Ooma, Inc.

Ladies and gentlemen, thank you for standing by and welcome to the UMA, Inc. Third Quarter Fiscal 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Matt. Thank you. Please go ahead, sir.

Thank you, David. Good day, everyone, and welcome to the third quarter fiscal year 2021 earnings call of UMA, Inc. My name is Matt Robison, UMA's Director of IR and Corporate Development. On the call with me today are UMA's CEO, Eric Stang, and CFO, Ravi Narula. After the market closed today, UMA issued its third quarter earnings press release via Business Wire. The release is also available on the company's website, UMA.com. This call is being webcast live and is accessible from a link on the events page of the investor relations section of our website. This link will be active for replay of this call for at least one year. The telephonic replay will also be available for a week starting this evening about 8 p.m. Eastern time. Downloading information for it is included in today's press release. During today's presentation, our executives will make forward-looking statements within the meaning of the federal security laws. Forward-looking statements generally relate to future events or future financial or operating performance. Our expectations and beliefs regarding these matters may not materialize, and actual results in financial periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include those set forth in the press release we issued earlier today, risks related to the impact of the COVID-19 pandemic, and those risks more fully described in our filings with the Securities and Exchange Commission. The four looking statements in this presentation are based on information available to us as of the date hereof, and we disclaim any obligation to update any forward-looking statements except as required by law. Please note that, other than revenue or as otherwise stated, the financial measures to be disclosed on this call will be on a non-GAAP basis. The non-GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. The discussion of why we present non-GAAP financial measures And a reconciliation of the non-GAAP financial measures discussed in this call to the most directly comparable GAAP financial measures are included in our earnings press release, which is available on our website. On this call, we'll give guidance for fourth quarter and full year fiscal 2021 on a non-GAAP basis. Also, in addition to our press release and 8K filing, the events and presentations page in the investors section, as well as the quarterly results page of the financial information section of our website include links to cost and expenses not included in our non-GAAP values and key metrics of our core subscription businesses. These are titled Supplemental Financial Disclosure 1 and Supplemental Financial Disclosure 2. Additionally, our investor presentation slides include GAAPs and non-GAAP reconciliation, but also provides resolution of GAAP expenses that are excluded from our non-GAAP metrics. Now I will hand the call over to UMA CEO Eric Stang. Eric Stang Thanks, Matt.

Hi, everyone. Welcome to UMA's Q3 fiscal year 2021 earnings call. Thank you for joining us today. I'm pleased to report that in Q3, UMA continued its strong performance. For the quarter, we grew revenues to $43 million and non-GAAP net income to $3.1 million. Each of these results exceed our plan significantly. Q3 was a record quarter for the number of new business users added. exclusive of a very large customer we onboarded last year. And regarding this large customer, I'm pleased to report that in Q3, we continue to expand by onboarding many of the new sites in North America that we mentioned on our last conference call. Overall this year, the COVID crisis has certainly presented new challenges and caused us to pivot our strategy, for example, to accelerate the launch of UMA meetings and to adapt our sales and marketing. I believe we have responded well to the challenge and I'm optimistic about our outlook. As one example of the progress we are seeing, I'm pleased to report the churn of business users, which increased at the start of the pandemic, is now nearly back to the level we experienced pre-pandemic. I believe this progress positions us well for Q4. Sales and marketing execution is a key element of our strategy this year. So far this fiscal year, we have increased our sales and marketing organization by more than 100 employees and contractors. Our expanding team is, of course, focused on enabling not only direct sales but also channel, retail, and partner sales. I'd like to share some examples of our progress. For the first time, sales to business users through VARs and channel resellers increased represented over 40% of our total business sales. For sales of UMA Enterprise specifically, 16% of our sales were from channel resellers working with us for the first time. We continue to perform particularly well in select verticals and with select profiles of customers. You may recall two quarters ago, we mentioned a large national brand where we had enabled over 900 local independent locations. Now, two quarters later, we enable nearly 1,200 locations with this national brand. We find that the quality of our service delights our customers. One example of this is an UMA customer located in Florida and North Carolina who started with UMA Office for just four users about a year ago. As of Q3, they have grown to over 300 users and rolled out our service across 29 sites in their organization. The adoption rate for UMA Office Pro, our higher-priced, more featured tier of service, is now above 30% for new Office users. This is up from about 25% just a quarter ago. And finally, we have started to incorporate UMA Connect, our wireless Internet service, and UMA Wi-Fi, our managed Wi-Fi service, into our marketing and sales processes. It is still early days as these services were just recently launched. However, we continue to believe they fill a critical need for small business customers and provide us increased leverage to win new accounts. All in, I believe we are executing well on our sales and marketing initiatives. Our strategy is to serve businesses of all sizes, and we are increasingly doing so. For small businesses, we believe we bring unique competitive advantage and are the industry leader today. Our combination of curated features, ease of installation and use, and value set us apart and drive our growth. We are also creating new related infrastructure services for small businesses to provide a more complete solution and greater value. This past quarter, we announced that Frost and Sullivan honored us with their Best Practices Award for North American Competitive Strategy Innovation and Leadership. They commented that UMA is creating its own segment with its managed services strategy, the connected SMB market, and cost-effective communications and network services. It's terrific to see Frost and Sullivan share our vision that small business represents a vast, market opportunity that is underserved and ready for disruption. With larger sized businesses, we are expanding our opportunity through adding features, developing new channel partners, and increasing our reach. Our competitive advantage today is largely built upon our abilities to customize our solution for special customer needs and to support complex customer deployments. Increasingly, we are also differentiating by focusing on the needs of select vertical market segments. With these advantages, we serve both large companies with unique needs and businesses of all sizes and targeted segments. We are confident that we can increasingly differentiate our solution through focus on what we do best. I'll now turn the call over to Ravi to discuss our results and outlook in more detail, and then return with some closing remarks.