On July 31, 2024, Olo Inc (OLO, Financial) released its 8-K filing for the second quarter of 2024, showcasing a notable financial performance that exceeded analyst estimates. Olo Inc is an open Software as a Service (SaaS) platform for restaurants, enabling digital ordering, delivery, front-of-house management, and payments, while enhancing direct guest relationships.
Performance Overview
Olo Inc reported a total revenue of $70.5 million for Q2 2024, marking a 28% year-over-year increase and surpassing the analyst estimate of $67.75 million. The company also reported a net income of $5.7 million, or $0.03 per share, compared to an estimated loss of $0.06 per share. This is a significant improvement from the net loss of $17.1 million, or $0.11 per share, reported in the same quarter last year.
Key Financial Achievements
Olo Inc's gross profit increased by 16% year-over-year to $39.9 million, representing 57% of total revenue. Non-GAAP gross profit also saw a 16% increase to $44.3 million, or 63% of total revenue. The company achieved an operating income of $1.0 million, a significant turnaround from the operating loss of $21.2 million reported a year ago. Non-GAAP operating income was $7.6 million, or 11% of total revenue, up from $4.5 million, or 8% of total revenue, in the previous year.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $70.5 million | $55.3 million |
| Gross Profit | $39.9 million | $34.5 million |
| Net Income | $5.7 million | $(17.1) million |
| Non-GAAP Operating Income | $7.6 million | $4.5 million |
Balance Sheet and Cash Flow
As of June 30, 2024, Olo Inc reported cash, cash equivalents, and short- and long-term investments totaling $387.0 million. The company’s balance sheet remains robust with total assets of $740.2 million and total liabilities of $81.9 million. Net cash provided by operating activities was $24.2 million for the first six months of 2024, a significant increase from $9.3 million in the same period last year.
Operational Highlights
Olo Inc's average revenue per unit (ARPU) increased by 19% year-over-year to approximately $852, and dollar-based net revenue retention (NRR) remained above 120%. The company ended the quarter with approximately 82,000 active locations, up by 1,000 from the previous quarter. Olo also announced an expanded point-of-sale (POS) relationship with TRAY and deployed its products across various enterprise and emerging enterprise brands.
Commentary and Outlook
“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.
Financial Outlook
For the third quarter of 2024, Olo Inc expects to report revenue in the range of $70.8 million to $71.3 million and non-GAAP operating income between $6.0 million and $6.4 million. For the full fiscal year 2024, the company anticipates revenue between $279.5 million and $280.5 million, with non-GAAP operating income ranging from $25.6 million to $26.4 million.
Olo Inc's strong financial performance and strategic initiatives underscore its position as a leading SaaS platform for the restaurant industry, driving value for its customers and shareholders alike.
Explore the complete 8-K earnings release (here) from Olo Inc for further details.
