Ooma (OOMA) Rides A Phone Line Extinction Into Faster Growth
Ooma Inc. (OOMA) reported a 25% increase in revenue for its second-quarter fiscal 2027, reaching $83.2 million. Subscription and service revenue jumped 38%, while adjusted EBITDA rose 74% to $12.4 million. The company introduced new products, including AirDial, a replacement for old copper phone lines, which grew its services revenue by 75% year-over-year and installations by 50%.
Ooma now has over 40 resale partners, including a Verizon Platinum partner. Shares of the company increased as hedge fund ownership rose to 24 funds from 21 in the previous quarter, signaling growing institutional interest. However, the company's residential subscription revenue remained flat year-over-year, and full-year guidance suggests flat to 1% growth.
Despite these challenges, Ooma's AI offerings, such as AI Transcriptions, AI Insights, an AI Answering Service, and an AI Receptionist, could drive future growth.
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