Revenue up 24%, ARPU up 15% Year-over-Year
Ending Active Locations Reach Approximately
85,000
Olo Inc. (NYSE:OLO) (“Olo” or the “Company”), a leading open
SaaS platform for restaurants, today announced financial results
for the third quarter ended September 30, 2024.
“Team Olo executed well on our top priorities in the third
quarter and positioned us to complete a successful 2024. We
continued to win, retain, and expand with brands, we drove further
innovation across our Order, Pay, and Engage product suites —
including the general availability of Olo Pay’s card-present
functionality on Qu point-of-sale systems — and we delivered
revenue and bottom line performance that exceeded the high-end of
our guidance ranges,” said Noah Glass, Olo’s Founder and CEO. “Olo
is winning on the strength of our open, enterprise-grade platform,
while setting the table for brands to leverage their own
transaction data to personalize the guest experience and drive
profitable traffic.”
Third Quarter Financial and Other Highlights
- Total revenue increased 24% year-over-year to $71.9
million.
- Total platform revenue increased 24% year-over-year to $71.0
million.
- Gross profit increased 13% year-over-year to $39.0 million, and
was 54% of total revenue.
- Non-GAAP gross profit increased 12% year-over-year to $43.6
million, and was 61% of total revenue.
- Operating loss was $8.5 million, or (12)% of total revenue,
compared to operating loss of $16.3 million, or (28)% of total
revenue, a year ago.
- Non-GAAP operating income was $8.2 million, or 11% of total
revenue, compared to $5.7 million, or 10% of total revenue, a year
ago.
- Net loss was $3.6 million, or $0.02 per share, compared to a
net loss of $11.8 million, or $0.07 per share a year ago.
- Non-GAAP net income was $10.4 million, or $0.06 per share,
compared to non-GAAP net income of $7.6 million or $0.04 per share
a year ago.
- Cash, cash equivalents, and short- and long-term investments
totaled $391.9 million as of September 30, 2024.
- Average revenue per unit (ARPU) increased 15% year-over-year,
and remained flat sequentially at approximately $850.
- Dollar-based net revenue retention (NRR) was above 120%.
- Ending active locations were approximately 85,000, up
approximately 3,000 from the quarter ended June 30, 2024.
Third Quarter and Recent Business Highlights
- Enterprise brands: Multi-module new deployments included Dutch
Bros on Olo Ordering and Olo Pay for card-not-present transactions
and Paris Baguette for Olo Order suite modules and Olo Pay for
card-not-present transactions. Additional new deployments included
Long John Silver’s on Olo Rails, and Nothing Bundt Cakes on Olo
Dispatch. Expansion deployments included Another Broken Egg Cafe
and P.F. Chang’s on Olo Engage’s Guest Data Platform.
- Emerging enterprise brands: Multi-suite new deployments
included Oakberry, Papa Gino’s, and Pizza Inn. Olo Engage expansion
deployments included Kolache Factory and Thompson Restaurants.
- Catering+: Expansion deployments included Bojangles, Cowboy
Chicken, and Mendocino Farms. Deeper partnership announced with
ezCater to enable Catering+ brands to more easily manage ezCater
orders and scale this increasingly important demand channel.
- Innovation: Announced numerous product enhancements during
Olo’s 2024 Fall Release event, including: the availability of Olo
Pay’s card-present payment processing for brands on Qu
point-of-sale (POS) systems; new functionality within Catering+ to
help operators manage complex business accounts; and brand loyalty
program sign-in integration with Olo’s Borderless passwordless
guest checkout solution. The full list of features announced are
available by visiting www.olo.com/quarterly-release/fall-2024.
Financial Outlook
As of November 7, 2024, Olo is issuing the following
outlook:
For the fourth quarter of 2024, Olo expects to report:
- Revenue in the range of $72.5 million to $73.0 million;
and
- Non-GAAP operating income in the range of $8.7 million to $9.0
million.
For fiscal year 2024, Olo expects to report:
- Revenue in the range of $281.4 million to $281.9 million;
and
- Non-GAAP operating income in the range of $30.2 million to
$30.5 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.
Webcast and Conference Call Information
Olo will host a conference call today, November 7, 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
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. Over 700 restaurant
brands trust Olo and its network of more than 400 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 financial results as reported under
GAAP. 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, net of
recoveries (which relate to legal and other professional fees
associated with litigation-related matters that are not indicative
of our core operations and are not part of our normal course of
business), loss on disposal of assets, capitalized internal-use
software and intangible amortization (non-cash expense), non-cash
impairment charges, 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.
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.
