Smart Connected Services

M a r c h 7 , 2 0 1 7

2CONFIDENTIAL AND PROPRIETARY |

Safe Harbor StatementThis 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 Quarterly report on form 10-Q for the quarter ended October 31, 2016 filed with the SEC on December 9, 2016. 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.

In addition to the financials presented in accordance with U.S. generally accepted accounting principles (GAAP), this presentation includes certain non-GAAP financial measures. The non-GAAP financial measures have limitations as analytical tolls and you should not consider them in isolation or as substitute for the most directly comparable financial measures prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. First, the non-GAAP financial measures excluded the effect of stock-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense for our business and an important part of our compensation strategy. Second, other companies, including companies in our industry, may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. We urge you to review the reconciliation of our non-GAAP financial measures to the most directly comparable GAAP financial measures set forth in the Appendix, and not rely on any single financial measure to evaluate our business.

We have filed a Registration Statement on Form S-3 (including a base prospectus) with the SEC for the offering to which this communication relates. This presentation has been prepared solely for use by prospective investors in connection with a proposed public offering of our common stock and contains a summary of selected information to be contained in a prospectus supplement to be filed with the SEC, and the accompanying prospectus. Before you invest, you should read the prospectus supplement, the accompanying prospectus and the information incorporated therein by reference, including the Risk Factors set forth in those materials. When available, copies of these documents may be obtained for free by visiting EDGAR on the SEC website at http://www.sec.gov. Alternatively, copies may be obtained from Credit Suisse Securities (USA) LLC, Attn: Prospectus Department, One Madison Avenue, New York, NY 10010, or by telephone at 1-800-211-1037, or by email at newyork.prospectus@credit-suisse.com; or JMP Securities LLC, 600 Montgomery Street, Suite 1100, San Francisco, CA 94111, or by telephone at 1-415-835-8985, or by email at syndicate@jmpsecurities.com.

This presentation shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale on these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction

3CONFIDENTIAL AND PROPRIETARY |

Investment 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

$72$89

$105

$24 $28

FY15 FY16 FY17 Q4 '16 Q4 '17

Revenue(in millions)

Annual

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 and office user extensions.

800

933

Core Users(in thousands)

4Q’16 4Q’17

Quarterly

4CONFIDENTIAL 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

5CONFIDENTIAL AND PROPRIETARY |

Massive Market Opportunity

2.1B Users Worldwide

Home

Business32.8M Businessesin North America

(Up to 20 Employees)

77.9M Home Lines in North

America

Mobile

$19

$13

$6

$38B1

Communications

Source: U.S. Census, 2014 Non-employer Statistics; U.S. Census, 2014 County Business Patterns; 2016 County Business Patterns Industry Canada, Key Small Business Statistics; Statistics Canada – Self Employment Historical Summary 2016; Infonetics Research, VoLTE and OTT Mobile VoIP Services and Subscribers 6/23/14

Productivity

Automation

Infrastructure

AdditionalConnected

ServicesOpportunity

1: At Ooma’s Pricing

6CONFIDENTIAL 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

7CONFIDENTIAL AND PROPRIETARY |

Disruptive CloudCommunications Opportunity

Source: FCC Voice Telephone Services: Status as of December 31, 2015, CRTC Communications Monitoring Report 2016, IDC; U.S. Consumer Landline Voice

Services 2014-2018 Forecast

61M Business Lines in

North America

67%Traditional

33%Internet/

Cloud

Business

33%CAGR1

43%Traditional

57%Internet/

Cloud

78M Home Lines in

North America

Home

4%CAGR1

We Target Communications to Drive

Adoption of the Ooma Platform

1: 2012 - 2015

8CONFIDENTIAL AND PROPRIETARY |

Ooma Services for Business and Home

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

Ranked #1 for 3 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

9CONFIDENTIAL AND PROPRIETARY |

Leading Mobile Solutions

Ooma(Home)

Ooma(Business)

• Full Featured, Integrated User

Experience

• Pure Voice HD Call Quality

Mobile for Office/HomeTalkatone

• Powerful Advertising Based

Business Model

• Extends Ooma’s Customer Reach

Mobile for Everyone

10CONFIDENTIAL 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

11CONFIDENTIAL AND PROPRIETARY |

Compelling Customer Value

1: For 3 user extensions or 3 lines

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

Starts as Low as $19.95/mo2

Sample Savings vs. $200 Typical Monthly Bill1

Business

$4,438

$2,892

$1,346

3 Years

2 Years

1 Year

$1,205

$771

$336

3 Years

2 Years

1 Year

Free for Basic Service2

Sample Savings vs. $40 Typical Monthly Bill

Home

>$1 Billion Saved for Ooma Customers!

