OOMA - Earnings call transcript Q4 2025

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Operator

Thank you for standing by, and welcome to the Ooma, Inc. Fourth Quarter and Fiscal Year 2025 Financial Results Conference Call. [Operator Instructions] As a reminder, today's program is being recorded.

Now, I'd like to introduce your host for today's program, Matthew Robison. Please go ahead, sir.

Matthew Robison

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

Eric release. Hamamatsu. is website, On the and accessible fourth and call Relations today, from one the quarter call link with company's this XXXX today is live its Ooma's is the ooma.com. This website. Events earnings also of being call fiscal on press be a our on me Presentations of Ooma issued CFO, release and the page After CEO, Shig will active and market The closed are Stang; Investor webcast section the for link replay a This year. for available of

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

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

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

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

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

Eric Stang

to pleased upcoming and fiscal for fiscal Thank earnings for to everyone. share fourth We're Welcome you, plans to Matt. year. Ooma's Thanks our our joining our report Hi, quarter us. call. year and XXXX results

non-GAAP of net 'XX, $X.X quarter income. million we course, which, revenue of QX just $XX.X For FY ended, of million our achieved and is

non-GAAP our took and solid, a versus up significant was net growth income prior quarters. step Our

million We of stock. repurchasing income $X grew flow generated grew million $XX For XX% Ooma all and of our FY over approximately and net 'XX, our year-over-year, cash X% free year-over-year. spent revenue non-GAAP

serve market we forward, we believe potential. to well-positioned with growth are Looking segments significant

non-GAAP income higher to our start believe increase forward. a We our represents good profitability also toward going plan net

smaller-sized POTS both on for we you specifically communications, focus wholesale are of designed segments: segments. know, in four for we telephony. We and each these market a business replacement specific leader platform and believe services; cloud businesses; residential As residential customers;

is I'd of and start a our Given each. that new the like this talk to year, fiscal for plans about progress

shared to appeal converting serving bigger larger-sized tiers businesses. we've our previously, As our to adding solution continued of select service simple-to-use to to for of businesses our is higher-value business around in awareness strategy a built of extend smaller-sized up outreach the and generate way services, slightly customer features customers

customer Office in with of customer growing QX expectations. We number new large progress a average and tier particularly Ooma with a base secure to our over new track revenue and Our on premium XX was per users pleased the double-digit XXX customers were of a our Office service users to taking of user each. line percentage both with win in with

continue current to medium-sized plan we small- cloud communications businesses. our ahead, Looking strategy targeting to

launching capabilities. We AI two in call and a will new new expand center feature by our key directions set

improving integrations vertical along more that, enable marketing strengthen solution also channel by particularly will activities. We sales our Internet wireless a solution agents small- create and, to stronger cloud-based to to our and the have moving America extend our double-play them. to yet and of intend We through offering. with we the gain We across for communications, North have to ideal medium-sized believe businesses benefits millions of reach,

second segment, our POTS market key Moving replacement. to

replacement, existing track to sophisticated to activities cable us both focus market: customers we discussed provide extensive in to After now and last strategy theirs us. The resale channel who process, large of we AirDial, some the that the to AirDial, limited on a to currently for Ooma expanding at are three Marriott. pleased recommended a phasing with who And the nationwide I'm complete partners. Administrative remains report customer out. Furthermore, leverage third-party begin Marriott last working I'm sales risk and de we agents, made sell only residential of quarter Marriott with Frontier year, achieve in sales Communications, an supported Ooma March. and our where to to we the increase exciting share current good to market and on so ILEC provider, selling won particularly doing we this, direct, large solution just via way the of in targeting & POTS is QX, of launch by by facto progress routes helping resale solutions news which to International partners start through for AirDial most extended pleased review AirDial we combination certification replacement end POTS understand recently brand and makes with Resorts. Marriott Hotels reach. To Our channels our Services is Telo

terrific preferred driving at strongly selection pleased properties pleased managed managed is in and Marriott-owned competitive validation our AirDial. I'm It's announcement POTS research couldn't with replacement. that our strategy all have the Our more Ooma of this receive vendor strength be understanding also to also solution. this factor for is as is that recent brand the or Sullivan, now at Marriott a external leader independently firm, the referenced in Frost We highlight & AirDial position exclusive to to selected certification AirDial of properties.

