Full-Year 2022 Revenue of $185.4 million, up
24% Year-over-Year
Fourth-Quarter Revenue of $49.8 million, up 25%
Year-over-Year Driven by Continued Module Adoption and Active
Location Growth
Olo Inc. (NYSE:OLO), a leading open SaaS platform for
restaurants, today announced financial results for the
fourth-quarter and full-year ended December 31, 2022.
“In 2022, Olo increasingly became the platform that restaurant
brands rely on to make their digital priorities a reality,” said
Noah Glass, Olo’s Founder and CEO. “Now, more than ever,
restaurants recognize the need to invest in technology as a means
to better serve their guests and operate their businesses more
effectively. Our hard work in 2022, our network of brands,
partners, and guests, and our comprehensive product suite all
enable Olo to meet the needs of our customers, and we believe have
set the table for great things to come in 2023 and beyond,”
continued Mr. Glass.
“We have always been focused on balanced growth and efficient
investment in the business. We believe this has served the business
well over time and it is how we are approaching 2023. Our
investment plan this year takes into account the rising cost of
capital and the macro environment, which is reflected in the
operating expense leverage we expect to gain in 2023,” said Peter
Benevides, Olo’s CFO.
Fourth-Quarter Financial and Other Highlights
- Total revenue increased 25% year-over-year to $49.8
million.
- Gross profit increased 10% year-over-year to $34.5 million, and
was 69% of total revenue.
- Non-GAAP gross profit increased 14% year-over-year to $37.3
million, and was 75% of total revenue.
- Operating loss was $10.9 million.
- Non-GAAP operating income was $3.1 million.
- Net loss was $8.2 million or $(0.05) per share, compared to net
loss of $2.1 million or $(0.01) per share a year ago.
- Non-GAAP net income was $5.6 million or $0.03 per diluted
share, compared to non-GAAP net income of $5.1 million or $0.03 per
diluted share a year ago.
- Cash, cash equivalents, and short- and long-term investments
totaled $451.2 million as of December 31, 2022.
- Total shares repurchased were approximately 2.7 million for
approximately $20.1 million.
- Average revenue per unit (ARPU) increased 13% year-over-year to
approximately $571.
- Ending active locations increased 10% year-over-year to
approximately 87,000.
- Dollar-based net revenue retention (NRR) was approximately
108%.
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.”
Fourth-Quarter and Recent Business Highlights
- Olo expanded relationships with existing customers, including
TGI Fridays and Virtual Dining Concepts deploying Olo Pay. TGI
Fridays, a casual dining restaurant with more than 300 locations,
deployed Olo Pay to improve guest satisfaction and online ordering
outcomes, such as increased basket conversion and decreased fraud
rates. Virtual Dining Concepts, the parent of MrBeast Burger and
other delivery-only brands, also adopted Olo Pay at all of their
virtual brands, which include more than 3,000 virtual restaurants
in more than 2,000 restaurants.
- Olo added new customers such as Captain D’s, a fast-casual
enterprise seafood restaurant with more than 550 locations, to the
platform. Captain D’s deployed Olo’s Ordering, Dispatch, Rails,
Network, and Olo Pay modules.
- Olo continued to service and expand the presence of virtual
brands on the platform, including Tender Shack, a Bloomin’ Brands
virtual brand with more than 800 locations, and LankyBox Kitchen, a
family-focused virtual brand launched by Virtual Dining Concepts,
available at more than 450 Chuck E. Cheese locations. Virtual
brands have become an important part of restaurant kitchens,
allowing Olo customers to leverage their operations to maximize
revenue per square foot.
- Olo showcased the extensibility of the platform through
expanding into grocery stores. Kroger, an American retail company
that operates supermarkets and multi-department stores throughout
the United States, deployed Olo’s Rails module, bringing sushi and
floral delivery to customers nationwide. Multi-unit grocery stores
represent an emerging vertical for Olo, expanding Olo’s total
addressable location count by almost 30,000 locations, representing
almost $37 billion in annual food service sales.
