Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 30, 2021 | May 31, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Apr. 30, 2021 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
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 | 23,200,000 | |
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 | Apr. 30, 2021 | Jan. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 18,898 | $ 17,298 |
Short-term investments | 10,142 | 11,013 |
Accounts receivable, net | 4,066 | 5,228 |
Inventories | 13,478 | 12,233 |
Other current assets | 10,558 | 10,222 |
Total current assets | 57,142 | 55,994 |
Property and equipment, net | 5,130 | 5,071 |
Operating lease right-of-use assets | 5,541 | 6,045 |
Intangible assets, net | 5,186 | 5,513 |
Goodwill | 4,264 | 4,264 |
Other assets | 12,805 | 12,210 |
Total assets | 90,068 | 89,097 |
Current liabilities: | ||
Accounts payable | 9,453 | 7,499 |
Accrued expenses and other current liabilities | 18,859 | 22,731 |
Deferred revenue | 16,081 | 16,426 |
Total current liabilities | 44,393 | 46,656 |
Long-term operating lease liabilities | 2,743 | 2,815 |
Other liabilities | 94 | 75 |
Total liabilities | 47,230 | 49,546 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity: | ||
Common stock $0.0001 par value: 100 million shares authorized; 23.2 million and 22.9 million shares issued and outstanding, respectively | 4 | 4 |
Additional paid-in capital | 170,755 | 166,577 |
Accumulated other comprehensive income | 3 | 7 |
Accumulated deficit | (127,924) | (127,037) |
Total stockholders’ equity | 42,838 | 39,551 |
Total liabilities and stockholders’ equity | $ 90,068 | $ 89,097 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - $ / shares | Apr. 30, 2021 | Jan. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 23,200,000 | 22,900,000 |
Common stock, shares outstanding | 23,200,000 | 22,900,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Revenue: | ||
Total revenue | $ 45,572 | $ 40,306 |
Cost of revenue: | ||
Total cost of revenue | 17,490 | 15,131 |
Gross profit | 28,082 | 25,175 |
Operating expenses: | ||
Sales and marketing | 14,016 | 12,446 |
Research and development | 9,307 | 8,846 |
General and administrative | 5,725 | 5,028 |
Total operating expenses | 29,048 | 26,320 |
Loss from operations | (966) | (1,145) |
Interest and other income, net | 79 | 79 |
Net loss | $ (887) | $ (1,066) |
Net loss per share of common stock: | ||
Basic and diluted | $ (0.04) | $ (0.05) |
Weighted-average shares of common stock outstanding: | ||
Basic and diluted | 23,053,512 | 21,897,694 |
Subscription and services | ||
Revenue: | ||
Total revenue | $ 41,965 | $ 37,616 |
Cost of revenue: | ||
Total cost of revenue | 12,339 | 11,341 |
Product and other | ||
Revenue: | ||
Total revenue | 3,607 | 2,690 |
Cost of revenue: | ||
Total cost of revenue | $ 5,151 | $ 3,790 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (887) | $ (1,066) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Stock-based compensation expense | 3,194 | 3,008 |
Depreciation and amortization of capital expenditures | 773 | 713 |
Amortization of intangible assets | 326 | 326 |
Non-cash operating lease expense | 818 | 794 |
Other | 10 | 30 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 1,162 | (830) |
Inventories | (1,206) | (1,698) |
Prepaid expenses and other assets | (970) | (670) |
Accounts payable and other liabilities | (2,470) | (3,006) |
Deferred revenue | (326) | (449) |
Net cash provided by (used in) operating activities | 424 | (2,848) |
Cash flows from investing activities: | ||
Purchases of short-term investments | (6,043) | (9,015) |
Proceeds from maturities of short-term investments | 6,900 | 9,186 |
Capital expenditures | (665) | (762) |
Net cash provided by (used in) investing activities | 192 | (591) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 1,469 | 1,267 |
Net cash provided by financing activities | 984 | 795 |
Net increase (decrease) in cash and cash equivalents | 1,600 | (2,644) |
Cash and cash equivalents at beginning of period | 17,298 | 11,680 |
Cash and cash equivalents at end of period | 18,898 | 9,036 |
Restricted Stock Units (RSUs) | ||
Cash flows from financing activities: | ||
Shares repurchased for tax withholdings on vesting of restricted stock units ("RSU") | $ (485) | $ (472) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common stock and APIC | [1] | AOCI | [2] | Accumulated Deficit |
BALANCE at Jan. 31, 2020 | $ 28,415 | $ 152,997 | $ 14 | $ (124,596) | ||
Issuance of common stock under equity-based plans | 1,311 | 1,311 | ||||
Shares repurchased for tax withholdings on RSU vesting | (472) | (472) | ||||
Stock-based compensation | 3,008 | 3,008 | ||||
Changes in other comprehensive income | 12 | 12 | ||||
Net loss | (1,066) | (1,066) | ||||
BALANCE at Apr. 30, 2020 | 31,208 | 156,844 | 26 | (125,662) | ||
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 | (4) | (4) | ||||
Net loss | (887) | (887) | ||||
BALANCE at Apr. 30, 2021 | $ 42,838 | $ 170,759 | $ 3 | $ (127,924) | ||
[1] | Additional paid-in capital | |||||
[2] | Accumulated other comprehensive income |
Overview
Overview | 3 Months Ended |
Apr. 30, 2021 | |
Accounting Policies [Abstract] | |
