Earnings call transcript Q1 2024

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Operator

Good afternoon. My name is Emma, and I will be your conference operator today. At this time, I would like to welcome everyone to Ooma's Fiscal First Quarter 2024 Earnings Conference Call. [Operator Instructions]

Matt Robison, you may begin your conference.

Matthew Robison

Emma. you, Thank and Earnings everyone, the First Fiscal Good of welcome Ooma, XXXX Call Inc. Quarter day, to My name is Corporate Matt Robison, Ooma's Director Development. of IR and

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

section for the link year. be be market Presentations this webcast earnings replay in of Time. release. starting Relations link the for live active Eastern accessible XXXX Investor information company's and the will also PM first available week This Dialing page ooma.com. our a is website. press included at closed its is today's This for this This press replay of issued X:XX After fiscal on is evening available Ooma call & quarter will website, also of A release the release. Events call on today, for a is one about from least telephonic it being

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

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

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

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

links Also, and release the in X. Info and and Financial in businesses. information our include costs section X-K as in the the subscription our Events of addition press These and our as page the Supplemental of not of & of Presentations to Financial section titled website Overview Disclosure filing, page expenses and X included Financial website about well page our values Supplemental to key our are Disclosure Investors core non-GAAP Results metrics

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

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

Eric Stang

accomplishments you and to initiatives I'm you, for have Ooma's talk with Fiscal executing QX about growth today pleased many 'XX. Hi, XXXX Thank you to joining our we Welcome everyone. Call. Earnings us. Thank Matt. Year our FY for progress the QX underway

our We with $XX.X net start $X QX to million a in expectations to and again growing year accomplished revenue income, good non-GAAP million. outpacing the at

well believe debt our we off the the expanded consistent while are we our our flexibility positioned our good office with year increased this financial initiatives. in capitalize pursue our head locations. plans, With on no start to I cash and investing count size We of a of and and to to growth X growth by plans, several initiatives. $X.X in also growth million grew about QX And

to survey, introduce and we the market by first medium-sized small- of revenue expand and service, of businesses per more businesses our our been #X sizes has progress annual average that QX good tiers sales advanced reach. to customers users voted user, for our our higher solution made and consistently types user in with presence Office, Ooma increase increase Starting strategy to we in shift which features, on is can PCMag's serve

Late features, QX, helped have customers of ever selected our of we Plus. now QX, installed these base highest of Pro and premium service tiers. adoption to contribute in our announced of Approximately new XX% several premium Pro Office tiers, our XX% new which one and in

calls map of quarter through continue road balance execute for additions year the each we Our further as this fiscal strategy. feature to our

adoption helps just thousands care care systems. integrates drive of also NexHealth a and partnership of patient Ooma practice and announced through our with experience dental with growth that pleased office I'm other efficiency, professionals at other front patient dentists improve to management Office to platform and health engagement very highlight NexHealth cloud-based practices. practice health

taking of combination patient experience. or do Significantly, now to In competitive calls. real short making all, with phone but and patient can fall NexHealth, providers staff sync partnership view the with features so compared best-of-breed our solutions Office bring information, true to details in try Ooma can it advantage health when other can customer time two to care on

the NexHealth will sizable collaboration market solution our two We which an Ooma currently together. another. estimate XXX,XXX have health and the one promote of and exciting are combined introduce in This is practices represents already NexHealth course, and U.S., Ooma solutions and, customers care opportunity. underway, to customers there and using very

our true strengthened custom discussed, where deepened team to solutions other sales QX, for relationships select Regarding sales opportunities and build the verticals as channel channel we've vertical. stronger to In is corporate Ooma and to our our serving can serve Enterprise, our bring hospitality we strategy, differentiation we versus and drive growth. representation

a in place a this intend address vertical made We to development launch put key are and new with the we announce help on significant in progress and of partnership also to hope it. vertical, along to we targeting QX

growth occurring most in Internationally, our by more Europe. serving of largest we grew significantly in our customer, at QX users with

growth was customer. As significant expected, quarter QX for a with this

enable on to customer Asia. development is this in QX, Looking expansion new completing our with ahead to focus

