EX-99.1 2 oloq42022exhibit991.htm EX-99.1 Document

Exhibit 99.1

Olo Announces Fourth-Quarter and Full-Year 2022 Financial Results
Full-Year 2022 Revenue of $185.4 million, up 24% Year-over-Year
Fourth-Quarter Revenue of $49.8 million, up 25% Year-over-Year Driven by Continued Module Adoption and Active Location Growth
New York, New York - February 22, 2023 - Olo Inc. (NYSE:OLO), a leading open SaaS platform for restaurants, today announced financial results for the fourth-quarter and full-year ended December 31, 2022.

“In 2022, Olo increasingly became the platform that restaurant brands rely on to make their digital priorities a reality.” said Noah Glass, Olo’s Founder and CEO. “Now, more than ever, restaurants recognize the need to invest in technology as a means to better serve their guests and operate their businesses more effectively. Our hard work in 2022, our network of brands, partners, and guests, and our comprehensive product suite all enable Olo to meet the needs of our customers, and we believe have set the table for great things to come in 2023 and beyond,” continued Mr. Glass.

“We have always been focused on balanced growth and efficient investment in the business. We believe this has served the business well over time and it is how we are approaching 2023. Our investment plan this year takes into account the rising cost of capital and the macro environment, which is reflected in the operating expense leverage we expect to gain in 2023,” said Peter Benevides, Olo’s CFO.
Fourth-Quarter Financial and Other Highlights
•Total revenue increased 25% year-over-year to $49.8 million.
•Gross profit increased 10% year-over-year to $34.5 million, and was 69% of total revenue.
•Non-GAAP gross profit increased 14% year-over-year to $37.3 million, and was 75% of total revenue.
•Operating loss was $10.9 million.
•Non-GAAP operating income was $3.1 million.
•Net loss was $8.2 million or $(0.05) per share, compared to net loss of $2.1 million or $(0.01) per share a year ago.
•Non-GAAP net income was $5.6 million or $0.03 per diluted share, compared to non-GAAP net income of $5.1 million or $0.03 per diluted share a year ago.
•Cash, cash equivalents, and short- and long-term investments totaled $451.2 million as of December 31, 2022.
•Total shares repurchased were approximately 2.7 million for approximately $20.1 million.
•Average revenue per unit (ARPU) increased 13% year-over-year to approximately $571.
•Ending active locations increased 10% year-over-year to approximately 87,000.
•Dollar-based net revenue retention (NRR) was approximately 108%.
A reconciliation of GAAP to non-GAAP financial measures is provided at the end of this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures and Other Metrics.”
Fourth-Quarter and Recent Business Highlights
•Olo expanded relationships with existing customers, including TGI Fridays and Virtual Dining Concepts deploying Olo Pay. TGI Fridays, a casual dining restaurant with more than 300 locations, deployed Olo Pay to improve guest satisfaction and online ordering outcomes, such as increased basket conversion and decreased fraud rates. Virtual Dining Concepts, the parent of MrBeast Burger and other delivery-only brands, also adopted Olo Pay at all of their virtual brands, which include more than 3,000 virtual restaurants in more than 2,000 restaurants.
•Olo added new customers such as Captain D’s, a fast-casual enterprise seafood restaurant with more than 550 locations, to the platform. Captain D’s deployed Olo’s Ordering, Dispatch, Rails, Network, and Olo Pay modules.
•Olo continued to service and expand the presence of virtual brands on the platform, including Tender Shack, a Bloomin’ Brands virtual brand with more than 800 locations, and LankyBox Kitchen, a family-focused virtual brand launched by Virtual Dining Concepts, available at more than 450 Chuck E. Cheese locations. Virtual brands have


