Ooma (OOMA) 4 Dec 242025 Q3 Earnings call transcript

Hello, and thank you for standing by. Welcome to Ooma's Third Quarter Fiscal Year 2025 Financial Results. [Operator Instructions] I would now like to hand the conference over to Matthew Robison.

You may begin.

Thank you, Towanda. welcome Ooma, Fiscal Inc. and Earnings Quarter everyone, of Call day, to Third the XXXX Good My of Development. IR is and name Matt Corporate Robison, Ooma's Director

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statements securities the within the During presentation, today's meaning laws. forward-looking federal our executives make of will

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include slides presentation resolution GAAP are non-GAAP metrics. from that investor non-GAAP reconciliation our GAAP of Additionally, that expenses also provides excluded to

over hand Eric Now I will Ooma's to the CEO, call Stang.

flow in Third not I QX. forward Ooma's Year EBITDA as was a only new achieving Ooma. net sharing and $X.X look quarter competitively. to exceeded in also we for in we cash look in big financially, expectations secured Each million non-GAAP have result from wins of from Call. us. income, record year this build QX, we our on for QX wins Welcome these in in everyone. is million X Thanks significant including Ooma, revenue, operations. a new QX Earnings joining of customer Hi, our and Matt. QX These customer million to results, adjusted Thanks, Quarter great excited $XX.X Fiscal and wins $X.X but $X.X very forward. Financially, million XXXX for us

million paid our $X.X credit our off and flow cash of debt strength after of operations, on are debt-free. remaining we in the from line end the the now On QX shortly

for have the XX off leverage, acquisition our are Over afforded we $XX.X $X.X starting the operating by last synergies expense to solutions our of months, take million of and our million. Strategically, given back strong paid million product also efforts built have debt $XX and improve bought we combined XXXXHz to hold. stock the a

widget operating in execute the bottom of solution further leverage forward, and Ooma set performed Business growth significant We and coming a including Ooma with to for year a their customers to our Within both and customers for of customer businesses Office, in bookings, strategy expanding ago. we UCaaS promote info of launched features, believe QX. and in QX, well messaging Looking lining create up component total improvement integrations contributed our in from and quarters. Ooma website revenue we more. Street further drive search, our bottom continue one-to-many messaging -- XX% Business we Ooma can our results Business, line Main online revenue engagement templates, to allow a new caller XX%

drive market also as features XX%. of new larger-sized the number secure advanced in tier Ooma It premium Our expand of in taking work our helped in opportunity to we premium percentage for growing a tiers users to Office. to strategy the enable a customers to QX more helped QX

QX We market solution large AirDial, contributed and we learned for the The for a replace sales that of heating implementing customers' take to to up replacement, our Regarding a in is, key a increases. decision-making step-up pricing is course, in that believe carrier and in POTS them. is price us action again driver lines lines copper and in once of of provider copper QX.

best Market growth the year. will momentum late quarter-over-quarter significant lines that and this and the a with be achieve noticed We in copper quarter coming announcements to each. for helped QX, development signed combination yet prior down couple of We shut marketing, fold X,XXX several AirDial. to in including in QX, in larger for compared partner lines our surpass also customers expanding increase number periods product in us several we our features a expect months

quickly business On the we pleased are we time, for significant a to broadband have report I'm partner, moving to are can possible, which has be is relationships. handled. that not they with some business now easily to expect this they chosen they knowledge, AirDial, national the the as want communications that many Internet. news will are AirDial, very company resell Businesses encompasses cable in This at To significant top-tier calendar partner to we which And and only and lines, launch very share. until provider because It the our strategy to front QX. bringing the there remaining and working copper large our existing understanding as this were their with size of of to AirDial. move now is

major Our competitors. who partnership view a way gives as from to them national continue carriers share take they other to

tell, and share an to a you and Aggregator/CLEC partner us huge can to both this to AirDial second Telo. potential. I I'm report also for you. partner major is win win pleased we have new a with signed As a significant resell represents that

for space and opportunity You'll recall has and this residential our also business this sizable We're a selected believe their residential Ooma that the there aggregator is that we POTS market. in Telo we both for for replacement, believe ideal thrilled is their now solution needs.

