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Ooma Inc. (OOMA+1.25%) has submitted its 10-Q filing for the quarterly period ended October 31, 2024.
The filing reports total revenue of $65.1 million for the quarter, reflecting a 9% increase compared to $59.9 million in the same quarter of the previous year. This growth was primarily driven by Ooma Business, which accounted for approximately 62% of total revenue.
Subscription and services revenue increased by 8% to $60.1 million, while product and other revenue rose by 26% to $5.0 million. The increase in product revenue was attributed to higher shipments of Ooma AirDial units and sales of accessories to Ooma Enterprise customers.
The company's gross profit for the quarter was $39.3 million, up from $36.9 million in the previous year, with a gross margin of 60%. Subscription and services gross margin decreased slightly to 70% from 71% in the prior year.
Operating expenses for the quarter totaled $41.6 million, an increase from $38.0 million in the prior year. This was due to higher personnel-related costs and increased research and development expenses.
Ooma reported a net loss of $2.4 million for the quarter, compared to a net income of $2.3 million in the previous year. The loss was attributed to continued investments in operations and the absence of a prior year income tax benefit.
Cash and cash equivalents were $17.1 million as of October 31, 2024, compared to $17.5 million as of January 31, 2024. The company had total debt of $3.0 million, down from $16.0 million at the beginning of the fiscal year.
Ooma's adjusted EBITDA for the quarter was $5.7 million, compared to $5.0 million in the previous year. The company continues to focus on expanding its customer base and enhancing its service offerings.
The filing also highlights Ooma's acquisition of 2600Hz, a provider of business communications applications, for approximately $32.2 million. The acquisition is expected to enhance Ooma's business communications solutions.
Ooma's management discusses the company's strategy and market conditions, noting the competitive landscape and regulatory environment. The company remains focused on growth and operational efficiency.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Ooma Inc. quarterly 10-Q report dated December 10, 2024. To report an error, please email earnings@qz.com.