First Quarter Revenue up 22% Year-over-Year
Driven by Continued ARPU Expansion and Increased Transaction
Volume
Olo Inc. (NYSE:OLO) (“Olo” or the “Company”), a leading open
SaaS platform for restaurants, today announced financial results
for the first quarter ended March 31, 2023.
“During the first quarter, we generated $52.2 million in total
revenue, a 22% increase year-over-year, as our platform saw
continued momentum in average revenue per unit growth with
increased module adoption within our existing customer base and new
customers deploying with multi-modules,” said Noah Glass, Olo’s
Founder and CEO.
“We’re proud of our results this quarter and believe the first
quarter updates are indicative of the role Olo will continue to
play in shaping the restaurant of the future for our customers and
the strong business opportunity ahead as the industry continues on
a path to 100% digital, or every transaction on- and off-premise
being a digital transaction,” concluded Mr. Glass.
First Quarter Financial and Other Highlights
- Total revenue increased 22% year-over-year to $52.2
million.
- Gross profit increased 13%(1) year-over-year to $33.5 million,
and was 64% of total revenue.
- Non-GAAP gross profit increased 16%(1) year-over-year to $37.2
million, and was 71% of total revenue.
- Operating loss was $17.1 million.
- Non-GAAP operating income was $1.2 million.
- Net loss was $13.7 million or $(0.08) per share, compared to a
net loss of $11.5 million or $(0.07) per share a year ago.
- Non-GAAP net income was $4.6 million or $0.03 per share,
compared to non-GAAP net income of $1.7 million or $0.01 per share
a year ago.
- Cash, cash equivalents and short- and long-term investments
totaled $438.3 million as of March 31, 2023.
- Total shares repurchased were approximately 2.7 million for
approximately $20.0 million, net of broker commissions.
- Average revenue per unit (ARPU) increased 22% year-over-year,
and increased 11% sequentially to approximately $632.
- Ending active locations decreased 7% year-over-year to
approximately 76,000.
- Dollar-based net revenue retention (NRR) was approximately
114%.
First Quarter and Recent Business Highlights
- Olo had solid wins within the enterprise segment, expanding
relationships within its existing customer base, including Noodles
& Co, a fast-casual restaurant with over 300 locations,
launching Olo Pay across both their main ordering and catering
digital channels and Denny’s, a casual-dining chain with over 1400
locations, launching both the Marketing and Guest Data Platform, or
GDP, modules. Olo also welcomed Shipley Do-Nuts, a quick service
donut shop and coffeehouse chain with over 300 locations. Shipley
represented a multi-module deployment launching with Ordering,
Dispatch, Rails, Network, and Olo Pay modules
- Olo announced a strategic partnership with Adyen, the global
financial technology platform of choice for leading businesses, to
enable card-present capabilities for Olo Pay and embedded financial
services in the future.
- Olo evolved its open SaaS network of over 300 integrated
partners by launching Olo Connect, a select group of its partners
primed to deliver a best-in-class dining experience powered by the
Olo platform. Built to meet the evolving needs of the industry, Olo
Connect empowers Olo’s customers with actionable insights to
identify the best, most reliable digital solutions to build their
technology stacks.
- Olo implemented product enhancements to better serve its
customers, many of which were showcased in Olo’s 2023 Spring
Product Release, which may be viewed at olo.com/quarterly-release.
Notably, Olo announced enhanced AI-driven kitchen capacity
management and open check and pay-at-table functionality for
on-premise digital ordering,
- Olo earned the #1 Most Innovative Company in the dining
category on Fast Company’s prestigious annual list of the World’s
Most Innovative Companies for 2023, citing Olo Pay and its
Borderless account feature.
- Olo debuted its vision of the Restaurant of the Future in a
widely shared video and announced its 2023 Olo for Good annual
grant cycle recipients through its donor advised fund (DAF)
partner, Tides Foundation. The Restaurant of the Future video may
be viewed by visiting our “Investor Relations” website at
investors.olo.com and more information about the grant recipients
can be found at olo.com/esg.
