Ooma Reports 4% Revenue Growth to $65 Million, Net Loss Improves

Ooma, Inc. reported a total revenue of $65.0 million for the three months ended April 30, 2025, marking a 4% increase from $62.5 million in the same period last year. The growth was primarily driven by a 6% rise in subscription and services revenue, which reached $60.3 million, up from $58.4 million. The company also saw an increase in product and other revenue, which rose to $4.8 million from $4.1 million. Despite the revenue growth, Ooma recorded a net loss of $0.1 million, a significant improvement compared to a net loss of $2.1 million in the prior year quarter.

In terms of operational metrics, Ooma's core user count decreased slightly to 1,225 from 1,239 year-over-year, primarily due to a decline in residential users. However, the proportion of business users increased, comprising approximately 41% of total core users, up from 39% a year earlier. The annualized exit recurring revenue (AERR) also grew to $234.0 million, reflecting an increase in average revenue per core user, driven largely by the growth in Ooma Business. The company maintained a net dollar subscription retention rate of 99%, consistent with the previous year.

Ooma's gross profit for the quarter was $40.2 million, resulting in a gross margin of 62%, up from 61% in the prior year. The cost of revenue increased to $24.8 million, primarily due to higher infrastructure and personnel-related costs. Operating expenses decreased slightly to $40.3 million from $40.9 million, with sales and marketing expenses rising marginally, while research and development expenses saw a notable decline. The company’s adjusted EBITDA improved to $6.7 million from $5.0 million year-over-year, indicating enhanced operational efficiency.

As of April 30, 2025, Ooma reported total cash and cash equivalents of $19.0 million, an increase from $17.9 million at the end of January 2025. The company had no outstanding debt, maintaining a strong liquidity position. Ooma's strategic focus remains on expanding its business communications services, particularly through its Ooma Business platform, which is expected to drive future revenue growth. The company anticipates continued investment in product development and marketing to enhance its service offerings and customer base.