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

 

 

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