XML 16 R9.htm IDEA: XBRL DOCUMENT v3.25.1
Revenue and Deferred Revenue
 3 Months Ended
Apr. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue and Deferred Revenue

Note 2: Revenue and Deferred Revenue

The Company derives its revenue from two sources:

Subscription and Services Revenue is derived from recurring subscription fees related to service plans such as Ooma Business, Ooma Residential and other communications services. Service plans are generally sold as monthly subscriptions; however, certain plans are also offered as annual or multi-year subscriptions. Subscription revenue is generally recognized ratably over the contractual service term. A small portion of revenue is recognized on a point-in-time basis from services such as: prepaid international calls, and advertisements displayed through the Talkatone mobile application.

Product and Other Revenue is generated primarily from the sale of on-premise devices and end-point devices, including Ooma AirDial, and to a lesser extent from porting fees that enable customers to transfer their existing phone numbers. The Company recognizes product and other revenue from sales to direct end-customers and channel partners at the point-in-time that control is transferred.

Revenue disaggregated by revenue source consisted of the following (in thousands):

 

 

Three Months Ended

 

 

 

April 30,
2025

 

 

April 30,
2024

 

Subscription and services revenue

 

$

60,259

 

$

58,389

 

Product and other revenue

 

 

4,770

 

 

4,110

 

Total revenue

 

$

65,029

 

$

62,499

 

The Company derived approximately 62% and 61% of its total revenue from Ooma Business, and approximately 35% and 37% from Ooma Residential, for the three months ended April 30, 2025 and 2024, respectively. No individual country outside of the United States, and no single customer, represented 10% or more of total revenue for the periods presented.

Customers who represented 10% or more of net accounts receivable were as follows:

 

 

 

 

 

As of

 

 

 

 

 

April 30,
2025

 

 

January 31,
2025

Customer A

 

 

 

 

12%

 

 

23%

 

Deferred Revenue primarily consists of billings or payments received in advance of meeting revenue recognition criteria. Deferred services revenue is recognized on a ratable basis over the term of the contract as the services are provided.

 

 

 

 

As of

 

 

 

 

April 30,
2025

 

January 31,
2025

Subscription and services

 

 

 

$

15,972

 

$

16,601

Product and other

 

 

 

 

6

 

 

8

Total deferred revenue

 

 

 

$

15,978

 

 

16,609

Less: current deferred revenue

 

 

 

 

15,958

 

 

16,586

Deferred revenue, non-current

 

 

 

$

20

 

$

23

During the three months ended April 30, 2025, the Company recognized revenue of approximately $11.1 million pertaining to amounts deferred as of January 31, 2025. As of April 30, 2025, deferred revenue was primarily composed of subscription contracts invoiced during the first quarter of fiscal 2026, as well as amounts recorded during fiscal 2025 for annual contracts.

Remaining Performance Obligations. As of April 30, 2025, contract revenue that had not yet been recognized for open contracts with an original expected length of greater than one year was approximately $37.7 million. The Company expects to recognize revenue on approximately 45% of this amount over the next 12 months, with the balance to be recognized thereafter.