Full-Year 2023 Revenue of $228.3 million, up
23% Year-over-Year
Fourth-Quarter Revenue of $63.0 million, up 27%
Year-over-Year
Olo Inc. (NYSE:OLO), a leading restaurant technology provider,
today announced financial results for the fourth-quarter and
full-year ended December 31, 2023.
“We finished 2023 on a strong note by surpassing the high-end of
both fourth-quarter revenue and non-GAAP operating income guidance,
alongside notable enterprise deployments and continued product and
platform innovation,” said Noah Glass, Olo’s Founder and CEO. “In
2024, we’re focused on delivering balanced growth with increased
profitability, while making strategic investments in product
development, go-to-market, and data-driven initiatives to help
brands improve hospitality through technology. With our scale,
reliability, and modularity, Olo is uniquely positioned to enable
restaurants to drive sales, do more with less, and make every guest
feel like a regular.”
Fourth-Quarter Financial and Other Highlights
- Total revenue increased 27% year-over-year to $63.0
million.
- Total platform revenue increased 27% year-over-year to $61.9
million.
- Gross profit increased 6% (1) year-over-year to $36.4 million,
and was 58% of total revenue.
- Non-GAAP gross profit increased 10% (1) year-over-year to $40.8
million, and was 65% of total revenue.
- Operating loss was $20.5 million, or (33)% of total revenue,
compared to operating loss of $10.9 million, or (22)% of total
revenue, a year ago.
- Non-GAAP operating income was $6.8 million, or 11% of total
revenue compared to $3.1 million, or 6% of total revenue, a year
ago.
- Net loss was $15.7 million or $(0.10) per diluted share,
compared to net loss of $8.2 million or $(0.05) per diluted share a
year ago.
- Non-GAAP net income was $8.5 million or $0.05 per diluted
share, compared to non-GAAP net income of $4.4 million or $0.02 per
diluted share a year ago.
- Cash, cash equivalents, and short- and long-term investments
totaled $388.3 million as of December 31, 2023.
- Total shares repurchased were approximately 2.8 million for
approximately $14.9 million, bringing total repurchases under the
program to 11.5 million shares for approximately $77.9 million and
leaving approximately $22.1 million remaining on the
authorization.
- Average revenue per unit (ARPU) increased 38% year-over-year,
and increased 6% sequentially, to approximately $787.
- Dollar-based net revenue retention (NRR) was approximately
120%.
- Ending active locations were approximately 80,000, up
approximately 3% from the quarter ended September 30, 2023.
- Gross merchandise volume (GMV) was more than $26 billion during
the year ended December 31, 2023, and gross payment volume (GPV)
reached $1 billion during the year ended December 31, 2023.
Fourth-Quarter and Recent Business Highlights
- Waffle House selected Olo to power digital ordering and payment
across all of its locations nationwide. Marking the iconic
restaurant brand’s first significant investment in digital, Waffle
House will leverage Order, Pay—including Borderless accounts—and
Expo to streamline ordering and simplify payments for both guests
and employees at scale.
- A large casual dining company expanded its Olo relationship by
launching Olo Pay across all of their concepts. This is the sixth
consecutive quarter where an existing Olo enterprise customer
expanded into the Company’s payment suite.
- Five Guys, the Company’s first enterprise customer for online
ordering in 2009, expanded its Olo relationship by deploying the
Engage suite’s Guest Data Platform and Marketing modules to access
guest data at scale, increase guest lifetime value, and measure
campaign effectiveness to drive sales.
- Olo continued to drive strong adoption in the emerging
enterprise segment, which the Company defines as brands with five
to 99 locations. Olo deployed multiple modules with brands like
Barberitos, Carrot Express, Smalls Sliders, and Texas de
Brazil.
- Olo announced product enhancements to better serve its
customers, many of which were showcased in Olo’s 2023 Winter
Release event, which can be viewed at olo.com/quarterly-release.