Financial Outlook
As of May 9, 2023, Olo is issuing the following outlook for the
second quarter of 2023 and fiscal year 2023:
For the second quarter of 2023, Olo expects to report:
- Revenue in the range of $53.0 million to $53.5 million;
and
- Non-GAAP operating income in the range of $2.0 million to $2.4
million.
For the fiscal year 2023, Olo expects to report:
- Revenue in the range of $215.8 million to $217.3 million;
and
- Non-GAAP operating income in the range of $12.0 million to
$13.2 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.
(1) Prior period amounts including GAAP and non-GAAP gross
profit and gross margin have been reclassified to conform with the
current year presentation. An explanation of our non-GAAP financial
measures are also included below under the heading “Non-GAAP
Financial Measures and Other Metrics.” An explanation of the
reclassification is included as a footnote to the reconciliation of
GAAP to non-GAAP financial measures which is provided at the end of
this press release.
Webcast and Conference Call Information
Olo will host a conference call today, May 9, 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 generally accepted accounting principles in the
United States, 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 or compared to other registrants’ similarly named non-GAAP
financial measures and key performance indicators.
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, certain litigation-related expenses (which consist
primarily of settlement, legal, and other professional fees related
to certain litigation matters, and not related to the day-to-day
operations of Olo’s core business of serving our clients), loss on
disposal of assets, non-cash capitalized software impairment,
intangible and internal-use software amortization, certain
severance costs, and transaction costs (incurred within one year of
the related acquisition, as well as the related income tax impacts
of the acquisition).
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.
Effective January 1, 2023, we began allocating certain
employee-related costs to platform cost of revenues, sales and
marketing, and research and development expenses. Previously, such
costs had been presented within general and administrative expenses
on our condensed consolidated statement of operations. These costs
are allocated based on each department’s proportionate share of
total employee headcount. We determined that these changes would
better reflect industry practice and provide more meaningful
information as well as increased transparency of our operations.
Prior period amounts have been reclassified to conform with the
current year presentation. Such reclassifications had no effect on
previously reported operating loss, net loss, or accumulated
deficit.
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, as well as provides a base to expand usage
of our modules. Active locations in any one quarter may not reflect
(i) the future impact of new customer wins as it can take some time
for their locations to go live with our platform, or (ii) the
customers who have indicated their intent to reduce or terminate
their use of our platform in future periods.
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
second-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, and
our expectations regarding advancements in our industry (including
our vision related to the restaurant of the future). 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: macroeconomic conditions, including
inflation, fluctuating interest rates, and overall market
uncertainty; our ability to acquire new customers, have existing
customers adopt additional modules, and successfully retain
existing customers; our ability to compete effectively with
existing competitors and new market entrants; 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 and the success of any new products;
the costs and success of our sales and marketing efforts, and our
ability to promote our brand; our ability to identify, recruit, and
retain skilled personnel; our ability to effectively manage our
growth, including any international expansion; our ability to
realize the anticipated benefits of past or future investments,
strategic transactions, or acquisitions, and risk that the
integration of these acquisitions may disrupt our business and
management; our ability to protect our intellectual property rights
and any costs associated therewith; the growth rates of the markets
in which we compete; 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; the effects of
the COVID-19 pandemic, including the emergence of any new variants,
or other public health crises; the durability of the growth we have
experienced in the past due to the COVID-19 pandemic and the
associated government-imposed restrictions on guest preferences for
digital ordering and customer adoption of multiple modules; 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.
