PART I - FINANCIAL INFORMATION This section presents the unaudited condensed consolidated financial statements and management's analysis of Olo Inc.'s financial condition and results of operations [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Olo Inc.'s unaudited condensed consolidated financial statements for Q1 2025 report **$80.7 million** revenue and **$1.8 million** net income [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Olo Inc. reported **$764.6 million** in total assets, **$69.3 million** in liabilities, and **$695.3 million** in equity as of March 31, 2025 Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $287,488 | $286,757 | | Total current assets | $459,216 | $448,321 | | Goodwill | $207,781 | $207,781 | | **Total assets** | **$764,579** | **$754,776** | | **Liabilities & Equity** | | | | Total current liabilities | $57,921 | $59,594 | | **Total liabilities** | **$69,307** | **$71,553** | | **Total stockholders' equity** | **$695,272** | **$683,223** | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Olo Inc. reported **$80.7 million** total revenue for Q1 2025, a **21.3% increase** YoY, with **$1.8 million** net income and **$0.01** diluted EPS Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenue | $80,680 | $66,511 | | Gross Profit | $44,314 | $37,208 | | Loss from operations | ($2,416) | ($7,160) | | Net income (loss) | $1,806 | ($2,356) | | Diluted EPS | $0.01 | ($0.01) | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities for Q1 2025 was **$0.5 million**, with cash and cash equivalents ending at **$287.5 million** Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $548 | $6,027 | | Net cash used in investing activities | ($146) | ($11,016) | | Net cash provided by (used in) financing activities | $329 | ($14,144) | | **Net increase (decrease) in cash** | **$731** | **($19,133)** | | **Cash and cash equivalents, end of period** | **$287,488** | **$259,085** | [Notes to the Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue recognition, and fair value measurements, including **$48.9 million** in point-in-time revenue and **$9.4 million** in stock-based compensation - For Q1 2025, revenue recognized at a point in time was **$48.9 million**, while revenue transferred over time was **$31.8 million**[48](index=48&type=chunk) - As of March 31, 2025, remaining performance obligations were approximately **$46.0 million**, with **55%** expected to be recognized as revenue over the next twelve months[52](index=52&type=chunk) - Total stock-based compensation expense for Q1 2025 was **$9.4 million**, down from **$10.8 million** in Q1 2024[82](index=82&type=chunk) - The company settled a Securities Class Action lawsuit, recording an expense of **$9.0 million** in 2023. The court granted final approval in June 2024 and a class distribution order in March 2025[90](index=90&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Olo's Q1 2025 financial performance, highlighting **21.3% revenue growth** to **$80.7 million**, **88,000 active locations**, and **$911 ARPU** [Overview and Key Performance Indicators](index=25&type=section&id=Overview%20and%20Key%20Performance%20Indicators) Olo serves **750 restaurant brands** across **88,000 active locations**, with Q1 2025 showing **$911 ARPU** and **111% dollar-based net revenue retention** - Olo serves over **750 restaurant brands**, representing approximately **88,000 active locations** as of March 31, 2025[112](index=112&type=chunk) Key Performance Indicators (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Average Revenue Per Unit | $911 | $816 | | Ending Active Locations | 88,000 | 81,000 | - Dollar-based net revenue retention was **111%** for the quarter ended March 31, 2025, demonstrating the ability to retain and expand revenue from existing customers[118](index=118&type=chunk)[124](index=124&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Total revenue for Q1 2025 grew **21.3%** to **$80.7 million**, gross profit increased **19.1%** to **$44.3 million**, and operating loss was **$2.4 million** Revenue Comparison (in thousands) | Revenue Type | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Platform | $79,231 | $65,765 | $13,466 | 20.5% | | Professional services and other | $1,449 | $746 | $703 | 94.2% | | **Total Revenue** | **$80,680** | **$66,511** | **$14,169** | **21.3%** | - The increase in platform revenue was primarily driven by higher Olo Pay volume and increased Order revenue from customers[151](index=151&type=chunk) - Gross margin decreased from **55.9%** to **54.9%** YoY, driven by the growing percentage of revenue from Olo Pay, which has lower margins than other modules[156](index=156&type=chunk) - General and administrative expenses increased by **23.8%** to **$15.8 million**, primarily due to the impact of litigation-related insurance recoveries recorded in the prior-year period[158](index=158&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) Olo's liquidity totaled **$401.8 million** as of March 31, 2025, with a **$100 million** share repurchase program authorized but unused - Principal sources of liquidity as of March 31, 2025, totaled **$401.8 million** in cash, cash equivalents, and marketable securities[163](index=163&type=chunk) - A **$100 million** Class A common stock repurchase program was authorized on April 30, 2024, but no shares have been repurchased under this program as of March 31, 2025[165](index=165&type=chunk)[70](index=70&type=chunk) - The