Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 31, 2022 | Aug. 31, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | OOMA | |
Entity Registrant Name | Ooma Inc | |
Entity Central Index Key | 0001327688 | |
Current Fiscal Year End Date | --01-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 24,300,000 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-37493 | |
Entity Tax Identification Number | 06-1713274 | |
Entity Address, Address Line One | 525 Almanor Avenue | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Sunnyvale | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94085 | |
City Area Code | 650 | |
Local Phone Number | 566-6600 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, par value $0.0001 | |
Security Exchange Name | NYSE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | DE |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jul. 31, 2022 | Jan. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 16,192 | $ 19,667 |
Short-term investments | 6,277 | 11,613 |
Accounts receivable, net | 6,592 | 7,310 |
Inventories | 21,075 | 13,841 |
Other current assets | 14,968 | 13,598 |
Total current assets | 65,104 | 66,029 |
Property and equipment, net | 7,698 | 6,481 |
Operating lease right-of-use assets | 14,663 | 14,396 |
Intangible assets, net | 11,690 | 4,208 |
Goodwill | 8,695 | 4,264 |
Other assets | 15,132 | 13,875 |
Total assets | 122,982 | 109,253 |
Current liabilities: | ||
Accounts payable | 12,968 | 7,507 |
Accrued expenses and other current liabilities | 22,904 | 22,823 |
Deferred revenue | 17,686 | 16,600 |
Total current liabilities | 53,558 | 46,930 |
Long-term operating lease liabilities | 11,076 | 11,194 |
Other long-term liabilities | 48 | 73 |
Total liabilities | 64,682 | 58,197 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity: | ||
Common stock | 5 | 4 |
Additional paid-in capital | 187,571 | 179,860 |
Accumulated other comprehensive loss | (60) | (20) |
Accumulated deficit | (129,216) | (128,788) |
Total stockholders’ equity | 58,300 | 51,056 |
Total liabilities and stockholders’ equity | $ 122,982 | $ 109,253 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Revenue: | ||||
Total revenue | $ 52,653,000 | $ 47,057,000 | $ 102,990,000 | $ 92,629,000 |
Cost of revenue: | ||||
Total cost of revenue | 18,836,000 | 17,754,000 | 37,221,000 | 35,244,000 |
Gross profit | 33,817,000 | 29,303,000 | 65,769,000 | 57,385,000 |
Operating expenses: | ||||
Sales and marketing | 17,432,000 | 14,331,000 | 33,583,000 | 28,347,000 |
Research and development | 11,119,000 | 9,416,000 | 21,617,000 | 18,723,000 |
General and administrative | 6,912,000 | 6,014,000 | 12,974,000 | 11,739,000 |
Total operating expenses | 35,463,000 | 29,761,000 | 68,174,000 | 58,809,000 |
Loss from operations | (1,646,000) | (458,000) | (2,405,000) | (1,424,000) |
Interest and other income, net | 17,000 | 19,000 | 50,000 | 98,000 |
Loss before income taxes | (1,629,000) | (439,000) | (2,355,000) | (1,326,000) |
Income tax benefit | 1,967,000 | 0 | 1,927,000 | 0 |
Net income (loss) | $ 338,000 | $ (439,000) | $ (428,000) | $ (1,326,000) |
Net income (loss) per share of common stock: | ||||
Net income (loss) per share of common stock, Basic | $ 0.01 | $ (0.02) | $ (0.02) | $ (0.06) |
Net income (loss) per share of common stock, Diluted | $ 0.01 | $ (0.02) | $ (0.02) | $ (0.06) |
Weighted-average shares of common stock outstanding: | ||||
Weighted-average shares of common stock outstanding, Basic | 24,388,275 | 23,359,715 | 24,254,465 | 23,209,151 |
Weighted-average shares of common stock outstanding, Diluted | 24,873,764 | 23,359,715 | 24,254,465 | 23,209,151 |
Subscription and services | ||||
Revenue: | ||||
Total revenue | $ 47,995,000 | $ 43,537,000 | $ 94,718,000 | $ 85,502,000 |
Cost of revenue: | ||||
Total cost of revenue | 12,675,000 | 12,326,000 | 25,884,000 | 24,665,000 |
Product and other | ||||
Revenue: | ||||
Total revenue | 4,658,000 | 3,520,000 | 8,272,000 | 7,127,000 |
Cost of revenue: | ||||
Total cost of revenue | $ 6,161,000 | $ 5,428,000 | $ 11,337,000 | $ 10,579,000 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (428) | $ (1,326) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Stock-based compensation expense | 6,842 | 6,515 |
Depreciation and amortization of capital expenditures | 1,739 | 1,548 |
Amortization of intangible assets | 698 | 652 |
Amortization of operating lease right-of-use assets | 1,449 | 1,531 |
Deferred income tax benefit | (2,043) | |
Other | 26 | 24 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 973 | 400 |
Inventories and deferred inventory costs | (7,158) | (1,600) |
Prepaid expenses and other assets | (2,326) | (3,007) |
Accounts payable, accrued expenses and other liabilities | 2,690 | (2,127) |
Deferred revenue | 520 | 384 |
Net cash provided by operating activities | 2,982 | 2,994 |
Cash flows from investing activities: | ||
Proceeds from maturities and sales of short-term investments | 9,125 | 9,900 |
Purchases of short-term investments | (3,869) | (8,859) |
Capital expenditures | (2,812) | (1,742) |
Business acquisition | (9,771) | |
Net cash used in investing activities | (7,327) | (701) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 1,554 | 1,621 |
Net cash provided by financing activities | 870 | 476 |
Net (decrease) increase in cash and cash equivalents | (3,475) | 2,769 |
Cash and cash equivalents at beginning of period | 19,667 | 17,298 |
Cash and cash equivalents at end of period | 16,192 | 20,067 |
Restricted Stock Units (RSUs) | ||
Cash flows from financing activities: | ||
Shares repurchased for tax withholdings on vesting of restricted stock units ("RSU") | $ (684) | $ (1,145) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common stock and APIC | [1] | AOCL | [2] | Accumulated Deficit |
BALANCE at Jan. 31, 2021 | $ 39,551 | $ 166,581 | $ 7 | $ (127,037) | ||
Issuance of common stock under equity-based plans | 1,469 | 1,469 | ||||
Shares repurchased for tax withholdings on RSU vesting | (485) | (485) | ||||
Stock-based compensation | 3,194 | 3,194 | ||||
Changes in other comprehensive income (loss) | (4) | (4) | ||||
Net income (loss) | (887) | (887) | ||||
BALANCE at Apr. 30, 2021 | 42,838 | 170,759 | 3 | (127,924) | ||
BALANCE at Jan. 31, 2021 | 39,551 | 166,581 | 7 | (127,037) | ||
Net income (loss) | (1,326) | |||||
BALANCE at Jul. 31, 2021 | 45,210 | 173,572 | 1 | (128,363) | ||
BALANCE at Apr. 30, 2021 | 42,838 | 170,759 | 3 | (127,924) | ||
Issuance of common stock under equity-based plans | 152 | 152 | ||||
Shares repurchased for tax withholdings on RSU vesting | (660) | (660) | ||||
Stock-based compensation | 3,321 | 3,321 | ||||
Changes in other comprehensive income (loss) | (2) | (2) | ||||
Net income (loss) | (439) | (439) | ||||
BALANCE at Jul. 31, 2021 | 45,210 | 173,572 | 1 | (128,363) | ||
BALANCE at Jan. 31, 2022 | 51,056 | 179,864 | (20) | (128,788) | ||
Issuance of common stock under equity-based plans | 1,554 | 1,554 | ||||
Shares repurchased for tax withholdings on RSU vesting | (348) | (348) | ||||
Stock-based compensation | 3,337 | 3,337 | ||||
Changes in other comprehensive income (loss) | (39) | (39) | ||||
Net income (loss) | (766) | (766) | ||||
BALANCE at Apr. 30, 2022 | 54,794 | 184,407 | (59) | (129,554) | ||
BALANCE at Jan. 31, 2022 | 51,056 | 179,864 | (20) | (128,788) | ||
Net income (loss) | (428) | |||||
BALANCE at Jul. 31, 2022 | 58,300 | 187,576 | (60) | (129,216) | ||
BALANCE at Apr. 30, 2022 | 54,794 | 184,407 | (59) | (129,554) | ||
Shares repurchased for tax withholdings on RSU vesting | (336) | (336) | ||||
Stock-based compensation | 3,505 | 3,505 | ||||
Changes in other comprehensive income (loss) | (1) | (1) | ||||
Net income (loss) | 338 | 338 | ||||
BALANCE at Jul. 31, 2022 | $ 58,300 | $ 187,576 | $ (60) | $ (129,216) | ||
[1] Additional paid-in capital Accumulated other comprehensive (loss) income |
Overview
Overview | 6 Months Ended |
Jul. 31, 2022 | |
Accounting Policies [Abstract] | |
Overview | N ote 1: Overview Ooma, Inc. and its wholly-owned subsidiaries (collectively, “Ooma” or the “Company”) provides leading communications services and related technologies for businesses and consumers, delivered from its smart software-as-a-service (“SaaS”) and unified communications platforms. The Company is headquartered in Sunnyvale, California. On July 22, 2022, the Company completed the acquisition of Junction Networks, Inc., which does business as OnSIP, a provider of cloud-based phone and unified communications services for small and mid-size businesses. See Note 13: Business Acquisition . Fiscal Year. The Company’s fiscal year ends on January 31. References to fiscal 2023 and fiscal 2022 refer to the fiscal year ending January 31, 2023 and the fiscal year ended January 31, 2022, respectively. Basis of Presentation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet as of January 31, 2022 included herein was derived from the audited financial statements as of that date, but does not include all the disclosures required by GAAP. Therefore, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2022 filed with the SEC on April 8, 2022 (“Annual Report”). The accompanying condensed consolidated financial statements reflect all normal recurring adjustments that management believes are necessary for a fair presentation of the interim periods presented. The results for the three and six months ended July 31, 2022 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending January 31, 2023. Principles of Consolidation. The condensed consolidated financial statements include the accounts of Ooma, Inc. and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Comprehensive Income (Loss). For all periods presented, comprehensive income (loss) approximated net income (loss) in the condensed consolidated statements of operations and differences were not material. Therefore, the condensed consolidated statements of comprehensive income (loss) have been omitted. Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the Company’s condensed consolidated financial statements and notes thereto. Significant estimates include, but are not limited to, those related to revenue recognition, inventory valuation, deferred sales commissions, valuation of goodwill and intangible assets, operating lease assets and liabilities, regulatory fees and indirect tax accruals, loss contingencies, stock-based compensation and income taxes (including valuation allowances). The Company bases its estimates and assumptions on historical experience, where applicable, and other factors that it believes to be reasonable under the circumstances. These estimates are based on information available as of the date of the consolidated financial statements, and assumptions are inherently subjective in nature. Therefore, actual results could differ from management’s estimates. Significant Accounting Policies. Except for the addition of business combinations below, there have been no material changes to the Company’s significant accounting policies from those disclosed in the Annual Report. Business Combinations . The Company accounts for its business combinations using the acquisition method of accounting. The purchase consideration is allocated to the assets acquired and liabilities assumed from the acquiree based on their respective fair values as of the acquisition date. The excess of the fair value of purchase consideration over the fair value of these assets acquired and liabilities assumed is recorded as goodwill. Management is required to make significant estimates and assumptions in determining fair values, especially with respect to intangible assets. Significant judgments and estimates in valuing intangible assets include, but are not limited to, the selection of valuation methodologies, expected future revenue and cash flows, expected customer attrition rates from acquired customers, future changes in technology, and discount rates. Fair value estimates are based on the assumptions that management believes a market participant would use in pricing the asset or liability. These estimates are inherently uncertain and, therefore, actual results may differ from the estimates made. As a result, during the measurement period of up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill as information on the facts and circumstances that existed as of the acquisition date becomes available. Upon the conclusion of the measurement period or final determination of the fair value of the purchase price of an acquisition, whichever comes first, any subsequent adjustments are recorded in the consolidated statements of operations. |
Revenue and Deferred Revenue
Revenue and Deferred Revenue | 6 Months Ended |
Jul. 31, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Revenue and Deferred Revenue | Note 2: Revenue and Deferred Revenue The Company derives its revenue from two sources: Subscription and Services Revenue is derived primarily from recurring subscription fees related to service plans such as Ooma Business, Ooma Residential and other communications services. Service plans are generally sold as monthly subscriptions; however, certain plans are also offered as annual and multi-year subscriptions, typically ranging up to three years. Subscription revenue is generally recognized ratably over the contractual service term. Product and Other Revenue is generated primarily from the sale of on-premise appliances and end-point devices, including shipping and handling fees for direct customers. The Company recognizes product and other revenue from sales to direct end-customers and channel partners at the point-in-time that control transfers, which is typically when it delivers the product. Revenue disaggregated by revenue source consisted of the following (in thousands): Three Months Ended Six Months Ended July 31, July 31, July 31, July 31, Subscription and services revenue $ 47,995 $ 43,537 $ 94,718 $ 85,502 Product and other revenue 4,658 3,520 8,272 7,127 Total revenue $ 52,653 $ 47,057 $ 102,990 $ 92,629 The Company derived approximately 50 % and 48 % of its total revenue from Ooma Business and approximately 47 % and 50 % from Ooma Residential for the three months ended July 31, 2022 and 2021, respectively. The Company derived approximately 50 % and 47 % of its total revenue from Ooma Business and approximately 47 % and 50 % from Ooma Residential for the six months ended July 31, 2022 and 2021, respectively. No individual country outside of the United States, and no single customer, represented 10% or more of total revenue for the periods presented. Customers who represented 10% or more of net accounts receivable were as follows: As of July 31, January 31, Customer A 16 % 19 % Customer B * 11 % * Less than 10 % of net accounts receivable for the period indicated. Deferred Revenue primarily consists of billings or payments received in advance of meeting revenue recognition criteria. Deferred services revenue is recognized on a ratable basis over the term of the contract as the services are provided. As of July 31, January 31, Subscription and services $ 17,671 $ 16,614 Product and other 63 59 Total deferred revenue $ 17,734 16,673 Less: current deferred revenue 17,686 16,600 Non-current deferred revenue included in other long-term liabilities $ 48 $ 73 During the three and six months ended July 31, 2022, the Company recognized revenue of approximately $ 3.0 million and $ 13.0 million, respectively, pertaining to amounts deferred as of January 31, 2022. As of July 31, 2022, deferred revenue was primarily composed of subscription contracts invoiced during the first half of fiscal 2023, as well as amounts recorded during fiscal 2022 for annual contracts. Remaining Performance Obligations. As of July 31, 2022, contract revenue that had not yet been recognized for open contracts with an original expected length of greater than one year was approximately $ 10.5 million. The Company expects to recognize revenue on approximately 52 % of this amount over the next 12 months, with the balance to be recognized thereafter. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 3: Fair Value Measurements The Company estimates and categorizes fair value by applying the following hierarchy: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2: Observable prices based on inputs not quoted in active markets, but are corroborated by market data. Level 3: Unobservable inputs that are supported by little or no market activity. Financial assets measured at fair value on a recurring basis by level were as follows (in thousands): Balance as of July 31, 2022 Level 1 Level 2 Total Cash and cash equivalents: Money market funds $ 6,609 $ — $ 6,609 U.S. treasury securities 1,001 — 1,001 Total cash equivalents $ 7,610 $ — 7,610 Cash 8,582 Total cash and cash equivalents $ 16,192 Short-term investments: U.S. treasury securities $ 2,462 $ — $ 2,462 Corporate debt securities — 3,815 3,815 Total short-term investments $ 2,462 $ 3,815 $ 6,277 Balance as of January 31, 2022 Level 1 Level 2 Total Cash and cash equivalents: Money market funds $ 2,275 $ — $ 2,275 Total cash equivalents $ 2,275 $ — 2,275 Cash 17,392 Total cash and cash equivalents $ 19,667 Short-term investments: U.S. treasury securities $ 7,065 $ — $ 7,065 Commercial paper — 4,548 4,548 Total short-term investments $ 7,065 $ 4,548 $ 11,613 The Company classifies its cash equivalents and short-term investments within Level 1 or Level 2 because it uses quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value. The Company has no Level 3 assets or liabilities. For the periods presented, the amortized cost of cash equivalents and marketable securities approximated their fair value and there were no material realized or unrealized gains or losses, either individually or in the aggregate. Contractual maturities of short-term investments were as follows (in thousands): As of July 31, January 31, Due in one year or less $ 5,793 $ 10,377 Due after one year to two years 484 1,236 Total $ 6,277 $ 11,613 |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended |
Jul. 31, 2022 | |
Balance Sheet Components [Abstract] | |
