Earnings call transcript Q2 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 Second Quarter 2024 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Instructions] [Operator

Robison, your Matt may you you. conference. begin Thank

Matthew Robison

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

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

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

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

could expectations actual materially regarding these matters that results are to may results Our projected. subject to and from and uncertainties materialize those and differ risks not beliefs actual cause

and set Securities those Exchange risks earlier today Commission. more press forth and include risks the release These those filings our fully the in we with issued described in

the as as any in The hereof update required of us statements this we forward-looking date law. to disclaim on presentation by based except obligation available and are statements, forward-looking to any information

with a isolation a this to are measures than call as be non-GAAP financial intended accordance to on measures GAAP. disclosed prepared substitute the non-GAAP considered other stated, The or financial that note in in results as revenue basis. Please will for or be on not be otherwise

our included a financial GAAP discussed will third why the measures give our guidance basis. full on of On on and we is directly non-GAAP the non-GAAP of is XXXX which fiscal this comparable most present press reconciliation financial measures release, for call earnings in discussion available year the a in measures website. we financial call, and non-GAAP to quarter this A

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

Disclosure X Financial X. are titled Supplemental and Supplemental Disclosure Financial These

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

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

Eric Stang

XXXX Thank you, us. to Matt. call. Thanks quarter joining fiscal earnings Welcome Ooma's second Hi everyone. year for

reviewing looking to our this I'm QX. pleased and performed the made in initiatives progress well to I'm forward we've Ooma accomplishments have on underway year. growth the several report we

achieved $XX.X million operations income, million $X.X of in Ooma from and non-GAAP Financially, EBITDA, million in flow $X.X $X.X million in cash QX. in revenue, net

in spending OpEx the well our quarter reduced managed inventory. also and We

XX% grew that believe growth to drive year-over-year. we today in well executed exit with up a we million a pursue annualized our $XXX Overall, to of versus business and results revenue I revenue, position is ago. its important the growth, XX% services these year QX ended strong initiatives. and in Regarding subscription quarter recurring Ooma strategy

of features, our Ooma designed course combination which QX, businesses, which solution Office, invest use, medium-sized is small advanced award-winning for ease of seek of in affordability. and to During continued we a specifically to

chat, including online and many and bookings, Pro with facilitate Freshdesk. to messaging, added integrations customer Plus, our service CRM to to tier, team top and new collaboration Zoho several We new features one interaction,

that larger which, experience slightly customers These service performance with revenue user. faster introducing our Plus available tier, user and Desktop cohesive capabilities Pro improved to per for allow our the Office an updated and user to continue interface our feature in along interactions. drive also a target simplifies Pro higher out build our enhancements strategy app us tier, We more service

Ooma to is our strategy making working while We on size. feel communications for by Office serve our larger increasingly us of any approachable allowing businesses focus longstanding customers, maintaining

to As democratize QX as medium-sized tiers journey small in users of advanced businesses. past it our new in technology our one two quarters, more and than continue to premium Office half of we make selected these accessible and

XXX to valued our win solution. see Office a Office from Ooma size, users is a and partners XX products Office seeing We're at I'm QX potential account their Office targeted in good to fit one with in flexibility businesses which also and interest as the While services. largest to customer pleased user was our of report affordability in

Last focuses have we we Office and the quarter, you a may announced recall, additional with in NexHealth, partnership space, dental which progress. on partnerships

continue to Pro For out with, Ooma and enable the this the partners our resell, rest set for feature tier in to Ooma more to plans integrate of Plus Office. and Office to cases, build are some year,

invest verticals of solution focus One for customization. with We in businesses targeted us is or QX to secure in wins Ooma major we brand larger-sized Enterprise, in customers, need also our to continued hospitality at continue hotels. in where select

and to of SMS case. in artificial new recently working our partner in an core support with capabilities use intelligence their platform began also telephony We enable a

be model. will into business the Enterprise partner solution via incorporated CPaaS-like Ooma a

targeting partner Our and year. is has this deployed several already launch customers alpha

this Enterprise case a specifically While bespoke ultimate we to Ooma of the use one-off as demonstrates don't believe I CPaaS power needs. platform solution, to our promote adapt

agents for plans this also to industry-focused our while telecom of rest continue and the are For network growing our resellers. our strategy, of Ooma Enterprise year,

investments making expand also to We're internationally.

