Second Quarter Revenue Grew 27% Year-over-Year
on Continued Growth in New Brands, Increased Module Adoption, and
Increased Transaction Volume
Olo Inc. (NYSE:OLO), a leading open SaaS platform for
restaurants that enables hospitality at every touchpoint, today
announced financial results for the second quarter ended June 30,
2022.
“We delivered solid second quarter results. We generated $45.6
million in total revenue, a 27% increase year-over-year, as our
platform supported continued growth in new brands, increased module
adoption within our existing customer base, and increased
transaction volume,” said Noah Glass, Olo’s Founder and CEO.
“We’re encouraged by the underlying trends in our business in
support of Olo’s 100x revenue opportunity as we remain highly
focused on helping our brands to thrive and gain share through the
industry’s digital transformation,” concluded Mr. Glass.
Second Quarter Financial and Other Highlights
- Total revenue increased 27% year-over-year to $45.6
million.
- Platform revenue increased 29% year-over-year to $44.5
million.
- Gross profit increased 10% year-over-year to $31.4 million, and
was 69% of total revenue.
- Non-GAAP gross profit increased 15% year-over-year to $34.0
million, and was 75% of total revenue.
- Operating loss was $11.9 million.
- Non-GAAP operating income was $2.0 million.
- Net loss was $11.7 million or $0.07 per share, compared to a
net loss of $2.4 million or $0.02 per share a year ago.
- Non-GAAP net income was $2.2 million or $0.01 per share,
compared to non-GAAP net income of $6.5 million or $0.04 per share
a year ago.
- Cash, cash equivalents and short- and long-term investments
totaled $464.7 million as of June 30, 2022.
- Average revenue per unit (ARPU) increased 12% year-over-year,
and increased 5% sequentially to approximately $544.
- Ending active locations increased 11% year-over-year to
approximately 82,000.
- Dollar-based net revenue retention (NRR) was approximately
106%.
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.”
Second Quarter and Recent Business Highlights
- Olo deployed a number of leading brands onto the platform
across all service-models, including quick service, fast-casual,
fine dining, virtual brands, as well as welcomed a number of
convenience stores. Notably, Freddy’s Frozen Custard &
Steakburgers, a fast casual restaurant with hundreds of locations,
deployed Olo’s full stack of digital ordering solutions, including
Ordering, Dispatch, Rails, Network, and Olo Pay. Freddy’s
represents one of Olo’s newest and largest customers to adopt Olo
Pay.
- Olo expanded relationships within its existing customer base,
increasing product adoption across several Olo product suites.
Brands such as California Fish Grill, CiCis Pizza, and Duck Donuts
expanded their usage of Ordering solutions, Twin Peaks and
Whataburger expanded their usage of Delivery Enablement solutions,
O’Charley’s Restaurant + Bar and Sprinkles adopted Guest Engagement
solutions, and On the Border and Smokey Bones adopted
Front-of-House solutions.
- Olo hosted its first Quarterly Release Event, showcasing
features that empower brands to grow by delivering the best
hospitality to their guests. The release included highlights
related to Borderless Olo Pay, Sync listings management, scheduled
menu changes and more, which may be viewed at
https://www.olo.com/quarterly-release.
- Olo earned Best Feature Set and Best Relationship from the
TrustRadius Best of Summer Awards. Olo is honored to support
restaurant brands and looks forward to delivering on the high
expectations brands set for the Company.
- Olo furthered its commitment to being an open platform by
growing its diverse technology partner network through completion
of its first Ordering module integration with QSR Automations, a
market leader in Kitchen Display Systems, or KDS. KDS integrations
enable Olo customers to see and optimize all orders, whether on- or
off-premise, providing a 360-degree view of all orders in
production. This information will allow Olo to provide brands with
operational decision-making abilities by including capacity
management features that quote and throttle orders based on the
real-time kitchen activity levels, ultimately creating a more
integrated technology solution for restaurants, and expanding the
Company’s vertical offerings throughout the restaurant value
chain.
- Olo is committed to building a diverse and inclusive culture
that promotes growth and equity for underrepresented groups while
supporting and celebrating all voices and perspectives. Olo has
updated its DEI website with gender and ethnicity metrics as of
June 30, 2022, and remains on track to have its team be composed of
42% women and 18% underrepresented ethnicities by 2024. Olo also
furthered its commitment to equity through adoption of a new
Equitable Access to Healthcare policy and other actions aimed at
supporting its LGBTQ+ employee population.