launched with want this is already Communications, Our an to provides also update one XXX,XXX This to lines has of the customer on quarter. is Frontier primarily you today. earlier to with last customers. and which, partner provide numerous will regional serves partner local course, large announced that approximately launching AirDial. I is around that our partnership business incumbent lines carrier with this U.S. soon They we and month Telo tell of understanding legacy new residential copper now be customers exchange also businesses carriers can XX,XXX I in give the this

As chosen to business have the to X Frontier opportunity Frontier. Verizon. Frontier's we planning may Frontier you development and only that announced than view platform used discussions and have validate longer timing, Verizon. Overall, our own believe to strategy new going has have secure until pleased report several resellers is It solutions. create quarter XX partners POTS their XXXXHz, to solutions our resale with underway. Switching and We each release, now Telo goal AirDial to Telo. for new know, quarters This press wins also not for the recently to not partners launch We likely I'm replacement currently company Frontier, be enablement. total intends the as forward, utilizes identified significant believe for excited large exciting our affected we can add I'm major we more but have is also customer Ooma and recent carrier point is we also AirDial. term, now which now providing formally that launched million $XXX acquire now to with Frontier and engage AirDial which their ago. both by resell Pro AirDial ServiceTitan which further start their XXXXHz partners recently revenue the partner a today trades. ServiceTitan our their to to Verizon contracted continues new for as shared end-to-end we workflows Center Contact They solution, X which out won large to Verizon

they customer expand some to and return with look we're grow with and and their to thrilled now CFO, previously, the business. I more and in we've as discuss results forward detail this to turn discussed As our remarks. call working them our Shig, to over closing outlook will supporting then marquee be

review quarter results XXXX. then everyone. I'm you, full outlook Thank year fiscal going provide our our afternoon, to fourth financial the for and good third Eric, quarter and and

our Ooma well third contribution addition the end year-over-year, strength from was AirDial including driven quarter million, as solidly of and Business, XXXXHz. guidance high was as by range the above of $XX.X of X% up better-than-expected revenue Our revenue

fiscal in as XX% growth In fourth and quarter. accounted was we forecasted in The During and to year the of half prior the compared million in to to the prior in came quarter. product primarily revenue half product IWG services by as year-over-year this total year occur QX, revenue $X installations. year in subscription and compared $X expect growth services driven other second for AirDial and for revenue business saw at about the QX the quarter, in subscription revenue of million seat reductions quarter. reductions of had additional XX% we

QX net of $X.X guidance profitability $X.X million, above On to $X.X million. the million income was our range front, non-GAAP

subscription details some Business revenue. services driven the XXXXHz. by of user and our addition on year-over-year revenue Now grew XX% QX and QX, growth in

revenue revenue grew contribution, business XXXXHz Excluding and year-over-year. X% subscription services

X% residential subscription the services was side, On down year-over-year. revenue

and $XX.X total revenue as XX% total total of or For subscription to revenue revenue the quarter. third of prior services in compared the XX% or $XX.X million quarter, year was million

ended We with X,XXX,XXX total core X,XXX,XXX third down metrics. core customer key decline from At quarter. second XX% the from was increase our reductions on the I IWG Ooma quarter at mentioned core the QX total Ooma details the had is of primarily slightly the impact users user some for third quarter, the Now and XXX,XXX an users The users, in of seat due which we to with of end IWG. AirDial core of Enterprise business the as additions our users sequential Office, users, or earlier. offset end

including by Our Office user, or business Pro blended $XX.XX, and users. Pro X% monthly users, of driven ARPU core increasing revenue and year-over-year mix an subscription ARPU, per services average Plus to increased higher

new take to quarter, XX% Office have see prior Overall, XX% rate we continue higher-tier Plus in users Pro these quarter. third opting was the services. Office Office a subscribed for up users now which Pro of from to the During with these year higher-tier Ooma XX% healthy services, of and

to million grew year-over-year. X% up was annual Our revenue $XXX recurring and exit

