Ooma Bundle
Who Owns Ooma?
Understanding a company's ownership is key to grasping its strategy and accountability. Ooma, Inc., a telecommunications firm, shifted its ownership dynamics significantly after its IPO. Founded in 2004 by Andrew Frame and Michael Cerda, Ooma aimed to use high-speed internet for affordable communication services.
Ooma provides cloud-based communication solutions, including VoIP, unified communications, and smart security, replacing traditional landlines with flexible, cost-effective alternatives. The company's strategic focus on various business segments and wholesale platforms positions it for ongoing expansion.
As of January 31, 2025, Ooma reported total revenue of $256.9 million for fiscal year 2025, marking an 8% increase year-over-year. Subscription and services revenue constituted 93% of this total. The company's product offerings, such as those analyzed in the Ooma BCG Matrix, contribute to its market presence.
Who Founded Ooma?
Ooma was established in 2004 by Andrew Frame, a former Cisco Systems executive, and Michael Cerda. Their initial concept was to create a 'VoIP in a box' device utilizing peer-to-peer VoIP technology. The company, initially known as Explore Networks in 2003, aimed to provide free long-distance calls by leveraging high-speed internet.
Founding Vision
The company's genesis was in 2004, driven by the founders' vision for innovative communication solutions. Their initial focus was on leveraging internet technology for telecommunications services.
Early Product Launch
The first products, the Ooma Hub and Ooma Scout, were officially introduced to the market in 2007. These devices were central to the company's initial offering of voice-over-internet-protocol services.
Influential Advisors
The company benefited from the guidance of notable figures in the tech industry. Shawn Fanning and Sean Parker, founders of Napster, served as advisors during Ooma's formative stages.
Seed and Series B Funding
Ooma secured initial seed funding and later completed a Series B funding round in 2007. This round raised $12 million from prominent investors, including Worldview Technology Partners and Draper Fisher Jurvetson.
Subsequent Funding Rounds
Further investment was secured through a Series C round in September 2008, raising $16 million, and a Series D round in June 2009, which brought in $18.3 million, primarily from Worldview Technology Partners.
Total Funding Milestones
By January 2012, Ooma had raised a cumulative $83.3 million in total funding. This included a significant round of $17.3 million with participation from Draper Fisher Jurvetson and Founder's Fund.
Andrew Frame led the company as CEO until 2009, at which point he was succeeded by Eric Stang. This leadership transition marked a new phase in the company's operational and strategic direction. The early funding rounds were crucial in supporting the development and launch of Ooma's innovative communication products, laying the groundwork for its future growth and market presence. Understanding the Growth Strategy of Ooma provides further context to these early ownership and funding dynamics.
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How Has Ooma’s Ownership Changed Over Time?
Ooma, Inc. transitioned to public ownership through its Initial Public Offering (IPO) in July 2015, listing on the New York Stock Exchange under the ticker symbol 'OOMA'. The company's market capitalization stood at approximately $326.04 million as of July 2025, with its stock trading at $11.50 on July 29, 2025.
| Key Stakeholder Type | Approximate Ownership (%) | Notes |
| Institutional Investors | 80.42% | Includes major firms like BlackRock, Vanguard, and Renaissance Technologies. |
| Insiders | 12.00% | Reflects holdings by executives and board members. |
| Public/Individual Investors | 64.77% (range) | Represents ownership by the general public and individual shareholders. |
The Ooma ownership structure is predominantly held by institutional investors, who collectively owned approximately 80.42% of the company's stock as of the latest available data. This significant institutional backing underscores the confidence of large financial entities in Ooma's business model and growth potential. Insiders, including key executives, hold around 12.00% of the company's shares, indicating a strong alignment of interests between management and shareholders. The remaining portion is distributed among public and individual investors, with estimates ranging from 9.32% to 64.77%, reflecting the broader accessibility of Ooma stock since its IPO. Major institutional shareholders include prominent names such as BlackRock, Inc., Trigran Investments, Inc., Vanguard Group Inc, AWM Investment Company, Inc., Acadian Asset Management Llc, Renaissance Technologies Llc, and JPMorgan Chase & Co. This diverse ownership base influences the company's strategic direction, which has seen a continued emphasis on expanding Ooma Business services, evidenced by an 18% year-over-year revenue growth in Q1 fiscal 2025. The acquisition of 2600Hz in late October 2023 further bolstered Ooma's position in the UCaaS/CPaaS market, a move likely supported by its key investors.
