Slide 1: Smart Connected Services Investor Presentation
Smart Connected Services Investor Presentation December 4, 2024
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements. In particular, statements regarding future economic performance, finances, and expectations and objectives of management constitute forward-looking statements. Forward-looking statements can be identified by the fact that t
Slide 3: Ooma Provides Leading Communications Services
Ooma Provides Leading Communications Services We transform sophisticated technology into elegant, simple communications solutions accessible to everyone. 3
Slide 4: Ooma Today
Ooma Today Revenue* Adjusted EBITDA* Multi-tenant SaaS platform $253 million $22 million Telephony, Messaging, Video, and more +9% +9% > 1.2 million core users Recurring Revenue* Recurring Gross 1,157 employees and contractors Profit Margin* HQ: Sunnyvale, CA $234 million 72% Founded 2003; IPO 2015
Slide 5: Our Solutions Serve Customers Better
Our Solutions Serve Customers Better HOME HOME OFFICE SMALL / MEDIUM BUSINESS LARGE BUSINESS ENTERPRISE Superior Value Created for SMB Extensive Features Innovative Features Simple to Install / Use Flexible, Customizable “ Free home phone service (just pay taxes and fees) “ Sound like a big business
Slide 6: Our Features Transform Communications
Our Features Transform Communications COMMUNICATE IN COMMUNICATE IN COMMUNICATE MORE PLACES MORE WAYS MORE EFFECTIVELY Call • PBX Features IP Phone • Contact Center Message • Customer Engagement1 & Chat • AI Recording/Transcription Desktop App • Vertical Market Solutions2 Video • CRM/Other Integrati
Slide 7: Our Cost Structure Enables Superior Value
Our Cost Structure Enables Superior Value RECURRING ARPU1 WHY CUSTOMERS BUY (Monthly) Ooma Telo Ooma Office Ooma Enterprise $15.14 • Free calling / no • Value/unlimited • Customizable to more phone bills nationwide calling individual needs • Uses existing • Easy to install / • High reliability 72% h
Slide 8: Our Platform Drives Customer Satisfaction
Our Platform Drives Customer Satisfaction DEPENDABLE VOICE QUALITY Overcomes Internet Congestion TAILORED SOLUTIONS • Advanced codec • Adaptive redundancy Enables Customization • Router / QoS • Modern flexible design • Easy integrations EASE OF USE Provides End-to-End Solution ENHANCED RELIABILITY •
Slide 9: Customers Rate Ooma #1
Customers Rate Ooma #1 #1 Ranked by Readers 11 Years in a Row Top Ranked by Readers 9 Times for Telecom Services Consumer Reports ranking through 2021, including a tie with a regional provider 9
Slide 10: Massive Market Transformation Underway
Massive Market Transformation Underway North American Business Market Growth Opportunity 56M Business Lines1 Worldwide hosted voice/UC public cloud (UCaaS) market1 17% 35 38% CAGR1 $32B Over the Top 30 36% VoIP All other VoIP 25 $23B 7% 27% 20 CAGR Traditional 15 35% Cable/Other 10 VoIP 5 -4% 0 CAGR
Slide 11: Our Reach Extends to Two Large New Markets
Our Reach Extends to Two Large New Markets POTS (COPPER LINE) REPLACEMENT WHOLESALE SOLUTIONS Solves critical infrastructure problem Wholesale platform for carriers/others >10 million line U.S. market opportunity1 Worldwide market, 50+ million users2 1. IDC, April 2022, Impending Copper Sunset Could
Slide 12: AirDial: Solving POTS (Copper) Line Replacement
AirDial: Solving POTS (Copper) Line Replacement Common Applications Elevators Fire Alarm Panels Security Panels • Reduce costs • Sustain existing equipment PBX Trunks Gate Phones Security Blue Light Panels Phones • Specialized Features: • Remote Management • Automated Alerts • Multipath Technology f