Our for all strategy add lower-cost to and activities intend introducing continue expanding plan residential by is quarter business three execute solutions both partners resale across growth POTS our replacement to sales by for and product every replacement improved in to and to of driving routes dynamics FY in market. We is key lines, action. These the them Ooma. fastest assist this market make increasingly opportunity quite segment opportunity a the companies are millions possible. the take sales to and market and POTS driving sizable believe trends ramp for to 'XX We

XXXXHz by is platforms strategy platform proof-of-concept customers to incorporating we scaling Ooma's to new support occur. In desktop we on and Our of to where feel to and engagements we small our substantial time starting third strengthen landed resources, other to our solution that solutions, unique customers. Securing an but services, mobile turnkey key about in revenue amount capitalize XXXXHz customers, sizable of apps, quite excited and modern and customers' which shift our the them expanded launched market takes the dynamics, away older market a our segment segment, requirements new is the adoption platform couple is of market the are of new employ with a serve solutions. the our of wholesale and into from architecture potential platform turnkey less this extended and design sales strength QX, continued

remains for segment key a telephony Ooma. residential Finally,

strategy announced and and retail their is ramping customer we customer awareness expand other to to retailers, the with CLEC families through Telo to at incumbent other residential enabling and local in POTS through to connectivity replace fiber exchange began wireless and capitalize at QX, I and LTE, Ooma. In Walmart providers placements Costco, lines our carriers competitive and lifestyle maintain which QX. drive combines sales residential Amazon, telephony Our Internet bundles with home to marketing more new for Best Telo interest seniors, Buy, on offices, as such

limited as also mentioned with sales Frontier starting We Communications. progress, made towards earlier,

residential forward, our our with we across we can good FY need business, believe enter parts residential and 'XX to Looking partners drive slides. Overall, replace we telephony business. who via view will overall momentum of a existing part their as we POTS explore stable I many growth of whether

in the partners of and secure partners that the customers sign when mindful are We timing new we at particular, our and outlook new on customers. depends, pace our which

our cautious closing call detail materialize. And then plans need results Shig, more remarks. our outlook over will so, with the and we some in with outlook feel to now be our discuss turn to to we our return I while and CFO,

Shigeyuki Hamamatsu

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

total quarter revenue other X% to revenue. growth of by to the services of driven as year revenue as AirDial. In QX in AirDial in came QX, services the quarter. year-over-year, and product $X.X up year the at and the XX% XXXX as XX% was subscription a Ooma of On for fourth year-over-year, for basis, million driven at guidance $XXX.X prior in and growth services million accounted was and installations. $XXX.X end year-over-year business million quarter. The to in subscription revenue high business compared year, Our prior in primarily including fiscal range prior XX% in by business, product revenue subscription and $XX.X million growth was revenue $X.X was compared revenue the representing year including million full-year our in compared growth growth X%

was to income $X.X net from basis, leverage we benefit expenses. front, discussed the saw as tax million last our income in the profitability meaningfully On of lower-than-expected prior million, R&D compared year-over-year non-GAAP we $X.X net full-year income the above $XX.X the of operating On million growth year. the earnings call. QX was guidance a in QX range net non-GAAP to benefited $X.X $XX XX% million, with non-GAAP also million, of

Now some ARPU driven X% growth. growth year-over-year in subscription and grew details on revenue and services Business user our QX QX, revenue. by

year-over-year. X% On revenue the and side, residential down subscription services was