Olo announced the expansion of Borderless, Olo’s seamless guest
account log-in and checkout functionality, to all customers on
Serve, enabling more restaurants to meet the online ordering
expectations of today’s digital guests. Additional product
enhancements were released this quarter across all three product
suites, Order, Pay, and Engage, to help brands unlock new revenue
streams, encourage guest engagement, and simplify the ordering
experience.
Financial Outlook
As of February 21, 2024, Olo is issuing the following outlook
for the first-quarter of 2024 and fiscal-year 2024:
For the first-quarter of 2024, Olo expects to report:
- Revenue in the range of $64.0 million to $64.5 million;
and
- Non-GAAP operating income in the range of $5.1 million to $5.5
million.
For the fiscal-year 2024, Olo expects to report:
- Revenue in the range of $269.0 million to $272.0 million;
and
- Non-GAAP operating income in the range of $22.0 million to
$24.0 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 inaccuracies in our assumptions and certain risk
factors, many of which are beyond Olo’s control. Olo assumes 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, February 21, 2024 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 X (formerly 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 | Hospitality at Scale™
Olo (NYSE: OLO) is a leading restaurant technology provider with
ordering, payment, and guest engagement solutions that help brands
increase orders, streamline operations, and improve the guest
experience. Each day, Olo processes millions of orders on its open
SaaS platform, gathering the right data from each touchpoint into a
single source—so restaurants can better understand and better serve
every guest on every channel, every time. Approximately 700
restaurant brands trust Olo and its network of more than 300
integration partners to innovate on behalf of the restaurant
community, accelerating technology’s positive impact and creating a
world where every restaurant guest feels 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:
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 of our Class A common stock
(non-cash expense), certain litigation-related expenses (which
consist of legal and other professional fees associated with
litigation-related matters which are not indicative of our core
operations and are not part of our normal course of business),
costs and impairment charges associated with the sublease of our
former corporate headquarters, loss on disposal of assets, non-cash
capitalized internal-use software impairment, capitalized
internal-use software and intangible amortization (non-cash
expense), restructuring charges, certain severance costs, and
transaction costs (typically incurred within one year of the
related acquisition, as well as the related tax impacts of the
acquisition). Beginning in the second quarter of 2023, we have
included the tax impact of the non-GAAP adjustments in determining
non-GAAP net income. We determined this amount by utilizing a
federal rate plus a net state rate that excluded the impact of net
operating losses, or NOLs, and valuation allowances to calculate a
non-GAAP blended statutory rate, which we then applied to all
non-GAAP adjustments. The prior period non-GAAP net income
presentation has also been revised to include the tax impact of the
non-GAAP adjustments and conforms with the new presentation.
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 our non-GAAP
financial measures because: (1) the amount of such expenses in any
specific period may not directly correlate to the underlying
performance of our business operations and we believe does not
relate to ongoing operational performance; and (2) such expenses
can vary significantly between periods.
Effective January 1, 2023, we began allocating certain
employee-related costs to platform cost of revenues, professional
services and other 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 and 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.
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 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. An active
customer is a specific restaurant brand that utilizes one or more
of our modules in a given quarterly period. 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.
Active locations: We define an active location as a unique
restaurant location that is utilizing one or more of our modules
in, or at the end of, a quarterly period (depending on the module).
Given this definition, 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. Of further
note, not all of our customer locations may choose to utilize our
products, and while we aim to deploy all of a customer’s locations,
not all locations may ultimately deploy.
Gross merchandise volume (GMV): We define GMV as the gross value
of orders processed through our platform.
Gross payment volume (GPV): We define GPV as the gross volume of
payments processed through Olo Pay.
Our management uses GMV and GPV metrics to assess demand for our
products. We also believe GMV and GPV provide investors with useful
supplemental information about the financial performance of our
business, enable comparison of financial results between periods
where certain items may vary independent of business performance,
and allow for greater transparency with respect to key metrics used
by management in operating our business.