As beginning half growth in significant such, during expect QX, don't this back growth year. we in anticipate to do further and the we user much users but drive of

to expand into before of intend the fiscal end Asia year. also additional beyond regions We this

up to serve course, lines with to market Now bring of expensive traditional business integrated and POTS the needs. that engage customers act We the vast, we is critical waking true the that that and and to AirDial, increasingly innovative, believe the aging our which, competitive learn need is more we are solution replace advantage. we turning more customers. to We grow excited

needs. solution difficult solve Our to allows cases nearly and internally end-to-end use satisfy us all designed customer

us end-to-end meet customers uncommon had have for and can fact, competitive who our for product advantage. We a experience we with a success. bad as control key not In to architecture the demonstrate it over set a is whom

of We and bring for we level our structure high including support. providing cost and also unique our functionality, implementation believe efficient services remote installation our of management, deployment device

great of QX funnel installation solution, customer We new invested with and the our as increasing streamlined of in sales extended deployment and in made progress awareness. our and capabilities AirDial opportunities, we expanded team added partnerships

in on by grew to T-Mobile. AirDial our also operate I is we U.S. In QX. executing networks. including that our pleased substantially partner, addition well sales go-to-market their And Cellular funnel important installations on AT&T, to and our Verizon believe strategy, with wireless I'm AirDial report and to are certified we now T-Mobile, increased

AirDial channels also solution has sales excited will Cellular AirDial chosen to for to for integrated in wireless U.S. service anticipate resell and AirDial. some a intend Implementation their pleased is that XX is as and by report underway. selling to wireless Ooma sometime them in they the We we have that more market than fifth-largest this important Ooma. operates hope We U.S. will I'm combination their agreed fixed given take summer. the their naturally an grow Cellular business through but the that connectivity and become customers. in wireless carrier an particularly U.S. program are and believe partner to They in be this U.S. states. effort, providing Cellular is planning for already with desire

for countries are new keeping busy, we about verticals future. Office, for Enterprise, us commercialization features have and into AirDial is growth but and development As on going all excited channel across Ooma a us expansion the international new have lot also new Ooma, of Ooma evident, and

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

Shig Hamamatsu

you, Thank then to and afternoon, everyone. good I'm our provide second review quarter going Eric, the financial quarter year and XXXX. our fiscal results for and full outlook first

the of services the million, addition accounted first with QX to to total grew came total XX% to $X.X other million and in revenue million $XX.X as product quarter, a Business driven in OnSIP. quarter quarter. revenue for our total XX% solid business In end year $XX.X of and strength million. range guidance delivered the Subscription compared year in Ooma a million the at well prior XX% We revenue quarter, at revenue the first as as and compared quarter. basis, subscription $X.X by year-over-year as the prior Services of On of revenue of high the $XX.X in of another

range On the million million was profitability the our year million $X to of income and XX% quarter. net $X.X front, the $X represented in $X.X over first million, prior increase above quarter guidance non-GAAP

addition driven details and of Subscription in by QX XX% and QX, on Business some our revenue growth grew Ooma Services revenue. Now year-over-year OnSIP. the user

subscription Business services effect revenue the and Excluding Ooma grew contribution, XX% OnSIP of year-over-year. revenue

Services On the and Subscription side, revenue grew residential year-over-year. X.X%

churning specific As other subscription our in as Telo by to services with users Despite was a the Ooma continue strong and relationship negatively remains revenue customer. during this Business we approximately the this our mentioned customer in residential last offerings expand our quarter onetime with the for impacted users. event, in for quarter relationship growth call, X,XXX first

quarter, For revenue revenue the total million compared the of XX% $XX total as prior $XX.X and million services or revenue first was of quarter. total in XX% or to subscription