Overview | Note 1: Overview Ooma, Inc. (“Ooma” or the “Company”) creates new communications experiences for businesses and consumers, delivered from its software-as-a-service (“SaaS”) and unified-communications-as-a-service (“UCaaS”) platforms. The Company’s corporate headquarters is located in Sunnyvale, California. Fiscal Year. The Company’s fiscal year ends on January 31. References to fiscal 2022 and fiscal 2021 refer to the fiscal year ending January 31, 2022 and the fiscal year ended January 31, 2021, 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, 2021 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, 2021 filed with the SEC on April 7, 2021 (“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 months ended April 30, 2021 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending January 31, 2022. 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. 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 commissions, valuation of goodwill and intangible assets, operating lease assets and liabilities, regulatory fees and indirect tax accruals, loss contingencies, stock-based compensation, income taxes (including valuation allowances) and fair value measurements. 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 condensed consolidated financial statements, and assumptions are inherently subjective in nature. Therefore, actual results could differ materially from those estimates, including uncertainty in the current economic environment due to COVID-19. Significant Accounting Policies. There have been no material changes to the Company’s significant accounting policies from those disclosed in the Annual Report. Comprehensive Loss. For all periods presented, comprehensive loss approximated net loss in the condensed consolidated statements of operations and differences were not material. Therefore, the condensed consolidated statements of comprehensive loss have been omitted. Adopted Accounting Standards Income Taxes. On February 1, 2021, the Company adopted Accounting Standards Update (“ASU”) 2019-12, Income Taxes (Topic 740) : Simplifying the Accounting for Income Taxes , which simplified certain aspects of the accounting for income taxes as well as clarified and amended existing guidance to improve consistent application. Adoption did not have a material impact on the Company’s consolidated financial statements and related disclosures. |
Revenue and Deferred Revenue
Revenue and Deferred Revenue | 3 Months Ended |
Apr. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue and Deferred Revenue | Note 2: Revenue and Deferred Revenue The Company’s revenue is presented in accordance with the provisions under Topic 606. 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 or multi-year subscriptions. 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 or when all customer contractual provisions have been met, if any. Revenue disaggregated by revenue source consisted of the following (in thousands): Three Months Ended April 30, 2021 April 30, 2020 Subscription and services revenue $ 41,965 $ 37,616 Product and other revenue 3,607 2,690 Total revenue $ 45,572 $ 40,306 The Company derived approximately 51% and 55% of its total revenue from Ooma Residential and approximately 47% and 43% from Ooma Business for the three months ended April 30, 2021 and 2020, respectively. No individual country outside of the United States, and no single customer, represented 10% or more of total revenue for the periods presented. As of April 30, 2021, one customer accounted for 14% of the Company’s net accounts receivable balance. As of January 31, 2021, no single customer accounted for 10% or more of net accounts receivable. 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. Deferred revenue consisted of the following (in thousands): As of April 30, 2021 January 31, 2021 Subscription and services $ 15,946 $ 16,433 Product and other 229 68 Total deferred revenue $ 16,175 16,501 Less: current deferred revenue 16,081 16,426 Non-current deferred revenue included in other long-term liabilities $ 94 $ 75 During the three months ended April 30, 2021, the Company recognized revenue of approximately $9.7 mil Remaining Performance Obligations. As of April 30, 2021, contract revenue that has not yet been recognized for open contracts with an original expected length of greater than one year was approximately $8.8 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 | 3 Months Ended |
Apr. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 3: Fair Value Measurements The Company records its financial assets and liabilities at fair value. 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 April 30, 2021 Level 1 Level 2 Total Cash and cash equivalents: Money market funds $ 3,524 $ — $ 3,524 Commercial paper 250 250 Total cash equivalents $ 3,524 $ 250 $ 3,774 Cash 15,124 Total cash and cash equivalents $ 18,898 Short-term investments: U.S. treasury securities $ 5,813 $ — $ 5,813 Commercial paper — 4,003 4,003 Corporate debt securities — 326 326 Total short-term investments $ 5,813 $ 4,329 $ 10,142 Balance as of January 31, 2021 Level 1 Level 2 Total Cash and cash equivalents: Money market funds $ 1,657 $ — $ 1,657 U.S. agency securities — 1,000 1,000 U.S. treasury securities 250 — 250 Total cash equivalents $ 1,907 $ 1,000 $ 2,907 Cash 14,391 Total cash and cash equivalents $ 17,298 Short-term investments: U.S. treasury securities $ 9,782 $ — $ 9,782 Corporate debt securities — 929 929 Asset-backed securities — 302 302 Total short-term investments $ 9,782 $ 1,231 $ 11,013 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 material 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 all less than one year in duration. |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Apr. 30, 2021 | |