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 2024 and the full-year 2024, our future
performance and growth and market opportunities, including new
products and continued module adoption among new and existing
customers, the continued expansion of ARPU, our expectations
regarding the growth of active locations, revenue expectations for
our Order, Pay, and Engage suites, our business strategy, and our
expectations regarding other financial and operational metrics and
advancements in our 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 effects of public health crises,
macroeconomic conditions, including inflation, changes in
discretionary spending, fluctuating interest rates, and overall
market uncertainty; our ability to acquire new customers, have
existing customers (including our emerging enterprise customers)
adopt additional modules, and successfully retain existing
customers; our ability to compete effectively with existing
competitors, new market entrants, and customers generally
developing their own solutions to replace our products; our ability
to develop and release new and successful products and services,
and develop and release successful enhancements, features, and
modifications to our existing products and services; the continued
growth of Olo Pay; the costs and success of our sales and marketing
efforts, and our ability to promote our brand; our long and
unpredictable sales cycles; 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 the 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 and our ability to expand our market
opportunity; 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 durability of the growth we
experienced in the past, including due to the COVID-19 pandemic,
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 Annual Report on Form 10-K for
the year ended December 31, 2023 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,
2023
As of
December 31,
2022
ASSETS
Current assets:
Cash and cash equivalents
$
278,218
$
350,073
Short-term investments
84,331
98,699
Accounts receivable, net
70,264
48,128
Contract assets
412
336
Deferred contract costs
4,743
2,851
Prepaid expenses and other current
assets
12,769
11,687
Total current assets
450,737
511,774
Property and equipment, net
22,055
11,700
Intangible assets, net
17,738
21,698
Goodwill
207,781
207,781
Contract assets, noncurrent
352
241
Deferred contract costs, noncurrent
5,806
4,171
Operating lease right-of-use assets
12,529
15,581
Long-term investments
25,748
2,430
Other assets, noncurrent
73
186
Total assets
$
742,819
$
775,562
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
4,582
$
2,259
Accrued expenses and other current
liabilities
68,240
52,411
Unearned revenue
1,533
2,527
Operating lease liabilities, current
2,859
3,220
Total current liabilities
77,214
60,417
Unearned revenue, noncurrent
57
661
Operating lease liabilities,
noncurrent
13,968
16,827
Other liabilities, noncurrent
109
41
Total liabilities
91,348
77,946
Stockholders’ equity:
Class A common stock, $0.001 par value;
1,700,000,000 shares authorized as of December 31, 2023 and 2022;
108,469,679 and 105,053,030 shares issued and outstanding as of
December 31, 2023 and 2022, respectively. Class B common stock,
$0.001 par value; 185,000,000 shares authorized as of December 31,
2023 and 2022, respectively; 54,891,834 and 57,391,687 shares
issued and outstanding as of December 31, 2023 and 2022,
respectively.
163
162
Preferred stock, $0.001 par value;
20,000,000 shares authorized at December 31, 2023 and 2022,
respectively.
