Olo Inc (OLO) Reports 22% Revenue Growth and 33% Increase in ARPU in Q3 2023
Olo Inc (NYSE:OLO) reported a 22% year-over-year increase in total revenue, reaching $57.8 million in Q3 2023.
Average revenue per unit (ARPU) saw a significant 33% growth year-over-year, and a 4% sequential increase to approximately $742.
Despite an operating loss of $16.3 million, non-GAAP operating income was $5.7 million, compared to $3.0 million a year ago.
The company repurchased approximately 2.0 million shares for approximately $13.0 million, leaving approximately $37.0 million remaining on the authorization.
Released on November 6, 2023, Olo Inc (NYSE:OLO)'s third quarter financial results reflect a strong performance with a 22% year-over-year increase in total revenue, reaching $57.8 million. The company's total platform revenue also saw a 24% year-over-year increase to $57.3 million. Despite these positive figures, the company reported an operating loss of $16.3 million, compared to an operating loss of $15.9 million a year ago.
Financial Highlights
Notably, Olo Inc (NYSE:OLO)'s gross profit increased by 9% year-over-year to $34.6 million, representing 60% of total revenue. The non-GAAP gross profit saw a 12% year-over-year increase to $38.8 million, accounting for 67% of total revenue. The net loss was $11.8 million or $0.07 per share, compared to a net loss of $14.6 million or $0.09 per share a year ago. However, non-GAAP net income was $7.6 million or $0.04 per share, compared to non-GAAP net income of $3.6 million or $0.02 per share a year ago.
Furthermore, the company's cash, cash equivalents, and short- and long-term investments totaled $397.6 million as of September 30, 2023. The company also repurchased approximately 2.0 million shares for approximately $13.0 million, bringing total repurchases under the program to 8.8 million shares for approximately $63.0 million and leaving approximately $37.0 million remaining on the authorization.
Performance Analysis
Olo Inc (NYSE:OLO) has shown strong performance in Q3 2023, with significant growth in revenue and ARPU. The company's continued efforts to innovate and provide superior guest experiences have contributed to these positive results. Despite the operating loss, the company's non-GAAP operating income and net income show promising signs of financial stability and potential for future growth.
Looking Ahead
For the fourth quarter of 2023, Olo expects to report revenue in the range of $58.5 million to $59.0 million, and non-GAAP operating income in the range of $6.2 million to $6.6 million. For the fiscal year 2023, the company expects to report revenue in the range of $223.8 million to $224.3 million, and non-GAAP operating income in the range of $17.6 million to $18.0 million.
These projections reflect Olo's confidence in building on its third quarter results and its position to help restaurant brands run their businesses more efficiently and drive more traffic.
Explore the complete 8-K earnings release (here) from Olo Inc for further details.
This article first appeared on GuruFocus.
