Third Quarter Revenue Grew 26% Year-over-Year
on Increased Module Adoption, Increased Transaction Volume, and
Continued Growth in New Locations
Olo Inc. (NYSE:OLO), a leading open SaaS platform for
restaurants that enables hospitality at every guest touchpoint,
today announced financial results for the third quarter ended
September 30, 2022.
“We’re proud of our third quarter results. We generated $47.3
million in total revenue, a 26% increase year over year, as our
platform supported increased module adoption within our existing
customer base, increased transaction volume, and continued growth
in new locations,” said Noah Glass, Olo’s Founder and CEO.
“The Olo platform is purpose-built to help our customers do more
with less and create a differentiated and memorable guest
experience, and as restaurant executive and operator conversations
increasingly focus on sales and margin maintenance due to
challenges related to increased inflation, supply chain
constraints, and labor dynamics, we believe that Olo’s platform is
best positioned to meet restaurants’ needs,” concluded Mr.
Glass.
Third Quarter Financial and Other Highlights
- Total revenue increased 26% year-over-year to $47.3
million.
- Platform revenue increased 28% year-over-year to $46.4
million.
- Gross profit increased 9% year-over-year to $32.0 million, and
was 68% of total revenue.
- Non-GAAP gross profit increased 15% year-over-year to $34.7
million, and was 73% of total revenue.
- Operating loss was $15.9 million.
- Non-GAAP operating income was $3.0 million.
- Net loss was $14.6 million or $0.09 per share, compared to a
net loss of $11.3 million or $0.08 per share a year ago.
- Non-GAAP net income was $4.3 million or $0.02 per share,
compared to non-GAAP net income of $5.0 million or $0.03 per share
a year ago.
- Cash, cash equivalents and short- and long-term investments
totaled $469.2 million as of September 30, 2022.
- Average revenue per unit (ARPU) increased 15% year-over-year,
and increased 3% sequentially to approximately $558.
- Ending active locations increased 11% year-over-year to
approximately 84,000.
- Dollar-based net revenue retention (NRR) was approximately
107%.
A reconciliation of GAAP to non-GAAP financial measures is
provided at the end of this press release. An explanation of these
measures is also included below under the heading “Non-GAAP
Financial Measures and Other Metrics.”
Third Quarter and Recent Business Highlights
- Olo expanded relationships within its existing customer base,
increasing product adoption across several product suites. Jack in
the Box, a top-25 quick service restaurant, or QSR, with more than
2,200 locations replaced their proprietary digital ordering
solution with Olo’s Ordering module.
- Olo welcomed leading enterprise brands and convenience stores,
or C-Stores, to the platform. Leading enterprise brands such as
Smashburger, Ruby Tuesday, and Zaxby’s selected Olo to replace
legacy technology providers, leveraging Olo’s open SaaS platform to
implement highly customized and personalized digital programs to
their guests, while increasing operational efficiencies. C-Stores
such as Maverik - Adventure’s First Stop, an intermountain west
operator with nearly 400 locations across 12 states, as well as an
east coast operator with more than 200 locations selected Olo to
enable their guests to order fresh food for pickup or delivery.
C-Stores represent an emerging vertical for Olo given their 55,000
location opportunity.
- Olo strengthened its partner network by adding autonomous and
piloted robots through partnerships with certified delivery
providers Coco Delivery, Refraction AI, and Serve Robotics to
fulfill orders in specific markets, as well as voice artificial
intelligence ordering solution providers ConverseNow, SYNQ3, and
Valyant AI to enable the digital transformation of the drive thru,
increase operational efficiency, and improve guest experience.
- Olo implemented product enhancements to better serve its
customers, many of which were showcased in Olo’s 2022 Fall Product
Release event, which may be viewed at olo.com/quarterly-release.
Notably, Olo announced the commercial availability of Borderless,
an offering designed to speed and streamline payment across Olo’s
network of over 600 brands, and introduced new capacity management
capabilities, allowing operators to effectively manage kitchen
order flow.
- Olo earned Vendor of the Year awards from fast-casual brands
Cousins Subs and Noodles & Company in recognition of the Olo
platform’s ability to improve the guest experience and empower
restaurant teams to provide hospitality through optimized
operations and personalization.