company had **$68.6 million** available under its revolving credit facility and no outstanding borrowings as of March 31, 2025[167](index=167&type=chunk) [Certain Non-GAAP Financial Measures](index=38&type=section&id=Certain%20Non-GAAP%20Financial%20Measures) Non-GAAP operating income for Q1 2025 was **$11.5 million**, a significant increase, while non-GAAP free cash flow was a usage of **$1.9 million** Reconciliation of GAAP Operating Loss to Non-GAAP Operating Income (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Operating loss, GAAP | ($2,416) | ($7,160) | | Stock-based compensation & related tax | $9,832 | $11,128 | | Certain litigation-related expenses, net | $0 | ($1,372) | | Software & intangible amortization | $4,111 | $3,021 | | **Operating income, non-GAAP** | **$11,527** | **$5,617** | Reconciliation of Net Cash from Operations to Non-GAAP Free Cash Flow (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $548 | $6,027 | | Purchase of property and equipment | ($93) | ($68) | | Capitalized internal-use software | ($2,356) | ($3,149) | | **Non-GAAP free cash flow** | **($1,901)** | **$2,810** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Olo's primary market risk is interest rate exposure on its short-term investment portfolio, with no significant foreign currency risk, though inflation could impact consumer spending - The company's primary market risk is interest rate risk related to its investments and credit facility. The majority of the investment portfolio is short-term, mitigating this risk[188](index=188&type=chunk)[190](index=190&type=chunk) - The company does not have material foreign currency exchange risk as its operations are denominated in U.S. dollars[191](index=191&type=chunk) - While inflation has not had a direct material effect, management acknowledges that persistent inflation could negatively impact consumer spending in the restaurant industry and increase costs[192](index=192&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded Olo's disclosure controls were effective as of March 31, 2025, with no material changes to internal control over financial reporting - As of March 31, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[193](index=193&type=chunk) - No material changes were made to the company's internal control over financial reporting during the first quarter of 2025[194](index=194&type=chunk) PART II - OTHER INFORMATION This section provides additional information on legal proceedings, risk factors, equity sales, and other corporate developments [Item 1. Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) Legal proceedings include a settled Securities Class Action lawsuit and pending derivative complaints against certain directors and officers - A Securities Class Action lawsuit was settled, with the court granting final approval on June 11, 2024, and issuing a class distribution order on March 18, 2025[90](index=90&type=chunk) - Three derivative complaints have been consolidated into a single action against certain directors and officers. A motion to dismiss was filed, with a court hearing set for September 16, 2025[91](index=91&type=chunk)[92](index=92&type=chunk)[97](index=97&type=chunk) [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) Olo faces risks from unfavorable economic conditions, including inflation and reduced consumer spending, and credit risk from delivery service provider partnerships - The company's results are sensitive to economic uncertainty, including inflation, high interest rates, and lower consumer confidence, which can negatively impact restaurant spending and technology investment[199](index=199&type=chunk) - The company is heavily reliant on the restaurant, food, and delivery industries. A downturn in these sectors, such as reduced guest traffic due to rising costs, could significantly harm Olo's results[200](index=200&type=chunk) - Through its Dispatch module, Olo may be required to pay delivery service providers (DSPs) before collecting payment from its restaurant customers, creating a credit risk if customers become insolvent[202](index=202&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Olo reports no unregistered equity sales and no repurchases under its **$100 million** stock buyback program - On April 30, 2024, the Board authorized a **$100 million** share repurchase program (the 2024 Buyback Program), which has no expiration date. No repurchases have been made under this program[206](index=206&type=chunk) [Item 3. Defaults Upon Senior Securities](index=44&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to the company [Item 4. Mine Safety Disclosures](index=44&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company [Item 5. Other Information](index=44&type=section&id=Item%205.%20Other%20Information) Key events include a new Chief Sales Officer appointment and credit facility amendment, with no Rule 10b5-1 plan changes - Parrish Chapman was appointed as Chief Sales Officer, commencing his role on May 5, 2025[209](index=209&type=chunk) - On May 7, 2025, the company amended its credit facility to extend the maturity date and update certain terms[210](index=210&type=chunk) - No directors or officers adopted, terminated, or materially modified a Rule 10b5-1 trading plan during the quarter[211](index=211&type=chunk) [Item 6. Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including governance documents, agreements, and certifications