12CONFIDENTIAL AND PROPRIETARY |

Why We Win

Powerful Hybrid SaaS

Platform

IntegratedMobile Solutions

Unique New Services

Breakthrough Voice Quality

Compelling Customer Value

OomaTraditional Providers

CloudProviders

13CONFIDENTIAL AND PROPRIETARY |

Communications

Business Marketing & Promotion

CustomerRelationship

Management

ContactCenter

…and more

Connected Services - Infrastructure

• Protect all home devices from

internet threats

• Filter unwanted websites

• Threat database updated up to

100,000 times a day in real time

from the cloud

• Monthly subscription Model

HomeAutomation

NetworkingInfrastructure

Ooma Internet SecurityPowered by ZScaler

14CONFIDENTIAL 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

New

…(More)

Amazon Echo Philips Hue Internet Security

15CONFIDENTIAL 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

+

16CONFIDENTIAL AND PROPRIETARY |

Integrated Growth Strategy

TV / Traditional Media

• Broad Reach

• Low Cost

• Builds Brand Image

Efficient Marketing

Word of Mouth

68% Net PromoterScore1

Online

Targeted Campaigns

• Directly

• Through Retailers

1: PC Magazine, 2016, for Ooma’s Small Business Solution

Cost-Effective Sales

Leading Retailers

Direct Sales

Resellers

Digital Agencies

OEM

17CONFIDENTIAL AND PROPRIETARY |

Investment 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

19CONFIDENTIAL AND PROPRIETARY |

$72.2

$88.8

$104.5

$20.9$24.3

$27.6

FY 2015 FY 2016 FY 2017 Q4 '15 Q4 '16 Q4 '17

Note: $ Millions, Fiscal Year Ends January 31

Annual Revenue Quarterly Revenue

Strong Revenue Growth

($ in millions)

Ooma Office revenue grew ~58% on a year-over-year basis.

20CONFIDENTIAL AND PROPRIETARY |

Subscription/Services

Product/Other

FY15 FY16 FY17 Q4'16 Q4'17

Annual Quarterly

Expanding Subscription &Services Revenue

$104.5

$88.8

$72.2

$24.3 $27.6

75% 82% 87%

85% 87%

25% 18% 13%15% 13%

Note: $ Millions, Fiscal Year Ends January 31

21CONFIDENTIAL AND PROPRIETARY |

Q4 '15 Q4 '16 Q4 '17

800,000

933,000

Core Users

46%

58%

48%

52%

46%

54%

Premium Users

Basic Users

Average revenue per core user around $8.00 per month.

Q4 '15 Q4 '16 Q4 '17

368,000

448,000

272,000

Strong Customer Growth

Premium Users

54%

42%

678,000

22CONFIDENTIAL AND PROPRIETARY |

Increasing Gross Margin

49%54%

58%55%

58%

66% 66%69%

67%70%

FY15 FY16 FY17 Q4 '16 Q4 '17

Gross Margin% Revenue

• Mix of SMB increases

• Upselling Premium

Services

• Introduction of New

Services

• Scale Efficiencies

Growth Drivers

Subscription/Services

Total

Long-Term Target

65%

70%

75%

80%

Low High

23CONFIDENTIAL AND PROPRIETARY |

Improving Adjusted EBITDAA

dju

ste

d E

BIT

DA

(in

$'0

00)

($2,538)

($1,885) ($1,827)

($1,549)

($1,251)($1,124)

($542)

$81 $171

Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17

24CONFIDENTIAL AND PROPRIETARY |

Long-Term Target Model (Non-GAAP)

% REVENUE FY16 FY17 4Q’16 4Q’17TARGETRANGE

Subscription/Services

Gross Margin66% 69% 67% 70% 75% - 80%

Total

Gross Margin54% 58% 55% 58% 65% - 70%

S&M 31% 31% 33% 30% 20% - 25%

R&D 19% 20% 18% 20% 12% - 15%

G&A 12% 10% 11% 9% 6% - 8%

Adjusted EBITDA (7%) (1%) (5%) 1% 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

27CONFIDENTIAL AND PROPRIETARY |

Consolidated Balance Sheet

$ T housands Q1-17 Q2-17 Q3-17 Q4-17 FY2017

Assets

Current assets :

Cash and cash equivalents $27,413 $8,982 $6,712 $6,308 $3,990

S hort-term investments 27,991 44,695 47,126 47,054 49,211

Accounts receivable, net 5,609 5,022 4,478 4,866 4,714

Inventories 5,011 3,909 4,564 4,592 5,830

Deferred inventory costs 2,013 1,841 2,037 1,443 1,620

Prepaid expenses and other current assets 1,318 1,513 1,637 2,033 1,891

T otal current assets 69,355 65,962 66,554 66,296 67,256

Property and equipment, net 4,291 4,272 4,478 4,212 4,176

Intangible assets , net 885 787 703 620 537

Goodwill 1,117 1,117 1,117 1,117 1,117

Other assets 888 830 307 303 252

T otal assets $76,536 $72,968 $73,159 $72,548 $73,338

L iabilities and stockholders ' equity

Current liabilities :

Accounts payable $4,786 $4,160 $5,493 $4,778 $5,857

Accrued expenses 13,010 11,979 10,805 11,972 11,579

S hort-term debt and capital lease 632 - - - -

Convertible preferred s tock warrant liability - - - - -

Deferred revenue 15,036 14,351 15,134 14,899 15,521

T otal current liabilities 33,464 30,490 31,432 31,649 32,957

Other liabilities 182 543 225 543 561

T otal liabilities 33,646 31,033 31,657 32,192 33,518

Convertible Preferred S tock - - - - -

S tockholders ' equity:

Common s tock 2 2 2 2 2

Additional paid-in capital 107,679 110,972 113,562 115,314 117,639

Accumulated other comprehens ive (loss ) income 17 30 42 18 (11)

Accumulated deficit (64,808) (68,764) (72,104) (74,978) (77,810)

T otal s tockholders ' equity 42,890 42,240 41,502 40,356 39,820T otal liabilities and stockholders ' equity $76,536 $73,273 $73,159 $72,548 $73,338