Revenue up 28%, ARPU up 19% Year-over-Year
Olo Inc. (NYSE:OLO) (“Olo” or the “Company”), a leading open
SaaS platform for restaurants, today announced financial results
for the second quarter ended June 30, 2024.
“In Q2, Team Olo delivered another strong quarter of financial
and operational performance. We generated revenue and non-GAAP
operating income that exceeded the high-end of their respective
guidance ranges, added new enterprise and emerging enterprise
brands and expanded with existing customers, and announced another
POS integration partnership for Olo Pay and Engage that moves Olo
closer to supporting full-stack payment processing and data
aggregation across off- and on-premise transactions,” said Noah
Glass, Olo’s Founder and CEO. “The breadth of our platform and the
scale of our network help brands to use omni-channel guest data to
drive profitable traffic: a key metric for success in the
restaurant business.”
Second Quarter Financial and Other Highlights
- Total revenue increased 28% year-over-year to $70.5
million.
- Total platform revenue increased 27% year-over-year to $69.6
million.
- Gross profit increased 16% year-over-year to $39.9 million, and
was 57% of total revenue.
- Non-GAAP gross profit increased 16% year-over-year to $44.3
million, and was 63% of total revenue.
- Operating income was $1.0 million, or 1% of total revenue,
compared to operating loss of $21.2 million, or (38)% of total
revenue, a year ago.
- Non-GAAP operating income was $7.6 million, or 11% of total
revenue, compared to $4.5 million, or 8% of total revenue, a year
ago.
- Net income was $5.7 million, or $0.03 per share, compared to a
net loss of $17.1 million, or $0.11 per share a year ago.
- Non-GAAP net income was $9.2 million, or $0.05 per share,
compared to non-GAAP net income of $6.4 million or $0.04 per share
a year ago.
- Cash, cash equivalents, and short- and long-term investments
totaled $387.0 million as of June 30, 2024.
- Average revenue per unit (ARPU) increased 19% year-over-year,
and increased 4% sequentially to approximately $852.
- Dollar-based net revenue retention (NRR) was above 120%.
- Ending active locations were approximately 82,000, up
approximately 1,000 from the quarter ended March 31, 2024.
Second Quarter and Recent Business Highlights
- Announced an expanded point-of-sale (POS) relationship with
TRAY, where TRAY will expand its existing integrations beyond Olo’s
Order suite to include Olo Pay’s full stack payment processing
functionality and Olo Engage’s guest data platform (GDP). Olo now
has expanded Pay and Engage GDP integration partnerships in place
with three POS providers.
- Deployed Olo Order modules with enterprise brands such as
Bonchon, a fast-casual Korean chicken chain, and Mission BBQ, a
fast-casual barbecue concept, and expanded through Olo Pay with
enterprise brands such as Culver’s, El Pollo Loco, Miller’s Ale
House, and Pollo Tropical.
- Deployed Olo products across our Order and Pay suites with more
than a dozen emerging enterprise brands, including &pizza and
DIG.
- Announced 19 product enhancements during Olo’s 2024 Summer
Release event, including Loyalty for Olo Borderless Accounts, a new
feature that allows guests to earn, redeem, and use rewards from a
brand’s existing loyalty program through Olo’s seamless,
passwordless guest checkout solution. Other highlighted features
include Marketing A/B Testing for Email Campaigns and Catering+
Enhanced Order Management. The full list of features announced are
available by visiting
www.olo.com/quarterly-release/summer-2024.
- Olo announced its 2024 Olo for Good annual grant cycle
recipients through its donor-advised fund (DAF) partner, Tides
Foundation, funded by our Pledge 1% commitment and released our
second annual ESG Report. To learn more visit olo.com/esg.
- Total shares repurchased in the quarter were approximately 1.4
million for approximately $6.9 million, bringing total repurchases
to 15.7 million shares for approximately $100.0 million, completing
our initial buyback program.
Financial Outlook
As of July 31, 2024, Olo is issuing the following outlook:
For the third quarter of 2024, Olo expects to report:
- Revenue in the range of $70.8 million to $71.3 million;
and
- Non-GAAP operating income in the range of $6.0 million to $6.4
million.
For fiscal year 2024, Olo expects to report:
- Revenue in the range of $279.5 million to $280.5 million;
and
- Non-GAAP operating income in the range of $25.6 million to
$26.4 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 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, July 31, 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, 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. The prior period non-GAAP net income
presentation has also been revised to include the tax impact of the
non-GAAP adjustments and conforms with the new presentation.