- Olo implemented product enhancements to better serve its
customers, many of which will be showcased in Olo’s 2022 Winter
Product Release event. New features such as expanded Borderless
functionality for all Olo Pay customers, enhanced QR code ordering,
expanded geolocation partner notification, amongst others may be
viewed at olo.com/quarterly-release. These new key innovations are
designed to address operational challenges and improve the guest
experience at scale.
- Olo’s Executive Vice President of Technology, Priya Thinagar,
was honored by Insider as a Restaurant Power Player, as Priya and
her team have been key in expanding Olo’s platform, fostering
innovation, and scaling new products, such as Olo Pay.
Additionally, Olo earned Best Customer Data Platform from Digiday,
in recognition of the Olo platform’s ability to deliver
personalized marketing messages, better customer experience across
channels — in-restaurant and digital — and better understand
customer preferences.
Financial Outlook
As of February 22, 2023, Olo is issuing the following outlook
for the first-quarter of 2023 and fiscal-year 2023:
For the first-quarter of 2023, Olo expects to report:
- Revenue in the range of $50.5 million to $51.0 million;
and
- Non-GAAP operating income in the range of $0.6 million to $1.0
million.
For the fiscal-year 2023, Olo expects to report:
- Revenue in the range of $213.0 million to $215.0 million;
and
- Non-GAAP operating income in the range of $11.4 million to
$13.0 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. We assume no obligation to update these
forward-looking statements. See the cautionary note regarding
“Forward-Looking Statements” below.
Webcast and Conference Call Information
Olo will host a conference call today, February 22, 2023 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” website at investors.olo.com,
and a replay will be archived 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” website
at investors.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 Inc. (NYSE: 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, certain severance costs, 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 modules in a
given 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 to our investors, 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 “anticipates,”
“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
first quarter of 2023 and the full year 2023, 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 business of our customers and
economic conditions, including inflation, labor dynamics,
increasing interest rates, and any reductions in guest 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; 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; the ongoing
COVID-19 pandemic, including the emergence of any new variants; 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 guest 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 Annual Report on Form 10-K for
the year ended December 31, 2022 that will be filed following this
earnings release, and our other SEC filings, which are available on
our “Investor Relations” website at investors.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
December 31,
2022
As of
December 31,
2021
ASSETS
Current assets:
Cash and cash equivalents
$
350,073
$
514,445
Short-term investments
98,699
—
Accounts receivable, net
48,128
42,319
Contract assets
336
568
Deferred contract costs
2,851
2,567
Prepaid expenses and other current
assets
11,687
5,718
Total current assets
511,774
565,617
Property and equipment, net
11,700
3,304
Intangible assets, net
21,698
19,635
Goodwill
207,781
162,956
Contract assets, noncurrent
241
387
Deferred contract costs, noncurrent
4,171
3,616
Operating lease right-of-use assets
15,581
—
Long-term investments
2,430
—
Other assets, noncurrent
186
361
Total assets
$
775,562
$
755,876
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
2,259
$
2,184
Accrued expenses and other current
liabilities
52,411
45,395
Unearned revenue
2,527
1,190
Operating lease liabilities, current
3,220
—
Total current liabilities
60,417
48,769
Unearned revenue, noncurrent
661
3,014
Operating lease liabilities,
noncurrent
16,827
—
Other liabilities, noncurrent
41
2,343
Total liabilities
77,946
54,126
Stockholders’ equity:
Class A common stock, $0.001 par value;
1,700,000,000 shares authorized at December 31, 2022 and December
31, 2021; 105,053,030 and 78,550,530 shares issued and outstanding
at December 31, 2022 and 2021, respectively. Class B common stock,
$0.001 par value; 185,000,000 shares authorized at December 31,
2022 and 2021, respectively; 57,391,687 and 79,149,659 shares
issued and outstanding at December 31, 2022 and 2021,
respectively.
162
158
Preferred stock, $0.001 par value;
20,000,000 shares authorized at December 31, 2022 and 2021.
