Ooma, Inc.

Hello, and welcome to UMA third quarter fiscal year 2024 financial results. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask the question during this session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. I will now like to hand the conference over to Matt Robinson, so you may begin.

Thank you, Tawanda. Good day, everyone, and welcome to the fiscal third quarter 2024 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, Shig Hamamatsu. After the market closed today, UMA issued its fiscal third quarter 2024 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 one year. 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 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 with 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. 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 fourth quarter and full year fiscal 2024 on a non-GAAP basis. Also, in addition to our press release and 8K filing, the overview page and events and presentations page in the investor section of our website, as well as the quarterly results page of the financial information 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 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 third quarter fiscal year 2024 earnings call. Thanks for joining us. I can report that Q3 was another strong quarter for UMA. We performed well financially and made a major advance by acquiring 2,600 Hertz during the quarter. I look forward to reviewing our progress with you. Our Q3 results include 59.9 million in revenue, 4 million of non-GAAP net income, and $5 million of EBITDA. Organically for Q3, which is to say excluding the impact of 2,600 Hertz, we increased our business subscription and services revenue 14% year over year. We held our OPEX spending nearly flat to a year ago, and we grew our EBITDA by 17% versus Q3 last year. Our annual exit recurring revenue, including 2,600 Hertz, is now $225 million. We feel these results demonstrate good progress for the company and strong performance for the quarter. During Q3, we continued to pursue the strategies we have outlined throughout this year to expand UMA's revenues from business customers. UMA Office, our award-winning solution for small to medium-sized businesses, added premium features and new integrations. One of our most exciting new integrations is with Clio, the number one software used in the legal industry. Users of Clio can now integrate their UMA calling and communications with their Clio experience. This integration is available as part of UMA's ProPlus service tier and contributes to our long-term strategy of increasing our premium office users and raising our average revenue per user. I'm pleased to report that in Q3, we once again sequentially increased our ARPU from business customers. I'm also pleased to report that 56% of our new office customers were premium users and that premium users now make up 28% of our total office customer base. It was exciting in Q3 to announce finally the name of our largest customer, International Workplace Group or IWG, which is also known by the name Regus. We made the announcement in conjunction with the launch of our services for IWG in Asia. In Q3, we rolled out our platform for the Africa region and started serving IWG in South Africa. In total, We now serve IWG in 30 countries across five different regions, and we are working with them to expand further. We anticipate slower international expansion in Q4 given the holidays, followed by a pickup in Q1 as we roll out to new countries throughout the first half of next year. Outside of North America, we also expanded with UMA Enterprise, which began serving a new customer with locations spread across Australia, Netherlands, Spain, and the UK, in addition, of course, to here in the USA. In our targeted hospitality vertical, we once again landed over 50 new hospitality locations, the largest of which being a property with 474 rooms, and another being our second airport hotel. In general, we believe our strategy and enterprise to focus on select verticals is giving us advantages in the market. In Q3, we continued to pursue our Airdial strategy aggressively. In particular, we hired additional sales personnel and signed a total of four new Airdial resellers, one of which, TouchTone Communications, we announced in a press release. These resellers join a number of others we are already partnered with for Airdial, including T-Mobile and more recently, U.S. Cellular. We also announced that Viking Electronics, who is a manufacturer of more than 500 security and communications products, including emergency phones, entry systems, elevator phones, and campus safety phones, began recommending Airdial to its customers and distributors after performing their own extensive testing of Airdial. As we've mentioned, we believe Airdial offers the best solution in the marketplace for replacing increasingly expensive and soon to be decommissioned copper lines that are connected to elevators, fire and alarm panels, older PBX equipment, and more. We are thrilled by the validation we are seeing by the many resellers we have signed up for Airdial. We are also thrilled to have announced in Q3 that Elevator World Magazine, the leading media voice in the vertical transportation industry, selected UMA for the 2023 LEs Awards in the category of Best Communication System Supplier, honoring the UMA Airdial solution for POTS replacement. We're not standing still either in our continued improvement of Airdial. Just recently, we announced that Airdial now incorporates UMA's patented multi-path technology. Multipath creates a continuous dual connection between Airdial and the public switched telephone network by transmitting data packets simultaneously through two separate data links. Unlike other approaches where calls are dropped on failover, where there can be delays before failover occurs, and where other issues can occur related to the quality of individual transport links, UMA's multipath technology provides seamless backup for customers who enable two internet connections to their Airdial device. Multipath provides one more example of how UMA stands out by providing the full end-to-end Airdial solution encompassing both cloud and customer premise equipment. While not announced, we also made additional improvements in Q3 to Airdial's Remote Device Manager, or RDM as we call it. RDM gives our Airdial customers the ability to provision, monitor, manage, and control all of their Airdial devices from one portal. We view RDM as another key differentiator for Airdial. I'm pleased to report that in Q3, we landed what we expect will become are two largest Airdial customers today. One of these customers is a large retailer with many individual brands. We've already started rolling out Airdial to one brand of stores owned by this customer where we are displacing another POTS replacement solution. We expect this rollout is just phase one with this customer. The other customer is a provider in the elevator industry with access to a very large number of opportunities. I'm pleased to report our backlog of potential sales opportunities grew again in Q3, and we have many large opportunities that we are pursuing. I'd like to turn now to 2600 Hertz, which is the new business we acquired back in October. As a reminder, 2600 Hertz provides open source, core calling functionality named Kazoo, that is in use today by many telecom providers. Since initially launching Kazoo over a decade ago, 2600Hz has also expanded to provide its own non-open source suite of pre-built UCaaS, CPaaS, and call center applications. Telecom providers have the choice of relying solely on open source Kazoo and building applications themselves, or contracting with 2600Hz for a more complete solution. 2600 Hertz today provides hosted cloud, private cloud, and customer hosted solutions to approximately 130 paying customers who serve hundreds of thousands of end users. The company runs data centers in eight locations spread across North America, Europe, and Oceania, maintains a workforce of about 100 employees and contractors, and has revenues of approximately $7 million annually. Three main reasons drove our decision to acquire 2600 Hertz. We made this acquisition to capitalize on the opportunity we see in the wholesale marketplace, to unlock significant operational benefits between UMA and 2600 Hertz, and to enhance UMA's strategic position and ability to serve the fundamental needs of large carriers and other partners. It's now been about six weeks since 2,600 hertz became part of UMA. In that time, we have blended our two teams together, rationalized spending in certain areas, and established our new combined strategy. Central to our strategy is to strengthen 2,600 hertz in the marketplace by leveraging UMA's application technology, scale, and low-cost position, and by launching new services. We are now actively working internally to provide 2,600 hertz customers telecom services delivered in a CPaaS business model. We're also working to leverage some of UMA's key user applications for the benefit of 2,600 hertz customers. 2,600 hertz' customer base has responded with positive feedback on our acquisition. They are excited about our strategic direction and the intellectual property and resources we bring as a larger scale and more mature organization. Similarly, we already have active conversations underway with a number of possible new customers. These conversations will take time as possible customers evaluate Kazoo and get to know us, but we are optimistic about their potential. Overall, I believe our integration with 2600 Hertz is going well, and we are on track, as promised, to make the acquisition adjusted EBITDA-creative to UMA within six months. Finally, I'm thrilled to mention that the publication you see today recently named the Consu communications solution from 2600 Hertz as the best white label solution at the prestigious UC Partner Awards 2023. Kazoo was chosen by a panel of 12 leading analysts in the cloud communications industry from a field of four finalists. Of course, we're not surprised since we know Kazoo's modern API-based architecture sets it apart in the industry. With that, 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.