Financial Performance - Q1 2025 - Total revenue increased by 21% year-over-year to $80.7 million[40] - Total platform revenue increased by 20% year-over-year to $79.2 million[40] - Non-GAAP operating income was $11.5 million, representing 14% of total revenue, compared to $5.6 million, or 8% of total revenue in the previous year[40] - Average Revenue Per Unit (ARPU) increased by 12% year-over-year to approximately $911[40] - Active locations increased by 8% year-over-year to approximately 88,000, an increase of approximately 2,000 from the previous quarter[40] Key Metrics and Growth - The company has a highly retentive customer base of over 750 brands and 88,000 locations[12] - Dollar-based Net Revenue Retention (NRR) was 111%[34, 40] - Gross Merchandise Volume (GMV) for 2024 reached $29 billion[14] - Gross Payment Volume (GPV) for 2024 was $2.8 billion[14] Market and Strategy - The US food-away-from-home market is a $1.5 trillion+ industry with increasing digital transactions[12, 16] - Olo's three product suites create a guest data "flywheel" to help drive profitable traffic through personalization[12] - The company is positioned to accelerate gross profit growth through scaling Olo Pay and ramping newer SaaS solutions[12]

Exhibit 99.1 Olo Announces First Quarter 2025 Financial Results Revenue up 21%, ARPU up 12% Year-over-Year New York, New York - May 8, 2025 - Olo Inc. (NYSE:OLO) ("Olo" or the "Company"), a leading restaurant technology provider, today announced financial results for the first quarter ended March 31, 2025. "Olo's first quarter was a strong start to the year, with revenue and non-GAAP operating income exceeding the high-end of our guidance ranges, and an impressive list of new customer deployments and expans ...

Olo Inc. (OLO) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Since a changing earning ...

Company Overview - Olo Inc. (OLO) shares increased by 14.8% to close at $7.12, driven by notable trading volume, contrasting with a modest 0.2% gain over the past four weeks [1] - The company is experiencing strong growth in gross merchandise volume, an expanded customer base, and a growing product portfolio, including Olo Pay and Catering Plus [1] Earnings Expectations - Olo is projected to report quarterly earnings of $0.06 per share, reflecting a year-over-year increase of 20% [2] - Expected revenues for the upcoming quarter are $77.52 million, which represents a 16.6% increase compared to the same quarter last year [2] Stock Performance Insights - The consensus EPS estimate for Olo has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] - Olo currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [3] Industry Comparison - Olo is part of the Zacks Internet - Software industry, where Diebold Nixdorf, Incorporated (DBD) also operates [3] - Diebold Nixdorf's consensus EPS estimate for the upcoming report is $0.55, which is a decrease of 53.8% compared to the previous year [4] - Diebold Nixdorf also holds a Zacks Rank of 3 (Hold), indicating a similar neutral outlook within the industry [4]

Group 1 - Speculation regarding a potential acquisition of Olo by Oracle has led to a rise in Oracle's stock price, which increased by over 3% compared to the S&P 500's 0.6% gain [1] - Olo is reportedly exploring a sale and is working with a financial advisor to gauge interest from potential buyers, including Oracle and Toast [2][3] - The situation is still in its early stages, and no official comments have been made by Olo, Oracle, or Toast regarding the potential sale [3] Group 2 - Oracle has a history of acquisitions in the restaurant technology space, having purchased Micros Systems for $5.3 billion in 2014, indicating its capability to pursue similar deals [4] - Olo's market capitalization is approximately $1.2 billion, which may be a significant investment for a buyer without substantial financial resources [4] - The speculation surrounding Olo's potential sale presents an interesting development for investors in Oracle, Toast, and Olo [5]

