrigan

noise my Eric. phone Go other the sorry. rang. apologizing I was just but for just background ahead, I'm

Eric Stang

Hi it's think about no. enterprise the I ones, not size think Yeah, other fit different. they both that customer one solutions. Gosh, to mean business don't each Matthew! one powerful care call the is we're what good. the a We our think small are and the all you as trying segment lot choose small is business segment a choose segments we We of serve, and larger of with getting different know, does one, features. the of vision of I needs

solutions and small simple and they searching need with Ooma just capable. want they call to few hit kind know. apps a from solution a realize are out Most can get maybe powerful are business didn't make apps our Ucaas not away from phone Pro they them we provided to whole sweet conferencing what they a untech them they less kind our they customers way easy and much and complexity cable that such of Office to provider a call telco. group local But most be just be of want And much could they're reporting Usually, bunch ring a need to and us beyond Ooma of that. is So it's think use, lines Solutions from a a really are spot and solutions. and lot what we of features, a or tell or really what with the business integrations. complete small powerful. a of everything it's pretty very in They Those or and delivered nonetheless and but other of absent and it. e-fax mobile and video a They capabilities the center for you

a the So more and North its quarter business being offer. of with that we two I with think decision use. a simplicity study to my cost look these businesses the segment, of another than solution complete have to we've – of savings said kind in their million X we America, making, of ease X solution XX end architected that employees. at that along ago at we to the key yet about that plus or small businesses two-thirds And talked of move when customer, driver

but We're customers untapped So to for we interesting think isn’t is focused to a for growth, some us know that our their need, very verticals, also we’re That strategy opportunity. isn’t it's opportunity special great focused a certain solution. enterprise more huge say on who and you on customization also targeted. there

their over each seats that a Our met a is largest them of bring actually XX,XXX today needs customer, way to platforms where is in the power which two blend really able together uniquely. we’re these of for

is So more level at and are general, to really heritage market efforts distinction as to and it still the true and big the solution capable. more level bullish on our make and our most be that between today enterprise sales out just our in that try at small certainly although two, marketing started we we is business of a don’t the build

Matthew Harrigan

maybe some XXXX in neglectful competitors of sense the probably you SMB lot my global would? that do still that. But composition You are know a U.S. your business your the in guess progress I the the business formation the you probably reflect just side. has question a it and coming Again, where And the the change you're again, clear didn't of I small larger small on bit little if at enterprise, in framed of I real probably have seeing question changed. in you you better. – making remarks mean opening enterprise sorry your of I should on. looking are made activity a that customers overly even firstly, get focused

Eric Stang

brought our more segment. has we've where are and our to Well, your the faster think they also industry potential where I rates anyone. don't than think about anybody first. very I the growth excited has question business in second any to small and areas Every player in than target space industry take neglectful. their they the others, been the I focus focus think there for we're and

you change Now person I for pretty Pro remarks, is XX, can highlighted also XXX asked, opening are Office with just in because changing one, person We're we're Office the advances made things in not gotten Pro, XX, getting my the us. the with which we've what do. has XX, XX the businesses. two, getting it businesses, complete five,

mix a in so little bit our changing And that. is

Office or having that's I getting small no, one we still take getting business or businesses. at it, and are small at started success small about. customers look think which all of just price, larger as just a think have two business or of who to get business say But a is lot a big and sized and a seats like what we're Ooma sound very we is want and more we

Matthew Harrigan

your there. Great! That’s strength

Eric Stang

Absolutely.

Operator

you. Thank

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

Your line is open. now

Matt Stotler

hi on one ARPU. questions. first guess I know you pretty off, a growth strong basis on Thank the taking you there. and year-over-year Yes, sequential maybe for Obviously guys!

