Q1 2025 Ooma Inc Earnings Call Transcript
Key Points
- Ooma Inc (OOMA) reported $62.5 million in revenue and $3.6 million in non-GAAP net income for Q1, exceeding original expectations.
- Business services revenue grew by 18% year over year, indicating strong performance in this segment.
- Operating cash flow was $3.6 million, nearly triple that of the same quarter last year, and the company paid down $4.5 million of debt.
- Ooma Inc (OOMA) added several new integrations with platforms like Zendesk, HubSpot, and Square, enhancing their service offerings.
- The company signed a significant contract with a new customer on the 2600Hz platform, which has the potential to become one of their largest revenue customers.
- Residential subscription and services revenue declined by 2% year over year.
- Product and other gross margin for the first quarter was negative 67%, primarily due to higher-cost components procured during the pandemic.
- Total operating expenses increased by $2.6 million or 8% from the same period last year, driven by higher marketing and channel development costs.
- The company experienced a larger-than-normal churn from its largest customer, IWG, which impacted user metrics.
- Non-GAAP net income per diluted share decreased to $0.14 from $0.16 in the prior-year quarter, partly due to increased interest expenses and lower interest income.
Good day and thank you for standing by. Welcome to the 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 Robinson, please go ahead.
Thank you, Victor. Good day, everyone, and welcome to the fiscal first quarter 2025 earnings call of Ooma Inc. My name is Matt Robison, Ooma's Director of IR and Corporate Development. On the call with me today are Ooma's CEO, Eric Stang and CFO, Shig Hamamatsu.
After the market closed today, Ooma issued its fiscal first quarter 2025 earnings press release. The release is also available on the company's website, ooma.com. This call is being webcast live and is accessible from a link on the events and presentations page of the Investor Relations section of our website. This link will be active for replay of this call for one year.
During today's presentation, our executives will make forward
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