Our addressable market is large and growing rapidly: We focus on small to medium-sized businesses, as well as larger organizations that require advanced communications solutions for offices of any size. Multi-person businesses with fewer than 500 employees number approximately 6.0 million in the U.S. and 1.3 million in Canada (Sources: Small Business Administration, 2020 and Statista, 2021 for Canada). We believe this is an underpenetrated segment of the $21+ billion cloud communications industry, which is growing approximately 8% annually (IDC Worldwide hosted voice/UC public cloud (UCaaS) market forecast, May 2023).
We lead with innovation: Ooma began by focusing on perfecting VoIP, with patented techniques for ensuring voice quality and service that is among the industry’s best. We continue to enrich the scope of our service by adding advanced communications and collaboration features to provide unified communications as a service (UCaaS) that fulfills customer needs while being extraordinarily easy to use.
Our gross margins reflect our strengths: We have a proprietary technology platform that we believe provides significant cost advantages. With more than 2 million users, our operational scale further contributes to our ability to deliver gross margin that is among the best in our industry. We offer our customers a great value by providing them exceptional features and services at a very competitive price. Their satisfaction contributes to our low customer churn and low customer service costs.