Smart Connected Services

Investor Presentation

A s o f S e p t e m b e r 2 , 2 0 1 5

2CONFIDENTIAL AND PROPRIETARY |

Safe Harbor Statement

This presentation contains forward-looking statements. In particular, statements regarding future economic performance, finances, and expectations and objectives of management constitute forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical facts and generally contain words such as "believes," "expects," "may," "will," "should," "seeks," "approximately," "intends," "plans," "estimates," "anticipates," and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters. Although the forward-looking statements contained in this presentation are based upon information available at the time the statements are made and reflect management's good faith beliefs, forward-looking statements inherently involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to differ materially from anticipated future results. Important factors that could cause actual results to differ materially from expectations include, among others: inability to attract new customers on a cost-effective basis; our inability to retain customers; intense competition; our reliance on retailers and reseller partnerships to sell our products; our reliance on vendors to manufacture the on-premise appliances and end-point devices we sell; our reliance on third parties for our network connectivity and co-location facilities; our reliance on third parties for some of our software development, quality assurance and operations; our reliance on third parties to provide the majority of our customer service and support representatives; our limited operating history; and interruptions to our service. You should not place undue reliance on these forward-looking statements, which speak only as of the date hereof. We do not undertake to update or revise any forward-looking statements after they are made, whether as a result of new information, future events, or otherwise, except as required by applicable law.

The forward-looking statements contained in this presentation are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission, including the risk factors contained in our form 10-Q filed with the SEC on September 11, 2015. The forward-looking statements in this presentation are based on information available to Ooma as of the date hereof, and Ooma disclaims any obligation to update any forward-looking statements, except as required by law.

3CONFIDENTIAL AND PROPRIETARY |

Providing Connected Servicesto Small Business,

Home and Mobile Users

Communications

Business Productivity

Home Automation

Networking Infrastructure

On a Unique Hybrid SaaS Platform

(Cloud and On-Premise)

Portal

Network

AppAppliance

4CONFIDENTIAL AND PROPRIETARY |

Business Highlights

Massive Connected Services Opportunity

Unique Hybrid SaaS Platform Solution

Disruptive Cloud Communications and Other Connected Services

Predictable SaaS Subscription

Business/Financial Model

Efficient Integrated Go to Market Strategy

$39M$54M

$72M

FY13 FY14 FY15

Revenue

Ends January 31st

1: Annual Net Dollar Subscription Retention Rate is the product of our core user annual retention rate and year-over-year change in subscription revenue per core user2: Core users include home user accounts, office user extensions, and standalone Business Promoter accounts

FY 2Q14 FY 2Q15

556K

717K

Core Users

5CONFIDENTIAL AND PROPRIETARY |

Mega Trends Drive Our Opportunity

“Traditional methods for voice are ripe for replacement.” - Macquarie

Cloud Communications

“SMBs are expanding the SaaS market opportunity for vendors.” - JPMorgan

SMB SaaS

“The Internet of Things represents huge potential … need for more … systems to deploy, manage

and make use of … devices.” - IDC

IoT

6CONFIDENTIAL AND PROPRIETARY |

Massive Market Opportunity

2.1B Users Worldwide

Home

Business31.5M Businessesin North America

(Up to 20 Employees)

82.8M Home Lines in North

America

Mobile

$15

$14

$6

$35B1

Communications

Source: U.S. Census, 2012 Non-employer Statistics; 2011 County Business Patterns Industry Canada, Key Small Business Statistics; Statistics Canada – Self Employment Historical Summary; IDC, U.S. Consumer Landline Voice Services 2014-2018 Forecast; Infonetics Research, VoLTE and OTT Mobile VoIP Services and Subscribers 6/23/14

Productivity

Automation

Infrastructure

AdditionalConnected

ServicesOpportunity

1: At Ooma’s Pricing

7CONFIDENTIAL AND PROPRIETARY |

Unique Hybrid SaaS Connected Services Platform

Portal

Network

AppAppliance

Multi-Tenant SaaS Platform

Linux Based Appliance, Router, USB,DECT Radio

Mobile Alerts and Control

Connected to Many Endpoint Devices

User Configurable Services

Integrated, Managed Platform Enabling Both

Communications and Other Connected Services

8CONFIDENTIAL AND PROPRIETARY |

Disruptive CloudCommunications Opportunity

Source: FCC Wireline Retail Local Telephone Service Connections 12/31/2013, CRTC Communications Monitoring Report 2014, IDC; U.S. Consumer Landline

Voice Services 2014-2018 Forecast

64M Business Lines in

North America

83%Traditional

17%Internet/

Cloud

Business

29%CAGR1

50%Traditional

50%Internet/

Cloud

83M Home Lines in

North America

Home

11%CAGR1

We Target Communications to Drive

Adoption of the Ooma Platform

1: 2010-2013

9CONFIDENTIAL AND PROPRIETARY |

Ooma Services for Business and Home

*Coming in 2015

Home services ranking by the readers of a leading consumer research publication.