Now some the increase had users users end QX. metrics. an quarter with fourth up core X,XXX,XXX XXX,XXX We quarter. our the business first from customer we core key users, or first users quarter, at XX,XXX core details from ended end of At total the our the the of of X,XXX,XXX from XX% on

business Our Office Plus X% average monthly subscription Pro an user, and increased ARPU year-over-year services higher Pro of by driven or blended mix core including users, ARPU, per increasing users. $XX.XX and to revenue

take tier. Office users see rate During new XX% year now tier Pro in of the and Ooma prior Plus Pro with Overall, for of Pro Pro Office healthy subscribed the up continued our Plus XX% opting these from we was or have services to which first quarter. users higher XX% quarter, Office a to

recurring was up annual to grew exit revenue million year-over-year. XX% Our $XXX.X and

about few our net retention A words rate. dollar

in or a new first retention to year, transitioned last the our methodology in mentioned quarter rate. call, calculation we dollar As effective fiscal this of net

believe we period customers, of majority reflects more new of our from during the revenue the reporting With the Business in the now with subscription the and performance alignment peers. in industry reporting operational methodology generated is better Ooma practice our line

of also net includes comparable in press along was disclosure retention key our Had the retention supplemental for been have the our in quarters four net our was The rate quarter methodology, rate for XX%. methodology. new the the XX%. rate calculation net the release Under pro the metrics disclosure a new that forma tension also published new of disclosure dollar we methodology There last with year, new fiscal today. dollar quarter fourth would the methodology past using used dollar schedule detailed is supplemental

margin. details some our Now on gross

the The XX% in increase the to services quarter gross as in and as in of the margin subscription driven last XX% improvement negative and Our period first year. and by Product customers. mix same compared the was for gross our to margin other and scale was business subscription year. quarter first services greater compared negative ARPU for prior margin for higher XX% was XX% a gross

due year-over-year chain of product last in impact our supply As gross higher that we components of the certain issues. pandemic-driven year to mentioned primarily was to anticipated had to cost -- call, in in fiscal last decline this ahead procured the margin we the the stay

to impact costs same and P&L fiscal gross other to the component for of million the fiscal compared XXXX impacted as reason be remainder to in through for expect such estimate quarter. be overall XX% was basis, the total We excess running gross year $X million. On onetime of to $X and prior margin an continue QX product XXXX negatively XX% margin for to

from the operating And first were up million last Total expenses. quarter year. $XX.X now expenses our on $X.X for some XX% period operating million, the or details same

Excluding operating increased X% the impact million or period $X last the of expenses from OnSIP, the year. same total

open year-over-year, of of up Sales as for related driven activity the expenses. by X% and includes and million the AirDial, well first were OnSIP revenue, higher marketing marketing addition expenses as quarter channel $XX.X or which Ooma for XX% total Business,

year-over-year expenses well new revenue, development were Office Enterprise million, Ooma and such new up or international from total as expansion XX% for of year-over-year increase products AirDial. Ooma and Research portion of expense with in to largest XX% $X.X $XX.X both driven activities million features investments A by was in and of related customer attributable the members. addition to OnSIP as team also the R&D the our as

the was as or year earnings costs first and compared due were the the quarter total OnSIP. compared share for $X earnings X% share $X.XX G&A the quarter. of year-over-year Non-GAAP diluted personnel first increase in addition an quarter. $X million million quarter to or expenses million of prior in net of to income expenses G&A to revenue $X.X increase year $X.XX the was primarily for of for The prior in diluted per per

increased quarter revenue the we $X.X ended and cash Adjusted XX% over of EBITDA generated million and from for X% prior of We cash from Despite which in for operations seasonal was or the increase total total QX. with million million, million million the year investments end up million, $X.X the the quarter. period first quarter was the challenge $XX.X of which represented $XX.X year. same the from $X.X in last quarter, of at $X.X

