Olo (OLO)2025-02-25 21:14Financial Performance - Fourth quarter revenue increased 21% year-over-year to $76.1 million[7] - Gross profit for the fourth quarter was $40.3 million, representing 53% of total revenue[7] - Non-GAAP operating income for the fourth quarter was $11.5 million, or 15% of total revenue, compared to $6.8 million, or 11% of total revenue, a year ago[7] - Total revenue for Q4 2024 was $76.07 million, a 20.8% increase from $63.00 million in Q4 2023[35] - Platform revenue reached $75.19 million in Q4 2024, up 21.0% from $61.94 million in Q4 2023[35] - Gross profit for the year ended December 31, 2024, was $156.42 million, compared to $138.97 million in 2023, reflecting a 12.5% increase[35] - Operating income, non-GAAP, for the year ended December 31, 2024, was $32,944, compared to $18,260 in 2023, an increase of 80%[41] - Fully diluted net income per share, non-GAAP, was $0.06 in Q4 2024, up from $0.05 in Q4 2023, indicating a 20% increase[43] Cost Management - Operating expenses decreased to $44.74 million in Q4 2024 from $56.97 million in Q4 2023, a reduction of 21.4%[35] - Research and development expenses for the year were $68.48 million, down from $73.91 million in 2023, indicating a focus on cost management[35] - General and administrative expenses, GAAP, decreased to $14,993 in Q4 2024 from $28,112 in Q4 2023, a reduction of 47%[41] - Research and development expenses, GAAP, were $17,357 in Q4 2024, slightly up from $17,108 in Q4 2023, indicating a 1% increase[41] - Sales and marketing expenses, non-GAAP, were $10,071 in Q4 2024, compared to $9,736 in Q4 2023, reflecting a 3% increase[41] Cash Flow and Assets - Cash and cash equivalents increased to $286.76 million as of December 31, 2024, compared to $278.22 million at the end of 2023[33] - Total assets grew to $754.78 million in 2024, up from $742.82 million in 2023[33] - The company reported a net cash provided by operating activities of $39.69 million for the year ended December 31, 2024, compared to a net cash used of $6.57 million in 2023[37] - Net cash provided by operating activities for the year ended December 31, 2024, was $39,688, a significant recovery from a cash used of $(6,568) in 2023[45] - Non-GAAP free cash flow for Q4 2024 was $6,846, up from $2,734 in Q4 2023, marking a 150% increase[45] Growth Metrics - Average revenue per unit (ARPU) increased 12% year-over-year to approximately $878[7] - Dollar-based net revenue retention (NRR) was approximately 115%[7] - Ending active locations increased 8% year-over-year to approximately 86,000 as of December 31, 2024[7] - Gross merchandise volume (GMV) was approximately $29 billion for the year ended December 31, 2024[7] Future Outlook - For Q1 2025, revenue is expected to be in the range of $77.2 million to $77.7 million[10] - For the full year 2025, revenue is expected to be in the range of $333.0 million to $336.0 million[10] - The company plans to continue expanding its market opportunities and enhancing its product offerings despite macroeconomic uncertainties[30] Partnerships and Integrations - A partnership with FreedomPay was announced to integrate Olo Pay card-present functionality into FreedomPay's gateway terminals[8]