Ooma, Inc. Q4 FY2026 earnings call

• Strong Q4 financial results with solid revenue growth, new records for net income, adjusted EBITDA, and cash flow from operations. Adjusted EBITDA in Q4 reached $11.5 million, 15% of revenue. Total adjusted EBITDA for fiscal 2026 was $33.9 million, up from $23.2 million prior year. - Introduction of AI solutions on UMA office platform including transcription, insights from call data using AI platforms, AI-powered answering service, and full AI receptionist solution. - Airdial market opportunity expanding due to POTS price rises and line shutdowns, added 4 more reseller partners in Q4, total 41 partners. - Plans for integrating FluentStream and Phone.com, and future acquisitions. - Residential business Umatello performed well in Q4, and plan to launch My Phone in fiscal 2027.

In the fourth quarter, revenue was $74.6 million, up 15% year-over-year. Business subscription and services revenue grew 23% year-over-year. Airdial line installations hit a record, more than doubling the prior year quarter. FluentStream was acquired on December 1, 2025 for approximately $45 million in cash, and Phone.com was acquired on December 26, 2025 for approximately $23.2 million in cash. The financial results of these acquired businesses are included in UMA's financial results from their respective acquisition completion dates in Q4. Combined, FluentStream and Phone.com added approximately $6.1 million of revenue in Q4, with $6 million in business subscription revenue.

• First quarter of fiscal 2027 total revenue expected in range of $79.6 million to $80.4 million, including $5.7 to $6.1 million product and other revenue; non-GAAP net income range $8.8 million to $9.2 million; non-GAAP diluted EPS $0.31 to $0.33. - Full fiscal 2027 total revenue expected $321 million to $325 million; non-GAAP net income $35.5 million to $37 million; adjusted EBITDA $43 million to $44.5 million; non-GAAP diluted EPS $1.26 to $1.31.

• Forward-looking statements may not materialize due to risks and uncertainties set forth in press release and SEC filings. Non-GAAP financial measures not substitute for GAAP, risks related to acquisitions and integration of acquired businesses.

• Q: Josh Nichols asked about cost synergies for Phone.com in fiscal 2027 guidance.

A: Guidance does not assume synergy yet, but target to realize more meaningful cost synergy later in the year. - Q: Patrick Walravens asked about Airdial installations and hotel hospitality goal.

A: Some Airdial installations pushed out in fall came in in Q4, strong January and February momentum; goal to add 50 new hospitality customers per quarter, did over 80 in Q4. - Q: Matthew Harrigan asked about competition and sales and marketing.

A: Leverage reseller partners for growth, sales and marketing at about 25% of revenue, features and capabilities of solution ahead of competitors. - Q: Arjun Bhatia asked about Airdial strength and residential business.

A: Airdial has steady business and large deals, lumpy but momentum; residential business with My Phone has market opportunity, users didn't decline in Q3 and Q4. - Q: Maxwell Michaels asked about ARPU and acquisition multiples.

A: Acquired businesses' ARPU relatively comparable to UMA Office, slightly lower; acquisition multiples balance, accretive and impact on growth are key criteria.