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

key Now, to of fourth is some X,XXX,XXX at which We X,XXX,XXX details in the into IWG, seat with primarily quarter. the third the the The fourth decline we users, core reductions end ended quarter the or core core due our of core sequential was XXX,XXX users. customer on with of end users, anticipated QX. At users was business down total metrics. total from users the had going which XX% our quarter,

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

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

was million, Our annual revenue up $XXX year-over-year. exit recurring X%

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

details margin. our some on gross Now,

increase, as quarter Total Our product quarter period in fourth and was for XX% of the of of gross components was improvement expenses of leverage. personnel costs. and X% cost the G&A for for X% due the were record improvement a compared Product headcount for compared $X.X XXXXHz. Research total in overall compared for was an last G&A in due prior margin $XX.X another as company, increase for quarter. The quarter the of was by the were XXXX. On expenses to quarter. million, year-over-year XX% quarter which pandemic of the we and we prior total sequentially also focus for million other $X.XX income operating for to to first QX and fiscal revenue compared to an primarily increases $X.X flat gross the negative audit-related the R&D million million or and operating XX% AirDial quarter primarily efficiency other the flow XX% in margin revenue fourth million, flow from the net and on operations revenue record for $X.X year X% expenses. fourth of diluted to year-over-year mix procured RSU million in we primarily $XX.X continue the Non-GAAP year over net expenses quarter from in installations, decrease $X.X up flow 'XX We AirDial $X.X gross or and for with which during had fourth to compared or XX% compared in $X.X quarter. Adjusted our $X.XX of XXX% quarter subscription EBITDA million QX. for the the for expenses as per fourth expenses some marketing the details year. Sales the development year-over-year, half prior period was on as to last X% same the to year. The $X.X and margin in year. fiscal of due heavier as increase XX% with free was prior million strong the was cash channel total margins were share driven and was in The a through quarter. which as robust quarter reflects services fourth year QX. The fiscal year-over-year and management gross represented gross revenue, X% to the a of $XX.X margin had or offset overall by was $X.X driven QX down earnings 'XX, or operating prior higher or cash margin. And million. We consuming in revenue fully marketing same million, total X% open total product basis product cash XX% spent stock $XX.X market and we and of to XXXX, the in fully back XX% now primarily paid million share gross million In free for total generated quarter and basis, cash in the flow, down from XXXX. With during XX% fiscal settlement. investments XXX% activity higher to year and another our total respectively, total debt year-over-year or operating $XX.X of fiscal generated on X% revenue, development million were million a $XX.X of a combination buy a off the generation, up repurchase ended and cash negative

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

full provide and Now, guidance first I XXXX. fiscal will year quarter for of the

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

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

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

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

subscription full XXXX, X% total the over revenue and revenue assumes 'XX, to million in full-year million. of fiscal X% year fiscal of expect rate be while decline XXXX residential $XXX growth fiscal the For X%. subscription to $XXX range revenue The revenue services to to business X% guidance we to

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

$XX fiscal non-GAAP expect to 'XX this the adjusted to million. be Based to be million million estimate net $XX.X range, $XX million. for on our income 'XX of to EBITDA we $XX.X fiscal in guidance We for range

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

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

Let me first quarter and fiscal guidance. provide additional for context 'XX our

associated timing with of guidance some as acquired IWG customers the as we churn revenue impact partners first of the predicting AirDial ramp Our well new from additional quarter reflects challenges the and revenue an recently. expected in with

is of excited early revenue the we with them. to drive While in implementation we relationships are still growth, predict phases AirDial ramp to are about pace of difficult very the new these as

We're to and XX% a operating profitability, quarterly a make fiscal progress are pleased flow the with leverage we of target. reflect 'XX grow with of record front us XXXX, profitable adjusted EBITDA over these non-GAAP strategy our margin, the respectively. With it respect on adjusted Eric EBITDA some solid to to in guidance, at opportunities continue for our closing guidance to our meaningful 'XX excited long-term now finish terms XX% adjusted and we back can over X% free of growth. the drive about with are EBITDA, summary, close step-up. Eric? In remain the midpoint achieve long-term as year. metrics our our net believe toward 'XX a achieve of growth expected And to executing million income fiscal compared pass for I'll focused we cash In we $XX to to fiscal for XX% along as and record to in remarks. and