Balance Sheet Components | Note 4: Balance Sheet Components The following sections and tables provide details of selected balance sheet items (in thousands): Inventories As of July 31, January 31, Finished goods $ 12,196 $ 10,452 Raw materials 8,879 3,389 Total inventory $ 21,075 $ 13,841 Other current and non-current assets As of July 31, January 31, Deferred sales commissions, current $ 7,036 $ 6,395 Inventory prepayments 2,516 1,462 Convertible note receivable (see "GTC" below) 1,865 1,773 Prepaid expenses and other 3,551 3,968 Total other current assets $ 14,968 $ 13,598 Deferred sales commissions, non-current $ 13,396 $ 13,228 Other assets 1,736 647 Total other non-current assets $ 15,132 $ 13,875 Customer Acquisition Costs . Amortization expense for deferred sales commissions was $ 1.8 million and $ 1.4 million for the three months ended July 31, 2022 and 2021, respectively, and $ 3.6 million and $ 2.8 million for the six months ended July 31, 2022 and 2021, respectively. There was no impairment in relation to the costs capitalized for the periods presented. Global Telecom Corporation (“GTC”). In December 2018, the Company invested $ 1.3 million in cash in GTC, a privately-held technology company, in exchange for a convertible promissory note that will convert to shares of GTC stock upon the occurrence of certain future events. As amended, the promissory note and accrued interest is due and payable upon the Company’s demand at any time after September 30, 2022. GTC is a variable interest entity for accounting purposes and the Company does not consolidate GTC into its financial statements because the Company is not the primary beneficiary. As of July 31, 2022, the Company’s maximum exposure to loss is equal to the carrying value of the convertible note receivable of $ 1.9 million, including accrued interest. During the six months ended July 31, 2022, the Company made total payments to GTC of approximately $ 2.3 million for inventory purchases and related shipping costs. As of July 31, 2022, the Company did no t have any non-cancelable inventory purchase commitments to GTC. Accrued expenses and other current liabilities As of July 31, January 31, Payroll and related expenses $ 8,907 $ 10,853 Regulatory fees and taxes 3,991 3,933 Short-term operating lease liabilities 3,711 3,260 Customer-related liabilities 1,457 1,587 Other 4,838 3,190 Total accrued expenses and other current liabilities $ 22,904 $ 22,823 |
Acquired Intangible Assets and
Acquired Intangible Assets and Goodwill | 6 Months Ended |
Jul. 31, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Acquired Intangible Assets and Goodwill | Note 5: Acquired Intangible Assets and Goodwill For the three and six months ended July 31, 2022, the Company recognized intangibles of $ 8.2 million and goodwill of $ 4.4 million in connection with a business acquisition completed in July 2022. See Note 13: Business Acquisition . The carrying amount of goodwill was $ 8.7 million and $ 4.3 million as of July 31, 2022 and January 31, 2022, respectively. The gross value, accumulated amortization and carrying values of intangible assets were as follows (in thousands): As of July 31, 2022 As of January 31, 2022 Estimated life Gross Accumulated Amortization Carrying Gross Accumulated Amortization Carrying Customer relationships 5 - 7 $ 14,395 $ ( 3,467 ) $ 10,928 $ 6,735 $ ( 2,921 ) $ 3,814 Developed technology 2 - 5 2,209 ( 1,688 ) 521 1,809 ( 1,584 ) 225 Trade names 2 - 5 684 ( 443 ) 241 564 ( 395 ) 169 Total intangible assets $ 17,288 $ ( 5,598 ) $ 11,690 $ 9,108 $ ( 4,900 ) $ 4,208 Amortization expense for acquired intangible assets was $ 0.4 million and $ 0.3 million for the three months ended July 31, 2022 and 2021, respectively, and $ 0.7 million for each of the six months ended July 31, 2022 and 2021. At July 31, 2022, the estimated future amortization expense for intangible assets is as follows (in thousands): Fiscal Years Ending January 31, Total 2023 remainder $ 1,548 2024 2,732 2025 2,507 2026 2,365 2027 1,810 Thereafter 728 Total $ 11,690 |
Operating Leases
Operating Leases | 6 Months Ended |
Jul. 31, 2022 | |
Leases [Abstract] | |
Operating Leases | Note 6: Operating Leases The Company leases its headquarters located in Sunnyvale, California, as well as office and data center space in various locations under non-cancelable operating lease agreements. Supplemental balance sheet information related to leases was as follows (in thousands): As of July 31, January 31, Assets Operating lease right-of-use assets $ 14,663 $ 14,396 Total leased assets $ 14,663 $ 14,396 Liabilities Short-term operating lease liabilities $ 3,711 $ 3,260 Long-term operating lease liabilities 11,076 11,194 Total lease liabilities $ 14,787 $ 14,454 Weighted-average remaining lease term 5.1 years 5.8 years Weighted-average discount rate 3.8 % 3.7 % Operating lease right-of-use assets and long-term operating lease liabilities are included on the face of the condensed consolidated balance sheet. Short-term operating lease liabilities are included in other current liabilities. The Company incurred total lease costs in its consolidated statements of operations of $ 1.2 million for each of the three months ended July 31, 2022 and 2021 and $ 2.4 million for each of the six months ended July 31, 2022 and 2021. Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended Six Months Ended July 31, July 31, July 31, July 31, Cash payments for operating leases $ 825 $ 983 $ 1,647 $ 1,964 Right-of-use assets recognized in exchange for new operating lease obligations $ 1,401 $ 9,514 $ 1,717 $ 9,827 As of July 31, 2022, maturities of lease liabilities under non-cancelable operating leases were as follows (in thousands): Fiscal Years Ending January 31, July 31, 2022 2023 remainder $ 1,791 2024 3,684 2025 3,650 2026 1,940 2027 1,684 Thereafter 3,555 Total future minimum lease payments 16,304 Less: imputed interest ( 1,517 ) Present value of lease liabilities $ 14,787 Additionally, in August 2022, the Company entered into a new operating lease agreement to expand its customer contact center and warehouse facilities in Newark, California to scale with the Company's business growth. The lease commencement date is expected to occur on or before March 1, 2023. The lease expiration date will be 10 years after the commencement date. Total rental payments are approximately $ 6.9 million from the commencement date through the expiration date. The Company is also required to pay common area maintenance costs, property taxes and insurance, in accordance with the terms of the lease agreement. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jul. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Note 7: Stockholders’ Equity The Company has a stock-based compensation plan, the 2015 Equity Incentive Plan, pursuant to which it has granted incentive and nonstatutory stock options and restricted stock units. Additionally, the Company's 2015 Employee Stock Purchase Plan (“ESPP”) allows eligible employees to purchase shares of common stock at a discounted price through payroll deductions. Stock Options. Stock option activity for the six months ended July 31, 2022 was as follows: Weighted-Average Aggregate Shares Exercise Price Intrinsic Value (in thousands) Per Share (in thousands) Balance as of January 31, 2022 1,325 $ 8.93 $ 12,064 Granted 95 $ 16.69 Exercised ( 48 ) $ 3.18 Balance as of July 31, 2022 1,372 $ 9.67 $ 4,473 Vested and exercisable as of July 31, 2022 1,151 $ 8.62 $ 4,404 The aggregate intrinsic value of vested options exercised during the six months ended July 31, 2022 and 2021 was $ 0.6 million and $ 0.8 million, respectively. The weighted-average grant date fair value of options granted during the six months ended July 31, 2022 and 2021 was $ 8.06 and $ 7.89 per share, respectively. Restricted Stock Units. RSU activity for the six months ended July 31, 2022 was as follows: Shares Weighted-Average Balance as of January 31, 2022 1,312 $ 15.05 Granted 940 $ 16.42 Vested ( 394 ) $ 14.87 Canceled ( 38 ) $ 14.77 Balance as of July 31, 2022 1,820 $ 15.81 Employee Stock Purchase Plan. During each of the six months ended July 31, 2022 and 2021, employees purchased 0.1 million shares at a weighted-average price of $ 10.22 and $ 10.07 per share, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jul. 31, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 8: Stock-Based Compensation Total stock-based compensation expense recognized in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended Six Months Ended July 31, July 31, July 31, July 31, Cost of revenue $ 241 $ 282 $ 474 $ 552 Sales and marketing 528 502 1,010 985 Research and development 1,157 1,071 2,263 2,137 General and administrative 1,579 1,466 3,095 2,841 Total stock-based compensation expense $ 3,505 $ 3,321 $ 6,842 $ 6,515 As of July 31, 2022, there was $ 29.8 million of unrecognized compensation expense related to unvested RSUs, stock options and stock purchase rights under the ESPP, which is expected to be recognized over a weighted-average vesting period of approximately 3 years . |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9: Income Taxes The Company recorded an income tax benefit of $ 2.0 million and $ 1.9 million during the three and six months ended July 31, 2022 and no income tax expense or benefit during the three and six months ended July 31, 2021. The income tax benefit recorded in the second quarter of fiscal 2023 was primarily attributable to the release of a $ 2.0 million valuation allowance on certain preexisting deferred tax assets that were realized as a result of deferred tax liabilities assumed in the Company's acquisition of OnSIP in July 2022. See Note 13: Business Acquisition . As of July 31, 2022, the Company continues to maintain a full valuation allowance against its remaining deferred tax assets. As of July 31, 2022, the Company had unrecognized tax benefits of $ 8.8 million, none of which would currently affect the Company's effective tax rate if recognized due to the Company's deferred tax assets being fully offset by a valuation allowance. The Company does not anticipate that the amount of unrecognized tax benefits relating to tax positions existing at July 31, 2022 will significantly increase or decrease within the next twelve months. There were no interest expense or penalties related to unrecognized tax benefits recorded through July 31, 2022. A number of years may elapse before an uncertain tax position is audited and finally resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, the Company believes that its reserves for income taxes reflect the most likely outcome. The Company adjusts these reserves, as well as the related interest, in light of changing facts and circumstances. Settlement of any particular position could require the use of cash. |
