NYSE$OOMA

Ooma Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Ooma's revenue increased by 12% year-over-year, reaching $52.7 million, and net income was $0.3 million.

Ooma reported strong Q2 results with a 12% increase in revenue year-over-year, reaching $52.7 million. The company also saw improved gross margins and solid non-GAAP net income. Ooma acquired Junction Networks Inc., also known as OnSIP, which is expected to add approximately 50,000 new business users and be accretive starting in Q4 of this year.

  • Total revenue was $52.7 million, up 12% year-over-year.
  • Subscription and services revenue increased to $48.0 million, representing 91% of total revenue.
  • GAAP net income was $0.3 million, or $0.01 per basic and diluted share.
  • Adjusted EBITDA was $4.0 million.

Headline financials

Total Revenue

$52.7M

Previous: $47.1M+11.9%
EPS (adj)

$0.12

Previous: $0.13-7.7%
Adjusted EBITDA

$4M

Previous: $4.1M-2.4%
Capital Expenditures

-$2.81M

Previous: -$1.74M-61.4%
Free Cash Flow

-$2.47M

Previous: -$2.18M-13.4%
Net Income

$338K

Previous: -$439K+177.0%
Operating Income

-$1.65M

Previous: -$458K-259.4%
Gross Profit

$33.8M

Previous: $29.3M+15.4%
Cash & Equivalents

$16.2M

Previous: $20.1M-19.3%
Total Assets

$123M

Previous: $103M+19.2%
Stock-Based Comp

$3.51M

Previous: $3.32M+5.5%

Revenue & EPS history

Ooma · Revenue · Quarterly

$52.7M

Q2 2023+11.9%vs Q2 2022
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Ooma · $52.7M total across 2 segments · Q2 2023

  • Subscription and services
    $48M+10.2%
  • Product and other
    $4.66M+32.3%

Forward guidance

Ooma expects total revenue to be in the range of $56.0 million to $56.5 million, GAAP net loss in the range of $1.6 million to $2.1 million, and non-GAAP net income in the range of $2.7 million to $3.2 million for the third quarter of fiscal year 2023. For the full fiscal year 2023, Ooma expects total revenue in the range of $215.5 million to $218.5 million, GAAP net loss in the range of $3.3 million to $4.3 million, and non-GAAP net income in the range of $11.4 million to $12.4 million.

Tailwinds

  • Total revenue in the range of $56.0 million to $56.5 million.
  • Non-GAAP net income in the range of $2.7 million to $3.2 million.
  • Non-GAAP net income per share in the range of $0.11 to $0.13.
  • Total revenue in the range of $215.5 million to $218.5 million.
  • Non-GAAP net income in the range of $11.4 million to $12.4 million.

Headwinds

  • GAAP net loss in the range of $1.6 million to $2.1 million
  • GAAP net loss per share in the range of $0.06 to $0.08.
  • GAAP net loss in the range of $3.3 million to $4.3 million.
  • GAAP net loss per share in the range of $0.13 to $0.17.
  • Stock-based compensation and related taxes
  • Amortization of intangible assets and acquisition-related costs

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+3.0%

Avg return

Earnings day

+2.4%

Avg return

5 days after

+0.6%

Avg return

30 days after

77%

33 / 43 earnings

Positive

+21.3%

Q2 2025

Best reaction

-29.2%

Q1 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027
Q4 2026+11.6%+9.6%+13.2%
Q3 2026-15.3%-4.6%-7.5%
Q2 2026+7.6%+5.6%+2.0%
Q1 2026+1.3%+0.7%-6.1%
Q4 2025+2.3%+0.1%-11.8%
Q3 2025+7.5%+2.0%-4.7%
Q2 2025+21.3%+15.0%+25.8%
Q1 2025+12.4%+13.5%+25.1%
Q4 2024-12.4%-6.1%-17.6%
Q3 2024-9.5%-13.2%-11.7%
Q2 2024+3.2%+1.3%-2.7%
Q1 2024-5.4%-3.6%+7.0%
Q4 2023+0.8%-0.9%-4.3%
Q3 2023+0.2%-4.3%-11.3%
Q2 2023+4.3%+8.8%+1.7%
Q1 2023+0.6%+4.0%-12.2%
Q4 2022-11.7%-12.2%-6.8%
Q3 2022+0.1%+4.2%+8.7%
Q2 2022+18.4%+11.9%-0.4%
Q1 2022+15.7%+18.3%+28.0%
Q4 2021+2.8%+1.4%+0.3%
Q3 2021+10.2%+5.1%-1.4%
Q2 2021+1.6%-5.8%-15.2%
Q1 2021+14.4%+0.7%+21.1%
Q4 2020+11.4%+6.2%-19.3%
Q3 2020+8.5%+20.9%+24.8%
Q2 2020+7.7%+3.6%-13.5%
Q1 2020-16.9%-20.5%-23.3%
Q4 2019-1.4%-4.2%-19.2%
Q3 2019+13.8%+9.0%+1.4%
Q2 2019+3.8%+0.6%+1.9%
Q1 2019+0.0%-3.6%+0.4%
Q4 2018+7.1%+5.3%+3.6%
Q3 2018+16.5%+13.5%+20.5%
Q2 2018+12.7%+18.5%+24.2%
Q1 2018-29.2%-25.3%-28.8%
Q4 2017+3.2%-4.7%+12.1%
Q3 2017+2.2%-2.2%-3.3%
Q2 2017+2.0%+12.1%+2.9%
Q1 2017+8.7%+14.7%+20.3%
Q4 2016+4.4%
Q3 2016-9.0%
Q2 2016+1.4%
Q1 2016
Q4 2015
Q3 2014
Q2 2014
Q1 2014
Q4 2013

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