Ooma, Inc.

Thank you for standing by, and welcome to UMA's second quarter fiscal year 2025 financial results conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. To remove yourself from the queue, you may press star 1 1 again. I would now like to hand the call over to Matt Robison, and investor relations. Please go ahead.

Thank you, Lateef. Good day, everyone, and welcome to the fiscal second quarter 2025 earnings call of UMA, Inc. My name is Matt Robinson, and I'm the 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 second quarter 2025 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 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 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 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, 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 a third quarter and a full year fiscal 2025 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 second quarter fiscal year 2025 earnings call. Thanks for joining us. We have great results to present for Q2 and new developments to report as we look ahead. I look forward to reviewing our progress and outlook with you. Financially, Q2 was a strong quarter as we outperformed on all of our major financial goals. Q2 revenue was $64.1 million and Q2 non-GAAP net income was $4.1 million. Both results were above guidance and up nicely versus Q1 of this year. Q2 cash flow from operations was $7.1 million, which is close to double what we achieved both in Q1 of this year and in Q2 a year ago. With the improved cash flow, we were able to reduce our debt by $3 million in the quarter to $8.5 million at the end of Q2. We also spent approximately $1.8 million in Q2 to repurchase stock to help offset dilution from vesting of stock grants. It's great to be ahead of where we thought we would be financially at this point in our fiscal year. As in Q1, UMA Business, which comprises our UCAS POPs replacement, and wholesale solutions performed well in Q2. UMA Office, our small business UCAS solution, was buoyed by new feature releases, including several customer engagement features to enable our customers to connect more effectively with their customers, and two new integrations, one with Square and the other with Intuit QuickBooks. The release of features such as these helps enable UMA Office customers to trade up to a higher-priced service tier, and also expands the appeal of UMA Office to businesses of a larger size. In this vein, we're excited about our development roadmap for UMA Office, which includes leveraging the capabilities of our 2600 Hz acquisition to launch more sophisticated call center features later this year. UMA Airdial, our POTS replacement solution, also made good progress in Q2. We further enhanced our differentiation versus other solutions with the launch in Q2 of Call Alerts, which informs customers when Airdial calls are placed and can be of critical value in life safety applications. We believe we are the only POTS replacement provider to offer this feature. Likewise, our investment to expand our sales and marketing reach is generating more opportunities and sales momentum. Once again, in Q2, we closed more new customers for Airdial than any previous quarter. As in prior quarters, we also added new Airdial resellers in Q2. Here I have some special news. We have been told by an incumbent local exchange carrier that they plan to resell Airdial beginning later this year. This is exciting because of the size and scope of this new partner, who we believe is one of the top 10 largest service providers in America. As a large incumbent carrier, they have a vast number of customers they serve today with POTS lines that will ultimately need to be replaced. We expect to be able to provide more detail about this, including the timing for launch, on our third quarter conference call. We believe this is a breakout win for Airdial. 2600Hz, our wholesale and developing CPaaS solution, saw expanded customer interest in Q2 both domestically and internationally. We are increasingly excited by the level of interest in the 2600Hz platform and scope of market opportunity, in part due to the MetaSwitch end-of-life announcement and the effect this is having in the marketplace. We believe the leading capabilities of the 2600Hz platform, the enhancements we are making by integrating UMA technology and applications into the platform, And the steps we are taking to broaden the platform to serve select CPaaS applications are all driving strong customer interest. As well, the aging nature of competitive platforms is driving market opportunity. You'll recall we announced a very large customer win for 2600 Hertz last quarter and believe this customer will become one of our largest customers in the future. I'm pleased to report that we are on track to launch with this customer this fall. I'm also pleased to report that in Q2, this customer chose to expand the scope of our relationship and adopt more capabilities of the 2600Hz platform than originally envisaged. We were able to upsell this customer to a more turnkey solution thanks to our efforts to integrate UMA applications and technology into the 2600 Hertz platform. While this customer is of course receiving a lot of our attention, I'm also pleased to report they are not the only new 2600 Hertz customer we expect to roll out with this fall, and we see a significant and growing pipeline of opportunity. It's difficult to perceive the revenue we will drive in the back half of this year from 2600 Hertz expansion, but we anticipate positive momentum. On the residential front, Umatello also performed well in Q2. We remain excited about the residential market opportunity, especially now that residential POTS lines are also increasing in cost and starting to sunset. We believe Tello can be an ideal solution to replace residential copper lines. In this regard, I'm extremely pleased to report that the large incumbent local exchange carrier I mentioned earlier, has also told us that they plan to replace the residential copper lines across their business with Umatello, and they are actively engaged with us to start doing so. Together, we have selected one local market to launch this fall as a test to refine the deployment process. We anticipate this carrier will resell the Tello solution and convert their residential copper base over time. We expect this first market rollout to begin late in our Q3. We expect to be able to provide more information on our next earnings call. While we don't yet have clear visibility to predict the impact of this on our business, we can say that the market potential afforded by this carrier is very large indeed and is meaningful relative to the size of our current residential business. Before I turn it over to Shig, I'd like to make one more comment about UMA's strategic direction. We are fortunate to have invested in several premier solutions with tremendous market potential. In doing so, we have spent heavily on creating these solutions and developing our current strategic position. As such, as we look forward, we feel we are reaching a turning point where we can increasingly capitalize on the investments we've made and the market opportunity they afford. In this regard, we also anticipate that we can drive increased bottom line results as we endeavor to capitalize on our competitive advantage and succeed in our target markets. Now I'll turn the call over to Shig, our CFO, to discuss our results and outlook in more detail and then return with some closing remarks.