Basic and Diluted Net Income (L
Basic and Diluted Net Income (Loss) Per Share | 6 Months Ended |
Jul. 31, 2022 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Income (Loss) Per Share | Note 10: Basic and Diluted Net Income (Loss) Per Share The following table sets forth the computation of basic and diluted net income (loss) per share of common stock (in thousands, except share and per share data): Three Months Ended Six Months Ended July 31, July 31, July 31, July 31, Numerator Net income (loss) $ 338 $ ( 439 ) $ ( 428 ) $ ( 1,326 ) Denominator Basic weighted average common shares 24,388,275 23,359,715 24,254,465 23,209,151 Potentially dilutive shares from equity plans 485,489 — — — Diluted weighted-average common shares 24,873,764 23,359,715 24,254,465 23,209,151 Basic and diluted net income (loss) per share $ 0.01 $ ( 0.02 ) $ ( 0.02 ) $ ( 0.06 ) Potentially dilutive securities of approximately 0.7 million for the six months ended July 31, 2022 and approximately 1.4 million and 1.3 million for the three and six months ended July 31, 2021, respectively, were excluded from the computation of diluted net loss per share as their inclusion would have been anti-dilutive. These shares included the Company’s outstanding RSUs, outstanding stock options and stock purchase rights under the ESPP at the end of the respective period. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11: Commitments and Contingencies Purchase Commitments As of July 31, 2022 and January 31, 2022, non-cancelable inventory purchase commitments to contract manufacturers and other parties were $ 20.7 million and $ 19.4 million, respectively. Additionally, the Company has a non-cancelable service agreement with a telecommunications provider that contains total annual minimum purchase commitments of $ 1.5 million between August 2022 and July 2023 and $ 2.5 million between August 2023 and July 2024. Legal Proceedings In addition to the litigation matters described below, from time to time, the Company may be involved in a variety of other claims, lawsuits, investigations, and proceedings relating to contractual disputes, intellectual property rights, employment matters, regulatory compliance matters, and other litigation matters relating to various claims that arise in the normal course of business. Defending such proceedings is costly and can impose a significant burden on management and employees, the Company may receive unfavorable preliminary or interim rulings in the course of litigation, and there can be no assurances that favorable final outcomes will be obtained. The Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. The Company assesses its potential liability by analyzing specific litigation and regulatory matters using reasonably available information. The Company develops its views on estimated losses in consultation with inside and outside counsel, which involves a subjective analysis of potential results and outcomes, assuming various combinations of appropriate litigation and settlement strategies. Legal fees are expensed in the period in which they are incurred. As of July 31, 2022, the Company did no t have any accrued liabilities recorded for loss contingencies in its consolidated financial statements . Oregon Tax Litigation On August 30, 2016, the Oregon Department of Revenue (the “DOR”) issued tax assessments against the Company for the Oregon Emergency Communications Tax (the “Tax”), which the DOR alleges Ooma should have collected from its subscribers in Oregon and remitted to the DOR during the period between January 1, 2013 and March 31, 2016 (collectively, the “Assessments”). On March 2, 2020, Oregon Tax Court issued a decision upholding the Assessments, and on December 23, 2021, the Supreme Court of Oregon issued a decision upholding the Assessments. In prior fiscal years, the Company recorded and has paid cumulative charges of $ 0.6 million to the DOR as its probable loss related to the Assessments. The Company filed a petition for writ of certiorari with the United States Supreme Court, which was denied on June 21, 2022. Canadian Litigation On February 3, 2021, plaintiff Fiona Chiu filed a class action complaint against the Company and Ooma Canada Inc. in the Federal Court of Canada, alleging violations of Canada’s Trademarks Act and Competition Act. The complaint seeks monetary and other damages and/or injunctive relief enjoining the Company to cease describing and marketing its Basic Home Phone using the word “free” or otherwise representing that it is free. On November 9, 2021, the Federal Court of Canada removed Ms. Chiu and substituted John Zanin as the new plaintiff in the proceeding. In connection with the substitution of Mr. Zanin as the new plaintiff, the Federal Court of Canada deemed the proceeding as having commenced on November 8, 2021 instead of February 3, 2021. In January 2022, the Federal Court of Canada heard arguments from counsel representing each of the Company and Mr. Zanin regarding jurisdiction and class action certification issues, and the parties are awaiting the Court to issue its ruling. The Company intends to continue to defend itself vigorously against this complaint. Based on the Company’s current knowledge, the Company has determined that the amount of any reasonably possible loss resulting from the Canadian Litigation is not estimable. Indemnification The Company enters into standard indemnification arrangements in the ordinary course of business. Pursuant to these arrangements, the Company indemnifies, holds harmless and agrees to reimburse the indemnified parties for losses suffered or incurred by the indemnified party, in connection with any trade secret, copyright, patent or other intellectual property infringement claim by any third party with respect to the Company’s technology. The term of these indemnification agreements is generally perpetual. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable because it involves claims that may be made against the Company in the future but have not yet been made. The Company has entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of the individual. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has director and officer insurance coverage that reduces the Company’s exposure and enables the Company to recover a portion of any future amounts paid. To date the Company has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements. No liability associated with such indemnifications has been recorded to date. |
Financing Arrangements
Financing Arrangements | 6 Months Ended |
Jul. 31, 2022 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Note 12: Financing Arrangements Revolving Credit Facility On January 8, 2021 , the Company, as borrower, entered into a credit and security agreement (“Credit Agreement”) with KeyBank National Association as Administrative Agent (“Agent”) and lender, and KeyBanc Capital Markets Inc. as sole lead arranger and sole book runner. The Credit Agreement provides for a secured revolving credit facility (“Credit Facility”) under which the Company may borrow up to an aggregate amount of $ 25.0 million, which includes a $ 10.0 million sub-facility for letters of credit. The Company and its lenders may increase the total commitments under the Credit Facility to up to an aggregate amount of $ 45.0 million, subject to certain conditions. Funds borrowed under the Credit Agreement may be used for working capital and other general corporate purposes. Loans under the Credit Agreement will bear interest, at the Company’s option, at either a rate equal to the “Base Rate” (as defined in the Credit Agreement) or (b) “Eurodollar Rate” (as defined in the Credit Agreement) plus 2.50%. The Base Rate is the highest of (i) the Agent’s prime rate, (ii) the federal funds effective rate plus 0.5%, and (iii) the Eurodollar Rate with an interest period of one month plus 1%. The Eurodollar Rate is the London Interbank Offered Rate with various interest periods as may be selected by the Company but shall not be less than 0.75 %. Upon the occurrence of any event of default, the interest rate on any borrowings increases by 2.0 %. The Credit Agreement also contains customary provisions for the replacement of the London Interbank Offered Rate/Eurodollar Rate. The Company is required to pay a commitment fee on the unused portion of the Credit Facility of 0.25 % per annum. The Credit Agreement contains customary representations, warranties, affirmative and negative covenants, events of default and indemnification provisions in favor of the Agent, lenders and their affiliates. Among other covenants, the Credit Agreement includes restrictive financial covenants that require the Company to meet minimum recurring revenue levels and maintain specified amounts of available liquidity on a quarterly basis. As of July 31, 2022, the Company had zero outstanding borrowings and was in compliance with the covenants contained in the Credit Agreement. Accordingly, $ 25.0 million of borrowing capacity was available for the purposes permitted by the Credit Agreement. |
Business Acquisition
Business Acquisition | 6 Months Ended |
Jul. 31, 2022 | |
Business Acquisitions And Divestitures Abstract | |
