Ooma Inc Management Discussion of the FluentStream Acquisition Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Alinda Li - William Blair Capital Partners - Analyst : Thank you for taking my question. First question is, can you elaborate more on how Ooma can leverage FluentStream's channel partner program to accelerate its growth?

Question: Alinda Li - William Blair Capital Partners - Analyst : Got it. That's helpful. And you mentioned optimizing sales and marketing across Ooma's platform also with FluentStream. Can you give more color in terms of what that could look like after the acquisition here?

Question: Josh Nichols - B. Riley Securities Holdings Inc - Analyst : Yeah. Thanks for taking my question. Just a little bit curious if you could elaborate a little bit on how you came about this opportunity. Was this something that they were going through a competitive bid process or something that you kind of found out about through your industry relationships and context overall. So a little bit of background would be helpful maybe.

Question: Josh Nichols - B. Riley Securities Holdings Inc - Analyst : Thanks. And then just one follow-up for me. One, I mean, clearly, they got pretty attractive EBITDA margins, a lot less on sales and marketing as you kind of touched on. Is the gross margin profile comparable given that most of it's recurring? And is there opportunities for you guys to maybe REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 03, 2025 / 10:00PM, OOMA.N - Ooma Inc Management Discussion of the FluentStream Acquisition take their distribution relationships and maybe with that, save a little bit on your sales and marketing over time by using those relationships instead of just internal and online marketing that you do today more so?

Question: Brian Kinstlinger - AGP / Alliance Global Partners Corp - Analyst : Great, thanks so much. I wanted to follow up on the channel partner question. You mentioned a strong base of partners, but you also highlighted in the PR and your comments that revenue growth is mostly M&A and not organic growth, at least that's the implication. Maybe you can share what organic growth has been for the last year or two? And how do you evaluate the effectiveness of these channel partners -- of your channel partners?

Question: Brian Kinstlinger - AGP / Alliance Global Partners Corp - Analyst : How -- I'm just curious, how are they able to complete this rollout strategy? Were they giving pieces of equity? Were they using debt? Did you have to also -- are you taking on any debt or any payables as a result?

Question: Brian Kinstlinger - AGP / Alliance Global Partners Corp - Analyst : Got it. And your net is still at $45 million?

Question: Brian Kinstlinger - AGP / Alliance Global Partners Corp - Analyst : Well, I would think so, too. I mean you buy something at five times and you trade at 10 to 11 makes a lot of sense. So the -- are there a number of verticals, they're mostly generating revenue from? Is there any one or two that they've been -- I take a look at their website, but is there one or two that generate the majority? And is it all US-based revenue?

Question: Brian Kinstlinger - AGP / Alliance Global Partners Corp - Analyst : Yeah, last question, I may have missed it, you may have commented on this. Based on their margins, I assume there is no real hardware component where you have that loss leader selling the hardware before you sell the service. Is that right? Or do they also have a hardware component? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 03, 2025 / 10:00PM, OOMA.N - Ooma Inc Management Discussion of the FluentStream Acquisition

Question: Josh Nichols - B. Riley Securities Holdings Inc - Analyst : Yeah, thanks. Just one follow-up question. I agree. I think the industry is ripe for some consolidation. People have been waiting for that for some time, and it looks like an attractive purchase price multiple. One question I did want to ask, whenever you see these acquisitions, ultimately, longer term, there's some synergy opportunities with moving everyone over to the Ooma platform. Presumably, that would be over a longer-term horizon since most of these customers are on like three-year contracts. I'm not sure what the expiration time line looks like, but ultimately, is the plan to kind of integrate these customers onto the Ooma Business platform over time and that way you don't have to run redundant platforms at some point in the future?

Question: Josh Nichols - B. Riley Securities Holdings Inc - Analyst : Makes sense. Appreciate that.

Question: Eric Martinuzzi - Lake Street Capital Markets LLC - Analyst : Yeah. I apologize if you went over this, I jumped on late, but the $24 million to $25 million in revenue, is that a -- is there -- can you tell us anything about the growth rate over the prior 12 months?

Question: Eric Martinuzzi - Lake Street Capital Markets LLC - Analyst : Okay. And then it looks like they're using AWS infrastructure. Is there anything cloud infrastructure-wise that there's the potential to leverage the Ooma infrastructure?

Question: Brian Kinstlinger - AGP / Alliance Global Partners Corp - Analyst : Great. Just one follow-up. I thought I heard what you say is there aren't significant revenue synergies other than potentially better economics with vendors. But to get to this 20% EBITDA margin, are there cost synergies assumed in that, and/or is there potential, if not, for some cost synergies as well?

Question: Brian Kinstlinger - AGP / Alliance Global Partners Corp - Analyst : Mostly. Just to be sure, I mean, oftentimes, there's cost-cutting opportunities, right? Duplicate staff on the finance side or founders aren't going to stay. Is there any cost coming out that creates this 20% EBITDA margin, or are they already running at 20% EBITDA margin without you taking out a penny of their expense structure?

Question: Brian Kinstlinger - AGP / Alliance Global Partners Corp - Analyst : Thank you so much.