—
—
Additional paid-in capital
867,152
855,249
Accumulated deficit
(215,829
)
(157,542
)
Accumulated other comprehensive loss
(15
)
(253
)
Total stockholders’ equity
651,471
697,616
Total liabilities and stockholders’
equity
$
742,819
$
775,562
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,
2023
2022
2023
2022
Revenue:
Platform
$
61,944
$
48,932
$
225,179
$
181,293
Professional services and other
1,060
849
3,110
4,111
Total revenue
63,004
49,781
228,289
185,404
Cost of revenue:
Platform
25,658
14,293
85,195
52,634
Professional services and other
908
1,192
4,128
5,832
Total cost of revenue
26,566
15,485
89,323
58,466
Gross profit
36,438
34,296
138,966
126,938
Operating expenses:
Research and development
17,108
20,080
73,914
74,203
General and administrative
28,112
16,309
85,098
70,356
Sales and marketing
11,752
8,819
48,190
34,043
Restructuring charges
—
—
6,848
—
Total operating expenses
56,972
45,208
214,050
178,602
Loss from operations
(20,534
)
(10,912
)
(75,084
)
(51,664
)
Other income (expenses), net:
Interest income
5,030
2,482
17,237
4,592
Interest expense
(43
)
(69
)
(208
)
(185
)
Other (expense) income, net
(2
)
1
(3
)
7
Total other income (expenses), net
4,985
2,414
17,026
4,414
Loss before income taxes
(15,549
)
(8,498
)
(58,058
)
(47,250
)
Provision (benefit) for income taxes
197
(272
)
229
(1,282
)
Net loss
$
(15,746
)
$
(8,226
)
$
(58,287
)
$
(45,968
)
Net loss per share attributable to Class A
and Class B common stockholders:
Basic
$
(0.10
)
$
(0.05
)
$
(0.36
)
$
(0.28
)
Diluted
$
(0.10
)
$
(0.05
)
$
(0.36
)
$
(0.28
)
Weighted-average Class A and Class B
common shares outstanding:
Basic
163,942,779
163,207,461
162,993,686
161,303,397
Diluted
163,942,779
163,207,461
162,993,686
161,303,397
OLO INC.
Condensed Consolidated
Statements of Cash Flows (Unaudited)
(in thousands)
Year Ended December 31,
2023
Year Ended December 31,
2022
Operating activities
Net loss
$
(58,287
)
$
(45,968
)
Adjustments to reconcile net loss to net
cash (used in) provided by operating activities:
Depreciation and amortization
10,289
6,020
Stock-based compensation
52,862
46,024
Charitable donation of Class A common
stock
1,136
1,406
Provision for expected credit losses
2,874
283
Change in fair value of warrants
—
—
Non-cash lease expense
2,726
2,388
Deferred income tax benefit
—
(1,519
)
Loss on disposal of assets
38
—
Non-cash impairment charges
—
2,806
Other non-cash operating activities,
net
(2,328
)
(1,135
)
Changes in operating assets and
liabilities:
Accounts receivable
(25,009
)
(5,642
)
Contract assets
(187
)
377
Prepaid expenses and other current and
noncurrent assets
(969
)
(5,191
)
Deferred contract costs
(3,527
)
(839
)
Accounts payable
2,324
(130
)
Accrued expenses and other current
liabilities
15,891
7,308
Operating lease liabilities
(2,905
)
(2,535
)
Unearned revenue
(1,597
)
(1,243
)
Other liabilities, noncurrent
101
(66
)
Net cash (used in) provided by operating
activities
(6,568
)
2,344
Investing activities
Purchases of property and equipment
(93
)
(517
)
Capitalized internal-use software
(13,011
)
(8,480
)
Acquisitions, net of cash acquired
—
(49,241
)
Purchases of investments
(130,428
)
(151,723
)
Sales and maturities of investments
124,042
51,478
Net cash used in investing activities
(19,490
)
(158,483
)
Financing activities
Cash received for employee payroll tax
withholdings
15,528
9,094
Cash paid for employee payroll tax
withholdings
(15,527
)
(9,094
)
Payment of deferred offering costs
—
(423
)
Proceeds from exercise of stock options
and purchases under the employee stock purchase plan
12,282
12,244
Repurchase of common stock
(58,080
)
(20,054
)
Net cash used in financing activities
