8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549 

FORM 8-K 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 24, 2022

Ooma, Inc.

(Exact Name of Registrant as Specified in its Charter) 

Delaware	001-37493	06-1713274
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)

525 Almanor Avenue, Suite 200, Sunnyvale, California 94085

(Address of principal executive offices)

(650) 566-6600

(Registrant’s telephone number, including area code) 

Not applicable

(Former name or former address, if changed since last report.) 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.0001	OOMA	The New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ 

Item 2.02. Results of Operations and Financial Condition

On May 24, 2022, Ooma, Inc. (the “Company”) issued a press release announcing its financial results for the fiscal first quarter ended April 30, 2022. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information set forth in this Item 2.02 (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits

(d)Exhibits.

Exhibit No.	Description
99.1	Press release dated May 24, 2022 titled “Ooma Reports First Quarter Fiscal Year 2023 Financial Results”
104	Cover Page Interactive Data File (formatted as Inline XBRL)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	OOMA, INC.
Date: May 24, 2022	By:	/s/ Shig Hamamatsu
		Shig Hamamatsu
		Chief Financial Officer

EX-99.1

   Exhibit 99.1

Ooma Reports First Quarter Fiscal Year 2023 Financial Results

Sunnyvale, Calif., May 24, 2022 -- Ooma, Inc. (NYSE: OOMA), a smart communications platform for businesses and consumers, today released financial results for the fiscal first quarter ended April 30, 2022.

First Quarter Fiscal 2023 Financial Highlights:

• Revenue: Total revenue was $50.3 million, up 10% year-over-year. Subscription and services revenue increased to $46.7 million from $42.0 million in the first quarter of fiscal 2022, and was 93% of total revenue, primarily driven by the growth of Ooma Business.

• Net Income/Loss: GAAP net loss was $0.8 million, or $0.03 per basic and diluted share, compared to GAAP net loss of $0.9 million, or $0.04 per basic and diluted share, in the first quarter of fiscal 2022. Non-GAAP net income was $3.0 million, or $0.12 per diluted share, compared to non-GAAP net income of $2.8 million, or $0.11 per diluted share in the prior year period.

• Adjusted EBITDA: Adjusted EBITDA was $3.9 million, compared to $3.5 million in the first quarter of fiscal 2022.

For more information about non-GAAP net income and Adjusted EBITDA, see the section below titled "Non-GAAP Financial Measures" and the reconciliation provided in this release.

“Ooma performed well in Q1, achieving revenue growth of 10% year-over-year, to $50.3 million,” said Eric Stang, chief executive officer of Ooma.  “The growth in revenue was primarily driven by Ooma Business which doubled in new user growth versus the prior quarter and achieved the milestone of contributing more than 50% of Ooma’s overall subscription services revenue.  Looking forward, our priorities for fiscal 2023 include extending our leadership serving small business customers through the launch of Ooma Office Pro Plus which enables a higher tier of service, expansion of our sales and marketing reach, increased focus on select vertical markets for Ooma Enterprise, expanding into Europe to serve our largest customer, and execution of the company’s growth plans for AirDial and other 4G/5G solutions.”

Business Outlook:

For the second quarter of fiscal 2023, Ooma expects:

• Total revenue in the range of $51.4 million to $51.9 million.

• GAAP net loss in the range of $1.1 million to $1.5 million and GAAP net loss per share in the range of $0.04 to $0.05.

• Non-GAAP net income in the range of $2.4 million to $2.8 million and non-GAAP net income per share in the range of $0.10 to $0.11.

For the full fiscal year 2023, Ooma expects:

• Total revenue in the range of $210.5 million to $213.5 million.

• GAAP net loss in the range of $4.4 million to $5.9 million, and GAAP net loss per share in the range of $0.18 to $0.24.

• Non-GAAP net income in the range of $9.5 million to $11.0 million, and non-GAAP net income per share in the range of $0.37 to $0.43.