customer serve step new by a in QX with world. place capability major putting a largest the we our planned, forward of As region in made to in the them

coming will earnest the new weeks, rollout in Over this we region. in begin

more increasing visibility a during gained pleased also users that anticipated able QX, users we add for I'm to or more report to and were customer. this we than XXX,XXX we to with

to implementing year, in on customer users. focus on well onboard their this least the our will one For as this for region new service of continuing additional the plus at region as balance we

investment Our integrated our infrastructure and at replace this critical expensive other serve largest of is copper Ooma aging specialized time AirDial, solution and applications. lines to that area

As AirDial, USA opportunity both massive in you market countries. know, we in for the see other and a

make Our and out door feature phones, enhancements to our AirDial in programming continued access modem as version network Device of implemented older systems support to we X.X more support autodial QX of Manager, features brought emergency Remote to reliable. remote implemented side

long end lines tail to of we a the ability market. solution we an copper feel equipment on and relying advantage needs as end AirDial is all today There the is to our and specialized meet evolve the total to older of control

to platform the aspects with needs cases, another platform provider all of customers including to have circumstances where in of our Owning challenging failed has adapt the allowed use us had those previously. end-to-end serve AirDial customers

launch this UScellular completed its AirDial and its month earlier announced offering we and through Commercially, organization. planning sales began

win fact, In UScellular's the XXX I'm pleased to formal even customer occurred with that launch QX, a in before customer report lines date. first requiring

to we In this solution not situation case, a were very short AirDial UScellular customer and displaced timeframe. the a a where in competitor compliance helped in maintain needed whose working a deliver products well

some wins for funnel AirDial had quarters, continued quarter. we the to QX in in past our As notable build and in sales

win was group, largest restaurant deploy lines. which Our QX a XXX will over

through approximately QX, these retailer opportunity, who are of came also AirDial. XXX lines. large end won the of Just we of Both opportunities days representing ours partners reselling after a

thrilled Essentials platform. This and Prologis' platform as Ooma have we this only through customers. featured Ooma will and week, report their Ooma both regarding solution to the in announcement other offer communications. I'm We're the Office for a Just Prologis, made business building services and AirDial largest exciting to provides their they AirDial. pleased further REIT that of base world, parts and replacement chosen large

our customers two Bringing to Most of on AirDial we typically, AirDial, addition cases, our us. to to aggregators, other and quarter, they last in drive in partnerships key and resell CLEX, two two partners resellers. This growth. is UScellular refer also established one Prologis, but some new with partners strategies

significantly, grow and more and Our year AirDial establish further solution. rest plans to partnerships, our resale enhance differentiation the this for are sales go-to-market of of our resources for the

I've call and now for I As discuss in and our CFO, outlook to of we it's us. outlined, remarks. an some with the Shig, and then underway will return more detail a to lot results initiatives have over turn our exciting time closing

Shig Hamamatsu

I'm delivered exceeding revenue $XX.X of review second Thank to $XX.X then good our the everyone. afternoon for quarter range going of a our fiscal million. quarter financial to results XXXX. with and you, provide and full million, third Eric total another strong $XX.X and million quarter our outlook guidance year We

services of compared the basis, revenue driven XX% strength in subscription subscription year-over-year the the and a to second in addition OnSIP. for XX% grew prior revenue portal well of quarter, as as of On quarter, business quarter. XX% year second and the services by Ooma total business In accounted as revenue the

came as product year. included other million $X.X year The at recur in this prior certain year that not QX and quarter. prior product in revenue accessory million QX revenue sales compared did $X.X the to

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

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

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

subscription residential the and On revenue year-over-year. were flat side, services