—
—
Additional paid-in capital
855,249
813,166
Accumulated deficit
(157,542
)
(111,574
)
Accumulated other comprehensive loss
(253
)
—
Total stockholders’ equity
697,616
701,750
Total liabilities and stockholders’
equity
$
775,562
$
755,876
OLO INC. Condensed Consolidated
Statement of Operations (Unaudited) (in thousands, except
share and per share amounts)
Three Months Ended
December 31,
Year Ended
December 31,
2022
2021
2022
2021
Revenue:
Platform
$
48,932
$
38,913
$
181,293
$
144,446
Professional services and other
849
1,046
4,111
4,922
Total revenue
49,781
39,959
185,404
149,368
Cost of revenue:
Platform
14,103
7,153
51,796
25,572
Professional services and other
1,172
1,300
5,715
5,258
Total cost of revenue
15,275
8,453
57,511
30,830
Gross profit
34,506
31,506
127,893
118,538
Operating expenses:
Research and development
19,768
16,046
72,927
58,918
General and administrative
16,944
16,591
73,034
69,625
Sales and marketing
8,706
5,706
33,596
17,971
Total operating expenses
45,418
38,343
179,557
146,514
Loss from operations
(10,912
)
(6,837
)
(51,664
)
(27,976
)
Other income (expenses), net:
Interest income
2,482
—
4,592
—
Interest expense
(69
)
—
(185
)
—
Other income, net
1
100
7
77
Change in fair value of warrant
liability
—
—
—
(18,930
)
Total other income (expenses), net
2,414
100
4,414
(18,853
)
Loss before taxes
(8,498
)
(6,737
)
(47,250
)
(46,829
)
Benefit for income taxes
(272
)
(4,666
)
(1,282
)
(4,556
)
Net loss
$
(8,226
)
$
(2,071
)
$
(45,968
)
$
(42,273
)
Accretion of redeemable convertible
preferred stock to redemption value
—
—
—
(14
)
Net loss attributable to Class A and Class
B common stockholders
$
(8,226
)
$
(2,071
)
$
(45,968
)
$
(42,287
)
Net loss per share attributable to Class A
and Class B common stockholders:
Basic
$
(0.05
)
$
(0.01
)
$
(0.28
)
$
(0.34
)
Diluted
$
(0.05
)
$
(0.01
)
$
(0.28
)
$
(0.34
)
Weighted-average Class A and Class B
common shares outstanding:
Basic
163,207,461
154,590,978
161,303,397
123,822,838
Diluted
163,207,461
154,590,978
161,303,397
123,822,838
OLO INC. Condensed Consolidated
Statements of Cash Flows (Unaudited) (in thousands)
Year Ended
December 31, 2022
Year Ended
December 31, 2021
Operating activities
Net loss
$
(45,968
)
$
(42,273
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
6,020
1,615
Stock-based compensation
46,024
32,727
Charitable donation of Class A common
stock
1,406
13,107
Provision for expected credit losses
283
364
Change in fair value of warrants
—
18,930
Non-cash lease expense
2,388
—
Deferred income tax benefit
(1,519
)
(4,896
)
Non-cash impairment charges
2,806
—
Other non-cash operating activities,
net
(1,135
)
—
Changes in operating assets and
liabilities:
Accounts receivable
(5,642
)
3,734
Contract assets
377
(96
)
Prepaid expenses and other current
assets
(5,191
)
(2,837
)
Deferred contract costs
(839
)
(1,007
)
Accounts payable
(130
)
(6,820
)
Accrued expenses and other current
liabilities
7,308
1,603
Operating lease liabilities
(2,535
)
—
Unearned revenue
(1,243
)
2,259
Other liabilities, noncurrent
(66
)
(157
)
Net cash provided by operating
activities
2,344
16,253
Investing activities
Purchases of property and equipment
(517
)
(393
)
Capitalized internal-use software
(8,480
)
(1,452
)
Acquisitions, net of cash acquired
(49,241
)
(75,227
)
Purchases of investments
(151,723
)
—
Sales and maturities of investments
51,478
—
Net cash used in investing activities
