Latest news with #cloudcommunications
Yahoo
5 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
Zawya
14-05-2025
- Business
- Zawya
Oracle and Infobip enhance partnership to deliver global conversational experiences
Dubai, United Arab Emirates – Global cloud communications platform Infobip today announced that it has enhanced its partnership with Oracle to bring conversational experiences to businesses and brands globally. The new integration enables Infobip and Oracle customers and partners to access Infobip's omnichannel services through Oracle Integration. Customers increasingly expect omnichannel communications, but integrating and managing new channels can be time-consuming, requiring complex development, deployment, and organizational processes. Infobip's new Omnichannel Messaging Adapter for Oracle Integration addresses this challenge by enabling all types of businesses to work with and manage omnichannel messaging channels involving Oracle and third-party solutions, including WhatsApp and RCS. The solution deploys quickly, reducing time to market. In addition, Infobip has provided a prebuilt use case – or Accelerator – for Oracle's contact center solution, Oracle B2C Service. This Accelerator is a flexible solution that allows consumers to connect with a company's support team via SMS and WhatsApp, delivering a streamlined two-way communication experience. Both the Omnichannel Messaging Adapter and Accelerator offer low or no-code solutions, benefiting Oracle's customers and partners. Oracle Integration provides secure, highly scalable connectivity regardless of the applications an organization is connecting with or where the applications reside. 'Our new collaboration with Infobip will help enterprises simplify connectivity and provide integration between the Infobip messaging platform and any applications using our unified integration platform as a service, Oracle Integration,' said Deepak Arora, Vice President, Product Management, Oracle. 'This partnership builds on our vision of fueling AI innovation for more businesses by integrating any apps, data, and services anywhere.' 'The Omnichannel Messaging Adapter for Oracle Integration enables Infobip and Oracle customers to tailor our omnichannel solutions to their specific needs using the same platform with just a few clicks,' said Veselin Vuković, Chief Alliances Officer, Infobip, 'The solution is flexible and works for a broad range of sectors and industries.' About Infobip Infobip is a global cloud communications platform that enables businesses to build connected experiences across all stages of the customer journey. Accessed through a single platform, Infobip's omnichannel engagement, identity, user authentication and contact centre solutions help businesses and partners overcome the complexity of consumer communications to grow business and increase loyalty. It offers natively built technology with the capacity to reach over seven billion mobile devices and 'things' in 6 continents connected to over 9,700+ connections of which 800+ are direct operator connections. Infobip was established in 2006 and is led by its co-founders, CEO Silvio Kutić, Roberto Kutić and Izabel Jelenić. About Oracle's Partner Program Oracle's partner program helps Oracle and its partners drive joint customer success and business momentum. The newly enhanced program provides partners with choice and flexibility, offering several program pathways and a robust range of foundational benefits spanning training and enablement, go-to-market collaboration, technical accelerators, and success support. To learn more, visit Trademark Oracle, Java, MySQL and NetSuite are registered trademarks of Oracle Corporation. NetSuite was the first cloud company—ushering in the new era of cloud computing. For more information, contact: InfobipUAE@
Yahoo
11-05-2025
- Business
- Yahoo
1 Artificial Intelligence (AI) Stock That Could Soar in the Second Half of 2025 and Beyond
Twilio stock has recovered impressively in the past month, and its rally seems here to stay. The company's focus on integrating AI tools into its cloud communications platform is paying off. Twilio's earnings growth rate is expected to pick up going forward, and its attractive valuation suggests that investors are getting a good deal right now. 10 stocks we like better than Twilio › The broader weakness in the stock market has weighed on shares of Twilio (NYSE: TWLO) so far this year, with the cloud communications specialist losing more than 4% of its value as of this writing. But the company's latest quarterly report has injected life into the stock. Twilio jumped more than 2% after releasing its first-quarter 2025 results on May 1. What's worth noting is that the stock has recovered 23% in the past month, and its solid quarterly results and guidance indicate that more upside could be in the cards. Let's look at the catalysts driving Twilio's growth and check why this tech stock is capable of heading higher in the second half of the year and beyond. Twilio reported a 12% year-over-year increase in revenue in Q1 to $1.17 billion. The company's earnings grew at a much faster pace of 42% from the year-ago period as customers adopted more of its AI-focused cloud communications tools, which led to an increase in spending by existing customers. This was evident from Twilio's dollar-based net expansion rate of 107% during the quarter, an improvement of five percentage points from the year-ago period. The dollar-based net expansion rate compares the revenue generated by Twilio's active customer accounts in a quarter to the revenue generated from those same accounts in the year-ago period. A reading of more than 100% in this metric suggests that Twilio's existing customer base is using more of its solutions or has increased the usage of existing solutions. That's not surprising, as Twilio is now offering AI-focused tools such as Conversation Relay that allow clients to integrate voice-enabled AI solutions into their customer service applications. Management points out that Conversation Relay can help clients build voice AI agents, as it offers more than 1,000 natural-sounding voices in 40 languages. The good part is that Twilio has started witnessing demand for its voice AI offerings, with one of its customers building a voice AI agent using the company's tools. Importantly, the size of the voice AI agents market is expected to grow at an annual rate of 