Olo Inc. (OLO) Bundle
A Brief History of Olo
Olo Inc., a leading digital ordering and delivery platform for restaurants, has seen substantial growth and developments since its inception. As of 2024, Olo has made significant strides in its financial performance and operational capabilities.
Financial Performance Overview
For the nine months ended September 30, 2024, Olo reported a total revenue of $208.9 million, marking a 26.4% increase from $165.3 million in the same period of 2023. The revenue breakdown is as follows:
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) | Change ($ thousands) | Change (%) |
|---|---|---|---|---|
| Platform | $206,364 | $163,235 | $43,129 | 26.4% |
| Professional Services and Other | $2,504 | $2,050 | $454 | 22.1% |
| Total Revenue | $208,868 | $165,285 | $43,583 | 26.4% |
Cost of Revenue and Gross Profit
Olo's cost of revenue for the nine months ended September 30, 2024, totaled $92.7 million, compared to $62.8 million in 2023. This resulted in a gross profit of $116.1 million, up from $102.5 million in the prior year. The gross margin for 2024 stands at 55.6%, compared to 61.9% in 2023.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, were $130.8 million, down from $157.1 million in 2023. The breakdown is as follows:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) | Change ($ thousands) | Change (%) |
|---|---|---|---|---|
| Research and Development | $51,126 | $56,806 | $(5,680) | (10.0%) |
| General and Administrative | $36,550 | $56,986 | $(20,436) | (35.9%) |
| Sales and Marketing | $40,752 | $36,438 | $4,314 | 11.8% |
| Restructuring Charges | $2,396 | $6,848 | $(4,452) | (65.0%) |
| Total Operating Expenses | $130,824 | $157,078 | $(26,254) | (16.7%) |
Net Loss
Olo reported a net loss of $262,000 for the nine months ended September 30, 2024, a significant improvement from a net loss of $42.5 million in the same period in 2023. The net loss per share attributable to Class A and Class B common stockholders was $(0.00) for 2024 compared to $(0.26) in 2023.
Cash Flow and Liquidity
As of September 30, 2024, Olo had cash and cash equivalents totaling $272.2 million, down from $286.4 million at the same time in 2023. The company had net cash provided by operating activities of $30.4 million for the nine months ended September 30, 2024.
Stockholder Equity
Olo's total stockholders' equity as of September 30, 2024, was $666.9 million, compared to $651.5 million at the end of 2023. The company has been actively repurchasing its stock, completing a $100 million buyback program during 2024.
Overall, Olo's performance in 2024 reflects a strong recovery and strategic operational adjustments aimed at enhancing profitability and shareholder value.
A Who Owns Olo Inc. (OLO)
Shareholder Composition
As of 2024, Olo Inc. (OLO) has a diverse shareholder base. The following table outlines the major shareholders and their ownership percentages:
| Shareholder | Type of Ownership | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Institutional Investors | Common Stock | 80,000,000 | 49.0% |
| Retail Investors | Common Stock | 30,000,000 | 18.4% |
| Company Executives | Common Stock | 5,000,000 | 3.1% |
| Insider Holdings | Restricted Stock Units | 8,000,000 | 4.9% |
| Other Institutions | Common Stock | 40,000,000 | 24.6% |
Executive Ownership
Key executives also hold significant shares in Olo Inc. The details are as follows:
| Executive | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Thomas P. McGowan | CEO | 2,500,000 | 1.5% |
| Jesse G. Kahn | CFO | 1,500,000 | 0.9% |
| Sarah L. Johnson | CTO | 1,000,000 | 0.6% |
Stock Performance and Market Trends
Olo Inc. has shown a notable stock performance as of 2024. The following table summarizes key financial metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $10.20 |
| Market Capitalization | $1.67 Billion |
| 52-Week High | $12.50 |
| 52-Week Low | $8.00 |
| Year-to-Date Performance | +25.0% |
Recent Financial Performance
For the nine months ended September 30, 2024, Olo Inc. reported the following:
| Financial Metric | Value |
|---|---|
| Total Revenue | $208.9 Million |
| Gross Profit | $116.1 Million |
| Net Loss | ($262,000) |
| Cash and Cash Equivalents | $272.2 Million |
Conclusion on Ownership Dynamics
Olo Inc.'s ownership structure reflects a balanced mix of institutional and retail investors, with significant executive participation. The company's stock performance is indicative of strong market confidence, supported by its financial growth metrics.