On front, and the we with quarter X,XXX the contractors. headcount ended employees

provide full year for quarter Now fiscal year guidance second I will the and XXXX.

such adjusted is and as and a of guidance for basis amortization on intangibles. has Our compensation stock-based non-GAAP expenses been

the for XXXX $XX.X range which fiscal million, includes revenue to of $X.X be of million expect $X.X million to quarter $XX.X total to the revenue. second in We product million of

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

average second outstanding assumed for We XX the million diluted have weighted shares quarter.

fiscal revenue expect the and full for million. full reaffirming total growth revenue and The we Services the XX% $XXX.X and assumes residential. subscription fiscal XXXX year and be Business for to Ooma X% XX% are of XXXX, guidance of rate For year prior $XXX.X services in range of revenue growth revenue guidance to million to Subscription

to revenue In revenue year, to remainder XX% of terms mix total revenue come XX% we services and subscription revenue. the the expect of from and from other for products and

million. of income million We net in $XX.X XXXX the expect non-GAAP to fiscal for range to be $XX.X

revenue to to this XXXX or we EBITDA estimate approximately our million on end. adjusted Based at range, fiscal guidance million for be of upper $XX.X X% $XX.X

diluted diluted range fiscal That expect in for XXXX We non-GAAP fiscal XX.X EPS be approximately XXXX. weighted to assumes the $X.XX. for outstanding average of $X.XX million shares to

our In to long-term focused fiscal summary, on profitable pleased remain growth. we our are XXXX and to to strategy executing with achieve our solid start

for to back Eric? it pass now Eric I'll closing some remarks.

Eric Stang

Shig. Thanks,

fiscal mentioned the year. good off at As outset, I a we're start this to

marketing in our on partnership have target. and leadership fortunate investments, our Our Thank making strengthening goals. executing those good we well focus with advantage is growth and momentum segments on financial competitive are carefully sales, large strategic before underway. investments We're opportunities end, the and especially us balancing and are to and we each To initiatives our of that in you. development

take now can we questions. Emma,

Operator

first comes Your from the Blair. of Instructions] with today line Matt [Operator Stotler William question

Unidentified Analyst

This is Matt. Alex for on

how seen the just maybe the the approach you've vertical-specific any and partner TAM? the on just NexHealth? traction Jazzware partnership thoughts expands talk Could So with Jazzware one and your the on ecosystem. about with you partnership market And

Eric Stang

Sure.

area of all an ours what, XX,XXX the area because last in a plus it's into and that's hotels So growing year. Jazzware needs in desk. them in with And is stayed year different the a other partner after. this there's, PBXs because and for space, through hospitality been us on and go closet lines have a front analog needs rooms lot to the to they exciting still types America the at of have And of complex North

to with refer from solution a the connect to management their phone property basically for to one in along up their moving Jazzware. customer us vertical. ideal ours a customer does allowed key and rip And replace get And XX Jazzware. for service. cloud us about adopts really referrals and is advantage systems. we We different that Jazzware have to the to that customers That's

if can We remarks I some -- didn't that well. about specific. we few with It's and making the progress made large of are get excited a certifications, too where kind the will, do I have we great in although go And solution. we're vertical. It's complex, that And you we're with a thing we of our my script pursuing chains. about hotel there.

So is a enabler that vertical. Jazzware us key for in

We manner. view similar a NexHealth in

but have Some of may no player small in not they're space. of NexHealth, you the heard

that XXX data, XXX,XXX in employees. in And their more to LinkedIn had what they've vertical. available tell that momentum we we've And says And you, leverage have the today that got Association million month that already came was both $XXX serving called vice -- the says versa. And want practices. were them. publicly we through a at Crunchbase NexHealth or week. or getting got to dental customers as Dental visits California invested citing and particularly they're us website. they we Just last they've to target I Clearly, Show can more

aren't space does bit it's a think give benchmark I than customer. and for to When you yourself the the a to solution very propel a that ensure what can complete little just our And solution way we versus faster solutions. one the host think we what whole of available Ooma the you with some if overall in a of available features that in competitors' the space there's others of go selling, and they're Office

we good space. the to advantage think we competitive bring So also

marketing and Matt. hope that level the what ultimately, of effort in answers activities do is for it targeting is put you, success vertical. our the sales majority own us. by we But our this of our I for But driven partnerships our

