Smart Connected Services Investor Presentation I n f o r m a t i o n a s o f M a y 2 3 , 2 0 1 7
Safe Harbor Statement This presentation contains forward-looking statements. In particular, statements regarding future economic performance, finances, and expectations and objectives of management constitute forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical facts and generally contain words such as "believes," "expects," "may," "will," "should," "seeks," "approximately," "intends," "plans," "estimates," "anticipates," and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters. Although the forward-looking statements contained in this presentation are based upon information available at the time the statements are made and reflect management's good faith beliefs, forward-looking statements inherently involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to differ materially from anticipated future results. Important factors that could cause actual results to differ materially from expectations include, among others: inability to attract new customers on a cost-effective basis; our inability to retain customers; intense competition; our reliance on retailers and reseller partnerships to sell our products; our reliance on vendors to manufacture the on-premise appliances and end-point devices we sell; our reliance on third parties for our network connectivity and co-location facilities; our reliance on third parties for some of our software development, quality assurance and operations; our reliance on third parties to provide the majority of our customer service and support representatives; our limited operating history; and interruptions to our service. You should not place undue reliance on these forward-looking statements, which speak only as of the date hereof. We do not undertake to update or revise any forward-looking statements after they are made, whether as a result of new information, future events, or otherwise, except as required by applicable law. The forward-looking statements contained in this presentation are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission, including the risk factors contained in our annual report on form 10-K for the year ended January 31, 2017. The forward-looking statements in this presentation are based on information available to Ooma as of the date hereof, and Ooma disclaims any obligation to update any forward-looking statements, except as required by law. CONFIDENTIAL AND PROPRIETARY | 2
Investment Highlights Revenue (in millions) Massive Connected Services Opportunity $105 $89 $72 Unique Hybrid SaaS Platform Solution $25 $28 FY15 FY16 FY17 Q1 '17 Q1 '18 Disruptive Cloud Communications and Annual Quarterly Other Connected Services Core Users (in thousands) Efficient Integrated Go to Market Strategy 879 776 Predictable SaaS Subscription Business/Financial Model 1 Q’17 1Q’18 1: Core users include home user accounts and office user extensions. CONFIDENTIAL AND PROPRIETARY | 3
Mega Trends Drive Our Opportunity Cloud Communications “Traditional methods for voice are ripe for replacement.” - Macquarie SMB SaaS “SMBs are expanding the SaaS market opportunity for vendors.” - JPMorgan IoT “The Internet of Things represents huge potential … need for more … systems to deploy, manage and make use of … devices.” - IDC CONFIDENTIAL AND PROPRIETARY | 4
Massive Market Opportunity Communications $38B 1 Additional Connected 2.1B Users Mobile $6 Services Worldwide Opportunity 77.9M Home Home $13 Lines in North America Infrastructure 32.8M Businesses Automation Business in North America $19 (Up to 20 Employees) Productivity 1: At Ooma’s Pricing Source: U.S. Census, 2014 Non-employer Statistics; U.S. Census, 2014 County Business Patterns; 2016 County Business Patterns Industry Canada, Key Small Business Statistics; Statistics Canada – Self Employment Historical Summary 2016; Infonetics Research, VoLTE and OTT Mobile VoIP Services and Subscribers 6/23/14 CONFIDENTIAL AND PROPRIETARY | 5
Unique Hybrid SaaS Connected Services Platform Linux Based Multi-Tenant SaaS Appliance, Platform Network Router, USB, DECT Radio Mobile Alerts and Control Portal Appliance User Configurable App Services Connected to Many Endpoint Devices Integrated, Managed Platform Enabling Both Communications and Other Connected Services CONFIDENTIAL AND PROPRIETARY | 6
