Ooma (OOMA) Stock: Why The Price Fell

By Amit Chowdhry ● Dec 2, 2021
  • The stock price of Ooma Inc (NYSE: OOMA) fell by over 5% after hours today. This is why it happened.

The stock price of Ooma Inc (NYSE: OOMA) fell by over 5% after hours today. Investors are responding negatively to the company’s Q3 fiscal year 2022 results.

These are the Q3 fiscal 2022 financial highlights:

— Total revenue was $49.2 million, up 14% year-over-year. Subscription and services revenue increased to $44.7 million from $39.6 million in the third quarter of fiscal 2021, and was 91% of total revenue, primarily driven by the growth of Ooma Business.

— GAAP net loss was $0.3 million, or $0.01 per basic and diluted share, compared to GAAP net loss of $0.4 million, or $0.02 per basic and diluted share, in the third quarter of fiscal 2021. Non-GAAP net income was $3.3 million, or $0.13 per diluted share, compared to non-GAAP net income of $3.1 million, or $0.13 per diluted share in the prior-year period.

— Adjusted EBITDA was $4.0 million, compared to $3.6 million in the third quarter of fiscal 2021.

Business Outlook:

For the fourth quarter of fiscal 2022, Ooma expects:

— Total revenue in the range of $49.7 million to $50.2 million.

— GAAP net loss in the range of $0.5 million to $1 million and GAAP net loss per share in the range of $0.03 to $0.05.

— Non-GAAP net income in the range of $2.3 million to $2.8 million and non-GAAP net income per share in the range of $0.09 to $0.11.

For the full fiscal year 2022, Ooma expects:

— Total revenue in the range of $191.5 million to $192.0 million.

— GAAP net loss in the range of $2.2 million to $2.7 million, and GAAP net loss per share in the range of $0.11 to $0.13.

— Non-GAAP net income in the range of $11.7 million to $12.2 million, and non-GAAP net income per share in the range of $0.47 to $0.49.

KEY QUOTE:

“Ooma delivered strong revenue growth and solid bottom line performance for the third quarter of fiscal 2022. Revenue grew 14% year-over-year, with key subscription services revenues increasing 24% for business customers and 4% for residential customers. Subscription services revenues from business customers now represent 49% of total subscription services revenue and are on pace to exceed 50% in the near future. Ooma launched several new features for its Office and Office Pro service tiers and recently announced Ooma AirDial, an innovative wireless solution to replace aging and expensive copper lines used in safety and business-critical systems. We believe our growth momentum and investments in new features and products position us well for future business expansion and continued success.”

— Eric Stang, chief executive officer of Ooma

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.