Kevin Pimental

Kevin Pimental, on for Brian Kinstlinger, asked about business trends with Ooma's largest UCaaS customer, IWG Regis, and whether to expect meaningful growth from that account in the next 12-18 months.

Answer

CEO Eric Stang responded that the planned rollout to IWG Regis is complete across all targeted countries. As a result, he expects the revenue contribution from this customer to be essentially stable going forward.

Kevin Pimentel from Alliance Global Partners asked for an update on the monetization progress for the MatchPoint technology with major studios, including details on the sales cycle. He also followed up with a question about the strategy to drive stronger revenue contributions from the podcast business.

Answer

President of Technology Tony Widore responded that the MatchPoint sales pipeline has more than tripled in the last quarter due to a new sales team, though deals with major studios have longer cycles. He also noted a new pilot for CineSearch with a top-five TV OEM. President Eric Opeka addressed the podcast question, explaining the strategy is shifting to higher-margin direct sales driven by a newly hired, experienced sales team that is already closing six-figure deals.

Kevin Pimental, on behalf of Brian Kinstilger at Alliance Global Partners, inquired about the progress of converting large MOUs into signed contracts, which ones were closest to closing, and the primary uses of the recent capital raise, including potential M&A.

Answer

Jay Chandan, Chairman & CEO, confirmed that MOUs for Wanhai Port and ADE were already converted to contracts and that other projects, like one with the Thai police, are in mature stages with completed POCs. He also stated the capital raise is for funding large projects, supporting M&A in India and the U.S., and R&D. Bruce Bower, CFO, added that project lifecycles vary and the company is cautious with forecasting due to potential shifts in timelines and scope.

Asked for an update on the progress of converting large MOUs into signed contracts and inquired about the primary uses of the recent capital raise, including potential for M&A or increased expenses to drive growth.

Answer

The company confirmed that the Wanhai Port and ADE MOUs have been converted to contracts, with others in final stages. The recent $105M capital raise is intended to fund large projects requiring significant bid bonds, pursue M&A opportunities in India and the US, and invest in R&D for products like SD-WAN and co-engineering solutions with partners like NVIDIA.