Ranked #1 for 2 years in a row

• Virtual Receptionist

• Music-on-Hold

• Voicemail

• eFax

• Extension Dialing

• Conferencing

• Call Forwarding

• Ring Groups

Business Services

And More!

Analog Phones IP Phones* Mobile Phones

OomaOffice

Ranked #1 for 5 years in a row

OomaTelo

HomeServices

• Unlimited US Calling

• Voicemail

• Multi-ring

• Ring Groups

• Blacklisting

• 911 Alerts

• Instant 2nd Line

• Google Voice Extensions

And More!

Wireless/ Bluetooth

DECT Headset

Consumer Research Leading Publication

10CONFIDENTIAL AND PROPRIETARY |

Leading Mobile Solutions

Ooma(Home)

Ooma(Business)

• Full Featured, Integrated User

Experience

• Pure Voice HD Call Quality

Mobile for Office/Home

Talkatone

By Ooma

• Powerful Advertising Based

Business Model

• Extends Ooma’s Customer Reach

Mobile for Everyone

• Free Calling and Texting

• >1.5M Users and Growing Quickly

11CONFIDENTIAL AND PROPRIETARY |

PureVoiceTM Voice Quality

Ooma

PureVoiceTM

• Full Router/QoS

• Advanced Codec

• Adaptive Redundancy

• HD Voice

• Encryption

“Clear and Intelligible Despite Internet

Congestion”

Adaptive Redundancy

Up to 4x Deep

• Smaller

Packet Size

• 10x More

Complex

Codec

40%

10%

3-5%

% Packet Loss

“Unintelligible”

“Artifacts inVoice”

Competitors

✗

✓

Overcoming Internet Congestion

12CONFIDENTIAL AND PROPRIETARY |

Compelling Customer Value

1: For 5 extensions, minimum 3 lines, 1 phone number

2: After one-time purchase and monthly taxes/fees

Starts as Low as $19.98/mo2

Sample Savings vs. $200 Typical Monthly Bill1

Business

$3,900

$2,483

$1,066

3 Years

2 Years

1 Year

$1,152

$725

$298

3 Years

2 Years

1 Year

Free for Basic Service2

Sample Savings vs. $40 Typical Monthly Bill

Home

>$750m Saved for Ooma Customers!

13CONFIDENTIAL AND PROPRIETARY |

Why We Win

Powerful Hybrid SaaS

Platform

IntegratedMobile Solutions

Unique New Services

Breakthrough Voice Quality

Compelling Customer Value

OomaTraditional Providers

CloudProviders

14CONFIDENTIAL AND PROPRIETARY |

Communications

Business Marketing & Promotion

CustomerRelationship

Management

ContactCenter

…and more

Connected Services - Productivity

• Driving New Customer Calls to

Small Businesses

• Core Technology Increases Web

Presence So Local Businesses Get

Noticed

• Pay per Lead Model

• Integrated in Ooma Office and

also Serving Standalone Businesses

HomeAutomation

NetworkingInfrastructure

Business Promoter: Lead Generation Services for Small Businesses

15CONFIDENTIAL AND PROPRIETARY |

Communications

NetworkingInfrastructure

Connected Services - Automation

BusinessProductivity

Security & Monitoring

HomeControl

Connected Home / IoT

…and more Connected Home/IoT

Partnerships

Nest

Today

Home Monitoring

Future

Door

Sensor

Water

Sensor

Motion

Sensor

Window

Sensor

Next

…

…

(More)

(More)