become an important part of restaurant kitchens, allowing Olo customers to leverage their operations to maximize revenue per square foot.
•Olo showcased the extensibility of the platform through expanding into grocery stores. Kroger, an American retail company that operates supermarkets and multi-department stores throughout the United States, deployed Olo’s Rails module, bringing sushi and floral delivery to customers nationwide. Multi-unit grocery stores represent an emerging vertical for Olo, expanding Olo’s total addressable location count by almost 30,000 locations, representing almost $37 billion in annual food service sales.
•Olo implemented product enhancements to better serve its customers, many of which will be showcased in Olo’s 2022 Winter Product Release event. New features such as expanded Borderless functionality for all Olo Pay customers, enhanced QR code ordering, expanded geolocation partner notification, amongst others may be viewed at olo.com/quarterly-release. These new key innovations are designed to address operational challenges and improve the guest experience at scale.
•Olo’s Executive Vice President of Technology, Priya Thinagar, was honored by Insider as a Restaurant Power Player,
as Priya and her team have been key in expanding Olo’s platform, fostering innovation, and scaling new products, such as Olo Pay. Additionally, Olo earned Best Customer Data Platform from Digiday, in recognition of the Olo platform’s ability to deliver personalized marketing messages, better customer experience across channels — in-restaurant and digital — and better understand customer preferences.

Financial Outlook
As of February 22, 2023, Olo is issuing the following outlook for the first-quarter of 2023 and fiscal-year 2023:
For the first-quarter of 2023, Olo expects to report:
•Revenue in the range of $50.5 million to $51.0 million; and
•Non-GAAP operating income in the range of $0.6 million to $1.0 million.

For the fiscal-year 2023, Olo expects to report:
•Revenue in the range of $213.0 million to $215.0 million; and
•Non-GAAP operating income in the range of $11.4 million to $13.0 million.

The outlook provided above constitutes forward-looking information within the meaning of applicable securities laws and is based on a number of assumptions and subject to a number of risks. Actual results could vary materially as a result of numerous factors, including certain risk factors, many of which are beyond Olo’s control. We assume no obligation to update these forward-looking statements. See the cautionary note regarding “Forward-Looking Statements” below.



Webcast and Conference Call Information
Olo will host a conference call today, February 22, 2023 at 5:00 p.m. Eastern Time to discuss the Company’s financial results and financial outlook. A live webcast of this conference call will be available on the “Investor Relations” website at investors.olo.com, and a replay will be archived on the website as well.
Available Information
Olo announces material information to the public about the Company, its products and services, and other matters through a variety of means, including filings with the SEC, press releases, public conference calls, webcasts, the “Investor Relations” website at investors.olo.com, and the Company’s Twitter account @Olo in order to achieve broad, non-exclusionary distribution of information to the public and for complying with its disclosure obligations under Regulation FD.
About Olo
Olo Inc. (NYSE: OLO) is a leading open SaaS platform for restaurants that enables hospitality at every guest touchpoint. Millions of orders per day run on Olo’s on-demand commerce engine, providing restaurants a single source to understand and serve every guest from every channel, whether direct or third-party. With integrations to over 300 technology partners, Olo customers can build personalized guest experiences in and outside of their four walls, utilizing one of the largest and most flexible restaurant tech ecosystems on the market. Over 600 restaurant brands trust Olo to grow their digital ordering and delivery programs, do more with less, and make every guest feel like a regular. Learn more at olo.com.
Contacts
Media
Olo@icrinc.com
Investor Relations
InvestorRelations@olo.com


Non-GAAP Financial Measures and Other Metrics
Non-GAAP Financial Measures
In this press release, we refer to non-GAAP financial measures that are derived on the basis of methodologies other than in accordance with United States generally accepted accounting principles, or GAAP. We use non-GAAP financial measures, as described below, in conjunction with financial measures prepared in accordance with GAAP for planning purposes, including in the preparation of our annual operating budget, as a measure of our core operating results and the effectiveness of our business strategy, and in evaluating our financial performance. These measures provide consistency and comparability with past financial performance as measured by such non-GAAP figures, facilitate period-to-period comparisons of core operating results, and assist shareholders in better evaluating us by presenting period-over-period operating results without the effect of certain charges or benefits that may not be consistent or comparable across periods.

A reconciliation of these non-GAAP measures has been provided in the financial statement tables included in this press release and investors are encouraged to review the reconciliation. Our use of non-GAAP financial measures has limitations as an analytical tool, and these measures should not be considered in isolation or as a substitute for analysis of our GAAP financial results. Because our non-GAAP financial measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies.

