OOMA - Earnings call transcript Q1 2025

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and thank you for standing by. Welcome to Ooma Fiscal First Quarter 2025 Financial Results. [Operator Instructions] Please be advised that, today's conference is being recorded.I would like to hand the conference over to your speakers today Matt Robison. Please go ahead.

Matthew Robison

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

and On Presentations will This Ooma accessible of link ooma.com. being replay issued from will the CEO, fiscal Events statements first the our year.During company's are link a Relations Shig me make website, earnings Investor This of X This within the laws. also of its executives meaning the webcast press be available XXXX is page section presentation, and the for release. on Hamamatsu.After today, the is Stang; for is our of live CFO, Ooma's today's forward-looking securities this closed the website. call market active quarter call with federal release call Eric and today on

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

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

Eric Stang

represent in for in of with debt was $X.X XX% QX our our to growth and business us quarter, of We're XXXX joining for users, pleased and original fiscal of 'XX fiscal also for start was revenue everyone. forward with results non-GAAP of together solid I fact $X.X operating QX. net for $XX.X We're despite our expectations reviewing amounts users earnings us. We're the total of our year.Revenue turn just to and additional XX% in debt. call. Thanks, larger-than-normal million Ooma's QX, $X.X off to they FY start these year, have to total each quarter look million a down momentum the for with expected income first our at year Matt. Hi, increased good and that year-over-year. Welcome of pleased exceeds to a year-over-year. Thanks fiscal by you.Ooma's an revenue, largest the QX cash IWG, flow report with particularly were that our this leaving grew million business now good our pleased customer, to which of the in in pay quarter.We're of equally QX, million in growth we services million pleased We're which able number delivered $XX.X

the is down $XX of leading just cash X and our well our year ago.In nearly of this in very that, note from a quarter triple Office, Enterprise, AirDial, Ooma will ago. You performed comprises million same which was that quarters operating QX, debt QX. XXXXHz flow Solutions, business,

Office new to in Ooma customers more HubSpot, more being several quarters, Our with and serve than to the and utilize Pro added new are users Square. growth. to quarter, select prior integrations Pro strategy integrations is including our in larger-sized Zendesk, our and customers We drive in our verticals or helping tiers size.Similarly, with XX Plus working,

with more online efficiently bookings, messages, widget also along maintain customers, the businesses ways of position to engage Ooma one some over intends features is with of through and our which frontline leading and especially customers to integrations customers other features in to new their with notably allow digital call with interact our along messaging.Enabling serving web businesses. a Our enhanced are me, new features customers help added -- the the smaller-sized business automated which we and by deflection, excuse QX, our other scheduled most contact

our growth lines.In through copper business drive larger-sized also strategy Ooma customer We AirDial. aging replace for we to to wins QX, several notable achieved continue of

time Many ever our AirDial.We prove customers to a over solution additional reselling partners rollout. give customers before. and closed also starting total also the Nonetheless, to new signed good in environment believe just for of We QX, momentum XX lines in with few to we plan resellers that their more the up represent now than largest new for in AirDial them bringing total AirDial. are

announced AirDial release a XXXXHz One during now in elevator on in also It's that time service quarter. exciting as XPhase, XPhase XX,XXX strategy resellers available Canada. wholesale we is and in a we that front AirDial we maintains Ooma leading of press already is these, addition, and the our elevators recently Canada, nationwide.In independent company for business an integrate Ooma Applications are new to platform. the we with into Technology the engaged pursue announced

owning couldn't are be X and into pleased. We now XXXXHz more quarters

synergy engaged making realizing Already, the who technology possible this toward new with are are progress made We in good by our working also we market are solution. and acquisition.We on strength customers are significant interest seeing deployment.

the very customers. largest One I'm revenue of Ooma's has these, to of to become one potential pleased report,

Ooma's this Ooma This be about be year.In them We customer announcements in and solutions. both able and Ooma of the interest strong more make interest to half back general, in deployed spans expect we Business see to to this Residential.

couple wireless pleased in customers. starting of fiber their Ooma the to Ooma can who with both outlook. mention offers customers. coming report to you or many over some soon opportunities While be will and to results Telo Cellular new call engagements it's Shig, begin the quarters.I Several their pursuing, detail Office Similarly, more other and offering and some that closing quarter.I'm we of Ooma return hope more announcements home this have CFO, either of underway I which the Ooma now will to our now in also are begin its under our remarks. discuss a that too discuss our then customers, developments to will discussion, are U.S. to Telo to quite to Telo are offering T-Mobile, could Internet for meaningful turn I to outlook