Unidentified Analyst

And really great. just little Super switching maybe I that's color. then appreciate bit. one other that Yes. from me. all gears One helpful. a No,

increase view to growth key revenue where as the normalized What office your -- profile potential we be today? continues macro? do the percentage So for you from continues on drivers view in a business guys to total. as a to there is And of get what that are

Eric Stang

employees, X we Well, kind segment, opportunity. our well, in smaller have our down, I to we and Bigger of to have tremendous -- America think space but at we're picture, elsewhere. in immediate year, cloud. the beyond and light against. you we up is Europe look in business the of before XX That's mean, this million we the X/X to for what them just estimate yet break expanding small our to of a economy got X and outlook with -- of how see businesses you North which move And segments the maybe about serving largest our customer that's guidance

simple will structure so we we So fundamentally, super we appeal the great an you we of as ARPU are Ooma on small industry to set of value. to to to needs. have much frankly, all and because has way something our put And that believe doesn't that up in we that can business low-cost needs we IT professional go focus the for a segment, go, have, the really that. that in it's just And bringing pay additional customer so. us, use our our together we and don't do at The our Office. in what targeted with with that improve think others for And solutions that, solution reliably. office along works out go, range kind features that expand businesses But

verticals our well needs can very there's move much types a custom of platform, more to and can It's of nature because of customer requirements, customizable. other we establish do the of Enterprise. or is Ooma target differentiation which We we that where a certain where over

nice We some capabilities So be the I'm and this of really we Frankly, way we to sales And bigger. last those we get in the to excited fronts. made in channel to that part all our progress on trying and the in on able QX. team. is strategic we've to and hiring opportunities develop to grow our just grow quarter, want some did expanding got trying strengthening particularly this just have if going want, team, we're to

not be alongside won of own of And big With a AirDial, see ones couple thousands, little can very AirDial X,XXX of over of with incredible were even yet, as to win opportunities. that installed. to we I how is customers we you its large customer just some And They're see tens come. lines opportunity. there, our And lines or revenues really can big on be think for but out thousands the with better going AirDial -- well. whether our not momentum we part of years great a small We function these more us. bit up will customers opportunities show we of a last They're needed as look quarter.

focused right does we think we a to sure, I'm success and still, segments. though you of but little majority our the what the economy than that's work that's targeting And us, is for affect the doing. on it execute hands we think in can you. even good So but challenging, it's hopefully, a have we're think asked, we're more harder we answer and is not our us makes if Hopefully, well,

Operator

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

Michael Latimore

been any stable. stable. That's December got general you then April better. a call, very it expect one to I that was assume on I March, on the second, it's number, context? color last guess, November, question. that the you slow. guess, mentioned I on I to NDR January February, Eric, be in And guess continue little

Eric Stang

question, let first the and Sure. I'll Shig take I'll take second. the

Shig Hamamatsu

Yes, anticipate Mike, answer the that is question the short that NDR. stable. Yes, we very that's to be on

continue expect would the we the Looking saw again, case. be backwards to that Eric? down stable. pretty to XX% We and methodology new