Eric Stang

Thanks, Shig.

resale I want our both platform by future success you Ooma carriers in So market we the businesses, talked worldwide. providing extend XXXXHz capture believe with today for as opportunity, crafted X on modern communication where large used replacement has POS partners, leading our segments smaller-sized to and directly solutions the solutions. We to and focus solidify through about the

I to exciting to you. for line As an enhanced time us, Thank drive we results. bottom achieve want and well-placed feel these succeed. goals, we It's also we're

take We now questions. your will

Operator

question Arjun William from line Blair. from Bhatia first of our And the comes

Linda Lee

you Has election? faded are What in question little bit Eric, seeing Lee environment? is Linda a you. SMB the This it here Arjun. for after a for the

Eric Stang

the going year is and January, quite back say in faded. may lot were everything always wouldn't QX as we've the of of But holidays market and then business on, with businesses be quarter where I else that. activity, small it's a the not in No, one things much. seen

strong, think I it been So remains and strong. it's

Linda Lee

And sales resellers resell but also color you assisting another question, about the 'XX? approach more us are quarter can on fiscal on how driving thinking you partners in every in new strategic give adding

Eric Stang

we've amazing Ooma with see have in as it's think to go And we AirDial. exciting to really pretty established that growing that XX we over It's particular, resell, partners Yes. to forward. relationships

X Telo and reselling partners small Some reselling are POS X are of well. replacement those number a Office, or as for

lines across of entities think AirDial. lines this that there POTS business lots replace out We to to there So want our market even in are or to beyond POTS cuts need replace can the be our solution. it back solution how complete and we look operates when that clear is step do it you it and the winner and as how what one at really and built

we're excited to pursuing keep So that.

the development think small past, every resellers of focused too, and goal I this said are have who our We of a team on And and corporate couple our quarter, we that. to a do add in can is that. individuals goal, as said, we've we

Operator

question from comes Kinstlinger line Brian Global the from And Alliance of Partners. our next

Brian Kinstlinger

someone in communicated And have? how terms of they time what's do been So, frame and many for POS the replacement? lines Marriott, like their maybe for plans

Eric Stang

we today. or tell it's can in I over AirDial X,XXX actually that early And into looked where agreement. sell can Canada the I has US this Marriott other alone. haven't with very you stages markets So properties

the some know I to brand is going Marriott answer time fundamental community. give question have think to your to I it able that So be fully. But to within we're certification

industry they think to and degree only the in. I very it, is also which their it POS I them. adopt hospitality be having the so replacement they to has solutions position a review to up solution generally, being for looked And within Marriott to strong that the think, before have

weight to at us, that so you that target the different line some an with no, this look hopeful their about that we and market. But XX go a And carry us them. other too, XX bring might properties in players all the a think might now it's POS essentially in door open have them will as our we're for need applications you lines solutions. property I tell to Marriott if can large

too it big be but and sizable, it's soon So to how how say. can fast,

Brian Kinstlinger

think of quarter, market think from the partner would And large cable then ramp either your POS what I move in general you And be help they partner you you that replacement, limited I'm much in more correctly? or if quickly? in not to March do terms other regard understand might customers visibility motivated the us from understanding for you has partners. Can to why mentioned in know last you more if

