Ooma, Inc.

Hello, and thank you for standing by. Welcome to ULMA third quarter fiscal year 2025 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 the 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 would now like to hand the conference over to Matthew Robison. You may begin.

Thank you, Tawanda. Good day, everyone, and welcome to the fiscal third quarter 2025 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, Shigamatsu. After the market closed today, UMA issued its fiscal third 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 replaying 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 risk 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. 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 in 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 issues prepared and 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 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 2025 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 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 and 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 Stank.

Thanks, Matt. Hi, everyone. Welcome to UMA's third quarter fiscal year 2025 earnings call. Thanks for joining us. Q3 was a great quarter for UMA, not only financially, but also competitively. I look forward to sharing our results, including two very significant new customer wins we secured in Q3. These new customer wins build on our big wins from Q1 and Q2 of this year and and have us excited as we look forward. Financially, we exceeded expectations in Q3, achieving 65.1 million in revenue, 4.6 million in non-GAAP net income, 5.7 million in adjusted EBITDA, and 8.1 million in cash flow from operations. Each of these is a record result for UMA. On the strength of our 8.1 million in cash flow from operations, We paid off the remaining debt on our credit line shortly after the end of Q3 and are now debt-free. Over the last 12 months, we have paid off $18 million of debt and also bought back $5.2 million of our stock for a combined $23.2 million. Strategically, our efforts to improve operating expense leverage, given the strong product solutions we have built and the synergies afforded by our 2600 Hertz acquisition, are starting to take hold. Looking forward, we believe we can both execute our growth strategy and drive further operating leverage with further improvement in bottom line results in the coming quarters. UMA Business contributed 62% of total revenue in Q3, up from 58% a year ago. Within UMA Business, UMA Office, our UCAS solution for Main Street businesses, and a significant component of UMA business revenue performed well in Q3. We launched new customer engagement features including one-to-many messaging and a website widget for our customers to allow their customers to create online bookings. And we continued to promote our caller info search, messaging templates, expanding set of integrations, and more. Our strategy to enable more advanced features in our premium tiers helped drive the percentage of new users taking a premium tier in Q3 to 60%. It also helped secure a growing number of larger sized customers in Q3 as we work to expand the market opportunity for UMA Office. Regarding Airdial, our solution for POTS replacement, we believe the market is heating up and that contributed to a step up in sales for us in Q3. We learned in Q3 that a large carrier and provider of copper lines is once again implementing price increases. The pricing of copper lines is of course a key driver in customers' decision making to take action and replace them. We also noticed late in Q3 a several fold increase in the number of announcements for copper lines to be shut down in the coming months compared to prior periods this year. Market momentum in combination with our marketing, partner development, and expanding product features, helped us achieve our best quarter yet, and significant growth quarter over quarter for Airdial. We signed several larger customers in Q3, including a couple that we expect will surpass 1,000 lines each. On the partner front for Airdial, we have some very significant news to share. I'm very pleased to report that a top tier national cable company has chosen to resell Airdial. To our knowledge, we are the only provider they are working with at this time, and they want to launch as quickly as possible, which we expect will be in calendar Q1. This is significant because of the large size of this partner, and there are many existing business relationships. It is our understanding that their business strategy encompasses bringing broadband to businesses and moving communications to the Internet. And now with Airdial, they can move the remaining copper lines, which until now were not easily handled. Our partnership gives them a way to continue to take share from other major national carriers who they view as competitors. As you can tell, this is a major win for us and a partner that represents huge potential. I also have a second significant new partner win to share with you. I'm pleased to report we signed an aggregator slash SELEC to resell both Airdial and Tello. You'll recall that we now believe there's also a sizable opportunity in the residential space for POTS replacement, and we believe our Tello solution is ideal for this market. We're thrilled that this aggregator has selected UMA for both their business and their residential needs. Our understanding is this new partner primarily serves business customers and provides around 100,000 copper lines to businesses today. They also provide approximately 10,000 lines to residential customers. This partner has already launched earlier this month with Telo and will be launching soon with Airdial. I also want to give an update on our partnership with the large incumbent local exchange carrier that we announced last quarter. I can tell you now that this customer is Frontier Communications, which of course is one of numerous legacy regional carriers in the US. As you also likely know, Frontier and Verizon recently announced that Verizon intends to acquire Frontier. This development has affected Frontier's launch timing, which may now not be until Frontier can formally start their business planning with Verizon. We believe Frontier continues to view Airdial and Tello as their chosen solutions for POTS replacement, and that longer term, we now also have the exciting opportunity to engage with not only Frontier, but also Verizon. Overall, I'm pleased to report we now have more than 20 total partners contracted to resell Airdial. We believe the two major partner wins we have shared today further validate our strategy to secure large carrier partners for both Airdial and Telo. It is our goal to add new Airdial resale partners each quarter going forward, and we currently have several significant discussions underway. Switching now to 2600Hz, which is our platform used by resellers to create their own solutions, I'm excited to point out our recent press release, which identified Service Titan as the large new customer we won two quarters ago. Service Titan is a $685 million revenue company providing end-to-end workflows for the trades. They recently launched their new Contact Center Pro solution, which utilizes UMA 2600 Hz for enablement. As we've discussed previously, We're thrilled to be working with this marquee customer and look forward to supporting them as they expand and grow their business. 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.