Eric Stang

talk QX. strong a end the was to and picked our calendar seemed pretty year, about in through April. little down thought how year, conference and slow did it through We bit last call the at last up on quarter QX, Yes. And of then I

our marketing And for the quarter. spend did of we pipeline with of did the in opportunities, I'm think, business. addition the I particularly increased growing also, And yes, through AirDial. other a balancing to in funnel our good the for growth in funnel of significantly areas That job pleased us. the We that

anything all, I in all people summer we we're But little are a after little first think traveling resource sales that. think that from yes, today, think see of the bit and If we're going the comes constrained anticipate as there. a opportunity I on we'll be big having the back going to all -- expecting bounced not will it more in quarter. change a I But

Michael Latimore

Okay. large Great. for And international a the I guess pause year? of less Have you half in APAC in adds And later the customer, your than sub plan for the more then then in on expected or always business? kind that were of ramping they for quarter year? is

Eric Stang

big was it's we've that. In to It to in they it in get a the big yes, a other as them. thought probably far maybe we QX had But we a little business think get I than say might for in grew big parts quarter well, quarter longer significant the because farther onboard So but us we just as takes. us as in also was quite we go contributor as And it QX, effort didn't of taking were our didn't them users quarter ramped very I with a QX, Asia. because too. would other any

the think And year guidance strong them much my will heard with back you of not the that half so again. we're be we expecting growth

we we the sum I up, year, potential have overall do think if better were the to planned. it for to than I

once we I a But up have pace that's rollout. we than running more that of likely see think the we'll get on Asia better and and perspective not. in

we've been of more this on in want got of to couldn't end So work great year, the But things more regions going be to Asia. beyond lot together. before They've with. I a And pleased. be we

of to there's So work do. lot a still

Operator

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

Brian Kinstlinger

provide number more of a a bit terms some can more detail Maybe development, sales particularly, any booked lines understand on and get little business that. AirDial preparation of increase would sales about to side, talked lines in from in context context, us about you funnel? kind the or customer cycles in the numerical of Wanted you significant backlog help

Eric Stang

not don't in has We're way as I reasons. which specifics Yes. couple they a outlook want fundamentally talked the changed do well very the proof opportunities, competitive large of the think last is to divulging those But I about particularly as mainly the got from we've going for quarters, concept. to now their ever to running it you're into three than kind of take negotiations where you more cycle run proof two And of they then to of those course usually concepts We've can right and had. -- there. go months between go

we'll they next big tranched need, do our We did of they either. installed, for of all tranche and not have for sign they get instead do last And largest those to we'll the need, come going to not it be quarter us of have of bought our and because customer they're it back do customers once we'll lines. to kind some said, opportunities a up at with everything hundreds but lines, once of we able thousands

way talked about I've the side, third-party our in the to It's installation. going a work vendors that we past, we at are getting with are positive doing the on better compared it faster better But job.

For we're a much within good a situation. take to I do weeks, getting think ready got go, little on our bit close customers to AirDials you have deal and And months, you weeks. can auditing not we installed and on how own much they installation deployment their out In front. But about their making words, are. needs progress the know to find other what how

sell quarter. can biggest opportunities it's planned deals the QX of two QX roll that really that you we've what for QX what in And maybe QX, deploying are probably we through deploy be in to If sold will have the then QX at quarters in even we look or out. most what because QX and we take

But name starting starting think customers we POTS our getting of customers waking we found that to love And will, are you think And to is clearly see think that get we're that that. been I if to that, away. to lines around. they is of which me, next the up. to as say, and the us. inbounds, We've some big go five cold solution I look are years have type this to out three I rollout evidence

it that's we're that's don't asking, also quite that little know if you're longer-term share. a with maybe at I so but I horizon. And what can looking

Brian Kinstlinger

base good. I follow-up low-hanging I what is base? another their That's fun their a Did you your to fruit any cross-sell guess, maybe installed their give NexHealth. Maybe on missed into Yes. My customer gauge, you is count to there question. it is, that one -- customer can answer or

Eric Stang

They're No, a space, that. And it solution sizable in I it's I if I didn't it were company, and think for private though. pretty to to you the be able in them disclose. think up their see But very they're would action, give modern.

think I and it customer, that's positive for what what well I they're the to shows think doing. very

done together. referrals between it But already our some So going All I ways got now we're right. no. both say working customers think can two with got we've they've companies. I And is we've

Operator

the from line Matthew comes question Harrigan. of next Your

line Your is now open.

