Olo Announces First Quarter 2022 Financial Results

May 10, 2022

First Quarter Revenue Grew 18% Year-over-Year on Continued Location and Transaction Volume Growth

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,” 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.

Financial Outlook

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.

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 economic environment due to the uncertainty caused by, and the unprecedented nature of, the ongoing COVID-19 pandemic, 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. The situation regarding COVID-19 remains uncertain and could change rapidly, and Olo will continue to evaluate its potential impact on its business.

Webcast and Conference Call Information

Olo will host a conference call today, May 10, 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 digital 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 efficiency, and delight their guests. 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 against our peer group 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 across our peer group.

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, transaction costs, 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. We did not incur any payroll tax expense on equity compensation awards in the first quarter of 2021.

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 business metrics 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,” “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 second quarter of 2022 and the full year 2022, our future performance and growth and market opportunities, including with respect to Sync and Olo Pay, 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, the realization of any anticipated benefits in connection with our acquisition of Omnivore, and expectations regarding the impact of the 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, including any shift in consumer preferences as government measures in the United States have largely been lifted; the business of our customers and economic conditions, including rising inflation, labor shortages and increasing interest rates; our focus on the long-term and our investments in sustainable, profitable growth; our ability to acquire new customers and successfully retain existing customers; 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 as 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 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 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 March 31,
2022

 

As of December 31,
2021

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

463,733

 

 

$

514,445

 

Accounts receivable, net of allowances of $677 and $657, respectively

 

47,410

 

 

 

42,319

 

Contract assets

 

474

 

 

 

568

 

Deferred contract costs

 

2,551

 

 

 

2,567

 

Prepaid expenses and other current assets

 

9,763

 

 

 

5,718

 

Total current assets

 

523,931

 

 

 

565,617

 

Property and equipment, net

 

5,873

 

 

 

3,304

 

Intangible assets, net

 

24,713

 

 

 

19,635

 

Goodwill

 

207,607

 

 

 

162,956

 

Contract assets, noncurrent

 

521

 

 

 

387

 

Deferred contract costs, noncurrent

 

3,390

 

 

 

3,616

 

Operating lease right-of-use assets

 

17,920

 

 

 

 

Other assets, noncurrent

 

356

 

 

 

361

 

Total assets

$

784,311

 

 

$

755,876

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

3,360

 

 

$

2,184

 

Accrued expenses and other current liabilities

 

49,572

 

 

 

45,395

 

Unearned revenue

 

3,924

 

 

 

1,190

 

Operating lease liabilities, current

 

2,594

 

 

 

 

Total current liabilities

 

59,450

 

 

 

48,769

 

Unearned revenue, noncurrent

 

2,050

 

 

 

3,014

 

Operating lease liabilities, noncurrent

 

17,680

 

 

 

 

Other liabilities, noncurrent

 

126

 

 

 

2,343

 

Total liabilities

 

79,306

 

 

 

54,126

 

Stockholders’ equity:

 

 

 

Class A common stock, $0.001 par value; 1,700,000,000 shares authorized at March 31, 2022 and December 31, 2021; 89,660,186 and 78,550,530 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively. Class B common stock, $0.001 par value; 185,000,000 shares authorized at March 31, 2022 and December 31, 2021; 70,027,999 and 79,149,659 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively.

 

160

 

 

 

158

 

Preferred stock, $0.001 par value; 20,000,000 shares authorized at March 31, 2022 and December 31, 2021.

 

 

 

 

 

Additional paid-in capital

 

827,928

 

 

 

813,166

 

Accumulated deficit

 

(123,083

)

 

 

(111,574

)

Total stockholders’ equity

 

705,005

 

 

 

701,750

 

Total liabilities and stockholders’ equity

$

784,311

 

 

$

755,876

 

 

OLO INC.
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except share and per share amounts)

 

 

Three Months Ended
March 31,

 

 

2022

 

 

 

2021

 

Revenue:

 

 

 

Platform

$

41,466

 

 

$

34,923

 

Professional services and other

 

1,290

 

 

 

1,200

 

Total revenue

 

42,756

 

 

 

36,123

 

Cost of revenue:

 

 

 

Platform

 

11,024

 

 

 

5,607

 

Professional services and other

 

1,778

 

 

 

1,243

 

Total cost of revenue

 

12,802

 

 

 

6,850

 

Gross profit

 

29,954

 

 

 

29,273

 

Operating expenses:

 

 

 

Research and development

 

16,825

 

 

 

14,456

 

General and administrative

 

17,961

 

 

 

18,454

 

Sales and marketing

 

8,070

 

 

 

3,836

 

Total operating expenses

 

42,856

 

 

 

36,746

 

Loss from operations

 

(12,902

)

 

 

(7,473

)

Other income (expenses), net:

 

 

