OOMA INC Earnings Per Share Disclosure
Note 14: Net Loss Per Share
Basic and diluted net loss per share of common stock is calculated by dividing the net loss allocable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net loss per share of common stock is the same as basic net loss per share because the effects of potentially dilutive securities are antidilutive because the Company reported net losses for all periods presented.
The following table sets forth the computation of basic and diluted net loss per share (in thousands, except share and per share data):
|
Fiscal Year Ended January 31, |
|
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|
2025 |
|
|
2024 |
|
|
2023 |
|
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Numerator |
|
|
|
|
|
|
|
|
|||
Net loss |
$ |
(6,901 |
) |
|
$ |
(835 |
) |
|
$ |
(3,655 |
) |
Denominator |
|
|
|
|
|
|
|
|
|||
Weighted-average common shares |
|
26,685,598 |
|
|
|
25,573,288 |
|
|
|
24,506,525 |
|
Basic and diluted net loss per share |
$ |
(0.26 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.15 |
) |
Potentially dilutive securities of approximately 0.8 million, 0.6 million and 0.7 million in fiscal 2025, 2024 and 2023, respectively, were excluded from the computation of diluted net loss per share as their inclusion would have been anti-dilutive. These shares included the Company’s unvested RSUs, outstanding stock options and shares to be purchased under the ESPP.
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.