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 quarter ended March 31, 2023 that will be filed following this
earnings release, our Annual Report on Form 10-K for the year ended
December 31, 2022, 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 March 31,
2023
As of December 31,
2022
ASSETS
Current assets:
Cash and cash equivalents
$
331,481
$
350,073
Short-term investments
90,726
98,699
Accounts receivable, net of expected
credit losses of $1,239 and $612, respectively
50,381
48,128
Contract assets
431
336
Deferred contract costs
3,635
2,851
Prepaid expenses and other current
assets
11,752
11,687
Total current assets
488,406
511,774
Property and equipment, net of accumulated
depreciation and amortization of $5,324 and $4,328,
respectively
14,971
11,700
Intangible assets, net of accumulated
amortization of $5,294 and $4,304, respectively
20,708
21,698
Goodwill
207,781
207,781
Contract assets, noncurrent
329
241
Deferred contract costs, noncurrent
4,696
4,171
Operating lease right-of-use assets
14,458
15,581
Long-term investments
16,082
2,430
Other assets, noncurrent
106
186
Total assets
$
767,537
$
775,562
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
1,027
$
2,259
Accrued expenses and other current
liabilities
61,860
52,411
Unearned revenue
2,170
2,527
Operating lease liabilities, current
2,766
3,220
Total current liabilities
67,823
60,417
Unearned revenue, noncurrent
2,002
661
Operating lease liabilities,
noncurrent
16,132
16,827
Other liabilities, noncurrent
33
41
Total liabilities
85,990
77,946
Stockholders’ equity:
Class A common stock, $0.001 par value;
1,700,000,000 shares authorized at March 31, 2023 and December 31,
2022; 104,114,669 and 105,053,030 shares issued and outstanding at
March 31, 2023 and December 31, 2022, respectively. Class B common
stock, $0.001 par value; 185,000,000 shares authorized at March 31,
2023 and December 31, 2022; 57,535,360 and 57,391,687 shares issued
and outstanding at March 31, 2023 and December 31, 2022,
respectively
162
162
Preferred stock, $0.001 par value;
20,000,000 shares authorized at March 31, 2023 and December 31,
2022
—
—
Additional paid-in capital
852,689
855,249
Accumulated deficit
(171,248
)
(157,542
)
Accumulated other comprehensive loss
(56
)
(253
)
Total stockholders’ equity
681,547
697,616
Total liabilities and stockholders’
equity
$
767,537
$
775,562
OLO INC.
Condensed Consolidated
Statements of Operations (Unaudited)
(in thousands, except share
and per share amounts)
Three Months Ended
March 31,
2023
2022
Revenue:
Platform
$
51,371
$
41,466
Professional services and other
869
1,290
Total revenue
52,240
42,756
Cost of revenue:
Platform (1)
17,613
11,241
Professional services and other (1)
1,136
1,819
Total cost of revenue
18,749
13,060
Gross profit
33,491
29,696
Operating expenses:
Research and development (1)
20,473
17,156
General and administrative (1)
17,210
17,249
Sales and marketing (1)
12,881
8,193
Total operating expenses
50,564
42,598
Loss from operations
(17,073
)
(12,902
)
Other income, net:
Interest income
3,454
52
Interest expense
(69
)
—
Other income, net
—
6
Total other income, net
3,385
58
Loss before income taxes
(13,688
)
(12,844
)
Provision (benefit) for income taxes
18
(1,335
)
Net loss
$
(13,706
)
$
(11,509
)
Net loss per share attributable to Class A
and Class B common stockholders:
Basic
$
(0.08
)
$
(0.07
)
Diluted
$
(0.08
)
$
(0.07
)
Weighted-average Class A and Class B
common shares outstanding:
Basic
161,691,506
159,190,371
Diluted
161,691,506
159,190,371
_________________
(1) To conform the prior years presented
to the current year presentation, $0.7 million was reclassified
from general and administrative expense, of which $0.2 million was
included in platform cost of revenue, $0.1 million was included in
professional service and other cost of revenue, $0.1 million was
included in sales and marketing expenses, and $0.3 million was
included in research and development expenses. Such
reclassifications had no effect on previously reported operating
loss, net loss, or accumulated deficit. See “Note 2—Significant
Accounting Policies” to our condensed consolidated financial
statements included in Part I, Item 1 of the Quarterly Report on
Form 10-Q for the period ended March 31, 2023 for additional
information on the reclassifications.
