Q2 2025 Ooma Inc Earnings Call Transcript
Key Points
- Ooma Inc (OOMA) reported Q2 revenue of $64.1 million, exceeding guidance and showing a 10% year-over-year increase.
- Q2 non-GAAP net income was $4.1 million, also above guidance.
- Cash flow from operations nearly doubled from Q1 to $7.1 million, allowing the company to reduce debt by $3 million.
- Ooma Business, including UCaaS, POTS replacement, and wholesale solutions, performed well, with new feature releases and integrations boosting Ooma Office.
- A significant partnership with a top 10 incumbent local exchange carrier to resell AirDial and Ooma Telo was announced, potentially expanding market reach significantly.
- Subscription and services gross margin decreased to 72% from 73% in the prior year, partly due to the lower margin of 2600Hz.
- Product and other gross margin remained negative, though slightly improved from the previous year.
- Operating expenses increased by $2 million year-over-year, driven by higher research and development costs and G&A expenses.
- Residential subscription and services revenue declined by 1% year-over-year.
- The company anticipates churn from its largest customer, IWG, in the second half of the fiscal year, which could impact revenue.
Thank you for standing by, and welcome to Ooma's second-quarter fiscal year 2025 financial results conference call. (Operator Instructions) I would now like to hand the call over to Matt Robison, and Investor Relations. Please go ahead.
Thank you, Lateef. Good day, everyone, and welcome to the fiscal second-quarter 2025 earnings call of Ooma Inc. My name is Matt Robinson and I'm the 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 second quarter 2025 earnings press release. This 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 or replay this call for one year.
During today's presentation, our executives will make forward-looking statements within the meaning of the federal
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