Ooma Inc, a communications services company, reported its financial results for the fiscal first quarter ended April 30, 2024. The company, known for its smart software-as-a-service (SaaS) and unified communications platform, demonstrated significant growth in its business services and overall revenue.
Performance Overview
Ooma Inc (OOMA, Financial) reported total revenue of $62.5 million for the fiscal first quarter of 2025, surpassing the analyst estimate of $61.84 million. This marks a 10% increase from the $56.85 million reported in the same quarter last year. The growth was primarily driven by a rise in subscription and services revenue, which increased to $58.4 million from $53.0 million in the previous year, accounting for 93% of total revenue.
Financial Achievements
Despite the positive revenue growth, Ooma Inc (OOMA, Financial) reported a GAAP net loss of $2.1 million, or $0.08 per basic and diluted share, compared to a GAAP net loss of $0.3 million, or $0.01 per basic and diluted share, in the first quarter of fiscal 2024. On a non-GAAP basis, the company reported net income of $3.6 million, or $0.14 per diluted share, slightly down from $4.0 million, or $0.16 per diluted share, in the prior year period.
Key Financial Metrics
| Metric | Q1 2025 | Q1 2024 |
|---|---|---|
| Total Revenue | $62.5 million | $56.85 million |
| GAAP Net Loss | ($2.1 million) | ($0.3 million) |
| Non-GAAP Net Income | $3.6 million | $4.0 million |
| Adjusted EBITDA | $5.0 million | $4.8 million |
Income Statement Highlights
Ooma Inc (OOMA, Financial) reported a gross profit of $38.1 million, up from $35.95 million in the same quarter last year. The company's operating expenses increased to $40.85 million from $36.56 million, leading to a loss from operations of $2.74 million compared to a loss of $0.61 million in the prior year period.
Balance Sheet and Cash Flow
As of April 30, 2024, Ooma Inc (OOMA, Financial) had total assets of $155.24 million, down from $159.25 million as of January 31, 2024. The company's cash and cash equivalents stood at $15.59 million, a decrease from $17.54 million at the beginning of the period. Notably, the company managed to pay down $4.5 million of debt during the quarter, reflecting a significant improvement in cash flow from operations.
Commentary and Outlook
“Ooma made a solid start to fiscal 2025 by delivering $62.5 million in revenue and $3.6 million of non-GAAP net income for our first quarter,” said Eric Stang, chief executive officer of Ooma. “Year-over-year, we achieved 18% growth in business services revenue and 10% growth in overall revenue. Cash flow from operations was significantly higher than a year ago, allowing us to pay down $4.5 million of debt during the quarter. We remain focused on growing Ooma business services revenue and believe we made good progress in Q1. Our continued feature expansion, addition of new reseller partners, launch of AirDial in Canada, and key customer wins in the quarter make us optimistic about our outlook for fiscal 2025.”
Business Outlook
For the second quarter of fiscal 2025, Ooma Inc (OOMA, Financial) expects total revenue in the range of $62.5 million to $63.0 million. The company anticipates a GAAP net loss in the range of $2.2 million to $2.5 million and a non-GAAP net income in the range of $3.6 million to $3.9 million. For the full fiscal year 2025, Ooma projects total revenue between $250.7 million and $253.0 million, with a GAAP net loss ranging from $7.7 million to $8.7 million and a non-GAAP net income between $15.0 million and $16.0 million.
For more detailed information, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from Ooma Inc for further details.