The following are the non-GAAP financial measures referenced in this press release and presented in the tables below: non-GAAP gross profit (total and each line item, and total and each non-GAAP gross profit item on a margin basis as a percentage of revenue), non-GAAP operating expenses (each line item and each non-GAAP operating expense item on a margin basis as a percentage of revenue), non-GAAP operating income (and on a margin basis as a percentage of revenue), non-GAAP net income (and on a per share basis), and free cash flow.

We adjust our GAAP financial measures for the following items to calculate one or more of our non-GAAP financial measures (other than free cash flow): stock-based compensation expense (non-cash expense calculated by companies using a variety of valuation methodologies and subjective assumptions) and related payroll tax expense, equity expense related to charitable contributions (non-cash expense), intangible and internal-use software amortization (non-cash expense), change in fair value of warrants, other non-cash charges, certain severance costs, costs and an impairment charge associated with the sublease of our corporate headquarters, transaction costs incurred within one year of the related acquisition, and related income tax impacts.

Reconciliation of non-GAAP operating income guidance to the most directly comparable GAAP measures is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity, and low visibility with respect to the charges excluded from these non-GAAP measures; in particular, the measures and effects of stock-based compensation expense and related payroll tax expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our stock price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.

Management believes that it is useful to exclude certain non-cash charges and non-core operational charges from non-GAAP operating income because (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations; and (ii) such expenses can vary significantly between periods. For 2022, payroll tax expenses related to equity compensation awards were added to our calculation of non-GAAP operating income. We have historically excluded stock-based compensation expense from non-GAAP operating income, and management believes that excluding the related payroll tax expense is important and consistent, as such payroll tax expenses are directly impacted by unpredictable fluctuations in our stock price. Prior period amounts have been revised to conform with the current year presentation.

Free cash flow represents net cash provided by or used in operating activities, reduced by purchases of property and equipment and capitalization of internal-use software. Free cash flow is a measure used by management to understand and evaluate our liquidity and to generate future operating plans. Free cash flow excludes items that we do not consider to be indicative of our liquidity. The reduction of capital expenditures facilitates comparisons of our liquidity on a period-to-period basis. We believe providing free cash flow provides useful information to investors and others in understanding and evaluating the strength of our liquidity and future ability to generate cash that can be used for strategic opportunities or investing in our business from the perspective of our management and Board of Directors.






Key Performance Indicators

In addition, we also use the following key performance indicators to help us evaluate our business, identify trends affecting the business, formulate business plans, and make strategic decisions.

Active Locations: We define an active location as a unique restaurant location that is utilizing one or more modules in a given quarterly period. We believe that active location count is an important metric that demonstrates the growth and scale of our overall business and reflects our ability to attract, engage, and monetize our customers and thereby drive revenue, as well as provides a base to expand usage of our modules.

Average revenue per unit (ARPU): We calculate ARPU by dividing the total platform revenue in a given period by the average active locations in that same period. We believe ARPU is an important metric that measures monetization of our platform and demonstrates our ability to grow within our customer base through the development of products that our customers value.

Dollar-based net revenue retention (NRR): We calculate NRR as of a period-end by starting with the revenue, defined as platform revenue, from the cohort of all active customers as of 12 months prior to such period-end, or the prior period revenue. We then calculate the platform revenue from these same customers as of the current period-end, or the current period revenue. Current period revenue includes any expansion and is net of contraction or attrition over the last 12 months, but excludes platform revenue from new customers in the current period. We then divide the total current period revenue by the total prior period revenue to arrive at the point-in-time dollar-based NRR. We believe that NRR is an important metric to our investors, demonstrating our ability to retain our customers and expand their use of our modules over time, proving the stability of our revenue base and the long-term value of our customer relationships.
Forward-Looking Statements
Statements we make in this press release include statements that are considered forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act, which may be identified by the use of words such as “anticipates,” “believes,” “continue,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “outlook,” “seeks,” “should,” “will,” and similar terms or the negative of such terms. All statements other than statements of historical fact are forward-looking statements for purposes of this release.