 

Other income (expense), net

 

58

 

 

 

(18

)

Change in fair value of warrant liability

 

 

 

 

(18,930

)

Total other income (expenses), net

 

58

 

 

 

(18,948

)

Loss before income taxes

 

(12,844

)

 

 

(26,421

)

(Benefit) provision for income taxes

 

(1,335

)

 

 

36

 

Net loss and comprehensive loss

$

(11,509

)

 

$

(26,457

)

Accretion of redeemable convertible preferred stock to redemption value

 

 

 

 

(14

)

Net loss attributable to Class A and Class B common stockholders

$

(11,509

)

 

$

(26,471

)

Net loss per share attributable to Class A and Class B common stockholders:

 

 

 

Basic

$

(0.07

)

 

$

(0.63

)

Diluted

$

(0.07

)

 

$

(0.63

)

Weighted-average Class A and Class B common shares outstanding:

 

 

 

Basic and diluted

 

159,190,371

 

 

 

41,855,757

 

 

OLO INC.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)

 

 

Three Months Ended
March 31, 2022

 

Three Months Ended
March 31, 2021

Operating activities

 

 

 

Net loss

$

(11,509

)

 

$

(26,457

)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

 

 

 

Depreciation and amortization

 

1,109

 

 

 

260

 

Stock-based compensation

 

11,708

 

 

 

5,402

 

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

 

248

 

 

 

88

 

Change in fair value of warrants

 

 

 

 

18,930

 

Amortization of operating lease right-of-use assets

 

552

 

 

 

 

Deferred income tax benefit

 

(1,421

)

 

 

 

Impairment of internal-use software

 

475

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

(4,888

)

 

 

(2,390

)

Contract assets

 

(40

)

 

 

(425

)

Prepaid expenses and other current assets

 

(3,515

)

 

 

(1,014

)

Deferred contract costs

 

242

 

 

 

(222

)

Accounts payable

 

909

 

 

 

(6,772

)

Accrued expenses and other current liabilities

 

4,186

 

 

 

8,524

 

Operating lease liabilities

 

(613

)

 

 

 

Unearned revenue

 

1,687

 

 

 

371

 

Other liabilities, noncurrent

 

(19

)

 

 

(58

)

Net cash (used in) provided by operating activities

 

(889

)

 

 

4,209

 

Investing activities

 

 

 

Purchases of property and equipment

 

(76

)

 

 

(106

)

Capitalized internal-use software

 

(2,462

)

 

 

(72

)

Acquisitions, net of cash acquired

 

(49,308

)

 

 

 

Net cash used in investing activities

 

(51,846

)

 

 

(178

)

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

 

845

 

 

 

19,195

 

Cash paid for employee payroll tax withholdings

 

(845

)

 

 

 

Proceeds from exercise of warrants

 

 

 

 

392

 

Payment of deferred offering costs

 

(226

)

 

 

(448

)

Proceeds from exercise of stock options

 

2,249

 

 

 

2,099

 

Net cash provided by financing activities

 

2,023

 

 

 

506,779

 

Net (decrease) increase in cash and cash equivalents

 

(50,712

)

 

 

510,810

 

Cash and cash equivalents, beginning of period

 

514,445

 

 

 

75,756

 

Cash and cash equivalents, end of period

$

463,733

 

 

$

586,566

 

 

OLO INC.
Reconciliation of GAAP to Non-GAAP Results (Unaudited)
(in thousands, except percentages)

 

 

Three Months Ended
March 31, 2022

 

Three Months Ended
March 31, 2021

Gross profit and gross margin reconciliation:

 

 

 

Platform gross profit, GAAP

$

30,442

 

 

$

29,316

 

Plus: Stock-based compensation expense and related payroll tax expense (1)

 

1,552

 

 

 

436

 

Plus: Amortization

 

628

 

 

 

138

 

Platform gross profit, non-GAAP

 

32,622

 

 

 

29,890

 

Services gross profit, GAAP

 

(488

)

 

 

(43

)

Plus: Stock-based compensation expense and related payroll tax expense (1)

 

259

 

 

 

115

 

Services gross profit, non-GAAP

 

(229

)

 

 

72

 

Total gross profit, GAAP

 

29,954

 

 

 

29,273

 

Total gross profit, non-GAAP

 

32,393

 

 

 

29,962

 

Platform gross margin, GAAP

 

73

%

 

 

84

%

Platform gross margin, non-GAAP

 

79

%

 

 

86

%

Services gross margin, GAAP

 

(38

) %

 

 

(4

) %

Services gross margin, non-GAAP

 

(18

) %

 

 

6

%

Total gross margin, GAAP

 

70

%

 

 

81

%

Total gross margin, non-GAAP

 

76

%

 

 

83

%

Sales and marketing reconciliation:

 