(158,483
)
(77,072
)
Financing activities
Proceeds from issuance of Class A common
stock upon initial public offering, net of underwriting
discounts
—
485,541
Cash received for employee payroll tax
withholdings
9,094
46,956
Cash paid for employee payroll tax
withholdings
(9,094
)
(46,956
)
Proceeds from exercise of warrants
—
392
Payment of deferred finance costs
—
(136
)
Payment of deferred offering costs
(423
)
(4,124
)
Proceeds from exercise of stock options
and purchases under the employee stock purchase plan
12,244
17,835
Repurchase of common stock
(20,054
)
—
Net cash (used in) provided by financing
activities
(8,233
)
499,508
Net (decrease) increase in cash and cash
equivalents
(164,372
)
438,689
Cash and cash equivalents, beginning of
year
514,445
75,756
Cash and cash equivalents, end of year
$
350,073
$
514,445
OLO INC. Reconciliation of GAAP to
Non-GAAP Results (Unaudited) (in thousands, except for
percentages and share and per share amounts)
Three Months
Ended
December 31,
2022
Three Months
Ended
December 31,
2021
Year Ended
December 31,
2022
Year Ended
December 31,
2021
Gross profit and gross margin
reconciliation:
Platform gross profit, GAAP
$
34,829
$
31,760
$
129,497
$
118,874
Plus: Stock-based compensation expense and
related payroll tax expense (1)
1,197
764
5,583
2,706
Plus: Capitalized internal-use software
and intangible amortization
1,226
166
3,954
579
Plus: Severance costs
160
—
177
—
Plus: Transaction costs
—
9
—
9
Platform gross profit, non-GAAP
37,412
32,699
139,211
122,168
Services gross profit, GAAP
(323
)
(254
)
(1,604
)
(336
)
Plus: Stock-based compensation expense and
related payroll tax expense (1)
67
112
685
474
Plus: Severance costs
140
—
176
—
Plus: Transaction costs
—
45
—
45
Services gross profit, Non-GAAP
(116
)
(97
)
(743
)
183
Total gross profit, GAAP
34,506
31,506
127,893
118,538
Total gross profit, non-GAAP
37,296
32,602
138,468
122,351
Platform gross margin, GAAP
71
%
82
%
71
%
82
%
Platform gross margin, non-GAAP
76
%
84
%
77
%
85
%
Services gross margin, GAAP
(38
) %
(24
) %
(39
) %
(7
) %
Services gross margin, non-GAAP
(14
) %
(9
) %
(18
) %
4
%
Total gross margin, GAAP
69
%
79
%
69
%
79
%
Total gross margin, non-GAAP
75
%
82
%
75
%
82
%
Sales and marketing
reconciliation:
Sales and marketing, GAAP
8,706
5,706
33,596
17,971
Less: Stock-based compensation expense and
related payroll tax expense (1)
1,235
715
5,625
2,151
Less: Intangible amortization
341
—
1,338
—
Less: Severance costs
204
—
316
—
Less: Transaction costs
—
433
79
433
Sales and marketing, non-GAAP
6,926
4,558
26,238
15,387
Sales and marketing as % total revenue,
GAAP
17
%
14
%
18
%
12
%
Sales and marketing as % total revenue,
non-GAAP
14
%
11
%
14
%
10
%
Research and development
reconciliation:
Research and development, GAAP
19,768
16,046
72,927
58,918
Less: Stock-based compensation expense and
related payroll tax expense (1)
3,704
2,782
14,318
11,677
Less: Non-cash capitalized software
impairment
—
—
475
—
Less: Severance costs
260
—
332
—
Less: Transaction costs
—
425
—
425
Research and development, non-GAAP
15,804
12,839
57,802
46,816
Research and development as % total
revenue, GAAP
40
%
40
%
39
%
39
%
Research and development as % total
revenue, non-GAAP
32
%
32
%
31
%
31
%
General and administrative
reconciliation:
General and administrative, GAAP
16,944
16,591
73,034
69,625
Less: Stock-based compensation expense and