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 our 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 or subscribed to one or more
of our modules in 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
fourth 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, geopolitical
instability, 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 customer spend retention; the durability of the growth we
experienced in the past, guest preferences for digital ordering and
customer adoption of multiple modules; and other general market,
political, economic, and business conditions. Actual results could
differ materially from those predicted or implied, and reported
results should not be considered an indication of future
performance. Additionally, these forward-looking statements,
particularly our guidance, involve risks, uncertainties, and
assumptions, including those related to our customers’ spending
decisions and guest ordering behavior. Significant variations from
the assumptions underlying our forward-looking statements could
cause our actual results to vary, and the impact could be
significant.
Additional risks and uncertainties that could affect our
financial results and forward-looking statements are included under
the caption “Risk Factors” in our Quarterly Report on Form 10-Q for
the quarter ended September 30, 2024 that will be filed following
this press release, our Annual Report on Form 10-K for the year
ended December 31, 2023, 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 September 30,
2024
As of December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents
$
272,180
$
278,218
Short-term investments
77,533
84,331
Accounts receivable, net of expected
credit losses of $4,288 and $2,785, respectively
55,886
70,264
Contract assets
500
412
Deferred contract costs
5,450
4,743
Prepaid expenses and other current
assets
13,584
12,769
Total current assets
425,133
450,737
Property and equipment, net of accumulated
depreciation and amortization of $17,522 and $10,111,
respectively
26,497
22,055
Intangible assets, net of accumulated
amortization of $11,233 and $8,264, respectively
14,769
17,738
Goodwill
207,781
207,781
Contract assets, noncurrent
1,168
352
Deferred contract costs, noncurrent
5,810
5,806
Operating lease right-of-use assets
9,988
12,529
Long-term investments
42,140
25,748
Other assets, noncurrent
39
73
Total assets
$
733,325
$
742,819
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
1,462
$
4,582
Accrued expenses and other current
liabilities
48,094
68,240
Unearned revenue
1,965
1,533
Operating lease liabilities, current
2,552
2,859
Total current liabilities
54,073
77,214
Unearned revenue, noncurrent
182
57
Operating lease liabilities,
noncurrent
12,159
13,968
Other liabilities, noncurrent
—
109
Total liabilities
66,414
91,348
Stockholders’ equity:
Class A common stock, $0.001 par value;
1,700,000,000 shares authorized at September 30, 2024 and December
31, 2023; 111,275,660 and 108,469,679 shares issued and outstanding
at September 30, 2024 and December 31, 2023, respectively. Class B
common stock, $0.001 par value; 185,000,000 shares authorized at
September 30, 2024 and December 31, 2023; 51,993,616 and 54,891,834
shares issued and outstanding at September 30, 2024 and December
31, 2023, respectively
163
163
Preferred stock, $0.001 par value;
20,000,000 shares authorized at September 30, 2024 and December 31,
2023
—
—
Additional paid-in capital
882,461
867,152
Accumulated deficit
(216,091
)
(215,829
)
Accumulated other comprehensive income
(loss)
378
(15
)
Total stockholders’ equity
666,911
651,471
Total liabilities and stockholders’
equity
$
733,325
$
742,819
OLO INC.
Condensed Consolidated
Statements of Operations (Unaudited)
(in thousands, except share
and per share amounts)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Revenue:
Platform
$
70,999
$
57,261
$
206,364
$
163,235
Professional services and other
854
533
2,504
2,050
Total revenue
71,853
57,794
208,868
165,285
Cost of revenue:
Platform
32,081
22,203
90,197
59,537
Professional services and other
763
1,026
2,549
3,220
Total cost of revenue
32,844
23,229
92,746
62,757
Gross profit
39,009
34,565
116,122
102,528
Operating expenses:
Research and development
17,170
18,035
51,126
56,806
General and administrative
15,130
21,307
36,550
56,986
Sales and marketing
12,832
11,363
40,752
36,438
Restructuring charges
2,396
166
2,396
6,848
Total operating expenses
47,528
50,871
130,824
157,078
Loss from operations
(8,519
)
(16,306
)
(14,702
)
(54,550
)
Other income, net:
Interest income
4,936
4,598
14,687
12,207
Interest expense
(14
)
(43
)
(98
)
(165
)
Other (expense) income
(1
)
(1
)
2
(1
)
Total other income, net
4,921
4,554
14,591
12,041
Loss before income taxes
(3,598
)
(11,752
)
(111
)
(42,509
)
Provision for income taxes
37
7
151
32
Net loss
$
(3,635
)
$
(11,759
)
$
(262
)
$
(42,541
)
Net loss per share attributable to Class A
and Class B common stockholders:
Basic
$
(0.02
)
$
(0.07
)
$
0.00
$
(0.26
)
Diluted
$
(0.02
)
$
(0.07
)
$
0.00
$
(0.26
)
Weighted-average Class A and Class B
common shares outstanding:
Basic
162,477,259
163,991,486
162,005,026
162,674,062
Diluted
162,477,259
163,991,486
162,005,026
162,674,062
OLO INC.