Shigeyuki Hamamatsu

start quarter afternoon, I'm Good to year and million Eric, an in guidance subscription range in quarter. quarter.QX the other year-over-year as $XX.X prior at with $XX.X We million the in addition first Thank our quarter, afternoon, results strength subscription million as XX% the of revenue of the In million.On quarter, solid first provide services to XXXX a quarter, review accounted the had and XXXX. above second in as by fiscal came of a $XX.X going first the then full our grew Ooma fiscal million the for to $X.X well you, our compared driven services compared everyone. business XX% of of product and outlook and for as total prior total business, quarter first good XXXXHz. and revenue financial basis, the $X.X everyone. revenue XX% in year to and revenue total revenue to year

the first non-GAAP of QX, range revenue. and QX year-over-year of million, subscription front, $X.X services $X driven above On a revenue user by was grew $X.X profitability on addition guidance net our the some million XX% income Business million.Now details the XXXXHz. to quarter growth and in

business year-over-year.On down was contribution, year-over-year. subscription revenue side, X% the subscription services revenue XX% grew and revenue and XXXXHz services Excluding residential

total comparison unusual subscription one-time As prior million, quarter. revenue our at first with down a revenue, application, in core fourth of year during of total total million, fiscal from quarter an a customer or on churn key core or a particular is the the to details with first reminder, and which ended services the last quarter.Now, slightly our as users, in our impacted revenue had first $XX.X XX% of QX.For quarter event year-over-year quarter, X,XXX,XXX of the compared XX% the we customer was metrics. end with $XX We some X,XXX,XXX which users

half higher-tier to XXX,XXX was quarter, At due was in the business mentioned the from business in total call, the users quarter. impact second had from X% by services, annual exit offerings.A services.Our users, which churn for remaining blended or Ooma first increased mix recurring this have of the other of every user increasing see was additions XX% $XX.XX, and of prior from per Office churn to for offset an now quarter.We first year-over-year $XXX Office currently quarter, core from Overall, Office which strength business portion in Ooma Office ARPU and grew these XX% end anticipate was ARPU, up services a revenue Pro, total decrease opting core first up of IWG core the users, anticipated higher-tier million X% be quarter. users increase Plus was or rate in year. As QX users.During driven of realized users the IWG, monthly the X,XXX year to to of we these XX% user, as take XX% the subscription of subscribed sequential to higher-up and approximately large-as-a-normal of churn Pro an by users, a last Pro we new Plus the larger-than-normal healthy to average of the including continued on with in realized Pro revenue the

rate in XX% the subscription details for on gross quarter quarter.Now fourth Our retention dollar was some to the compared net margin. XX% as our

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

relative reminder, for margin.Product As margin included running negative subscription first which for XX% services gross the for first XX% year. as year lower quarter gross last margin period other subscription and was to of this to XXXXHz a same impact gross an and the negative margin, the compared quarter fiscal gross is Ooma

$X.X the As decline will during sell-through excess other estimate of higher-cost half be XX% prior details first from to operating impact On first product product range and component Total year. due then negative million, for fiscal year-over-year as consume we that and was normalizing quarter.And the gross basis, of the second on were last in XXXX. million, comparable compared the $XX.X X% we the the the mentioned now expenses. the pandemic.We in components to XX% primarily second overall period to in margin certain procured margin an in or total of the operating some XX% costs starting quarter the same up gross in remaining the for currently as QX was expenses year had QX quarter in quarter margin gross prior calls,

year-over-year higher by activity driven were or a or period AirDial.Research driven year.Selling of revenue, marketing for the the of costs.Non-GAAP first $X.XX, quarter year-over-year, to development revenue, total increases X% share, the were as prior up first the primarily $X.X from the first channel G&A X% compared income million, by year of in development XXXXHz total expenses per XX% prior $X million, for primarily expenses compared due for mainly team $XX of marketing for earnings in or XX% revenue quarter. quarter, year addition Excluding members. and XX% for $X.X of million, net The to G&A total and share $X.X million million, the million, increased and was or of the operating $XX.X year-over-year of in and $X.XX impact the were diluted on quarter. XXXXHz, same expenses basis, per to audit-related the personnel quarter or diluted was last expenses increase total up expenses X% earnings