Business Acquisition | Note 13: Business Acquisition On July 22, 2022, the Company acquired all outstanding stock of Junction Networks, Inc. (dba “OnSIP”), a provider of cloud-based phone and unified communications services for small and mid-size businesses in the U.S. The Company believes the acquisition of OnSIP will accelerate overall growth of Ooma Business. T he aggregate fair value consideration transferred for OnSIP was $ 9.8 million in cash, subject to customary working capital adjustments. The Company has included the financial results of OnSIP in the condensed consolidated financial statements from the date of acquisition, which for the three and six months ended July 31, 2022 were not material. The following table summarizes the preliminary purchase price allocation (in thousands): Fair Value Accounts receivable $ 255 Operating lease right-of-use asset 1,401 Other current and non-current assets 452 Intangible assets 8,180 Goodwill 4,431 Accounts payable and other liabilities ( 1,448 ) Deferred tax liability ( 2,043 ) Operating lease liability ( 1,401 ) Total purchase consideration $ 9,827 Intangible assets acquired primarily consisted of customer relationships of $ 7.7 million, which represented the estimated fair values of the underlying relationships with OnSIP’s customer base and have an estimated useful life of five years as of the date of acquisition. The goodwill recognized was primarily attributable to the assembled workforce and is not expected to be deductible for income tax purposes. The fair values assigned to tangible assets acquired and liabilities assumed were based on management’s estimates and assumptions and may be subject to change as additional information is received and certain working capital adjustments to the purchase consideration are finalized. The primary areas that remain preliminary relate to the fair values of intangible assets acquired, certain liabilities assumed, legal and other contingencies as of the acquisition date, income taxes and residual goodwill. The Company expects to finalize the valuation as soon as practicable, but not later than one year from the acquisition date. On a pro forma basis, had the OnSIP acquisition been included in the Company's consolidated results of operations beginning February 1, 2021, the Company’s total revenue would have approximated $ 55.5 million and $ 50.3 million for the three months ended July 31, 2022 and 2021, respectively, and approximated $ 109.1 million and $ 99.1 million for the six months ended July 31, 2022 and 2021, respectively. These pro forma revenue amounts do not necessarily represent what would have occurred if the business combination had taken place on February 1, 2021, nor do these amounts represent the results that may occur in the future. Pro forma net income (losses) for the OnSIP acquisition have not been presented because the impact was not material to the consolidated statements of operations . Acquisition-related transaction costs charged to general and administrative expense during the three and six months ended July 31, 2022 were approximately $ 0.8 million . |
Overview (Policies)
Overview (Policies) | 6 Months Ended |
Jul. 31, 2022 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year. The Company’s fiscal year ends on January 31. References to fiscal 2023 and fiscal 2022 refer to the fiscal year ending January 31, 2023 and the fiscal year ended January 31, 2022, respectively. |
Basis of Presentation | Basis of Presentation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet as of January 31, 2022 included herein was derived from the audited financial statements as of that date, but does not include all the disclosures required by GAAP. Therefore, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2022 filed with the SEC on April 8, 2022 (“Annual Report”). The accompanying condensed consolidated financial statements reflect all normal recurring adjustments that management believes are necessary for a fair presentation of the interim periods presented. The results for the three and six months ended July 31, 2022 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending January 31, 2023. |
Principles of Consolidation | Principles of Consolidation. The condensed consolidated financial statements include the accounts of Ooma, Inc. and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. |
Comprehensive Income (Loss) | Comprehensive Income (Loss). For all periods presented, comprehensive income (loss) approximated net income (loss) in the condensed consolidated statements of operations and differences were not material. Therefore, the condensed consolidated statements of comprehensive income (loss) have been omitted. |
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the Company’s condensed consolidated financial statements and notes thereto. Significant estimates include, but are not limited to, those related to revenue recognition, inventory valuation, deferred sales commissions, valuation of goodwill and intangible assets, operating lease assets and liabilities, regulatory fees and indirect tax accruals, loss contingencies, stock-based compensation and income taxes (including valuation allowances). The Company bases its estimates and assumptions on historical experience, where applicable, and other factors that it believes to be reasonable under the circumstances. These estimates are based on information available as of the date of the consolidated financial statements, and assumptions are inherently subjective in nature. Therefore, actual results could differ from management’s estimates. |
Significant Accounting Policies | Significant Accounting Policies. Except for the addition of business combinations below, there have been no material changes to the Company’s significant accounting policies from those disclosed in the Annual Report. Business Combinations . The Company accounts for its business combinations using the acquisition method of accounting. The purchase consideration is allocated to the assets acquired and liabilities assumed from the acquiree based on their respective fair values as of the acquisition date. The excess of the fair value of purchase consideration over the fair value of these assets acquired and liabilities assumed is recorded as goodwill. Management is required to make significant estimates and assumptions in determining fair values, especially with respect to intangible assets. Significant judgments and estimates in valuing intangible assets include, but are not limited to, the selection of valuation methodologies, expected future revenue and cash flows, expected customer attrition rates from acquired customers, future changes in technology, and discount rates. Fair value estimates are based on the assumptions that management believes a market participant would use in pricing the asset or liability. These estimates are inherently uncertain and, therefore, actual results may differ from the estimates made. As a result, during the measurement period of up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill as information on the facts and circumstances that existed as of the acquisition date becomes available. Upon the conclusion of the measurement period or final determination of the fair value of the purchase price of an acquisition, whichever comes first, any subsequent adjustments are recorded in the consolidated statements of operations. |
Revenue and Deferred Revenue (T
Revenue and Deferred Revenue (Tables) | 6 Months Ended |
Jul. 31, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Revenue Disaggregated by Revenue Source | Revenue disaggregated by revenue source consisted of the following (in thousands): Three Months Ended Six Months Ended July 31, July 31, July 31, July 31, Subscription and services revenue $ 47,995 $ 43,537 $ 94,718 $ 85,502 Product and other revenue 4,658 3,520 8,272 7,127 Total revenue $ 52,653 $ 47,057 $ 102,990 $ 92,629 |
Concentration of Net Accounts Receivable Balance | Customers who represented 10% or more of net accounts receivable were as follows: As of July 31, January 31, Customer A 16 % 19 % Customer B * 11 % * Less than 10 % of net accounts receivable for the period indicated. |
Components of Deferred Revenue | Deferred Revenue primarily consists of billings or payments received in advance of meeting revenue recognition criteria. Deferred services revenue is recognized on a ratable basis over the term of the contract as the services are provided. As of July 31, January 31, Subscription and services $ 17,671 $ 16,614 Product and other 63 59 Total deferred revenue $ 17,734 16,673 Less: current deferred revenue 17,686 16,600 Non-current deferred revenue included in other long-term liabilities $ 48 $ 73 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets at Fair Value | Financial assets measured at fair value on a recurring basis by level were as follows (in thousands): Balance as of July 31, 2022 Level 1 Level 2 Total Cash and cash equivalents: Money market funds $ 6,609 $ — $ 6,609 U.S. treasury securities 1,001 — 1,001 Total cash equivalents $ 7,610 $ — 7,610 Cash 8,582 Total cash and cash equivalents $ 16,192 Short-term investments: U.S. treasury securities $ 2,462 $ — $ 2,462 Corporate debt securities — 3,815 3,815 Total short-term investments $ 2,462 $ 3,815 $ 6,277 Balance as of January 31, 2022 Level 1 Level 2 Total Cash and cash equivalents: Money market funds $ 2,275 $ — $ 2,275 Total cash equivalents $ 2,275 $ — 2,275 Cash 17,392 Total cash and cash equivalents $ 19,667 Short-term investments: U.S. treasury securities $ 7,065 $ — $ 7,065 Commercial paper — 4,548 4,548 Total short-term investments $ 7,065 $ 4,548 $ 11,613 |
