Ooma (OOMA) Stock Forecast & Price Target

Ooma Inc reported product and other revenue of $5.2 million, reflecting a 14% year-over-year increase, which exceeded both consensus and internal estimates. The company has guided for total revenue between $67.2 million and $67.9 million, indicating an anticipated growth of 3-4% year-over-year, along with non-GAAP EPS expectations between $0.22 and $0.23, surpassing previous consensus estimates. Additionally, total revenue for the current period was consistent with the consensus at $66.4 million, demonstrating stable growth aligned with market expectations.

Ooma Inc reported a non-GAAP gross margin of 62.0%, which fell short of both the consensus estimate of 62.6% and the internal estimate of 63.3%. This underperformance in gross margin may indicate challenges in maintaining profitability within its subscription and service revenue model. Additionally, the company’s stock has experienced a decline of 14% year to date, as well as a further drop of 1.9% following the latest earnings report, signaling potential investor concerns about its financial health and future growth prospects.