UPDATE: Ooma (OOMA) Tops Q3 EPS by 6c, Revenues Beat; Offers Q4 & FY20 EPS Guidance
Ooma (NYSE: OOMA) reported Q3 EPS of $0.01, $0.06 better than the analyst estimate of ($0.05). Revenue for the quarter came in at $39.6 million versus the consensus estimate of $38.39 million.
Third Quarter Fiscal 2020 Financial Highlights
- Revenue: Total revenue was $39.6 million, up 21% year-over-year. Subscription and services revenue increased to $36.5 million and was 92% of total revenue, driven by 24% year-over-year growth in combined Ooma Business and Ooma Residential services.
- Net Income/Loss: GAAP net loss was $6.8 million, or $0.32 per basic and diluted share, compared to GAAP net loss of $3.5 million, or $0.18 per basic and diluted share, in the third quarter fiscal 2019. GAAP net loss includes a $3.1 million charge relating to certain restructuring activities taken at the end of the quarter. Non-GAAP net income was $0.1 million, or $0.01 per basic and diluted share, compared to a loss of $0.5 million, or $0.03 per basic and diluted share in the prior year period.
- Adjusted EBITDA: Adjusted EBITDA was $0.6 million, compared to ($0.2) million loss in third quarter fiscal 2019.
“Ooma delivered strong results for the third quarter of our 2020 fiscal year”, said Eric Stang, chief executive officer. “We achieved 21% year-over-year revenue growth, driven primarily by 67% growth in subscription services revenues from business customers, and an important milestone with non-GAAP profitability. We also took actions in Q3 to strengthen our focus on serving and growing business customers going forward”.
GUIDANCE:
Ooma sees Q4 2020 EPS of $0.00-$0.02, versus the consensus of ($0.07).
Ooma sees FY2020 EPS of ($0.08)-($0.06), versus the consensus of ($0.20).
For the fourth quarter of fiscal 2020, Ooma expects to report:
- Total revenue in the range of $39.6 million to $40.3 million.
- GAAP net loss in the range of $3.2 million to $3.6 million and GAAP net loss per share in the range of $0.15 to $0.17.
- Non-GAAP net income in the range of $0.0 million to $0.4 million and non-GAAP net income per share in the range of $0.00 to $0.02.
For the full fiscal year 2020, Ooma expects to report:
- Total revenue in the range of $150.5 million to $151.2 million.
- GAAP net loss in the range of $19.8 million to $20.2 million, and GAAP net loss per share in the range of $0.94 to $0.96.
- Non-GAAP net loss in the range of $1.4 million to $1.8 million, and non-GAAP net loss per share in the range of $0.06 to $0.08.
For earnings history and earnings-related data on Ooma (OOMA) click here.