XX% Our the to the subscription quarter in second rate for quarter. net dollar retention XXX% was as compared

Now gross on some our margin. details

compared the and margin in for third year. prior as the was subscription Our XX% gross quarter services XX% to

as and Ooma's As year. gross last subscription the gross margin period lower the an gross Product impact XX% margin to this included services compared relative year of and quarter third gross margin. quarter other same the XX% margin, subscription reminder, which for negative negative to a third was for for running XXXXHz fiscal is

were operating we compared which year, third this some an procured margin AirDial improvement we gross year expenses as year-over-year in XX% completed gross revenue product X% revenue saw Total year-over-year of million year. was due reflects $XX.X the XX% the anticipated, an or million, mix for improvement we the heavier gross other period total last As the on prior had which a quarter. in pandemic. On X% product for to overall overall installations, in QX of details increase consumption meaningful as in of expenses. margin basis, and higher was to in offset flat margin. And same quarter QX operating during gross $X.X components product now margin The from up the total a cost

operating or $XX.X G&A million development million in total impact last revenue same year. $X.X X% Excluding million expenses to the Sales the year-over-year the flow a period up expenses X% the for in million debt the the outstanding of XXXXHz, earnings marketing XX-month $XX the quarter the for quarter were and the the primarily $XX.X quarter quarter record $X.X compared net which for X% expenses $X.XX operations total company. the was $XX reduced or or revenue We was company diluted increased year of revenue, and of of $X.X year-over-year, paid free respectively, development prior total a and Cash cash of we represented end, third quarter share the the increase and primarily for G&A remaining channel members. or million of trailing today, million XXX% year generated of income costs. Non-GAAP EBITDA third same for earnings million, were the quarter XX% to for have a debt over per the was per $X.X from or million year quarter cash to balance of million. prior by team the million diluted mainly The of and million we another million to ended another million, end quarter. total was it the quarter. investments full. record marketing million AirDial. XXXXHz the paid we driven to expenses the $XX.X at year Adjusted on compared of as Research $X.X expenses third to compared and flow, by third generated $X.X $X.X was audit-related total quarter. in higher increases basis, record XX.X% year-over-year cash as prior personnel XXX% driven due no up at activity share and total in for third operating ago. We $X for quarter. in and and of the X% $X.XX were of third debt from as basis, a revenue period balance Subsequent down for increase, the with quarter and $X strong was the On And quarterly for by of outstanding. addition

X,XXX On contractors. the headcount front, we ended the and quarter employees with

full Now I and will fiscal provide fourth guidance year XXXX. for the quarter

basis Our a expenses. intangibles guidance been has of certain stock-based and compensation, as gains adjusted on amortization such and is non-GAAP and for nonrecurring expenses

product to million quarter $XX.X in of We to for includes the revenue expect million $X.X to be range million, $XX.X fourth total of $X.X million the revenue. which

We Non-GAAP net expect range non-GAAP million. be $X.XX. be to the between the fourth $X.XX $X.X quarter to in $X.X diluted income is expected to million EPS to of

diluted outstanding quarter. average million XX.X for shares assumed weighted have fourth We the

outlook. million growth and full year guidance now revenue we both of XXXX million. while The fiscal residential revenue are rate XX% to total revenue 'XX, $XXX.X full over profitability expect XXXX, services subscription revenue fiscal revenue raising and $XXX.X to We of X%. business decline assumes fiscal subscription For approximately year

products from year, the services come In terms for of and total revenue and the we revenue. subscription and remainder of mix to XX% from expect revenue revenue approximately other

be $XX.X $XX.X net fiscal million in million. to to for the expect million. our EBITDA on range this guidance income, 'XX As estimate we adjusted we million Based it $XX $XX.X non-GAAP to now range, be to of for

$X.XX range to fiscal 'XX We be $X.XX. for in non-GAAP expect the of to diluted EPS