OLO INC.
Condensed Consolidated
Statements of Cash Flows (Unaudited)
(in thousands)
Three Months Ended
March 31, 2023
Three Months Ended
March 31, 2022
Operating activities
Net loss
$
(13,706
)
$
(11,509
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
2,148
1,109
Stock-based compensation
14,044
11,708
Provision for expected credit losses
725
248
Non-cash lease expense
797
552
Deferred income tax benefit
—
(1,421
)
Loss on disposal of assets
38
—
Non-cash impairment charges
—
475
Other non-cash operating activities,
net
(770
)
—
Changes in operating assets and
liabilities:
Accounts receivable
(2,979
)
(4,888
)
Contract assets
(182
)
(40
)
Prepaid expenses and other current
assets
430
(3,515
)
Deferred contract costs
(1,308
)
242
Accounts payable
(1,230
)
909
Accrued expenses and other current
liabilities
9,098
4,186
Operating lease liabilities
(835
)
(613
)
Unearned revenue
984
1,687
Other liabilities, noncurrent
(7
)
(19
)
Net cash provided by (used in) operating
activities
7,247
(889
)
Investing activities
Purchases of property and equipment
—
(76
)
Capitalized internal-use software
(3,382
)
(2,462
)
Acquisitions, net of cash acquired
—
(49,308
)
Purchases of investments
(38,715
)
—
Sales and maturities of investments
34,002
—
Net cash used in investing activities
(8,095
)
(51,846
)
Financing activities
Cash received for employee payroll tax
withholdings
2,834
845
Cash paid for employee payroll tax
withholdings
(2,416
)
(845
)
Payment of deferred offering costs
—
(226
)
Proceeds from exercise of stock
options
1,890
2,249
Repurchase of common stock
(20,052
)
—
Net cash (used in) provided by financing
activities
(17,744
)
2,023
Net decrease in cash and cash
equivalents
(18,592
)
(50,712
)
Cash and cash equivalents, beginning of
period
350,073
514,445
Cash and cash equivalents, end of
period
$
331,481
$
463,733
OLO INC.
Reconciliation of GAAP to
Non-GAAP Results (Unaudited)
(in thousands, except for
percentages and share and per share amounts)
Three Months Ended
March 31,
2023
2022
Gross profit and gross margin
reconciliation (1) :
Platform gross profit, GAAP
$
33,758
$
30,225
Plus: Stock-based compensation expense and
related payroll tax expense
1,899
1,552
Plus: Capitalized internal-use software
and intangible amortization
1,650
628
Platform gross profit, non-GAAP
37,307
32,405
Services gross profit, GAAP
(267
)
(529
)
Plus: Stock-based compensation expense and
related payroll tax expense
198
259
Services gross profit, non-GAAP
(69
)
(270
)
Total gross profit, GAAP
33,491
29,696
Total gross profit, non-GAAP
37,238
32,135
Platform gross margin, GAAP
66
%
73
%
Platform gross margin, non-GAAP
73
%
78
%
Services gross margin, GAAP
(31
) %
(41
) %
Services gross margin, non-GAAP
(8
) %
(21
) %
Total gross margin, GAAP
64
%
69
%
Total gross margin, non-GAAP
71
%
75
%
Sales and marketing reconciliation (1)
:
Sales and marketing, GAAP
12,881
8,193
Less: Stock-based compensation expense and
related payroll tax expense
2,567
1,620
Less: Intangible amortization
341
301
Less: Certain severance costs
121
—
Less: Transaction costs
—
79
Sales and marketing, non-GAAP
9,852
6,193
Sales and marketing as % total revenue,
GAAP
25
%
19
%
Sales and marketing as % total revenue,
non-GAAP
19
%
14
%
Research and development reconciliation
(1) :
Research and development, GAAP
20,473
17,156
Less: Stock-based compensation expense and
related payroll tax expense
4,751
3,551
Less: Non-cash capitalized software
impairment
—
475
Research and development, non-GAAP
15,722
13,130
