Ooma, Inc. · NYSE:OOMA
Ooma — Investor Presentation (November 2019)
23 slides from Ooma's investor presentation, Nov 21, 2019
Slide 1: Smart Connected Services Investor Presentation
Smart Connected Services Investor Presentation NOVEMBER 21, 2019
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 TOTAL REVENUE (in millions) Founded 2003; IPO 2015 NYSE: OOMA $129.2 Multi-tenant SaaS platform $114.5 $104.5 1M+ core users Customers of all sizes $39.6 90%+ recurring revenue (100% retention*) $32.6 750+ employees and contractors FY 2017 FY 2018 FY 2019 F3Q19 F3Q20 HQ: Sunnyvale, CA Ann
Slide 5: Customers Rate Ooma #1
Customers Rate Ooma #1 Business Home #1 Ranked by Readers Top Ranked by Readers 6 Years in a Row 7 Times 5
Slide 6: Our Solutions Serve Customers Better
Our Solutions Serve Customers Better HOME HOME OFFICE SMALL / MEDIUM BUSINESS LARGE BUSINESS ENTERPRISE Ooma Telo Ooma Office Ooma Enterprise Superior Value Created for SMB Extensive Features Innovative Features Simple to Install / Use Flexible, Customizable “ Free home phone service (just pay taxes
Slide 7: Our Platform Delivers Breakthrough Features
Our Platform Delivers Breakthrough Features 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 8: Our Disruptive Cost Structure Enables Superior Value
Our Disruptive Cost Structure Enables Superior Value RECURRING ARPU1 WHY CUSTOMERS BUY (Monthly) Ooma Telo Ooma Office Ooma Enterprise $11.00 • Free calling / no • Value/unlimited • Customizable to more phone bills nationwide calling individual needs • Uses existing • Easy to install / • High reliab
Slide 9: Our Business Scope Provides Sales Synergy
Our Business Scope Provides Sales Synergy Mass Advertising Targeted Outreach Retailers Resellers Standard Features Customization DIY Installation SOLUTIONS Custom Deployments User Administered IT Specialists Standard Internet Dedicated Connectivity 45% of Telo customers and 22% of Office customers 1
Slide 10: Our Reach Extends to New Opportunities
Our Reach Extends to New Opportunities PARTNER-FRIENDLY SOLUTIONS RESELLER-FRIENDLY SOLUTIONS WIRELESS INTERNET SECURITY 10
Slide 11: Massive Market Transformation Underway
Massive Market Transformation Underway Business Growth Opportunity 61M Lines1 19% CAGR2 Global Cloud PBX Market 54% 46% Traditional Internet/ Cloud $18.2B 15.5% CAGR Home 70M Lines1 1% CAGR2 $5B 36% 64% Traditional Internet/ Cloud 2019 2027 1North America. 22014 - 2017 Source: FCC Voice Telephone Se
Slide 12: Integrated Growth Strategy
Integrated Growth Strategy Advertising Direct Sales 69%1 Customer Resellers Net Promoter Referrals and Partners Score Services Retailers Expansion 1PC Mag 2019, for Ooma’s Small Business Solution 12
Slide 13: Significant Growth Drivers
Significant Growth Drivers Small businesses with underserved needs Large businesses with custom requirements Our platform uniquely enables Telecom resellers requiring own-brand solutions solutions to untapped New adjacent services opportunities Geographic expansion 13
Slide 14: Financial Overview
Financial Overview 14
Slide 15: Investment Highlights
Investment Highlights TOTAL REVENUE (in millions) Massive connected services opportunity $129.2 Unique SaaS platform solution $114.5 $104.5 Disruptive cloud communications and other connected services $39.6 $32.6 Efficient integrated go-to-market strategy Predictable SaaS / subscription economics FY
Slide 16: Compounding Subscriptions Drive Revenue
Compounding Subscriptions Drive Revenue ANNUAL REVENUE QUARTERLY REVENUE (in millions) (in millions) $39.6 $129.2 $114.5 Other $32.6 $104.5 Revenue $28.5 Other Revenue Core Core Subscription Subscription $78.2 $94.2 $111.7 $23.9 $28.7 $35.4 and Services and Services Revenue Revenue FY 2017 FY 2018 F
Slide 17: Ooma Business Drives Core User and Subscription Revenue Growth
Ooma Business Drives Core User and Subscription Revenue Growth SUBSCRIPTION AND SERVICES REVENUE CORE USERS (in millions) (in thousands) $111.7 1,038 976 929 $94.2 858 220 Business 156 $34.0 121 86 $78.2 $22.5 Business $14.1 $35.4 Home $64.1 $71.7 $77.7 $15.0 772 808 819 818 Home $20.4 FY 2017 FY 20
Slide 18: Key Metrics
Key Metrics ARPU AERR ($ per month) ($ millions) $11.13 $138.7 $9.77 $119.1 $8.79 $8.13 $103.0 $85.2 FY 2017 FY 2018 FY 2019 F3Q20 FY 2017 FY 2018 FY 2019 F3Q20 Monthly Business ARPU ~$20, Monthly Home ARPU ~$8 ARPU is blended monthly average subscription and services revenue per core user/seat. AER
Slide 19: Robust Gross Margin
Robust Gross Margin LONG TERM GROSS MARGIN RANGES Subscription/Services High Total Low 80% 75% 70% 70% 71% 70% 63% 65% 61% 60% FY 2018 FY 2019 F3Q20 Total Subscription 19
Slide 20: Strong Financial Position
Strong Financial Position ($ millions) FY 2018 FY 2019 F3Q20 Cash and Investments $51.8 $42.6 $27.5 Cash from (used in) $3.2 ($3.9) ($0.6) Operations Capital Spending ($2.5) ($1.9) ($0.8) Adjusted EBITDA ($0.2) ($1.9) $0.6 20
Slide 21: Long-Term Target Model (Non-GAAP)
Long-Term Target Model (Non-GAAP) 3 Year Long-Term (% revenue) FY 2018 FY 2019 F3Q20 Targets Ranges Subscription & Services 70% 70% 71% 70%-75% 75% - 80% Gross Margin Overall Gross Margin 61% 60% 63% 62%-65% 65% - 70% Sales & Marketing 31% 30% 31% 32%-35% 20% - 25% Research & Development 22% 23% 22%
Slide 22: Thank You.
Ooma Thank You.
Slide 23: GAAP to Non-GAAP Reconciliation
$ Thousands FY 2017 FY 2018 FY 2019 F3Q19 F3Q20 GAAP to GAAP Gross Profit $59,329 $68,092 $76,491 $20,073 $22,040 Add : Stock-based compensation expense and 1,038 1,129 957 257 348 related taxes Non-GAAP Amortization of Intangibles 162 183 549 146 128 Restructuring charges - - - - 2,289 Reconciliati