Slide 1: Smart Connected Services Investor Presentation
Smart Connected Services Investor Presentation March 1, 2021
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 $168.9 Multi-tenant SaaS platform $151.6 $129.2 1M+ core users Customers of all sizes 90%+ recurring revenue (96% retention*) $40.6 $44.3 987 employees and contractors FY 2019 FY 2020 FY 2021 4QF20 4QF21 HQ: Sunnyvale, CA Annua
Slide 5: Customers Rate Ooma #1
Customers Rate Ooma #1 Business Home #1 Ranked by Readers Top Ranked by Readers 7 Years in a Row 8 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 $12.46 • 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 RESELLER-FRIENDLY SOLUTIONS WIRELESS INTERNET MANAGED Wi-Fi SECURITY 10
Slide 11: Massive Market Transformation Underway
Massive Market Transformation Underway North American Business Market Growth Opportunity 59M Business Lines1 Global Cloud PBX Market 14% $18.2B CAGR1 50% Internet/ Cloud 15.5% 50% CAGR Traditional $5B 2019 2027 12015 - 2018 Source: FCC Voice Telephone Services: Status as of December 31, 2018; CRTC C
Slide 12: Integrated Growth Strategy
Integrated Growth Strategy Advertising Direct Sales 75%1 Customer Resellers Net Promoter Referrals and Partners Score Services Retailers Expansion 1PC Mag 2020, 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: Consistent Revenue Performance
Consistent Revenue Performance ANNUAL REVENUE QUARTERLY REVENUE (in millions) (in millions) $168.9 $151.6 $44.3 $129.2 $40.6 Other Other Revenue Revenue Core Core Subscription Subscription $111.7 $135.3 $152.6 $36.3 $39.9 and Services and Services Revenue Revenue FY 2019 FY 2020 FY 2021 4QF20 4QF21
Slide 16: Ooma Business Drives Growth
Ooma Business Drives Growth SUBSCRIPTION AND SERVICES REVENUE USERS (in millions) (in thousands) $152.6 1,074 $135.3 1,048 976 231 270 Business 156 Business $54.6 $69.4 $39.9 Home $80.7 $83.2 819 817 804 Home $18.8 $21.1 FY 2020 FY 2021 4QF21 FY 2019 FY 2020 4Q/FY21 4QF21 Ooma Business Subscription
Slide 17: Key Metrics
Key Metrics ARPU AERR $161 ($ per month) ($ millions) $143 $12.46 $11.95 $119 $10.96 $9.80 $103 FY 2019 FY 2020 FY 2021 4QF21 FY 2018 FY 2019 FY 2020 4Q/FY21 Monthly Business ARPU >$20, Monthly Residential ARPU >$8 ARPU is blended monthly average subscription and services revenue per core user/seat.
Slide 18: Robust Gross Margin
Robust Gross Margin LONG TERM TARGET GROSS MARGIN RANGES Subscription/Services High Total Low 80% 71% 72% 75% 70% 70% 62% 63% 63% 65% FY 2020 FY 2021 4QF21 Total Subscriptions/Services 18
Slide 19: Solid EBITDA Performance
Solid EBITDA Performance 1-3 Year 4QF19 1QF20 2QF20 3QF20 4QF20 1QF21 2QF21 3QF21 4QF21 Target 10% $4,000 $3,500 8% $3,000 $2,500 6% 5% $2,000 4% $1,500 $1,000 2% $500 $0 0% ($500) -2% ($1,000) EBITDA/Rev. (%) EBITDA (thousands) 19
Slide 20: Strong Financial Position
Strong Financial Position ($ millions) FY 2020 FY 2021 4QF21 Cash and Investments $26.1 $28.3 $28.3 Cash from (used in) Operations ($7.6) $4.4 $2.2 Capital Spending ($3.3) ($3.2) ($0.9) Adjusted EBITDA $1.0 $14.0 $3.6 20
Slide 21: Target Model (Non-GAAP)
Target Model (Non-GAAP) Actual Results Targets Mid-Term (% revenue) FY 2020 FY 2021 4QF21 Long-Term (1-3 Year) Subscription & Services 70% 71% 72% 70%-75% 75% - 80% Gross Margin Overall Gross Margin 62% 63% 63% 62%-65% 65% - 70% Sales & Marketing 31% 28% 29% 32%-35% 20% - 25% Research & Development
Slide 22: Thank You.
Ooma Thank You.
Slide 23: GAAP to Non-GAAP Reconciliation
$ Thousands FY 2019 FY 2020 FY 2021 4QF20 4QF21 GAAP Gross Profit $76,491 $89,381 $104,804 $24,588 $27,440 GAAP to Add : Stock-based compensation and related taxes Amortization of Intangibles 957 549 1,311 480 1,054 292 305 73 257 73 Non-GAAP Restructuring charges Non-GAAP Gross Profit $77,997 - 2,2