Schedule of Contractual Maturities of Short-term Investments | Contractual maturities of short-term investments were as follows (in thousands): As of July 31, January 31, Due in one year or less $ 5,793 $ 10,377 Due after one year to two years 484 1,236 Total $ 6,277 $ 11,613 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 6 Months Ended |
Jul. 31, 2022 | |
Balance Sheet Components [Abstract] | |
Components of Inventories | The following sections and tables provide details of selected balance sheet items (in thousands): Inventories As of July 31, January 31, Finished goods $ 12,196 $ 10,452 Raw materials 8,879 3,389 Total inventory $ 21,075 $ 13,841 |
Components of Other Current and Non-current Assets | Other current and non-current assets As of July 31, January 31, Deferred sales commissions, current $ 7,036 $ 6,395 Inventory prepayments 2,516 1,462 Convertible note receivable (see "GTC" below) 1,865 1,773 Prepaid expenses and other 3,551 3,968 Total other current assets $ 14,968 $ 13,598 Deferred sales commissions, non-current $ 13,396 $ 13,228 Other assets 1,736 647 Total other non-current assets $ 15,132 $ 13,875 |
Components of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities As of July 31, January 31, Payroll and related expenses $ 8,907 $ 10,853 Regulatory fees and taxes 3,991 3,933 Short-term operating lease liabilities 3,711 3,260 Customer-related liabilities 1,457 1,587 Other 4,838 3,190 Total accrued expenses and other current liabilities $ 22,904 $ 22,823 |
Acquired Intangible Assets an_2
Acquired Intangible Assets and Goodwill (Tables) | 6 Months Ended |
Jul. 31, 2022 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Carrying Value of Intangible Assets Other than Goodwill | The gross value, accumulated amortization and carrying values of intangible assets were as follows (in thousands): As of July 31, 2022 As of January 31, 2022 Estimated life Gross Accumulated Amortization Carrying Gross Accumulated Amortization Carrying Customer relationships 5 - 7 $ 14,395 $ ( 3,467 ) $ 10,928 $ 6,735 $ ( 2,921 ) $ 3,814 Developed technology 2 - 5 2,209 ( 1,688 ) 521 1,809 ( 1,584 ) 225 Trade names 2 - 5 684 ( 443 ) 241 564 ( 395 ) 169 Total intangible assets $ 17,288 $ ( 5,598 ) $ 11,690 $ 9,108 $ ( 4,900 ) $ 4,208 |
Schedule of Estimated Future Amortization Expense | At July 31, 2022, the estimated future amortization expense for intangible assets is as follows (in thousands): Fiscal Years Ending January 31, Total 2023 remainder $ 1,548 2024 2,732 2025 2,507 2026 2,365 2027 1,810 Thereafter 728 Total $ 11,690 |
Operating Leases (Tables)
Operating Leases (Tables) | 6 Months Ended |
Jul. 31, 2022 | |
Leases [Abstract] | |
Summary of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows (in thousands): As of July 31, January 31, Assets Operating lease right-of-use assets $ 14,663 $ 14,396 Total leased assets $ 14,663 $ 14,396 Liabilities Short-term operating lease liabilities $ 3,711 $ 3,260 Long-term operating lease liabilities 11,076 11,194 Total lease liabilities $ 14,787 $ 14,454 Weighted-average remaining lease term 5.1 years 5.8 years Weighted-average discount rate 3.8 % 3.7 % |
Summary of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended Six Months Ended July 31, July 31, July 31, July 31, Cash payments for operating leases $ 825 $ 983 $ 1,647 $ 1,964 Right-of-use assets recognized in exchange for new operating lease obligations $ 1,401 $ 9,514 $ 1,717 $ 9,827 |
Summary of Maturities of Lease Liabilities Under Non-cancelable Operating Leases | As of July 31, 2022, maturities of lease liabilities under non-cancelable operating leases were as follows (in thousands): Fiscal Years Ending January 31, July 31, 2022 2023 remainder $ 1,791 2024 3,684 2025 3,650 2026 1,940 2027 1,684 Thereafter 3,555 Total future minimum lease payments 16,304 Less: imputed interest ( 1,517 ) Present value of lease liabilities $ 14,787 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jul. 31, 2022 | |
Equity [Abstract] | |
Summarizes of Stock Option Activities | Stock Options. Stock option activity for the six months ended July 31, 2022 was as follows: Weighted-Average Aggregate Shares Exercise Price Intrinsic Value (in thousands) Per Share (in thousands) Balance as of January 31, 2022 1,325 $ 8.93 $ 12,064 Granted 95 $ 16.69 Exercised ( 48 ) $ 3.18 Balance as of July 31, 2022 1,372 $ 9.67 $ 4,473 Vested and exercisable as of July 31, 2022 1,151 $ 8.62 $ 4,404 |
Summarizes of Restricted Stock Units Activities | RSU activity for the six months ended July 31, 2022 was as follows: Shares Weighted-Average Balance as of January 31, 2022 1,312 $ 15.05 Granted 940 $ 16.42 Vested ( 394 ) $ 14.87 Canceled ( 38 ) $ 14.77 Balance as of July 31, 2022 1,820 $ 15.81 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jul. 31, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Total Stock-Based Compensation Expense Recognized in Condensed Consolidated Statements of Operations | Total stock-based compensation expense recognized in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended Six Months Ended July 31, July 31, July 31, July 31, Cost of revenue $ 241 $ 282 $ 474 $ 552 Sales and marketing 528 502 1,010 985 Research and development 1,157 1,071 2,263 2,137 General and administrative 1,579 1,466 3,095 2,841 Total stock-based compensation expense $ 3,505 $ 3,321 $ 6,842 $ 6,515 |
Basic and Diluted Net Income _2
Basic and Diluted Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Jul. 31, 2022 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income (Loss) Per Share of Common Stock | The following table sets forth the computation of basic and diluted net income (loss) per share of common stock (in thousands, except share and per share data): Three Months Ended Six Months Ended July 31, July 31, July 31, July 31, Numerator Net income (loss) $ 338 $ ( 439 ) $ ( 428 ) $ ( 1,326 ) Denominator Basic weighted average common shares 24,388,275 23,359,715 24,254,465 23,209,151 Potentially dilutive shares from equity plans 485,489 — — — Diluted weighted-average common shares 24,873,764 23,359,715 24,254,465 23,209,151 Basic and diluted net income (loss) per share $ 0.01 $ ( 0.02 ) $ ( 0.02 ) $ ( 0.06 ) |
Business Acquisition (Tables)
Business Acquisition (Tables) | 6 Months Ended |
Jul. 31, 2022 | |
Junction Networks, Inc. | |
Business Acquisition [Line Items] | |
Schedule of Preliminary Purchase Price Allocation | The following table summarizes the preliminary purchase price allocation (in thousands): Fair Value Accounts receivable $ 255 Operating lease right-of-use asset 1,401 Other current and non-current assets 452 Intangible assets 8,180 Goodwill 4,431 Accounts payable and other liabilities ( 1,448 ) Deferred tax liability ( 2,043 ) Operating lease liability ( 1,401 ) Total purchase consideration $ 9,827 |
Revenue and Deferred Revenue -
Revenue and Deferred Revenue - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2022 USD ($) | Jul. 31, 2021 | Jul. 31, 2022 USD ($) Customer Source Country | Jul. 31, 2021 Customer Country | |
Disaggregation Of Revenue [Line Items] | ||||
Number of sources of revenue | Source | 2 | |||
Number of countries outside United States represented 10% or more of total revenue | Country | 0 | 0 | ||
Number of customers that individually exceeded 10% of revenue | Customer | 0 | 0 | ||
Deferred revenue recognized | $ | $ 3 | $ 13 | ||
Ooma Business | Revenue | Product Concentration Risk | ||||
Disaggregation Of Revenue [Line Items] | ||||
Concentration risk, percentage | 50% | 48% | 50% | 47% |
Ooma Residential | Revenue | Product Concentration Risk | ||||
Disaggregation Of Revenue [Line Items] | ||||
Concentration risk, percentage | 47% | 50% | 47% | 50% |
Revenue and Deferred Revenue _2
Revenue and Deferred Revenue - Summary of Revenue Disaggregated by Revenue Source (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 52,653 | $ 47,057 | $ 102,990 | $ 92,629 |
Subscription and services revenue | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 47,995 | 43,537 | 94,718 | 85,502 |
Product and other revenue | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 4,658 | $ 3,520 | $ 8,272 | $ 7,127 |
Revenue and Deferred Revenue _3
Revenue and Deferred Revenue - Concentration of Net Accounts Receivable Balance (Details) - Accounts Receivable - Customer Concentration Risk | 6 Months Ended | 12 Months Ended |
Jul. 31, 2022 | Jan. 31, 2022 | |
Customer A | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 16% | 19% |
Customer B | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 11% |
Revenue and Deferred Revenue _4
Revenue and Deferred Revenue - Concentration of Net Accounts Receivable Balance (Parenthetical) (Details) | 6 Months Ended |
Jul. 31, 2022 | |
Accounts Receivable | Customer Concentration Risk | Customer B | Maximum | |
Concentration Risk [Line Items] | |
Accounts receivable concentration | 10% |
Revenue and Deferred Revenue _5
Revenue and Deferred Revenue - Components of Deferred Revenue (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Jan. 31, 2022 |
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 17,734 | $ 16,673 |
Less: current deferred revenue | 17,686 | 16,600 |
Non-current deferred revenue included in other long-term liabilities | 48 | 73 |
Subscription and Services | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 17,671 | 16,614 |
Product and Other | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 63 | $ 59 |