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 April 30, 2021 January 31, 2021 Finished goods $ 11,300 $ 11,057 Raw materials 2,178 1,176 Total inventory $ 13,478 $ 12,233 Acquired intangible assets As of April 30, 2021 January 31, 2021 Customer relationships $ 4,574 $ 4,827 Developed technology 372 424 Trade names 240 262 Total intangible assets $ 5,186 $ 5,513 Amortization expense for acquired intangible assets was $0.3 million for each of the three months ended April 30, 2021 and 2020. Other current and non-current assets As of April 30, 2021 January 31, 2021 Deferred sales commissions, current $ 5,109 $ 4,689 Prepaid expenses 3,012 3,152 Convertible note receivable, including accrued interest 1,645 1,605 Deferred inventory costs 342 381 Other current assets 450 395 Total other current assets $ 10,558 $ 10,222 Deferred sales commissions, non-current $ 12,127 $ 11,474 Other non-current assets 678 736 Total other non-current assets $ 12,805 $ 12,210 Customer Acquisition Costs . Amortization expense for deferred sales commissions was $1.3 million and $0.8 million for the three months ended April 30, 2021 and 2020, respectively. To date, there have been no material impairment losses related to the costs capitalized. Global 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. The convertible note and related interest is due and payable upon the Company’s demand at any time after December 31, 2021. The Company has also partnered with GTC on certain research and development and inventory procurement activities. 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. The Company’s maximum exposure to loss is equal to the carrying value of the convertible note receivable, including accrued interest. Additionally, as of April 30, 2021 and January 31, 2021, the Company’s non-cancelable purchase commitments with GTC were $1.1 million and zero, respectively. Accrued expenses and other current liabilities As of April 30, 2021 January 31, 2021 Payroll and related expenses $ 5,648 $ 11,062 Regulatory fees and taxes 4,051 4,141 Short-term operating lease liabilities 3,309 3,831 Customer related liabilities 1,815 1,262 Other 4,036 2,435 Total accrued expenses $ 18,859 $ 22,731 |
Operating Leases
Operating Leases | 3 Months Ended |
Apr. 30, 2021 | |
Leases [Abstract] | |
Operating Leases | Note 5: 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 April 30, 2021 January 31, 2021 Assets Operating lease right-of-use assets $ 5,541 $ 6,045 Total leased assets $ 5,541 $ 6,045 Liabilities Short-term operating lease liabilities $ 3,309 $ 3,831 Long-term operating lease liabilities 2,743 2,815 Total lease liabilities $ 6,052 $ 6,646 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 April 30, 2021 and 2020. Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended April 30, 2021 April 30, 2020 Cash payments for operating leases $ 980 $ 431 Right-of-use assets recognized in exchange for new operating lease obligations $ 313 $ 303 As of April 30, 2021, maturities of lease liabilities under non-cancelable operating leases were as follows (in thousands): Fiscal Years Ending January 31, April 30, 2021 2022 $ 2,938 2023 1,627 2024 1,522 2025 256 Total lease payments 6,343 Less: imputed interest (291 ) Present value of lease liabilities $ 6,052 Additionally, on April 6, 2021, the Company entered into a sublease extension for its corporate headquarters in Sunnyvale, California, to extend the term of the existing sublease from an end date of January 31, 2022 to March 15, 2029. , in the second quarter of fiscal 2022 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Apr. 30, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Note 6: 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 three months ended April 30, 2021 was as follows: Weighted Average Aggregate Shares Exercise Price Intrinsic Value (in thousands) Per Share (in thousands) Balance as of January 31, 2021 1,366 $ 7.95 $ 7,803 Granted 120 $ 16.28 Exercised (32 ) $ 2.31 Canceled (2 ) $ 10.52 Balance as of April 30, 2021 1,452 $ 8.75 $ 11,303 Vested and exercisable as of April 30, 2021 1,173 $ 7.54 $ 10,550 The aggregate intrinsic value of vested options exercised during each of the three months ended April 30, 2021 and 2020 was $0.4 million. The weighted average grant date fair value of options granted during the three months ended April 30, 2021 and 2020 was $7.89 and $4.68 per share, respectively. Restricted Stock Units. RSU activity for the three months ended April 30, 2021 was as follows: Shares (in thousands) Weighted Average Grant-Date Fair Value Per Share Balance as of January 31, 2021 1,441 $ 12.54 Granted 757 $ 16.28 Vested (196 ) $ 12.08 Canceled (34 ) $ 11.66 Balance as of April 30, 2021 1,968 $ 14.04 Employee Stock Purchase Plan. During each of the three months ended April 30, 2021 and 2020, employees purchased 0.1 million shares, respectively, at a weighted purchase price of $10.07 and $9.98 per share, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Apr. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 7: Stock-Based Compensation Total stock-based compensation recognized for stock-based awards in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended April 30, 2021 April 30, 2020 Cost of revenue $ 270 $ 254 Sales and marketing 483 481 Research and development 1,066 1,051 General and administrative 1,375 1,222 Total stock-based compensation expense $ 3,194 $ 3,008 As of April 30, 2021, there was $28.1 3 years . |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8: Income Taxes The Company recorded no income tax expense or benefit during the three months ended April 30, 2021 and 2020. The Company continues to maintain a full valuation allowance against its deferred tax assets. As of April 30, 2021, the Company had unrecognized tax benefits of $6.9 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 April 30, 2021 will significantly increase or decrease within the next twelve months. There were no interest expense or penalties related to unrecognized tax benefits recorded through April 30, 2021. 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 Loss Per