We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act and are making this statement for purposes of complying with those safe harbor provisions. These statements include, but are not limited to, our financial guidance for the first-quarter of 2023 and the full-year 2023, our future performance and growth and market opportunities, including new products and continued module adoption, our business strategy, our ability to sustain our profitability, customer adoption of our products and expectations for capturing market share and our delivery of new products or product features, our aspirations with respect to ESG initiatives, and expectations regarding the impact of macroeconomic conditions and the ongoing COVID-19 pandemic on our business and industry. Accordingly, actual results could differ materially or such uncertainties could cause adverse effects on our results.

Forward-looking statements are based upon various estimates and assumptions, as well as information known to us as of the date of this press release, and are subject to risks and uncertainties, including but not limited to: the business of our customers and economic conditions, including inflation, labor dynamics, increasing interest rates, and any reductions in guest spending on dining due to the general economic climate; our focus on the long-term and our investments in sustainable, profitable growth; our ability to acquire new customers, have existing customers adopt additional modules, and successfully retain existing customers; impact of competitors, price competition or the ability of our customers to replace some of our products with their own internal platforms; our ability to develop and release new products and services, and develop and release successful enhancements, features, and modifications to our existing products and services; our actual or perceived failure to comply with our obligations related to data privacy, cybersecurity, and processing payment transactions; the impact of new and existing laws and regulations on our business; changes to our strategic relationships with third parties; our reliance on a limited number of delivery service providers and aggregators; our ability to generate revenue from our product offerings and the effects of fluctuations in our level of client spend retention; changes in the amount and mix of transactions facilitated through our platform; changes in our level of investment in sales and marketing, research and development, and general and administrative expenses, and our hiring plans; future changes to our pricing model; changes in management; the ongoing COVID-19 pandemic, including the emergence of any new variants; and other general market, political, economic, and business conditions. Actual results could differ materially from those predicted or implied, and reported results should not be considered an


indication of future performance. Additionally, these forward-looking statements, particularly our guidance, involve risks, uncertainties, and assumptions, including those related to our customers’ spending decisions and guest ordering behavior particularly as COVID-19 associated restrictions continue to abate. Significant variations from the assumptions underlying our forward-looking statements could cause our actual results to vary, and the impact could be significant.

Additional risks and uncertainties that could affect our financial results and forward looking statements are included under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022 that will be filed following this earnings release, and our other SEC filings, which are available on our “Investor Relations” website at investors.olo.com and on the SEC website at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this press release. All forward-looking statements contained herein are based on information available to us as of the date hereof, and we do not assume any obligation to update these statements as a result of new information or future events.

OLO INC.
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands, except share and per share amounts)

As of
 December 31,
2022		As of
December 31,
2021
ASSETS  
Current assets:  
Cash and cash equivalents$350,073 $514,445 
Short-term investments98,699 — 
Accounts receivable, net48,128 42,319 
Contract assets336 568 
Deferred contract costs2,851 2,567 
Prepaid expenses and other current assets11,687 5,718 
Total current assets511,774 565,617 
Property and equipment, net11,700 3,304 
Intangible assets, net21,698 19,635 
Goodwill207,781 162,956 
Contract assets, noncurrent241 387 
Deferred contract costs, noncurrent4,171 3,616 
Operating lease right-of-use assets15,581 — 
Long-term investments2,430 — 
Other assets, noncurrent186 361 
Total assets$775,562 $755,876 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$2,259 $2,184 
Accrued expenses and other current liabilities52,411 45,395 
Unearned revenue2,527 1,190 
Operating lease liabilities, current3,220 — 
Total current liabilities60,417 48,769 
Unearned revenue, noncurrent661 3,014 
Operating lease liabilities, noncurrent16,827 — 
Other liabilities, noncurrent41 2,343 
Total liabilities77,946 54,126 
Stockholders’ equity:
Class A common stock, $0.001 par value; 1,700,000,000 shares authorized at December 31, 2022 and December 31, 2021; 105,053,030 and 78,550,530 shares issued and outstanding at December 31, 2022 and 2021, respectively. Class B common stock, $0.001 par value; 185,000,000 shares authorized at December 31, 2022 and 2021, respectively; 57,391,687 and 79,149,659 shares issued and outstanding at December 31, 2022 and 2021, respectively.
162 158 
Preferred stock, $0.001 par value; 20,000,000 shares authorized at December 31, 2022 and 2021.
— — 
Additional paid-in capital855,249 813,166 
Accumulated deficit(157,542)(111,574)
Accumulated other comprehensive loss(253)— 
Total stockholders’ equity697,616 701,750 
Total liabilities and stockholders’ equity$775,562 $755,876 