XXXX. In and and approximately results profitable Eric adjusted closing are our focused strategy summary, with XX.X our back we long-term it million to executing Eric? shares outstanding record remarks. pass flow have with average cash now achieve diluted to for QX EBITDA pleased free solid We for will growth. I fiscal weighted assumed on to remain some

on POTS and new accelerating resale significant partnerships our report results to to residential and wins. you quarters. see smaller-sized continue of to the older tiers our It's hope moving in We're our to to the replacement AirDial QX We and also leaning momentum new for you, coming announce pleasure our need Shig. aging upmarket today customer Thank strong market in of capabilities UCaaS businesses, and are we growing replace in XXXXHz the and for success service. seeing platform on given solutions. And also for premium

our on In addition, We improved bottom on our we we capitalize we execute of growing believe we now deliver community performance take to questions. updating can as line you partners. Thank strategy. as you. We'll forward look our progress

Josh question of [Operator comes line the Riley. first Instructions] with Our B. Nichols from

this the but long-term the the just quarter if about I'm could market kind you made low, and the you subset front? I'm large of the Microsoft's some a announced well kind little of planned optimistic seem cash any partnerships when improving of [ in just increasingly initially, to as from potentially X,XXXHz, flow on the like kind for seems some and become margins. see dynamics what you benefit curious you're relatively that of comment that expectations potential of ] Good as acquisition seeing about for on bit that. of Metaswitch curious it

getting we on announced that -- around that you're further. we've that has we Yes. we really in, my Ooma. Metaswitch today. one justified I technology owns in platforms platform. look then, said it. right. tremendous BroadSoft announced investment them end-of-lifing not both even their to of are it's much older capitalize and script, They've parts are Metaswitch, on that who in it Microsoft synergies seen and control Well, And of made we're since Josh, leaning the all When full forward, as opportunity acquisition, and as

and estimate million across get about are next their X how who be so there. We world. they what what to between XX going capabilities solutions and next those around -- there their think And million world on users are XX need to platforms the the carriers

I mainly with XXXXHz. So because ServiceTitan scale it ServiceTitan, get and we they one XXXXHz but over it's a they've really to on and of we obviously, talked moved acquired when do into it's huge script, at about massive. that in my contemplated solution, because hadn't I for off really a could us we didn't it win been CPaaS

smaller XXXXHz as there So bit use to But great a was which to platform. There's those to pretty APIs, well of the one a wins craft really my have little quarter, into they it kind Europe, is space. platform on including is, very a script also the we of our into which we can do the see exciting. to customers get fact real we had more is opportunities the what didn't other whatever One I uniqueness as in that platform be. in the this design over over with solution XXX some with it's in modern want couple

And if then the moving turnkey, design our we're box go can Now it XXXXHz great just there. out flexibility. to do solutions want they the that we best gosh, of platform creates model. too. customers very But who also, the in want and delivery the Ooma And that, so platform flexible we just a API onto have check are

data from the let much host us that. will doing get as the it for their in own little customer host also as customer, centers services or it themselves in We we'll and but

they're that of carrier BroadWorks every we I of model off or can think what we has BroadSoft, is that a business is Metaswitch. have say solution quite in doing their to market. And just So one a fair you or think it's about significant something BroadWorks of built great for think

of And just space, any in that's change there matter industry. I there. have us launched conversions to and the wanted, say and level to several months there's a out X every land maybe what new they historically you interest. even before it's it or for can happens And out -- we're do it customer solution get start talking to in you. so about a customer to think take platform this a the But today we they that excited want will on do or when about that of I of months, this more have people solution lot craft them that time just

increased that market We part just resources We've are a because our late leaning in. it's opportunity. in sales massive some of business, of

for question last then me. And

get medium-term your you're notice And You and up Based margin. of I comments EBITDA be on for to made. increased some the know in the targets. year mentioned something leverage. guidance, fair or EBITDA maybe business release comments implied then XQ, margin did to seeing the in assume some full for you you're in last X%-plus operating based the you about already but I you're that not what the quarter, outlook potentially then should you on formal seeing took that and like giving your you could XX%-plus