Industry Overview - The Zacks Internet-Software Industry ranks in the top 33% of nearly 240 Zacks industries, indicating strong performance and potential investment opportunities [1] Company Summaries Olo Inc (OLO) - Olo is trading at $6 per share with a forward earnings multiple of 19.1X [2] - The company anticipates high-double-digit EPS growth in fiscal years 2025 and 2026 [2] - Total sales are projected to increase by 17% this year and by another 18% in FY26, reaching $396.86 million [2] - Earnings estimates show a year-over-year growth of 20% for the current quarter and 40% for the next quarter [3] StoneCo (STNE) - StoneCo is trading at $13 per share, with a sales multiple of under 2X [4] - The stock has a forward earnings multiple of 9.5X and a PEG ratio of 0.36, indicating it is undervalued relative to its growth rate [5] - StoneCo has experienced a remarkable 65% increase year-to-date, outperforming broader market indexes [5] UiPath (PATH) - UiPath is currently trading around $10, significantly down from its IPO price of $65, presenting a potential buying opportunity [8] - The company generates over $1 billion in annual sales and offers a comprehensive automation platform [8] Investment Thesis - The positive trend of earnings estimate revisions for Olo, StoneCo, and UiPath supports the notion that these stocks are undervalued, contributing to favorable P/E valuations [10]

Industry Overview - The Internet Software and Services sector is experiencing growth due to increased IT spending on hybrid operating environments and the high penetration of mobile devices, prompting businesses to invest in web-based infrastructure, applications, and security software [1][3] - The Internet Software industry is ranked in the top 37% of Zacks Industry Rank, indicating an expectation to outperform the market in the next three to six months [2] Growth Drivers - The industry is benefiting from the global digital transformation and the rapid adoption of Software as a Service (SaaS), which provides flexible and cost-effective application delivery [3] - There is a growing demand for web-based cybersecurity software due to the need to secure cloud platforms against cyber-attacks, leading to increased demand for performance management monitoring tools [5] Company Highlights Affirm Holdings Inc. (AFRM) - Affirm is projected to achieve revenues between $3.13 billion and $3.19 billion in fiscal 2025, driven by growing active merchant numbers and partnerships with companies like Apple Pay [11] - The expected revenue and earnings growth rates for Affirm are 36.9% and 96.4%, respectively, for the current year, with a short-term price target indicating a potential upside of 112.4% from the last closing price of $40.49 [12][13] Five9 Inc. (FIVN) - Five9 offers intelligent cloud software for contact centers, benefiting from the adoption of AI tools, with a focus on personalized AI agents [14][16] - The expected revenue and earnings growth rates for Five9 are 9.8% and 5.7%, respectively, with a short-term price target suggesting a maximum upside of 190.4% from the last closing price of $23.07 [17] Unity Software Inc. (U) - Unity provides a platform for creating interactive, real-time 3D content across various devices, catering to developers and content creators [18][19] - The expected revenue and earnings growth rates for Unity are -2% and 31%, respectively, with a short-term price target indicating a potential upside of 82% from the last closing price of $19.23 [20][21] Olo Inc. (OLO) - Olo operates an open SaaS platform for restaurants, facilitating digital ordering and payment solutions, enhancing guest experiences [22][23] - The expected revenue and earnings growth rates for Olo are 17.5% and 40.9%, respectively, with a short-term price target suggesting a maximum upside of 62.1% from the last closing price of $6.17 [25] StoneCo Ltd. (STNE) - StoneCo provides financial technology solutions for electronic commerce in Brazil, distributing through proprietary Stone Hubs [26] - The expected revenue and earnings growth rates for StoneCo are 4.1% and -6.7%, respectively, with a short-term price target indicating a potential upside of 90.8% from the last closing price of $11.53 [27][28]

Shares of restaurant technology company Olo (OLO 5.55%) went up on Wednesday after the company reported financial results for the fourth quarter of 2024. As of 12:40 p.m. ET, Olo stock was up about 6%, but it had been up nearly 12% earlier in the day.Olo finishes a record year and sets the tone for 2025There are 86,000 restaurant locations that use Olo's technology -- it started as online ordering, but it offers a variety of services today to meet the needs of restaurant companies. And 2024 was a good year ...

Olo (OLO) Q4 2024 Earnings Call February 26, 2025 03:39 AM ET Company Participants Gary Fuges - Senior Vice President Of Investor RelationsNoah Glass - Founder, Chief Executive Officer and DirectorPeter Benevides - CFOConnor Passarella - Equity Research AssociateMichael Richards - Equity Research Senior AssociateMax Gamperl - Equity Research - Vice President Conference Call Participants Clarke Jeffries - Vice President & Senior Research AnalystEric Martinuzzi - Senior Research AnalystStephen Sheldon - Resea ...