OLO INC.
Condensed Consolidated Statement of Operations (Unaudited)
(in thousands, except share and per share amounts)
Three Months Ended
December 31,		Year Ended
December 31,
2022202120222021
Revenue:
Platform$48,932 $38,913 $181,293 $144,446 
Professional services and other849 1,046 4,111 4,922 
Total revenue49,781 39,959 185,404 149,368 
Cost of revenue:
Platform14,103 7,153 51,796 25,572 
Professional services and other1,172 1,300 5,715 5,258 
Total cost of revenue15,275 8,453 57,511 30,830 
Gross profit34,506 31,506 127,893 118,538 
Operating expenses:
Research and development19,768 16,046 72,927 58,918 
General and administrative16,944 16,591 73,034 69,625 
Sales and marketing8,706 5,706 33,596 17,971 
Total operating expenses45,418 38,343 179,557 146,514 
Loss from operations(10,912)(6,837)(51,664)(27,976)
Other income (expenses), net:
Interest income2,482 — 4,592 — 
Interest expense(69)— (185)— 
Other income, net1 100 7 77 
Change in fair value of warrant liability— — — (18,930)
Total other income (expenses), net2,414 100 4,414 (18,853)
Loss before taxes(8,498)(6,737)(47,250)(46,829)
Benefit for income taxes(272)(4,666)(1,282)(4,556)
Net loss$(8,226)$(2,071)$(45,968)$(42,273)
Accretion of redeemable convertible preferred stock to redemption value— — — (14)
Net loss attributable to Class A and Class B common stockholders$(8,226)$(2,071)$(45,968)$(42,287)
Net loss per share attributable to Class A and Class B common stockholders:
Basic$(0.05)$(0.01)$(0.28)$(0.34)
Diluted$(0.05)$(0.01)$(0.28)$(0.34)
Weighted-average Class A and Class B common shares outstanding:
Basic163,207,461 154,590,978 161,303,397 123,822,838 
Diluted163,207,461 154,590,978 161,303,397 123,822,838 

OLO INC.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
Year Ended
December 31, 2022		Year Ended
December 31, 2021
Operating activities  
Net loss$(45,968)$(42,273)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization6,020 1,615 
Stock-based compensation46,024 32,727 
Charitable donation of Class A common stock1,406 13,107 
Provision for expected credit losses283 364 
Change in fair value of warrants— 18,930 
Non-cash lease expense2,388 — 
Deferred income tax benefit(1,519)(4,896)
Non-cash impairment charges2,806 — 
Other non-cash operating activities, net(1,135)— 
Changes in operating assets and liabilities:
Accounts receivable(5,642)3,734 
Contract assets377 (96)
Prepaid expenses and other current assets(5,191)(2,837)
Deferred contract costs(839)(1,007)
Accounts payable(130)(6,820)
Accrued expenses and other current liabilities7,308 1,603 
Operating lease liabilities(2,535)— 
Unearned revenue(1,243)2,259 
Other liabilities, noncurrent(66)(157)
Net cash provided by operating activities2,344 16,253 
Investing activities
Purchases of property and equipment(517)(393)
Capitalized internal-use software(8,480)(1,452)
Acquisitions, net of cash acquired(49,241)(75,227)
Purchases of investments(151,723)— 
Sales and maturities of investments51,478 — 
Net cash used in investing activities(158,483)(77,072)
Financing activities
Proceeds from issuance of Class A common stock upon initial public offering, net of underwriting discounts— 485,541 
Cash received for employee payroll tax withholdings9,094 46,956 
Cash paid for employee payroll tax withholdings(9,094)(46,956)
Proceeds from exercise of warrants— 392 
Payment of deferred finance costs— (136)
Payment of deferred offering costs(423)(4,124)
Proceeds from exercise of stock options and purchases under the employee stock purchase plan12,244 17,835 
Repurchase of common stock(20,054)— 
Net cash (used in) provided by financing activities(8,233)499,508 
Net (decrease) increase in cash and cash equivalents(164,372)438,689 
Cash and cash equivalents, beginning of year514,445 75,756 
Cash and cash equivalents, end of year$350,073 $514,445 