Basic and Diluted Net Loss Per Share | 3 Months Ended |
Apr. 30, 2021 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Loss Per Share | Note 9: Basic and Diluted Net Loss Per Share Basic and diluted net loss per share is calculated by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per share of common stock is the same as basic net loss per share of common stock because the effects of potentially dilutive securities are antidilutive as the Company reported net losses for all periods presented. The following table sets forth the computation of the Company’s basic and diluted net loss per share of common stock (in thousands, except share and per share data): Three Months Ended April 30, 2021 April 30, 2020 Numerator Net loss $ (887 ) $ (1,066 ) Denominator Weighted-average common shares 23,053,512 21,897,694 Basic and diluted net loss per share $ (0.04 ) $ (0.05 ) Potentially dilutive securities of approximately 3.8 |
Financing Arrangements
Financing Arrangements | 3 Months Ended |
Apr. 30, 2021 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Note 10: 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 million, which includes a $10 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 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 will terminate and all amounts owing thereunder will be due and payable on the earlier of January 7, 2024 or 90 days prior to the scheduled maturity of any convertible debt securities, unless the commitments are terminated earlier, either at the request of the Company or, if an event of default occurs, by the lenders (or automatically in the case of certain bankruptcy-related events). 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 April 30, 2021, the Company had zero outstanding borrowings and was in compliance with the covenants contained in the Credit Agreement. Accordingly, $25 million of borrowing capacity was available for the purposes permitted by the Credit Agreement. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11: Commitments and Contingencies Purchase Commitments . As of April 30, 2021 and January 31, 2021, non-cancelable purchase commitments with the Company’s contract manufacturers and other parties were $9.1 million and $5.4 million, respectively. 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 April 30, 2021, the Company did not 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”). The Company believes that the Commerce Clause of the United States Constitution bars the application of the Tax and the Assessments to the Company, since the Company has no employees, property or other indicia of a “substantial nexus” with the State of Oregon. On March 2, 2020, Oregon Tax Court issued a decision upholding the Assessments. On April 1, 2020, the Company filed a Notice of Appeal with the Supreme Court of the State of Oregon. On May 6, 2021, the Supreme Court of the State of Oregon heard oral argument with respect to Ooma’s appeal. It is not certain when a decision will be forthcoming. Litigation is unpredictable and there can be no assurances that the Company will obtain a favorable final outcome or that it will be able to avoid further unfavorable interim rulings in the course of litigation that may significantly add to the expense of its defense and could result in substantial costs and diversion of resources. As of April 30, 2021 and January 31, 2021, the Company has recorded and paid cumulative charges of $0.6 million as its best estimate of probable loss related to the Assessments. Chiu 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. The Company intends 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 Chiu 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. |
Overview (Policies)
Overview (Policies) | 3 Months Ended |
Apr. 30, 2021 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year. The Company’s fiscal year ends on January 31. References to fiscal 2022 and fiscal 2021 refer to the fiscal year ending January 31, 2022 and the fiscal year ended January 31, 2021, 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, 2021 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, 2021 filed with the SEC on April 7, 2021 (“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 months ended April 30, 2021 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending January 31, 2022. |
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. |
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 commissions, valuation of goodwill and intangible assets, operating lease assets and liabilities, regulatory fees and indirect tax accruals, loss contingencies, stock-based compensation, income taxes (including valuation allowances) and fair value measurements. 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 condensed consolidated financial statements, and assumptions are inherently subjective in nature. Therefore, actual results could differ materially from those estimates, including uncertainty in the current economic environment due to COVID-19. |
