Olo Inc (OLO) Reports Robust Revenue Growth in Q4 and Full-Year 2023
Full-Year Revenue: Olo Inc (NYSE:OLO) achieved $228.3 million in 2023, marking a 23% increase from the previous year.
Q4 Revenue: Fourth-quarter revenue rose to $63.0 million, a 27% year-over-year growth.
Net Loss: The company reported a net loss of $15.7 million in Q4, widening from $8.2 million in the same period last year.
Non-GAAP Net Income: On a non-GAAP basis, net income was $8.5 million, or $0.05 per diluted share, up from $4.4 million, or $0.02 per diluted share, in Q4 of the prior year.
Gross Profit: Gross profit increased by 6% year-over-year to $36.4 million in Q4, representing 58% of total revenue.
Cash Position: Cash, cash equivalents, and investments totaled $388.3 million as of December 31, 2023.
Share Repurchases: Olo repurchased approximately 2.8 million shares for $14.9 million in Q4, with $22.1 million remaining on the authorization.
On February 21, 2024, Olo Inc (NYSE:OLO), a leading restaurant technology provider, released its 8-K filing, announcing financial results for the fourth quarter and full year ended December 31, 2023. Olo's platform, which powers restaurant brands' on-demand digital commerce operations, has shown significant growth in revenue, driven by increased adoption and strategic enterprise deployments.
Olo's CEO, Noah Glass, expressed satisfaction with the company's performance, stating, "We finished 2023 on a strong note by surpassing the high-end of both fourth-quarter revenue and non-GAAP operating income guidance." He highlighted the company's focus on delivering balanced growth with increased profitability and strategic investments in product development and data-driven initiatives.
Financial Performance and Challenges
Olo's revenue growth is a testament to the company's ability to expand its customer base and increase the average revenue per unit (ARPU), which rose 38% year-over-year. However, the company's operating loss widened to $20.5 million, or 33% of total revenue, compared to an operating loss of $10.9 million, or 22% of total revenue, a year ago. This increase in operating loss could pose challenges as the company continues to invest in growth initiatives.
The company's net loss also widened to $15.7 million, or $0.10 per diluted share, from $8.2 million, or $0.05 per diluted share, in the same quarter of the previous year. Despite this, non-GAAP net income improved, reflecting the company's ability to manage costs and improve operational efficiency on an adjusted basis.
Key Financial Metrics
Olo's financial achievements, including a robust cash position and disciplined share repurchases, underscore the company's commitment to shareholder value and financial stability. The company's strong cash reserves provide flexibility for future investments and operational needs.
Dollar-based net revenue retention (NRR) was approximately 120%, indicating the company's success in retaining and expanding revenue from existing customers. The ending active locations increased to approximately 80,000, up approximately 3% from the previous quarter, demonstrating the platform's growing adoption.
Gross merchandise volume (GMV) exceeded $26 billion for the year, and gross payment volume (GPV) reached $1 billion, highlighting the scale of transactions processed through Olo's platform.
"With our scale, reliability, and modularity, Olo is uniquely positioned to enable restaurants to drive sales, do more with less, and make every guest feel like a regular," said Noah Glass, Olos Founder and CEO.
Looking Ahead
For the first quarter of 2024, Olo anticipates revenue in the range of $64.0 million to $64.5 million and non-GAAP operating income between $5.1 million and $5.5 million. For the fiscal year 2024, the company expects revenue to be between $269.0 million and $272.0 million, with non-GAAP operating income projected to be between $22.0 million and $24.0 million.
Olo's performance reflects the strength of its platform and the strategic value it provides to restaurant brands. As the company continues to innovate and expand its offerings, it remains well-positioned to capitalize on the growing demand for digital commerce solutions in the restaurant industry.
For more detailed financial information and to view the full earnings release, please visit the SEC filing.
Explore the complete 8-K earnings release (here) from Olo Inc for further details.
This article first appeared on GuruFocus.