Financial Outlook
As of August 11, 2022, Olo is issuing the following outlook for
the third quarter of 2022 and fiscal year 2022:
For the third quarter of 2022, Olo expects to report:
- Revenue in the range of $46.5 million to $47.0 million;
and
- Non-GAAP operating income in the range of $1.8 million to $2.2
million.
For the fiscal year 2022, Olo expects to report:
- Revenue in the range of $183.0 million to $184.0 million;
and
- Non-GAAP operating income in the range of $7.6 million to $8.4
million.
The outlook provided above constitutes forward-looking
information within the meaning of applicable securities laws and is
based on a number of assumptions and subject to a number of risks.
Actual results could vary materially as a result of numerous
factors, including certain risk factors, many of which are beyond
Olo’s control. See the cautionary note regarding “Forward-Looking
Statements” below. Fluctuations in Olo’s operating results may be
particularly pronounced in the current macroeconomic environment,
which has been characterized by rising inflation and interest
rates, lower consumer confidence, uncertainty caused by the ongoing
COVID-19 pandemic, volatility in part due to the war in Ukraine,
and the risk of a global recession, the severity, duration, and
ultimate impact of which is difficult to predict at this time.
While Olo has benefited from the acceleration of demand for
off-premise dining during the COVID-19 pandemic, Olo’s business and
financial results could be materially adversely affected in the
future if off-premise dining declines.
Webcast and Conference Call Information
Olo will host a conference call today, August 11, 2022, at 5:00
p.m. Eastern Time to discuss the Company’s financial results and
financial outlook. A live webcast of this conference call will be
available on the “Investor Relations” page of the Company’s website
(investors.olo.com), and a replay will be available on the website
as well.
Available Information
Olo announces material information to the public about the
Company, its products and services, and other matters through a
variety of means, including filings with the SEC, press releases,
public conference calls, webcasts, the “Investor Relations” page of
the Company’s website (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 is a leading open SaaS platform for restaurants that enables
hospitality at every 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, increase operational efficiency,
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/margin (and as a percentage of revenue), non-GAAP
operating expenses (total and each line item, and total and each
non-GAAP operating expense item as a percentage of revenue),
non-GAAP operating income (and as a percentage of revenue),
non-GAAP net income (and as a percentage of revenue and on a per
share basis), and free cash flow.
We adjust our GAAP financial measures for the following items to
calculate one or more of our non-GAAP financial measures (other
than free cash flow): stock-based compensation expense (non-cash
expense calculated by companies using a variety of valuation
methodologies and subjective assumptions) and related payroll tax
expense, equity expense related to charitable contributions
(non-cash expense), intangible and internal-use software
amortization (non-cash expense), change in fair value of warrants,
other non-cash charges, severance related to the departure of our
Chief Customer Officer, transaction costs incurred within one year
of the related acquisition, and related income tax impacts.
Reconciliation of non-GAAP operating income guidance to the most
directly comparable GAAP measures is not available without
unreasonable efforts on a forward-looking basis due to the high
variability, complexity, and low visibility with respect to the
charges excluded from these non-GAAP measures; in particular, the
measures and effects of stock-based compensation expense and
related payroll tax expense specific to equity compensation awards
that are directly impacted by unpredictable fluctuations in our
stock price. We expect the variability of the above charges to have
a significant, and potentially unpredictable, impact on our future
GAAP financial results.
Management believes that it is useful to exclude certain
non-cash charges and non-core operational charges from non-GAAP
operating income because (i) the amount of such expenses in any
specific period may not directly correlate to the underlying
performance of our business operations; and (ii) such expenses can
vary significantly between periods. For 2022, payroll tax expenses
related to equity compensation awards were added to our calculation
of non-GAAP operating income. We have historically excluded
stock-based compensation expense from non-GAAP operating income,
and management believes that excluding the related payroll tax
expense is important and consistent, as such payroll tax expenses
are directly impacted by unpredictable fluctuations in our stock
price. Prior period amounts have been revised to conform with the
current year presentation.