QX. one-time a churn event and particular the impact with X,XXX customer lost unusual users a full first fellow had we a it quarter in approximately application during reminder, a with saw we where As quarter an of we

single-digit We year. of second expect low year-over-year Residential percentage this basis subscription at a revenue the resume the on to growth in fiscal half

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

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

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

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

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

Our the compared XX% quarter first to as XX% net subscription was in rate the dollar quarter. retention for

gross on Now, some details our margin.

quarter for and as was year. prior the gross in XX% subscription XX% margin Our the to services second compared

which margin, is reminder, year subscription lower of Ooma's included for a margin services impact margin OnSIP relative OnSIP and to As running fiscal gross when gross this XX% quarter is the gross subscription excluded. second of the

subscription QX customer also year of into investments expansion and for services certain this prepare for second margin made impacted as we by largest this further was half year. regions gross the new fiscal in we our upfront

negative quarter to other last same gross was and XX% XX% margin Product compared for as the negative the second year. period

on to the following QX gross As last was mentioned last versus the was decline year in three this product factors. call, due anticipated our and margin year primarily

driven the saw procured of issues. stay certain sell cost had pandemic components of we last that supply fiscal through the year in First, higher to we impact ahead chain

we gross margin as prior completed And certain a did facility new this sales move QX facility the we accessories to non-recurring incurred from product during year. that that our year third, quarter. recur cost not Second, warehouse benefited

other in to margin the currently running negatively for costs the and year of second XX% to impacted remainder basis, this estimate On one-time negative to margin other P&L half in of quarter. XX% neighborhood fiscal overall compared total fiscal be gross continue for through gross prior expect to the as and XXXX QX the for component an and excess of We margin gross year product be product XX%. by was the

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

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

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

and $X.X of up both million investments expenses Ooma in or basis development X% Office new total such $XX.X AirDial. as and from products on by features as revenue, well as year-over-year Research XX% new a million, driven for Enterprise Ooma were

the A portion addition our international of team was year-over-year of and in activities expense the the also members. OnSIP increase related R&D expansion customer for largest with to

million to The personnel G&A $X.X year an to year-over-year or increase addition quarter. due the $X.X costs were was expenses increase X% of for quarter compared G&A total the expenses second primarily in the of revenue prior for and million OnSIP. in

the was year $X.X per Non-GAAP million total to prior represented million in second net compared quarter was million over $X.X the for the quarter. quarter and $X.XX Adjusted $X.XX of XX% quarter. income prior increase or the for revenue earnings or as of X% diluted EBITDA $X share for

We of $XX.X million which $X.X the same and year. total cash $X.X $XX.X last generated of at in million, from period investments increased ended with of the million cash our We quarter end from million, operations which QX. was up from

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

for guidance quarter a provide I'll Now, third XXXX. year fiscal the full

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

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

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

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

we fiscal The AirDial the guidance fiscal million. $XXX.X to to our total the revenue to adjustment the to of XXXX, be For high end around range expectation revenue expect $XXX the related this product full of in of million is within year. timing range year

pipeline due some we will timeline. be to While we of AirDial shipments next year, fiscal AirDial excited are primarily of about customer-driven deferred very opportunities, hardware to growing believe

prior we services for and is XX%, expect the our of which subscription year-over-year a rate growth year, revenue from to business XX% expectation. for unchanged As

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

In range. raising our guidance of terms of we profitability, the are prior bottom end

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

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

We expect to $X.XX. in to of be non-GAAP XXXX $X.XX diluted EPS fiscal for range the

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

to remain In performance summary, we long-term solid with the a quarter growth. second strategy achieve on to our in focused executing pleased are profitable and

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

Eric Stang

that and since, Thank a founders XX over Shig. with successful users small and years since X work. to over X,XXX you, Ooma contractors. the company have public month two we a got This and original team into employees of In million marks hired time developed growing

Over billions years, the we last believe features to in XX they we advanced them previously what also traditional with to dollars aggregate of have and customers have consumers. phone while compared saved smaller the bringing businesses unavailable paid would solutions, our service

in exciting that leader most by in a for us, the possible Perhaps change technology. disruptive have cloud we become communications made underway

we're the market strong the excited underway, initiatives over position XX multiple years have about the outlook. With have we we built and last our growth

Thank questions. you. your take we'll now

Operator

with Northland of comes first Latimore Mike Instructions] Capital. line [Operator question the Your from

Your line is open.

