The following is a summary of the Ooma, Inc. (OOMA) Q4 2024 Earnings Call Transcript:
Financial Performance:
Ooma reported Q4 revenue of $61.7 million and non-GAAP net income of $3.5 million.
Adjusted EBITDA was $5.2 million and cash flow from operations was $5.5 million.
For FY24, revenue was $236.7 million, non-GAAP net income was $15.4 million and adjusted EBITDA was $19.8 million.
Year-over-year, revenue grew by 10%, non-GAAP net income by 13%, adjusted EBITDA by 14%, and cash flow from operations by 40%.
Q4 revenue increased by 9% year-over-year, driven by the growth of Ooma Business and the addition of 2,600 Hertz.
Non-GAAP net income for Q4 exceeded guidance at $3.5 million and $15.4 million for the full year.
The company generated $12.3 million of operating cash flow and $6.1 million of free cash flow, up 40% and 69% respectively year-over-year.
The outstanding debt balance was reduced to $14 million.
Fiscal year 2025 total revenue is expected to be in the range of $250 million to $253 million, and non-GAAP net income to be in the range of $14 million to $15 million.
Business Progress:
Ooma focused on feature expansion, customer growth, and the development of new resale partnerships across all product lines, especially Ooma Office and Ooma Enterprise.
Targeted initiatives include new integrations, expanding call center capabilities, and incorporating 5G performance into Ooma Connect.
They have plans for further international expansion and to enhance the 2,600 Hertz wholesale platform by further integrating Ooma's technology and applications.
A concerted effort is being made to increase sales and marketing activities across the business and grow the community of resale partners.
Ooma has been investing in direct sales for AirDial to increase market awareness.
Despite competition and challenges in the market, the firm remains confident in meeting their objectives due to superior product quality.
Progress was made with the additions of AirDial and 2,600 Hertz to their growth outlook in FY24.
Q4 saw higher tier services increase with 59% of new Office users opting for them, up from 52% in the prior year quarter.
The company plans to continue the focus on debt pay down in fiscal year 2025, which will result in lower year-over-year interest income by approximately $1 million.
More details: Ooma IR
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