Free cash flow represents net cash provided by or used in
operating activities, reduced by purchases of property and
equipment and capitalization of internal-use software. Free cash
flow is a measure used by management to understand and evaluate our
liquidity and to generate future operating plans. Free cash flow
excludes items that we do not consider to be indicative of our
liquidity. The reduction of capital expenditures facilitates
comparisons of our liquidity on a period-to-period basis. We
believe providing free cash flow provides useful information to
investors and others in understanding and evaluating the strength
of our liquidity and future ability to generate cash that can be
used for strategic opportunities or investing in our business from
the perspective of our management and Board of Directors.
Key Performance Indicators
In addition, we also use the following key performance
indicators to help us evaluate our business, identify trends
affecting the business, formulate business plans, and make
strategic decisions.
Active Locations: We define an active location as a unique
restaurant location that is utilizing one or more of our modules at
the end of a quarterly period. We believe that active location
count is an important metric that demonstrates the growth and scale
of our overall business and reflects our ability to attract,
engage, and monetize our customers and thereby drive revenue, as
well as provides a base to expand usage of our modules.
Average revenue per unit (ARPU): We calculate ARPU by dividing
the total platform revenue in a given period by the average active
locations in that same period. We believe ARPU is an important
metric that measures monetization of our platform and demonstrates
our ability to grow within our customer base through the
development of products that our customers value.
Dollar-based net revenue retention (NRR): We calculate NRR as of
a period-end by starting with the revenue, defined as platform
revenue, from the cohort of all active customers as of 12 months
prior to such period-end, or the prior period revenue. We then
calculate the platform revenue from these same customers as of the
current period-end, or the current period revenue. Current period
revenue includes any expansion and is net of contraction or
attrition over the last 12 months, but excludes platform revenue
from new customers in the current period. We then divide the total
current period revenue by the total prior period revenue to arrive
at the point-in-time dollar-based NRR. We believe that NRR is an
important metric demonstrating our ability to retain our customers
and expand their use of our modules over time, proving the
stability of our revenue base and the long-term value of our
customer relationships.
Forward-Looking Statements
Statements we make in this press release include statements that
are considered forward-looking within the meaning of Section 27A of
the Securities Act and Section 21E of the Securities Exchange Act,
which may be identified by the use of words such as “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
third quarter of 2022 and the full year 2022, our future
performance and growth and market opportunities, including new
products and continued module adoption (such as with respect to Olo
Pay and Sync), 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, 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 impact and duration of the
ongoing COVID-19 pandemic on our business; the business of our
customers and economic conditions, including rising inflation,
labor shortages, increasing interest rates, and any reductions in
consumer spending on dining due to the general economic climate;
our focus on the long-term and our investments in sustainable,
profitable growth; our ability to acquire new customers 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; the impact of new and existing laws
and regulations on our business; changes to our strategic
relationships with third parties; our reliance on a limited number
of delivery service providers and aggregators; our ability to
generate revenue from our product offerings and the effects of
fluctuations in our level of client spend retention; competition;
changes in the amount and mix of transactions facilitated through
our platform; changes in our level of investment in sales and
marketing, research and development, and general and administrative
expenses, and our hiring plans; future changes to our pricing
model; changes in management; and other general market, political,
economic, and business conditions. Actual results could differ
materially from those predicted or implied, and reported results
should not be considered an indication of future performance.
Additionally, these forward-looking statements, particularly our
guidance, involve risks, uncertainties, and assumptions, including
those related to our customers’ spending decisions and consumer
ordering behavior particularly as COVID-19 associated restrictions
continue to abate. Significant variations from the assumptions
underlying our forward-looking statements could cause our actual
results to vary, and the impact could be significant.
