Ooma, Inc. Common Stock Investor Day 2026

Good morning, everyone. Hey, Chris. Everyone, let's try and take our seats if we can. You want us to just all seat in the back? Sit in the back is fine. You can sit up here too if you want. I don't think it's going to fill up. They just started. Okay. Excuse me, everyone. Let's take a seat. We want to try to start close to on time. No one's listening to me. I feel like we have all All right, let's order everybody.

Grab a seat. Everyone can grab a seat.

Okay, so there's three. First, I thought you were going to say there's two. My coffee just arrived. Oh, it just arrived? Okay. If you want to grab coffee quickly, feel free. It did arrive. But otherwise, since we're broadcasting as well, I want to start close to on time to get people dialed in. Welcome, everyone, including that guy in the back I haven't seen in a long time. Hey, Toby. Just giving a minute for folks to grab a coffee. Well, good morning, everyone. Thank you for joining us today. I'm Eric Stang, of course, CEO of Ooma. We're excited to talk with you today about what's going on in the company.

We're going to try to move through it fairly quickly so we can get to Q&A, but we do have a lot to talk about, including a couple of exciting announcements which we'll be making today. Hope you enjoy our presentation. By the way, welcome also to everyone who's dialed in and watching this online as well. First, though, our safe harbor statement, which speaks to forward-looking statements that we'll be making during the day. I'll let you read this post the presentation. Ooma, we're obviously a cloud-based communications provider. We like to say that Ooma stands for Object of My Affection, but the real truth is we're named after Uma Thurman. If any of you know her, let her know she's got a public company named after her. Not everyone can say that. I'm very pleased to welcome many of our leadership team members here today.

Not everyone on the slide has joined us, but several folks have, and you'll meet them as they come up to present, so I won't take a moment now to introduce them, but excited to be here with you. Ooma today, just a little bit of background and perspective. As you know, we provide a set of services to customers using a multi-tenant SaaS platform, focused around telephony, messaging, video, and all kinds of unified communications solutions that go along with that. We have over 1.4 million core users today. Core users for us excludes a small subsidiary that is a mobile app, Talkatone, and also our 2600Hz customers. About 1,500 people based in Sunnyvale, been public for about a little over 10 years. On the last trailing four quarters, we've driven $307 million in revenue, which is up 17% year-over-year, about $44 million in EBITDA.

Quite a lot of growth in EBITDA the last two or three years, and we're committed to driving EBITDA up further as we go forward. About $300 million in annual recurring revenue, and our recurring non-GAAP gross margins run in the 70% plus range. We're driving a lot of value from our customers, and with 99% retention, we feel we're building a bigger business and a better business each quarter that we go forward. Our strategy is pretty simple. We aim to bring together advanced features, superior ease of use, and uncommon value. When we can combine all three of those together, we believe we have a winning strategy. We do that in certain segments that we target, and that allows us, we believe, to be a leader in those segments.

We don't try to be everything to everybody, but we are going to take you through today the segments we're in and why we think we're winning. A little bit of a history of the company and where we've gotten to today. We started out over 20 years ago in the residential telephony business. That today is less than 30% of our revenue, but we quickly moved past that and moved into business UCaaS, unified communications as a service. Started that segment for us over 10 years ago. We're very excited that third parties have rated us number one in both of those areas of our business. More recently, in the last few years, we've gotten into POTS replacement, replacing plain old telephone service with more advanced solutions. There, we're very excited because we have a very large partner reseller community, and that is growing for us every quarter.

We've also been recognized there as well for some of the leadership elements we bring, and we'll talk about what those are as we go further in the presentation. Then finally, most recently with our 2600Hz acquisition, we've also been able to use our platform as a wholesale platform for others to leverage, and we'll talk to you a little bit about where we're going there and the pretty significant longer-term potential that segment holds for us. Looking at just a little more detail, what are customers looking for in each of these segments, and why Ooma? Why do we do well? When it comes to smaller business communications, businesses up to 100, 200, 300 employees, they really want to avail themselves of the newest methods and resources that they have not generally had access to before.

They want to portray a bigger business image and communicate with their customers more effectively. Now, why we win in that segment is we really put together a curated set of features for the smaller business customer. We do that so that they get everything they need, but they do not get a lot of extra that is confusing or too much for them. Keep in mind, a lot of our small business customers have no IT professional in their business, so they have to be able to set up and operate that and use that system themselves. We marry that together with great ease of installation and use, good value, and very ready available support. We think when we put that package together with a focus on their needs, we can differentiate versus the general UCaaS industry. In POTS replacement, it is pretty simple.

Our customers are looking to reduce costs. The costs of POTS lines have gotten astronomical, and they are also trying to just keep their equipment operating. Their equipment is legacy equipment that needs an analog connection. What do they do if that POTS line goes away? You are going to hear from us talk today about some very differentiated features that we bring to the space. We have built our system end to end so we can bring the control and reliability that is needed for this type of solution. With our wholesale communications software and services, we find our customers are probably using an older platform, and they want to stay competitive as things are evolving. Our platform really stands out, it is very modern in design, very API based.

It allows our customers to not only leverage pre-built applications, but really innovate on top of it to meet their needs. We will talk a little bit about what folks are doing there. Finally, in residential communications, it is really about the safety and convenience of having a home phone. We believe we bring a very reliable service with some advanced features at a very low cost. We will talk more about that. Our strategic priorities as a business today, we want to win carriers and other resale partners in order to dramatically grow in AirDial and our POTS replacement solutions. We want to focus on AI to extend our leadership serving small business customers, and with that, dramatically grow our ARPU.

We want to continue to focus on the modern capabilities of our 2600Hz platform and position it as the choice for the future as carriers and others eventually decide to replace their legacy solutions. In residential, we have two new offerings, MyPhone and StarDial, which we will talk about, and those will allow us to reignite residential growth. At an overall level, we target certain segments where we believe we can be the best. We are going to take you through why as we go further here. To do that, we have to have the leading solution and put together those three elements of the strategy that I talked about. We are also augmenting our growth with acquisitions primarily in the UCaaS space. I will talk about what our objectives there and goals are a little later.

But with that, we can build scale and drive more profitability as a business. Finally, the last one, driving profitable growth. We are very focused on what we are spending for what we are achieving, our customer acquisition cost, our payback, building scale to really bring that 72% gross margin that we run with today for recurring revenue on a non-GAAP basis to bring more and more of that down to the bottom line. With that, this is our agenda for today. I have taken us through the first one on here. We are very excited to have Elka Popova with us from Frost & Sullivan. She is going to give us a general market perspective, and then we are going to go through each of our four segments, financial metrics. I will talk a little bit about acquisitions and closing remarks, and we will get to Q&A, although I know it is a lot.

Elka, thank you for joining us. She has got a lot of experience in our industry. She is the lead author for Frost & Sullivan's annual radar reports on UCaaS and CPaaS. She is going to be joining us for Q&A as well and lunch, so feel free to also ask her questions as we go through the day. Thank you, Elka. Thank you, Eric.