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The following is a reconciliation of GAAP net loss to non-GAAP net income and GAAP basic and diluted net loss per share to non-GAAP diluted net income per share guidance for the fiscal second quarter ending July 31, 2022 and the fiscal year ending January 31, 2023 (in millions, except per share data):

	Projected range
	Three Months Ending		Fiscal Year Ending
	July 31, 2022		January 31, 2023
	(unaudited)
GAAP net loss	($1.1)-($1.5)		($4.4)-($5.9)
Stock-based compensation and related taxes		3.6		14.1
Amortization of intangible assets		0.3		1.3
Non-GAAP net income	$2.4-$2.8		$9.5-$11.0
GAAP net loss per share	($0.04)-($0.05)		($0.18)-($0.24)
Stock-based compensation and related taxes		0.14		0.56
Amortization of intangible assets		0.01		0.05
Non-GAAP net income per share	$0.10-$0.11		$0.37-$0.43
Weighted-average number of shares used in per share amounts:
Basic		24.4		24.5
Diluted		25.0		25.4

Conference Call Information:

Ooma will host a conference call and live webcast for analysts and investors at 5:00 p.m. Eastern time today, May 24, 2022. The news release with the financial results will be accessible from the company's website prior to the conference call.

Parties in the United States and Canada can access the call by dialing +1 (888) 550-5744, using conference ID 4726540. International parties can access the call by dialing +1 (646) 960-0223, using conference ID 4726540.

The webcast will be accessible on the Events and Presentations page of Ooma’s investor relations website, https://investors.ooma.com for a period of at least one year. A telephonic replay of the conference call will be available from 8:00 p.m. Eastern time on May 24, 2022 until 11:59 p.m. Eastern time on Tuesday May 31, 2022. To access the replay, parties in the United States and Canada should call +1 (800) 770-2030 and use conference code 4726540. International parties should call +1 (647) 362-9199 and use conference code 4726540.  

Non-GAAP Financial Measures

In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), this press release and the accompanying tables contain certain non-GAAP financial measures, including: non-GAAP net income, non-GAAP net income per share, non-GAAP gross profit and gross margin, non-GAAP operating income, and Adjusted EBITDA. Adjusted EBITDA represents the net income before interest and other income, income tax (if any), depreciation and amortization of capital expenditures, amortization of intangible assets, and stock-based compensation and related taxes. Other non-GAAP financial measures exclude stock-based compensation expense and related taxes and amortization of intangible assets.

These non-GAAP financial measures are presented to provide investors with additional information regarding our financial results and core business operations. Ooma considers these non-GAAP financial measures to be useful measures of the operating performance of the company, because they contain adjustments for unusual events or factors that do not directly affect what management considers to be Ooma's core operating performance and are used by the company's management for that purpose.  Management also believes that these non-GAAP financial measures allow for a better evaluation of the company's performance by facilitating a meaningful comparison of the company's core operating results in a given period to those in prior and future periods. In addition, investors often use similar measures to evaluate the operating performance of a company.

Non-GAAP financial measures are presented for supplemental informational purposes only to aid an understanding of the company's operating results. The non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP and may be different from non-GAAP financial measures presented by other companies.  A limitation of the non-GAAP financial measures presented is that the adjustments relate to items that the company generally expects to continue to recognize. The adjustment of these items should not be construed as an inference that the adjusted gains or expenses are unusual, infrequent or non-recurring. Therefore, both GAAP financial measures of Ooma's financial performance and the respective non-GAAP measures should be considered together.  Please see the reconciliation of non-GAAP financial measures to the most directly comparable GAAP measure in the tables below.

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Disclosure Information

Ooma uses the investor relations section on its website as a means of complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor Ooma's investor relations website in addition to following Ooma's press releases, Securities and Exchange Commission (“SEC”) filings, and public conference calls and webcasts.