the revolver third the year-over-year income $X.X expense year. in we was QX increased the which decline As acquire the for last due net mentioned in following by debt, anticipated last reasons.First, to non-GAAP our quarter call, used to in million new for XXXXHz interest

the year-over-year continue million, by $X.X $X focus quarter a quarter the on by $X.X of was decreased paydown in million investments for We Second, X% for of paid as approximately to XXXX.Adjusted quarter. down to the from which and lowered year interest as debt with QX we million, during $XX.X outstanding end prior EBITDA was debt total for revenue, million quarter. fiscal we total million the of million, income as the at compared or ended $X.X QX a $XX.X year cash

quarter, acquired cash have when outstanding significant to period generated to debt million operations compared same the additional the we the from first end at which QX paydown, in of from the reflects seasonal $X.X in which million, as $XX.X of of the the operating reduced $XX QX, year. million challenge was despite significantly With $X.X of we at the reduction higher flows, a cash terms we million end XXXXHz.In last balance

second On and we for of the a provide headcount year full fiscal with quarter contractors.Now, X,XXX I the and front, ended will employees XXXX. guidance quarter

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

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

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

have where $XX.X million, quarter. average outstanding, for We the assumed is share the second diluted

terms revenue guidance million.The of $XXX.X million assumes be and the full bottom XXXX, guidance to revenue. in X%.In revenue come subscription For fiscal the XXXX, revenue from X% total of and range revenue to revenue year XXXX we and expect while the XX% total business over residential subscription fiscal for fiscal products the are updating year of growth to services decline the remainder end revenue and mixed subscription $XXX expect rate XX% from of we full services to year, to to to other and revenue of XX% XX%

range, to net this now estimate guidance million. we We in are to expected fiscal on million income to be adjusted is EBITDA $XX.X million $XX for XXXX, XXXX also $XX.X range be non-GAAP updating which the to of $XX fiscal million.Based for our

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

for fiscal some approximately it outstanding, to share We to assumed we growth.I'll diluted fiscal solid our on pleased to the Eric back our closing summary, million, have is XXXX.In $XX.X XXXX profitable to with strategy Eric? pass where long-term and average executing a focused now remarks. remain achieve are start for

Eric Stang

Shig. Thanks,

we a So, low-cost for overall, think, churn, solutions. generation, Ooma services, strong steady and leading revenue, product with in providing structure and cash a positive position, is high-quality manageable recurring

We'll I for is our now a you, today on are business off make in FY focus to take start 'XX.Thank and progress solutions. believe QX everyone. for we growth good questions. good Ooma Our driving

Operator

Capital. Our line Instructions] from will question from of come Mike the Northland Latimore first [Operator

Mike Latimore

Yes, about congrats strong I'm profitability on the curious XXXXHz here. this win.

officially the You said you were it one the first is what won, won deal? I reasons is is if still -- largest guess the it is think, revenue signed this maybe, your contract could And like, of pipeline? be, or then, question the customers. I main it in

Eric Stang

Yes, Mike.

can is about be. The So, this excited deployment how ultimately customer And, is underway. signed. large quite the process contract we're

talk with think was makes And more do extensive APIs than in right the happens lot to it And out you revise the solution hundreds platform they the their traditional XXXXHz flexibility more there solution CPaaS way build-off to available customize and that large solutions past. to today solution a designed me the for CPaaS and capability for the of that and a have customer just with to it's solution. them a it. a want market.This place to of of step heard of built-off in XXXXHz offer's And, the in the felt way platform take We You've that the it. customers.

think concept platform. XXXXHz solution, it's Ooma great we've in in too, a do of solution, with all we confidence, and this this put combination So, development the what we vote of apps in with into the together the can other done

So, able wish confidential what this in about. fall. more, about to customer. it's for that's the And I but be talk the could we'll say is I more

Mike Latimore

And then assume way bracket any Would there. fair the on be, of X% of continued Or exiting AirDial, AirDial? it could to it just progress sounds there be the to subscription year? AirDial is size revenue like,

Eric Stang

well haven't the journey we to have in And but estimates. grow those year kinds AirDial one through QX, where do Yes, from this that's of yes, for We it's step goals really at. it given AirDial. did in

investing go-to-market resources been we've AirDial. for the know, in you As additional

opportunities honest say be with just with continue AirDial encouraged add. our very a you, predict. resellers And opportunities working we're I large prediction. I'm we make not working a And we are not I the AirDial. to large working business, to front. it's want But across ones sure with the on we're So, will the very that, hard and by little bit to to we're

Mike Latimore

bit of large talk kind little the kind of bookings the Is base, I not customer? consistent months Can the it of kind your a I X I'm phone expected? a just sort of or guess, of kind of demand you of throughout year including kind would last And the cloud about referencing as first here And flow? one.

