Ooma (OOMA) 27th Annual Needham Growth Conference summary

Business overview and market positioning

• Annual revenue run rate exceeds $250 million, with 92%-93% recurring revenue and 99% retention rate.

• Core focus on small businesses and residential customers, with new growth in AirDial and 2600Hz segments.

• Ooma Office targets small businesses with turnkey UCaaS solutions; Ooma Telo serves residential customers.

• Ooma Enterprise focuses on hospitality, with hundreds of hotels on the platform.

• Consistently ranked number one for business and residential VoIP by third-party surveys.

Growth drivers and new opportunities

• Large addressable market: 4-5 million small businesses in North America yet to adopt UCaaS.

• AirDial replaces copper lines for industrial equipment, targeting millions of lines being sunset by carriers.

• 2600Hz platform enables white-label UCaaS for carriers, offering significant conversion opportunities.

• Signed major resellers for AirDial, including T-Mobile and a tier-one cable company.

• ServiceTitan adopted 2600Hz for its Contact Center Pro solution.

Financial performance and targets

• Q3 revenue was $65 million, with over 1.25 million core users and 500,000 business users.

• Business users now account for over 60% of recurring revenue, driving higher ARPU and margin expansion.

• Adjusted EBITDA margin at 9% and record $6.5 million free cash flow in the latest quarter.

• Debt-free as of the latest quarter, with CapEx-light operations supporting free cash flow growth.

• Targeting adjusted EBITDA margin in the low teens within 1-2 years and over 20% in 4-5 years.