Ooma Inc (NYSE: OOMA)

Ooma provides leading communications services and related technologies that bring unique features ease of use and affordability to business and residential customers through its smart software as a service and unified communications platforms. The company delivers voice and collaboration tools including messaging intelligent virtual attendants and video conferencing to help businesses run more efficiently. For consumers Ooma offers residential phone service with PureVoice high definition voice quality advanced functionality and integration with mobile devices.

Ooma generates revenue primarily from the sale of subscriptions and other services for its business and residential communications solutions. The company also earns product revenue from the sale of its on premise devices and end point devices such as the Ooma AirDial base station. Customers typically pay for services on a monthly basis although some plans are offered as annual or multi year subscriptions.

The company operates through the following segments: Ooma Business and Ooma Residential.

• Ooma Business: This segment includes Ooma Office, Ooma Enterprise, Ooma AirDial, 2600Hz, FluentStream, Phone.com, and OnSIP providing cloud based unified communications tools such as voice messaging video conferencing call center capabilities and customizable APIs for small medium and large enterprises.

• Ooma Residential: This segment offers home phone services including Ooma Telo basic and premier models, smart security solutions, and the Talkatone mobile app enabling users to make calls send texts and access additional features over Wi Fi or cellular connections.

Ooma holds a competitive position in the fragmented communications market by emphasizing product quality reliability and ease of use. The company faces rivals such as Comcast Corporation, Verizon Communications Inc, Rogers Communications Inc, RingCentral Inc, Vonage Holdings Corp, 8x8 Inc, Nextiva Inc, Intermedia.net Inc, Dialpad Inc, Microsoft Corporation, Zoom Video Communications Inc, Alphabet Inc, Crexendo Inc, Alianza Inc, Cisco Systems Inc, and Mitel Inc. In the CPaaS and CCaaS space Ooma competes with Twilio, Plivo, Sinch, Five9, and NICE Systems Ltd. Its advantages include a broad feature set, strong network performance, simple activation, and full control of its proprietary technology, which together support high customer satisfaction and loyalty.

Ooma serves a diverse customer base that includes businesses of all sizes and residential households across the United States and Canada. Retail partners such as Amazon, Best Buy, Costco.com, Walmart.com, and T Mobile distribute its products. No single customer accounted for 10% or more of total revenue in recent fiscal years.