(45,797
)
(8,233
)
Net decrease in cash and cash
equivalents
(71,855
)
(164,372
)
Cash and cash equivalents, beginning of
year
350,073
514,445
Cash and cash equivalents, end of year
$
278,218
$
350,073
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,
Year Ended December
31,
2023
2022
2023
2022
Gross profit and gross margin
reconciliation (1) :
Platform gross profit, GAAP
$
36,286
$
34,639
$
139,984
$
128,659
Plus: Stock-based compensation expense and
related payroll tax expense
1,712
1,197
7,079
5,583
Plus: Capitalized internal-use software
and intangible amortization
2,532
1,226
8,351
3,954
Plus: Certain severance costs
—
160
—
177
Platform gross profit, non-GAAP
40,530
37,222
155,414
138,373
Services gross profit, GAAP
152
(343
)
(1,018
)
(1,721
)
Plus: Stock-based compensation expense and
related payroll tax expense
148
67
699
685
Plus: Certain severance costs
—
140
—
176
Services gross profit, non-GAAP
300
(136
)
(319
)
(860
)
Total gross profit, GAAP
36,438
34,296
138,966
126,938
Total gross profit, non-GAAP
40,830
37,086
155,095
137,513
Platform gross margin, GAAP
59
%
71
%
62
%
71
%
Platform gross margin, non-GAAP
65
%
76
%
69
%
76
%
Services gross margin, GAAP
14
%
(40
)%
(33
)%
(42
)%
Services gross margin, non-GAAP
28
%
(16
)%
(10
)%
(21
)%
Total gross margin, GAAP
58
%
69
%
61
%
68
%
Total gross margin, non-GAAP
65
%
74
%
68
%
74
%
Three Months Ended
December 31,
Year Ended December
31,
2023
2022
2023
2022
Sales and marketing reconciliation (1)
:
Sales and marketing, GAAP
$
11,752
$
8,819
$
48,190
$
34,043
Less: Stock-based compensation expense and
related payroll tax expense
1,675
1,235
7,981
5,625
Less: Intangible amortization
341
341
1,365
1,338
Less: Certain severance costs
—
204
121
316
Less: Transaction costs
—
—
—
79
Sales and marketing, non-GAAP
9,736
7,039
38,723
26,685
Sales and marketing as % total revenue,
GAAP
19
%
18
%
21
%
18
%
Sales and marketing as % total revenue,
non-GAAP
15
%
14
%
17
%
14
%
Three Months Ended
December 31,
Year Ended December
31,
2023
2022
2023
2022
Research and development reconciliation
(1) :
Research and development, GAAP
$
17,108
$
20,080
$
73,914
$
74,203
Less: Stock-based compensation expense and
related payroll tax expense
3,378
3,704
15,648
14,318
Less: Non-cash capitalized software
impairment
—
—
—
475
Less: Certain severance costs
—
260
—
332
Research and development, non-GAAP
13,730
16,116
58,266
59,078
Research and development as % total
revenue, GAAP
27
%
40
%
32
%
40
%
Research and development as % total
revenue, non-GAAP
22
%
32
%
26
%
32
%
Three Months Ended
December 31,
Year Ended December
31,
2023
2022
2023
2022
General and administrative
reconciliation (1) :
General and administrative, GAAP
$
28,112
$
16,309
$
85,098
$
70,356
Less: Stock-based compensation expense and
related payroll tax expense
4,749
4,838
21,259
20,654
Less: Charitable donation of Class A
common stock
—
—
1,136
1,406
Less: Certain litigation-related
expenses
12,787
—
21,590
—
Less: Costs and impairment charge
associated with sublease of former corporate headquarters
—
—
—
3,272
Less: Loss on disposal of assets
—
—
38
—
Less: Intangible amortization
40
41
162
154
Less: Certain severance costs
—
417
709
1,358
Less: Transaction costs
—
133
358
1,521
General and administrative, non-GAAP
10,536
10,880
39,846
41,991
General and administrative as % total
revenue, GAAP
45
%
33
%
37
%
38
%
General and administrative as % total
revenue, non-GAAP
17
%
22
%
17
%
23
%
(1) Effective January 1, 2023, we began allocating certain
employee-related costs to platform cost of revenues, professional
services and other 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.