Eric Stang

business visibility a large generate March going Fortune vast we will that's first launch area not That's We have have relationship this are generate step. their and wait company, public the able But limited their with do? in business? that's now majority think up a see. I they will. to door And fast in opener cable date. them as in for that with So to they March. to How you, sector. public partner of we intending to not do of It's are and tell still, an been already. We're much partner, the will only the the that is, involved them side sales activities. And force we've XXXX with with deals though, the enterprise some sector this their in also can but us

before. in market going still quite or hundreds more win just have start even the be going it's happen hard general, about I they over likely or through because lots to are year month but excited a face We to we're going so we move on developing, than think market properties the we're where of year. large, ever to year, replacement handful are do to maybe start see locations them we but do happening But each lines.Â And they but they this businesses what's where the handicap see that's or of think have small. They and also certain the immediate need. thousands of who to with POS what's customers materializes. to be through how last go been we hopes, In So it the forward very need

Brian Kinstlinger

we first to that question mentioned I the Do how stable after churns you it's communicated think you IWG. short- first the more continue you churn? medium-term quarter or the what us first have, to of been quarter, you some Will give from the it's quarter trajectory expect. after in to point? Just expected more see, last The at

Eric Stang

Yes.

We as said view there be right it's that, a last it we about would you But interesting we're change. this where have the a quarter, be XX more things can on last at but said line we'd we some aggregate reductions look in over months, just this, quarter. When year ago.

So it took reductions what last them said time happen this they've some done longer to we literally year. But do been to than going were now.

don't for more And excited they working turn to plans lot up been I expect, And and and it But together. could might are beyond new we to have buildings. They We we too if pretty relationship into serve and things. a the everything done I we're you good give so them those unfold an in areas. with that very coming. And we're a and upside some them expect some this, away almost IWG try much. with until new working them, as say opportunities can't with that on that take positive, will has too, enable us to businesses we've be them have think Regus will we and their now, users are stabilized. testing,

opportunity. think I but know, a spot, good, never you going this quarter, we're maybe pretty some to after growth in pretty be So with stable

Operator

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

Josh Nichols

the in assumptions to if I'm bit for out AirDial But just just were you bit SMB granularity, seeing. are A would bit you of I you be you little little revenue little like being that helpful. recurring conservative piece provide more market, curious were provide the context. business. if overall, could what could a a the you're you know your said if what AirDial more on of strip pretty

Eric Stang

Sure.

strategy Let maybe context per market this in of priorities more Ooma's than frame and SMB our the the se. me

business expanded opportunity. wholesale include to scope also replacement a and market an market have services our incredible We POS opportunity longer-term

those line improved marketing higher thrilled guidance areas substantially were net and in growing sales bottom even done of the to performance. and sales of shifted We because without last income year to into to committed amount to grow drive and year spend. We've our we're give have non-GAAP part our that some driving We in marketing also going growth that's we're there. XX% this activities

balancing So like cloud few America. that. It's the majority taking we'll We line the a that's another do maybe someone lot we're grow in in that provider and overall switching North we're nicely, even good XX growth for into millions we're business but actually or from this it's pot the We're our just with phone employees was customers And often to across the less get, after the all that small opportunities see segment. data with cable X context from a features business. businesses new into year America opportunity. Still, them, North and the going going company. We them, of the a trying a still provider yet we always we're I lines businesses the of around of seen come the are have estimate that that to of million X cloud We've there provider. move to say, are in to cloud. maybe taking small them they're from to in

continue we see to have. So the market across good growth we but we are of our outlook segments opportunity, all balancing

Josh Nichols

you providing little And this about you're path beyond particularly the on are year. to would marching some accelerate the opportunities. I anything to recurring back, of increasing headwinds your a revenue conservative not expansion. bit hope a margin you then and customer you growth, meaningfully guidance more term, for And guess, these formal with focus to then next EBITDA know bit new given just churn I largest on a of being start fair AirDial piece, little the rollout see that that like longer nice taking about have that talked one, expect step profitability, like say Do you longer along to continue term, year? like,

Eric Stang

Yes.

