Ooma (OOMA) 4 Dec 24 2025 Q3 Earnings call transcript

The recent earnings call by Ooma, Inc. showcased a robust performance for the third quarter of fiscal year 2025. The call was led by Ooma's Director of IR and Corporate Development, Matt Robison, alongside CEO, Eric Stang, and CFO, Shig Hamamatsu. This call provided valuable insights into Ooma's financial performance, strategic initiatives, and market positioning.

Financial Performance and Debt-Free Status

Ooma reported a record-breaking quarter with $65.1 million in revenue, $4.6 million in non-GAAP net income, $5.7 million in adjusted EBITDA, and $8.1 million in cash flow from operations. This financial success allowed Ooma to pay off the remaining debt on its credit line, marking a debt-free status. Over the past year, Ooma has managed to pay off $18 million of debt and buy back $5.2 million of its stock.

Strategic Initiatives and Customer Wins

Ooma's strategy to improve operating expense leverage, particularly in the context of its 2600Hz acquisition, is starting to yield results. The company secured two significant new customer wins in Q3, contributing to its strong financial performance. Ooma Business, which accounted for 62% of total revenue, saw notable growth with the launch of new customer engagement features and an increase in premium tiers. AirDial, Ooma's solution for POTS replacement, experienced a surge in sales due to market momentum and the impending copper line shutdowns.

Partnerships and Market Opportunities

Ooma announced two major partnerships in Q3, including a top-tier national cable company reselling AirDial and a new aggregator reselling both AirDial and Telo. These partnerships represent significant opportunities for Ooma, particularly in the context of the cable company's strategic focus on moving communications to the Internet and replacing copper lines. Ooma's 2600Hz platform, used by resellers to create their own solutions, also saw a notable win with ServiceTitan, a $685 million revenue company.

Looking Ahead

For the fourth quarter and full fiscal year 2025, Ooma expects total revenue to be in the range of $64.6 million to $65.1 million, with non-GAAP net income projected between $4.5 million to $4.8 million. The company is raising its revenue and profitability outlook for the full year, expecting total revenue of $256.3 million to $256.8 million. Ooma's focus on executing its strategy to achieve profitable growth is evident, with an emphasis on capitalizing on its growing community of partners and leveraging the capabilities of its 2600Hz platform.

In conclusion, Ooma's Q3 fiscal year 2025 earnings call highlighted a strong financial performance, strategic initiatives, and promising market opportunities. The company's debt-free status and strategic partnerships position it well for future growth, particularly in the context of the evolving telecommunications landscape. Ooma's focus on improving operating expense leverage and capitalizing on the 2600Hz acquisition is a testament to its strategic foresight and execution. The company's optimistic outlook for the future, coupled with its impressive track record, paints a positive picture for Ooma's continued growth and success.