Significant Accounting Policies | Significant Accounting Policies. There have been no material changes to the Company’s significant accounting policies from those disclosed in the Annual Report. |
Comprehensive Loss | Comprehensive Loss. For all periods presented, comprehensive loss approximated net loss in the condensed consolidated statements of operations and differences were not material. Therefore, the condensed consolidated statements of comprehensive loss have been omitted. |
Adopted Accounting Standards | Adopted Accounting Standards Income Taxes. On February 1, 2021, the Company adopted Accounting Standards Update (“ASU”) 2019-12, Income Taxes (Topic 740) : Simplifying the Accounting for Income Taxes , which simplified certain aspects of the accounting for income taxes as well as clarified and amended existing guidance to improve consistent application. Adoption did not have a material impact on the Company’s consolidated financial statements and related disclosures. |
Revenue and Deferred Revenue (T
Revenue and Deferred Revenue (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
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 April 30, 2021 April 30, 2020 Subscription and services revenue $ 41,965 $ 37,616 Product and other revenue 3,607 2,690 Total revenue $ 45,572 $ 40,306 |
Components of Deferred Revenue | Deferred revenue consisted of the following (in thousands): As of April 30, 2021 January 31, 2021 Subscription and services $ 15,946 $ 16,433 Product and other 229 68 Total deferred revenue $ 16,175 16,501 Less: current deferred revenue 16,081 16,426 Non-current deferred revenue included in other long-term liabilities $ 94 $ 75 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
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 April 30, 2021 Level 1 Level 2 Total Cash and cash equivalents: Money market funds $ 3,524 $ — $ 3,524 Commercial paper 250 250 Total cash equivalents $ 3,524 $ 250 $ 3,774 Cash 15,124 Total cash and cash equivalents $ 18,898 Short-term investments: U.S. treasury securities $ 5,813 $ — $ 5,813 Commercial paper — 4,003 4,003 Corporate debt securities — 326 326 Total short-term investments $ 5,813 $ 4,329 $ 10,142 Balance as of January 31, 2021 Level 1 Level 2 Total Cash and cash equivalents: Money market funds $ 1,657 $ — $ 1,657 U.S. agency securities — 1,000 1,000 U.S. treasury securities 250 — 250 Total cash equivalents $ 1,907 $ 1,000 $ 2,907 Cash 14,391 Total cash and cash equivalents $ 17,298 Short-term investments: U.S. treasury securities $ 9,782 $ — $ 9,782 Corporate debt securities — 929 929 Asset-backed securities — 302 302 Total short-term investments $ 9,782 $ 1,231 $ 11,013 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Balance Sheet Components [Abstract] | |
Components of Inventories | The following sections and tables provide details of selected balance sheet items (in thousands): Inventories As of April 30, 2021 January 31, 2021 Finished goods $ 11,300 $ 11,057 Raw materials 2,178 1,176 Total inventory $ 13,478 $ 12,233 |
Components of Acquired Intangible Assets | Acquired intangible assets As of April 30, 2021 January 31, 2021 Customer relationships $ 4,574 $ 4,827 Developed technology 372 424 Trade names 240 262 Total intangible assets $ 5,186 $ 5,513 |
Components of Other Current and Non-current Assets | Other current and non-current assets As of April 30, 2021 January 31, 2021 Deferred sales commissions, current $ 5,109 $ 4,689 Prepaid expenses 3,012 3,152 Convertible note receivable, including accrued interest 1,645 1,605 Deferred inventory costs 342 381 Other current assets 450 395 Total other current assets $ 10,558 $ 10,222 Deferred sales commissions, non-current $ 12,127 $ 11,474 Other non-current assets 678 736 Total other non-current assets $ 12,805 $ 12,210 |
Components of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities As of April 30, 2021 January 31, 2021 Payroll and related expenses $ 5,648 $ 11,062 Regulatory fees and taxes 4,051 4,141 Short-term operating lease liabilities 3,309 3,831 Customer related liabilities 1,815 1,262 Other 4,036 2,435 Total accrued expenses $ 18,859 $ 22,731 |
Operating Leases (Tables)
Operating Leases (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
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 April 30, 2021 January 31, 2021 Assets Operating lease right-of-use assets $ 5,541 $ 6,045 Total leased assets $ 5,541 $ 6,045 Liabilities Short-term operating lease liabilities $ 3,309 $ 3,831 Long-term operating lease liabilities 2,743 2,815 Total lease liabilities $ 6,052 $ 6,646 |
Summary of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended April 30, 2021 April 30, 2020 Cash payments for operating leases $ 980 $ 431 Right-of-use assets recognized in exchange for new operating lease obligations $ 313 $ 303 |
Summary of Maturities of Lease Liabilities Under Non-cancelable Operating Leases | As of April 30, 2021, maturities of lease liabilities under non-cancelable operating leases were as follows (in thousands): Fiscal Years Ending January 31, April 30, 2021 2022 $ 2,938 2023 1,627 2024 1,522 2025 256 Total lease payments 6,343 Less: imputed interest (291 ) Present value of lease liabilities $ 6,052 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Equity [Abstract] | |
