Ooma Inc Q4 2025 Earnings Call Transcript

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

Question: Alinda Li - William Blair - Analyst : Awesome, thanks. Hey, this is Alinda Li here for Arjun. Eric, a question for you, what are you seeing in the SMB environment? Has it faded a little bit after the election?

Question: Alinda Li - William Blair - Analyst : Awesome. And another question, can you give us more color on how you are thinking about assisting resale partners and driving sales, but also the strategic approach on adding new resellers every quarter in fiscal '26. Thanks.

Question: Alinda Li - William Blair - Analyst : Thank you.

Question: Brian Kinstlinger - Alliance Global Partners - Analyst : Great, thanks so much. So for someone like Marriott, how many POTS lines do they have and what's been communicated in terms of their plans and maybe time frame for replacement? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 04, 2025 / 10:00PM, OOMA.N - Q4 2025 Ooma Inc Earnings Call

Question: Brian Kinstlinger - Alliance Global Partners - Analyst : Okay, and then in terms of your large cable partner for POTS replacement, I think last quarter you mentioned you would know more in March in regard to the ramp from either that partner or the market in general from other partners. Can you help us understand what is limited visibility, if I'm understanding you correctly, and why do you think customers might not be motivated to move much more quickly?

Question: Brian Kinstlinger - Alliance Global Partners - Analyst : Got it. The last question I have, you mentioned in the first quarter some more churns expected from IWG. Will we continue to see after the first quarter more churn? Do you think it's stable at that point? Just give us the short to medium term trajectory after the first quarter of how it's been communicated to you or what you expect.

Question: Brian Kinstlinger - Alliance Global Partners - Analyst : Okay, thank you.

Question: Josh Nichols - B. Riley Securities, Inc. - Analyst : Yeah, thanks for taking my question. I'm just curious what you're seeing a little bit more in the SMB market if you were to just like strip out what your assumptions are for AirDial overall if you could provide a little bit of a context. I know you said you were being pretty conservative on the AirDial recurring revenue piece of the business. But if you could provide a little bit more granularity, that would be helpful.

Question: Josh Nichols - B. Riley Securities, Inc. - Analyst : Thanks, understood. And then just taking a step back, well, I know you're not providing like formal guidance for anything like longer term, given that you have a little bit of churn headwinds with your largest customer and are being a little bit conservative about some of these like new AirDial roll out opportunities, I guess like one fair to say that you would hope to see the revenue growth, particularly on the recurring piece start to REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 04, 2025 / 10:00PM, OOMA.N - Q4 2025 Ooma Inc Earnings Call accelerate more meaningfully next year and then longer term you talked about the focus on increasing profitability nicely but the margin expansion. Do you can -- expect to continue marching along that path beyond this year?

Question: Josh Nichols - B. Riley Securities, Inc. - Analyst : Thanks, Eric.

Question: Max Michaelis - Lake Street Capital Markets - Analyst : Hey guys, thanks for taking my question. It's good to hear that you guys are on track. With that top tier cable company, sounds like March is still in play. Can you remind me, are we in conversations with any other of the top national cable companies around the United States?

Question: Max Michaelis - Lake Street Capital Markets - Analyst : Alrighty and then we look at the business segment. I believe you said 5% to 6% growth in 2026 or fiscal year '26, that is. I mean, help me think about first half and second half maybe are we low single digits first half, maybe double digits second half, or just mid-single digits across the board. I guess kind of help me out there how this -- how that should spread out throughout the year. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 04, 2025 / 10:00PM, OOMA.N - Q4 2025 Ooma Inc Earnings Call

Question: Max Michaelis - Lake Street Capital Markets - Analyst : Okay, that makes sense thank you.

Question: Matthew Harrigan - The Benchmark Company - Analyst : Thank you. I think when you initially announced the 2,600 Hz deal, you pointed out that there were a number of aspects of their business that were almost completely unmonetized and I know it would have to be a gradual push over time. When you look at the growth there, is that more new customer acquisition? Is it broadening? The offering to a particular customer or you -- or is there really kind of the noble opportunities to monetize. What was kind of open source -- before, and then secondly, presumably the incremental growth on, your top new product is going to be higher this year than last year, and you've got some 2,600 Hz growth on top of that. So does that imply you're seeing a slowdown or at least a plateauing in the office side on the S&B side, maybe out of caution on the economy. I know some other calls you talked a fair bit about caution on the economy and clearly, a lot of the other names I follow, some of them are not in your area, are really expressing a lot of concerns over the economy right now. Thanks.

Question: Matthew Harrigan - The Benchmark Company - Analyst : And then on the Frost & Sullivan, commentary on the accelerating need for the POTS replacement, you the awareness, really kind of the predatory pricing on the part, on some of the copper lines. If you're being cautious and moderating your pace, I mean, that implies the market's not making the necessary adjustments that fast or there's someone else, there, what, I mean, you have to have some competition. I mean, where are you seeing alternatives to your offering and I know you're not pushing hard in Europe or certainly not Asia right now, but you've got some issues in those markets as well. I mean, how do If you're in Germany or the UK and someone has the same problem, how are companies addressing it, or are they not addressing it? Is there a smorgasbord of solutions over there, or in other words, it feels like that your pace of growth there may be a little bit inconsistent with the dynamics of the market that, Frost & Sullivan and yourselves have spoken about.

Question: Matthew Harrigan - The Benchmark Company - Analyst : And I know you can't be too definitive, but I would assume that Verizon will look at Frontier's best practices when they assimilate the acquisition.

Question: Matthew Harrigan - The Benchmark Company - Analyst : Well, you have a lot of nice problems with AirDial. Thanks, Eric. Bye.