Ooma Broadens SMB Customer Base with Acquisition

MSP TODAY NEWS

Ooma Broadens SMB Customer Base with Acquisition

By Greg Tavarez

Ooma is connecting its customers in smarter ways through its cloud-based software service platform and seeing positive financial results because of it. For Q2 2023, Ooma reported a 12% year-over-year increase in revenue, up to $52.7 million. Ooma’s adjusted EBITDA was $4 million, compared to $4.1 million in Q2 2022.

Ooma is expecting Q3 2023 total revenue to be in the range of $56 million to $56.5 million and is looking to add new businesses to the smart communications platform for businesses and consumers.

Whether you’re a single-location business looking to move on from your legacy communications system, or a multi-site business looking for a consistent, easy-to-manage communications experience across your organization, or something in between Ooma offers a business communications platform that embraces today’s evolving workforce.

It’s also looking to continue its growth and, to help accelerate that trajectory, Ooma acquired Junction Networks, which does business as OnSIP, from Intrado for about $9.75 million.

“We’re delighted to welcome OnSIP into the Ooma portfolio of business solutions,” said Eric Stang, CEO of Ooma. “OnSIP serves a marquee collection of approximately 50,000 primarily small business users and is well-respected for the ease of use and flexibility of its services and strong customer support.

OnSIP provides UCaaS solutions designed to make cloud communications approachable for small businesses, like Ooma Office. This allows customers to utilize modern communications tools to enhance their business while streamlining deployment and ongoing management. OnSIP customers choose between unlimited monthly plans and metered pay-as-you-go plans.

“We believe the acquisition of OnSIP is complementary to our strategy to extend our leadership in serving SMB customers and will accelerate overall growth of Ooma Business,” said Stang.

Through the acquisition, Ooma expects to bring more than $10 million in annual revenue via its SMB customer base.




Edited by Erik Linask

MSPToday Editor

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