Mike Latimore

the Great. there. results Thanks solid gents. good Congrats on

in the next is of are there partnership interesting. fully getting steps terms Prologis launched? that So, the What

Eric Stang

take will us certain think capabilities I for platform, area communications, demonstrates to Essentials few how maybe a We'll it be they I that Ooma weeks, longer, least bring. platform. solution their a also kind into of them of the have it's which but is what to the community it Essentials They fast on can new on. with for part being whole platform, It important they only depends think have little at web-based a have REIT in not their move. for of categories put customers draw They a but

that world REITs Prologis the clearly there leader out I they're the because in look in know many space. to And

just that So, get think space. us important was the awareness out the that for press for trying to and release it continue do I building we're to

Mike Latimore

did also, about on And just, Great. AirDial is And, a talked Can being timing? path presently? your then push of why some your their towards just you out like, you largest there. the count XXX,XXX a users user customers mention, customer, what

Eric Stang

XX,XXX I them Ooma with fiscal a largest more taking obviously users Ooma with us from end. com or at they're and, that's So, a year today, by We're our Office being us. combination over customer, XXX,XXX Enterprise see -- can and of

there, new planning And our had I comes visibility have and up but -- the rollout we've with on region I running and some than there. that. we've to always have about path thought node we'd a world that new It's already great be you feel now now the and get major more our to have it in of customers

next the the And got one next in putting we've and bit having terms a the out that fair running, think up one. one and up I worked of kinks

did So, a we I we're great forward to position QX, some we like in lifting in go and feel as QX.

front, is part your save Mike, so me what our them. On second bit, much customers now money question, the the it compared of we little AirDial to because a baffles [ph] costing pops

why savings turned we're sometimes me confidence faster. of where my But baffles think really in to It terms I going. are and AirDial compelling in what don't I that's clearly they the move and

To be not a we you think with out also pipeline, forward know honest, to I we for signing. we on and look what what significant we have just tell we deals speculate we have achieve. need can And can

We -- half and that come company of year, steady. than to think to in back our it's which are longer bit that a harder have going of lot the been of areas the in have to we more a but are we've this traditional predict things little at we'll

guys happen, end of updated we're QX. things where the and we'll at you as keep So, see we'll

Mike Latimore

right. All

Thanks. Sounds good.

Operator

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

line open. now is Your

Alex Vasti

questions. our Hey, guys. Thanks This for Matt. on is for taking Alex

How's the been going were Jazzware and rollouts partnerships how see earlier you business how for and touch forward? that those those into announced year? maybe those Maybe one progress that's could going made progress overall on with layering in the with NexHealth, me. the first a Just those the you

Eric Stang

Sure.

with a hospitality ours So, and that, for space the Jazzware, on the of with partner progress that's first one, the Enterprise gone well. solution they're our

We continue that to grow space. in

was some because They're customer. system with as more well. make AirDial, in more significant Like combined us for our describing have we enabler the I we can ours, capability a opportunities for us front with Jazzware of the just do technology of for

rolling So, say well. that's would I

NexHealth, than progress QX. in anticipated around and I QX had think for we that's turning now slower

realized the some wanted we they As we brought with the together. that we we and solution integrations market, additional to it, into have

customers all that, things development have using but and some And efforts -- we did we're more I think we QX. up it it just and so, sales on further this quarter. in And turning really

Alex Vasti

Got it.

good. And then, is give you Sounds OnSIP maybe you contribution any alongside growth can the to OnSIP, that. integrating on how us Thank for of on acquired just business? Ooma an the update with the maybe from Thanks. can overall the portfolio, you one business share rest

Eric Stang

Sure.

