Ooma, Inc.

Good afternoon. My name is Emma, and I will be your conference operator today. At this time, I would like to welcome everyone to the UMA fourth quarter and fiscal 2022 financial results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press the star one. Thank you. Mr. Robison, you may begin your conference.

Thanks, Emma. Good day, everyone, and welcome to the fourth quarter and fiscal year 2022 earnings call at 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, Shig Hamamatsu. After the market closed today, UMA issued its fourth quarter and fiscal year 2022 earnings press release. This 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 in actual results or 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 were fully described in our filings with the Securities and Exchange Commission. The forward-looking statements in this presentation are based on information information available to us as of the day 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. A 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 is included in our earnings press release, which is available on our website. On this call, we will give guidance for first quarter and full year fiscal 2023 on a non-GAAP basis. Also, in addition to our press release and 8K filing, the overview page and events and presentation page in the investors section of our website, as well as the results page of the financial info section of our website, include links to information about 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 GAAP to non-GAAP reconciliation that also provides a resolution of GAAP expenses that are excluded from non-GAAP metrics. Now, I will hand the call over to UMA CEO Eric Stang.

Thank you, Matt. Hi, everyone. Welcome to UMA's Q4 fiscal year 2022 earnings call. Thank you for joining us today. I'm pleased to report we exceeded expectations for Q4 and our full fiscal 2022 year. And I'm excited to talk with you about our outlook and the many initiatives we have underway to drive growth in our upcoming fiscal year. We capped off our fiscal 2022 with Q4 revenues of $50.5 million. representing 14% growth year over year. Total revenue for fiscal 2022 was $192.3 million, up $23.3 million from fiscal 2021, and also representing 14% growth year over year. We accomplished this growth while increasing our ARPU, generating EBITDA of $15.6 million, and increasing our cash on hand to over $30 million. FY22 was a strong year for us and one we're proud of. Looking back at FY22, we're also proud of the investments we made in our future. As I go through my remarks today, I will highlight a number of growth opportunities that we put in place during FY22 and which hold tremendous potential for this year and beyond. Looking first though at our progress in Q4, We continue to execute our core strategy of growing our SMB and enterprise subscription revenues through feature enhancements and sales and marketing expansion. For our SMB customers, we added features such as hot desking, which facilitates shared workspaces, dynamic caller ID, which allows individual control of caller ID, and calendar integration with Google G Suite and Microsoft Office 365. We also continued development of our upcoming Pro Plus tier, which will extend our range of features to serve even larger businesses and facilitate further ARPU growth for UMA Office. I'm pleased to report we remain on track to launch UMA Office Pro Plus in Q2 of this year. For our enterprise customers, we launched our integration with Jazzware to link UMA's UCaaS features with Jazzware's cloud service and control of property management solutions. Our plan is for UMA and Jazzware together to enable advanced features for the hospitality industry. We also continued our ongoing effort to modernize each of the ways our users interact with UMA Enterprise. In this regard, I'm pleased to report that we believe we will complete our update of UMA Enterprise in the first half of this year with the release of new mobile apps and an updated admin portal. On the sales and marketing front, we made good progress, although we did face some headwinds driven by the intensity of Omicron and typical Q4 seasonality. One particularly exciting new customer for UMA Office and Q4 is a large fast food franchise group with over 300 users. We also added more than 150 new locations representing nearly 500 users with franchises of a large services firm, bringing us in total now to over 5,000 franchise users with this firm. In hospitality, we landed six new properties in Q4 and are seeing our backlog of opportunities build since the recent launch of our Jazzware integration. We also signed with over 80 new agents and bars in Q4 as part of our continued effort to expand sales through channel partners and resellers. All in, we made good progress expanding our business in Q4. We also accomplished a lot in Q4 to enable our largest customer to roll out at scale to more users. While we know this has been a long time coming, we fully expect that rollout will begin in Q1 and accelerate through the balance of the year. In addition, through our efforts over the last couple of quarters, we have expanded the longer-term scope of opportunity for us with this customer. Our immediate goal, as we stated previously, is to add 25,000 plus users, taking us to 50,000 users approximately in total. And once that is achieved, we anticipate further expansion will follow. Last quarter, we made the exciting announcement that we are introducing UMA Airdial. As you'll recall, Airdial provides analog to digital conversion, remote management, battery backup, and wireless LTE over a controlled network to replace copper lines serving critical building applications. The market reception to Airdial has been strong, and we have already signed multiple resellers. Currently, we have beta units in use at customers and production underway of Airdial units that will be available for sale starting late Q1. We anticipate our biggest challenge through this year will not be demand, but rather our ability to build and supply units. At this time, we are conservatively forecasting Airdial and our business outlook until we have more certainty on market development, our build quantities, and timing. Nonetheless, we see significant upside potential for Airdial and FY23 and are actively working internally to execute on this opportunity. Last quarter, we also made the exciting announcement that T-Mobile will offer UMA Tello to T-Mobile's 5G home internet customers. UMA and T-Mobile are working together to pursue this opportunity, and Tello is the only solution being offered. We are excited by T-Mobile's significant growth plans for home internet and by the continued market demand we see from customers who want to combine internet with home phone. As of now, Tello is included as an add-on option on T-Mobile's website, and joint work is underway to implement other marketing initiatives. We are experiencing sales every day with T-Mobile, but it's still too early to forecast the full potential of this partnership. As we look forward to FY23, we believe we have built a solid foundation for growth. We see ourselves today as a leader in each of our target segments, serving SMB customers, select enterprise applications, and residential customers. We have built a robust and very flexible end-to-end platform that is operating at large scale, serving approximately 2.5 million users today. Online marketing and direct sales are strategic competencies of ours, and we are investing to build our channel reseller sales. Our scope now extends beyond North America to Europe and soon will extend beyond that to other regions of the world. We are increasingly charting our own direction as we broaden our solutions to include integrated services such as UMA Connect, UMA Wi-Fi, and UMA Airdial. Overall, we are not only driving growth but also generating positive cash flow from operations. our accomplishments today create a strong foundation for future growth. Strategically, our vision remains to provide leading communications and related services that deliver advanced features, superior ease of use, and uncommon value to businesses worldwide. As we seek to implement this vision, we are focused in FY23 on five priorities for growth. First, execute to grow sales to business customers. In particular, we intend to launch UMA Office Pro, which is a higher service tier, to expand our sales and marketing activities and to continue to build our brand recognition. Number two, develop new verticals and stronger channel sales. As part of achieving this, we intend to grow the number of agents and VARs we work with and to strengthen our support for channel resellers. Number three, expand in Europe. We'll achieve this in FY23 by rolling out service to a large number of new users as part of our expansion plans with our largest customer. Number four, capitalize on Airdial to replace copper lines that are sunsetting. Our intention is to create both the most extensive solution and the best value solution and be the leader serving this opportunity. And finally, number five, leverage the transition to 4G and 5G internet to drive added growth. With Telo offered by T-Mobile and with UMA Connect, we have the first steps in place to achieve this. As you can see, while we have a lot to accomplish this year, we also have more opportunity in front of us than ever before. I will now turn the call over to Shig, our CFO, to discuss our results and outlook in more detail and then return with some closing remarks.