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Earnings Review and Free Research Report: Ooma’s Revenue Grew 11%; Non-GAAP Net Loss Narrowed

Friday, 15 September 2017 07:10 AM

Pro-Trader Daily

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Research Desk Line-up: PT Telekomunikasi Indonesia Post Earnings Coverage

LONDON, UK / ACCESSWIRE / September 15, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Ooma, Inc. (NYSE OOMA), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=OOMA, following the Company's posting of its second quarter fiscal 2018 financial results on August 24, 2017. The internet phone service provider topped revenue and earnings expectations and also provided guidance for the upcoming quarter and fiscal year. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

http://protraderdaily.com/register/

Get more of our free earnings reports coverage from other constituents of the Diversified Communication Services industry. Pro-TD has currently selected PT Telekomunikasi Indonesia Tbk (NYSE: TLK) for due-diligence and potential coverage as the Company reported on August 28, 2017, its financial results for Q2 and six months which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on PT Telekomunikasi Indonesia when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on OOMA; also brushing on TLK. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=OOMA

http://protraderdaily.com/optin/?symbol=TLK

Earnings Reviewed

For the second quarter ended July 31, 2017, Ooma's total revenue was $28.19 million, up 11% compared to revenue of $25.49 million in Q2 FY17. The Company's revenue beat analysts' expectations of $27.7 million.

For Q2 FY18, Ooma's Subscription and Services segment's revenue advanced 12% to $25.21 million on a y-o-y basis compared to revenue of $22.42 million in Q2 FY17, driven by a 62% growth of Ooma's Office subscription and services' revenue. The Company's Product and Other segment's revenue decreased 3% to $3.0 million on a y-o-y basis and this comprised 11% of total revenue.

Ooma's GAAP net loss was $3.6 million, or $0.20 per basic and diluted share, for Q2 FY18 compared to a GAAP net loss of $3.3 million, or $0.19 per basic and diluted share, in Q2 FY17. The Company's non-GAAP net loss was $0.4 million, or $0.02 per basic and diluted share, compared to non-GAAP net loss of $0.9 million, or $0.05 per basic and diluted share, in the year ago same period. Ooma's reported numbers came in ahead of Wall Street's estimates for a loss of $0.05 per share.

Ooma's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) was negative $0.1 million for Q2 FY18 compared to negative EBITDA of $0.5 million in the prior year's corresponding period.

Cash Matters

Ooma had cash, cash equivalents, and short-term investments of $53.8 million with no debt as at the end of Q2 FY18. This was the fifth consecutive quarter the Company had generated positive cash from operations and the most since being a public company. In Q2 FY18, Ooma generated approximately $1.3 million of cash from operations versus approximately $700,000 in the prior year's comparable period.

Ooma's deferred revenue was $16.1 million at the end of Q2 FY18, up 5% from the prior year's same period. The Company ended the reported quarter with 631 full-time employees and contractors through its various partner organizations, up from 457 in the prior year's corresponding quarter.

Business Outlook

For Q3 FY18, Ooma is forecasting total revenue to be between $27.8 million to $28.3 million, which reflects the sale and transition out of Business Promoter. The Company's GAAP net loss is expected to be in the range of $3.5 million to $4.0 million, and non-GAAP net loss to be in the band of $0.4 million to $0.8 million. GAAP net loss per share is estimated to be in the range of $0.19 to $0.21, and non-GAAP net loss per share to be in the band of $0.02 to $0.04.

For the full fiscal year 2018, Ooma is projecting total revenue to be in the range of $113.0 million to $114.0 million, which reflects the sale and transition out of Business Promoter. The Company's GAAP net loss is estimated to be in the band of $13.3 million to $14.6 million, and non-GAAP net loss in the range of $1.5 million to $2.3 million. GAAP net loss per share is estimated to be in the band of $0.72 to $0.79, and non-GAAP net loss per share to be in the range of $0.08 to $0.12.

Stock Performance

On Thursday, September 14, 2017, the stock closed the trading session at $9.65, slightly down 0.52% from its previous closing price of $9.70. A total volume of 40.92 thousand shares have exchanged hands. Ooma, Inc.'s stock price rallied 18.40% in the last three months, 2.12% in the past six months, and 4.44% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 7.22%. At Thursday's closing price, the stock's net capitalization stands at $179.97 million.

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