Telecom firm Ooma meets Q2 revenue estimates, raises FY net income guidance
Overview
Ooma fiscal Q2 rev grows 3% yr/yr, in line with analysts' expectations
Adjusted EPS for fiscal Q2 beats consensus
Adjusted EBITDA for fiscal Q2 exceeds estimates, per LSEG data
Outlook
Ooma expects Q3 revenue between $67.2 mln and $67.9 mln
Projects Q3 GAAP net income of $0.9 mln to $1.3 mln
Co anticipates Q3 non-GAAP net income of $6.0 mln to $6.4 mln
Maintains full-year revenue guidance of $267 mln to $270 mln
Ooma raises full-year GAAP net income guidance to $3.5 mln to $4.0 mln
Ooma increases full-year non-GAAP net income guidance to $24.5 mln to $25.0 mln
Result Drivers
SUBSCRIPTION REVENUE - Subscription and services revenue increased to $61.1 mln, driven by growth in Ooma Business
NON-GAAP EPS GROWTH - Non-GAAP EPS grew 52% yr/yr, attributed to operational improvements
ADJUSTED EBITDA INCREASE - Adjusted EBITDA rose 27% yr/yr, reflecting enhanced efficiency
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | In-line | $66.40 mln | $66.40 mln (6 Analysts) |
Q2 Adjusted EPS | Beat | $0.23 | $0.2 (6 Analysts) |
Q2 EPS | -$0.04 | ||
Q2 Adjusted Net Income | Beat | $6.50 mln | $5.76 mln (5 Analysts) |
Q2 Net Income | -$1.30 mln | ||
Q2 Adjusted EBITDA | Beat | $7.20 mln | $7.18 mln (6 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the integrated telecommunications services peer group is "buy"
Wall Street's median 12-month price target for Ooma Inc is $17.75, about 32.5% above its August 25 closing price of $11.98
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 15 three months ago
Press Release:
