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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(Mark One)
|
☒
|
QUARTERLY REPORT PURSUANT TO SECTION
13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended April 30, 2022
OR
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION
13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from
to
Commission File Number: 001-37493
Ooma, Inc.
(Exact Name of Registrant as Specified in its Charter)
|
Delaware
|
06-1713274
|
|
(State or other jurisdiction
of incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
525 Almanor Avenue, Suite 200, Sunnyvale, California 94085
(Address of principal executive offices)
(650) 566-6600
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
|
|
|
|
Title of each class
|
Trading Symbol
|
Name of each exchange on which registered
|
|
Common Stock, par value $0.0001
|
OOMA
|
The New York Stock Exchange
|
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing
requirements for the past 90
days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted
electronically every Interactive Data File required to be submitted
pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter)
during the preceding 12 months (or for such shorter period that the
registrant was required to submit such
files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer,
smaller reporting company, or an emerging growth company. See the
definitions of “large accelerated filer,” “accelerated filer,”
“smaller reporting company,” and “emerging growth company” in Rule
12b-2 of the Exchange Act.
|
Large Accelerated Filer
|
|
☐
|
|
Accelerated Filer
|
|
☒
|
|
|
|
|
|
|
Non-Accelerated Filer
|
|
☐
|
|
Smaller reporting company
|
|
☐
|
|
|
|
|
|
|
|
|
|
Emerging growth company
|
|
☐
|
|
|
|
|
If an emerging growth company, indicate by check mark if the
registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange
Act. Yes ☐ No ☐
Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange
Act). Yes ☐ No ☒
As of May 31, 2022, there were
24.3 million shares of the registrant’s common stock
outstanding.
TABLE OF CONTENTS
Ooma | FY2023 Form 10-Q | 2
PART I
— FINANCIAL INFORMATION
Item 1.
Financial Statements
OOMA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, amounts in thousands, except share and per share
data)
|
|
|
April 30,
2022
|
|
|
January 31,
2022
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
Cash and cash equivalents
|
|
$
|
21,653
|
|
|
$
|
19,667
|
|
|
Short-term investments
|
|
|
10,127
|
|
|
|
11,613
|
|
|
Accounts receivable, net
|
|
|
5,622
|
|
|
|
7,310
|
|
|
Inventories
|
|
|
14,356
|
|
|
|
13,841
|
|
|
Other current assets
|
|
|
16,077
|
|
|
|
13,598
|
|
|
Total current assets
|
|
|
67,835
|
|
|
|
66,029
|
|
|
Property and equipment, net
|
|
|
6,992
|
|
|
|
6,481
|
|
|
Operating lease right-of-use assets
|
|
|
13,995
|
|
|
|
14,396
|
|
|
Intangible assets, net
|
|
|
3,881
|
|
|
|
4,208
|
|
|
Goodwill
|
|
|
4,264
|
|
|
|
4,264
|
|
|
Other assets
|
|
|
14,254
|
|
|
|
13,875
|
|
|
Total assets
|
|
$
|
111,221
|
|
|
$
|
109,253
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
11,946
|
|
|
$
|
7,507
|
|
|
Accrued expenses and other current liabilities
|
|
|
17,198
|
|
|
|
22,823
|
|
|
Deferred revenue
|
|
|
16,392
|
|
|
|
16,600
|
|
|
Total current liabilities
|
|
|
45,536
|
|
|
|
46,930
|
|
|
Long-term operating lease liabilities
|
|
|
10,833
|
|
|
|
11,194
|
|
|
Other long-term liabilities
|
|
|
58
|
|
|
|
73
|
|
|
Total liabilities
|
|
|
56,427
|
|
|
|
58,197
|
|
|
Commitments and contingencies (Note 11)
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
Common stock $0.0001 par value: 100 million shares authorized; 24.3
million and 23.9 million shares issued and outstanding,
respectively
|
|
|
5
|
|
|
|
4
|
|
|
Additional paid-in capital
|
|
|
184,402
|
|
|
|
179,860
|
|
|
Accumulated other comprehensive loss
|
|
|
(59
|
)
|
|
|
(20
|
)
|
|
Accumulated deficit
|
|
|
(129,554
|
)
|
|
|
(128,788
|
)
|
|
Total stockholders’ equity
|
|
|
54,794
|
|
|
|
51,056
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
111,221
|
|
|
$
|
109,253
|
|
See notes to condensed consolidated financial statements
Ooma | FY2023 Form 10-Q | 3
OOMA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, amounts in thousands, except share and per share
data)
|
|
Three Months Ended
|
|
|
|
April 30,
2022
|
|
|
April 30,
2021
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Subscription and services
|
$
|
46,723
|
|
|
$
|
41,965
|
|
|
Product and other
|
|
3,614
|
|
|
|
3,607
|
|
|
Total revenue
|
|
50,337
|
|
|
|
45,572
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
Subscription and services
|
|
13,209
|
|
|
|
12,339
|
|
|
Product and other
|
|
5,176
|
|
|
|
5,151
|
|
|
Total cost of revenue
|
|
18,385
|
|
|
|
17,490
|
|
|
Gross profit
|
|
31,952
|
|
|
|
28,082
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
16,151
|
|
|
|
14,016
|
|
|
Research and development
|
|
10,498
|
|
|
|
9,307
|
|
|
General and administrative
|
|
6,062
|
|
|
|
5,725
|
|
|
Total operating expenses
|
|
32,711
|
|
|
|
29,048
|
|
|
Loss from operations
|
|
(759
|
)
|
|
|
(966
|
)
|
|
Interest and other income, net
|
|
33
|
|
|
|
79
|
|
|
Loss before income taxes
|
|
(726
|
)
|
|
|
(887
|
)
|
|
Income tax provision
|
|
(40
|
)
|
|
|
—
|
|
|
Net loss
|
$
|
(766
|
)
|
|
$
|
(887
|
)
|
|
|
|
|
|
|
|
|
|
|
Net loss per share of common stock:
|
|
|
|
|
|
|
|
|
Basic and diluted
|
$
|
(0.03
|
)
|
|
$
|
(0.04
|
)
|
|
Weighted-average shares of common stock outstanding:
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
24,116,144
|
|
|
|
23,053,512
|
|
See notes to condensed consolidated financial statements
Ooma | FY2023 Form 10-Q | 4
OOMA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, amounts in thousands)
|
|
|
Three Months Ended
|
|
|
|
|
April 30,
2022
|
|
|
April 30,
2021
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(766
|
)
|
|
$
|
(887
|
)
|
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense
|
|
|
3,337
|
|
|
|
3,194
|
|
|
Depreciation and amortization of capital expenditures
|
|
|
850
|
|
|
|
773
|
|
|
Amortization of intangible assets
|
|
|
326
|
|
|
|
326
|
|
|
Amortization of operating lease right-of-use assets
|
|
|
717
|
|
|
|
818
|
|
|
Other
|
|
|
15
|
|
|
|
10
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
1,688
|
|
|
|
1,162
|
|
|
Inventories and deferred inventory costs
|
|
|
(493
|
)
|
|
|
(1,206
|
)
|
|
Prepaid expenses and other assets
|
|
|
(2,681
|
)
|
|
|
(970
|
)
|
|
Accounts payable, accrued expenses and other liabilities
|
|
|
(1,951
|
)
|
|
|
(2,470
|
)
|
|
Deferred revenue
|
|
|
(223
|
)
|
|
|
(326
|
)
|
|
Net cash provided by operating activities
|
|
|
819
|
|
|
|
424
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from maturities and sales of short-term investments
|
|
|
4,800
|
|
|
|
6,900
|
|
|
Purchases of short-term investments
|
|
|
(3,380
|
)
|
|
|
(6,043
|
)
|
|
Capital expenditures
|
|
|
(1,459
|
)
|
|
|
(665
|
)
|
|
Net cash (used in) provided by investing activities
|
|
|
(39
|
)
|
|
|
192
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock
|
|
|
1,554
|
|
|
|
1,469
|
|
|
Shares repurchased for tax withholdings on vesting of restricted
stock units ("RSU")
|
|
|
(348
|
)
|
|
|
(485
|
)
|
|
Net cash provided by financing activities
|
|
|
1,206
|
|
|
|
984
|
|
|
Net increase in cash and cash equivalents
|
|
|
1,986
|
|
|
|
1,600
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
19,667
|
|
|
|
17,298
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
21,653
|
|
|
$
|
18,898
|
|
See notes to condensed consolidated financial statements
Ooma | FY2023 Form 10-Q | 5
OOMA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited, amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
|
|
|
Accumulated
|
|
|
Stockholders'
|
|
|
Fiscal 2023
|
|
and APIC (1)
|
|
|
AOCL (2)
|
|
|
Deficit
|
|
|
Equity
|
|
|
BALANCE - February 1, 2022
|
|
$
|
179,864
|
|
|
$
|
(20
|
)
|
|
$
|
(128,788
|
)
|
|
$
|
51,056
|
|
|
Issuance of common stock under equity-based plans
|
|
|
1,554
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,554
|
|
|
Shares repurchased for tax withholdings on RSU vesting
|
|
|
(348
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(348
|
)
|
|
Stock-based compensation
|
|
|
3,337
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,337
|
|
|
Changes in other comprehensive loss
|
|
|
—
|
|
|
|
(39
|
)
|
|
|
—
|
|
|
|
(39
|
)
|
|
Net loss
|
|
|
—
|
|
|
|
—
|
|
|
|
(766
|
)
|
|
|
(766
|
)
|
|
BALANCE - April 30, 2022
|
|
$
|
184,407
|
|
|
$
|
(59
|
)
|
|
$
|
(129,554
|
)
|
|
$
|
54,794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
|
|
|
Accumulated
|
|
|
Stockholders'
|
|
|
Fiscal 2022
|
|
and APIC
|
|
|
AOCL
|
|
|
Deficit
|
|
|
Equity
|
|
|
BALANCE - February 1, 2021
|
|
$
|
166,581
|
|
|
$
|
7
|
|
|
$
|
(127,037
|
)
|
|
$
|
39,551
|
|
|
Issuance of common stock under equity-based plans
|
|
|
1,469
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,469
|
|
|
Shares repurchased for tax withholdings on RSU vesting
|
|
|
(485
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(485
|
)
|
|
Stock-based compensation
|
|
|
3,194
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,194
|
|
|
Changes in other comprehensive loss
|
|
|
—
|
|
|
|
(4
|
)
|
|
|
—
|
|
|
|
(4
|
)
|
|
Net loss
|
|
|
—
|
|
|
|
—
|
|
|
|
(887
|
)
|
|
|
(887
|
)
|
|
BALANCE - April 30, 2021
|
|
$
|
170,759
|
|
|
$
|
3
|
|
|
$
|
(127,924
|
)
|
|
$
|
42,838
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Additional paid-in capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
Accumulated other comprehensive (loss)
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See notes to condensed consolidated financial statements
Ooma | FY2023 Form 10-Q | 6
Ooma, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Note
1: Overview
Ooma, Inc. and its wholly-owned subsidiaries (collectively, “Ooma”
or the “Company”) provides leading communications services
and related technologies for
businesses and consumers, delivered from its smart
software-as-a-service (“SaaS”) and unified communications
platforms. The Company is headquartered in Sunnyvale,
California.
Fiscal Year. The Company’s fiscal year ends
on January 31. References to fiscal 2023 and fiscal 2022
refer to the fiscal year ending January 31, 2023 and the
fiscal year ended January 31, 2022, respectively.
Basis of Presentation. The accompanying unaudited
condensed consolidated financial statements have been prepared in
accordance with U.S. generally accepted accounting principles
(“GAAP”) and applicable rules and regulations of the Securities and
Exchange Commission (“SEC”) regarding interim financial reporting.
Certain information and note disclosures normally included in the
financial statements prepared in accordance with GAAP have been
condensed or omitted pursuant to such rules and regulations. The
condensed consolidated balance sheet as of January 31, 2022
included herein was derived from the audited financial statements
as of that date, but does not include all the disclosures required
by GAAP. Therefore, the information included in this Quarterly
Report on Form 10-Q should be read in conjunction with the audited
consolidated financial statements and related notes included in the
Company’s Annual Report on Form 10-K for the year ended January 31,
2022 filed with the SEC on April 8, 2022 (“Annual
Report”).
The accompanying condensed consolidated financial statements
reflect all normal recurring adjustments that management
believes are necessary for a fair presentation of the interim
periods presented. The results for the three months ended April 30,
2022 are not necessarily indicative of the results to be expected
for any subsequent quarter or for the fiscal year ending
January 31, 2023.
Principles of Consolidation. The condensed consolidated
financial statements include the accounts of Ooma, Inc. and its
wholly-owned subsidiaries. All intercompany transactions and
balances have been eliminated in consolidation.
Use of Estimates. The preparation of
financial statements in conformity with GAAP requires management to
make estimates and assumptions that affect the Company’s condensed
consolidated financial statements and notes
thereto. Significant estimates include, but are not limited
to, those related to revenue recognition, inventory valuation,
deferred sales commissions, valuation of goodwill and intangible
assets, operating lease assets and liabilities, regulatory fees and
indirect tax accruals, loss contingencies, stock-based compensation
and income taxes (including valuation allowances). The Company
bases its estimates and assumptions on historical experience, where
applicable, and other factors that it believes to be reasonable
under the circumstances. These estimates are based on
information available as of the date of the consolidated financial
statements, and assumptions are inherently subjective in nature.
Therefore, actual results could differ from management’s
estimates.
Significant Accounting Policies. There have been no material
changes to the Company’s significant accounting policies from those
disclosed in the Annual Report.
Comprehensive Loss. For all periods presented,
comprehensive loss approximated net loss in the condensed
consolidated statements of operations and differences were not
material. Therefore, the condensed consolidated statements of
comprehensive loss have been omitted.
Ooma | FY2023 Form 10-Q | 7
Ooma, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Note 2: Revenue and Deferred Revenue
The Company derives its revenue from two sources:
Subscription and Services Revenue is
derived primarily from recurring subscription fees
related to service plans such as Ooma Business, Ooma Residential
and other communications services. Service plans are generally sold
as monthly subscriptions; however, certain plans are also offered
as annual or multi-year subscriptions. Subscription revenue is
generally recognized ratably over the contractual service
term.
Product and Other Revenue is generated primarily from the
sale of on-premise appliances and end-point devices, including
shipping and handling fees for direct customers. The Company
recognizes product and other revenue from sales to direct
end-customers and
channel partners at the point-in-time that control transfers, which
is typically when it delivers the product.
Revenue disaggregated by revenue source consisted of the following
(in thousands):
|
|
Three Months Ended
|
|
|
|
April 30,
2022
|
|
|
April 30,
2021
|
|
|
Subscription and services revenue
|
$
|
46,723
|
|
|
$
|
41,965
|
|
|
Product and other revenue
|
|
3,614
|
|
|
|
3,607
|
|
|
Total revenue
|
$
|
50,337
|
|
|
$
|
45,572
|
|
The Company derived approximately 50% and 47% of its total revenue
from Ooma Business and approximately 47% and 51% from Ooma
Residential for the three months ended April 30, 2022 and 2021,
respectively. No individual country outside of the United
States, and no single customer, represented 10% or more of total
revenue for the periods presented.
Customers who represented 10% or more of net accounts receivable
were as follows:
|
|
|
|
|
As of
|
|
|
|
|
|
|
April 30,
2022
|
|
|
January 31,
2022
|
|
|
Customer A
|
|
|
|
14%
|
|
|
19%
|
|
|
Customer B
|
|
|
|
*
|
|
|
11%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Less than 10% of net accounts receivable for the period
indicated.
|
|
Deferred Revenue primarily consists of billings
or payments received in advance of meeting revenue recognition
criteria. Deferred services revenue is recognized on a ratable
basis over the term of the contract as the services are
provided.
