In This Article:
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Revenue: $65.1 million for Q4 FY25, up 6% year over year; $256.9 million for FY25, up 8% year over year.
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Non-GAAP Net Income: $5.8 million for Q4 FY25, up 17% year over year; $18 million for FY25.
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Free Cash Flow: Over $20 million generated in FY25.
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Stock Repurchase: Approximately $9 million spent on repurchasing Ooma stock in FY25.
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Business Subscription and Services Revenue: 61% of total revenue in Q4 FY25; 13% growth year over year for FY25.
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Product and Other Revenue: $4.5 million in Q4 FY25, up from $3.7 million in the prior year quarter.
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Gross Margin: Subscription and services gross margin at 72% for Q4 FY25; total gross margin at 63% for Q4 FY25.
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Adjusted EBITDA: $6.9 million for Q4 FY25, 11% of total revenue.
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Core Users: 1,234,000 at the end of Q4 FY25, with 503,000 business users.
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Average Revenue Per User (ARPU): $15.26, up 4% year over year.
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Net Dollar Subscription Retention Rate: 98% for Q4 FY25.
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Cash and Investments: $17.9 million at the end of Q4 FY25.
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Fiscal 2026 Revenue Guidance: $267 million to $270 million.
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Fiscal 2026 Non-GAAP Net Income Guidance: $22 million to $23.5 million.
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Fiscal 2026 Non-GAAP EPS Guidance: $0.77 to $0.82 per share.
Release Date: March 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Ooma Inc (NYSE:OOMA) reported a solid Q4 FY25 with $65.1 million in revenue and $5.8 million in non-GAAP net income, marking a significant improvement from prior quarters.
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The company achieved an 8% year-over-year revenue growth for FY25, with non-GAAP net income growing by 17% year-over-year.
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Ooma Inc (NYSE:OOMA) generated over $20 million in free cash flow and repurchased approximately $9 million of its stock, indicating strong financial health.
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The company secured a large new Ooma Office customer with 282 users and several new office customers with over 25 users each, demonstrating successful customer acquisition.
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Ooma Inc (NYSE:OOMA) received Marriott Brand certification for its AirDial product, positioning it as the preferred POTS replacement solution for Marriott properties.
Negative Points
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Ooma Inc (NYSE:OOMA) experienced a sequential decline in total core users, primarily due to seat reductions with IWG, which was anticipated.
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The company faces challenges in predicting the timing of revenue ramp-up with new partners and customers, leading to cautious guidance.
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There is limited visibility on the pace at which new resale partners will ramp up sales, creating uncertainty in revenue projections.
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Ooma Inc (NYSE:OOMA) expects additional churn from IWG in the first quarter of fiscal 2026, impacting short-term growth.
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The company is cautious about the economic environment and its potential impact on the SMB market, which could affect future growth.