GICS Sector : Communication Services
Ooma, Inc.provides communications services and related technologies for businesses and consumers in the United States and Canada.The company's products and services include Ooma Office, a cloud-based multi-user communications system for small and medium-sized businesses; Ooma Office Pro that offers services, including HD video meetings, call recording, enhanced call blocking, and voicemail transcription; Ooma Connect, which delivers fixed wireless internet connectivity; Ooma Managed Wi-Fi, a plug-and-play enterprise-grade Wi-Fi solution; and Ooma Enterprise, a unified-communications-as-a-service solution.
Ooma, Inc. reported strong Q4 financial results, with revenue of $74.6 million, up 15% year-over-year, driven by growth in Ooma Business, including AirDial, and the additions of FluentStream and Phone.com. The company's adjusted EBITDA reached $11.5 million, or 15% of revenue, compared to 11% of revenue in the prior year. Non-GAAP net income for Q4 was $9.4 million, up 62% year-over-year, with actual EPS coming in at $0.34, beating estimates of $0.31. For fiscal 2026, total revenue was $273.6 million, up 7% year-over-year, with Business subscription and services revenue growing 10%.
Publication Date: Mar -08
The company's Business segment continues to drive growth, with AirDial installations coming in strongly in Q4 and continuing into January and February. Ooma exceeded its goal of adding 50 new hospitality customers every quarter, with over 80 new customers added in Q4. The company plans to expand its AirDial business, with a goal of adding at least 2 new reseller partners each quarter and growing its number of AirDial reseller partners to over 50.
Ooma acquired FluentStream and Phone.com in Q4 for approximately $68.2 million in cash, with the acquisitions generating $3.4 million and $2.7 million in revenue, respectively. The company believes that acquisitions like these are another great avenue for growth and is hopeful that every year it will do some acquisition or acquisitions to augment what it's doing itself. Ooma prioritizes accretive acquisitions that can generate more impact than investing in sales and marketing.
With a P/E Ratio of 61.44 and an EV/EBITDA ratio of 21.24, the market is pricing in significant growth expectations for Ooma. Analysts estimate next year's revenue growth at 19.4%, which may be achievable given the company's strong track record and growth prospects. Ooma's guidance for fiscal 2027 includes total revenue of $321 million to $325 million, with non-GAAP net income of $35.5 million to $37 million. The company's capital allocation strategy includes buying back stock, generating cash flow, improving margins, and pursuing M&A opportunities.
Ooma plans to introduce AI solutions on its Ooma Office platform, including transcription and summarization of calls, and an AI-powered answering service. The company also intends to launch a new product called My Phone, targeting younger users. With a strong foundation in each of its business areas, Ooma is well-positioned for growth and is excited about its prospects for fiscal 2027.
Does Ooma (OOMA) Have the Potential to Rally 34.21% as Wall Street Analysts Expect?
Mar -16
Ooma: I'm Staying Bullish After Strong Q4 Earnings
Mar -06
Ooma to Host Investor Meetings at the 38th Annual ROTH Conference
Mar -05
Ooma, Inc. (OOMA) Q4 2026 Earnings Call Transcript
Mar -05
Ooma (OOMA) Beats Q4 Earnings and Revenue Estimates
Mar -05
Ooma AirDial Wins Two Gold Merit Awards for Security and Cloud Services
Feb -26
Ooma Launches POTSTracker.com to Help Organizations Track and Manage POTS Line Discontinuance
Feb -17
Wall Street Analysts Predict a 56.16% Upside in Ooma (OOMA): Here's What You Should Know
Jan -16
Ooma's 9% growth in Subscription and Services is driven by increasing adoption of its VoIP phone services, expansion into new markets, and growing demand for smart home security solutions. Additionally, the company's focus on innovation, customer retention, and strategic partnerships contribute to its sustained growth.
Ooma's 7% growth in Product and Other segments is driven by increasing adoption of its smart home security solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, such as the introduction of new devices and features, has contributed to the growth. Furthermore, the shift towards subscription-based services has provided a stable revenue stream, supporting the company's overall growth.
A business phone system designed for small businesses, offering advanced features such as video conferencing, call recording, and virtual receptionist.
A VoIP phone system for home users, providing crystal-clear voice quality, low-cost international calling, and advanced features like 911 text alerts.
A wireless phone system that connects to the internet via Wi-Fi or Ethernet, offering a reliable and portable phone solution.
A comprehensive home security system that integrates with Ooma's phone service, offering features like motion detection, video recording, and alerts.
A 911 emergency response system that provides location-specific emergency services, ensuring timely and accurate emergency responses.
Ooma, Inc. faces moderate threat from substitutes due to the presence of traditional phone services and other VoIP providers. However, Ooma's unique features and competitive pricing help to mitigate this threat.
Ooma, Inc. has a low bargaining power of customers due to its strong brand reputation and customer loyalty. Customers have limited bargaining power, and Ooma's pricing strategy is competitive.
Ooma, Inc. has a low bargaining power of suppliers due to its diversified supply chain and lack of dependence on a single supplier. This reduces the risk of supplier negotiations and price increases.
Ooma, Inc. faces a high threat of new entrants due to the relatively low barriers to entry in the VoIP industry. New entrants can easily enter the market, posing a threat to Ooma's market share.
Ooma, Inc. operates in a moderately competitive industry, with several established players. While there is some rivalry, Ooma's unique features and competitive pricing help to differentiate it from competitors.
| Value | |
|---|---|
| Debt Weight | 20.18% |
| Debt Cost | 8.19% |
| Equity Weight | 79.82% |
| Equity Cost | 8.19% |
| WACC | 8.19% |
| Leverage | 25.28% |
Value: 3.4
Growth: 7.3
Quality: 3.2
Yield: 0.0
Momentum: 10.0
Volatility: 2.0
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