Release Date: March 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: What are you seeing in the SMB environment? Has it faded a little bit after the election? A: Eric Stang, CEO: No, I wouldn't say it's faded. Q4 is always the one quarter of the year where with everything else going on, holidays and a lot of business activity, small businesses may not be in the market quite as much, but then things were back in January and we've seen that. So I think it's been strong and it remains strong.
Q: Can you give us more color on how you are thinking about assisting resale partners and driving sales, and the strategic approach on adding new resellers every quarter in fiscal '26? A: Eric Stang, CEO: We have over 20 partners established to resell, particularly Ooma AirDial. Some partners are reselling office, and a few are reselling Telo for POTS replacement. We believe our solution is the clear winner for POTS line replacement. We have a small team focused on adding a couple of resellers every quarter, and we think we can achieve that.
Q: For someone like Marriott, how many POTS lines do they have and what's been communicated in terms of their plans and timeframe for replacement? A: Eric Stang, CEO: Marriott has over 5,000 properties in the US alone. It's early stages with this agreement, but brand certification is fundamental within the Marriott community. A large Marriott property might need 20 to 40 lines. It's too soon to say how big and how fast the replacement will be.
Q: In terms of your large cable partner for POTS replacement, what is the limited visibility and why do you think customers might not be motivated to move more quickly? A: Eric Stang, CEO: The limited visibility is about whether this partner will launch in March as intended. We think they will, but how fast their Salesforce will generate deals is uncertain. Many businesses are more likely to move forward on POTS replacement than before, but it's hard to predict the exact pace.
Q: You mentioned in the first quarter some more churn expected from IWG. Will we continue to see churn after the first quarter, or do you think it will stabilize? A: Eric Stang, CEO: We expect stabilization after this quarter. We have a good working relationship with IWG, and they are testing new opportunities that could be an upside for us. We think we're in a pretty stable spot with potential growth opportunities.
Q: What are you seeing in the SMB market if you strip out assumptions for AirDial? A: Eric Stang, CEO: We have expanded our business scope to include POTS replacement and wholesale services, shifting some sales and marketing activities into those areas. We estimate millions of small businesses in North America have yet to move to the cloud, providing a lot of opportunities. We continue to see good market opportunity but are balancing our outlook across all growth segments.
Q: Are you in conversations with any other top national cable companies in the US? A: Eric Stang, CEO: We are in conversations at different stages with various players, including Select and ILACs, aggregators, and cable companies. We are excited to talk to anyone interested in our solutions.
Q: Regarding the 2,600 Hz deal, is growth more about new customer acquisition or broadening the offering to existing customers? A: Eric Stang, CEO: Most growth will come from new customer wins. We are adding services to the platform that can be monetized with the existing base, such as Ooma IP and apps, and carrier services leveraging our low-cost structure. However, the pace at which AirDial expands and resale partners ramp up is something we are cautious about until it materializes.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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