What happened Shares of Ooma (NYSE: OOMA), the voice-over-the-internet phone service provider, are racing out of the gate this morning after the company reported a surprise "profit" in last night's fiscal Q3 2020 earnings report. Heading into earnings, analysts had forecast that Ooma would lose $0.05.05 per share pro forma on sales of .4 million. Ooma eked out a win on the sales front, reporting .6 million. Even better, the company said it earned a $0.01.01 per share non-GAAP (adjusted) profit in Q3. Ooma stock is up 13.7% as of 10:25 a.m. EST. Image source: Getty Images. So what Total revenue surged 21% year over year, led by business service revenue growth of 67%. That's the good news. The bad news is that while Ooma says it earned a "profit" and improved over last year's pro forma loss, the company's GAAP financials show that when calculated according to generally accepted accounting principles, net income for the quarter was actually a loss of $0.32.32 per share -- nearly twice as bad as the $0.18.18 per share that Ooma lost in last year's Q3. Now what Investors don't seem to care much about GAAP today, however, and the reason is guidance. Looking ahead, Ooma noted that Q4 2020 revenues should be in the neighborhood of million -- million more than Wall Street was expecting. The company is also predicting a repeat of its non-GAAP-profitable third quarter, saying pro forma profits could range from breakeven to $0.02.02 per share in this new quarter, much better than the $0.07-per-share.07-PER-SHARE loss that Wall Street was looking for. No wonder Ooma investors are so enthusiastic today. 10 stocks we like better than OomaWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Ooma wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of June 1, 2019 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source