Condensed Consolidated
Statements of Cash Flows (Unaudited)
(in thousands)
Nine Months Ended
September 30,
2024
2023
Operating activities
Net loss
$
(262
)
$
(42,541
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation and amortization
10,380
7,283
Stock-based compensation
31,757
41,341
Charitable donation of Class A common
stock
—
1,136
Provision for expected credit losses
3,798
1,495
Non-cash lease expense
1,978
2,079
Loss on disposal of assets
—
38
Non-cash impairment charges
1,079
—
Other non-cash operating activities,
net
(1,576
)
(1,883
)
Changes in operating assets and
liabilities:
Accounts receivable
10,580
(23,580
)
Contract assets
(903
)
(156
)
Prepaid expenses and other current and
noncurrent assets
(778
)
2,835
Deferred contract costs
(711
)
(2,588
)
Accounts payable
(3,119
)
(2,069
)
Accrued expenses and other current
liabilities
(20,167
)
7,189
Operating lease liabilities
(2,116
)
(2,226
)
Unearned revenue
558
(812
)
Other liabilities, noncurrent
(109
)
76
Net cash provided by (used in) operating
activities
30,389
(12,383
)
Investing activities
Purchases of property and equipment
(782
)
—
Capitalized internal-use software
(9,459
)
(10,023
)
Purchases of investments
(96,467
)
(96,501
)
Sales and maturities of investments
88,842
88,155
Net cash used in investing activities
(17,866
)
(18,369
)
Financing activities
Cash received for employee payroll tax
withholdings
5,367
13,902
Cash paid for employee payroll tax
withholdings
(5,351
)
(13,896
)
Proceeds from exercise of stock options
and purchases under employee stock purchase plan
3,604
10,208
Repurchase of common stock
(22,181
)
(43,134
)
Net cash used in financing activities
(18,561
)
(32,920
)
Net decrease in cash and cash
equivalents
(6,038
)
(63,672
)
Cash and cash equivalents, beginning of
period
278,218
350,073
Cash and cash equivalents, end of
period
$
272,180
$
286,401
OLO INC.
Reconciliation of GAAP to
Non-GAAP Results (Unaudited)
(in thousands, except for
percentages and share and per share amounts)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Gross profit and gross margin
reconciliation:
Platform gross profit, GAAP
$
38,918
$
35,058
$
116,167
$
103,698
Plus: Stock-based compensation expense and
related payroll tax expense
1,223
1,717
4,121
5,367
Plus: Capitalized internal-use software
and intangible amortization
3,296
2,344
8,945
5,819
Platform gross profit, non-GAAP
43,437
39,119
129,233
114,884
Services gross profit, GAAP
91
(493
)
(45
)
(1,170
)
Plus: Stock-based compensation expense and
related payroll tax expense
85
171
268
551
Services gross profit, non-GAAP
176
(322
)
223
(619
)
Total gross profit, GAAP
39,009
34,565
116,122
102,528
Total gross profit, non-GAAP
43,613
38,797
129,456
114,265
Platform gross margin, GAAP
55
%
61
%
56
%
64
%
Platform gross margin, non-GAAP
61
%
68
%
63
%
70
%
Services gross margin, GAAP
11
%
(92
)%
(2
)%
(57
)%
Services gross margin, non-GAAP
21
%
(60
)%
9
%
(30
)%
Total gross margin, GAAP
54
%
60
%
56
%
62
%
Total gross margin, non-GAAP
61
%
67
%
62
%
69
%
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Sales and marketing
reconciliation:
Sales and marketing, GAAP
$
12,832
$
11,363
$
40,752
$
36,438
Less: Stock-based compensation expense and
related payroll tax expense
1,480
1,608
4,605
6,306
Less: Intangible amortization
341
342
1,024
1,024
Less: Certain severance costs
—
—
—
121
Sales and marketing, non-GAAP
11,011
9,413
35,123
28,987
Sales and marketing as % total revenue,
GAAP
18
%
20
%
20
%
22
%
Sales and marketing as % total revenue,
non-GAAP
15
%
16
%
17
%
18
%
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Research and development
reconciliation:
Research and development, GAAP
$
17,170
$
18,035
$
51,126
$
56,806
Less: Stock-based compensation expense and
related payroll tax expense
2,863
3,760
8,740
12,270
Less: Non-cash capitalized software
impairment
—
—
517
—
Research and development, non-GAAP
14,307
14,275
41,869
44,536
Research and development as % total
revenue, GAAP
24
%
31
%
25
%
34
%
Research and development as % total
