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Here's What Key Metrics Tell Us About Ooma (OOMA) Q3 Earnings

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For the quarter ended October 2023, Ooma (OOMA - Free Report) reported revenue of $59.86 million, up 5.6% over the same period last year. EPS came in at $0.15, compared to $0.14 in the year-ago quarter.

The reported revenue represents a surprise of +0.70% over the Zacks Consensus Estimate of $59.44 million. With the consensus EPS estimate being $0.15, the company has not delivered EPS surprise.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Ooma performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Gross Margin- Product and other: -74% versus the two-analyst average estimate of -65%.
  • Gross Margin- Subscription and services: 71% versus 71.7% estimated by two analysts on average.
  • Revenue- Product and other: $3.97 million versus the four-analyst average estimate of $3.72 million. The reported number represents a year-over-year change of -19.5%.
  • Revenue- Subscription and services: $55.89 million compared to the $55.62 million average estimate based on four analysts. The reported number represents a change of +8% year over year.
View all Key Company Metrics for Ooma here>>>

Shares of Ooma have returned -2.9% over the past month versus the Zacks S&P 500 composite's +4.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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