Legal Notice Regarding Forward-Looking Statements

This press release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995. In particular, the financial projections under “Business Outlook” and the statements contained in the quotations of our Chief Executive Officer regarding expectations and priorities of management constitute forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical facts and generally contain words such as "believes”, "expects”, "may”, "will”, "should”, "seeks”, "approximately”, "intends”, "plans”, "estimates”, "anticipates”, and other expressions that are predictions of or indicate future events.  Although the forward-looking statements contained in this press release are based upon information available at the time the statements are made and reflect management's good faith beliefs, forward-looking statements inherently involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to differ materially from anticipated future results. Important factors that could cause actual results to differ materially from expectations include, among others: our inability to attract new customers on a cost-effective basis; our inability to retain customers; our inability to realize expected returns from our investments made in connection with our international expansion efforts and development of new product features; failure to realize AirDial opportunities; intense competition; loss of key retailers and reseller partnerships; our reliance on vendors to manufacture the on-premise appliances and end-point devices we sell; our reliance on third parties for our network connectivity and co-location facilities; our reliance on third parties for some of our software development, quality assurance and operations; our reliance on third parties to provide the majority of our customer service and support representatives; and interruptions to our service. You should not place undue reliance on these forward-looking statements, which speak only as of the date hereof. We do not undertake to update or revise any forward-looking statements after they are made, whether as a result of new information, future events, or otherwise, except as required by applicable law.

The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings which we make with the SEC from time to time, including the risk factors contained in our Annual Report on Form 10-K for the year ended January 31, 2022, filed with the SEC on April 8, 2022. The forward-looking statements in this press release are based on information available to Ooma as of the date hereof, and Ooma disclaims any obligation to update any forward-looking statements, except as required by law.

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About Ooma, Inc.

Ooma (NYSE: OOMA) creates powerful connected experiences for businesses and consumers, delivered from its smart cloud-based SaaS platform. For businesses of all sizes, Ooma provides advanced voice and collaboration features including messaging, intelligent virtual attendants, and video conferencing to help them run more efficiently. For consumers, Ooma’s residential phone service provides PureVoice HD voice quality, advanced functionality and integration with mobile devices. Learn more at www.ooma.comorwww.ooma.ca in Canada.

INVESTOR CONTACT:

Matthew S. Robison

Director of IR and Corporate Development

Ooma, Inc.

ir@ooma.com

(650) 300-1480

MEDIA CONTACT:

Mike Langberg

Director of Corporate Communications

Ooma, Inc.

press@ooma.com

(650) 566-6693

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OOMA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, amounts in thousands)

	April 30,			January 31,
	2022			2022
Assets
Current assets:
Cash and cash equivalents	$	21,653		$	19,667
Short-term investments		10,127			11,613
Accounts receivable, net		5,622			7,310
Inventories		14,356			13,841
Other current assets		16,077			13,598
Total current assets		67,835			66,029
Property and equipment, net		6,992			6,481
Operating lease right-of-use assets		13,995			14,396
Intangible assets, net		3,881			4,208
Goodwill		4,264			4,264
Other assets		14,254			13,875
Total assets	$	111,221		$	109,253
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	11,946		$	7,507
Accrued expenses and other current liabilities		17,198			22,823
Deferred revenue		16,392			16,600
Total current liabilities		45,536			46,930
Long-term operating lease liabilities		10,833			11,194
Other liabilities		58			73
Total liabilities		56,427			58,197
Stockholders' equity:
Common stock		5			4
Additional paid-in capital		184,402			179,860
Accumulated other comprehensive loss		(59	)		(20	)
Accumulated deficit		(129,554	)		(128,788	)
Total stockholders' equity		54,794			51,056
Total liabilities and stockholders' equity	$	111,221		$	109,253

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OOMA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, amounts in thousands, except share and per share data)

	Three Months Ended
	April 30,			April 30,
		2022			2021
Revenue:
Subscription and services	$	46,723		$	41,965
Product and other		3,614			3,607
Total revenue		50,337			45,572
Cost of revenue:
Subscription and services		13,209			12,339
Product and other		5,176			5,151
Total cost of revenue		18,385			17,490
Gross profit		31,952			28,082
Operating expenses:
Sales and marketing		16,151			14,016
Research and development		10,498			9,307
General and administrative		6,062			5,725
Total operating expenses		32,711			29,048
Loss from operations		(759	)		(966	)
Interest and other income, net		33			79
Loss before income taxes		(726	)		(887	)
Income tax provision		(40	)		—
Net loss	$	(766	)	$	(887	)
Net loss per share of common stock:
Basic and diluted	$	(0.03	)	$	(0.04	)
Weighted-average shares of common stock outstanding:
Basic and diluted		24,116,144			23,053,512

