Ooma, Inc. OOMA

Competitive advantage analysis · technology

Software & SaaS Specialized
Overall moat score
57/100
Moderate

About Ooma, Inc.

Ooma, Inc. provides communications services and related technologies for businesses and consumers in the United States and Canada. The company's products and services include Ooma Office, a cloud-based multi-user communications system for small and medium-sized businesses; Ooma Connect, which delivers fixed wireless internet connectivity; and Ooma Enterprise, a unified-communications-as-a-service (UCaaS) solution. It also provides Ooma AirDial, a plain old telephone … Full OOMA analysis →

Competitive advantage assessment

Key strengths

  • Consistent Subscription Growth Revenue consistency is strong (score 0.96), pointing to a sticky customer base.
  • Margins Hold Through Cycles Margin durability is strong (score 0.94), pointing to resilient pricing power.

Key risks

  • Liquidity Cushion Looks Thin Liquidity position is weak (score 0.26), leaving less room for error.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
68

Where OOMA ranks in Software - Application

Ooma, Inc. ranks #92 of 264 scored companies in Software - Application by moat score — the top 35%. The widest moat in the group is Dave Inc. (DAVE) at 80/100.

Moat scores for companies ranked near OOMA in Software - Application
# Company Moat score Rating
88 Asure Software Inc ASUR 58/100 Moderate
89 ePlus inc. PLUS 58/100 Moderate
90 BILL Holdings, Inc. BILL 57/100 Moderate
91 Braze, Inc. BRZE 57/100 Moderate
92 Ooma, Inc. OOMA 57/100 Moderate
93 Lyft, Inc. LYFT 57/100 Moderate
94 Immersion Corporation IMMR 57/100 Moderate
95 Grab Holdings Limited GRAB 56/100 Moderate
96 Grab Holdings Limited Warrant GRABW 56/100 Moderate

See every Software & SaaS company ranked by moat score →

How OOMA scores on the Software & SaaS Specialized defenses

Pricing Power

Score 68 · 20% of the moat score

In software, pricing power is visible in gross margin: a vendor that has to discount in order to renew gives it up first.

Recurring Revenue Stickiness

Score 69 · 18% of the moat score

Recurring revenue is the model's central claim, and it is a moat only when customers renew and expand without being re-sold each year.

Innovation Engine

Score 44 · 16% of the moat score

Software is competed away rather than depreciated, so a vendor that stops investing loses its category.

Cash Scalability

Score 51 · 18% of the moat score

The test of a software business is whether growth eventually stops consuming cash.

Capital Efficiency

Score 65 · 16% of the moat score

A software platform employs very little capital, so a genuine franchise should produce high returns on it without leverage.

Balance Sheet Resilience

Score 35 · 12% of the moat score

Software companies fund years of customer acquisition before those customers pay back, which makes access to capital a strategic variable rather than a treasury detail.

How each Software & SaaS Specialized defense is measured, in full →

Understanding OOMA's moat

What is Ooma, Inc.'s moat score?

Ooma, Inc. (OOMA) scores 57 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #92 of 264 scored companies in Software - Application, the top 35%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 263 companies in Software - Application. Its strongest defense is Recurring Revenue Stickiness (69/100) and its weakest is Balance Sheet Resilience (35/100).

How does Ooma, Inc. compare with other Software - Application companies?

Ooma, Inc. ranks #92 of 264 scored companies in Software - Application by moat score. The widest moat in Software - Application is Dave Inc. (DAVE) at 80/100. The companies ranked closest are Braze, Inc. (BRZE) at 57 just above it and Lyft, Inc. (LYFT) at 57 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Software & SaaS Specialized in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 263 companies in Software - Application. The defenses are then weighted to produce the overall score out of 100.

Why is Ooma, Inc. scored with the Software & SaaS Specialized template?

Software costs almost nothing to reproduce, so the entire economic question is whether customers keep paying. Revenue is a subscription rather than a sale, the cost of winning a customer is paid years before that customer becomes profitable, and margins arrive only if renewals hold. The Software & SaaS template scores retention, reinvestment, and the point at which growth turns into cash.

Which competitive defenses are measured for Ooma, Inc.?

The Software & SaaS Specialized template measures 6 defenses, and OOMA scores: Pricing Power (68), Recurring Revenue Stickiness (69), Innovation Engine (44), Cash Scalability (51), Capital Efficiency (65), Balance Sheet Resilience (35). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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