Yes. question. Josh, thanks for the

So correct. you're directionally

income will our, in of guidance If you of EBITDA non-GAAP you X.X% QX. midpoint sort and the the take a midpoint about say, let's back give EBITDA, net margin into

to progression we we QX, like year, And said, then further midpoint, to so, QX, we QX, X%. X.X%. going if made improvement we you quarter, about margin in just we're this reported a think I in EBITDA X.X% more Last just QX. X.X%, were X%, see And rounds

relation EBITDA next on ready I talk of you're pretty to said, pretty investor double-digit about path to good that model we're to, we think think the not and every deck margin the to improvement, as good referring our a but back Eric midterm we're in publish leverage. quarter, the some year. is operating Obviously, we're next to get showing we making year, So guidance which that progressing

would I just important business add, getting And to without profitable into guidance, this how it's Yes. Josh, remember is.

company And invest a recurring chose that feel But growth. I years, the great the in market growth. to better development and very like in like over areas several that invest margins exploiting frankly, we've more X that stable or have what million, have level could creating all today. profit of part we we to revenue million in the And levels, $XXX for go last base. do the the solution the in we lot profitable of to made don't and a X at be And profit, that. we back believe in gross of something off maybe far. XX-plus-percent We we these we it's leading past. them throws a the $XXX if honestly, strides matter areas is margin, at gross have where gross need now extremely We

driving a go really train we a of be as matter performance. forward to here leverage bottom it's So on line continuous improving of

question Markets. comes of Latimore the next Capital Our from line Mike Northland with

Congrats I had to Is clarify on the cash the second flow say wins strong in in second just In bookings. want than the higher new AirDial. third to on and you fair here. AirDial had quarter, you record bookings quarter, quarter? said it

did, yes. We

Okay. rate Got quarter? obviously, growth in fourth of that implied Does the improvement margin it where the assume -- is then this about, that Or it. some does And in and that remains revenue rate? the assume revenue growth dynamic. sort you improving kind talked of

Yes.

take about Directionally is And we're So year-over-year absolute on based away year midpoint. more the QX. the I down in in the in you particular. guidance sequentially the be gave, seeing context we at of revenue QX, X% and my that range the in though, dollars are can seeing, that -- speaking, think growth to on this the fiscal Mike, guidance leverage R&D for R&D what QX we

that gross to other less the bit the that's also more extent too, part us we little anticipate So that's And versus a margin, QX. overall the product that revenue in giving QX leverage.

QX. versus bit little a margin overall the helps that So

on places QX. are Yes. to in the profitability a us the incremental gives of couple edge So that these improve

pretty something a then just of the into said is in yes, little Or -- enhanced on And -- then will it quarter there the okay. end And of that this that kind more definitive fourth Is Okay. that, 'XX? for IWG. churn that go you be could churn? the there's

we're them which doing their that support very able get them to optimize, say with And frankly, it's I churn we're We be to, It's could them don't. of don't to fundamental outlook. there which more customers hard streamline that them, and and to closely we phone and forward. our look much. service fully. work help think We with as how including always think

So there some. be could

We also have adds.

of every quarter. number a quite have open We centers new

Sometimes it can a new quarter centers to in opening. XX be XX

think to us So year. but be into it's I could also exactly, forecast next that it's with hard something

Our line Lake next question Martinuzzi of comes Markets. Capital from with Eric Street the

is layer QX Yes. guide you runoff? In to the absence revenue pick or adjusted would the IWG? words, in impact be the the What just of the that of I X.X% wanted Is quantify organic growth. further. other -- apart one guide can there for IWG midpoint