Matthew Harrigan

do global presumably, you comment blowing a piggybacking they were going want somewhat do and from a you not But able why your I large Hilton up and and that like and and international efficiently pull one happy you're if that vertical been I'm are is your vertical, on been at you with you've into basically in you. with just that of if is your reason -- clients' product? vertical sure internationally any like for customer? certainly When -- entrant very it global they I Because the push look misunderstanding something. And definition, Isn't a it's to Europe to there that's to thereby the there almost by clearly can everywhere, know that opportunity to you're customers seems not Asia other your is that enamored way same versus I'm hospitality lines. your mean, expand the largest U.S., specifically. that, not on able large customer you've wouldn't

like someone you Germany not Hilton it, you or indicate were assume in or You there already, I'm lot doing a that getting maybe and with were Japan I there you if something. would

Eric Stang

the Yes. of brand and you individual coming question. in franchisees, entity often to I sell the the certify by got not hotels. although have to momentum you by base. one way, we one can logical get our under hotels their are But sure In of in so owner some from, be a word I'm those but individual operators, belt, their who's tend if I'm regional using and that's can hotels a to a these or to that know corporate where lot I nature. an you these owned get experience, go guess, But you still correctly the either recommend, after And here. think hotels through have you're

we are America North front hospitality our all the beyond and thought far. on so America activities North it today So about really haven't

Operator

question [Katherine next from Riley. Note] line comes Your of the with B.

Unidentified Analyst

I'm on for Nichols Josh today.

cadence comment first of the So sales your about expect pretty talked rest throughout just you quarter. if seat year? I maybe of the question team this significantly just on is the strengthening could the you wondering adds And was -- you

Eric Stang

Yes.

which where think, continue strategic larger two senior development we quarter terrific. direct folks sales But folks make drive is AirDial on now do that who is primarily can either to customers, made senior like more we as very focus to advances And driven is hospitality such primarily activities. opportunities in strengthening the I some will our in hires recently by after. And last or we've go that. is or Rob, we brought our sales activities channel our team under some to So particular and areas,

we've if So and branched but into we history building own channel very at our Ooma, a at strategic then strong the sales sales direct you very -- very, inside strong channel level area very, grew in it's or of we in XX development, we are opportunities, to were always and as going I'm We large year. our maybe that the assist -- look this in XX. QX forward to versus say, by that's an about headcount investing we're QX, look

Shig Hamamatsu

XX.

Eric Stang

need as be was that that that forward. of a need for maybe next to. in some, we of to a it but of in We'll sales. of grow base Yes. Most lot much the on more three us order go won't good was We to the that's And -- Shig won't says not quarters. grow XX. growth

Unidentified Analyst

you do Great. then but revenues breaking missed Okay. I the -- you can and And this again? residential earlier, subscription out think I mind business

Shig Hamamatsu

million business see in let's Yes. million. -- revenue residential Business QX subscription $XX.X $XX.X for was and and was

Operator

back I'll the no are There call Instructions] [Operator this at time. further remarks. turn questions for closing to Eric

Eric Stang

resell on that's going Thank for large Cellular's big step and is a speak, to on think key partner U.S. They to brand decision they're -- news the for for us. paper, thought that And selling big, us a to name. it today new so some one you. great bring that us. quite for Ooma have very organization, I I to step the of I you ask another of key might mentioned AirDial AirDial. their under and me is be a things next about

the joining So as your and us I everyone, appreciate off. you, want we Thank at here today, to we end for sign emphasize that time.

Operator

for concludes This today's you attending. Thank call.

You may disconnect. now

Ooma (OOMA) 23 May 232024 Q1 Earnings call transcript