Ooma Q2 2023 Earnings Report
Key Takeaways
Ooma reported strong Q2 results with a 12% increase in revenue year-over-year, reaching $52.7 million. The company also saw improved gross margins and solid non-GAAP net income. Ooma acquired Junction Networks Inc., also known as OnSIP, which is expected to add approximately 50,000 new business users and be accretive starting in Q4 of this year.
Total revenue was $52.7 million, up 12% year-over-year.
Subscription and services revenue increased to $48.0 million, representing 91% of total revenue.
GAAP net income was $0.3 million, or $0.01 per basic and diluted share.
Adjusted EBITDA was $4.0 million.
Ooma
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Ooma Revenue by Segment
Forward Guidance
Ooma expects total revenue to be in the range of $56.0 million to $56.5 million, GAAP net loss in the range of $1.6 million to $2.1 million, and non-GAAP net income in the range of $2.7 million to $3.2 million for the third quarter of fiscal year 2023. For the full fiscal year 2023, Ooma expects total revenue in the range of $215.5 million to $218.5 million, GAAP net loss in the range of $3.3 million to $4.3 million, and non-GAAP net income in the range of $11.4 million to $12.4 million.
Positive Outlook
- Total revenue in the range of $56.0 million to $56.5 million.
- Non-GAAP net income in the range of $2.7 million to $3.2 million.
- Non-GAAP net income per share in the range of $0.11 to $0.13.
- Total revenue in the range of $215.5 million to $218.5 million.
- Non-GAAP net income in the range of $11.4 million to $12.4 million.
Challenges Ahead
- GAAP net loss in the range of $1.6 million to $2.1 million
- GAAP net loss per share in the range of $0.06 to $0.08.
- GAAP net loss in the range of $3.3 million to $4.3 million.
- GAAP net loss per share in the range of $0.13 to $0.17.
- Stock-based compensation and related taxes
- Amortization of intangible assets and acquisition-related costs
Revenue & Expenses
Visualization of income flow from segment revenue to net income