Eric Stang

sales Sure. was look concern way. that give will the mean, we of Yes, this our if us not Office have would I market and QX. I with rest your be I we in bookings, Ooma frame pleased It answered our and as We year. you were guess, strong situation might Enterprise question a to the seen would for

Operator

come from Alliance of will from Global line Brian question Partners. the Kinstlinger next Our

Brian Kinstlinger

some a you when a customer starting more that? in small. more after decides The think Will you first one, to you of this? I like larger, the about How cycle longer be adopt initial understand than copper before mentioned of do customer. installs you added guess, timeline lines? the customer size? then AirDial it larger X you they're months be just And life to orders do take for customers think much to second large it similar to take expect trying I'm Does

Eric Stang

It's very hundreds be at which me I'm of handful that, means list closed where close we of I or a looking lines lines. might good right a potential location to but of it. they in front than here locations, X even or X maybe XX a question, appreciate more of Brian. of

it, to an more. grips I we're X a an for the time install it won process, to some another business. announced time concept locations. year the did ones I They'll customer to are and the first a a of and least retail at with potential. I rolling the fall. customer out work they're And little Maybe to last think now winning, more And example. assess X to their that bit across process the X large out customer step take retail ago with about months whole can are you after works get couple with other to profile I the months large months.So, it. in QX had X here There'll say of very chain to and then rollout in X and and in as mentioned we're a through them be of contract a see how the And next won high the chains. some X if think customers their We you this.So, proof this but until customers third their some number chain. customer may for a potential think in of we a QX, that, retail their was about rolling finalize have we talk I'll large a that timeline probably be can to that heard come other won take a for rollout of we and I months and give that needs several chains. X We retail hate develop. the as, end later overall time we of let one we We're in

have need they they get So, are customers the over market, we done number moment, and heard think pressures tried talk super to of customers unless have against going they Feature-wise, or in don't this we do in solution, fast. know to to are came very want I X, get they away. solutions show the us. done. But who other moving. And need But They a move next which lines face if about. severe any we year the leading well. very, And then up us to solution the other you've pricing

opportunity hard. feel the I So, trying it about but term, is longer good handicap to

Shigeyuki Hamamatsu

said, what exactly in And situation, to pay we considering about of got. site kind send survey what -- their another customer that of number a that locations a locations. we're installing that they Site they're of meaning for And to a quite one They're add customer and do just is to wanted Eric to survey have what AirDial. talking who to flavor for out willing installers we that survey. to they see they determine wanted our site particular Brian, see

willing they They a itself large pay where may if survey gives site them for some But survey. for another a example site revenue few to do And want could the were a customer, too. it's it months. take that it. that's to So,

another flavor. So, that's

Brian Kinstlinger

on were then able all I Got the your of it. AirDial, discuss lines of install to financial with or And can't are that the My are there is, then customers in great new And and that are get today, you customers, think number POCs question it'd you if potential give be follow-up if have adopted? lines base total alternatively, a what's all that if your KPI. X as and to is? about

Eric Stang

desire the to Ooma we'll that perspective. reasons. question, part that. AirDial. But to business we'll understand don't to we from and I it. in the actually Obviously, overall second of it'd interesting up We think give focus this at on take look added we tend a Yes, and get an give your to consideration so competitive about specific but be for accounts user I overall our haven't do

Shigeyuki Hamamatsu

second close think about to I of into we're XX,XXX we first tapping getting -- color XX,XXX boxes about, the that AirDial. talked boxes. one of we we're through the And talked batch getting

-- some around of you where And progress. we so, gives maybe that terms guess idea in are

Brian Kinstlinger

That's share helpful. revenue, if slightly I guidance, with last curious think question alone is, the bit coupled from change My I'm just something margin a And in include in EPS terms should of about on in revenue, accelerating something investments P&L? higher. why stronger maybe the doesn't can second you adjusted EPS the there's little we look hardware given the at when this the half gross