Reconciliation of non-GAAP operating income guidance to the most
directly comparable GAAP measures is not available without
unreasonable efforts on a forward-looking basis due to the high
variability, complexity, and low visibility with respect to the
charges excluded from these non-GAAP measures; in particular, the
measures and effects of stock-based compensation expense and
related payroll tax expense specific to equity compensation awards
that are directly impacted by unpredictable fluctuations in our
stock price. We expect the variability of the above charges to have
a significant, and potentially unpredictable, impact on our future
GAAP financial results.
Management believes that it is useful to exclude certain
non-cash charges and non-core operational charges from our non-GAAP
financial measures because: (1) the amount of such expenses in any
specific period may not directly correlate to the underlying
performance of our business operations and we believe does not
relate to ongoing operational performance; and (2) such expenses
can vary significantly between periods.
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
third 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,
statements regarding the amount, timing, and sources of funding for
the share repurchase program, 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 client 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 June 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 June 30,
2024
As of December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents
$
269,439
$
278,218
Short-term investments
91,266
84,331
Accounts receivable, net of expected
credit losses of $5,248 and $2,785, respectively
60,198
70,264
Contract assets
446
412
Deferred contract costs
5,148
4,743
Prepaid expenses and other current
assets
20,664
12,769
Total current assets
447,161
450,737
Property and equipment, net of accumulated
depreciation and amortization of $14,720 and $10,111,
respectively
25,745
22,055
Intangible assets, net of accumulated
amortization of $10,244 and $8,264, respectively
15,758
17,738
Goodwill
207,781
207,781
Contract assets, noncurrent
947
352
Deferred contract costs, noncurrent
5,770
5,806
Operating lease right-of-use assets
10,646
12,529
Long-term investments
26,322
25,748
Other assets, noncurrent
51
73
Total assets
$
740,181
$
742,819
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
6,486
$
4,582
Accrued expenses and other current
liabilities
57,678
68,240
Unearned revenue
1,871
1,533
Operating lease liabilities, current
2,700
2,859
Total current liabilities
68,735
77,214
Unearned revenue, noncurrent
441
57
Operating lease liabilities,
noncurrent
12,727
13,968
Other liabilities, noncurrent
—
109
Total liabilities
81,903
91,348
Stockholders’ equity:
Class A common stock, $0.001 par value;
1,700,000,000 shares authorized at June 30, 2024 and December 31,
2023; 108,640,187 and 108,469,679 shares issued and outstanding at
June 30, 2024 and December 31, 2023, respectively. Class B common
stock, $0.001 par value; 185,000,000 shares authorized at June 30,
2024 and December 31, 2023; 53,393,616 and 54,891,834 shares issued
and outstanding at June 30, 2024 and December 31, 2023,
respectively
162
163
Preferred stock, $0.001 par value;
20,000,000 shares authorized at June 30, 2024 and December 31,
2023
—
—
Additional paid-in capital
870,733
867,152
Accumulated deficit
(212,456
)
(215,829
)
Accumulated other comprehensive loss
(161
)
(15
)
Total stockholders’ equity
658,278
651,471
Total liabilities and stockholders’
equity
$
740,181
$
742,819
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,
2024
2023
2024
2023
Revenue:
Platform
$
69,600
$
54,603
$
135,365
$
105,974
Professional services and other
904
648
1,650
1,517
Total revenue
70,504
55,251
137,015
107,491
Cost of revenue:
Platform
29,788
19,721
58,116
37,334
Professional services and other
811
1,058
1,786
2,194
Total cost of revenue
30,599
20,779
59,902
39,528
Gross profit
39,905
34,472
77,113
67,963
Operating expenses:
Research and development
16,957
18,298
33,956
38,771
General and administrative
8,664
18,469
21,420
35,679
Sales and marketing
13,307
12,194
27,920
25,075
Restructuring charges
—
6,682
—
6,682
Total operating expenses
38,928
55,643
83,296
106,207
Income (loss) from operations
977
(21,171
)
(6,183
)
(38,244
)
Other income, net:
Interest income
4,844
4,155
9,751
7,609
Interest expense
(15
)
(53
)
(84
)
(122
)
Other income, net
—
—
3
—
Total other income, net
4,829
4,102
9,670
7,487
Income (loss) before income taxes
5,806
(17,069
)
3,487
(30,757
)
Provision for income taxes
77
7
114
25
Net income (loss)
$
5,729
$
(17,076
)
$
3,373
$
(30,782
)
Net income (loss) per share attributable
to Class A and Class B common stockholders:
Basic
$
0.04
$
(0.11
)
$
0.02
$
(0.19
)
Diluted
$
0.03
$
(0.11
)
$
0.02
$
(0.19
)
Weighted-average Class A and Class B
common shares outstanding:
Basic
161,197,680
162,324,314
161,766,287
162,005,150
Diluted
170,472,824
162,324,314
171,608,366
162,005,150
OLO INC.