Summarizes of Stock Option Activities | Stock Options. Stock option activity for the three months ended April 30, 2021 was as follows: Weighted Average Aggregate Shares Exercise Price Intrinsic Value (in thousands) Per Share (in thousands) Balance as of January 31, 2021 1,366 $ 7.95 $ 7,803 Granted 120 $ 16.28 Exercised (32 ) $ 2.31 Canceled (2 ) $ 10.52 Balance as of April 30, 2021 1,452 $ 8.75 $ 11,303 Vested and exercisable as of April 30, 2021 1,173 $ 7.54 $ 10,550 |
Summarizes of Restricted Stock Units Activities | RSU activity for the three months ended April 30, 2021 was as follows: Shares (in thousands) Weighted Average Grant-Date Fair Value Per Share Balance as of January 31, 2021 1,441 $ 12.54 Granted 757 $ 16.28 Vested (196 ) $ 12.08 Canceled (34 ) $ 11.66 Balance as of April 30, 2021 1,968 $ 14.04 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Total Stock-Based Compensation Recognized for Stock-Based Awards in Condensed Consolidated Statements of Operations | Total stock-based compensation recognized for stock-based awards in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended April 30, 2021 April 30, 2020 Cost of revenue $ 270 $ 254 Sales and marketing 483 481 Research and development 1,066 1,051 General and administrative 1,375 1,222 Total stock-based compensation expense $ 3,194 $ 3,008 |
Basic and Diluted Net Loss Pe_2
Basic and Diluted Net Loss Per Share (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss Per Share of Common Stock | The following table sets forth the computation of the Company’s basic and diluted net loss per share of common stock (in thousands, except share and per share data): Three Months Ended April 30, 2021 April 30, 2020 Numerator Net loss $ (887 ) $ (1,066 ) Denominator Weighted-average common shares 23,053,512 21,897,694 Basic and diluted net loss per share $ (0.04 ) $ (0.05 ) |
Revenue and Deferred Revenue -
Revenue and Deferred Revenue - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2021USD ($)SourceCountryCustomer | Apr. 30, 2020CountryCustomer | Jan. 31, 2021 | |
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 | $ | $ 9.7 | ||
Accounts Receivable | Customer Concentration Risk | |||
Disaggregation Of Revenue [Line Items] | |||
Concentration risk, percentage | 14.00% | ||
Accounts Receivable | Customer Concentration Risk | Minimum | |||
Disaggregation Of Revenue [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
Ooma Residential | Revenue | |||
Disaggregation Of Revenue [Line Items] | |||
Concentration risk, percentage | 51.00% | 55.00% | |
Ooma Business | Revenue | |||
Disaggregation Of Revenue [Line Items] | |||
Concentration risk, percentage | 47.00% | 43.00% |
Revenue and Deferred Revenue _2
Revenue and Deferred Revenue - Summary of Revenue Disaggregated by Revenue Source (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 45,572 | $ 40,306 |
Subscription and services revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 41,965 | 37,616 |
Product and other revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 3,607 | $ 2,690 |
Revenue and Deferred Revenue _3
Revenue and Deferred Revenue - Components of Deferred Revenue (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jan. 31, 2021 |
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 16,175 | $ 16,501 |
Less: current deferred revenue | 16,081 | 16,426 |
Non-current deferred revenue included in other long-term liabilities | 94 | 75 |
Subscription and Services | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 15,946 | 16,433 |
Product and Other | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 229 | $ 68 |
Revenue and Deferred Revenue _4
Revenue and Deferred Revenue - Additional Information (Details 1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-05-01 $ in Millions | Apr. 30, 2021USD ($) |
Disaggregation Of Revenue [Line Items] | |
Revenue expected to be recognized from remaining performance obligations | $ 8.8 |
Revenue expected to be recognized from remaining performance obligations, percentage | 52.00% |
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 | Apr. 30, 2021 | Jan. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | $ 18,898 | $ 17,298 |
Total short-term investments | 10,142 | 11,013 |
U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 5,813 | 9,782 |
Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 4,003 | |
Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 326 | 929 |
Asset-Backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 302 | |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 5,813 | 9,782 |
Level 1 | U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 5,813 | 9,782 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 4,329 | 1,231 |
Level 2 | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 4,003 | |
Level 2 | Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 326 | 929 |
Level 2 | Asset-Backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 302 | |
Cash | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 15,124 | 14,391 |
Cash Equivalents | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 3,774 | 2,907 |
Cash Equivalents | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 3,524 | 1,657 |
Cash Equivalents | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 250 | |