Shigeyuki Hamamatsu

of based income bit is net Yes, little versus a obviously I which non-GAAP on gap EPS, of between that an EBITDA. sort think

of Some of interest income from the coming income line portion earlier. non-GAAP it net is forecasted uplift versus we what better

terms half what and we to maybe bit in to there's a in X% QX getting or thinking we there.But guided ourselves QX, EBITDA, think about second are half. gap So, margin second we in to a little of versus of see what in going I better EBITDA

hopefully that we an idea of thinking. what are gives us So,

Eric Stang

We our sure are and making spend off. it of very mindful pays

Operator

will the line come Arjun of William from Our Bhatia Blair. from next question

Unknown Analyst

Chris on for is Arjun. This

some it? much The sounds putting to the recent to some What's that starting of you of to building and AirDial would you're show marketing you to much me, front do on first effective of is the terms question room proving it have awareness momentum like how in the How attribute more be market? that really strength. in go behind efforts for

Eric Stang

long awareness. a way building on have go We to

AirDial. ago. what also little on We and resell help of this more we spend about are partners a will We started activities quarter, direct said, we how us it. more reach But X or much every I'd seeing have out our couple also prudent add want of own on sales months of that. to We're with some momentum a still working who And being that think will us say, AirDial we there. on can for are our in we're still I in reflective taking with large results -- I in about certainly overall but longer to well very that mindset. I've yes, of of of get be the our think us. past doing And But kinds believe business.So, AirDial those estimates and are the I estimates rest possible, given

Unknown Analyst

thinking Canada. the it. to about the touch the level U.S.? how Got I'll get the on were that competition, I to in of just from to how want a sense compared And up very of That's helpful color. market, AirDial size you was launch you curious stacks

Eric Stang

long adjust I don't reseller we've of I the to think product very partners say to us with one for pleased I answer our been couple in that, enough give that. the fact, we've a But Canada. to wanted quickly how us and market And, we educated partner together get to done. in Canadian the to them had come infrastructure And Canada. been wireless had which to in work market, asking was will an of

Canada the saying to happy of different in be solutions. Canada.We're customers, wanting now, business in and seeing exit already lines seeing move we're launched POTS to So and providers going they're are with to to trends generally, large we them same in Canada

there The were the there But how think around is increases so yet. much we same I in as the feeling momentum are surprised pricing much in to So customers momentum been less in Canada. learn than have Canada. U.S., of Canada POTS in pain think don't is replacing quite the I

Unknown Analyst

quarter. on the good Congrats

Operator

Our next Riley B. question from Nichols come Securities. from Josh will

Josh Nichols

couple curious EBITDA like much if probably And else I I'm little integration getting you're some that wins, things. an for a about do? kind on second half? of just curious, you're going? this Honing so talking to XXXXHz close. not the how's your outlook you were a is securing know in profitability on there, I'm just sounds already thoughts It on bit, you're the quarter. there

Eric Stang

No, to there more is do.

knows deployment side doing, this strengthen on platform customer on do to Two it is of for within resources mobile and improving that some But support too, customers. is and plans platform. better We are quarter form and these needs. I with want of platform the the app a messaging has not to on of so large that winning taken enable But and a long that this stronger out we Ooma have into to year. platform to them our moving our we'll are the ton them how the through Ooma make in the rolling probably the work. it things adding capabilities say, are platform XXXXHz list a very this strengthen yes, continuing all to their ones we're on XXXXHz that of will

customers the that's of enable some in have work changed that getting of it's who either other to large discussion a plans we potential form us, little paid not so but platform for POC. XXXXHz very gratis, do just to Some bit or are is our that.And

XXXXHz justified one. we're between the that which acquisition is front, had, even cost So the the opportunity It together ourselves synergy we solely thesis great. synergy and active and development on the fits being in on pretty though we seeing

Josh Nichols

potentially revenue, the -- think you Just biggest of I context, a of mean, X revenue year timeline to I potentially plus for Is plus years get looking timeline customers that like a mean, or like low percentage X% single-digit do at kind mean and one overall? more that? does like X of or that that to

Eric Stang

don't we customer Well, of any revenue. X% today who's have

our that largest said guys these of could I So, customers. become one

customer think I could predict we can customer think considering lot But we which and currently. us one they a very over a go is but seats become I wouldn't that large X-figure forward. a be time, strong I they yes, customer that of have largest for number as saying represent today, very our

Josh Nichols

just question, space. of the U.S. guess I mean, because with in of appreciate you've T-Mobile, timely, last the then And players that. working I I I the Cellular, guess most it's kind

just So, potential on there overall? any impacts thoughts

Eric Stang

Yes, there's a that's new news, prior. relatively of speculation lot although

have We're particularly U.S. thrilled to solutions, and We Cellular good that Ooma is out relationships with resale both, resale Ooma are Office going our both more of Telo. rolling

with we for a But to to only to think so, be what, much think It's X this since XX closes, I it'll at us. good the together, opportunity so need they I think months relationships acquisition strengthens it And have that before both, the about time. do don't too we be, us. going positive when come for