Three Months Ended
December 31,
Year Ended December
31,
2023
2022
2023
2022
Operating loss reconciliation:
Operating loss, GAAP
$
(20,534
)
$
(10,912
)
$
(75,084
)
$
(51,664
)
Plus: Stock-based compensation expense and
related payroll tax expense
11,662
11,041
52,666
46,865
Plus: Charitable donation of Class A
common stock
—
—
1,136
1,406
Plus: Certain litigation-related
expenses
12,787
—
21,590
—
Plus: Costs and impairment charge
associated with sublease of former corporate headquarters
—
—
—
3,272
Plus: Loss on disposal of assets
—
—
38
—
Plus: Non-cash capitalized software
impairment
—
—
—
475
Plus: Capitalized internal-use software
and intangible amortization
2,913
1,608
9,878
5,446
Plus: Restructuring charges
—
—
6,848
—
Plus: Certain severance costs
—
1,181
830
2,359
Plus: Transaction costs
—
133
358
1,600
Operating income, non-GAAP
6,828
3,051
18,260
9,759
Operating margin, GAAP
(33
)%
(22
)%
(33
)%
(28
)%
Operating margin, non-GAAP
11
%
6
%
8
%
5
%
Three Months Ended
December 31,
Year Ended December
31,
2023
2022
2023
2022
Net loss reconciliation:
Net loss, GAAP
$
(15,746
)
$
(8,226
)
$
(58,287
)
$
(45,968
)
Plus: Stock-based compensation expense and
related payroll tax expense
11,662
11,041
52,666
46,865
Plus: Charitable donation of Class A
common stock
—
—
1,136
1,406
Plus: Certain litigation-related
expenses
12,787
—
21,590
—
Plus: Costs and impairment charge
associated with sublease of former corporate headquarters
—
—
—
3,272
Plus: Loss on disposal of assets
—
—
38
—
Plus: Non-cash capitalized software
impairment
—
—
—
475
Plus: Capitalized internal-use software
and intangible amortization
2,913
1,608
9,878
5,446
Plus: Restructuring charges
—
—
6,848
—
Plus: Certain severance costs
—
1,181
830
2,359
Plus: Transaction costs
—
133
358
1,600
Less: GAAP acquisition-related deferred
income tax benefit (1)
—
(98
)
—
(1,519
)
Less: Tax impact of non-GAAP adjustments
(2)
(3,159
)
(1,208
)
(9,275
)
(3,486
)
Net income, non-GAAP
8,457
4,431
25,782
10,450
Fully diluted net loss per share
attributable to Class A and Class B common stockholders, GAAP
$
(0.10
)
$
(0.05
)
$
(0.36
)
$
(0.28
)
Fully diluted weighted average Class A and
Class B common shares outstanding, GAAP
163,942,779
163,207,461
162,993,686
161,303,397
Fully diluted net income per share
attributable to Class A and Class B common stockholders,
non-GAAP
$
0.05
$
0.02
$
0.15
$
0.06
Fully diluted Class A and Class B common
shares outstanding, non-GAAP
174,399,425
179,975,869
176,822,053
182,950,753
(1) As a result of our prior acquisitions, we recognized deferred
tax liabilities relating to the basis differences for acquired
intangible assets. The recording of these deferred tax liabilities
resulted in a reversal of our valuation allowance which is included
in the GAAP provision for income taxes.
(2) We utilized a federal rate plus a net
state rate that excluded the impact of NOLs and valuation
allowances to calculate our non-GAAP blended statutory rate of
26.93% and 26.27% for the years ended December 31, 2023 and 2022,
respectively.
OLO INC.
Non-GAAP Free Cash Flow
(Unaudited)
(in thousands)
Three Months Ended
December 31,
Year Ended December
31,
2023
2022
2023
2022
Net cash provided by (used in) operating
activities
$
5,815
$
(54
)
$
(6,568
)
$
2,344
Purchase of property and equipment
(93
)
(63
)
(93
)
(517
)
Capitalization of internally developed
software
(2,988
)
(1,483
)
(13,011
)
(8,480
)
Non-GAAP free cash flow
$
2,734
$
(1,600
)
$
(19,672
)
$
(6,653
)
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version on businesswire.com: https://www.businesswire.com/news/home/20240221978931/en/
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