revenue, non-GAAP
20
%
25
%
20
%
27
%
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
General and administrative
reconciliation:
General and administrative, GAAP
$
15,130
$
21,307
$
36,550
$
56,986
Less: Stock-based compensation expense and
related payroll tax expense
5,064
5,756
14,736
16,510
Less: Charitable donation of Class A
common stock
—
1,136
—
1,136
Less: Certain litigation-related expenses,
net of recoveries
(45
)
4,944
(9,879
)
8,803
Less: Non-cash impairment charge
associated with corporate headquarters
—
—
563
—
Less: Intangible amortization
41
40
122
122
Less: Certain severance costs
—
—
—
709
Less: Loss on disposal of assets
—
—
—
38
Less: Transaction costs
—
—
—
358
General and administrative, non-GAAP
10,070
9,431
31,008
29,310
General and administrative as % total
revenue, GAAP
21
%
37
%
18
%
34
%
General and administrative as % total
revenue, non-GAAP
14
%
16
%
15
%
18
%
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Operating income (loss)
reconciliation:
Operating loss, GAAP
$
(8,519
)
$
(16,306
)
$
(14,702
)
$
(54,550
)
Plus: Stock-based compensation expense and
related payroll tax expense
10,715
13,012
32,470
41,004
Plus: Charitable donation of Class A
common stock
—
1,136
—
1,136
Plus: Certain litigation-related expenses,
net of recoveries
(45
)
4,944
(9,879
)
8,803
Plus: Non-cash impairment charge
associated with corporate headquarters
—
—
563
—
Plus: Non-cash capitalized internal-use
software impairment
—
—
517
—
Plus: Capitalized internal-use software
and intangible amortization
3,678
2,726
10,091
6,965
Plus: Restructuring charges
2,396
166
2,396
6,848
Plus: Certain severance costs
—
—
—
830
Plus: Loss on disposal of assets
—
—
—
38
Plus: Transaction costs
—
—
—
358
Operating income, non-GAAP
8,225
5,678
21,456
11,432
Operating margin, GAAP
(12
)%
(28
)%
(7
)%
(33
)%
Operating margin, non-GAAP
11
%
10
%
10
%
7
%
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Net income (loss)
reconciliation:
Net loss, GAAP
$
(3,635
)
$
(11,759
)
$
(262
)
$
(42,541
)
Plus: Stock-based compensation expense and
related payroll tax expense
10,715
13,012
32,470
41,004
Plus: Charitable donation of Class A
common stock
—
1,136
—
1,136
Plus: Certain litigation-related expenses,
net of recoveries
(45
)
4,944
(9,879
)
8,803
Plus: Non-cash impairment charge
associated with corporate headquarters
—
—
563
—
Plus: Non-cash capitalized internal-use
software impairment
—
—
517
—
Plus: Capitalized internal-use software
and intangible amortization
3,678
2,726
10,091
6,965
Plus: Restructuring charges
2,396
166
2,396
6,848
Plus: Certain severance costs
—
—
—
830
Plus: Loss on disposal of assets
—
38
Plus: Transaction costs
—
—
—
358
Less: Tax impact of non-GAAP adjustments
(1)
(2,720
)
(2,666
)
(8,526
)
(6,116
)
Net income, non-GAAP
10,389
7,559
27,370
17,325
Fully diluted net loss per share
attributable to Class A and Class B common stockholders, GAAP
$
(0.02
)
$
(0.07
)
$
—
$
(0.26
)
Fully diluted weighted average Class A and
Class B common shares outstanding, GAAP
162,477,259
163,991,486
162,005,026
162,674,062
Fully diluted net income per share
attributable to Class A and Class B common stockholders,
non-GAAP
$
0.06
$
0.04
$
0.16
$
0.10
Fully diluted Class A and Class B common
shares outstanding, non-GAAP
171,947,446
176,719,100
171,723,141
177,626,336
_________________________
(1) 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
24.07% and 26.06% for the nine months ended September 30, 2024 and
2023, respectively.
OLO INC.
Non-GAAP Free Cash Flow
(Unaudited)
(in thousands)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Net cash provided by (used in) operating
activities
$
6,231
$
(21,649
)
$
30,389
$
(12,383
)
Purchase of property and equipment
(415
)
—
(782
)
—
Capitalized internal-use software
(2,628
)
(2,744
)
(9,459
)
(10,023
)
Non-GAAP free cash flow
$
3,188
$
(24,393
)
$
20,148
$
(22,406
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241106043757/en/
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