Disruptive Cloud Communications Opportunity Business Home 61M Business Lines in 78M Home Lines in North America North America 33% 4% CAGR 1 CAGR 1 33% Internet/ Cloud 57% 43% Traditional Internet/ Cloud 67% Traditional We Target Communications to Drive Adoption of the Ooma Platform 1: 2012 - 2015 Source: FCC Voice Telephone Services: Status as of December 31, 2015, CRTC Communications Monitoring Report 2016, IDC; U.S. Consumer Landline Voice CONFIDENTIAL AND PROPRIETARY | 7 Services 2014-2018 Forecast
Ooma Services for Business and Home Business Home Services Services Virtual Receptionist Extension Dialing Unlimited US Blacklisting • • • • Calling Music-on-Hold Conferencing 911 Alerts • • • Voicemail • Instant 2 nd Line Voicemail Call Forwarding • • • Multi-ring • eFax Ring Groups Google Voice • • • Ring Groups Extensions • And More! And More! Ooma Ooma Telo Office Analog Phones IP Phones Mobile Phones Wireless/ DECT Bluetooth Headset Ranked #1 for 4 years in a row Ranked #1 for 5 years in a row Consumer Research Leading Publication Home services ranking by the readers of a leading consumer research publication. CONFIDENTIAL AND PROPRIETARY | 8
Leading Mobile Solutions Mobile for Everyone Mobile for Office/Home Talkatone Ooma (Home) Ooma (Business) Powerful Advertising Based Full Featured, Integrated User • • Business Model Experience Extends Ooma’s Customer Reach Pure Voice HD Call Quality • • CONFIDENTIAL AND PROPRIETARY | 9
PureVoice TM Voice Quality Overcoming Internet Congestion % Packet Loss ✓ “Clear and Intelligible Ooma Despite Internet Congestion” 40% PureVoice TM • Full Router/QoS Adaptive • Advanced Codec Redundancy Up to 4x • Adaptive Redundancy Deep ✗ “Unintelligible ” • HD Voice • Encryption 10% “Artifacts in Voice” 3-5% • Smaller Packet Size 10x More • Competitors Complex Codec CONFIDENTIAL AND PROPRIETARY | 10
Compelling Customer Value Business Home Starts as Low as $19.95/mo 2 Free for Basic Service 2 Sample Savings vs. $200 Typical Monthly Bill 1 Sample Savings vs. $40 Typical Monthly Bill 1 Year 1 Year $1,346 $336 2 Years 2 Years $2,892 $771 3 Years $4,438 3 Years $1,205 >$1 Billion Saved for Ooma Customers! 1: For 3 user extensions or 3 lines 2: After one-time purchase and monthly taxes/fees CONFIDENTIAL AND PROPRIETARY | 11
Why We Win Traditional Cloud Ooma Providers Providers Unique New Services Powerful Integrated Hybrid SaaS Mobile Solutions Platform Breakthrough Voice Quality Compelling Customer Value CONFIDENTIAL AND PROPRIETARY | 12
Connected Services - Infrastructure Ooma Internet Security Business Powered by ZScaler Marketing & Promotion • Protect all home devices from Customer internet threats Home Relationship Management Automation • Filter unwanted websites Contact • Threat database updated up to Center 100,000 times a day in real time Communications …and more from the cloud • Monthly subscription Model Networking Infrastructure CONFIDENTIAL AND PROPRIETARY | 13
Connected Services - Automation Partnerships Today Home Security & Nest Amazon Echo Philips Hue Internet Security Monitoring Home Monitoring Home New Business Control … Productivity Connected Motion Window Door Water (More) Home / IoT Communications Sensor Sensor Sensor Sensor …and more Connected Home/IoT Future Networking Infrastructure CONFIDENTIAL AND PROPRIETARY | 14
Driving Adoption and Monetization of the Platform ü Strengthen Ooma Brand Awareness ü Differentiate with Unique + Features ü Increase Ooma Retail Presence and Customer Adoption Security and Peace of Mind ü Monetize via Increased Never Before Possible Premier Take Rate More IoT Partnerships in Development CONFIDENTIAL AND PROPRIETARY | 15
Integrated Growth Strategy Efficient Marketing Cost-Effective Sales Leading Retailers TV / Traditional Media Broad Reach • Low Cost • Builds Brand • Image Online Targeted Campaigns Direct Sales Directly • Through Retailers • Word of Mouth Resellers Net Promoter 68% Digital OEM Score 1 Agencies CONFIDENTIAL AND PROPRIETARY | 16 1: PC Magazine, 2016, for Ooma’s Small Business Solution
Investment Highlights Massive Connected Services Opportunity Unique Hybrid SaaS Platform Solution Disruptive Cloud Communications and Other Connected Services Efficient Integrated Go to Market Strategy Predictable SaaS Subscription Business/Financial Model CONFIDENTIAL AND PROPRIETARY | 17
Financial Overview
Recommend
More recommend