Key Insiders and Their Holdings
Ooma's executive team holds significant stakes, demonstrating a commitment to the company's success.
- Eric Stang, President and CEO, holds 1,950,750 shares, representing 7.07% of the company as of June 2025.
- Andrew Galligan holds 0.87% of the company's stock.
- Shigeyuki Hamamatsu holds 0.73% of the company's stock.
- Jenny C. Yeh holds 0.66% of the company's stock.
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Who Sits on Ooma’s Board?
The Board of Directors at Ooma provides critical governance and strategic direction for the company. This board is composed of both executive and independent directors, bringing a diverse range of experience to their oversight roles.
| Director Name | Role | Key Committee/Affiliation |
|---|---|---|
| Eric B. Stang | President, Chief Executive Officer, Chairman of the Board | Executive Leadership |
| Andrew H. Galligan | Independent Director | Chair of the Audit Committee, Former CFO |
| Peter J. Goettner | Independent Director | General Partner at Worldview Technology Partners (early investor) |
| Judith Hand | Independent Director | Compensation, Governance, and Nominating Committees |
| Russell Mann | Independent Director | Audit, Compensation, and Governance Committees |
| Susan G. Butenhoff | Independent Director | Chair of the Nominating & Governance Committee |
| William D. Pearce | Independent Lead Non-Management Director | Chair of the Compensation Committee |
| Jenny C. Yeh | Senior Vice President and Chief Legal Officer | Board Member since January 2021 |
Ooma's voting power is structured around a one-share-one-vote principle for its common stock. Stockholders of record as of April 10, 2025, were eligible to vote at the company's 2025 Annual Meeting of Stockholders held on June 5, 2025. The board actively recommends voting on various proposals, including director elections. While there are no disclosed dual-class shares, significant insider ownership, particularly by CEO Eric Stang, grants substantial influence over corporate decisions. The board benefits from an average tenure of 11.5 years, reflecting considerable experience among its members.
Ooma's Boardroom Dynamics
The composition of Ooma's board highlights a blend of operational leadership and independent oversight. The average tenure of 11.5 years suggests a stable and experienced group guiding the company's strategy.
- Eric B. Stang holds key executive and leadership roles.
- Independent directors bring external expertise and governance focus.
- Early investors, like Peter J. Goettner, maintain a connection to the company's origins.
- The board structure supports Ooma's commitment to shareholder value.
- Understanding the Target Market of Ooma can provide context for board decisions.
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What Recent Changes Have Shaped Ooma’s Ownership Landscape?
Recent financial performance and strategic acquisitions have influenced the ownership landscape of Ooma Technologies Inc. The company has demonstrated consistent growth, culminating in a debt-free financial position as it entered fiscal year 2026.
| Fiscal Year | Total Revenue | Non-GAAP Net Income | Cash Flow from Operations |
| 2024 | $236.7 million | $15.4 million | $13.3 million |
| 2025 | $256.9 million | $18.0 million | $26.6 million |
The acquisition of 2600Hz in late fiscal 2024 marked a significant strategic move, aiming to bolster Ooma's presence in the wholesale telecommunications market and enhance its service offerings to larger partners. This aligns with the company's continued investment in its Ooma Business segment, which experienced an 18% revenue increase in the first quarter of fiscal 2025.
Institutional Investor Dominance
Institutional investors hold a substantial majority of Ooma's stock, accounting for 80.42%. This indicates significant backing from large financial entities.
Insider and Retail Investor Holdings
Insider ownership represents approximately 12.00%, while individual retail investors collectively own around 64.77% of the company's shares.
Recent Insider Activity and Share Repurchases
In June 2025, several insiders, including Andrew Galligan and Eric Stang, engaged in stock sales. The company also strategically repurchases its shares when the price declines, utilizing its free cash flow.
Analyst Outlook and Growth Initiatives
Analysts maintain a 'Moderate Buy' rating for Ooma stock, with an average 12-month price target of $17.63, suggesting a potential 46.53% upside. The company's focus on solutions like AirDial and international market expansion further supports its growth trajectory, impacting its overall Revenue Streams & Business Model of Ooma.
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