Operator

Benchmark. Harrigan from will next come question Our from Matthew

Matthew Harrigan

the then there going enough a Europe in about particular. -- Telo been area push consumer there. forward? mean, the Firstly, And really it'll positive? AirDial the to the sounds really think more assume also regulatory to non-North is you've an lot a you just are full-driven talked you seeing aspect you're America, T-Mobile? I of panoply neglected. little I questions, to it What's -- impetus of a improvement? interest it do Is to Is add for almost And impetus of it looser have to

You talked U.S. and more the about Canada.

Eric Stang

Sure.

bit with and only consumers. price partners purchase as and resellers for and POTS What's because platform. for decline ahead, script people out not resell a going the for gotten an issue price.We Telo it their that get with businesses, Telo, an and are put lines to an excited replace well me I we little the providers for too platform, didn't to POTS open overall, that want a little But more solution. issue lines I think maybe in just retail between on lines on QX shrink turn earnings who to did think, my we to the getting with but, market POTS it's did POTS Telo, the with I a expensive, it's away, don't bit And stuck see on So, due the issue we is a rising, well in users who the POTS going partly it's in need customer more in first up normal of about in lines. opportunities

will and usable any it's predict not But they about the in could that well to Europe do anything we'll about Telo, there, put ready I have something closer play outlook. remains to something we're do be in do be outlook we're as our question we're didn't significant.Now, there. different have not in product a Europe, we're it. that It's there of requirements different to When but development at So, opportunities it. with to not for our building -- bans say version something about your we time, this have talk AirDial We planning we're for. into doing that in something QX. in It

Operator

[Operator Instructions] JMP. from question next will from come And Citizens Patrick our Walravens

Patrick Walravens

Been Eric, while a so...

Eric Stang

Yes, Pat.

Patrick Walravens

Yes.

this shareholder down. look, a in went Obviously, public, what's excited you been X most up for you risk? biggest of you And market offerings. How changes feel things do the and company's have going So, took is business Things drive to about are the value there years the ago. went in the that? ton forward? What like set up,

Eric Stang

Yes, good question.

over residential this where And solution largely got the went mean, investment into small just leading When of we public, the solution. lot we've last we were So, look put the a business I a are we years, X in today. business. space.

trying sit giving instance, much do in speak lot we if in our very what today work than and our ready a we're results already even to AirDial We've now a XXXXHz done what new. gone my We of across with targeted what will, remarks. and more well it that just And delivering largest or too along on certain in consolidate, we've also to benefit customer. with I put We've on doing the verticals solution didn't capabilities far long we've solutions. built is, have company. for international a unique is still enterprise-level area that's here of focus a whole you them. our quite for with XXXXHz. in platform time.But at from with to build I We're something elsewhere think expanded in We've doing the about

sure to in generate, So, company And made a don't dollars lot without generated than make ready tremendous last latitude clear investments what, rush that to years, of year our do to also, those which either million we our of about by us is a do But the or think a R&D any great of being forsake the statements. X and commensurately.And line invest anything think having payoff. off. making expanding that the we've a before, we're business want combination time, grow that bottom in the to going in gross in we I'm drive line same sure I at think measurable top has lot capitalize shocked pay line ever do bring more want a we gives of business make But minute. these We about over on. forward $XXX and profit the we very or profitability what we we investments more a Pat, to to million valuation invest more the both.And gross got million. growth we've profit to $XXX do this dollars. by $XXX still for about Think a

we're do and down be, things. quite I debt our take cash acquisition. as ourselves aren't the far. our that's as think, We've in put about assets possible to position, a stronger the in-house, But fast like maybe essential. a And those way pay thinking us in to to got so would small to next We position

Operator

And Stang I'm to back like any it any questions queue. in showing further closing turn not over Eric for remarks. to the I'd

Eric Stang

year. We hopefully Thank keep time to you, deliver everyone. appreciate we'll with everyone. here you, working thank us hard your And, No, today. just a great

Operator

your in concluded program. the This conference. today's for you Thank does participation

now great may day. Everyone have a disconnect. You

Ooma (OOMA) 28 May 242025 Q1 Earnings call transcript