the platform, for standpoint, business OnSIP and So, continue but been together, doing are an we planned some Ooma, into to continue The certainly people, our some working and got sales some have -- it. nonetheless, from were the we it's have of OnSIP people the in and development what activities for members Ooma we some marketing areas changed side seamless we integration on and before on to team everything in certain into more. drive drive folded

about this what cost, payback, I OnSIP, we customer we're to do. acquisition want do will channels we're think We now, make that about do that much don't when tell going for to measuring and, for think our you and Ooma. market, we we always to so we decisions

spend for still we're OnSIP, -- per more more brought that a doing the quarter. us, found brand, but aren't are say certainly, spending but we're meaningful not Ooma lot powerful of not But -- the on much on that so we're the growth of driving will, in OnSIP under been, number and a last would the with we money. if OnSIP investing fungible it's that of users in have you that where I for We they some And growth today. we platform all we things se, seeing

we we we have just to they're contributing impact. marketing from bottom-line can where make here, sales OnSIP think budget our With biggest we and the and that allocate positively and

So, we that's kind of and, at we how fortunate. it look were

did OnSIP was -- runs are some their and think up and we sales made brought changes really, should We've nice app. out to say, but very, of step I well. and as it. as well them. and mobile a finished our that very can forward new is a that now very out already with, view how a one run We I admin mature along we're we bring doing this for platform the that's But of portal And kind company. part portfolio marketing additions of Ooma kind they

Alex Vasti

pass it it. Thank on. I'll Got Perfect. you.

Eric Stang

you. Thank Alex. Thanks

Operator

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

line Your is open.

Josh Nichols

taking Yes. my for Thanks question.

of new funnel good how more, units hear bit kind you many Just of, the terms stand idea potential in what get where today backlog AirDial. is growing about as could do and to should we dig where ramp? it's do growth of bit all the as But a little units, and little whenever wins some have so for pontificate that today of in deliveries if installations to to start the like we installed, far a number could been about

Eric Stang

little So, frame a it Josh. you, I can for

large to those we get customer, When it a yet. you six As months given do take know, we can specifics haven't rollout.

done last think six they're mopping of and In a still months months now, up of a ago, after then or large installations we the Frankly, there's from two handful of fall six pretty that fact, our quarters much but I announced two getting go, of effort. we're stragglers, but customer month effort. to planning

take So, rollout does time.

and installation for lot a something work way, rollout. better gotten it's multiple for. by We a pay customer we've with charge we for the a third-parties third-party at to think when wants have it, I do

started, to we've of are compared new third-parties with revamped internally. where some And team our those new relatively we

We dedicate to resources that have need to this. we discovered more

try the with in market. to seeing feel keeping company in actively support the hiring engineerings AirDial. opportunities like I are up we're don't our the the of We and to we're sales sales of growth side

area a the -- us, say new it's add And, that, got of we've to team I for capability. this of direct of it's strategic the shame kind know kind year. to through we're a but sales this ambitions And balance to significant

the now we're T-Mobile, Prologis had front, big new what AirDial. every achieving on some partners I because UScellular, the quarter partner On represent and mean, mean, they of wins. in frankly, we've industry, I

And it a a these a I little partners -- in them, to takes routinely train there, can few that, a get bring some partner when while expect to some while few but tell surprised that can of market, the a but are here, takes amazing a lines we we you out get to deliver it's how opportunities larger-sized lines in opportunity.

exciting presence seeing. but it's the enough we -- I and the worry it's we're feel I don't So, not time about have market like an deals for in us,

our and we our of of look are if closed, pipeline, well, our tens if think there achieve. which yet the you -- our not look know is opportunity to are at thousands funnel, at say, of aspire lines pipeline, I that's I which in to you opportunities kind sale

But, frustrating in that guidance, you do any it know little we I to announcing largest I trying there and gives is here, and we that you bigger we're that, achieve, you potential more forward. go as do and hope, -- case, wins have it the a sense is yes, a little know what I been that bit. those, I it have hope frames but not a to our specifically overall maybe know than -- that