Additional risks and uncertainties that could affect our
financial results and forward-looking statements are included under
the caption “Risk Factors” in our Quarterly Report on Form 10-Q for
the quarterly period ended June 30, 2022 that will be filed
following this earnings release, our Annual Report on Form 10-K for
the year ended December 31, 2021, and our other SEC filings, which
are available on the “Investor Relations” page of our 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 June 30,
2022
As of December 31,
2021
ASSETS
Current assets:
Cash and cash equivalents
$
386,670
$
514,445
Short-term investments
73,535
—
Accounts receivable, net of allowances of
$656 and $657, respectively
41,649
42,319
Contract assets
435
568
Deferred contract costs
2,642
2,567
Prepaid expenses and other current
assets
8,281
5,718
Total current assets
513,212
565,617
Property and equipment, net
8,992
3,304
Intangible assets, net
23,678
19,635
Goodwill
207,540
162,956
Contract assets, noncurrent
619
387
Deferred contract costs, noncurrent
4,003
3,616
Operating lease right-of-use assets
17,347
—
Long-term investments
4,476
—
Other assets, noncurrent
395
361
Total assets
$
780,262
$
755,876
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
2,098
$
2,184
Accrued expenses and other current
liabilities
44,689
45,395
Unearned revenue
3,231
1,190
Operating lease liabilities, current
2,630
—
Total current liabilities
52,648
48,769
Unearned revenue, noncurrent
1,618
3,014
Operating lease liabilities,
noncurrent
17,009
—
Other liabilities, noncurrent
69
2,343
Total liabilities
71,344
54,126
Stockholders’ equity:
Class A common stock, $0.001 par value;
1,700,000,000 shares authorized at June 30, 2022 and December 31,
2021; 97,645,289 and 78,550,530 shares issued and outstanding at
June 30, 2022 and December 31, 2021, respectively. Class B common
stock, $0.001 par value; 185,000,000 shares authorized at June 30,
2022 and December 31, 2021; 63,554,232 and 79,149,659 shares issued
and outstanding at June 30, 2022 and December 31, 2021,
respectively.
161
158
Preferred stock, $0.001 par value;
20,000,000 shares authorized at June 30, 2022 and December 31,
2021.
—
—
Additional paid-in capital
843,764
813,166
Accumulated deficit
(134,756
)
(111,574
)
Accumulated other comprehensive loss
(251
)
—
Total stockholders’ equity
708,918
701,750
Total liabilities and stockholders’
equity
$
780,262
$
755,876
OLO INC.
Condensed Consolidated
Statements of Operations (Unaudited)
(in thousands, except share
and per share amounts)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Revenue:
Platform
$
44,538
$
34,526
$
86,004
$
69,449
Professional services and other
1,063
1,370
2,353
2,570
Total revenue
45,601
35,896
88,357
72,019
Cost of revenue:
Platform
12,749
6,180
23,773
11,787
Professional services and other
1,419
1,183
3,197
2,426
Total cost of revenue
14,168
7,363
26,970
14,213
Gross profit
31,433
28,533
61,387
57,806
Operating expenses:
Research and development
17,233
13,931
34,058
28,387
General and administrative
17,235
13,310
35,196
31,764
Sales and marketing
8,897
3,701
16,967
7,537
Total operating expenses
43,365
30,942
86,221
67,688
Loss from operations
(11,932
)
(2,409
)
(24,834
)
(9,882
)
Other income (expenses), net:
Interest income
533
—
585
—
Interest expense
(46
)
—
(46
)
—
Other income (expense)
7
10
13
(8
)
Change in fair value of warrant
liability
—
—
—
(18,930
)
Total other income (expenses), net
494
10
552
(18,938
)
Loss before income taxes
(11,438
)
(2,399
)
(24,282
)
(28,820
)
Provision (benefit) for income taxes
235
38
(1,100
)
74
Net loss
$
(11,673
)
$
(2,437
)
$
(23,182
)
$
(28,894
)
Accretion of redeemable convertible
preferred stock to redemption value
—
—
—
(14
)
Net loss attributable to Class A and Class
B common stockholders
$
(11,673
)
$
(2,437
)
$
(23,182
)
$
(28,908
)
Net loss per share attributable to Class A
and Class B common stockholders:
Basic
$
(0.07
)
$
(0.02
)
$
(0.15
)
$
(0.30
)
Diluted
$
(0.07
)
$
(0.02
)
$
(0.15
)
$
(0.30
)
Weighted-average Class A and Class B
common shares outstanding:
Basic and diluted
160,429,125
147,510,963
159,813,053
95,690,520
OLO INC.
