Latest news with #OomaInc
Yahoo
a day ago
- Business
- Yahoo
Benchmark Maintains Buy Rating on Ooma, Cites AirDial as Key Growth Catalyst
On May 28, Benchmark analyst Matt Harrigan reaffirmed his stable Buy rating for Ooma Inc. (NYSE:OOMA) while maintaining a price target of $20. The analyst highlighted the company's robust product line, particularly the AirDial POTS (Plain Old Telephone Service) replacement solution, as a key factor in its continued progress. Harrigan stressed that the AirDial device meets a significant market demand, since more than 20 million POTS lines in North America urgently require an upgrade to prevent cost increases and possible safety hazards. He expects Ooma Inc. (NYSE:OOMA) to continue to experience gains in margins as a result of operational leverage, including lower costs for R&D. Harrigan added that if the current upward trends continue, there may be more potential for the stock. He noted AirDial's impressive performance as a key growth driver and proposed that the company's valuation potential could be improve by exceeding existing estimates for Adjusted EBITDA margins. While we acknowledge the potential of OOMA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than OOMA and that has 100x upside potential, check out our report about the cheapest AI stock. Read Next: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Benchmark Maintains Buy Rating on Ooma, Cites AirDial as Key Growth Catalyst
On May 28, Benchmark analyst Matt Harrigan reaffirmed his stable Buy rating for Ooma Inc. (NYSE:OOMA) while maintaining a price target of $20. The analyst highlighted the company's robust product line, particularly the AirDial POTS (Plain Old Telephone Service) replacement solution, as a key factor in its continued progress. Harrigan stressed that the AirDial device meets a significant market demand, since more than 20 million POTS lines in North America urgently require an upgrade to prevent cost increases and possible safety hazards. He expects Ooma Inc. (NYSE:OOMA) to continue to experience gains in margins as a result of operational leverage, including lower costs for R&D. Harrigan added that if the current upward trends continue, there may be more potential for the stock. He noted AirDial's impressive performance as a key growth driver and proposed that the company's valuation potential could be improve by exceeding existing estimates for Adjusted EBITDA margins. While we acknowledge the potential of OOMA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than OOMA and that has 100x upside potential, check out our report about the cheapest AI stock. Read Next: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Ooma Inc (OOMA) Q1 2026 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Release Date: May 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Ooma Inc (NYSE:OOMA) reported solid Q1 financial results with $65 million in revenue, exceeding the high end of their guidance range. The company achieved a 4% year-over-year revenue growth, driven by strong performance in their cloud communications and business subscription services. Ooma Inc (NYSE:OOMA) successfully launched AirDial with Comcast, expanding their reach to large companies and government entities. The company saw a significant increase in new reseller partners for AirDial, now exceeding 30 partners, indicating strong market acceptance. Ooma Inc (NYSE:OOMA) reported a 56% growth in non-GAAP net income over the prior year quarter, showcasing improved profitability. The overall results were slightly dampened by expected right-sizing at their largest customer, Regis, which has now been fully realized. Residential subscription and services revenue declined by 2% year-over-year, indicating challenges in that segment. The sequential decline in total core users was primarily due to seat reductions with IWG, impacting user growth metrics. Product and other gross margin for the first quarter was 41%, down from 67% in the same period last year, due to higher cost components. Despite strong growth in certain areas, the company did not change its fiscal 2026 outlook, indicating cautious optimism about future growth. Warning! GuruFocus has detected 2 Warning Signs with OOMA. Q: What contributed to the 1% increase in Net Revenue Retention (NRR) this quarter, and can we expect NRR to stay at around 99% or above going forward with IWG fully realized with their seat term? A: The retention rate improvement was largely due to the improvement in non-Regis subscription revenue, particularly in traditional UCaaS solutions and residential solutions. This offset the anticipated decline from Regis. We expect to maintain a 99% retention rate, which was our rate prior to the Regis churn experienced in the last couple of quarters. (CFO) Q: What are you seeing in the demand environment in Q1 and recent months? A: The demand environment has been steady without significant improvement or deterioration. However, for Ooma AirDial, demand is accelerating as more companies realize the need to act due to rising prices. (CEO) Q: With demand for AirDial accelerating, is there any change to visibility on when adoption will ramp in terms of revenue dollars and larger scale implementations? A: We have opportunities greater in size than we've won in the past, and our relationship with Comcast is still in early days. It will take time to move through the sales cycle with larger accounts, but we are optimistic about the early opportunities we're seeing. (CEO) Q: Have tariffs impacted your subscriber base or sales cycle for new logos in your UCaaS business? A: We haven't observed any effect on our customer base or sales opportunities driven by tariffs. Sequentially versus Q4, we saw an uptick in the number of accounts and users won in Q1, indicating no tariff-related issues. (CEO) Q: Can you provide insights into the productivity of your AirDial partners, especially those from a year ago? A: We are pleased with our largest relationships, such as T-Mobile, US Cellular, and Comcast. All partners, regardless of size, are contributing. We have a medium-sized CLEC with potential for 100,000 users that has started rolling out AirDial. We remain conservative in forecasts until developments are confirmed. (CEO) Q: How is the hospitality segment performing, and what opportunities do you see there? A: We target winning 50 to 100 hotels a quarter, and with the Marriott relationship solidified, we aim to leverage our certification with Marriott Properties. The hospitality segment offers extensive opportunities, and we expect to continue capitalizing on it. (CEO) Q: What are your plans for integrating Ooma apps into 2,600 Hz, and when will it be completed? A: We aim to complete integration by the end of this year. The process involves enabling capabilities across shared hosted, private cloud, and global infrastructure. We've already launched our mobile and desktop apps for some customers. (CEO) Q: Can you quantify the number of lines that churned at Regis over the last two quarters? A: Approximately 12,000 to 13,000 lines churned over the last two quarters, with a total of about 19,000 to 20,000 lines churned over the last fiscal year. This aligns with our expectations from a year ago. (CFO) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
San Francisco Chronicle
2 days ago
- Business
- San Francisco Chronicle
Ooma: Fiscal Q1 Earnings Snapshot
SUNNYVALE, Calif. (AP) — SUNNYVALE, Calif. (AP) — Ooma Inc. (OOMA) on Wednesday reported a loss of $141,000 in its fiscal first quarter. On a per-share basis, the Sunnyvale, California-based company said it had a loss of 1 cent. Earnings, adjusted for stock option expense and amortization costs, were 20 cents per share. The results surpassed Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of 18 cents per share. The internet phone service provider posted revenue of $65 million in the period, also topping Street forecasts. Seven analysts surveyed by Zacks expected $64.8 million. For the current quarter ending in July, Ooma expects its per-share earnings to range from 20 cents to 21 cents. The company said it expects revenue in the range of $65.5 million to $66.1 million for the fiscal second quarter. _____
Washington Post
2 days ago
- Business
- Washington Post
Ooma: Fiscal Q1 Earnings Snapshot
SUNNYVALE, Calif. — SUNNYVALE, Calif. — Ooma Inc. (OOMA) on Wednesday reported a loss of $141,000 in its fiscal first quarter. On a per-share basis, the Sunnyvale, California-based company said it had a loss of 1 cent. Earnings, adjusted for stock option expense and amortization costs, were 20 cents per share.
