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Apr 30, 2022

Ooma Q1 2023 Earnings Report

Ooma's revenue increased by 10% year-over-year, reaching $50.3 million, driven by Ooma Business growth, which now contributes over 50% of subscription services revenue.

Key Takeaways

Ooma reported a 10% year-over-year revenue increase in Q1 2023, reaching $50.3 million, with Ooma Business being a key driver, contributing over 50% of subscription services revenue. The company's GAAP net loss was $0.8 million, or $0.03 per share, while non-GAAP net income was $3.0 million, or $0.12 per diluted share. Adjusted EBITDA was $3.9 million.

Total revenue increased by 10% year-over-year to $50.3 million.

Subscription and services revenue grew to $46.7 million, representing 93% of total revenue, driven by Ooma Business.

GAAP net loss was $0.8 million, or $0.03 per share, while non-GAAP net income was $3.0 million, or $0.12 per diluted share.

Adjusted EBITDA was $3.9 million.

Total Revenue
$50.3M
Previous year: $45.6M
+10.5%
EPS
$0.12
Previous year: $0.11
+9.1%
Adjusted EBITDA
$3.86M
Previous year: $3.46M
+11.5%
Gross Profit
$32M
Previous year: $28.1M
+13.8%
Cash and Equivalents
$21.7M
Previous year: $18.9M
+14.6%
Free Cash Flow
-$640K
Previous year: -$241K
+165.6%
Total Assets
$111M
Previous year: $90.1M
+23.5%

Ooma

Ooma

Ooma Revenue by Segment

Forward Guidance

For the second quarter of fiscal 2023, Ooma expects total revenue in the range of $51.4 million to $51.9 million, GAAP net loss in the range of $1.1 million to $1.5 million, and non-GAAP net income in the range of $2.4 million to $2.8 million. For the full fiscal year 2023, Ooma expects total revenue in the range of $210.5 million to $213.5 million, GAAP net loss in the range of $4.4 million to $5.9 million, and non-GAAP net income in the range of $9.5 million to $11.0 million.

Positive Outlook

  • Total revenue in the range of $51.4 million to $51.9 million for Q2 2023.
  • Non-GAAP net income in the range of $2.4 million to $2.8 million for Q2 2023.
  • Total revenue in the range of $210.5 million to $213.5 million for full year 2023.
  • Non-GAAP net income in the range of $9.5 million to $11.0 million for full year 2023.

Challenges Ahead

  • GAAP net loss in the range of $1.1 million to $1.5 million for Q2 2023.
  • GAAP net loss per share in the range of $0.04 to $0.05 for Q2 2023.
  • GAAP net loss in the range of $4.4 million to $5.9 million for full year 2023.
  • GAAP net loss per share in the range of $0.18 to $0.24 for full year 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income