 

 

Sales and marketing, GAAP

 

8,070

 

 

 

3,836

 

Less: Stock-based compensation expense and related payroll tax expense (1)

 

1,620

 

 

 

388

 

Less: Amortization

 

301

 

 

 

 

Less: Transaction costs

 

79

 

 

 

 

Sales and marketing, non-GAAP

 

6,070

 

 

 

3,448

 

Sales and marketing as % total revenue, GAAP

 

19

%

 

 

11

%

Sales and marketing as % total revenue, non-GAAP

 

14

%

 

 

10

%

Research and development reconciliation:

 

 

 

Research and development, GAAP

 

16,825

 

 

 

14,456

 

Less: Stock-based compensation expense and related payroll tax expense (1)

 

3,551

 

 

 

3,452

 

Less: Impairment of internal-use software

 

475

 

 

 

 

Research and development, non-GAAP

 

12,799

 

 

 

11,004

 

Research and development as % total revenue, GAAP

 

39

%

 

 

40

%

Research and development as % total revenue, non-GAAP

 

30

%

 

 

30

%

General and administrative reconciliation:

 

 

 

General and administrative, GAAP

 

17,961

 

 

 

18,454

 

Less: Charitable donation of Class A common stock

 

 

 

 

5,125

 

Less: Stock-based compensation expense and related payroll tax expense (1)

 

5,096

 

 

 

3,858

 

Less: Amortization

 

31

 

 

 

 

Less: Transaction costs

 

1,056

 

 

 

 

General and administrative, non-GAAP

 

11,778

 

 

 

9,471

 

General and administrative as % total revenue, GAAP

 

42

%

 

 

51

%

General and administrative as % total revenue, non-GAAP

 

28

%

 

 

26

%

__________________

(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. We did not incur any payroll tax expense on equity compensation awards in the first quarter of 2021.

 

OLO INC.
Reconciliation of GAAP to Non-GAAP Results (Unaudited)
(in thousands, except percentages)

 

 

Three Months Ended
March 31, 2022

 

Three Months Ended
March 31, 2021

Operating income (loss) reconciliation:

 

 

 

Operating loss, GAAP

$

(12,902

)

 

$

(7,473

)

Plus: Stock-based compensation expense and related payroll tax expense (1)

 

12,078

 

 

 

8,249

 

Plus: Charitable donation of Class A common stock

 

 

 

 

5,125

 

Plus: Impairment of internal-use software

 

475

 

 

 

 

Plus: Amortization

 

960

 

 

 

138

 

Plus: Transaction costs

 

1,135

 

 

 

 

Operating income, non-GAAP

 

1,746

 

 

 

6,039

 

Operating margin, GAAP

 

(30

) %

 

 

(21

) %

Operating margin, non-GAAP

 

4

%

 

 

17

%

Net income (loss) reconciliation:

 

 

 

Net loss, GAAP

 

(11,509

)

 

 

(26,471

)

Plus: Stock-based compensation expense and related payroll tax expense (1)

 

12,078

 

 

 

8,249

 

Plus: Charitable donation of Class A common stock

 

 

 

 

5,125

 

Plus: Impairment of internal-use software

 

475

 

 

 

 

Plus: Amortization

 

960

 

 

 

138

 

Plus: Change in fair value of warrant liability

 

 

 

 

18,930

 

Plus: Transaction costs

 

1,135

 

 

 

 

Less: Transaction-related deferred income tax benefit

 

(1,421

)

 

 

 

Net income, non-GAAP

 

1,718

 

 

 

5,971

 

Fully diluted net loss per share attributable to Class A and Class B common stockholders, GAAP

$

(0.07

)

 

$

(0.63

)

Fully diluted weighted average Class A and Class B common shares outstanding, GAAP

 

159,190,371

 

 

 

41,855,757

 

Fully diluted net income per share attributable to Class A and Class B common stockholders, non-GAAP

$

0.01

 

 

$

0.03

 

Fully diluted Class A and Class B common shares outstanding, non-GAAP

 

183,263,032

 

 

 

185,454,798

 

__________________

(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. We did not incur any payroll tax expense on equity compensation awards in the first quarter of 2021.

 

OLO INC.
Non-GAAP Free Cash Flow (Unaudited)
(in thousands)

 

 

Three Months Ended
March 31,

 

 

2022

 

 

 

2021

 

Net cash (used in) provided by operating activities

$

(889

)

 

$

4,209

 

Purchase of property and equipment

 

(76

)

 

 

(106

)

Capitalization of internal-use software

 

(2,462

)

 

 

(72

)

Non-GAAP free cash flow

$

(3,427

)

 

$

4,031

 

 

Media
Olo@icrinc.com

Investor Relations
InvestorRelations@olo.com
646.389.2754

Source: Olo Inc.