Slide 13: 2600Hz: The Modern Platform For The Future
2600Hz: The Modern Platform For The Future UCaaS 2600Hz Custom Development Video- CPaaS Conference CCaaS Mobile 100% API-Driven Multi-Tenant Architecture Low-Cost Operating Model Everything from server orchestration to End user, admin, and back-office Low-cost cloud model plus the voice, video, and
Slide 14: Integrated Growth Strategy
Integrated Growth Strategy Advertising Direct Sales 73%1 Customer Resellers Net Promoter Satisfaction and Partners Score and Referrals Geographic Expansion2 Retailers 1PC Mag 2022, for Ooma’s Small Business Solution 2Ooma Now Serves Customers in 32 Countries 14
Slide 15: Significant Growth Drivers
Significant Growth Drivers Small businesses with underserved needs Large businesses with custom requirements Our platform uniquely enables Businesses stranded by copper line sunset solutions to untapped Telecom resellers modernizing their platform opportunities Geographic expansion 15
Slide 16: Financial Overview
Financial Overview 16
Slide 17: Consistent Revenue Performance
Consistent Revenue Performance ANNUAL REVENUE QUARTERLY REVENUE (in millions) (in millions) $236.7 $65.1 $216.2 $59.9 All Other Revenue $192.3 All Other Revenue Core Core Subscription Subscription and Services $171.1 $193.6 $213.9 $54.2 $56.4 and Services Revenue Revenue FY 2022 FY 2023 FY 2024 3QF2
Slide 18: Ooma Business Drives Growth
Ooma Business Drives Growth CORE SUBSCRIPTION AND SERVICES REVENUE CORE USERS (in millions) (in thousands) $213.9 1,210 1,243 1,242 $193.6 Business $105.3 $125.9 428 484 504 Business $56.4 Residential $88.4 $88.0 781 759 738 Residential $34.6 $21.8 FY 2023 FY 2024 3QF25 FY 2023 FY 2024 3QF25 Core Bu
Slide 19: Key Metrics
Key Metrics ARPU AERR ($ per month) ($ millions) $14.72 $15.14 $234 $14.24 $227 $13.41 $207 $177 FY 2022 FY 2023 FY 2024 3QF25 FY 2022 FY 2023 FY 2024 3QF25 Monthly Business ARPU ~$23, Monthly Residential ARPU ~$9 Average Revenue Per User (ARPU) is blended monthly average subscription and services r
Slide 20: Robust Gross Margin
Robust Gross Margin HISTORICAL GROSS MARGIN RANGES LONG TERM TARGET GROSS MARGIN RANGES Subscription/Services High Total Low 80% 73% 75% 72% 72% 70% 64% 63% 65% 62% FY 2023 FY 2024 3QF25 Total Subscriptions/Services 20
Slide 21: Growing Adjusted EBITDA & Free Cash Flow
Growing Adjusted EBITDA & Free Cash Flow Trailing 12-month Adjusted EBITDA1 and Free Cash Flow2 (thousands) $25,000 $22,500 $20,000 $17,500 $15,000 $12,500 $10,000 $7,500 $5,000 $2,500 $0 3QF23 4QF23 1QF24 2QF24 3QF24 4QF24 1QF25 2QF25 3QF25 Adjusted EBITDA Free cash flow 1. Adjustments to EBITDA ar
Slide 22: Financial Position Summary
Financial Position Summary ($ millions) FY 2023 FY 2024 3QF25 Cash and Investments $26.9 $17.51 $17.1 Debt $0.0 $16.02 $3.03 Cash from Operations $8.8 $12.3 $8.1 Capital Spending ($5.2) ($6.2) ($1.6) Adjusted EBITDA $17.4 $19.8 $5.7 1. During 3QF24 Ooma acquired 2600Hz for approximately $33.0 millio
Slide 23: Target Model (Non-GAAP)
Target Model (Non-GAAP) Actual Results Targets Mid-Term (% revenue) FY 2023 FY 2024 3QF25 Long-Term (1-2 Year) Subscription & Services 73% 72% 72% 73%-74% 75% - 80% Gross Margin Overall Gross Margin 64% 63% 62% 63%-64% 65% - 70% Sales & Marketing 31% 29% 27% 28%-29% 20% - 25% Research & Development
Slide 24: Thank You.
Ooma Thank You.
Slide 25: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation $ Thousands FY 2023 FY 2024 3QF24 3QF25 GAAP Gross Profit $137,648 $147,232 $36,939 $39,270 Add : Stock-based compensation and related taxes 986 1,026 260 248 Amortization of intangibles 430 1,151 173 708 Restructuring charges - - - 39 Non-GAAP Gross Profit $139,064 $