it way that that I growth but is, have, at look is know today, of them. the I what segments targeting say if you think they in to potential years we're don't many another

be to POS are it's up even not I and next have that. Wholesale gone them big even year, forward take services beginning think as going huge and year community business to realize just to to head bigger to that solutions year replacement AirDial after to small XX and carriers a they X Metaswitch the and BroadSoft the the going years. is going gotten. and maybe still be as And this over there's are be pick their next

line. And our the something in for improve viewing the because we've doing the improve investments leading product at we in we going market, that come. to the solutions to years while to in be we're we've portfolio past. to So we're invest evolve to to and we level bottom in we're have them, invested we've can also continue them we made building business, our don't leverage And think the but them particularly in built committed

our so, better this already reflect And guidance leverage bit on we're up achieve. a R&D, little does year to which set

go don't why more So we reason yes, And grow set. can't profitable that's the as see goal we forward. and be I any we

Operator

Lake question next Markets. of Street the Capital Maxwell Partners from comes line our And Michaelis from

Maxwell Michaelis

Can March companies other track play. on we me, that It any sounds States? cable United with It's top good in is guys are with are in you that the top-tier like remind to hear company. conversations cable the you national of around still

Eric Stang

talking cable have different who that say they to. But in the to be to I market. more play aspirations others their and the companies bring can't their in in market, aggregators own large CLECs players have POS together, and who who we're in ILECs solutions And we're a or stages in certainly, place, we're who lines and conversations of whether talking long win we not process. list at really So

in are So to anyone interested solutions. we to yes, excited who's our talk

Maxwell Michaelis

the look And digits X% or mid-single X% I segment, we maybe and half spread should just me throughout are in XXXX to half first digits we across about help half, double low out you growth I half. out me help year. the the that maybe single how board? there kind guess or second the believe digits of year think the is. business at first then second mean, that I in said 'XX, fiscal

Eric Stang

Yes.

So the we conservative installing To about is on way think and more particular, back in how about how we half the a a installation second extent see half. stance Maxwell, grow we pace were half. aim than we the first in you it think the faster at in that AirDial That's it. the goes, taking to

once install, know, you we that. as follows subscription revenue the So

So as first X%, the X% we think say growth about than is to more the second to how for it's I that year, I that would guided distributed, the half. business how that's half subscription

Operator

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

Matthew Harrigan

Is going top out you to to a of growth particular a novo new product open there unmonetized, year were kind than yearÂ and acquisition? customer before? And push really initially kind was is when higher growth some to that over then presumably, is you've I announced of new think more growth that time. When business the be the aspects offering of a of to that. what look almost there source de XXXXHz incremental X,XXXHz last it of I completely were be number at pointed your customer? broadening got on deal, Or you would the it and top on their that secondly, this gradual is monetize opportunities you the know have there,

really lot concerns about are follow, know expressing seeing caution of economy? you a a or So on on I economy are a not talked SMB of of calls And the does least economy. the in side, some slowdown imply fair of maybe some clearly, a right other other Ooma names over a caution on plateauing you're bit on side area in Office now. the out at lot the that I them the your the

Eric Stang

Hi, Matthew.

it customers, for revenue So, And question, secure to them. of customers you when X,XXXHz take the solution think over, that's convert to as ramp it will second well. a of time if because and more your on new they're for make they process adopt then, part we going work existing to first, as the have whole the

this monetize asked wins we than on XXXXHz, and is achieve setting will business fiscal it. how year some then But XXXXHz. this So I year greater in that, fiscal think from in the to about going do. And you and our be out to XXXXHz year have we're next major order what to that we're impact

be platform do we're the We achieve there to I think from have new to existing is wins. looking base. with to that customer monetized can that going that we the growth of most the come services are adding

we're comes the that apps from platform. the of One IP them and just Ooma bringing onto

to adopt low-cost with carrier customer go services for our XXXXHz are customers launched to leveraging to some our revenue. there. solution, can structure of the want our base going Some lead them and that then to also And we

what at said join and customers can partners that from fast I the ones remarks, cautious opening doing. in of outlook to base. existing think AirDial until from incremental just some so part you're those X,XXX how with we growth our my But us We're pace things expand be these new those which pace ramped what And also and be the the I expands reduced really hearing materialize. we at that in But is going we're what which have resale of us. the any and us haven't activities

