Ooma Readies for IPO with its Consumer & SMB Communications Platform

Ooma, a start-up that provides Internet-based telephony services based on a proprietary CPE device and cloud platform, has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission ("SEC") relating to a proposed initial public offering of shares of its common stock.

Ooma has applied to list its common stock on the New York Stock Exchange under the ticker symbol OOMA. The company plans to offer 5 million shares at an expected price range of $16 to $18 per share.

In its SEC filing, Ooma, is based in Palo Alto, California, said it has 678,000 core users as of April 30, 2015, up from approximately 174,000 on January 31, 2011 and representing a compound annual growth rate of approximately 38%. The company reports total revenue of $39.2 million, $53.7 million and $72.2 million in fiscal 2013, fiscal 2014 and fiscal 2015, respectively. Its total revenue for the three months ended April 30, 2014 and 2015 was $16.3 million and $19.9 million, respectively. Subscription and services revenue, which includes the recurring portion of our total revenue, has increased as a percentage of total revenue over the last four years, from approximately 30% in fiscal 2011 to 75% in fiscal 2015. It has also increased as a percentage of our total revenue from 67% for the three months ended April 30, 2014 to 78% for the three months ended April 30, 2015.

As for competitive differentiation, Ooma says its unique hybrid SaaS connectivity platform is scalable and extensible to new services. The company says this platform will enable it to add new connected services and exploit adjacent markets, all without significant additional capital investment or high customer acquisition costs. http://www.ooma.com/