Who Owns Ooma Company?

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Who Owns Ooma?

Understanding Ooma's ownership is key to grasping its strategic direction. Since its 2015 IPO, ownership has diversified significantly.

Ooma, Inc., a telecommunications firm founded in 2003, offers cloud-based communication solutions. Its evolution from a private venture to a publicly traded entity has reshaped its stakeholder landscape.

As of January 31, 2025, Ooma reported total revenues of $256.9 million, serving over 1.2 million users. Its market capitalization stood at approximately $322 million on August 18, 2025, with 27.6 million shares outstanding, indicating a mix of institutional, insider, and retail ownership.

The company's journey began with founders Andrew Frame, Michael Cerda, and Dennis Peng, who envisioned affordable communication services. Their initial vision has since expanded through various investment rounds and its public offering, impacting its current ownership structure.

Ooma's product suite includes advanced VoIP services and smart security solutions, contributing to its market presence. A deeper look into its market positioning can be found in the Ooma PESTEL Analysis.

Ooma, Inc. was established on November 19, 2003, by Andrew Frame, Michael Cerda, and Dennis Peng. Andrew Frame, a former executive at Cisco Systems, and Michael Cerda, who served as the company's initial chief executive officer, were the driving forces behind its inception. The company's early ambition was to provide innovative communication solutions, starting with the concept of free long-distance calling.

Founding Vision

Ooma was founded with the goal of offering groundbreaking communication services. The initial focus was on providing free long-distance calling.

Founders

The company was co-founded by Andrew Frame, Michael Cerda, and Dennis Peng. Andrew Frame brought experience from Cisco Systems.

Early Funding

Initial venture funding of $2.5 million was secured in 2005. This was followed by a $16 million Series A round led by DAG Ventures.

Key Investors

Notable early investors included Sean Parker. The company continued to attract significant investment through multiple funding rounds.

Capital Raised

By January 2012, Ooma had raised a total of $83.3 million. Investors included Draper Fisher Jurvetson and Founder's Fund.

Leadership Transition

Andrew Frame transitioned from his CEO role in 2009. Eric Stang then assumed the position of CEO.

The founding team's vision for Ooma was to disrupt the telecommunications industry by offering innovative and cost-effective communication solutions. While the specific equity distribution among the founders at the company's inception is not publicly disclosed, the significant influx of venture capital funding throughout the early years indicates a progressive dilution of initial ownership stakes as the company expanded and sought external financial backing. This pattern is common in venture-backed startups aiming for rapid growth. Understanding the Competitors Landscape of Ooma provides context for the strategic decisions made during these formative funding stages.

Early Funding Rounds

Ooma's journey was marked by several significant funding rounds that fueled its growth and development.

• 2005: $2.5 million in angel funding.
• 2005: $16 million Series A led by DAG Ventures.
• 2007: $12 million Series B round.
• September 2008: $16 million Series C round.
• June 2009: $18.3 million Series D round led by Worldview Technology Partners.
• By January 2012: Total capital raised reached $83.3 million.

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Ooma's ownership structure underwent a significant transformation with its Initial Public Offering (IPO) in July 2015. This transition from a privately held company to a publicly traded entity on the New York Stock Exchange marked a new era for Ooma ownership and its access to capital markets.

The ownership landscape of Ooma is predominantly shaped by institutional investors, who collectively hold a substantial majority of the company's shares. These large investment firms, such as Blackrock Inc. and Trigran Investments Inc., exert considerable influence over Ooma's strategic direction and corporate governance. Individual insiders, particularly CEO Eric B. Stang, also maintain significant stakes, underscoring the concentrated nature of Ooma's control. This ownership structure highlights the importance of understanding who owns Ooma and their impact on its operations and future growth, including its ability to pursue strategic acquisitions like the one of 2600Hz in October 2023, which contributes to its evolving Revenue Streams & Business Model of Ooma.

Ooma's Ownership Snapshot

Ooma transitioned to a public company in July 2015, with its shares listed on the NYSE. The majority of Ooma's stock is held by institutional investors, with significant individual ownership by key executives.

• Ooma became a publicly traded company in July 2015.
• Institutional investors hold between 60% and 69.73% of Ooma's shares.
• Blackrock Inc. is a major institutional shareholder with 13.32% ownership.
• Eric B. Stang, the CEO, is the largest individual insider shareholder.
• The company's market capitalization was approximately $322 million as of August 18, 2025.

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Ooma, Inc.'s governance is steered by its Board of Directors, a group responsible for the company's strategic oversight and safeguarding shareholder interests. The board is composed of both executive and independent directors, ensuring a balance of internal expertise and external perspective.

The voting power within Ooma, Inc. is structured around a one-share-one-vote principle, meaning each share of common stock grants its holder a single vote on matters brought before stockholders. There is no provision for cumulative voting in director elections. While the company's bylaws can be altered by a simple majority vote, significant corporate actions necessitate a higher threshold, requiring at least 66 2/3% of the total voting power of all outstanding voting securities. The Board of Directors retains the authority to define the terms of any preferred stock, including its dividend, conversion, and voting rights, though currently, no preferred stock is issued.

Ooma's Shareholder Influence

Eric B. Stang, as the Chief Executive Officer and the largest individual shareholder with 17.63% ownership, wields considerable voting power. This substantial stake, alongside institutional ownership, tends to align management and major shareholders' interests. The company's structure, with a majority of independent directors, aims to provide robust oversight and diverse viewpoints in decision-making.

• Eric B. Stang is the largest individual shareholder.
• The company follows a one-share-one-vote system.
• No cumulative voting is in place for director elections.
• Significant corporate actions require a 66 2/3% supermajority vote.
• Independent directors form a majority of the board.

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Over the last three to five years, Ooma, Inc. has seen shifts in its ownership landscape, marked by strategic acquisitions and evolving investor influence. Institutional investors now hold a significant majority of the company's shares, indicating a trend towards stability and long-term growth. This period also saw key executive transactions, with the CEO and CFO selling shares in June 2025.

Ooma's strategic expansion efforts have included key acquisitions, such as OnSIP in July 2022 and 2600Hz in October 2023, broadening its business communication solutions. The company also introduced innovative products like Ooma AirDial, designed to replace traditional POTS lines, which was recognized by Frost & Sullivan as the 2025 Competitive Strategy Leader in the North American POTS Replacement Industry. Further enhancements to Ooma AirDial, including new remote management features, were announced in June 2025, reinforcing its market position.

Recent Acquisitions and Product Innovation

Ooma acquired OnSIP in July 2022 and 2600Hz in October 2023, expanding its business offerings. The Ooma AirDial, a POTS replacement solution, received industry recognition in 2025.

Financial Performance and Outlook

Revenue grew to $256.9 million in fiscal year 2025, with Q1 FY2026 revenue at $65 million. Analysts project profitability for Ooma in 2025, with a return to profit expected in 2026.

Ownership Trends and Insider Activity

Institutional investors now hold between 60% and nearly 70% of Ooma's shares. Recent insider sales by the CEO and CFO in June 2025 are noted, though analysts maintain a 'Buy' rating.

Analyst Sentiment and Future Growth

Analysts have a 12-month price target of $17.63 for Ooma stock, suggesting significant upside potential. The company's strategy focuses on business services and international expansion, aligning with its Target Market of Ooma.

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