35% over the next decade, so there is a good chance that Twilio's voice AI platform can attract more customers in the long run and drive stronger growth for the company. Twilio has a massive base of more than 335,000 active customer accounts. This number increased by 7% year over year in the previous quarter and suggests that the company has a tremendous opportunity to cross-sell its AI offerings and witness stronger revenue and earnings growth in the long run. So, it wasn't surprising to see Twilio boosting its full-year organic revenue growth guidance to a range of 7.5% to 8.5%, a small jump of 50 basis points at the midpoint. Even better, it is now expecting stronger growth in its non-GAAP operating income to $862.5 million, compared to the earlier estimate of $837.5 million. That would translate into a 38% jump from last year. Moreover, Twilio's top-line growth has been accelerating for the past five quarters, and the discussion above suggests that the trend could continue in the future as the adoption of its AI-focused tools improves. Twilio carries a 12-month median price target of $130 as per 30 analysts covering the stock, which points toward a 30% jump from current levels. However, there's a good chance that this cloud stock could do better than that. Analysts have bumped up their earnings expectations for 2025, and for the next couple of years. This is evident in the following chart. Assuming Twilio achieves $4.59 per share in earnings in 2025 and trades at 29 times earnings at the end of the year, in line with the tech-laden Nasdaq-100 index's earnings multiple (using it as a proxy for tech stocks), its stock price could hit $134. That would be a 30% jump from current levels. More upside cannot be ruled out, since Twilio seems to be in a position to further raise its guidance, thanks to the adoption of AI solutions in the cloud communications market. The chart above also suggests that Twilio's earnings growth is likely to accelerate over the next couple of years. That makes the stock a no-brainer buy right now, as it is trading at just 23 times forward earnings. Before you buy stock in Twilio, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Twilio wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $617,181!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $719,371!* Now, it's worth noting Stock Advisor's total average return is 909% — a market-crushing outperformance compared to 163% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 5, 2025 Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Twilio. The Motley Fool has a disclosure policy. 1 Artificial Intelligence (AI) Stock That Could Soar in the Second Half of 2025 and Beyond was originally published by The Motley Fool
Yahoo
08-05-2025
- Business
- Yahoo
Bandwidth Inc (BAND) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and Raised Outlook ...
The company has not publicly disclosed the percentage of sales achieved through its channel partnerships, indicating potential uncertainty in the contribution of this growth strategy. Capital expenditures were higher than the previous year, which could impact free cash flow if not managed carefully. Despite growth, the messaging business is growing beneath larger competitors in the space, indicating potential challenges in gaining market share. Programmable messaging, which accounts for 19% of cloud communications revenue, could be more exposed to macro volatility, particularly in retail and digital engagement sectors. The macroeconomic environment remains volatile, and while Bandwidth Inc ( NASDAQ:BAND ) has built contingency into its projections, there is still uncertainty. Bandwidth Inc ( NASDAQ:BAND )'s Maestro platform is proving to be a strong competitive differentiator, particularly in sectors like financial services, healthcare, and hospitality. The company saw significant traction in its Enterprise Voice business, with more million-dollar-plus annual revenue deals signed than ever before. For the complete transcript of the earnings call, please refer to the full earnings call transcript . Full Year 2025 Revenue Outlook: Raised to a range of $745 to $760 million, reflecting an increased organic growth outlook of 10% at the midpoint. Cash and Securities Balance: $42 million, with no borrowings under the $150 million line of credit. Story continues Q & A Highlights Q: Can you discuss the pipeline for Enterprise Voice and your go-to-market strategy in that category? A: Our pipeline for Enterprise Voice is strong, evidenced by signing more million-dollar-plus annual revenue deals than ever before. We have a direct-to-enterprise sales motion and are expanding partnerships with MSPs and channel partners, which are crucial for major contact center builds. (David Morken, CEO) Q: How are you thinking about the back half of the year, given macroeconomic uncertainties? A: We are encouraged by our first-quarter performance and have raised our full-year guidance. We expect double-digit growth driven by all three market offers. While we are cautious about macro risks, particularly in programmable messaging, our voice business is resilient and less exposed to volatility. (Daryl Raiford, CFO) Q: What is driving the increase in average revenue per customer? A: Over half of our Enterprise Voice customers are using our Maestro platform, leading to increased spend and utilization. This includes AI use cases, orchestration with hybrid contact center deployments, and cross-sell opportunities in messaging. (David Morken, CEO) Q: How are you leveraging partnerships, and what is the contribution from partners versus direct sales? A: We are excited about working with large MSPs, which often bring us into deals earlier and compress deal cycles. Our Maestro platform addresses complexities with pre-integrations, and we see opportunities for expansion in verticals and geographies. The contribution from partners is growing nicely. (David Morken, CEO; John Bell, Chief Product Officer) Q: How is AI serving as a growth driver across your product categories? A: AI voice agents are becoming more effective and accurate, driving growth in all three categories. Maestro and AI Bridge support multiple AI solutions for Enterprise Voice, while Global Voice Plans benefit from intelligent voice experiences. Programmable messaging requires fast response times, which AI facilitates. (David Morken, CEO) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
