Olo (OLO) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 28% year-over-year to $70.5 million, with platform revenue up 27% to $69.6 million and ARPU rising 19% to $852; active locations increased by 1,000 to 82,000, serving over 700 brands.

• Net income was $5.7 million, reversing a net loss of $17.1 million a year ago; non-GAAP operating income was $7.6 million (11% margin), up from $4.5 million (8% margin) year-over-year.

• Expanded with major brands, saw returning customers, and launched 19 product enhancements, including loyalty for Borderless accounts and expanded Catering+ deployments.

• Announced new POS integration partnerships for Olo Pay and Engage, advancing full-stack payment processing and data aggregation.

• Completed $100 million share repurchase program, repurchasing 1.4 million shares in Q2 for $6.9 million.

Financial highlights

• Gross profit was $44.3 million (non-GAAP, 63% margin), up 16% year-over-year; GAAP gross profit was $39.9 million (57% margin).

• Non-GAAP net income was $9.2 million ($0.05 per share), up from $6.4 million ($0.04 per share) a year ago.

• Free cash flow for Q2 was $14.2 million, compared to negative $1.9 million a year ago.

• Cash, cash equivalents, and investments totaled $387.0 million as of June 30, 2024.

• Operating income was $7.6 million (11% margin), up from $4.5 million a year ago.

Outlook and guidance

• Q3 2024 revenue expected between $70.8 million and $71.3 million; non-GAAP operating income between $6.0 million and $6.4 million.

• Full-year 2024 revenue guidance raised to $279.5 million–$280.5 million; non-GAAP operating income $25.6 million–$26.4 million.

• Olo Pay revenue for 2024 expected in the mid-$60 million range, mostly from card-not-present transactions.

• Full-year gross margin expected in the low 60% range, with a 200 bps decline in the second half due to revenue mix shift.

• Management expects continued ARPU and net revenue retention growth to drive near-term performance.