Josh Nichols

for you little Thanks but there. some have mentioned it too question last just your with know but bit comments, residential T-Mobile partnerships for now me, talked And solutions. AirDial, clarity then haven't some on of you also providing about it I in much. a

on with progress on that's partnership? updates that any Just going

Eric Stang

and place mainly Sure. our the has year relationship quarters. our over for We website pretty there sense out customers to that to feel they now last on the it's some internet. their customers want saw, That T-Mobile's are been of and steady in presence with been over phone that a get service greater partnership in several get

challenges, if things. their -- and is other to you will teams done do some not marketing, marketing has T-Mobile other through systems, What things sales enabled mainly inside and

it's today, a driver So, big business adder. a of our nice not residential it's but been

after. to opportunities other I see sales to to with do residential far we'll as our well get business. activities don't this we on the other use of respects as are partners but well We as go And opportunities some side know our try those, similar how working in to own

Josh Nichols

Great. Thank you.

Eric Stang

Thanks.

Operator

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

Your line is open.

Brian Kinstlinger

questions. Great. taking my for Thanks

comment First, active to deals? and partners have either UScellular closed can you T-Mobile on how as and AirDial have been

Eric Stang

sales things. Yes, the Both that it salespeople goodness. Oh, of partners formally to question, no program There's first they with from comfortable it came before deal ramp-up. through I quarter, UScellular deals. announced even are to happened talked last the time close so, largest about from both very their teams. takes takes they two deals and time for to get

AirDial, the -- there's But sell. normally deals process. it's to we these with of to some would typical thing to you, and entities the staff a lot about that and And in kind know them work not to be with of have support that honest

they're channel but sell important a in And through a Enterprise, that of lot our sell, I think it's we they of dozen partners lines find us deals, because us and lines. or of Ooma our also strategy few particular, finding also part are AirDial a lot really a a

and it we're AirDial all And for XXX, excited what partners think about have I what be aspire relationships our for will we're winning the with or that them. opportunities. line it even is we And seeing X,XXX bigger breakout success good that to really the make

Brian Kinstlinger

then actual customer's changed install? to process then for ready, changed prepare? for be how customers? a what be long about process needs actually takes it Great. take the six And once And for Does to -- for it actually large technology is months that have the to that implementation? it does Ooma Is once their to the

Eric Stang

the your of to need scope large a you wrap bit, a head So, little customer. around

Let's say from customer lines, last -- X,XXX XXX large that about than than that more I've locations. more talked last fall,

to maybe to locations month, -- in you terminate XXX It don't doing, know you're If going really locations do starts your even six in a XX your lines a months, what, in building. where you're location, this every week.

equipment in talked find get works But the can you the it test the got as which reception, you, once and get to we've and analysis them and if in once And to usually equipment. put better AirDial its needed past providers switch plug fine, get variety but and, it, reception. cellular you the then of test a the we test to into

pretty all per location. two But installation If hours, needs done. we'll couple AirDials said, three site a that get installation an that fast it and lines, goes hours, at six

number the the of do to pre-installation need analysis the timeline effort, to the that happen. going you're to and locations the make project you know conversion how really the it's and So, drives planning just

Brian Kinstlinger

Last used right it. about question customer? large to begin largest XX does obviously too selling the this Is make months? international point and the the you've think Is Got to on customer now? plate to outside necessary what your for that investment front, company expand in your At next that the to XX is there other internationally. on much me customers

Eric Stang

like in months, say the aspire that timeframe our plan being year, not fiscal this or that. it's six the for which but I we think is it's Well, mentioned in next to to you something it fair

opportunity question customer, to solution this we third-parties, lead if parties. countries and other We're Ooma we're our what internationally to to off in internationally, large But, particular likely, also Western done what with Office going -- begin first AirDial tremendous would dovetail we've European in we well. to we I see to as probably selling with have going most

on next certain in We this certain, steps the not are partners -- would year, But are market, don't love do that we working our we with thinking strategy or about and yet. entrées those regard. we to that into

Brian Kinstlinger

Great. Thanks taking my for question.

