Ooma Inc at Needham Growth Conference (Virtual) Transcript

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

Question: Ryan Koontz - Needham & Company - Analyst : Yes, great. So let me just start and taking a step back, talk about some of the key accomplishments in '21, kind of the broad trends you saw over the last 12 months and some of the key milestones that your company saw as the year progressed.

Question: Ryan Koontz - Needham & Company - Analyst : Great. So you mentioned this AirDial. Can you tell us a bit about that announcement and what's entailed in that?

Question: Ryan Koontz - Needham & Company - Analyst : That's great. Is it Wi-Fi inside the facility or how do you transport the --?

Question: Ryan Koontz - Needham & Company - Analyst : That's great. And what channels are you going to use to sell that product? Is it traditional Ooma channels or you have other alternative ways to get to market?

Question: Ryan Koontz - Needham & Company - Analyst : That's great. It certainly rings true to my heart. I've worked in the telecom side of the business dating back to the '90s. And I remember working on projects where you were dreaming about how to replace the classified infrastructure. So that's really, really cool. How about the Company in terms of executing through the pandemic? I mean, what's that been like? What changes have you had to make inside the Company? And how do you feel like the Company has executed through the pandemic?

Question: Ryan Koontz - Needham & Company - Analyst : I know.

Question: Ryan Koontz - Needham & Company - Analyst : Yes, Shig, how do you feel from your seat the Company executed through the last of couple years, but especially the past year?

Question: Ryan Koontz - Needham & Company - Analyst : Great. Yes, I would think that your POTS line product for these kind of -- some of industrial purposes, right, for alarms and things that that could open up some new customer relationships as well in a lot of cases for jobs out.

Question: Ryan Koontz - Needham & Company - Analyst : Great. So I think you talked about your largest customer here with 25,000 users. Can you tell us about that opportunity, what that looks like? It sounds like is that your international opportunity as well working with them?

Question: Ryan Koontz - Needham & Company - Analyst : Great. No, European opportunity, I think is tremendous. I think we're seeing really strong pickup in UCaaS sales in Europe. I think the incumbent telcos over there are probably even more antiquated than our telcos here in the US. So I think it's a ripe opportunity. And there's been -- I think there's also been a bigger kind of defection from POTS lines over to wireless there and probably an opportunity to sell back into lower cost landline phones.

Question: Ryan Koontz - Needham & Company - Analyst : Yes. And so this ARPU growth you're talking about sounds like you've got a lot of packages, you're upselling your feature set there. I mean, do you think that the ARPU uplift is sustainable into the next year or two? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 10, 2022 / 10:00PM, OOMA.N - Ooma Inc at Needham Growth Conference (Virtual)

Question: Ryan Koontz - Needham & Company - Analyst : What are some of the upsell features there in Pro Plus you're looking at?

Question: Ryan Koontz - Needham & Company - Analyst : It is easy to use, I can tell you. I haven't told you this before, but I'm a customer of Ooma. I've been one for probably six, seven years, and it just works.

Question: Ryan Koontz - Needham & Company - Analyst : That's awesome. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 10, 2022 / 10:00PM, OOMA.N - Ooma Inc at Needham Growth Conference (Virtual)

Question: Ryan Koontz - Needham & Company - Analyst : Yes, I think that's how I got marketed, too, was word of mouth.

Question: Ryan Koontz - Needham & Company - Analyst : Yes, prototype. Well, cool. So your business subscription revenue, Shig, can you kind of walk us through how that's been growing, how it's progressed over the years, and maybe shed some light on where you were a few years ago and where you are now and where you're headed with regards to that -- the mix of business reps?

Question: Ryan Koontz - Needham & Company - Analyst : Yes, very much so. Maybe, Shig, if you can reflect on what you've seen on the supply chain over the past year for those aren't familiar with what you've said in the past and how it's affected the business. It sounds like this new product had some supply ramp challenges like everyone else in the world. But if you look at the bigger picture of supply chain, how that's affected the business?

Question: Ryan Koontz - Needham & Company - Analyst : No, you go ahead.

Question: Ryan Koontz - Needham & Company - Analyst : Why not?

Question: Ryan Koontz - Needham & Company - Analyst : Great. And do you see the situation improving in the next two, three, four quarters? What kind of relief do you see in this situation?

Question: Ryan Koontz - Needham & Company - Analyst : Yes, got it. And as far as '22, in terms of areas of the business you're investing in right now, it sounds like channel is an important one and some of these new product features. Are there other areas of the business you would highlight as strategic shifts or continued investment for '22 that are really important to hit your numbers as you exit '22?

Question: Ryan Koontz - Needham & Company - Analyst : Yes. Makes sense. How about the competitive landscape? Are you seeing much of a change there? I mean, obviously, the shift to cloud is -- the cloud is out of the barn. I mean, everyone seems to be run in that direction. And you've got a lot of guys trying to move up market in your space, trying to move up into enterprise. But what's the competitive environment like now and what changes have you seen from your perspective?

Question: Ryan Koontz - Needham & Company - Analyst : There's certainly room for price leaders in price-sensitive markets. And that's what it sounds like you guys are positioning.

Question: Ryan Koontz - Needham & Company - Analyst : Great. You mentioned hospitality as a vertical you've had some real success. What were some of the keys to that success? Do you have a great channel partner that brought you into that market? Did you develop certain features for that? What was -- tell us about that success story.

Question: Ryan Koontz - Needham & Company - Analyst : Have you looked much at like franchise-type models where your strength in SMB and ability to build out small offices, I guess, would duplicate that across hundreds of different sites and things like that?

Question: Ryan Koontz - Needham & Company - Analyst : Great. Super. Well, I really appreciate you both joining us. Did you have any other closing remarks you wanted to make before we finish up?

Question: Ryan Koontz - Needham & Company - Analyst : Great. Super. Shig, anything you wanted to add?

Question: Ryan Koontz - Needham & Company - Analyst : Great. Well, thanks so much for joining.