Yes. I too it, I'm appreciate of I mean It the QX. the not specific huge be question. going in the that to happened be Eric. it wouldn't because middle about

already impact of was the realized half So QX. in

quarter X.X full QX. got we another So so effect, or months impact in

there's So that it's of guess, But impact. not point, an But what little to to to thought. more think big residual and it's as that a large not churn. of expecting of answer impact your specific the your question, that as you churn IWG we I we're in QX,

might IWG, recall, churn at that fiscal too, for a while. year and early this happen very about then talked You didn't we it

talked year we And now is already about some and talking the of about pushed just what got what out. in we're earlier

we about in talked of that being to relation revenue to Yes. revenue. itself, churn IWG to total Eric, our just low percentage single-digit small And context And realizing the relatively you, off concentration. remind you're

context the So that of gives you another too. of impact it,

All Okay. congratulations Frontier And right. disruption the able to then name being on delay, actually the customer. the

we disruption potential the ramp-up the what guys Frontier of was by as the long Verizon, talk are have with kind what in relationship? with And expectation? here delay. the this you do spitballing the delay acquisition prior did about versus How You

-- Yes. end the September, that forward of move And to out to go It's interesting came announcement wanted thought QX of getting kind now. I And it that of one and still think Frontier wasn't early in are until when was they telling thought ours us close this are that lot that getting about. programs just there that is in -- many of are just a is about. Frontier

wait We have move about They might want reasons sooner. to There with planning discussions are do. they reasons them. with can they continue to There think to do some some until Verizon. they to are why continue why want want to what they might

hand lot to can now probably hundreds you to a service replaced. [ that as with able lot can And ] that are. can I be with to where I an is only and process XX customers say away. with not of RFP are, we Verizon. they You might have their they them that get we -- through residential have problem going as of start when I can And tell planning well cap thousands months who they went to over a need they But be phone

remain to-date, could Verizon stranded residential for pretty excited is away lines POTS quite in as this Verizon where go. being to to where because us are what well solution a And really not about about determined they phone knowledge our or has going be matter lines exciting going for price. we the actually So in with still their up this involved do will end on able

strong they state they'd the like to us. be of important most move list the starting talked If government So I think kind because lot for strong on other today, us I'd of like this partners national And I very are forward They're to to I unfortunate. cable much with Obviously, was win and is the But it's company, think and of make it. I'd a enterprises. affect I big short to win, going local. a that about win now. it's federal top-tier don't also and a in

I I asking fast have even mean, are say to that they want solutions, now -- I move for sure, think I can't think and provide them. but customers to for they they

soon So hand who we as a here new in to as wants have partner possible. launch

what figures guidance -- while to if they're do we a crack. to and or Frontier all think about I to conference little now completely XXXX. it's And talking time gestate. lines that's can next of these the business read can going million-plus we were big that U.S. to going to while things And needing about the wouldn't where have X or a says time. so to And call expect go in more if a XX -- do. Also, the we be work long that a partnerships all a AT&T not didn't we That's things copper we in take lot lines subset that out you over and nut years, by that just recently copper I bit that doing. something give X their replaced happen

think we've substantially big with we're partners. that, demonstrating think we win we're winning -- got And can these we ones. the I with So here

So I see that's it way maybe more but the what just bigger in asked, that's context. the than you

for the depth win you and It on outlook. as I congratulate added to the the certainly national the is company good that appreciate cable quarter -- top-tier as well want results with and the

next from line Patrick comes Citizens Our of question with Walravens JMP. the

election? Pat. for does post on what customer implications like to Eric, environment Nick is are there any This regards the macro behavior? And look in

That's a question. good

that with strong. in the the the quarter during QX, I holidays let me and a And businesses start then very involved quarter have certainly, said, hardest don't take So time. the now one for changed know not second. the but we things, see predict being we're market election things worse. has and busy is this small gotten of angle, during us still to That always I'll one the because

it position with with small dynamics. that employees from off small businesses a use. different at those And put of when feel driven and that's AirDial with others in we've have X their way. We and businesses million-plus UCaaS solution X markets out type small to look got go there's you there, America to me small a then Office, to we're adopt unique And market and XX think serving what easier own vast Ooma and business North a business markets with are after. with serving Let we unique very XXXXHz

the good to of move to them and yet -- cloud. have portion a So

the just about QX our going the kind thing. about us a of we always to of if But how say, anything, I'd environment we're doing keep a similar because or macro holidays. little concerned but election, careful better QX little since go, forecasting the So and it's is maybe has for

