NEW YORK–(BUSINESS WIRE)–Olo Inc. (NYSE:OLO), a leading open SaaS platform for restaurants that enables digital hospitality at every touchpoint, today announced financial results for the first quarter ended March 31, 2022.
“In the first quarter, Olo’s revenue and profitability momentum continued, as we took meaningful strides towards enabling digital hospitality. Our platform supported year-over-year growth in transaction volume, and we expanded our product portfolio and use cases, added new and expanded existing relationships, and grew our technology partner ecosystem”
“In the first quarter, Olo’s revenue and profitability momentum continued, as we took meaningful strides towards enabling digital hospitality. Our platform supported year-over-year growth in transaction volume, and we expanded our product portfolio and use cases, added new and expanded existing relationships, and grew our technology partner ecosystem,” said Noah Glass, Olo’s Founder and CEO.
First Quarter Financial and Other Highlights
- Total revenue increased 18% year-over-year to $42.8 million.
- Platform revenue increased 19% year-over-year to $41.5 million.
- Gross profit increased 2% year-over-year to $30.0 million, and was 70% of total revenue.
- Non-GAAP gross profit increased 8% year-over-year to $32.4 million, and was 76% of total revenue.
- Operating loss was $12.9 million.
- Non-GAAP operating income was $1.7 million.
- Net loss was $11.5 million or $0.07 per share, compared to a net loss of $26.5 million or $0.63 per share a year ago.
- Non-GAAP net income was $1.7 million or $0.01 per share, compared to non-GAAP net income of $6.0 million or $0.03 per share a year ago.
- Cash and cash equivalents were $463.7 million as of March 31, 2022.
- Ending active locations increased 19% year-over-year to approximately 82,000.
- Average revenue per unit (ARPU) decreased 2% year-over-year, and increased 2% sequentially to approximately $516.
- Dollar-based net revenue retention (NRR) was approximately 107%.
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.”
First Quarter and Recent Business Highlights
- Olo completed the acquisition of Omnivore Technologies, Inc., or Omnivore, a restaurant technology provider that connects restaurants’ point of sale systems with technologies that improve efficiency and increase profitability. Through the acquisition, restaurant brands have gained access to more than 100 additional technology partners, expanding Olo’s technology partner network to more than 300 providers, broadening Olo’s platform capabilities, and allowing restaurants to connect to apps and technologies that streamline operations, improve efficiency, enhance guest experience, and increase their profitability.
- Olo showcased the extensibility of its platform through the enablement of on-premise capabilities as well as expanding into convenience stores, or C-Stores. Olo enabled on-premise solutions through the usage of Serve, our native white-label branded ordering experience. Nando’s, a fast-casual restaurant, began utilizing Serve as its exclusive dine-in ordering system, increasing its on-premise digital ordering by more than 500% in less than a year. Additionally, Olo deployed its Ordering module at Kwik Trip, an enterprise C-Store, enabling the C-Store to help its guests order ready-to-eat meals. Multi-unit C-Stores represent an emerging vertical for Olo, expanding Olo’s total addressable location count by an estimated 55,000 locations.
- Olo expanded relationships with existing brands, including several restaurants that added Customer Engagement solutions to their existing Olo suite. Notably, Bojangles and El Pollo Loco, both quick service restaurants, or QSRs, deployed the Marketing Automation and Customer Data Platform modules in a matter of weeks, enabling the brands to collect, analyze, and act on guest data in order to deepen its guest relationships, boost revenue, and increase customer lifetime value.
- Olo introduced Sync, a simplified listing management solution, enabling restaurants to provide up-to-date data that is automatically synced between Olo and more than 50 digital publishers to ensure store information is consistent no matter where guests search. Sync’s ability to enable restaurants to be discoverable through local listings is designed to drive direct orders and improve listing return on investment.
- Olo hosted Beyond4, Olo’s annual customer conference. The conference, which returned in-person, covered the latest digital strategies powered by Olo — from hands-on instruction for better day-to-day use of the platform to previews of what Olo is working on next. Beyond4 provides Olo customers unique opportunities to engage in strategic thought leadership with other restaurants teams on addressing challenges and opportunities in the industry. Enthusiasm during the conference further ensconced the belief that digital leaders in the restaurant space will use one platform, the Olo platform, to understand and serve every guest that transacts with them.
- Olo recommended nine non-profits to its independent donor advised fund sponsor, Tides Foundation, to receive grants in connection with the Olo for Good initiative. Tides Foundation subsequently donated a total of $2.1 million in grants to American Forests, Appalachian Trail Conservancy, Emma’s Torch, Giving Kitchen, Heart of Dinner, The LEE Initiative, The Okra Project, Partnership with Native Americans, and World Central Kitchen. Grant recipients are non-profits focused on diversity, equity, and inclusion, ending childhood hunger and increasing access to food, supporting the restaurant industry’s frontline workers, and protecting natural resources and reducing waste and emissions. Olo intends to recommend that the Tides Foundation make annual grants going forward until the total commitment is reached.
As of May 10, 2022, Olo is issuing the following outlook for the second quarter of 2022 and fiscal year 2022:
For the second quarter of 2022, Olo expects to report:
- Revenue in the range of $45.5 million to $46.0 million; and
- Non-GAAP operating income in the range of $0.6 million to $1.0 million.
For the fiscal year 2022, Olo expects to report:
- Revenue in the range of $195.0 million to $197.0 million; and
- Non-GAAP operating income in the range of $7.6 million to $9.2 million.