Research and development as % total
revenue, GAAP
39
%
40
%
Research and development as % total
revenue, non-GAAP
30
%
31
%
General and administrative
reconciliation (1) :
General and administrative, GAAP
17,210
17,249
Less: Stock-based compensation expense and
related payroll tax expense
5,082
5,096
Less: Certain litigation-related
expenses
884
—
Less: Loss on disposal of assets
38
—
Less: Intangible amortization
41
31
Less: Certain severance costs
709
—
Less: Transaction costs
36
1,056
General and administrative, non-GAAP
10,420
11,066
General and administrative as % total
revenue, GAAP
33
%
40
%
General and administrative as % total
revenue, non-GAAP
20
%
26
%
_________________
(1) Effective January 1, 2023, we began
allocating certain employee-related costs to platform cost of
revenues, sales and marketing, and research and development
expenses. Previously, such costs had been presented within general
and administrative expenses on our condensed consolidated statement
of operations. These costs are allocated based on each department’s
proportionate share of total employee headcount. We determined that
these changes would better reflect industry practice and provide
more meaningful information as well as increased transparency of
our operations. Prior period amounts have been reclassified to
conform with the current year presentation. Such reclassifications
had no effect on previously reported operating loss, net loss, or
accumulated deficit.
OLO INC.
Reconciliation of GAAP to
Non-GAAP Results (Unaudited)
(in thousands, except for
percentages and share and per share amounts)
Three Months Ended
March 31,
2023
2022
Operating income (loss)
reconciliation:
Operating loss, GAAP
$
(17,073
)
$
(12,902
)
Plus: Stock-based compensation expense and
related payroll tax expense
14,497
12,078
Plus: Certain litigation-related
expenses
884
—
Plus: Loss on disposal of assets
38
—
Plus: Non-cash capitalized software
impairment
—
475
Plus: Capitalized internal-use software
and intangible amortization
2,032
960
Plus: Certain severance costs
830
—
Plus: Transaction costs
36
1,135
Operating income, non-GAAP
1,244
1,746
Operating margin, GAAP
(33
) %
(30
) %
Operating margin, non-GAAP
2
%
4
%
Net income (loss)
reconciliation:
Net loss, GAAP
(13,706
)
(11,509
)
Plus: Stock-based compensation expense and
related payroll tax expense
14,497
12,078
Plus: Certain litigation-related
expenses
884
—
Plus: Loss on disposal of assets
38
—
Plus: Non-cash capitalized software
impairment
—
475
Plus: Capitalized internal-use software
and intangible amortization
2,032
960
Plus: Certain severance costs
830
—
Plus: Transaction costs
36
1,135
Less: Transaction-related deferred income
tax benefit
—
(1,421
)
Net income, non-GAAP
4,611
1,718
Fully diluted net loss per share
attributable to Class A and Class B common stockholders, GAAP
$
(0.08
)
$
(0.07
)
Fully diluted weighted average Class A and
Class B common shares outstanding, GAAP
161,691,506
159,190,371
Fully diluted net income per share
attributable to Class A and Class B common stockholders,
non-GAAP
$
0.03
$
0.01
Fully diluted Class A and Class B common
shares outstanding, non-GAAP
178,301,862
183,263,032
OLO INC.
Non-GAAP Free Cash Flow
(Unaudited)
(in thousands)
Three Months Ended
March 31,
2023
2022
Net cash provided (used) by operating
activities
$
7,247
$
(889
)
Purchase of property and equipment
—
(76
)
Capitalization of internal-use
software
(3,382
)
(2,462
)
Non-GAAP free cash flow
$
3,865
$
(3,427
)
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