- Olo debuted its updated corporate website at olo.com, which
showcases the platform’s modular end-to-end restaurant technology
offering that encompasses all guest touchpoints: on-premise,
off-premise, guest engagement, and payments. The updated site also
includes Olo’s first Environment, Social, and Governance, or ESG,
site, viewable at olo.com/ESG. Additionally, Olo debuted a
refreshed page for its partner program, Olo Connect, which includes
a tiered partner directory of Olo’s expansive technology partners
viewable at partners.olo.com.
Financial Outlook
As of November 9, 2022, Olo is issuing the following outlook for
the fourth quarter of 2022 and fiscal year 2022:
For the fourth quarter of 2022, Olo expects to report:
- Revenue in the range of $48.2 million to $48.7 million;
and
- Non-GAAP operating income in the range of $2.6 million to $3.0
million.
For the fiscal year 2022, Olo expects to report:
- Revenue in the range of $183.8 million to $184.3 million;
and
- Non-GAAP operating income in the range of $9.3 million to $9.7
million.
The outlook provided above constitutes forward-looking
information within the meaning of applicable securities laws and is
based on a number of assumptions and subject to a number of risks.
Actual results could vary materially as a result of numerous
factors, including certain risk factors, many of which are beyond
Olo’s control. See the cautionary note regarding “Forward-Looking
Statements” below. Fluctuations in Olo’s operating results may be
particularly pronounced in the current macroeconomic environment,
which has been characterized by rising inflation and interest
rates, lower consumer confidence, uncertainty caused by the ongoing
COVID-19 pandemic, volatility in part due to the war in Ukraine,
and the risk of a global recession, the severity, duration, and
ultimate impact of which is difficult to predict at this time.
While Olo has benefited from the acceleration of demand for
off-premise dining, Olo’s business and financial results could be
materially adversely affected in the future if off-premise dining
declines.
Webcast and Conference Call Information
Olo will host a conference call today, November 9, 2022, at 5:00
p.m. Eastern Time to discuss the Company’s financial results and
financial outlook. A live webcast of this conference call will be
available on the “Investor Relations” page of the Company’s website
(olo.com), and a replay will be available on the website as
well.
Available Information
Olo announces material information to the public about the
Company, its products and services, and other matters through a
variety of means, including filings with the SEC, press releases,
public conference calls, webcasts, the “Investor Relations” page of
the Company’s website (olo.com), and the Company’s Twitter account
@Olo, in order to achieve broad, non-exclusionary distribution of
information to the public and for complying with its disclosure
obligations under Regulation FD.
About Olo
Olo is a leading open SaaS platform for restaurants that enables
hospitality at every guest touchpoint. Millions of orders per day
run on Olo’s on-demand commerce engine, providing restaurants a
single source to understand and serve every guest from every
channel, whether direct or third-party. With integrations to over
300 technology partners, Olo customers can build personalized guest
experiences in and outside of their four walls, utilizing one of
the largest and most flexible restaurant tech ecosystems on the
market. Over 600 restaurant brands trust Olo to grow their digital
ordering and delivery programs, do more with less, and make every
guest feel like a regular. Learn more at olo.com.
Non-GAAP Financial Measures and Other Metrics
Non-GAAP Financial Measures
In this press release, we refer to non-GAAP financial measures
that are derived on the basis of methodologies other than in
accordance with United States generally accepted accounting
principles, or GAAP. We use non-GAAP financial measures, as
described below, in conjunction with financial measures prepared in
accordance with GAAP for planning purposes, including in the
preparation of our annual operating budget, as a measure of our
core operating results and the effectiveness of our business
strategy, and in evaluating our financial performance. These
measures provide consistency and comparability with past financial
performance as measured by such non-GAAP figures, facilitate
period-to-period comparisons of core operating results, and assist
shareholders in better evaluating us by presenting
period-over-period operating results without the effect of certain
charges or benefits that may not be consistent or comparable across
periods.
A reconciliation of these non-GAAP measures has been provided in
the financial statement tables included in this press release and
investors are encouraged to review the reconciliation. Our use of
non-GAAP financial measures has limitations as an analytical tool,
and these measures should not be considered in isolation or as a
substitute for analysis of our GAAP financial results. Because our
non-GAAP financial measures are not calculated in accordance with
GAAP, they may not necessarily be comparable to similarly titled
measures employed by other companies.
The following are the non-GAAP financial measures referenced in
this press release and presented in the tables below: non-GAAP
gross profit (total and each line item, and total and each non-GAAP
gross profit item on a margin basis as a percentage of revenue),
non-GAAP operating expenses (each line item and each non-GAAP
operating expense item on a margin basis as a percentage of
revenue), non-GAAP operating income (and on a margin basis as a
percentage of revenue), non-GAAP net income (and on a per share
basis), and free cash flow.