Condensed Consolidated
Statements of Cash Flows (Unaudited)
(in thousands)
Six Months Ended June
30, 2022
Six Months Ended June
30, 2021
Operating activities
Net loss
$
(23,182
)
$
(28,894
)
Adjustments to reconcile net loss to net
cash (used in) provided by operating activities:
Depreciation and amortization
2,624
527
Stock-based compensation
23,185
13,550
Stock-based compensation in connection
with vesting of Stock Appreciation Rights
—
2,847
Charitable donation of Class A common
stock
—
5,125
Bad debt expense
276
238
Change in fair value of warrants
—
18,930
Non-cash lease expense
1,125
—
Deferred income tax benefit
(1,421
)
—
Impairment of internal-use software
475
—
Changes in operating assets and
liabilities:
Accounts receivable
911
5,701
Contract assets
(99
)
(537
)
Prepaid expenses and other current
assets
(2,016
)
(4,848
)
Deferred contract costs
(462
)
(330
)
Accounts payable
(286
)
(7,225
)
Accrued expenses and other current
liabilities
(1,103
)
9,726
Operating lease liabilities
(1,248
)
—
Unearned revenue
561
663
Other liabilities, noncurrent
(36
)
(2
)
Other non-cash loss, net
(174
)
—
Net cash (used in) provided by operating
activities
(870
)
15,471
Investing activities
Purchases of property and equipment
(409
)
(271
)
Capitalized internal-use software
(5,125
)
(389
)
Acquisitions, net of cash acquired
(49,308
)
—
Purchases of investments
(82,394
)
—
Sales and maturities of investments
4,306
—
Net cash used in investing activities
(132,930
)
(660
)
Financing activities
Proceeds from issuance of common stock
upon initial public offering, net of underwriting discounts
—
485,541
Cash received for employee payroll tax
withholdings
3,033
18,691
Cash paid for employee payroll tax
withholdings
(2,866
)
(18,691
)
Proceeds from exercise of warrants
—
392
Payment of deferred finance costs
—
(136
)
Payment of deferred offering costs
(420
)
(4,118
)
Proceeds from exercise of stock options
and purchases under employee stock purchase plan
6,278
2,990
Net cash provided by financing
activities
6,025
484,669
Net (decrease) increase in cash and cash
equivalents
(127,775
)
499,480
Cash and cash equivalents, beginning of
period
514,445
75,756
Cash and cash equivalents, end of
period
$
386,670
$
575,236
OLO INC.
Reconciliation of GAAP to
Non-GAAP Results (Unaudited)
(in thousands, except
percentages)
Three Months Ended June
30, 2022
Three Months Ended June
30, 2021
Six Months Ended June
30, 2022
Six Months Ended June
30, 2021
Gross profit and gross margin
reconciliation:
Platform gross profit, GAAP
$
31,789
$
28,346
$
62,231
$
57,662
Plus: Stock-based compensation expense and
related payroll tax expense (1)
1,454
744
3,006
1,180
Plus: Amortization
968
138
1,596
275
Platform gross profit, non-GAAP
34,211
29,228
66,833
59,117
Services gross profit, GAAP
(356
)
187
(844
)
144
Plus: Stock-based compensation expense and
related payroll tax expense (1)
190
131
449
246
Services gross profit, non-GAAP
(166
)
318
(395
)
390
Total gross profit, GAAP
31,433
28,533
61,387
57,806
Total gross profit, non-GAAP
34,045
29,546
66,438
59,507
Platform gross margin, GAAP
71
%
82
%
72
%
83
%
Platform gross margin, non-GAAP
77
%
85
%
78
%
85
%
Services gross margin, GAAP
(33)
%
14
%
(36)
%
6
%
Services gross margin, non-GAAP
(16)
%
23
%
(17)
%
15
%
Total gross margin, GAAP
69
%
79
%
69
%
80
%
Total gross margin, non-GAAP
75
%
82
%
75
%
83
%
Sales and marketing
reconciliation:
Sales and marketing, GAAP
8,897
3,701
16,967
7,537
Less: Stock-based compensation expense and
related payroll tax expense (1)
1,375
536
2,995
924
Less: Amortization
355
—
656
—
Less: Transaction costs
—
—
79
—
Sales and marketing, non-GAAP
7,167
3,165
13,237
6,613
Sales and marketing as % total revenue,
GAAP
20
%
10
%
19
%
10
%
Sales and marketing as % total revenue,
non-GAAP
16
%
9
%
15
%
9
%
Research and development
reconciliation:
Research and development, GAAP
17,233
13,931
34,058
28,387
Less: Stock-based compensation expense and
related payroll tax expense (1)
3,460
2,873
7,011
6,325
Less: Impairment of internal-use
software
—
—
475
—
Research and development, non-GAAP
13,773
11,058
26,572
22,062
Research and development as % total
revenue, GAAP
38
%
39
%
39
%
39
%
Research and development as % total
revenue, non-GAAP
30
%
31
%
30
%
31
%
General and administrative
reconciliation:
General and administrative, GAAP
17,235
13,310
35,196
31,764
Less: Charitable donation of Class A
common stock
—
—
—
5,125
Less: Stock-based compensation expense and
related payroll tax expense (1)
5,161
4,485
10,257
8,343
Less: Amortization
42
—
73
—
Less: Severance costs (2)
555
—
555
—
Less: Transaction costs
351
—
1,407
—
General and administrative, non-GAAP
11,126
8,825
22,904
18,296
General and administrative as % total
revenue, GAAP
38
%
37
%
40
%
44
%
General and administrative as % total
revenue, non-GAAP
24
%
25
%
26
%
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. (2) Includes costs related to the departure of our
Chief Customer Officer.