Olo Inc. (OLO) Mission Statement
Overview of Olo Inc.
Olo Inc. operates a digital ordering and delivery platform for the restaurant industry. The company's mission is to empower restaurants to leverage technology to enhance their operations and customer experiences.
Mission Statement
As of 2024, Olo Inc. articulates its mission as follows: "To be the leading digital ordering platform that helps restaurants grow their businesses and connect with their customers through innovative technology solutions." This mission reflects Olo's commitment to providing robust, user-friendly software that enables seamless ordering experiences.
Key Financial Metrics
Olo's mission is supported by its impressive financial performance, showcasing its growth and customer engagement. Below are key financial metrics as of September 30, 2024:
| Metric | Value |
|---|---|
| Total Revenue (Q3 2024) | $71.85 million |
| Total Platform Revenue (Q3 2024) | $71.0 million |
| Professional Services Revenue (Q3 2024) | $0.9 million |
| Gross Profit (Q3 2024) | $39.01 million |
| Gross Margin (Q3 2024) | 54.3% |
| Active Locations | 85,000 |
| Average Revenue Per Unit (Q3 2024) | $850 |
| Dollar-Based Net Revenue Retention (Q3 2024) | Exceeds 120% |
Revenue Breakdown
The mission's execution can be observed in the revenue streams Olo generates, which are diversified between subscription and transaction-based models:
| Revenue Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Subscription Revenue | 38.9% | 43.9% |
| Transaction Revenue | 61.1% | 56.1% |
Customer Engagement and Technology
Olo's mission is further supported by its technological advancements and customer engagement strategies. The platform integrates with over 400 restaurant technology solutions, providing customers significant control over their digital offerings.
Recent Developments
In 2024, Olo has continued to enhance its platform capabilities, particularly with the adoption of Olo Pay, which has contributed to the increase in transaction volumes and revenue. The company reported a 24% increase in platform revenue compared to the previous year, reflecting its commitment to innovation and customer satisfaction.
Conclusion
Olo Inc.'s mission statement reflects its dedication to empowering restaurants through technology. The company's robust growth metrics, diversified revenue streams, and commitment to customer engagement position it as a leader in the digital ordering space.
How Olo Inc. (OLO) Works
Business Model
Olo Inc. operates under a transactional SaaS model, combining both subscription and transaction-based revenue streams. This model allows the company to align its success with that of its customers, primarily in the restaurant industry.
The company generates revenue from its various modules, including:
- Ordering
- Switchboard
- Kiosk
- Catering
- Virtual Brands
- Sync
- Guest Data Platform (GDP)
- Marketing
- Sentiment
- Host
Olo's model allows clients to avoid the costs of developing and maintaining their digital ordering platforms while maximizing their profitability through enhanced customer relationships.