|
|
|
|
|
As of
|
|
|
|
|
|
|
April 30,
2022
|
|
|
January 31,
2022
|
|
|
Subscription and services
|
|
|
|
$
|
16,392
|
|
|
$
|
16,614
|
|
|
Product and other
|
|
|
|
|
58
|
|
|
|
59
|
|
|
Total deferred revenue
|
|
|
|
$
|
16,450
|
|
|
|
16,673
|
|
|
Less: current deferred revenue
|
|
|
|
|
16,392
|
|
|
|
16,600
|
|
|
Non-current deferred revenue included in other long-term
liabilities
|
|
|
|
$
|
58
|
|
|
$
|
73
|
|
During the three months ended April 30, 2022, the Company
recognized revenue of approximately
$9.9 million pertaining to amounts deferred as of January
31, 2022. As of April 30, 2022, deferred revenue was primarily
composed of subscription contracts invoiced during the first
quarter of fiscal 2023, as well as amounts recorded during fiscal
2022 for annual contracts.
Remaining Performance Obligations. As of April 30, 2022, contract
revenue that had not yet been recognized for open contracts with an
original expected length of greater than one year was
approximately $9.1 million. The Company expects to recognize
revenue on approximately 53% of this amount over the next 12
months, with the balance to be recognized thereafter.
Ooma | FY2023 Form 10-Q | 8
Ooma, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Note 3: Fair Value Measurements
The Company estimates and categorizes fair value by applying the
following hierarchy:
|
Level 1:
|
Quoted prices (unadjusted) for identical assets or liabilities in
active markets.
|
|
Level 2:
|
Observable prices based on inputs not quoted in active markets, but
are corroborated by market data.
|
|
Level 3:
|
Unobservable
inputs that are supported by little or no market
activity.
|
Financial assets measured at fair value on a recurring basis by
level were as follows (in thousands):
|
|
Balance as of April 30, 2022
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Total
|
|
|
Cash and cash equivalents:
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market funds
|
$
|
2,434
|
|
|
$
|
—
|
|
|
$
|
2,434
|
|
|
Commercial paper
|
|
—
|
|
|
|
1,299
|
|
|
|
1,299
|
|
|
Total cash equivalents
|
$
|
2,434
|
|
|
$
|
1,299
|
|
|
$
|
3,733
|
|
|
Cash
|
|
|
|
|
|
|
|
|
$
|
17,920
|
|
|
Total cash and cash equivalents
|
|
|
|
|
|
|
$
|
21,653
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. treasury securities
|
$
|
5,037
|
|
|
$
|
—
|
|
|
$
|
5,037
|
|
|
Corporate debt securities
|
|
—
|
|
|
|
3,341
|
|
|
|
3,341
|
|
|
Commercial paper
|
|
—
|
|
|
|
1,749
|
|
|
|
1,749
|
|
|
Total short-term investments
|
$
|
5,037
|
|
|
$
|
5,090
|
|
|
$
|
10,127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of January 31, 2022
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Total
|
|
|
Cash and cash equivalents:
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market funds
|
$
|
2,275
|
|
|
$
|
—
|
|
|
$
|
2,275
|
|
|
Total cash equivalents
|
$
|
2,275
|
|
|
$
|
—
|
|
|
$
|
2,275
|
|
|
Cash
|
|
|
|
|
|
|
|
|
|
17,392
|
|
|
Total cash and cash equivalents
|
|
|
|
|
|
|
$
|
19,667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. treasury securities
|
$
|
7,065
|
|
|
$
|
—
|
|
|
$
|
7,065
|
|
|
Commercial paper
|
|
—
|
|
|
|
4,548
|
|
|
|
4,548
|
|
|
Total short-term investments
|
$
|
7,065
|
|
|
$
|
4,548
|
|
|
$
|
11,613
|
|
The Company classifies its cash equivalents and short-term
investments within Level 1 or Level 2 because it uses quoted
market prices or alternative pricing sources and models utilizing
market observable inputs to determine their fair value. The
Company has no Level 3 assets or liabilities. For the periods
presented, the amortized cost of cash equivalents and marketable
securities approximated their fair value and there were no material
realized or unrealized gains or losses, either individually or in
the aggregate.
