Ooma Inc. (OOMA) reports earnings

The report was filed on April 1, 2025

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Ooma Inc. (OOMA+0.08%) has submitted its 10-K filing for the fiscal year ended January 31, 2025.

The filing reports total revenue of $256.9 million, an 8% increase from the previous year, driven by growth in Ooma Business and the acquisition of 2600Hz. Subscription and services revenue from Ooma Business grew by 13% year-over-year.

Cost of subscription and services revenue increased by 12% to $71.2 million, primarily due to higher infrastructure costs and personnel expenses. Product and other revenue increased by 20% to $18.2 million, attributed to increased sales of AirDial units and accessories.

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Total gross margin was 61%, a slight decrease from 62% in the previous year. The decrease is attributed to the costs associated with scaling operations and higher component costs.

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Operating expenses totaled $163.0 million, an 8% increase from the previous year. This includes a 5% increase in sales and marketing expenses, a 9% increase in research and development expenses, and a 13% increase in general and administrative expenses.

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The company reported a net loss of $6.9 million for the fiscal year, compared to a net loss of $0.8 million in the previous year. The previous year's net loss included a $3.1 million tax benefit from the release of a valuation allowance.

Adjusted EBITDA was $23.3 million, up from $19.8 million in the prior year, representing 9% of total revenue. Cash flow from operating activities was $26.6 million, compared to $12.3 million in the previous year.

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As of January 31, 2025, Ooma had total cash and cash equivalents of $17.9 million and no outstanding debt, compared to $16.0 million in debt at the end of the previous year.

The company continues to focus on expanding its user base, particularly in Ooma Business, and plans to invest in sales and marketing to drive growth. Ooma also aims to enhance its platforms and develop new connected services and products.

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This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Ooma Inc. annual 10-K report dated April 1, 2025. To report an error, please email earnings@qz.com.