Condensed Consolidated
Statements of Cash Flows (Unaudited)
(in thousands)
Six Months Ended June
30,
2024
2023
Operating activities
Net income (loss)
$
3,373
$
(30,782
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization
6,589
4,462
Stock-based compensation
21,256
28,828
Provision for expected credit losses
3,265
1,079
Non-cash lease expense
1,320
1,436
Loss on disposal of assets
—
38
Non-cash impairment charges
1,079
—
Other non-cash operating activities,
net
(1,221
)
(1,553
)
Changes in operating assets and
liabilities:
Accounts receivable
6,800
(9,101
)
Contract assets
(628
)
(207
)
Prepaid expenses and other current and
noncurrent assets
(7,827
)
620
Deferred contract costs
(369
)
(1,954
)
Accounts payable
1,904
5,476
Accrued expenses and other current
liabilities
(10,596
)
12,069
Operating lease liabilities
(1,400
)
(1,557
)
Unearned revenue
722
393
Other liabilities, noncurrent
(109
)
19
Net cash provided by operating
activities
24,158
9,266
Investing activities
Purchases of property and equipment
(367
)
—
Capitalized internal-use software
(6,831
)
(7,279
)
Purchases of investments
(60,498
)
(72,941
)
Sales and maturities of investments
54,064
62,262
Net cash used in investing activities
(13,632
)
(17,958
)
Financing activities
Cash received for employee payroll tax
withholdings
3,316
3,039
Cash paid for employee payroll tax
withholdings
(3,282
)
(3,105
)
Proceeds from exercise of stock options
and purchases under employee stock purchase plan
2,842
6,803
Repurchase of common stock
(22,181
)
(30,099
)
Net cash used in financing activities
(19,305
)
(23,362
)
Net decrease in cash and cash
equivalents
(8,779
)
(32,054
)
Cash and cash equivalents, beginning of
period
278,218
350,073
Cash and cash equivalents, end of
period
$
269,439
$
318,019
OLO INC.
Reconciliation of GAAP to
Non-GAAP Results (Unaudited)
(in thousands, except for
percentages and share and per share amounts)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Gross profit and gross margin
reconciliation:
Platform gross profit, GAAP
$
39,812
$
34,882
$
77,249
$
68,640
Plus: Stock-based compensation expense and
related payroll tax expense
1,339
1,751
2,898
3,650
Plus: Capitalized internal-use software
and intangible amortization
3,010
1,825
5,649
3,475
Platform gross profit, non-GAAP
44,161
38,458
85,796
75,765
Services gross profit, GAAP
93
(410
)
(136
)
(677
)
Plus: Stock-based compensation expense and
related payroll tax expense
54
182
183
380
Services gross profit, non-GAAP
147
(228
)
47
(297
)
Total gross profit, GAAP
39,905
34,472
77,113
67,963
Total gross profit, non-GAAP
44,308
38,230
85,843
75,468
Platform gross margin, GAAP
57
%
64
%
57
%
65
%
Platform gross margin, non-GAAP
63
%
70
%
63
%
71
%
Services gross margin, GAAP
10
%
(63
)%
(8
)%
(45
)%
Services gross margin, non-GAAP
16
%
(35
)%
3
%
(20
)%
Total gross margin, GAAP
57
%
62
%
56
%
63
%
Total gross margin, non-GAAP
63
%
69
%
63
%
70
%
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Sales and marketing
reconciliation:
Sales and marketing, GAAP
$
13,307
$
12,194
$
27,920
$
25,075
Less: Stock-based compensation expense and
related payroll tax expense
1,568
2,131
3,125
4,698
Less: Intangible amortization
342
341
683
682
Less: Certain severance costs
—
—
—
121
Sales and marketing, non-GAAP
11,397
9,722
24,112
19,574
Sales and marketing as % total revenue,
GAAP
19
%
22
%
20
%
23
%
Sales and marketing as % total revenue,
non-GAAP
16
%
18
%
18
%
18
%
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Research and development
reconciliation:
Research and development, GAAP
$
16,957
$
18,298
$
33,956
$
38,771
Less: Stock-based compensation expense and
related payroll tax expense
2,743
3,759
5,877
8,510
Less: Non-cash capitalized software
impairment
517
—
517
—
Research and development, non-GAAP
13,697
14,539
27,562
30,261
Research and development as % total
revenue, GAAP
24
%
33
%
25
%