We adjust our GAAP financial measures for the following items to
calculate one or more of our non-GAAP financial measures (other
than free cash flow): stock-based compensation expense (non-cash
expense calculated by companies using a variety of valuation
methodologies and subjective assumptions) and related payroll tax
expense, equity expense related to charitable contributions
(non-cash expense), intangible and internal-use software
amortization (non-cash expense), change in fair value of warrants,
other non-cash charges, severance costs, including those related to
the departure of our Chief Customer Officer, costs and an
impairment charge associated with the sublease of our corporate
headquarters, transaction costs incurred within one year of the
related acquisition, and related income tax impacts.
Reconciliation of non-GAAP operating income guidance to the most
directly comparable GAAP measures is not available without
unreasonable efforts on a forward-looking basis due to the high
variability, complexity, and low visibility with respect to the
charges excluded from these non-GAAP measures; in particular, the
measures and effects of stock-based compensation expense and
related payroll tax expense specific to equity compensation awards
that are directly impacted by unpredictable fluctuations in our
stock price. We expect the variability of the above charges to have
a significant, and potentially unpredictable, impact on our future
GAAP financial results.
Management believes that it is useful to exclude certain
non-cash charges and non-core operational charges from non-GAAP
operating income because (i) the amount of such expenses in any
specific period may not directly correlate to the underlying
performance of our business operations; and (ii) such expenses can
vary significantly between periods. For 2022, payroll tax expenses
related to equity compensation awards were added to our calculation
of non-GAAP operating income. We have historically excluded
stock-based compensation expense from non-GAAP operating income,
and management believes that excluding the related payroll tax
expense is important and consistent, as such payroll tax expenses
are directly impacted by unpredictable fluctuations in our stock
price. Prior period amounts have been revised to conform with the
current year presentation.
Free cash flow represents net cash provided by or used in
operating activities, reduced by purchases of property and
equipment and capitalization of internal-use software. Free cash
flow is a measure used by management to understand and evaluate our
liquidity and to generate future operating plans. Free cash flow
excludes items that we do not consider to be indicative of our
liquidity. The reduction of capital expenditures facilitates
comparisons of our liquidity on a period-to-period basis. We
believe providing free cash flow provides useful information to
investors and others in understanding and evaluating the strength
of our liquidity and future ability to generate cash that can be
used for strategic opportunities or investing in our business from
the perspective of our management and Board of Directors.
Key Performance Indicators
In addition, we also use the following key performance
indicators to help us evaluate our business, identify trends
affecting the business, formulate business plans, and make
strategic decisions.
Active Locations: We define an active location as a unique
restaurant location that is utilizing one or more of our modules at
the end of a quarterly period. We believe that active location
count is an important metric that demonstrates the growth and scale
of our overall business and reflects our ability to attract,
engage, and monetize our customers and thereby drive revenue, as
well as provides a base to expand usage of our modules.
Average revenue per unit (ARPU): We calculate ARPU by dividing
the total platform revenue in a given period by the average active
locations in that same period. We believe ARPU is an important
metric that measures monetization of our platform and demonstrates
our ability to grow within our customer base through the
development of products that our customers value.
Dollar-based net revenue retention (NRR): We calculate NRR as of
a period-end by starting with the revenue, defined as platform
revenue, from the cohort of all active customers as of 12 months
prior to such period-end, or the prior period revenue. We then
calculate the platform revenue from these same customers as of the
current period-end, or the current period revenue. Current period
revenue includes any expansion and is net of contraction or
attrition over the last 12 months, but excludes platform revenue
from new customers in the current period. We then divide the total
current period revenue by the total prior period revenue to arrive
at the point-in-time dollar-based NRR. We believe that NRR is an
important metric demonstrating our ability to retain our customers
and expand their use of our modules over time, proving the
stability of our revenue base and the long-term value of our
customer relationships.
Forward-Looking Statements
Statements we make in this press release include statements that
are considered forward-looking within the meaning of Section 27A of
the Securities Act and Section 21E of the Securities Exchange Act,
which may be identified by the use of words such as “believes,”
“continue,” “estimates,” “expects,” “intends,” “may,” “plans,”
“projects,” “outlook,” “seeks,” “should,” “will,” and similar terms
or the negative of such terms. All statements other than statements
of historical fact are forward-looking statements for purposes of
this release.