16CONFIDENTIAL AND PROPRIETARY |

Driving Adoption and Monetization of the Platform

More IoT Partnerships in Development

Strengthen Ooma Brand

Awareness

Differentiate with Unique

Features

Increase Ooma Retail

Presence and Customer

Adoption

Monetize via Increased

Premier Take Rate

Security and Peace of Mind

Never Before Possible

+

17CONFIDENTIAL AND PROPRIETARY |

Integrated Growth Strategy

TV / Traditional Media

• Broad Reach

• Low Cost

• Builds Brand Image

Efficient Marketing

Word of Mouth

85% Net PromoterScore1

Online

Targeted Campaigns

• Directly

• Through Retailers

1: PC Magazine, 2014, for Ooma’s Small Business Solution

Cost-Effective Sales

Leading Retailers

Direct Sales

Resellers

Digital Agencies

18CONFIDENTIAL AND PROPRIETARY |

Business Highlights

Massive Connected Services Opportunity

Unique Hybrid SaaS Platform Solution

Disruptive Cloud Communications and Other Connected Services

Predictable SaaS Subscription Business/Financial Model

Efficient Integrated Go to Market Strategy

Financial Overview

20CONFIDENTIAL AND PROPRIETARY |

$9.1$12.7

$16.7

$21.1

Fiscal 2013 Fiscal 2014 Fiscal 2015 Q2'13 Q2'14 Q2'15 Q2'16

Strong Revenue Growth

Revenue$ Millions

$39.2

$53.7

$72.2

Note: Fiscal Year Ends January 31

21CONFIDENTIAL AND PROPRIETARY |

Expanding Subscription & Services Revenue

Subscription/Services

Product/Other

Total Revenue$ Millions

FY13 FY14 FY15 Q2'15 Q2'16

$72

$39

$54

61%

66%

74%

39% 34% 26%

$17$21

24%

76%

17%

83%

37% Year over Year Growth in

Subscription and

Services Revenue

22CONFIDENTIAL AND PROPRIETARY |

Increasing Gross Margin

35%

41%

49%51%

54%

42%

55%

66% 66%64%

FY13 FY14 FY15 Q2'15 Q2'16

Gross Margin% Revenue

• Scale Efficiencies

• Upselling Premium

Services

• Introduction of New

Services

Growth Drivers

Subscription/Services

Total

Long-Term Target

65%

70%

75%

80%

Low High

+24 pts

23CONFIDENTIAL AND PROPRIETARY |

Strong Growth

Q2'15 Q2'16

556,000

717,000

Core Users

Note: Core users include home user accounts, office user extensions, and standalone Business Promoter accounts

40%

60%

44%

56%

Premium Users

Basic Users

$7.56 $7.78

Q2'15 Q2'16

Subscription/

Services Revenue$ Per Core User/Month

Growth Drivers

• Continued Growth in

Core Users

• Growth of SMB

• Upselling Premium

Services

• International

Expansion

24CONFIDENTIAL AND PROPRIETARY |

Long-Term Target Model (Non-GAAP)

% REVENUE FY13 FY14 FY15TARGETRANGE

Subscription/Services Gross Margin

42% 55% 66% 75% - 80%

Total Gross Margin

35% 41% 49% 65% - 70%

S&M 19% 25% 31% 20% - 25%

R&D 18% 15% 17% 12% - 15%

G&A 6% 4% 8% 6% - 8%

Adjusted EBITDA (6%) (1%) (5%) 20% - 25%

Note: Non-GAAP Excludes Amortization of Intangibles and FASB Topic 718 Charges Related to Stock Options and Preferred Stock Warrants

Thank you

26CONFIDENTIAL AND PROPRIETARY |

GAAP to Non-GAAP Reconciliation

Annually Quarterly

$ Thousands FY2013 FY2014 FY2015 Q2-15 Q2-16

GAAP Gross Profit

Add: Adjustments

Non-GAAP Gross Profit

$ 13,744

11

$ 13,755

$ 22,198

7

$ 22,205

$ 35,447

158

$ 35,635

$ 8,526

29

$ 8,555

$ 11,243

106

$ 11,349

GAAP Sales and Marketing

Less: Adjustments

Non-GAAP Sales and Marketing

$ 7,471

(1)

$ 7,470

$ 13,192

(6)

$ 13,186

$ 22,276

(41)

$ 22,235

$ 5,830

(7)

$ 5,823

$ 6,813

(73)

$ 6,740

GAAP Research and Development

Less: Adjustments

Non-GAAP Research and Development

$ 7,023

(50)

$ 6,973

$ 7,888

(31)

$ 7,857

$ 12,290

(174)

$ 12,116

$ 2,930

(24)

$ 2,906

$ 4,284

(240)

$ 4,044

GAAP General and Administrative

Less: Adjustments

Non-GAAP General and Administrative

$ 2,508

(255)

$ 2,253

$ 2,573

(179)

$ 2,394

$ 6,650

(1,015)

$ 5,635

$ 1,288

(172)

$ 1,116

$ 3,206

(460)

$ 2,746

GAAP Operating (loss)

Add: Adjustments

Non-GAAP Operating Loss

$ (3,258)

317

$ (2,941)

$ (1,455)

223

$ (1,232)

$ (5,739)

1,388

$ (4,351)

$ (1,522)

232

$ (1,290)

$ (3,060)

879

$ (2,181)