NEW YORK (TheStreet) -- Shares of newly minted public stock Ooma (OOMA) were down more than 8% percent in early afternoon trading Friday, following its debut on the NYSE.

Priced at $13 a share, below its initial range of $16-$18, the Internet phone provider issued 5 million shares, which netted $65 million. Some of these proceeds will be directed back to research and development, CEO Eric Stang told TheStreet TV.

"Some competitors in the past perhaps haven't done so well, so I think investors are a little wary and want us to prove to them that we can actually execute on the things we've accomplished so far and the things we will do going forward," Stang said on why shares priced lower.

The Internet telecom company competes with the likes of AT&T (T) and Verizon Communications (VZ), but isn't intimidated.

"It all starts with the platform we've built and what it's capable of," Stang added. "About 30% of our new customers come from word of mouth."

While the company saw impressive revenue growth over the past two years to the tune of 84%, losses deepened. Ooma reported a net loss of $6.4 million in fiscal 2015, compared to $3.7 million in 2013.

"We're growing nicely and not too far away from profitability and if we continue our growth, I think we have a good outlook ahead," he said.

With 678,000 users, Ooma said it has saved customers some $700 million since its founding back in 2003. "Traditional phone service can be $30 to $40 for a home consumer and hundreds for a small business," according to Stang. Ooma boasts free nationwide calling, upon the purchase of an Ooma adapter.

For investors who want in on the Internet telecom space, Stang remains bullish. "From our perspective, we see a lot of growth and opportunity," he said. "This is a massive market."

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