Revenue and Deferred Revenue _6
Revenue and Deferred Revenue - Additional Information (Details 1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-08-01 $ in Millions | Jul. 31, 2022 USD ($) |
Disaggregation Of Revenue [Line Items] | |
Revenue expected to be recognized from remaining performance obligations | $ 10.5 |
Revenue expected to be recognized from remaining performance obligations, percentage | 52% |
Revenue expected to be recognized from remaining performance obligations, period | 12 months |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets at Fair Value (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Jan. 31, 2022 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | $ 16,192 | $ 19,667 |
Total short-term investments | 6,277 | 11,613 |
U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 2,462 | 7,065 |
Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 4,548 | |
Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 3,815 | |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 2,462 | 7,065 |
Level 1 | U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 2,462 | 7,065 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 3,815 | 4,548 |
Level 2 | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 4,548 | |
Level 2 | Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 3,815 | |
Cash | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 8,582 | 17,392 |
Cash Equivalents | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 7,610 | 2,275 |
Cash Equivalents | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 6,609 | 2,275 |
Cash Equivalents | U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 1,001 | |
Cash Equivalents | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 7,610 | 2,275 |
Cash Equivalents | Level 1 | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 6,609 | $ 2,275 |
Cash Equivalents | Level 1 | U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | $ 1,001 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | Jul. 31, 2022 USD ($) |
Fair Value Disclosures [Abstract] | |
Fair value level asset and liability | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Contractual Maturities of Short-term Investments (Details) - Short-term Investments - USD ($) $ in Thousands | Jul. 31, 2022 | Jan. 31, 2022 |
Schedule Of Available For Sale Securities [Line Items] | ||
Due in one year or less | $ 5,793 | $ 10,377 |
Due after one year to two years | 484 | 1,236 |
Total | $ 6,277 | $ 11,613 |
Balance Sheet Components - Comp
Balance Sheet Components - Components of Inventories (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Jan. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 12,196 | $ 10,452 |
Raw materials | 8,879 | 3,389 |
Total inventory | $ 21,075 | $ 13,841 |
Balance Sheet Components - Co_2
Balance Sheet Components - Components of Other Current and Non-current Assets (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Jan. 31, 2022 |
Other Assets [Abstract] | ||
Deferred sales commissions, current | $ 7,036 | $ 6,395 |
Inventory prepayments | 2,516 | 1,462 |
Convertible note receivable (see "GTC" below) | 1,865 | 1,773 |
Prepaid expenses and other | 3,551 | 3,968 |
Total other current assets | 14,968 | 13,598 |
Deferred sales commissions, non-current | 13,396 | 13,228 |
Other assets | 1,736 | 647 |
Total other non-current assets | $ 15,132 | $ 13,875 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | Jan. 31, 2022 | Dec. 31, 2018 | |
Balance Sheet Components [Line Items] | ||||||
Amortization expense | $ 400,000 | $ 300,000 | $ 698,000 | $ 652,000 | ||
Amortization expense for deferred sales commissions | 1,800,000 | 1,400,000 | 3,600,000 | 2,800,000 | ||
Impairment loss in relation to deferred commission costs capitalized | 0 | $ 0 | 0 | $ 0 | ||
Convertible note receivable | 1,865,000 | 1,865,000 | $ 1,773,000 | |||
Non-cancelable inventory purchase commitments | 20,700,000 | 20,700,000 | $ 19,400,000 | |||
Global Telecom Corporation | ||||||
Balance Sheet Components [Line Items] | ||||||
Convertible note receivable | 1,900,000 | 1,900,000 | ||||
Non-cancelable inventory purchase commitments | $ 0 | 0 | ||||
Payment for inventory purchases and related costs | $ 2,300,000 | |||||
Global Telecom Corporation | Convertible Promissory Note | ||||||
Balance Sheet Components [Line Items] | ||||||
Investment in privately-held company | $ 1,300,000 |
Balance Sheet Components - Co_3
Balance Sheet Components - Components of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Jan. 31, 2022 |
Payables And Accruals [Abstract] | ||
Payroll and related expenses | $ 8,907 | $ 10,853 |
Regulatory fees and taxes | 3,991 | 3,933 |
Short-term operating lease liabilities | 3,711 | 3,260 |
Customer-related liabilities | 1,457 | 1,587 |
Other | 4,838 | 3,190 |
Total accrued expenses and other current liabilities | $ 22,904 | $ 22,823 |
Acquired Intangible Assets an_3
Acquired Intangible Assets and Goodwill - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | Jul. 22, 2022 | Jan. 31, 2022 | |
Goodwill [Line Items] | ||||||
Goodwill | $ 8,695 | $ 8,695 | $ 4,264 | |||
Amortization expense | 400 | $ 300 | 698 | $ 652 | ||
Junction Networks, Inc. | ||||||
Goodwill [Line Items] | ||||||
Intangibles | 8,200 | 8,200 | $ 8,180 | |||
Goodwill | $ 4,400 | $ 4,400 |
Acquired Intangible Assets an_4
Acquired Intangible Assets and Goodwill - Summary of Carrying Values of Intangible Assets Other than Goodwill (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2022 | Jan. 31, 2022 | |
Finite Lived Intangible Assets [Line Items] | ||
Gross Value, Intangible Assets | $ 17,288 | $ 9,108 |
Accumulated Amortization, Intangible Assets | (5,598) | (4,900) |
Carrying Value, Intangible Assets | 11,690 | 4,208 |
Customer relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Value, Intangible Assets | 14,395 | 6,735 |
Accumulated Amortization, Intangible Assets | (3,467) | (2,921) |
Carrying Value, Intangible Assets | $ 10,928 | 3,814 |
Customer relationships | Minimum | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated life (in years) | 5 years | |
Customer relationships | Maximum | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated life (in years) | 7 years | |
Developed technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Value, Intangible Assets | $ 2,209 | 1,809 |
Accumulated Amortization, Intangible Assets | (1,688) | (1,584) |
Carrying Value, Intangible Assets | $ 521 | 225 |
Developed technology | Minimum | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated life (in years) | 2 years | |
Developed technology | Maximum | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated life (in years) | 5 years | |
Trade names | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Value, Intangible Assets | $ 684 | 564 |
Accumulated Amortization, Intangible Assets | (443) | (395) |
Carrying Value, Intangible Assets | $ 241 | $ 169 |
Trade names | Minimum | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated life (in years) | 2 years | |
Trade names | Maximum | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated life (in years) | 5 years |
Acquired Intangible Assets an_5
Acquired Intangible Assets and Goodwill - Schedule of Estimated Future Amortization Expense for Intangible Assets (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Jan. 31, 2022 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2023 remainder | $ 1,548 | |
2024 | 2,732 | |
2025 | 2,507 | |
2026 | 2,365 | |
2027 | 1,810 | |
Thereafter | 728 | |
Carrying Value, Intangible Assets | $ 11,690 | $ 4,208 |
Operating Leases - Additional I
Operating Leases - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Leases [Abstract] | ||||
Operating lease, description | The Company leases its headquarters located in Sunnyvale, California, as well as office and data center space in various locations under non-cancelable operating lease agreements. | |||
Lease costs | $ 1.2 | $ 1.2 | $ 2.4 | $ 2.4 |
Lease term | 10 years | 10 years | ||
Total rental payments | $ 6.9 |
Operating Leases - Summary of S
Operating Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Jan. 31, 2022 |
Assets | ||
Operating lease right-of-use assets | $ 14,663 | $ 14,396 |
Total leased assets | 14,663 | 14,396 |
Liabilities | ||
Short-term operating lease liabilities | 3,711 | 3,260 |
Long-term operating lease liabilities | 11,076 | 11,194 |
Total lease liabilities | $ 14,787 | $ 14,454 |
Weighted-average remaining lease term | 5 years 1 month 6 days | 5 years 9 months 18 days |
Weighted-average discount rate | 3.80% | 3.70% |
Operating Leases - Summary of_2
Operating Leases - Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Leases [Abstract] | ||||
Cash payments for operating leases | $ 825 | $ 983 | $ 1,647 | $ 1,964 |
Right-of-use assets recognized in exchange for new operating lease obligations | $ 1,401 | $ 9,514 | $ 1,717 | $ 9,827 |
Operating Leases - Summary of M
Operating Leases - Summary of Maturities of Lease Liabilities Under Non-cancelable Operating Leases (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Jan. 31, 2022 |
Operating Lease Liabilities Payments Due [Abstract] | ||
2023 remainder | $ 1,791 | |
2024 | 3,684 | |
2025 | 3,650 | |
2026 | 1,940 | |
2027 | 1,684 | |
Thereafter | 3,555 | |
Total future minimum lease payments | 16,304 | |
Less: imputed interest | (1,517) | |
Present value of lease liabilities | $ 14,787 | $ 14,454 |
Stockholders' Equity - Summariz
Stockholders' Equity - Summarizes of Stock Option Activities (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jul. 31, 2022 | Jan. 31, 2022 | |