We intend these forward-looking statements to be covered by the
safe harbor provisions for forward-looking statements contained in
Section 27A of the Securities Act and Section 21E of the Securities
Exchange Act and are making this statement for purposes of
complying with those safe harbor provisions. These statements
include, but are not limited to, our financial guidance for the
fourth quarter of 2022 and the full year 2022, our future
performance and growth and market opportunities, including new
products and continued module adoption, our business strategy, our
ability to sustain our profitability, customer adoption of our
products and expectations for capturing market share and our
delivery of new products or product features, our aspirations with
respect to ESG initiatives, and expectations regarding the impact
of macroeconomic conditions and the ongoing COVID-19 pandemic on
our business and industry. Accordingly, actual results could differ
materially or such uncertainties could cause adverse effects on our
results.
Forward-looking statements are based upon various estimates and
assumptions, as well as information known to us as of the date of
this press release, and are subject to risks and uncertainties,
including but not limited to: the ongoing COVID-19 pandemic on our
business, including the emergence of any new variants; the business
of our customers and economic conditions, including rising
inflation, labor dynamics, increasing interest rates, and any
reductions in consumer spending on dining due to the general
economic climate; our focus on the long-term and our investments in
sustainable, profitable growth; our ability to acquire new
customers, have existing customers adopt additional modules, and
successfully retain existing customers; impact of competitors,
price competition, or the ability of our customers to replace some
of our products with their own internal platforms; our ability to
develop and release new products and services, and develop and
release successful enhancements, features, and modifications to our
existing products and services; our actual or perceived failure to
comply with our obligations related to data privacy, cybersecurity
and processing payment transactions; the impact of new and existing
laws and regulations on our business; changes to our strategic
relationships with third parties; our reliance on a limited number
of delivery service providers and aggregators; our ability to
generate revenue from our product offerings and the effects of
fluctuations in our level of client spend retention; competition;
changes in the amount and mix of transactions facilitated through
our platform; changes in our level of investment in sales and
marketing, research and development, and general and administrative
expenses, and our hiring plans; future changes to our pricing
model; changes in management; and other general market, political,
economic, and business conditions. Actual results could differ
materially from those predicted or implied, and reported results
should not be considered an indication of future performance.
Additionally, these forward-looking statements, particularly our
guidance, involve risks, uncertainties, and assumptions, including
those related to our customers’ spending decisions and consumer
ordering behavior particularly as COVID-19 associated restrictions
continue to abate. Significant variations from the assumptions
underlying our forward-looking statements could cause our actual
results to vary, and the impact could be significant.
Additional risks and uncertainties that could affect our
financial results and forward-looking statements are included under
the caption “Risk Factors” in our Quarterly Report on Form 10-Q for
the quarterly period ended September 30, 2022 that will be filed
following this earnings release, our Annual Report on Form 10-K for
the year ended December 31, 2021, our subsequent Quarterly Reports
on Form 10-Q, and our other SEC filings, which are available on the
“Investor Relations” page of our website at www.olo.com and on the
SEC website at www.sec.gov. Undue reliance should not be placed on
the forward-looking statements in this press release. All
forward-looking statements contained herein are based on
information available to us as of the date hereof, and we do not
assume any obligation to update these statements as a result of new
information or future events.
OLO INC.
Condensed Consolidated Balance
Sheets (Unaudited)
(in thousands, except share
and per share amounts)
As of September 30,
2022
As of December 31,
2021
ASSETS
Current assets:
Cash and cash equivalents
$
366,399
$
514,445
Short-term investments
101,956
—
Accounts receivable, net of allowances of
$612 and $657, respectively
43,108
42,319
Contract assets
402
568
Deferred contract costs
2,729
2,567
Prepaid expenses and other current
assets
6,644
5,718
Total current assets
521,238
565,617
Property and equipment, net
10,540
3,304
Intangible assets, net
22,688
19,635
Goodwill
207,540
162,956
Contract assets, noncurrent
619
387
Deferred contract costs, noncurrent
3,991
3,616
Operating lease right-of-use assets
14,568
—
Long-term investments
804
—
Other assets, noncurrent
452
361
Total assets
$
782,440
$
755,876
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
1,930
$
2,184
Accrued expenses and other current
liabilities
46,543
45,395
Unearned revenue
2,608
1,190
Operating lease liabilities, current
2,666
—
Total current liabilities
53,747
48,769
Unearned revenue, noncurrent
1,121
3,014
Operating lease liabilities,
noncurrent
16,328
—
Other liabilities, noncurrent
243
2,343
Total liabilities
71,439
54,126
Stockholders’ equity:
Class A common stock, $0.001 par value;
1,700,000,000 shares authorized at September 30, 2022 and December
31, 2021; 105,063,706 and 78,550,530 shares issued and outstanding
at September 30, 2022 and December 31, 2021, respectively. Class B
common stock, $0.001 par value; 185,000,000 shares authorized at
September 30, 2022 and December 31, 2021; 58,421,140 and 79,149,659
shares issued and outstanding at September 30, 2022 and December
31, 2021, respectively.