OLO INC.
Reconciliation of GAAP to
Non-GAAP Results (Unaudited)
(in thousands, except
percentages)
Three Months Ended June
30, 2022
Three Months Ended June
30, 2021
Six Months Ended June
30, 2022
Six Months Ended June
30, 2021
Operating income (loss)
reconciliation:
Operating loss, GAAP
$
(11,932
)
$
(2,409
)
$
(24,834
)
$
(9,882
)
Plus: Stock-based compensation expense and
related payroll tax expense (1)
11,640
8,769
23,718
17,018
Plus: Charitable donation of Class A
common stock
—
—
—
5,125
Plus: Impairment of internal-use
software
—
—
475
—
Plus: Amortization
1,365
138
2,325
275
Plus: Severance costs (2)
555
—
555
—
Plus: Transaction costs
351
—
1,486
—
Operating income, non-GAAP
1,979
6,498
3,725
12,536
Operating margin, GAAP
(26)
%
(7)
%
(28)
%
(14)
%
Operating margin, non-GAAP
4
%
18
%
4
%
17
%
Net income (loss)
reconciliation:
Net loss, GAAP
(11,673
)
(2,437
)
(23,182
)
(28,894
)
Plus: Stock-based compensation expense and
related payroll tax expense (1)
11,640
8,769
23,718
17,018
Plus: Charitable donation of Class A
common stock
—
—
—
5,125
Plus: Impairment of internal-use
software
—
—
475
—
Plus: Amortization
1,365
138
2,325
275
Plus: Change in fair value of warrant
liability
—
—
—
18,930
Plus: Severance costs (2)
555
—
555
—
Plus: Transaction costs
351
—
1,486
—
Less: Transaction-related deferred income
tax benefit
—
—
(1,421
)
—
Net income, non-GAAP
2,238
6,470
3,956
12,454
Fully diluted net loss per share
attributable to Class A and Class B common stockholders, GAAP
$
(0.07
)
$
(0.02
)
$
(0.15
)
$
(0.30
)
Fully diluted weighted average Class A and
Class B common shares outstanding, GAAP
160,429,125
147,510,963
159,813,053
95,690,520
Fully diluted net income per share
attributable to Class A and Class B common stockholders,
non-GAAP
$
0.01
$
0.04
$
0.02
$
0.07
Fully diluted Class A and Class B common
shares outstanding, non-GAAP
181,859,483
183,574,622
182,704,378
173,540,967
_________________
(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. (2) Includes costs related to the departure of our
Chief Customer Officer.
OLO INC.
Non-GAAP Free Cash Flow
(Unaudited)
(in thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Net cash provided by (used in) operating
activities
$
19
$
11,262
$
(870
)
$
15,471
Purchase of property and equipment
(333
)
(165
)
(409
)
(271
)
Capitalization of internal-use
software
(2,663
)
(317
)
(5,125
)
(389
)
Non-GAAP free cash flow
$
(2,977
)
$
10,780
$
(6,404
)
$
14,811
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220811005574/en/
Media Olo@icrinc.com Investor Relations
InvestorRelations@olo.com 646.389.2754
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