Ooma (NYSE:OOMA) Issues Earnings Results, Beats Estimates By $0.03 EPS

Ooma (NYSE:OOMA) announced its earnings results on Tuesday. The technology company reported $0.35 earnings per share for the quarter, topping analysts’ consensus estimates of $0.32 by $0.03, FiscalAI reports. The firm had revenue of $81.15 million during the quarter, compared to analyst estimates of $79.84 million. Ooma had a net margin of 2.36% and a return on equity of 15.60%. Ooma updated its FY 2027 guidance to 1.290-1.340 EPS and its Q2 2027 guidance to 0.330-0.340 EPS.

Here are the key takeaways from Ooma’s conference call:

• Ooma delivered a strong Q1, with revenue up 25% year over year to $81.1 million, non-GAAP net income up 73% to $9.7 million, and adjusted EBITDA up 78% to a record $11.8 million.
• AirDial was the main growth driver, with line installations more than doubling, bookings up more than 75%, and management saying demand is accelerating as more customers face POTS shutdowns and higher replacement costs.
• Ooma launched Ooma AI for small businesses, including AI Transcriptions, AI Answering Service, AI Receptionist, and an OpenAI integration, and expects the new capabilities to drive higher ARPU and revenue over time.
• The company said its residential business stabilized and even grew its residential user base for the first time in many quarters, helped by continued strong Telo sales and early traction for the new MyPhone product.
• Ooma raised full-year fiscal 2027 guidance, but it still expects only modest residential revenue growth and sees some near-term pressure on product margins from higher component costs and MyPhone launch-related economics.

Ooma Trading Up 1.1%

Ooma stock opened at $19.33 on Wednesday. The firm has a 50-day moving average of $16.13 and a 200-day moving average of $13.35. Ooma has a one year low of $9.79 and a one year high of $19.60. The company has a debt-to-equity ratio of 0.55, a current ratio of 0.93 and a quick ratio of 0.70. The company has a market cap of $531.77 million, a price-to-earnings ratio of 87.87 and a beta of 1.20.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on OOMA shares. Benchmark reaffirmed a “buy” rating on shares of Ooma in a research note on Thursday, March 5th. B. Riley Financial reaffirmed a “buy” rating on shares of Ooma in a research note on Monday, May 18th. Three research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $19.00.

Insider Activity at Ooma

In other news, CFO Shigeyuki Hamamatsu sold 10,790 shares of the stock in a transaction dated Friday, March 6th. The shares were sold at an average price of $14.22, for a total transaction of $153,433.80. Following the completion of the transaction, the chief financial officer directly owned 231,128 shares in the company, valued at $3,286,640.16. This represents a 4.46% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 9.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Ooma

Large investors have recently modified their holdings of the business. IFC & Insurance Marketing Inc. acquired a new position in shares of Ooma during the 4th quarter worth about $34,000. Tower Research Capital LLC TRC lifted its stake in Ooma by 225.2% in the 2nd quarter. Tower Research Capital LLC TRC now owns 3,620 shares of the technology company’s stock valued at $47,000 after purchasing an additional 2,507 shares during the last quarter. Royal Bank of Canada lifted its stake in Ooma by 24.1% in the 4th quarter. Royal Bank of Canada now owns 4,466 shares of the technology company’s stock valued at $53,000 after purchasing an additional 867 shares during the last quarter. Kemnay Advisory Services Inc. acquired a new stake in Ooma in the 4th quarter valued at about $59,000. Finally, Lazard Asset Management LLC lifted its stake in Ooma by 503.1% in the 2nd quarter. Lazard Asset Management LLC now owns 4,927 shares of the technology company’s stock valued at $63,000 after purchasing an additional 4,110 shares during the last quarter. 80.42% of the stock is currently owned by institutional investors and hedge funds.

About Ooma

Ooma, Inc, headquartered in Sunnyvale, California, is a leading provider of communication services for residential and business customers. Since its founding in 2004, Ooma has built a cloud-based platform that leverages Voice over Internet Protocol (VoIP) technology to deliver voice, video and data services over broadband networks. The company went public on the New York Stock Exchange in 2015 under the ticker OOMA and has continued to expand its service portfolio to meet evolving customer demands.

For residential users, Ooma offers an all-in-one home phone service that includes its flagship Telo device, mobile and web applications, and optional smart home security features.