Eric Stang

bet. You

Operator

Instructions] line Matthew with Harrigan Benchmark. comes question of next [Operator from Your the

Your open. line is

Matthew Harrigan

results on I are I the Are need One, desirously least seeing Congratulations in incipient there's in AirDial you. for guidance. a the people TAM you and had got couple course, at or vacuum category, Thank competition you the a you've a space? and clearly, of dangling of the who huge the nature in way anything right coming crying now. see just things. the guess

working as AT&T I you and that's of the increasing you lines what out almost hard pricing price-gouging to and type current all phase then urgency charging of people And being US, something their out in whack Are that, Europe terms in in other look of seeing this way you're markets copper they're to that’s terms lines alternative the despite seeing wanting anecdotally copper move on? and just Thank of of same at when the the the you. mean,

Eric Stang

Yes.

although, we your so don't seeing varies see customers need part for Canada, We of on in it it in and bit. in Canadian Canada. asking question, still Canada. in your relatively it AirDial and a AirDial believe are So, we're I is not, pricing of controlled, much little second providing currently

think is way, as going here there not the far though market, along So, it's as but that I even yet. it don't the certainly US, in

at When it fact, Europe, country. we look by varies bit varies by lot in little country, a a it

might countries getting for do. looking and very Some -- they journey, their what in its looking at, approach the started are know Others, take. best the they And of of started they early to. to days now what's and but haven't kind need they're

provide of AirDial. can front like provider least need feel cellular at keep countries, to we whenever I in partner in one we these that goes connection a with a mind, get of the because internet And in

product find in extensions it's believe improvements to how so works, getting we -- it the compelling once it We I to does and And it's many AirDial a made so, And months market. last every it. explain like the over story just that. that day We've and better really really and it what there's too. even six no

that actively the we're -- other like has at I turned the markets that have don't corner that think but, there's don't US broadly think US, more the I than over last the the level, months. So, thinking XX

of Over start XX of lot this the over last more to six the months months, do really customers since the a we've need year, -- the seen even last aware something.

to and notice their think I starts word start bills. out get to -- they're they

than other see countries. it along And you I can so But, clearly coming. -- see definitely the is farther US

part addresses to not. didn't question, hope I if there's question. a I first get don't of that your I know or your

Matthew Harrigan

you a Yes, Do cycle. a and you that. see the or really on there's doesn't out to I there's massive the opportunity. But need all a while long incipient all get competition, crying first part It sales have else a like product necessarily market would of least people four market that's was question working takes anyone years before or aggressively because at massive this other it solution who's incipiently, at feel a someone to five comparable address in? came know

Eric Stang

any that market out change of on or a that's today. there the for working solutions know underway to development are new don't anyone I this solution

them. we we and biggest customers can face that. sure know the we is think AirDial what marketing lot and more and to know it for do And a branding I need challenge making outreach do have

But lot that viable today, they you you have where customers, those and there's need if know and to alternative. we a a to realize a can of get are into you're signs walk you you just pot sold large them aggregator

right working just no significant they through to they they and got thrilled We have now just a about us had know. They to us, introduced idea. didn't opportunity a we're where but out were third-party find

And it's reaching customer should kind of be we to. out should we

to And capability, will I able to what really more and the trying to so our marketing business. think, that and sales of we're be drive that's, build do

Matthew Harrigan

Nice [ph] have. Great. Eric. Thanks to problem

Eric Stang

you. Thank

Operator

this session. to time further There the and for Q&A turn concludes are at I remarks. no back Eric questions call closing our

Eric Stang

even questions want you hard of talking all AirDial ever to it these I most strategic in the With here. you, and is everyone. we've that, know million towards more we on able the track and were flow to operations and We'll working everyone. new you the we're as thank company as a just I want Well, from frankly, you, with outperform doing excited in our to here to all cash and that. we're while stop we're think you. I Thank general I we're We $X.X on show revenue well success feel be in and you like initiatives. realize from thank investing had

Operator

This concludes call. today's conference

disconnect. now may You

Ooma (OOMA) 23 Aug 232024 Q2 Earnings call transcript