Ooma, Inc.

Good day, and thank you for standing by. Welcome to the UMA, Inc. fourth quarter and fiscal year 2026 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 at this time, at that time, please press star 1-1 on your telephone, and you will hear an automated message advising you your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Matthew Robinson. Please go ahead, sir.

Thank you, Michelle. Good day, everyone, and welcome to the fourth quarter and fiscal year 2026 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 fourth quarter and fiscal 2026 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 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 for the Securities and Exchange Commission. The four 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 first quarter and full year fiscal 2027 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 cost 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 and non-GAAP reconciliation and also provides resolution of GAAP expenses that are excluded from non-GAAP metrics. Before I turn this over to Eric, I'd like you to know that we will participate in the 38th annual Roth Conference at Dana Point on March 23rd and 24th. Now I will hand the call over to UMA CEO Eric Stang.

Thank you, Matt. Hi, everyone. Welcome to UMA's fourth quarter and fiscal 2026 year-end earnings call. Thanks for joining us. We're pleased to report strong Q4 financial results. To update you on our progress integrating our two Q4 acquisitions, FluentStream, and Phone.com, and to discuss our strategy and the positive momentum we see for fiscal 2027. Financially, we're pleased with our Q4 results, which included solid revenue growth and new records for net income, for adjusted EBITDA, and for cash flow from operations. Our adjusted EBITDA in Q4 reached $11.5 million, which equates to 15% of revenue. This result compares favorably to adjusted EBITDA of 11% of revenue just a year ago. Total adjusted EBITDA for fiscal 2026 was 33.9 million, up from 23.2 million the prior year and 19.8 million the year before that. Looking forward, we expect our fiscal 2027 adjusted EBITDA to be comfortably above 40 million. And as we continue to grow and expand our business, we expect our adjusted EBITDA to go even higher, which is strategic to our outlook as higher adjusted EBITDA affords us greater opportunity to make acquisitions, repurchase stock, and invest in business growth. On the business front, we achieved solid growth in Q4, particularly due to our two acquisitions and a record quarter for Airdial. The additions of FluentStream and Phone.com provide us new avenues for growth, as well as the potential to capture significant synergies. Today, we have only just started the process of integrating these acquisitions and making the most of the opportunity they present. Also in Q4, I'm pleased to report that Airdial added more lines than ever before. The number of Q4 Airdial lines installed was more than double the number that we installed in the same quarter a year ago. I'm pleased to say, too, that other parts of UMA also performed well in Q4, particularly our residential solution, Umatello. As was also the case for Q3, Umatello in Q4 added more users than anticipated, such that our total residential user base remained essentially flat in number. All in, Q4 was a strong quarter that positions us well for fiscal year 2027. And looking ahead now to fiscal 2027, I'd like to highlight a handful of our most exciting initiatives. The first is the introduction of AI solutions on our UMA office platform. This quarter, we intend to introduce several new AI solutions for our customers. These include transcription and summarization of calls, the ability to drive insights from call data using third-party AI platforms, such as ChatGPT or others, an AI-powered answering service, and a full AI receptionist solution. The first two of these will be part of our top ProPlus tier of service, helping us to trade up customers to hire ARPU. The second two will be priced independently, in addition to the cost of our current service offerings. Communications is a fertile ground for the use of AI, and we believe AI can bring new business opportunity for UMA. The second initiative I would like to highlight is our plans for Airdial. We are seeing increased market interest as POTS prices continue to rise and the pace of POTS line shutdowns accelerates. AT&T announced POTS line price increases last fall and it signaled there will be further price increases this spring. We're also seeing an increasing number of shutdown announcements with many forecast for late this year. We believe these are quite positive trends that will expand the opportunity for Airdial. In part due to these trends, we added four more Airdial reseller partners in Q4, bringing the total number of partners we have to 41. Some of these partners are switching to UMA from competitive solutions, which we believe also validates the competitive strength of UMA Airdial. And in select cases, our resellers are being driven to act as the cost they pay for the POTS lines they have purchased and resold can even sometimes exceed the revenue they are receiving from their end customers. We are working more closely with our reseller partners than ever before and are seeing them increase their sales and marketing efforts and expand their sales pipelines. It remains our goal to add at least two new reseller partners each quarter, and in total, our goal remains to grow our number of Airdial reseller partners to over 50. As far as we have already come with Airdial, we still believe it is early days. Most of the POTS line shutdowns we have seen and out so far have come from AT&T. We don't see Verizon active yet. We also believe AT&T has years of shutdowns to go. Airdial remains a key investment area for UMA in fiscal 2027, and we expect to continue our fast expansion. The third initiative I'd like to mention is our plans for our recent acquisitions, Fluent Stream and Phone.com, and along with this, our desire to make further acquisitions in the future. In a nutshell, our plans haven't changed from the announcements we made last fall. Fluent Stream is a solid business generating high EBITDA that brings us increased channel strength and another outlet to sell Airdial. Phone.com has low EBITDA today, but we expect it can be dramatically improved through scale economies. And Phone.com also affords us a second small business brand in the market with a name and URL that can be highly leveraged. While it's difficult to forecast the timing and impact, we'll be working through fiscal 2027 to bring UMA's marketing and sales expertise, lean operations, and product strengths to Phone.com. As a reminder, we were able to acquire both Fluent Stream and Phone.com at prices that made their acquisitions accretive just one quarter forward. We believe acquisitions such as these provide highly cost-effective business expansion. It is a goal of ours for fiscal 2027 to move quickly to pay down the debt we assumed for our recent acquisitions and to make further acquisitions. At this time in our industry, we believe UMA is well positioned to do so, and there are many targets to consider. For fiscal 2027, I would like also to comment on our residential business. As I mentioned above, tele-sales the last two quarters have been remarkably robust. We believe there are three main drivers for this. One is POTS lines are also going away in the residential space. A second is wireless 5G home internet, which allows more consumers to unbundle internet from telephony. And a third is the desire of parents to give their younger kids a phone but avoid screen time. There's a movement happening among parents to wait until eighth grade before letting a child receive a smartphone. UMA's family bundle, consisting of the UMA Tello and a family-friendly phone, is one way families use our solutions. In fiscal 2027, we intend to launch a new product called My Phone, which we hope parents will find particularly attractive for use by younger people in the home. We'll have more to say on this as our strategy unfolds. We believe fiscal 2027 is shaping up nicely for us with upside opportunities in each of the four areas I've just mentioned and more. We also believe we are going into fiscal 2027 in our strongest position ever. UMA now serves over 1.4 million core users, is growing solidly, has over $290 million in annual exit recurring revenue, is achieving approximately 99% net dollar retention, and is driving meaningful double-digit adjusted EBITDA as a percent of revenues. With our growth and significantly improved adjusted EBITDA, we have built a more valuable company. We're dismayed that our advances have not yet translated into a meaningfully higher market capitalization, but we're also confident that that will come in time. Our strong position in each of our four business areas, the market momentum we see in our favor, especially for Airdial, the great strategic partners we have secured who are helping propel our growth, our potential for further accretive acquisitions to layer on additional inorganic growth, In our estimation that UMA can continue to increase adjusted EBITDA and become more profitable in the future, all have us excited about the road ahead. I'll 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.