6

OOMA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, amounts in thousands)

	Three Months Ended
	April 30,			April 30,
		2022			2021
Cash flows from operating activities:
Net loss	$	(766	)	$	(887	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Stock-based compensation expense		3,336			3,194
Depreciation and amortization of capital expenditures		850			773
Amortization of intangible assets		326			326
Amortization of operating lease right-of-use assets		717			818
Other		15			10
Changes in operating assets and liabilities:
Accounts receivable, net		1,688			1,162
Inventories and deferred inventory costs		(493	)		(1,206	)
Prepaid expenses and other assets		(2,681	)		(970	)
Accounts payable, accrued expenses and other liabilities		(1,950	)		(2,470	)
Deferred revenue		(223	)		(326	)
Net cash provided by operating activities		819			424
Cash flows from investing activities:
Proceeds from maturities and sales of short-term investments		4,800			6,900
Purchases of short-term investments		(3,380	)		(6,043	)
Capital expenditures		(1,459	)		(665	)
Net cash (used in) provided by investing activities		(39	)		192
Cash flows from financing activities:
Proceeds from issuance of common stock		1,554			1,469
Shares repurchased for tax withholdings on vesting of restricted stock units		(348	)		(485	)
Net cash provided by financing activities		1,206			984
Net increase in cash and cash equivalents		1,986			1,600
Cash and cash equivalents at beginning of period		19,667			17,298
Cash and cash equivalents at end of period	$	21,653		$	18,898

7

OOMA, INC.

Reconciliation of Non-GAAP Financial Measures

(Unaudited, amounts in thousands, except percentages, share and per share data)

	Three Months Ended
	April 30,			April 30,
		2022			2021
Revenue	$	50,337		$	45,572
GAAP gross profit	$	31,952		$	28,082
Stock-based compensation and related taxes		248			289
Amortization of intangible assets		73			73
Non-GAAP gross profit	$	32,273		$	28,444
Gross margin on a GAAP basis		63	%		62	%
Gross margin on a Non-GAAP basis		64	%		62	%
GAAP operating loss	$	(759	)	$	(966	)
Stock-based compensation and related taxes		3,440			3,325
Amortization of intangible assets		326			326
Non-GAAP operating income	$	3,007		$	2,685
GAAP net loss	$	(766	)	$	(887	)
Stock-based compensation and related taxes		3,440			3,325
Amortization of intangible assets		326			326
Non-GAAP net income	$	3,000		$	2,764
GAAP basic and diluted net loss per share	$	(0.03	)	$	(0.04	)
Stock-based compensation and related taxes		0.14			0.15
Amortization of intangible assets		0.01			0.01
Non-GAAP net income per basic share	$	0.12		$	0.12
Non-GAAP net income per diluted share	$	0.12		$	0.11
GAAP weighted-average basic and diluted shares		24,116,144			23,053,512
Non-GAAP weighted-average diluted shares		24,909,140			24,243,472
GAAP net loss	$	(766	)	$	(887	)
Reconciling items:
Interest and other income, net		(33	)		(79	)
Income tax provision		40			—
Depreciation and amortization of capital expenditures		850			773
Amortization of intangible assets		326			326
Stock-based compensation and related taxes		3,440			3,325
Adjusted EBITDA	$	3,857		$	3,458

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XML

Document and Entity Information	May 24, 2022
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	May 24, 2022
Entity Registrant Name	Ooma, Inc
Entity Central Index Key	0001327688
Entity Emerging Growth Company	false
Entity File Number	001-37493
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	06-1713274
Entity Address, Address Line One	525 Almanor Avenue
Entity Address, Address Line Two	Suite 200
Entity Address, City or Town	Sunnyvale
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94085
City Area Code	650
Local Phone Number	566-6600
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Security 12b Title	Common Stock, par value $0.0001
Trading Symbol	OOMA
Security Exchange Name	NYSE