OLO INC.
Reconciliation of GAAP to Non-GAAP Results (Unaudited)
(in thousands, except for percentages and share and per share amounts)
Three Months Ended
December 31, 2022		Three Months Ended
December 31, 2021		Year Ended
December 31, 2022		Year Ended
December 31, 2021
Gross profit and gross margin reconciliation:  
Platform gross profit, GAAP$34,829 $31,760 $129,497 $118,874 
Plus: Stock-based compensation expense and related payroll tax expense (1)
1,197 764 5,583 2,706 
Plus: Capitalized internal-use software and intangible amortization1,226 166 3,954 579 
Plus: Severance costs160 — 177 — 
Plus: Transaction costs— 9 — 9 
Platform gross profit, non-GAAP37,412 32,699 139,211 122,168 
Services gross profit, GAAP(323)(254)(1,604)(336)
Plus: Stock-based compensation expense and related payroll tax expense (1)
67 112 685 474 
Plus: Severance costs140 — 176 — 
Plus: Transaction costs— 45 — 45 
Services gross profit, Non-GAAP(116)(97)(743)183 
Total gross profit, GAAP34,506 31,506 127,893 118,538 
Total gross profit, non-GAAP37,296 32,602 138,468 122,351 
Platform gross margin, GAAP71 %82 %71 %82 %
Platform gross margin, non-GAAP76 %84 %77 %85 %
Services gross margin, GAAP(38)%(24)%(39)%(7)%
Services gross margin, non-GAAP(14)%(9)%(18)%4 %
Total gross margin, GAAP69 %79 %69 %79 %
Total gross margin, non-GAAP75 %82 %75 %82 %
Sales and marketing reconciliation:
Sales and marketing, GAAP8,706 5,706 33,596 17,971 
Less: Stock-based compensation expense and related payroll tax expense (1)
1,235 715 5,625 2,151 
Less: Intangible amortization341 — 1,338 — 
Less: Severance costs204 — 316 — 
Less: Transaction costs— 433 79 433 
Sales and marketing, non-GAAP6,926 4,558 26,238 15,387 
Sales and marketing as % total revenue, GAAP17 %14 %18 %12 %
Sales and marketing as % total revenue, non-GAAP14 %11 %14 %10 %
Research and development reconciliation:
Research and development, GAAP19,768 16,046 72,927 58,918 
Less: Stock-based compensation expense and related payroll tax expense (1)
3,704 2,782 14,318 11,677 
Less: Non-cash capitalized software impairment— — 475 — 
Less: Severance costs260 — 332 — 
Less: Transaction costs— 425 — 425 
Research and development, non-GAAP15,804 12,839 57,802 46,816 
Research and development as % total revenue, GAAP40 %40 %39 %39 %
Research and development as % total revenue, non-GAAP32 %32 %31 %31 %
General and administrative reconciliation:
General and administrative, GAAP16,944 16,591 73,034 69,625 
Less: Stock-based compensation expense and related payroll tax expense (1)
4,838 5,011 20,654 17,261 
Less: Charitable donation of Class A common stock— — 1,406 13,107 
Less: Costs and impairment charge associated with sublease of corporate headquarters— — 3,272 — 
Less: Intangible amortization41 — 154 — 
Less: Severance costs417 — 1,358 — 
Less: Transaction costs133 1,579 1,521 1,922 
General and administrative, non-GAAP11,515 10,001 44,669 37,335 
General and administrative as % total revenue, GAAP34 %42 %39 %47 %
General and administrative as % total revenue, non-GAAP23 %25 %24 %25 %
(1) For 2022, payroll tax expenses related to equity compensation awards were added to our calculation of non-GAAP operating income. We have historically excluded stock-based compensation expense from non-GAAP operating income, and management believes that excluding the related payroll tax expense is important and consistent, as such payroll tax expenses are directly impacted by unpredictable fluctuations in our stock price. Prior period amounts have been revised to conform with the current year presentation.