163
158
Preferred stock, $0.001 par value;
20,000,000 shares authorized at September 30, 2022 and December 31,
2021.
—
—
Additional paid-in capital
860,574
813,166
Accumulated deficit
(149,316
)
(111,574
)
Accumulated other comprehensive loss
(420
)
—
Total stockholders’ equity
711,001
701,750
Total liabilities and stockholders’
equity
$
782,440
$
755,876
OLO INC.
Condensed Consolidated
Statements of Operations (Unaudited)
(in thousands, except share
and per share amounts)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022
2021
2022
2021
Revenue:
Platform
$
46,357
$
36,084
$
132,361
$
105,533
Professional services and other
909
1,306
3,262
3,876
Total revenue
47,266
37,390
135,623
109,409
Cost of revenue:
Platform
13,920
6,632
37,693
18,419
Professional services and other
1,346
1,532
4,543
3,958
Total cost of revenue
15,266
8,164
42,236
22,377
Gross profit
32,000
29,226
93,387
87,032
Operating expenses:
Research and development
19,101
14,485
53,159
42,872
General and administrative
20,894
21,270
56,090
53,034
Sales and marketing
7,923
4,728
24,890
12,265
Total operating expenses
47,918
40,483
134,139
108,171
Loss from operations
(15,918
)
(11,257
)
(40,752
)
(21,139
)
Other income (expenses), net:
Interest income
1,525
—
2,110
—
Interest expense
(70
)
—
(116
)
—
Other (expense) income
(7
)
(15
)
6
(23
)
Change in fair value of warrant
liability
—
—
—
(18,930
)
Total other income (expenses), net
1,448
(15
)
2,000
(18,953
)
Loss before income taxes
(14,470
)
(11,272
)
(38,752
)
(40,092
)
Provision (benefit) for income taxes
90
36
(1,010
)
110
Net loss
$
(14,560
)
$
(11,308
)
$
(37,742
)
$
(40,202
)
Accretion of redeemable convertible
preferred stock to redemption value
—
—
—
(14
)
Net loss attributable to Class A and Class
B common stockholders
$
(14,560
)
$
(11,308
)
$
(37,742
)
$
(40,216
)
Net loss per share attributable to Class A
and Class B common stockholders:
Basic
$
(0.09
)
$
(0.08
)
$
(0.23
)
$
(0.35
)
Diluted
$
(0.09
)
$
(0.08
)
$
(0.23
)
$
(0.35
)
Weighted-average Class A and Class B
common shares outstanding:
Basic
162,364,654
148,452,987
160,667,412
113,451,378
Diluted
162,364,654
148,452,987
160,667,412
113,451,378
OLO INC.