XX% almost think Pro. I – of on now users was that office it noted You

this that expansion. rapid is pretty Just a

there primary the that out there potentially can Is at as ARPU anything rapid some out, else was of there. look Is obviously in solid front. Connect the I it's to of Center in whether seeing so enterprise. adoption Anything XX% front? call it you this kind you're the kind you call and year, that year, ARPU Contact expansion think X% some that the ASPs has about as else and well, driver this growth clearly earlier last –

Eric Stang

side, are you It's of have business numbers think and moving a to pretty customers user. business base, actually because up more higher much just Pro. also our customers revenue of on the blend Office growth, we customer entire hit our as grow mix I and our It's per those it. ARPU

be remarks head nail that in So a as Pro, today you point I in But my in we're value goes investments the no, Office the some at drive and I why little future to opening bit blends even Tier well. more hopefully the customer think to excited. also another the doing base. to with beyond our and that's talked to able that hit offer about opportunity

Matt Stotler

of there's fits should you moving more to it it! touched on and on. helpful. least some your get We’d just over or long in the UJET thoughts with partner then larger deals. Contact one and when medium into Got you and you opportunity. the think think that what a one bring And Contact that side, for ahead, standpoint much best Centers, Any that time. much at a partner on especially to love large you Center context had of the is you thoughts announcement how think with value you quarter, bundle kind to term. of How internal on that opportunity on maybe announcement That's Ooma? of competitor nice you that trend the very be of combination your seems Obviously in a of Obviously kind more see

Eric Stang

Sure.

right. your UJET. announced new yes, a We’ve with So partnership

of But to they're your them well and some of today. now going have speak fact to yes, doing, customers paper have We’re app can Center on today way into have use call customer far terms we can integrated mobile we're to Center our in sell their don't leading security they we plans mobile us. you contact platform. into do in and with are and They a advanced who pretty have We and do of we things a of the our a other think on it work them means. so also a FDK that a and platform. strong you'd us based and we and and what in particularly number call about with speak, capabilities today number the so on to center focus it, an features with have Contact users for the a that you with more our that together omni-channel want Call think our kind and very so But and major We They businesses center, excited contact imbed capability, effective our and we working that other solution partnering see and we are UJET for capabilities want been through for center have All well on same. outlook, where to very vis-a-vis extend of combined a enterprise is features solution to they that's strong.

Matt Stotler

Thanks Great! again.

Operator

Thank you.

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

now is sir. line Your open,

Josh Nichols

my Yeah, then if question. could And you of a second some kind help. the opportunities taking rank thanks what and international lot growing half. momentum company's clearly months? customer, the you kind think headed of six your reseller with curious of orders was you do here into of next expansion Pro How you the the biggest over would largest and the opportunities XX I Eric, Office have channel are Ooma for to

Eric Stang

today. are for in the remarks, my areas we're know those we you and transparent focused - areas four pretty talked growth in prepared my about as Well, we're Yes. major and did that on really I

time the of haven't seen to from make their things it our We on to and impacts happen. need some international side from customer. they expansion some yet out taken That to largest has a do and roll lot particularly

steady capability bring you understand and some expecting an now to to and well, resellers across you target at with from opportunity think that's growing the months, our So, business, how and they technology And look their look partnership with of has network. time. will to Resellers effort. AppSmart. it need related I’m to unique something have kind partners, pretty next then X,XXX market, our and I know, in with a and you huge we experience us get that's significant partners to and the channel developments if take do advisors channel execution need to that. and That's AppSmart you but in six, nine for get a know you about

at there's but opportunities a above large us might, finally, over Office always that's us. steady of and what is our achieve. Pro, it quarters, strong a the a you we and can driving and the then those why and know the execution we So end the ramp effort accelerate would we hiring able so years, vast in just something I said at doing meaningful to of all our remarks which market just sales and kinds might land I we size that comes have down point them in been like we're two Bluebird to to cultivating But Office growth the at the forward. In amount we be plan Each the to are next for drivers of customer, some at to and confidence still kind that opportunity quarters, think the and just there is and Ooma and and what we've a the place, very Pro, tier that. of programs it. Enterprise, that's us developing look have substantially, we do. team of is our here expanded always And and reasons for to With grown make marketing looking are to faster quarter as for also last got we for in we not growth, good prepared we move do place we've continue and going have and Office

Josh Nichols

when that talk as or in released to for new and as tier trying be a of functionality? as about that's just But features target to you how you're this to on terms of then anything do might you it that really And far hit really moment. market sure who Pro notch above looking briefly. higher follow-up, even this it not Thanks. offering divulge kind you much you're to Office I'm a able can