Number of Shares | ||
Shares, Beginning balance | 1,325,000 | |
Shares, Granted | 95,000 | |
Shares, Exercised | (48,000) | |
Shares, Ending balance | 1,372,000 | |
Shares, Vested and exercisable | 1,151,000 | |
Weighted Average Exercise Price Per Share | ||
Weighted Average Exercise Price Per Share, Beginning balance | $ 8.93 | |
Weighted Average Exercise Price Per Share, Granted | 16.69 | |
Weighted Average Exercise Price Per Share, Exercised | 3.18 | |
Weighted Average Exercise Price Per Share, Ending balance | 9.67 | |
Weighted Average Exercise Price Per Share, Vested and exercisable | $ 8.62 | |
Aggregate Intrinsic Value | ||
Aggregate Intrinsic Value | $ 4,473 | $ 12,064 |
Aggregate Intrinsic Value, Vested and exercisable | $ 4,404 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
ESPP | ||
Stockholders Equity Note Disclosure [Line Items] | ||
Number of shares of common stock issued under ESPP | 0.1 | 0.1 |
Weighted purchase price of shares of common stock under ESPP | $ 10.22 | $ 10.07 |
Stock Options | ||
Stockholders Equity Note Disclosure [Line Items] | ||
Aggregate intrinsic value of vested options exercised | $ 0.6 | $ 0.8 |
Weighted-average grant date fair value of options granted | $ 8.06 | $ 7.89 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summarizes of Restricted Stock Units Activities (Details) - Restricted Stock Units (RSUs) | 6 Months Ended |
Jul. 31, 2022 $ / shares shares | |
Number of Shares | |
Shares, RSUs Beginning Balance | shares | 1,312,000 |
Shares, Granted | shares | 940,000 |
Shares, Vested | shares | (394,000) |
Shares, Canceled | shares | (38,000) |
Shares, RSUs Ending Balance | shares | 1,820,000 |
Weighted Average Grant-Date Fair Value Per Share | |
Weighted Average Grant-Date Fair Value Per Share, Beginning Balance | $ / shares | $ 15.05 |
Weighted Average Grant-Date Fair Value Per Share, Granted | $ / shares | 16.42 |
Weighted Average Grant-Date Fair Value Per Share, Vested | $ / shares | 14.87 |
Weighted Average Grant-Date Fair Value Per Share, Canceled | $ / shares | 14.77 |
Weighted Average Grant-Date Fair Value Per Share, Ending Balance | $ / shares | $ 15.81 |
Stock-Based Compensation - Tota
Stock-Based Compensation - Total Stock-Based Compensation Expense Recognized in Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 3,505 | $ 3,321 | $ 6,842 | $ 6,515 |
Cost of revenue | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 241 | 282 | 474 | 552 |
Sales and marketing | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 528 | 502 | 1,010 | 985 |
Research and development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 1,157 | 1,071 | 2,263 | 2,137 |
General and administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 1,579 | $ 1,466 | $ 3,095 | $ 2,841 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ in Millions | 6 Months Ended |
Jul. 31, 2022 USD ($) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized compensation expense related to unvested share-based awards | $ 29.8 |
Stock Options | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Compensation expenses expected to be recognized offering period | 3 years |
Restricted Stock Units (RSUs) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Compensation expenses expected to be recognized offering period | 3 years |
Stock Purchase Rights under ESPP | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Compensation expenses expected to be recognized offering period | 3 years |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ (1,967,000) | $ 0 | $ (1,927,000) | $ 0 |
Unrecognized tax benefits | 8,800,000 | 8,800,000 | ||
Interest expense or penalties related to unrecognized tax benefits | 0 | |||
Deferred tax assets valuation allowance | $ 2,000,000 | $ 2,000,000 |
Basic and Diluted Net Income _3
Basic and Diluted Net Income (Loss) Per Share - Computation of Basic and Diluted Net Income (Loss) Per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 31, 2022 | Apr. 30, 2022 | Jul. 31, 2021 | Apr. 30, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Numerator | ||||||
Net income (loss) | $ 338 | $ (766) | $ (439) | $ (887) | $ (428) | $ (1,326) |
Denominator | ||||||
Basic weighted average common shares | 24,388,275 | 23,359,715 | 24,254,465 | 23,209,151 | ||
Potentially dilutive shares from equity plans | 485,489 | |||||
Diluted weighted-average common shares | 24,873,764 | 23,359,715 | 24,254,465 | 23,209,151 | ||
Basic net income (loss) per share | $ 0.01 | $ (0.02) | $ (0.02) | $ (0.06) | ||
Diluted net income (loss) per share | $ 0.01 | $ (0.02) | $ (0.02) | $ (0.06) |
Basic and Diluted Net Income _4
Basic and Diluted Net Income (Loss) Per Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Potentially dilutive securities excluded from the computation of diluted net loss per share | 1.4 | 0.7 | 1.3 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2020 | Jul. 31, 2022 | Jan. 31, 2022 | |
Commitments And Contingencies Disclosure [Line Items] | |||
Non-cancelable inventory purchase commitments | $ 20,700,000 | $ 19,400,000 | |
Accrued liabilities for loss contingencies | 0 | ||
Cumulative charges of litigation loss | $ 600,000 | ||
Non-Cancelable Service Agreement with Telecommunications Provider | Minimum | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Non-cancelable purchase commitments between August 2022 and July 2023 | 1,500,000 | ||
Non-cancelable purchase commitments between August 2023 and July 2024 | $ 2,500,000 |
Financing Arrangements - Additi
Financing Arrangements - Additional Information (Details) - Revolving Credit Facility - Credit Agreement - USD ($) | 6 Months Ended | |
Jan. 08, 2021 | Jul. 31, 2022 | |
Line Of Credit Facility [Line Items] | ||
Credit agreement initiation date | Jan. 08, 2021 | |
Maximum borrowing capacity | $ 45,000,000 | |
Borrowing capacity description | On January 8, 2021, the Company, as borrower, entered into a credit and security agreement (“Credit Agreement”) with KeyBank National Association as Administrative Agent (“Agent”) and lender, and KeyBanc Capital Markets Inc. as sole lead arranger and sole book runner. The Credit Agreement provides for a secured revolving credit facility (“Credit Facility”) under which the Company may borrow up to an aggregate amount of $25.0 million, which includes a $10.0 million sub-facility for letters of credit. The Company and its lenders may increase the total commitments under the Credit Facility to up to an aggregate amount of $45.0 million, subject to certain conditions. Funds borrowed under the Credit Agreement may be used for working capital and other general corporate purposes. | |
Credit agreement, Interest rate description | Loans under the Credit Agreement will bear interest, at the Company’s option, at either a rate equal to the “Base Rate” (as defined in the Credit Agreement) or (b) “Eurodollar Rate” (as defined in the Credit Agreement) plus 2.50%. The Base Rate is the highest of (i) the Agent’s prime rate, (ii) the federal funds effective rate plus 0.5%, and (iii) the Eurodollar Rate with an interest period of one month plus 1%. The Eurodollar Rate is the London Interbank Offered Rate with various interest periods as may be selected by the Company but shall not be less than 0.75%. Upon the occurrence of any event of default, the interest rate on any borrowings increases by 2.0%. The Credit Agreement also contains customary provisions for the replacement of the London Interbank Offered Rate/Eurodollar Rate. The Company is required to pay a commitment fee on the unused portion of the Credit Facility of 0.25% per annum. | |
Percentage of commitment fees on revolving credit facility | 0.25% | |
Borrowing remaining capacity | $ 25,000,000 | |
Borrowing capacity, Outstanding amount | $ 0 | |
Maximum | ||
Line Of Credit Facility [Line Items] | ||
Borrowing capacity | $ 25,000,000 | |
Maximum | Eurodollar Rate | ||
Line Of Credit Facility [Line Items] | ||
Credit agreement, Variable rate | 2% | |
Minimum | Eurodollar Rate | ||
Line Of Credit Facility [Line Items] | ||
Credit agreement, Variable rate | 0.75% | |
Letters of Credit | ||
Line Of Credit Facility [Line Items] | ||
Borrowing capacity | $ 10,000,000 |
Business Acquisition - Addition
Business Acquisition - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 22, 2022 | Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Business Acquisition [Line Items] | |||||
Aggregate fair value consideration transferred in cash | $ 9,771 | ||||
Junction Networks, Inc. | |||||
Business Acquisition [Line Items] | |||||
Aggregate fair value consideration transferred in cash | $ 9,800 | ||||
Intangible assets | 8,180 | $ 8,200 | 8,200 | ||
Pro forma revenue | 55,500 | $ 50,300 | 109,100 | $ 99,100 | |
Acquisition-related transaction costs | $ 800 | $ 800 | |||
Junction Networks, Inc. | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 7,700 | ||||
Estimated useful life | 5 years |
Business Acquisition - Schedule
Business Acquisition - Schedule of Preliminary Purchase Price Allocation (Details) - Junction Networks, Inc. - USD ($) $ in Thousands | Jul. 31, 2022 | Jul. 22, 2022 |
Business Acquisition [Line Items] | ||
Accounts receivable | $ 255 | |
Operating lease right-of-use asset | 1,401 | |
Other current and non-current assets | 452 | |
Intangible assets | $ 8,200 | 8,180 |
Goodwill | 4,431 | |
Accounts payable and other liabilities | (1,448) | |
Deferred tax liability | (2,043) | |
Operating lease liability | (1,401) | |
Total purchase consideration | $ 9,827 |