Condensed Consolidated
Statements of Cash Flows (Unaudited)
(in thousands)
Nine Months Ended
September 30, 2022
Nine Months Ended
September 30, 2021
Operating activities
Net loss
$
(37,742
)
$
(40,202
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
4,285
800
Stock-based compensation
35,104
21,417
Stock-based compensation in connection
with vesting of Stock Appreciation Rights
—
2,847
Charitable donation of Class A common
stock
1,406
13,107
Bad debt expense
263
283
Change in fair value of warrants
—
18,930
Non-cash lease expense
1,706
—
Deferred income tax benefit
(1,421
)
—
Non-cash impairment charges
2,806
—
Other non-cash loss, net
(560
)
—
Changes in operating assets and
liabilities:
Accounts receivable
(602
)
4,966
Contract assets
(66
)
(898
)
Prepaid expenses and other current
assets
(404
)
(3,256
)
Deferred contract costs
(537
)
(594
)
Accounts payable
(452
)
(3,721
)
Accrued expenses and other current
liabilities
927
10,350
Operating lease liabilities
(1,893
)
—
Unearned revenue
(558
)
2,354
Other liabilities, noncurrent
136
(174
)
Net cash provided by operating
activities
2,398
26,209
Investing activities
Purchases of property and equipment
(454
)
(324
)
Capitalized internal-use software
(6,997
)
(871
)
Acquisitions, net of cash acquired
(49,241
)
—
Purchases of investments
(114,006
)
—
Sales and maturities of investments
11,388
—
Net cash used in investing activities
(159,310
)
(1,195
)
Financing activities
Proceeds from issuance of common stock
upon initial public offering, net of underwriting discounts
—
485,541
Cash received for employee payroll tax
withholdings
7,083
25,696
Cash paid for employee payroll tax
withholdings
(7,012
)
(18,691
)
Proceeds from exercise of warrants
—
392
Payment of deferred finance costs
—
(135
)
Payment of deferred offering costs
(423
)
(4,118
)
Proceeds from exercise of stock options
and purchases under employee stock purchase plan
9,218
8,287
Net cash provided by financing
activities
8,866
496,972
Net (decrease) increase in cash and cash
equivalents
(148,046
)
521,986
Cash and cash equivalents, beginning of
period
514,445
75,756
Cash and cash equivalents, end of
period
$
366,399
$
597,742
OLO INC.
Reconciliation of GAAP to
Non-GAAP Results (Unaudited)
(in thousands, except
percentages)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022
2021
2022
2021
Gross profit and gross margin
reconciliation:
Platform gross profit, GAAP
$
32,437
$
29,452
$
94,668
$
87,114
Plus: Stock-based compensation expense and
related payroll tax expense (1)
1,380
762
4,386
1,942
Plus: Amortization
1,132
138
2,728
413
Plus: Severance costs
17
—
17
—
Platform gross profit, non-GAAP
34,966
30,352
101,799
89,469
Services gross profit, GAAP
(437
)
(226
)
(1,281
)
(82
)
Plus: Stock-based compensation expense and
related payroll tax expense (1)
169
116
618
362
Plus: Severance costs
36
—
36
—
Services gross profit, non-GAAP
(232
)
(110
)
(627
)
280
Total gross profit, GAAP
32,000
29,226
93,387
87,032
Total gross profit, non-GAAP
34,734
30,242
101,172
89,749
Platform gross margin, GAAP
70
%
82
%
72
%
83
%
Platform gross margin, non-GAAP
75
%
84
%
77
%
85
%
Services gross margin, GAAP
(48
) %
(17
) %
(39
) %
(2
) %
Services gross margin, non-GAAP
(26
) %
(8
) %
(19
) %
7
%
Total gross margin, GAAP
68
%
78
%
69
%
80
%
Total gross margin, non-GAAP
73
%
81
%
75
%
82
%
Sales and marketing
reconciliation:
Sales and marketing, GAAP
7,923
4,728
24,890
12,265
Less: Stock-based compensation expense and
related payroll tax expense (1)
1,395
512
4,390
1,436
Less: Amortization
341
—
997
—
Less: Transaction costs
—
—
79
—
Less: Severance costs
112
—
112
—
Sales and marketing, non-GAAP
6,075
4,216
19,312
10,829
Sales and marketing as % total revenue,
GAAP
17
%
13
%
18
%
11
%
Sales and marketing as % total revenue,
non-GAAP
13
%
11
%
14
%
10
%
Research and development
reconciliation:
Research and development, GAAP
19,101
14,485
53,159
42,872
Less: Stock-based compensation expense and
related payroll tax expense (1)
3,603
2,570
10,614
8,895
Less: Non-cash capitalized software
impairment
—
—
475
—
Less: Severance costs
72
—
72
—
Research and development, non-GAAP
15,426
11,915
41,998
33,977
Research and development as % total
revenue, GAAP
40
%
39
%
39
%
39
%
Research and development as % total
revenue, non-GAAP
33
%
32
%
31
%
31
%
General and administrative
reconciliation:
General and administrative, GAAP
20,894
21,270
56,090
53,034
Less: Stock-based compensation expense and
related payroll tax expense (1)
5,559
3,907
15,816
12,250
Less: Charitable donation of Class A
common stock
1,406
7,982
1,406
13,107
Less: Costs and impairment charge
associated with sublease of corporate headquarters
3,272
—
3,272
—
Less: Amortization
40
—
113
—
Less: Severance costs
386
—
941
—
Less: Transaction costs
(19
)
343
1,388
343
General and administrative, non-GAAP
10,250
9,038
33,154
27,334
General and administrative as % total
revenue, GAAP
44
%
57
%
41
%
48
%
General and administrative as % total
revenue, non-GAAP
22
%
24
%
24
%
25
%
_________________________ (1) For 2022, payroll tax expenses
related to equity compensation awards were added to our calculation
of non-GAAP operating income. We have historically excluded
stock-based compensation expense from non-GAAP operating income,
and management believes that excluding the related payroll tax
expense is important and consistent, as such payroll tax expenses
are directly impacted by unpredictable fluctuations in our stock
price. Prior period amounts have been revised to conform with the
current year presentation.