Contractual maturities of
short-term investments were as follows (in
thousands):
|
|
|
|
As of
|
|
|
|
|
|
April 30,
2022
|
|
|
January 31,
2022
|
|
|
Due in one year or less
|
|
|
$
|
9,644
|
|
|
$
|
10,377
|
|
|
Due after one year to two years
|
|
|
|
483
|
|
|
|
1,236
|
|
|
Total
|
|
|
$
|
10,127
|
|
|
$
|
11,613
|
|
Ooma | FY2023 Form 10-Q | 9
Ooma, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Note 4: Balance Sheet Components
The following sections and tables provide details of selected
balance sheet items (in thousands):
Inventories
|
|
|
|
|
As of
|
|
|
|
|
|
|
April 30,
2022
|
|
|
January 31,
2022
|
|
|
Finished goods
|
|
|
|
$
|
10,655
|
|
|
$
|
10,452
|
|
|
Raw materials
|
|
|
|
|
3,701
|
|
|
|
3,389
|
|
|
Total inventory
|
|
|
|
$
|
14,356
|
|
|
$
|
13,841
|
|
Acquired intangible assets, net
|
|
|
|
|
As of
|
|
|
|
|
|
|
April 30,
2022
|
|
|
January 31,
2022
|
|
|
Customer relationships
|
|
|
|
$
|
3,561
|
|
|
$
|
3,814
|
|
|
Developed technology
|
|
|
|
|
173
|
|
|
|
224
|
|
|
Trade names
|
|
|
|
|
147
|
|
|
|
170
|
|
|
Total intangible assets
|
|
|
|
$
|
3,881
|
|
|
$
|
4,208
|
|
Amortization expense for acquired intangible assets was $0.3
million for each of the three months ended April 30, 2022 and
2021.
Other current and non-current assets
|
|
|
|
|
As of
|
|
|
|
|
|
|
April 30,
2022
|
|
|
January 31,
2022
|
|
|
Deferred sales commissions, current
|
|
|
|
$
|
6,736
|
|
|
$
|
6,395
|
|
|
Inventory prepayments
|
|
|
|
|
4,090
|
|
|
|
1,462
|
|
|
Convertible note receivable (see "GTC" below)
|
|
|
|
|
1,818
|
|
|
|
1,773
|
|
|
Prepaid expenses and other
|
|
|
|
|
3,433
|
|
|
|
3,968
|
|
|
Total other current assets
|
|
|
|
$
|
16,077
|
|
|
$
|
13,598
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred sales commissions, non-current
|
|
|
|
$
|
13,346
|
|
|
$
|
13,228
|
|
|
Other non-current assets
|
|
|
|
|
908
|
|
|
|
647
|
|
|
Total other non-current assets
|
|
|
|
$
|
14,254
|
|
|
$
|
13,875
|
|
Customer Acquisition Costs. Amortization expense for
deferred sales commissions was $1.7 million and $1.3
million for the three months ended April 30, 2022 and 2021,
respectively. There was no impairment
in
relation to the costs capitalized for the periods
presented.
Global Telecom Corporation (“GTC”). In December 2018, the
Company invested $1.3 million in cash in GTC, a
privately-held technology company, in exchange for a convertible
promissory note that will convert to shares of GTC stock upon the
occurrence of certain future events. As amended, the
promissory note and accrued interest is due and payable upon the
Company’s demand at any time after June 30, 2022. GTC is a variable
interest entity for accounting purposes and the Company does not
consolidate GTC into its financial statements because the Company
is not the primary beneficiary. As of April 30, 2022, the Company’s
maximum exposure to loss is equal to the carrying value of the
convertible note receivable of $1.8 million, including accrued
interest. As of April 30, 2022, the Company had non-cancelable
inventory purchase commitments to GTC of $1.4 million.
