Ooma, Inc. OOMA recently announced the launch of Ooma Wi-Fi service to streamline day-to-day business operations and ensure consistent broadband connectivity. It will also bolster employee productivity for organizational betterment. The latest move is considered to be a boon for small and medium-sized businesses (“SMBs”) as it provides a competitive advantage with affordable Wi-Fi management to reinforce critical virtual connectivity requirements amid the ongoing COVID-19 crisis. In spite of these positive endeavors, the company failed to instill investors’ sentiments as its shares declined 2.7% to close at $16.72 in Friday’s trading session.
Markedly, Ooma Wi-Fi has been co-developed with Extreme Networks, Inc. EXTR. Last year, Extreme Networks had acquired a leading cloud-managed networking services provider — Aerohive Networks. Interestingly, this partnership is likely to support Ooma SMB customers with best-in-class cloud and management capabilities. Further, Ooma Wi-Fi also incorporates the expertise of ExtremeCloud IQ management platform to accelerate Wi-Fi-as-a-service deployment with avant-garde wireless connectivity solutions. The Wi-Fi solution is believed to be an excellent add on to its broad product portfolio of products as it will not only minimize the complexities associated with advanced wireless networks but also generate additional revenue opportunities for network vendors.
Ooma Wi-Fi is an enterprise grade Wi-Fi management solution that has been specifically designed for SMBs. The plug and play solution keep guests and employees on separate networks to optimize Wi-Fi performance with minimized conflict. The solution is backed by a 24x7 dedicated customer support and deploys access points with utmost flexibility. It is exclusively available to the Ooma Office service customers and augments the capabilities of Ooma Office, an enterprise-grade phone system for SMBs. Currently, Ooma is offering three access points variants — AP 30, AP 150 and AP 250 — to Ooma Office customers with affordable plans. Notably, the Ooma AP 250 provides enhanced coverage of up to 3,000 square feet while AP 150 covers up to 1,000 square feet. AP 30 is a Wi-Fi extender for wireless mesh connectivity.
Ooma Wi-Fi is considered as a perfect accompaniment of Ooma Connect. The fixed wireless Internet solution works in sync with Ooma’s reliable business phone service in a convenient bundle. This makes it a “one-stop shop” platform for employees and customers. As a result, Ooma Wi-Fi can also improve the quality of voice services by prioritizing data for phone calls. It also enhances advanced features like ring groups, multisite access and virtual receptionist with revamped office layouts. Apart from providing seamless and cost-effective Wi-Fi infrastructure with the introduction of Ooma Wi-Fi, the company is also providing four Wi-Fi supported phones that will help small businesses to run more efficiently and remain flexible amid these trying times.
Ooma is well-positioned to benefit from highly customizable technological innovations and strong aligned execution amid coronavirus-induced disruptions. The Sunnyvale, CA-based communications solution provider is scheduled to report second-quarter fiscal 2021 (ended Jul 31, 2020) results on Aug 25, after the closing bell. It is expected to witness higher revenues on a year-over-year basis, driven by Ooma Business and Ooma Residential services. The company has been a strong performer despite the COVID-19 crisis and is focused on reinforcing the sophistication of enterprise Wi-Fi networking to SMBs. Although it does not enjoy adequate limelight compared with companies like Zoom Video Communications, Inc. ZM and RingCentral, Inc. RNG, it has efficiently established a resilient business with lower-cost options on the back of a robust liquidity position.
Shares of the Zacks Rank #3 (Hold) company have rallied 38.6% compared with the industry’s growth of 4.4% in the past year. Ooma has a trailing four-quarter earnings surprise of 228.2%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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