Cash Equivalents | U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 250 | |
Cash Equivalents | U.S. Agency Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 1,000 | |
Cash Equivalents | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 3,524 | 1,907 |
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 | 3,524 | 1,657 |
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 | 250 | |
Cash Equivalents | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | 250 | 1,000 |
Cash Equivalents | Level 2 | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | $ 250 | |
Cash Equivalents | Level 2 | U.S. Agency Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash and cash equivalents | $ 1,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | 3 Months Ended |
Apr. 30, 2021USD ($) | |
Fair Value Disclosures [Line Items] | |
Fair value material level asset and liability | $ 0 |
Maximum | |
Fair Value Disclosures [Line Items] | |
Contractual maturities of short-term investments | 1 year |
Balance Sheet Components - Comp
Balance Sheet Components - Components of Inventories (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jan. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 11,300 | $ 11,057 |
Raw materials | 2,178 | 1,176 |
Total inventory | $ 13,478 | $ 12,233 |
Balance Sheet Components - Co_2
Balance Sheet Components - Components of Acquired Intangible Assets (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jan. 31, 2021 |
Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 5,186 | $ 5,513 |
Customer relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets | 4,574 | 4,827 |
Developed technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets | 372 | 424 |
Trade names | ||
Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 240 | $ 262 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Apr. 30, 2021 | Apr. 30, 2020 | Jan. 31, 2021 | Dec. 31, 2018 | |
Balance Sheet Components [Line Items] | ||||
Amortization expense | $ 326,000 | $ 326,000 | ||
Amortization expense for deferred sales commissions | 1,300,000 | $ 800,000 | ||
Impairment loss in relation to deferred commission costs capitalized | 0 | |||
Non-cancelable purchase commitments | 9,100,000 | $ 5,400,000 | ||
Global Telecom Corporation | ||||
Balance Sheet Components [Line Items] | ||||
Non-cancelable purchase commitments | $ 1,100,000 | $ 0 | ||
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 Other Current and Non-current Assets (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jan. 31, 2021 |
Other Assets [Abstract] | ||
Deferred sales commissions, current | $ 5,109 | $ 4,689 |
Prepaid expenses | 3,012 | 3,152 |
Convertible note receivable, including accrued interest | 1,645 | 1,605 |
Deferred inventory costs | 342 | 381 |
Other current assets | 450 | 395 |
Total other current assets | 10,558 | 10,222 |
Deferred sales commissions, non-current | 12,127 | 11,474 |
Other non-current assets | 678 | 736 |
Total other non-current assets | $ 12,805 | $ 12,210 |
Balance Sheet Components - Co_4
Balance Sheet Components - Components of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jan. 31, 2021 |
Payables And Accruals [Abstract] | ||
Payroll and related expenses | $ 5,648 | $ 11,062 |
Regulatory fees and taxes | 4,051 | 4,141 |
Short-term operating lease liabilities | $ 3,309 | $ 3,831 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | ooma:AccruedExpensesAndOtherCurrentLiabilitiesMember | ooma:AccruedExpensesAndOtherCurrentLiabilitiesMember |
Customer related liabilities | $ 1,815 | $ 1,262 |
Other | 4,036 | 2,435 |
Total accrued expenses | $ 18,859 | $ 22,731 |
Operating Leases - Additional I
Operating Leases - Additional Information (Details) - USD ($) $ in Millions | Apr. 06, 2021 | Apr. 30, 2021 | Apr. 30, 2020 | Mar. 15, 2029 |
Lessee Lease Description [Line Items] | ||||
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 | ||
Sublease, option to extend | true | |||
Description of sublease extension | Company entered into a sublease extension for its corporate headquarters in Sunnyvale, California, to extend the term of the existing sublease from an end date of January 31, 2022 to March 15, 2029. | |||
Scenario Forecast | ||||
Lessee Lease Description [Line Items] | ||||
Undiscounted rental payment on sublease extension | $ 11.1 |
Operating Leases - Summary of S
Operating Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jan. 31, 2021 |
Assets | ||
Operating lease right-of-use assets | $ 5,541 | $ 6,045 |
Total leased assets | 5,541 | 6,045 |
Liabilities | ||
Short-term operating lease liabilities | 3,309 | 3,831 |
Long-term operating lease liabilities | 2,743 | 2,815 |
Total lease liabilities | $ 6,052 | $ 6,646 |
Operating Leases - Summary of_2
Operating Leases - Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Leases [Abstract] | ||
Cash payments for operating leases | $ 980 | $ 431 |
Right-of-use assets recognized in exchange for new operating lease obligations | $ 313 | $ 303 |
Operating Leases - Summary of M
Operating Leases - Summary of Maturities of Lease Liabilities Under Non-cancelable Operating Leases (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jan. 31, 2021 |
Operating Lease Liabilities Payments Due [Abstract] | ||
2022 | $ 2,938 | |
2023 | 1,627 | |
2024 | 1,522 | |
2025 | 256 | |
Total lease payments | 6,343 | |
Less: imputed interest | (291) | |
Present value of lease liabilities | $ 6,052 | $ 6,646 |
Stockholders' Equity - Summariz
