Ooma Forums

If ooma is doing well, why do they need to borrow more money?

http://www.sfgate.com/cgi-bin/article.c ... 939454.DTL

This link to DSL Reports has some interesting discussion on the matter.

http://www.dslreports.com/forum/r253975 ... operations.

lakeo

Perhaps it is intended to pay for the new ad campaign with Heat: viewtopic.php?t=10598&start=10#p73918

lbmofo:

That means that you will become extremely busy, helping all of those new customers who have purchased Ooma products.

That will be nice

You must own Ooma stock and DECT 6 phone stock!

As with everyone else on here, I am as good as a stock holder in that I benefit directly from Ooma's prosperity and longevity.

I'm an ooma booster, and there are certainly lots of good reasons for ooma to borrow more money. But, it still makes me wonder if we are riding another Sun Rocket.

lakeo

Ah, well -- now all this, just as my Telo has finished paying for itself and showing a long-term saving.

I think as long as Ooma doesn't get reckless in customer acquisition expeditures, I think they will do just fine.

Ooma has already done a great job in making their products widely available online and at many reputable retailers nationwide so I am guessing the business is growing at a pretty good & managable pace yet without a huge price tag.

Taking a look at some cost figures with Vonage, it costs roughly $8, $9 to provide telephony services per line; this is figuring all their Vonage World customers who I am sure are making bukoo loads of international calls.

Therefore, I am sure the cost per sub is considerably less for Ooma (Ex Ooma CMO puts it at roughly $1.75 a month; see below). This figure is relevant in the arena of providing basic/core service with whatever profit Ooma made with selling the hardware.

Then, you got the Premier subscribers (I've seen anywhere from 20% to 40% of the userbase reported) and the folks who subscribe to different international packages not to mention the pay per use prepaid international (I have a friend who pays about $20 a month in prepaid international calls because he thinks the volume of calls is only temporary and doesn't want to sign up to an international package; it has been that way since he signed up mid last year ) and Ooma app users. I am also guessing that Ooma earns about 50% of the porting fee as net; and lots and lots of folks choose to port.

Hence I think Ooma is doing just fine. My 2 cents.

About what the Ex Ooma CMO, Rich Buchanan, said about what the cost is per sub:

Rich was talking about $1.75 a month @0.5 cents per min worst scenario termination cost with average of 350 outgoing minutes; he was talking cost per sub of about $21 a year. BTW, Rich was figuring the life span of the Ooma device @ 5 years.

http://www.fiercevoip.com/story/ooma-co ... 2009-03-19