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Jul 31, 2023

Ooma Q2 2024 Earnings Report

Ooma's Q2 2024 financial results were released, demonstrating revenue growth and strategic initiative development.

Key Takeaways

Ooma reported total revenue of $58.4 million, an 11% increase year-over-year, driven by subscription and services revenue growth. GAAP net income was $0.3 million, or $0.01 per share, while non-GAAP net income was $3.8 million, or $0.14 per share. Adjusted EBITDA reached $4.9 million, and the company launched new features and developed capabilities for regional expansion and AirDial.

Total revenue increased by 11% year-over-year, reaching $58.4 million.

Subscription and services revenue grew to $54.7 million, accounting for 94% of total revenue.

GAAP net income was $0.3 million, or $0.01 per share, while non-GAAP net income was $3.8 million, or $0.14 per share.

Adjusted EBITDA was $4.9 million, compared to $4.0 million in the same quarter of the previous year.

Total Revenue
$58.4M
Previous year: $52.7M
+10.8%
EPS
$0.14
Previous year: $0.12
+16.7%
Adjusted EBITDA
$4.9M
Previous year: $4M
+22.5%
Gross Profit
$36.6M
Previous year: $33.8M
+8.2%
Cash and Equivalents
$29M
Previous year: $16.2M
+79.0%
Free Cash Flow
$1.41M
Previous year: $810K
+73.8%
Total Assets
$136M
Previous year: $123M
+10.7%

Ooma

Ooma

Ooma Revenue by Segment

Forward Guidance

For the third quarter of fiscal 2024, Ooma expects total revenue in the range of $59.0 million to $59.6 million, GAAP net loss in the range of $0.3 million to $0.6 million, and non-GAAP net income in the range of $3.8 million to $4.1 million.

Positive Outlook

  • Total revenue in the range of $59.0 million to $59.6 million.
  • Non-GAAP net income in the range of $3.8 million to $4.1 million
  • Non-GAAP net income per share in the range of $0.14 to $0.16.
  • Total revenue in the range of $235.5 million to $237.0 million for the full fiscal year 2024
  • Non-GAAP net income in the range of $15.5 million to $16.5 million for the full fiscal year 2024

Challenges Ahead

  • GAAP net loss in the range of $0.3 million to $0.6 million.
  • GAAP net loss per share in the range of $0.01 to $0.03.
  • GAAP net loss in the range of $0.4 million to $1.4 million for the full fiscal year 2024
  • GAAP net loss per share in the range of $0.00 to $0.04 for the full fiscal year 2024
  • Facilities consolidation gain

Revenue & Expenses

Visualization of income flow from segment revenue to net income