OLO INC.
Reconciliation of GAAP to
Non-GAAP Results (Unaudited)
(in thousands, except
percentages)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022
2021
2022
2021
Operating income (loss)
reconciliation:
Operating loss, GAAP
$
(15,918
)
$
(11,257
)
$
(40,752
)
$
(21,139
)
Plus: Stock-based compensation expense and
related payroll tax expense (1)
12,106
7,867
35,824
24,885
Plus: Charitable donation of Class A
common stock
1,406
7,982
1,406
13,107
Plus: Costs and impairment charge
associated with sublease of corporate headquarters
3,272
—
3,272
—
Plus: Non-cash capitalized software
impairment
—
—
475
—
Plus: Amortization
1,513
138
3,838
413
Plus: Severance costs
623
—
1,178
—
Plus: Transaction costs
(19
)
343
1,467
343
Operating income, non-GAAP
2,983
5,073
6,708
17,609
Operating margin, GAAP
(34
)%
(30
)%
(30
)%
(19
)%
Operating margin, non-GAAP
6
%
14
%
5
%
16
%
Net income (loss)
reconciliation:
Net loss, GAAP
(14,560
)
(11,308
)
(37,742
)
(40,202
)
Plus: Stock-based compensation expense and
related payroll tax expense (1)
12,106
7,867
35,824
24,885
Plus: Charitable donation of Class A
common stock
1,406
7,982
1,406
13,107
Plus: Costs and impairment charge
associated with sublease of corporate headquarters
3,272
—
3,272
—
Plus: Non-cash capitalized software
impairment
—
—
475
—
Plus: Amortization
1,513
138
3,838
413
Plus: Change in fair value of warrant
liability
—
—
—
18,930
Plus: Severance costs
623
—
1,178
—
Plus: Transaction costs
(19
)
343
1,467
343
Less: Transaction-related deferred income
tax benefit
—
—
(1,421
)
—
Net income, non-GAAP
4,341
5,022
8,297
17,476
Fully diluted net loss per share
attributable to Class A and Class B common stockholders, GAAP
$
(0.09
)
$
(0.08
)
$
(0.23
)
$
(0.35
)
Fully diluted weighted average Class A and
Class B common shares outstanding, GAAP
162,364,654
148,452,987
160,667,412
113,451,378
Fully diluted net income per share
attributable to Class A and Class B common stockholders,
non-GAAP
$
0.02
$
0.03
$
0.05
$
0.10
Fully diluted Class A and Class B common
shares outstanding, non-GAAP
181,863,142
185,086,261
182,334,581
177,315,424
_____________________________________
(1) For 2022, payroll tax expenses related
to equity compensation awards were added to our calculation of
non-GAAP operating income. We have historically excluded
stock-based compensation expense from non-GAAP operating income,
and management believes that excluding the related payroll tax
expense is important and consistent, as such payroll tax expenses
are directly impacted by unpredictable fluctuations in our stock
price. Prior period amounts have been revised to conform with the
current year presentation.
OLO INC.
Non-GAAP Free Cash Flow
(Unaudited)
(in thousands)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022
2021
2022
2021
Net cash provided by operating
activities
$
3,268
$
10,738
$
2,398
$
26,209
Purchase of property and equipment
(45
)
(53
)
(454
)
(324
)
Capitalization of internal-use
software
(1,872
)
(482
)
(6,997
)
(871
)
Non-GAAP free cash flow
$
1,351
$
10,203
$
(5,053
)
$
25,014
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version on businesswire.com: https://www.businesswire.com/news/home/20221109005872/en/
Media Olo@icrinc.com Investor Relations
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