Olo Announces First Quarter 2024 Financial Results

NEW YORK–(BUSINESS WIRE)–Olo Inc. (NYSE:OLO) (“Olo” or the “Company”), a leading open SaaS platform for restaurants, today announced financial results for the first quarter ended March 31, 2024.

“In Q1, we got off to a great start in delivering on our 2024 financial targets, including 27% year-over-year revenue growth and non-GAAP operating margin expansion to 8%”Post this

“In Q1, we got off to a great start in delivering on our 2024 financial targets, including 27% year-over-year revenue growth and non-GAAP operating margin expansion to 8%,” said Noah Glass, Olo’s Founder and CEO. “We are also very excited about our new partnerships with NCR Voyix and Qu, which move us closer to launching full-stack Pay functionality later this year and will expand our guest data access into non-digital transactions, where more than 80% of restaurant industry transactions are conducted. With omnichannel guest data at scale and the AI and machine learning solutions to leverage it, we believe Olo is uniquely positioned to help brands deliver more personalized guest experiences that increase sales and grow guest lifetime value.”

First Quarter Financial and Other Highlights

  • Total revenue increased 27% year-over-year to $66.5 million.
  • Total platform revenue increased 28% year-over-year to $65.8 million.
  • Gross profit increased 11% year-over-year to $37.2 million, and was 56% of total revenue.
  • Non-GAAP gross profit increased 12% year-over-year to $41.5 million, and was 62% of total revenue.
  • Operating loss was $7.2 million, or (11)% of total revenue, compared to operating loss of $17.1 million, or (33)% of total revenue, a year ago.
  • Non-GAAP operating income was $5.6 million, or 8% of total revenue, compared to $1.2 million, or 2% of total revenue, a year ago.
  • Net loss was $2.4 million, or $0.01 per share, compared to a net loss of $13.7 million, or $0.08 per share a year ago.
  • Non-GAAP net income was $7.8 million or $0.05 per share, compared to non-GAAP net income of $3.4 million or $0.02 per share a year ago.
  • Cash, cash equivalents, and short- and long-term investments totaled $377.4 million as of March 31, 2024.
  • Total shares repurchased were approximately 2.8 million for approximately $15.2 million, bringing total repurchases under the current program to 14.3 million shares for approximately $93.1 million and leaving approximately $6.9 million remaining on the current authorization as of March 31, 2024.
  • Average revenue per unit (ARPU) increased 29% year-over-year, and increased 4% sequentially to approximately $816.
  • Dollar-based net revenue retention (NRR) was above 120%.
  • Ending active locations were approximately 81,000, up approximately 1,000 from the quarter ended December 31, 2023.

First Quarter and Recent Business Highlights

  • Newly announced point of sale (POS) integrations with NCR Voyix and Qu unlock non-digital transaction data through full-stack Olo Pay payments and integrations into the Engage Guest Data Platform, expanding Olo’s omnichannel data capabilities.
  • In enterprise, Quiznos, a fast-casual sandwich chain, deployed Ordering, Rails, Dispatch, Pay, and Engage Sentiment modules. Dutch Bros, a fast-growing coffee chain, is set to deploy Order and Pay modules across their more than 850 locations by the end of the year, marking their first investment in digital ordering.
  • Over a dozen new emerging enterprise brands, including moonbowls and RAKKAN Ramen, implemented multiple Olo modules, while others like Bluestone Lane and Mendocino Farms expanded into Pay, and Panini Kabob Grill and Uncle Julio’s expanded into Engage.
  • Announced 13 product enhancements during Olo’s 2024 Spring Release event, available by visiting www.olo.com/quarterly-release/spring-2024. Highlights include Smart Cross-Sells, an AI-powered, dynamic item suggestion feature, and Marketing Attribution Reporting for Engage customers that calculates the ROI of campaigns to influence future guest behavior better. Also announced deeper partner integrations with Curbit, kea, and Sparkfly that further Olo’s commitment to an open ecosystem by improving kitchen capacity management, voice ordering, and guest engagement.
  • Announced that Olo’s board of directors authorized a new share repurchase program for up to $100 million of the Company’s Class A common stock. The authorization to repurchase has no expiration date and will be executed consistent with the Company’s capital allocation strategy.

Financial Outlook

As of May 7, 2024, Olo is issuing the following outlook:

For the second quarter of 2024, Olo expects to report:

  • Revenue in the range of $67.5 million to $68.0 million; and
  • Non-GAAP operating income in the range of $5.5 million to $5.9 million.

For fiscal year 2024, Olo expects to report:

  • Revenue in the range of $274.5 million to $276.5 million; and
  • Non-GAAP operating income in the range of $23.0 million to $24.5 million.

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