Arjun of Blair. line Our William next from with Bhatia comes the question

on Arjun. of earlier quarter. This is Chris congrats the on echo want solid for a to I some

any to see capital going should cash record terms allocation you, you are of having flow there we and paid forward? in. debt now think with good So coming about off some how changes completely it's behind in the And

spending opportunistic are to and also before, at year the the we Yes. we said we question, look we in And opportunistic look million doing want we one also to we of be past. or talked that about prospectively. in acquisitions so, And about as is so customer base -- at in last I the talked the about appreciate areas $X continue the Chris. being Eric buyback.

of look we other little over a gave the going XX did add-on do team us from buy more from need our do little a is at us another -- forward. and operations. great the a buying It's benefited at so obvious residential sheet and forth. So to think build we the reducing of when the same able for soon, that -- that want when that to just to I flow last And right are you think good cash the to that inventory the a talked time, we're inventory the we cash point more it job more so flow stock, balance -- cash do about more we so batch opportunities buy going extent some at price. And put we resource one inventory. at we exciting on back We to to -- give months,

business. going we So cash that's use be of to that another grow to see our

one Got there. helpful then question. other color it. very That's all And

back so to at quarter, the this churn, you have inflect being up in half throughout into the to kind back that you level or above? of sort seat 'XX of fiscal us, largely In the IWG fourth terms NRR year going least of XXX see what of the anticipated behind do expect

I to question what ready IWG about, see not for talk correct? the we're -- asking, you're increase Chris, I It's users do that's you're half? think think in around the Yes. we second in asking, -- coming the back

pick than IWG. was retention, churn from expected saw net up we when kind think quarter about I of last lighter had seat it I you asking

back just churn to past saw expecting the to expect lap as I move wondering, you net or... -- year, inflect were retention that this see level that we to if was as would or And we XXX% of so sort the anticipated churn, we if you

Oh see. I see, I

Thank the about clarification. for Yes. rate. you retention asking You're

Correct.

Yes.

retention areas stabilization on impact So it good rate described, retention that to in offset ways as hope we just we in other think at think QX, there's the have think the to I reported. I I in case, I the from we where churn And see rate. year, given and good momentum little XX% a get that we expected are there may a too. into too, in AirDial But any next

So in XX%, think stabilize the I it's going in range term. XX% to the short

the Benchmark Matthew question The next Company. Our with of line Harrigan from comes

fair would other's And the they that road bouquet, next Or you into As technology X, process far developments. you I Show, years. an you these last all everyone of thing ever a the of I map have each Are it to cable do couple diligence incremental you've very accelerate SCTE I due national much you think deals whichever technology already is as the wired it in a bit deal talk companies arrangement as the much pretty phenomenon extent? it's does I'll would on And about you but with on and then congratulating Cable call, kind when it a product confidence -- the their the double-digit is, suspicion. in do know whether EBITDA confidence which else that? already or discussions assume who a sure the in to don't RFP I you in process. And least, have pretty the at been not thing Engineering reciprocal didn't certain strategies. to but growth of this one they X Are me-too refer over the on I'm tandem or to of I'll know, one the But a follow or with? as terms X in everything expressed given secondly,

That's continued good list, of really announcements who Yes. busy. it's part it's I but lines increases fueling the it's down quite good shutting a I But momentum of price question, And the -- we're where places question, about getting that's them shut late on and keeping and a just the the and are what. seen I can talked talking to are say down, a or about can't your not long the first comment -- on about. really market about we've copper they us

But think solution and helped that. here through demonstrate best have had I we've the think in -- of could the So we We space. we go some won't. the I why again, wins

dollars a done forward. building in on we going that a partnerships the be as bottom fortunately, scale happens leverage to to EBITDA are a think lot said the it meaningful go The and increase We to us going EBITDA. will more -- front. help bigger we to will, need additive be we've words, we but have of position forward with that. to earlier do of And a lot we profit get now and in into drive company, in I kind partnership can whatever our plans they on line gross faster as of which already that faster,