Ooma | FY2023 Form 10-Q | 10
Ooma, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Accrued expenses and other current liabilities
|
|
|
|
|
As of
|
|
|
|
|
|
|
April 30,
2022
|
|
|
January 31,
2022
|
|
|
Payroll and related expenses
|
|
|
|
$
|
5,964
|
|
|
$
|
10,853
|
|
|
Regulatory fees and taxes
|
|
|
|
|
3,978
|
|
|
|
3,933
|
|
|
Short-term operating lease liabilities
|
|
|
|
|
3,248
|
|
|
|
3,260
|
|
|
Customer-related liabilities
|
|
|
|
|
1,236
|
|
|
|
1,587
|
|
|
Other
|
|
|
|
|
2,772
|
|
|
|
3,190
|
|
|
Total accrued expenses and other current liabilities
|
|
|
|
$
|
17,198
|
|
|
$
|
22,823
|
|
Ooma | FY2023 Form 10-Q | 11
Ooma, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Note 5: Operating Leases
The Company leases its headquarters located in Sunnyvale,
California, as well as office and data center space in various
locations under non-cancelable operating lease agreements.
Supplemental balance sheet information related to leases was as
follows (in thousands):
|
|
|
|
|
|
|
As of
|
|
|
|
|
|
|
|
|
April 30,
2022
|
|
|
January 31,
2022
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating lease right-of-use assets
|
|
|
|
|
|
$
|
13,995
|
|
|
$
|
14,396
|
|
|
Total leased assets
|
|
|
|
|
|
$
|
13,995
|
|
|
$
|
14,396
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term operating lease liabilities
|
|
|
|
|
|
$
|
3,248
|
|
|
$
|
3,260
|
|
|
Long-term operating lease liabilities
|
|
|
|
|
|
|
10,833
|
|
|
|
11,194
|
|
|
Total lease liabilities
|
|
|
|
|
|
$
|
14,081
|
|
|
$
|
14,454
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average remaining lease term
|
|
|
|
|
|
5.6 years
|
|
|
5.8 years
|
|
|
Weighted-average discount rate
|
|
|
|
|
|
|
3.7
|
%
|
|
|
3.7
|
%
|
Operating lease right-of-use assets and long-term operating lease
liabilities are included on the face of the condensed consolidated
balance sheet. Short-term operating lease liabilities are included
in other current liabilities.
The Company incurred total lease costs in its consolidated
statements of operations of $1.2 million for each of the three
months ended April 30, 2022 and 2021.
Supplemental cash flow information related to leases was as follows
(in thousands):
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
April 30,
2022
|
|
|
April 30,
2021
|
|
|
Cash payments for operating leases
|
|
|
|
|
|
$
|
822
|
|
|
$
|
980
|
|
|
Right-of-use assets recognized in exchange for new operating lease
obligations
|
|
|
|
|
|
$
|
316
|
|
|
$
|
313
|
|
As of April 30, 2022, maturities of lease liabilities under
non-cancelable operating leases were as follows (in thousands):
|
Fiscal Years Ending
January 31,
|
|
|
|
|
|
|
|
April 30, 2022
|
|
|
2023 remainder
|
|
|
|
|
|
|
|
$
|
2,366
|
|
|
2024
|
|
|
|
|
|
|
|
|
3,175
|
|
|
2025
|
|
|
|
|
|
|
|
|
3,130
|
|
|
2026
|
|
|
|
|
|
|
|
|
1,721
|
|
|
2027
|
|
|
|
|
|
|
|
|
1,684
|
|
|
Thereafter
|
|
|
|
|
|
|
|
|
3,555
|
|
|
Total future minimum lease payments
|
|
|
|
|
|
|
|
|
15,631
|
|
|
Less: imputed interest
|
|
|
|
|
|
|
|
|
(1,550
|
)
|
|
Present value of lease
liabilities
|
|
|
|
|
|
|
|
$
|
14,081
|
|
Ooma | FY2023 Form 10-Q | 12
Ooma, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Note 6: Stockholders’ Equity
The Company has a stock-based compensation plan, the 2015 Equity
Incentive Plan, pursuant to which it has granted incentive and
nonstatutory stock options and restricted stock units.
Additionally, the Company's
2015 Employee Stock Purchase Plan (“ESPP”) allows eligible
employees to purchase shares of common stock at a discounted price
through payroll deductions.
Stock Options. Stock option activity
for the
three months ended April 30, 2022 was as follows:
|
|
|
|
|
|
|
Weighted-Average
|
|
|
Aggregate
|
|
|
|
|
Shares
|
|
|
Exercise Price
|
|
|
Intrinsic Value
|
|
|
|
|
(in thousands)
|
|