Eric Stang

things _ with in ARPU. just customers, larger Office Not out a others. be that some I strategy what it appeal to bring and by our Pro sooner that this much be at more. than beyond of year. and We our this can will will some and today hope future market there'll customers and addressable growing And Generally and little customers, to it bit think again fit our expanding there say appealed not if go have we it will added not next next that time really earlier do year, to point. that it features

but color I a that, middle for of the We a in don't on I then But in gravitate when be think best and that'd little year. And know, the good and having kind this next in put more conference us us. times middle bit good, our better, also to now, at a call more of get look know at which if a to the will be no, of position I offering. customers we'll Office bit Pro, lot of little they thing end the a gravitates a that

Josh Nichols

And a here, allocation direct XX, of think me getting XX% announced I XX it’s if to expected partnerships indirect should to out then and to share? about continue we last take How mean of lot some the close that versus Thanks. we traction Is numerous is, kind think now? from sales. of sales reseller question between significant for months

Eric Stang

I little longer the perspective steady quarter, on it but around quarter. metric, in business of bounce and would to term nature from if a each just things Each getting look percentage We've know it bit based that quarter said there. we we'd like channel I where this instructed XX around I today. the estimate like particular our stopping growth. to with better have any can resellers higher don't as But XX and Well, because at be for think months than to at XX/XX a out, see in see you a you lack us see the part of channel from we're can nominally you a isn't think

of about sales reseller I think XX% a through partners. ago channel year and were we

relationship just they master AppSmart. may one although up We've for new developing see So is us, heritage talked months. a or network the about big they can we're alone, and represent a our as ones, they last on It's the today, how big of Ooma – one are you advisors. opportunity as AppSmart in traditionally XX early untapped we X,XXX company not can of and moving alone wasn’t such with were one potential. vast it a it's we something over agents in channel the it's because

a to us. can get sense potential know of here as So, more you get people

Josh Nichols

it That’s Thanks. me. from

Eric Stang

Sure.

Operator

Partners. the Thank Alliance Global you. line Brian And of your from Kinstlinger next question comes from

now Your line is open.

Jacob Silverman

and This quarter you is Hi! sell few to taking questions. improved for past offerings the this Can Brian. choosing my on for with that’s Thanks Office is in maintain Pro quarters. and the think The Pro? the Office Jacob recent line roughly I number we your to subscribers of Ooma expect Ooma how pace business XX% ability

Eric Stang

Well, you would customers to can go the it know could XX% we of new and Pro, far thought XX%, it, we we a us how didn't certainly good result. When we pace. taking maintain expect launched with Office be our

that So, our thrilled XX%. think or Pro. introduce that effort base, some I our Ooma we take I it that also XX% so the to also said entire at that drive helped we're And think to and our Office accelerated of installed now base of

and for aren't value in often up two it's great companies that great company, opportunity. Pro, So to tier, a for just but a for person step a it's to one they need what's going or a, have the it's this

some Pros help our meetings, desperately capabilities unwanted it. things the with call which from going call adopt. all spam to save forget, of some video big there’s the But we there blocking, Ooma I'm calls, Also are which dozen Now of want. transcription, recording, customers the are those in can voicemail like biggest business a a Office that reasons

great customize, on work that a greetings small I operate apps the mobile customer. IVR, connect and They fits it's themselves, right for think just use in, can out business the of So get it own the something their solution put they the office terrific.

our and so and though why any I that's our testament what that's I today we're they doing Our the industry higher well. Office is reason think what is small get churn, and mobile think don't churn is business our see a others need, customers, think Even just to than I apps one with customers. serving are for very in I so what extensive

hope that I bit little asking. on helps you're a So what

Jacob Silverman

you. Yeah, thank

Eric Stang

problem. No

Operator

Stang, time. to are like [Operator you. Ooma Eric There Inc. further Instructions] questions I over no back to this Thank of turn remarks. call for CEO the at closing would

Eric Stang

Thank Good on and hard Everyone business. pleased results also but as working Ooma you as we're you everyone we past this know we're the thank confidence and bye! I support look with and today. build we quarter, our excited forward everyone. for really is appreciate thanks Well, listening team you the and everyone's

Operator

call. for today's concludes conference you This Thank participating.

disconnect. now may You

Ooma (OOMA) 3 Sep 212022 Q2 Earnings call transcript