North on the is looking you're as well, Europe AirDial at hard America priority. first though presumably, And even

Yes.

of Europe mindful the We America. in don't what potential could that. the product to that and beyond would go is North do need this are things and But Europe like that anything in front. on announce differently yes, to We for an have AirDial application

But you'd do retinkering to account of some regulations over electrical have presumably? of some on there the

a be while. modem have would little different product The that's bands, it, to different. a we've about but in a There stuff would thinking been that be different all for

comes Partners. line Brian of Global question next with Kinstlinger from Alliance Our the

predict, hard to know I Eric. it's

own in them. press They you then market sound they're to their sounds copper should up. very several be In one terms recent the you've they of talked even lines, bullish. AirDial, And move quickly the It about motivated. heating of own that quarter, trying like so announced first the partners in

think So terms in how fiscal some 'XX? when progress? will Is should measure revenue, to impactful the be more investors in think it catalyst I about do P&L? of AirDial means bookings, guess, what you this of

partnerships quarters, the of The going we'll in the have they're a question, year I've market in a we lot them, rate we'll And some lot and is more at. market there time I seeing and is happen. last a be we'll give X what to moving about under early these been March when because next talking fair Brian. That's annual more think guidance know

And this. But under with a reason their why going to When all ramp-up well to so it they're it. reselling to is be I see or a do with of well signs the us, solution their aren't time name billing. with there in don't going we partners these play

force to concepts, to them. sales then there's the longer They so work roll And And it takes done. Customers do works the customer, at rolled or the be that they get pace out. out maybe it all for be a of done, bigger time. training to proof coordination take

when you now. So to that's we get much out certainly we able work and prepared give what do true. think on But it will right guidance that to a not in next year to expect we'll I think firmer picture how be just when. giving I'm March, to

to of half. It's going given likely 'XX. But be right? first to half answer be it's your Yes. more ramp, fiscal that not the second Is the the to

everything to this And you don't by I we next national see. depends launch for mean we QX year. it. pent-up know and see. take you top-tier company they but what step mean in have We'll cable demand, know on we'll step tell I it know We'll wants ramp. as what It obviously by

past. Residential, and for for partner lines like for we've opportunity But the what's XX,XXX XXX the the Enterprise, AirDial asked on on a sure this market I'm that? in lines on

large about You're partner, about? I the spoke talking second

[Indiscernible]

Yes. Yes, enough. fair

the We take here. don't partners time way, smaller by even also, won that to mention some

opportunity of addressed. at one with Telo. of of may be one kind the on is majority every Business, convert like XXX,XXX Residential, think get In that, numbers theory, a XX,XXX if a we customer without But those opportunity, equipment because do needs works it their customers significant line every look that may to just So AirDial will or new has a solution. when in it, call to cases, potential to to we or that a ultimately upgraded them some lines

them, that's kind get fine. them okay. the timing we that's them we're XX-plus or years it. It if take that but the partners to see so And We're converted, adding X keep at X way all of works could And we rate of adding now.

So that's we -- it. but yes, see how

XXX,XXX what But rough adds lines, all equates of they kind converted, no basis a if revenue? there's for example, of loss lines -- XXX,XXX on lines

I revenue. to now us to be at AirDial in suggest investors recurring That's to to as We Well, month. model in Oh. a careful. have about about $XX $XXX revenue you a year

So you can multiply that out.

Yes.

I way, we partner we partner give a other And these we're connection are the of majority is doing or the providing convert bit it. said, a these majority little I We on But can't the strong partners. the And as to that think regardless. significant margins us. vary the -- by lines when whether for to are pricing ultimately is pricing numbers can't cellular share or the for what partner a depending can going

queue. I gentlemen, remarks. the over no questions in management the for and back to now closing I'm further like to call would Ladies showing turn

before happy you. appreciate we Thank the we holidays, keep and you. time here hard Bye-bye. next Thank today. everyone's if We'll can to talk. working everyone. the look attendance not forward holidays to And Well,

participation. for you gentlemen, this Thank call. your today's and Ladies concludes conference

You may now disconnect.