Ooma, Inc.

Ladies and gentlemen, thank you for standing by. And welcome to the UMA Inc. fiscal fourth year quarter and year, sorry, to the fiscal fourth quarter and year 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 keypad. Please be advised that today's conference is being recorded. And if you require any further assistance, please press star zero. I'd now like to hand the conference over to your speaker today, Mr. Matt Robinson. Please go ahead.

Thank you, Gabriel. Good day, everyone, and welcome to the fourth quarter and fiscal year 2021 earnings call of UMA, Inc. My name is Matt Robinson, 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 fourth quarter and fiscal year 2021 earnings press release via BusinessWire. 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 and presentations page of the investor relations section of our website. This link will be active for replay of this call for at least one year. A telephonic replay will also be available for a week starting this evening about 8 p.m. Eastern time. Dialing 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 Securities 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, and those risks more fully described in our filings for the Securities and Exchange Commission. The forward-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 first quarter and full year fiscal 2022 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, includes links to costs 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 gap to non-gap reconciliation. It also provides resolution of gap expenses that are excluded from non-gap metrics. Now I will hand over the call to UMA's CEO, Eric Stang.

Thank you, Matt. Hi, everyone. Welcome to UMA's Q4 fiscal year 2021 earnings call. Thank you for joining us today. I look forward to reviewing with you our fiscal 2021 accomplishments and our plans and outlook for this coming year. I'm pleased to report that Q4 was another strong quarter and capped off a strong year for UMA. We again outpaced our guidance in Q4 by delivering 44.3 million in revenue, 2.8 million in non-GAAP net income, and 3.6 million in EBITDA. For the full 2021 fiscal year, we achieved 168.9 million in revenue, while also generating $14 million in EBITDA. Moreover, we exited Q4 with $160.5 million in annual recurring revenue, up from $143 million a year ago, driven primarily by 27% year-over-year growth in subscription services revenues from business customers. All in, I'm proud of our performance and excited as I look forward to the year ahead. Diving a little deeper into our progress in Q4, I can share that we again increased the percentage of new customers who adopt our Office Pro higher tier of service. In Q4, 45% of new Office customers selected Office Pro. We believe our feature additions during the year, including the launch of video meetings and enhancements to our desktop and mobile apps, helped drive this adoption. Adoption of Office Pro is a driver of our increasing revenue per user. Strategically, we intend to continue to expand the capabilities of UMA Office to attract larger customers, and we have new service enhancements planned for fiscal 2022. I can also share that our sales through channel resellers was our highest yet in Q4 and represented 43% of our business sales. Developing and growing channel resellers and partners is a long-term strategy to expand our sales and marketing reach. This will continue to be a strategic priority for us in fiscal 2022. As we pursue strategies to expand our services and our channel and market reach, we intend to grow our business not only with small business customers, where we believe we are the market leader today, but also with increasingly larger customers. I'm pleased to share that we won a customer in the healthcare industry in Q4 that is over 700 users. This customer chose our enterprise solution because it fit well with their business needs and will enable them to manage their business more productively across a large number of locations. For Ooma Office, We want a customer in the auto industry in Q4 that is over 175 users spread across 16 locations. This customer valued the simplicity, ease of use, and value afforded by UMA Office. As a solution designed specifically for a small business environment, UMA Office simply fit their needs better. This is a larger customer than is typical for UMA Office, but it helps demonstrate that Office can be a strong solution for larger companies. Already today, approximately 20% of our UMA Office users are in businesses with 10 or more employees. Now, regarding our largest overall customer, which, as you'll recall, entails more than 25,000 users, I'm pleased to share that over the course of Q3 and Q4, we enabled the direct trunking services to more than 450 new locations in North America. This represents important growth with our largest customer that also lays a foundation for future expansion of our services to them. Internationally, we also grew with this customer and now have expanded our activities with this customer to four European countries. On the services front, we made a major announcement in Q4 that we now offer direct routing for Microsoft Teams. Through our global data network, we can connect Teams users to external phone lines and transform Teams into a highly reliable business phone system. With more than 2 million users, we have the scale advantage to do this reliably and efficiently. And unlike some direct routing solutions on the market, Our offering runs through our core platform, allowing us to deploy our UCaaS functionality to complement Teams in a hybrid model. Currently, we primarily see demand for Teams with larger businesses of 100 users or more. According to Ribbon Research, 70% of businesses deploying Teams indicate they will use direct routing. We believe direct routing for Teams represents a significant advantage new market opportunity for us going forward. And finally, regarding Q4, on the residential side of our business, we received the great news in November that Consumer Reports once again ranked UMA the number one home phone service in America. This result comes from user surveys performed by Consumer Reports in which we were ranked a four or five out of five on all four metrics, namely reliability, call quality, customer support, and value. This is the eighth time we've won this honor and couldn't be more proud. With more than 50 million home phones in operation in North America, residential phone service remains a significant opportunity in its own right. In the vast majority of cases, we believe consumers can get both better phone service and less expensive phone service by switching to UMA. Our corporate focus today is of course on building our business customer base, but we also delivered on the residential front in fiscal 2021 by achieving 3% year over year growth in residential subscription service revenues. Looking ahead, we see favorable market trends. The research firm IDC reported recently that their surveys indicate increased work from home trends will continue post COVID. Specifically, they report that pre-COVID, 37% of respondent organizations indicated part-time or full-time work-from-home practices at their company. Now, 52% of respondent organizations not only report such practices, but expect them to continue post-COVID. Along with this, IDC also reported that 55% of respondent organizations say they will increase their spending this coming year on universal communications and collaboration services. Similarly, a survey by Ribbon Research indicates 2.5 times more interest by small businesses in investing in IP-based communication solutions versus a year ago. They also report that 76% of small businesses defined as less than 100 employees say they have yet to invest in IP-based communications solutions. As we look ahead to the coming year, we are optimistic about the market trends and the sizable opportunities in front of us. Our plans for fiscal 2022 include several initiatives to grow our business. At the core is continued execution of our strategies to serve small businesses with unique solutions designed specifically for them, to serve larger businesses with customizable solutions to satisfy better their individual needs, to continue expansion of our sales and marketing efforts, both direct and through channel partners, and to grow internationally, serving our largest customers. In fiscal year 2022, we intend to, one, offer additional features with UMA Office to continue our momentum serving larger businesses and further increase our average revenue per user. Two, capitalize on the market demand for Teams direct routing, as well as our other activities to grow UMA Enterprise. Three, increase our sales and marketing significantly, through investments in digital marketing and inside sales, and to attract and support more channel resellers. Four, evolve our UMA Connect and UMA managed Wi-Fi solutions, which are part of our longer-term strategy to provide a more complete solution for small businesses. And five, expand geographically to serve users in a number of new countries with a focus on countries in Europe. This effort will be ongoing throughout the year and driven by adding new users with our largest customer. By the end of fiscal 2022, we anticipate having expanded to more than a dozen new countries. Overall, the strong market environment and the success we are seeing with our solutions and our strategy make us excited for the coming year. I will now turn the call over to Ravi to discuss our results and outlook in more detail, and then return with some closing remarks.