Matthew Harrigan

need on commentary of the some the on then on of the predatory kind replacement, for & the Sullivan copper accelerating pricing And part POS the really lines. awareness, the the of Frost

your there companies same as well. addressing you're sport of it? Is has I the someone and over problem, pace or have If mean, issues you're got they it? either seeing little in that some making Are your adjustments right some feels being & competition. I have in Asia inconsistent you've certainly there and addressing now, mean the necessary to may not or the there? or implies how alternatives I I else Frost a mean, are that you're Europe if dynamics hard solutions U.K. Germany know small market not are but your like offering? And those In the the you of market then moderating not there. be pushing that it about. is growth markets you with Where in is there not in a to spoken pace, other bit you cautious words, fast someone the Sullivan have and

Eric Stang

hard than say it's I've So out terms I of market number what that away seen some their lines of that is. less analyst remaining exactly XX% commentary a yet very to the has will from little that It's line we suggests converted know baffling. the in POS there. see that

still, save me. I There servicing shocking I X money. some this what, the was me And a of think done year have the customers got they it businesses Bay amount process. told it are get and months. making if at just to CFO they ranks elevator I've through they don't were or it see. They but have decisions out to find for to buildings And in know learned could it when never looked they $XXX at here these were aren't up X-figure take we know great the X is local I to who a line to in of by they recommended done lines, their Ooma month who had a their Area they which per place. company, them each paying for AirDial P to shocked over could

didn't were so know. just much we're how but they on they And thrilled saving them,

of getting it's a the word out. matter think I So

cost level month it's you just uncommon a you to more matter where And for a a of think bus up if a it's which what's because not this them, line, about $XXX happening quite substantial. it's of companies when think or nuts is $XXX to have I to the of see rising lot a understand it.

the go to here. there about think for we So all get bigger talked faster. our the and market the trends We've past competitors are in

could and get other X sell that had us from to relationship, player. come then aggregators they biggest not may have start how relationship we they with competitors an is will large who versus of better customers what what is with selling have needed us one a we are them larger-sized And existing with that believe Our solution. product accounts, and when they

like So solution feel We disadvantage. in at the actually we're the feel space. have we some we competitive best like don't

outside opportunities North Our challenge that as or partners of but have as would have it to cable perspective. now to we we'd think in with go international, they I of something cable to half aggregators Cellular, other we activities honestly, resale some as the the America, a America. well. Frontier Outside you as lot large relationships reseller problem such we international when is approach mean, you X good year, partner of spend provider to it's is we on. But to of to we're a those and large to because won in last months. want won an of we last another mentioned I time have AirDial that don't. And something U.S. effort or Communications. work and We America T-Mobile, that all many not so make the from spent pursuing this North do, time a like That's partner do and have could conversations space large we haven't and resale we CLEC, North moved fast We provider, about won if have. But think we this

to keep want anyway, pretty be together, just working some that's have. cautious momentum. But And going given have to and until are the we outlook the we're come at to having We success to we you. things we've drive good it

Matthew Harrigan

assume conversations, which can practices companies but best X will. sure us assimilate bigger door they And having definitive, Verizon I Frontier's too the start And again. strategic the I'm way when that told know at Yes. be for in they I will when engage will yet, to those would there do can't can't look that be you a they acquisition. I'm open

Operator

like to this Instructions] And the further of question-and-answer today's any [Operator session the I'd program. back remarks. management hand for program concludes to

Eric Stang

everyone. thanks, us great to your here and Well, joining a everyone, have for going Thank you, we're year. today. hard Bye-bye. for support work appreciate We Ooma, to

Operator

the for conference. gentlemen, and concludes program. ladies you, participation your in Thank today's This

disconnect. now may Good You day.

Ooma (OOMA) 4 Mar 252025 Q4 Earnings call transcript