36
%
Research and development as % total
revenue, non-GAAP
19
%
26
%
20
%
28
%
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
General and administrative
reconciliation:
General and administrative, GAAP
$
8,664
$
18,469
$
21,420
$
35,679
Less: Stock-based compensation expense and
related payroll tax expense
4,923
5,672
9,672
10,754
Less: Certain litigation-related expenses,
net of recoveries
(8,462
)
2,975
(9,834
)
3,859
Less: Non-cash impairment charge
associated with corporate headquarters
563
—
563
—
Less: Intangible amortization
40
41
81
82
Less: Certain severance costs
—
—
—
709
Less: Loss on disposal of assets
—
—
—
38
Less: Transaction costs
—
322
—
358
General and administrative, non-GAAP
11,600
9,459
20,938
19,879
General and administrative as % total
revenue, GAAP
12
%
33
%
16
%
33
%
General and administrative as % total
revenue, non-GAAP
16
%
17
%
15
%
18
%
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Operating income (loss)
reconciliation:
Operating income (loss), GAAP
$
977
$
(21,171
)
$
(6,183
)
$
(38,244
)
Plus: Stock-based compensation expense and
related payroll tax expense
10,627
13,495
21,755
27,992
Plus: Certain litigation-related expenses,
net of recoveries
(8,462
)
2,975
(9,834
)
3,859
Plus: Non-cash impairment charge
associated with corporate headquarters
563
—
563
—
Plus: Non-cash capitalized internal-use
software impairment
517
—
517
—
Plus: Capitalized internal-use software
and intangible amortization
3,392
2,207
6,413
4,239
Plus: Restructuring charges
—
6,682
—
6,682
Plus: Certain severance costs
—
—
—
830
Plus: Loss on disposal of assets
—
—
—
38
Plus: Transaction costs
—
322
—
358
Operating income, non-GAAP
7,614
4,510
13,231
5,754
Operating margin, GAAP
1
%
(38
)%
(5
)%
(36
)%
Operating margin, non-GAAP
11
%
8
%
10
%
5
%
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Net income (loss)
reconciliation:
Net income (loss), GAAP
$
5,729
$
(17,076
)
$
3,373
$
(30,782
)
Plus: Stock-based compensation expense and
related payroll tax expense
10,627
13,495
21,755
27,992
Plus: Certain litigation-related expenses,
net of recoveries
(8,462
)
2,975
(9,834
)
3,859
Plus: Non-cash impairment charge
associated with corporate headquarters
563
—
563
—
Plus: Non-cash capitalized internal-use
software impairment
517
—
517
—
Plus: Capitalized internal-use software
and intangible amortization
3,392
2,207
6,413
4,239
Plus: Restructuring charges
—
6,682
—
6,682
Plus: Certain severance costs
—
—
—
830
Plus: Loss on disposal of assets
—
38
Plus: Transaction costs
—
322
—
358
Less: Tax impact of non-GAAP adjustments
(1)
(3,207
)
(2,243
)
(5,806
)
(3,450
)
Net income, non-GAAP
9,159
6,362
16,981
9,766
Fully diluted net income (loss) per share
attributable to Class A and Class B common stockholders, GAAP
$
0.03
$
(0.11
)
$
0.02
$
(0.19
)
Fully diluted weighted average Class A and
Class B common shares outstanding, GAAP
170,472,824
162,324,314
171,608,366
162,005,150
Fully diluted net income per share
attributable to Class A and Class B common stockholders,
non-GAAP
$
0.05
$
0.04
$
0.10
$
0.05
Fully diluted Class A and Class B common
shares outstanding, non-GAAP
170,472,824
177,843,165
171,608,366
178,069,754
_________________
(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
25.85% and 26.06% for the six months ended June 30, 2024 and 2023,
respectively.
OLO INC.
Non-GAAP Free Cash Flow
(Unaudited)
(in thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Net cash provided by operating
activities
$
18,131
$
2,019
$
24,158
$
9,266
Purchase of property and equipment
(299
)
—
(367
)
—
Capitalized internal-use software
(3,682
)
(3,897
)
(6,831
)
(7,279
)
Non-GAAP free cash flow
$
14,150
$
(1,878
)
$
16,960
$
1,987
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version on businesswire.com: https://www.businesswire.com/news/home/20240731034762/en/
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