related payroll tax expense (1)
4,838
5,011
20,654
17,261
Less: Charitable donation of Class A
common stock
—
—
1,406
13,107
Less: Costs and impairment charge
associated with sublease of corporate headquarters
—
—
3,272
—
Less: Intangible amortization
41
—
154
—
Less: Severance costs
417
—
1,358
—
Less: Transaction costs
133
1,579
1,521
1,922
General and administrative, non-GAAP
11,515
10,001
44,669
37,335
General and administrative as % total
revenue, GAAP
34
%
42
%
39
%
47
%
General and administrative as % total
revenue, non-GAAP
23
%
25
%
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 for
percentages and share and per share amounts)
Three Months
Ended
December 31,
2022
Three Months
Ended
December 31,
2021
Year Ended
December 31,
2022
Year Ended
December 31,
2021
Operating loss reconciliation:
Operating loss, GAAP
$
(10,912
)
$
(6,837
)
$
(51,664
)
$
(27,976
)
Plus: Stock-based compensation expense and
related payroll tax expense (1)
11,041
9,384
46,865
34,269
Plus: Charitable donation of Class A
common stock
—
—
1,406
13,107
Plus: Costs and impairment charge
associated with sublease of corporate headquarters
—
—
3,272
—
Plus: Non-cash capitalized software
impairment
—
—
475
—
Plus: Capitalized internal-use software
and intangible amortization
1,608
166
5,446
579
Plus: Severance costs
1,181
—
2,359
—
Plus: Transaction costs
133
2,491
1,600
2,834
Operating income, non-GAAP
3,051
5,204
9,759
22,813
Operating margin, GAAP
(22
) %
(17
) %
(28
) %
(19
) %
Operating margin, non-GAAP
6
%
13
%
5
%
15
%
Net loss reconciliation:
Net loss, GAAP
(8,226
)
(2,071
)
(45,968
)
(42,273
)
Plus: Stock-based compensation expense and
related payroll tax expense (1)
11,041
9,384
46,865
34,269
Plus: Charitable donation of Class A
common stock
—
—
1,406
13,107
Plus: Costs and impairment charge
associated with sublease of corporate headquarters
—
—
3,272
—
Plus: Non-cash capitalized software
impairment
—
—
475
—
Plus: Capitalized internal-use software
and intangible amortization
1,608
166
5,446
579
Plus: Change in fair value of warrant
liability
—
—
—
18,930
Plus: Severance costs
1,181
—
2,359
—
Plus: Transaction costs
133
2,491
1,600
2,834
Less: Transaction-related deferred income
tax benefit
(98
)
(4,896
)
(1,519
)
(4,896
)
Net income, non-GAAP
5,639
5,074
13,936
22,550
Fully diluted net loss per share
attributable to Class A and Class B common stockholders, GAAP
$
(0.05
)
$
(0.01
)
$
(0.28
)
$
(0.34
)
Fully diluted weighted average Class A and
Class B common shares outstanding, GAAP
163,207,461
154,590,978
161,303,397
123,822,838
Fully diluted net income per share
attributable to Class A and Class B common stockholders,
non-GAAP
$
0.03
$
0.03
$
0.08
$
0.12
Fully diluted Class A and Class B common
shares outstanding, non-GAAP
179,975,869
185,476,922
182,950,753
180,589,207
(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
December 31,
Year Ended
December 31,
2022
2021
2022
2021
Net cash (used in) provided by operating
activities
$
(54
)
$
(9,956
)
$
2,344
$
16,253
Purchase of property and equipment
(63
)
(69
)
(517
)
(393
)
Capitalization of internally developed
software
(1,483
)
(581
)
(8,480
)
(1,452
)
Non-GAAP free cash flow
$
(1,600
)
$
(10,606
)
$
(6,653
)
$
14,408
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version on businesswire.com: https://www.businesswire.com/news/home/20230222005742/en/
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