Ooma has released financial results for the second quarter fiscal year 2019 ended July 31, 2018.
Second quarter fiscal 2019 financial highlights:
Revenue: Total revenue was $31.7 million, up 12 percent year-over-year. Subscription and services revenue increased to $28.4 million and was 90 percent of total revenue, driven by 19 percent year-over-year growth in business and residential subscription and services revenue.
Net Loss: GAAP net loss was $3.9 million, or $0.20 per basic and diluted share, compared to GAAP net loss of $3.6 million, or $0.20 per basic and diluted share, in the second quarter fiscal 2018. Non-GAAP net loss was $0.9 million, or $0.05 per basic and diluted share, compared to non-GAAP net loss of $0.4 million, or $0.02 per basic and diluted share, in the prior year period.
Adjusted EBITDA: Adjusted EBITDA was ($0.6) million compared to ($0.1) million in the prior year period.
“We achieved solid financial results while investing for growth,” said Eric Stang, chief executive officer of Ooma. “Our focus remains on our three key FY19 strategic initiatives, which are to continue the fast growth of Ooma Office for small businesses, capitalize on our Voxter acquisition to serve larger businesses with custom UCaaS solutions, and extend the Ooma platform to include home security and video monitoring services for residential users. We believe we are executing well on these initiatives and will drive long term shareholder value.”
Business Outlook
For the third quarter fiscal 2019, Ooma expects to report:
- Total revenue in the range of $31.5 million to $32.0 million.
- GAAP net loss in the range of $4.0 million to $4.6 million and GAAP net loss per share in the range of $0.20 to $0.23.
- Non-GAAP net loss in the range of $0.8 million to $1.3 million and non-GAAP net loss per share in the range of $0.04 to $0.07.
For the full fiscal year 2019, Ooma expects to report:
- Total revenue in the range of $125.5 million to $127.5 million.
- GAAP net loss in the range of $15.4 million to $16.9 million, and GAAP net loss per share in the range of $0.77 to $0.85.
- Non-GAAP net loss in the range of $3.5 million to $4.5 million, and non-GAAP net loss per share in the range of $0.18 to $0.23.
The following is a reconciliation of GAAP net loss to non-GAAP net loss and GAAP basic and diluted net loss per share to non-GAAP basic and diluted net loss per share guidance for the third fiscal quarter and the fiscal year ending January 31, 2019 (in millions, except per share data):
| Projected range | ||||
| Three Months Ending | Fiscal Year Ending | |||
| October 31, 2018 | January 31, 2019 | |||
| (unaudited) | ||||
| GAAP net loss | ($4.0)-($4.6) | ($15.4)-($16.9) | ||
| Stock-based compensation and related taxes | 2.8-2.9 | 10.8-11.2 | ||
| Acquisition-related costs, amortization of intangible assets and income tax benefit | 0.2 | 1.1-1.2 | ||
| Change in fair value of acquisition-related contingent consideration | 0.2 | — | ||
| Non-GAAP net loss | ($0.8)-($1.3) | ($3.5)-($4.5) | ||
| GAAP basic and diluted net loss per share | ($0.20)-($0.23) | ($0.77)-($0.85) | ||
| Stock-based compensation and related taxes | 0.14 | 0.54-0.56 | ||
| Acquisition-related costs, amortization of intangible assets and income tax benefit | 0.01 | 0.05-0.06 | ||
| Change in fair value of acquisition-related contingent consideration | 0.01 | — | ||
| Non-GAAP basic and diluted net loss per share | ($0.04)-($0.07) | ($0.18)-($0.23) | ||
| Weighted-average number of shares used in per share amounts: | ||||
| Basic and diluted | 20.0 | 19.9 | ||
