Gross Margin % is calculated as gross profit divided by its revenue. Ooma's Gross Profit for the
three
months ended in Jan. 2025 was $39.9 Mil. Ooma's Revenue for the
three
months ended in Jan. 2025 was $65.1 Mil. Therefore, Ooma's Gross Margin % for the quarter that ended in Jan. 2025 was 61.34%.
The historical rank and industry rank for Ooma's Gross Margin % or its related term are showing as below:
OOMA'
s Gross Margin % Range Over the Past 10 Years
Min: 52.84 Med: 60.11 Max: 63.68
Current: 60.74
During the past 13 years, the highestGross Margin % of Ooma was 63.68%. The lowest was 52.84%. And the median was 60.11%.
OOMA's Gross Margin % is ranked better than 70.54% of 2614
companies
in the Software industry
Industry Median: 40.925
vs OOMA: 60.74
Ooma had a gross margin of 61.34% for the quarter that ended in Jan. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Ooma was 0.50% per year.
Ooma Gross Margin % Historical Data
The historical data trend for Ooma's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Application subindustry, Ooma's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ooma's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, Ooma's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ooma's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Ooma (NYSE:OOMA) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Ooma had a gross margin of 61.34% for the quarter that ended in Jan. 2025 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Ooma Gross Margin % Related Terms
Thank you for viewing the detailed overview of Ooma's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Ooma Inc is a communications services company. It is a smart software-as-a-service ("SaaS") and unified communications platform that deliver voice and collaboration features including messaging, intelligent virtual attendants and video conferencing, and residential phone service provides PureVoice high-definition voice quality, advanced functionality and integration with mobile devices. Its services rely upon the following main elements: multi-tenant cloud service, on-premise devices, desktop and mobile applications, and calling platforms. Ooma generates revenues from the sale of subscriptions and other services.
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