Slide 1: Smart Connected Services Investor Presentation
Smart Connected Services Investor Presentation March 4, 2025
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 $257 million $23 million Telephony, Messaging, Video, and more +8% +17% > 1.2 million core users Annual Exit Recurring Gross 1,186 employees and contractors Recurring Revenue* Profit Margin* HQ: Sunnyvale, CA $234 million 72% Founded 20
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 $15.26 • 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) $256.9 $236.7 $65.1 $61.7 All Other $216.2 All Other Revenue Revenue Core Core Subscription Subscription $193.6 $213.9 $224.0 $54.5 $56.8 and Services and Services Revenue Revenue FY 2023 FY 2024 FY 2025 4QF2
Slide 18: Ooma Business Drives Growth
Ooma Business Drives Growth CORE SUBSCRIPTION AND SERVICES REVENUE CORE USERS (in millions) (in thousands) 1,210 1,243 1,234 $224.0 $213.9 Business $125.9 $137.0 428 484 503 Business $56.8 Residential $88.0 $87.0 781 759 731 Residential $35.2 $21.6 FY 2024 FY 2025 4QF25 FY 2023 FY 2024 4Q/F25 Core B
Slide 19: Key Metrics
Key Metrics ARPU AERR ($ per month) ($ millions) $15.26 $227 $234 $14.72 $14.24 $207 FY 2023 FY 2024 FY 2025 FY 2023 FY 2024 FY 2025 Monthly Business ARPU ~$23, Monthly Residential ARPU ~$9 Average Revenue Per User (ARPU) is blended monthly average subscription and services revenue per core user/sea
Slide 20: Robust Gross Margin
Robust Gross Margin HISTORICAL GROSS MARGIN RANGES LONG TERM TARGET GROSS MARGIN RANGES Subscription/Services High Total Low 80% 72% 75% 72% 72% 70% 63% 62% 65% 63% FY 2024 FY 2025 4QF25 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 $0 4QF23 1QF24 2QF24 3QF24 4QF24 1QF25 2QF25 3QF25 4QF25 Adjusted EBITDA Free cash flow 1. Adjustments to EBITDA ar
Slide 22: Financial Position Summary
Financial Position Summary ($ millions) FY 2024 FY 2025 4QF25 Cash and Investments $17.5 $17.9 $17.9 Debt $16.0 - - Cash from Operations $12.3 $26.6 $7.8 Capital Spending ($6.2) ($6.4) ($1.7) Adjusted EBITDA $19.8 $23.3 $6.9 22
Slide 23: Target Model (Non-GAAP)
Target Model (Non-GAAP) Actual Results Targets Mid-Term (% revenue) FY 2024 FY 2025 Long-Term (1-2 Year) Subscription & Services 72% 72% 72%-73% 75% - 78% Gross Margin Overall Gross Margin 63% 62% 62%-63% 65% - 70% Sales & Marketing 29% 27% 26%-28% 20% - 25% Research & Development 19% 18% 15%-16% 12
Slide 24: Thank You.
Ooma Thank You.
Slide 25: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation $ Thousands FY 2024 FY 2025 4QF24 4QF25 GAAP Gross Profit $147,232 $156,018 $37,753 $39,933 Add : Stock-based compensation and related taxes 1,026 1,049 246 243 Amortization of intangibles 1,151 2,974 786 708 Restructuring charges - 39 - - Non-GAAP Gross Profit $149,4