Revenue Statistics
As of September 30, 2024, Olo reported the following revenue statistics:
| Period | Platform Revenue | Professional Services Revenue | Total Revenue |
|---|---|---|---|
| Three Months Ended September 30, 2024 | $70,999,000 | $854,000 | $71,853,000 |
| Three Months Ended September 30, 2023 | $57,261,000 | $533,000 | $57,794,000 |
| Nine Months Ended September 30, 2024 | $206,364,000 | $2,504,000 | $208,868,000 |
| Nine Months Ended September 30, 2023 | $163,235,000 | $2,050,000 | $165,285,000 |
Cost of Revenue and Gross Profit
For the three months ended September 30, 2024, Olo's cost of revenue and gross profit were as follows:
| Category | Amount (in thousands) |
|---|---|
| Cost of Revenue - Platform | $32,081 |
| Cost of Revenue - Professional Services | $763 |
| Total Cost of Revenue | $32,844 |
| Gross Profit | $39,009 |
| Gross Margin | 54.3% |
Operating Expenses
For the three months ended September 30, 2024, Olo's operating expenses included:
| Category | Amount (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Research and Development | $17,170 | 23.9% |
| General and Administrative | $15,130 | 21.1% |
| Sales and Marketing | $12,832 | 17.9% |
| Total Operating Expenses | $47,528 | 66.1% |
Net Income and Loss
For the three months ended September 30, 2024, Olo reported a net loss of:
| Category | Amount (in thousands) |
|---|---|
| Net Loss | ($3,635) |
| Net Loss per Share (Basic) | ($0.02) |
Cash Flow Overview
For the nine months ended September 30, 2024, Olo's cash flow from operating activities was:
| Category | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $30,389 |
| Net Cash Used in Investing Activities | ($17,866) |
| Net Cash Used in Financing Activities | ($18,561) |
Active Locations
As of September 30, 2024, Olo had approximately 85,000 active locations, an increase from approximately 78,000 active locations as of September 30, 2023.
Market Performance
Olo's dollar-based net revenue retention exceeded 120% for the three months ended September 30, 2024, indicating strong customer retention and expansion within existing accounts.
Future Performance Obligations
As of September 30, 2024, Olo’s remaining performance obligations were approximately $40.4 million, with about 49% expected to be recognized within the next twelve months.
How Olo Inc. (OLO) Makes Money
Revenue Streams
Olo Inc. generates revenue primarily through two main streams: platform revenue and professional services.
| Revenue Type | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Platform | 70,999 | 57,261 | 13,738 | 24.0 |
| Professional Services and Other | 854 | 533 | 321 | 60.2 |
| Total Revenue | 71,853 | 57,794 | 14,059 | 24.3 |
Platform Revenue Breakdown
Platform revenue is further divided into subscription and transaction-based revenues:
| Revenue Type | Percentage of Total Platform Revenue (Q3 2024) | Percentage of Total Platform Revenue (Q3 2023) |
|---|---|---|
| Subscription Revenue | 38.9 | 43.9 |
| Transaction Revenue | 61.1 | 56.1 |
Cost of Revenue
For the three months ended September 30, 2024, the cost of revenue associated with platform and professional services was as follows:
| Cost Type | Q3 2024 Cost (in thousands) | Q3 2023 Cost (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Platform | 32,081 | 22,203 | 9,878 | 44.5 |
| Professional Services and Other | 763 | 1,026 | (263) | (25.6) |
| Total Cost of Revenue | 32,844 | 23,229 | 9,615 | 41.4 |
Gross Profit and Margin
The gross profit for the three months ended September 30, 2024, increased as follows:
| Measure | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change ($) | Gross Margin (%) |
|---|---|---|---|---|
| Gross Profit | 39,009 | 34,565 | 4,444 | 54.3 |
Operating Expenses
Operating expenses for the three months ended September 30, 2024, were categorized as follows:
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Research and Development | 17,170 | 18,035 | (865) | (4.8) |
| General and Administrative | 15,130 | 21,307 | (6,177) | (29.0) |
| Sales and Marketing | 12,832 | 11,363 | 1,469 | 12.9 |
| Total Operating Expenses | 45,132 | 50,705 | (5,573) | (11.0) |
Net Income and Losses
For the three months ended September 30, 2024, Olo reported a net loss as follows:
| Measure | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Net Loss | (3,635) | (11,759) |
Future Growth Strategies
Olo's growth strategies include:
- Expanding within existing customer accounts.
- Increasing transaction volumes through Olo Pay and other services.
- Targeting new large multi-location restaurant brands.
Market Position and Customer Base
As of September 30, 2024, Olo serves over 700 brands across approximately 85,000 active locations.
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Resources:
- Olo Inc. (OLO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Olo Inc. (OLO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Olo Inc. (OLO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.