Stockholders' Equity - Summarizes of Stock Option Activities (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Apr. 30, 2021USD ($)$ / sharesshares | |
Number of Shares | |
Shares, Beginning balance | shares | 1,366,000 |
Shares, Granted | shares | 120,000 |
Shares, Exercised | shares | (32,000) |
Shares, Canceled | shares | (2,000) |
Shares, Ending balance | shares | 1,452,000 |
Shares, Vested and exercisable | shares | 1,173,000 |
Weighted Average Exercise Price Per Share | |
Weighted Average Exercise Price Per Share, Beginning balance | $ / shares | $ 7.95 |
Weighted Average Exercise Price Per Share, Granted | $ / shares | 16.28 |
Weighted Average Exercise Price Per Share, Exercised | $ / shares | 2.31 |
Weighted Average Exercise Price Per Share, Canceled | $ / shares | 10.52 |
Weighted Average Exercise Price Per Share, Ending balance | $ / shares | 8.75 |
Weighted Average Exercise Price Per Share, Vested and exercisable | $ / shares | $ 7.54 |
Aggregate Intrinsic Value | |
Aggregate Intrinsic Value, Beginning balance | $ | $ 7,803 |
Aggregate Intrinsic Value, Ending balance | $ | 11,303 |
Aggregate Intrinsic Value, Vested and exercisable | $ | $ 10,550 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
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 | $ 10.07 | $ 9.98 |
Stock Options | ||
Stockholders Equity Note Disclosure [Line Items] | ||
Aggregate intrinsic value of vested options exercised | $ 0.4 | $ 0.4 |
Weighted-average grant date fair value of options granted | $ 7.89 | $ 4.68 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summarizes of Restricted Stock Units Activities (Details) - Restricted Stock Units (RSUs) | 3 Months Ended |
Apr. 30, 2021$ / sharesshares | |
Number of Shares | |
Shares, RSUs Beginning Balance | shares | 1,441,000 |
Shares, Granted | shares | 757,000 |
Shares, Vested | shares | (196,000) |
Shares, Canceled | shares | (34,000) |
Shares, RSUs Ending Balance | shares | 1,968,000 |
Weighted Average Grant-Date Fair Value Per Share | |
Weighted Average Grant-Date Fair Value Per Share, Beginning Balance | $ / shares | $ 12.54 |
Weighted Average Grant-Date Fair Value Per Share, Granted | $ / shares | 16.28 |
Weighted Average Grant-Date Fair Value Per Share, Vested | $ / shares | 12.08 |
Weighted Average Grant-Date Fair Value Per Share, Canceled | $ / shares | 11.66 |
Weighted Average Grant-Date Fair Value Per Share, Ending Balance | $ / shares | $ 14.04 |
Stock-Based Compensation - Tota
Stock-Based Compensation - Total Stock-Based Compensation Recognized for Stock-Based Awards in Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation | $ 3,194 | $ 3,008 |
Cost of revenue | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation | 270 | 254 |
Sales and marketing | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation | 483 | 481 |
Research and development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation | 1,066 | 1,051 |
General and administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation | $ 1,375 | $ 1,222 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ in Millions | 3 Months Ended |
Apr. 30, 2021USD ($) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized compensation expense related to unvested share-based awards | $ 28.1 |
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 | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ 0 | $ 0 |
Unrecognized tax benefits | 6,900,000 | |
Interest expense or penalties related to unrecognized tax benefits | $ 0 |
Basic and Diluted Net Loss Pe_3
Basic and Diluted Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Numerator | ||
Net loss | $ (887) | $ (1,066) |
Denominator | ||
Weighted-average common shares | 23,053,512 | 21,897,694 |
Basic and diluted net loss per share | $ (0.04) | $ (0.05) |
Basic and Diluted Net Loss Pe_4
Basic and Diluted Net Loss Per Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Earnings Per Share [Abstract] | ||
Potentially dilutive securities excluded from the computation of diluted net loss per share | 3.8 | 3.8 |
Financing Arrangements - Additi
Financing Arrangements - Additional Information (Details) - Revolving Credit Facility - Credit Agreement - USD ($) | Jan. 08, 2021 | Apr. 30, 2021 | Apr. 30, 2021 |
Line Of Credit Facility [Line Items] | |||
Credit agreement initiation date | Jan. 8, 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 million, which includes a $10 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 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% | ||
Credit agreement expiration date | Jan. 7, 2024 | ||
Credit agreement expiration description | The Credit Agreement will terminate and all amounts owing thereunder will be due and payable on the earlier of January 7, 2024 or 90 days prior to the scheduled maturity of any convertible debt securities, unless the commitments are terminated earlier, either at the request of the Company or, if an event of default occurs, by the lenders (or automatically in the case of certain bankruptcy-related events) | ||
Borrowing remaining capacity | $ 25,000,000 | $ 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 | 2.00% | ||
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 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Apr. 30, 2021 | Jan. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Non-cancelable purchase commitments | $ 9,100,000 | $ 5,400,000 |
Accrued liabilities for loss contingencies | 0 | |
Cumulative charges of litigation loss | $ 600,000 | $ 600,000 |