OLO INC.
Reconciliation of GAAP to Non-GAAP Results (Unaudited)
(in thousands, except for percentages and share and per share amounts)
Three Months Ended
December 31, 2022		Three Months Ended
December 31, 2021		Year Ended
December 31, 2022		Year Ended
December 31, 2021
Operating loss reconciliation:
Operating loss, GAAP$(10,912)$(6,837)$(51,664)$(27,976)
Plus: Stock-based compensation expense and related payroll tax expense (1)
11,041 9,384 46,865 34,269 
Plus: Charitable donation of Class A common stock— — 1,406 13,107 
Plus: Costs and impairment charge associated with sublease of corporate headquarters— — 3,272 — 
Plus: Non-cash capitalized software impairment— — 475 — 
Plus: Capitalized internal-use software and intangible amortization1,608 166 5,446 579 
Plus: Severance costs1,181 — 2,359 — 
Plus: Transaction costs133 2,491 1,600 2,834 
Operating income, non-GAAP3,051 5,204 9,759 22,813 
Operating margin, GAAP(22)%(17)%(28)%(19)%
Operating margin, non-GAAP6 %13 %5 %15 %
Net loss reconciliation:
Net loss, GAAP(8,226)(2,071)(45,968)(42,273)
Plus: Stock-based compensation expense and related payroll tax expense (1)
11,041 9,384 46,865 34,269 
Plus: Charitable donation of Class A common stock— — 1,406 13,107 
Plus: Costs and impairment charge associated with sublease of corporate headquarters— — 3,272 — 
Plus: Non-cash capitalized software impairment— — 475 — 
Plus: Capitalized internal-use software and intangible amortization1,608 166 5,446 579 
Plus: Change in fair value of warrant liability— — — 18,930 
Plus: Severance costs1,181 — 2,359 — 
Plus: Transaction costs133 2,491 1,600 2,834 
Less: Transaction-related deferred income tax benefit(98)(4,896)(1,519)(4,896)
Net income, non-GAAP5,639 5,074 13,936 22,550 
Fully diluted net loss per share attributable to Class A and Class B common stockholders, GAAP$(0.05)$(0.01)$(0.28)$(0.34)
Fully diluted weighted average Class A and Class B common shares outstanding, GAAP163,207,461 154,590,978 161,303,397 123,822,838 
Fully diluted net income per share attributable to Class A and Class B common stockholders, non-GAAP$0.03 $0.03 $0.08 $0.12 
Fully diluted Class A and Class B common shares outstanding, non-GAAP179,975,869 185,476,922 182,950,753 180,589,207 
(1) For 2022, payroll tax expenses related to equity compensation awards were added to our calculation of non-GAAP operating income. We have historically excluded stock-based compensation expense from non-GAAP operating income, and management believes that excluding the related payroll tax expense is important and consistent, as such payroll tax expenses are directly impacted by unpredictable fluctuations in our stock price. Prior period amounts have been revised to conform with the current year presentation.

OLO INC.
Non-GAAP Free Cash Flow (Unaudited)
(in thousands)

Three Months Ended
December 31,		Year Ended
December 31,
2022202120222021
Net cash (used in) provided by operating activities$(54)$(9,956)$2,344 $16,253 
Purchase of property and equipment(63)(69)(517)(393)
Capitalization of internally developed software(1,483)(581)(8,480)(1,452)
Non-GAAP free cash flow$(1,600)$(10,606)$(6,653)$14,408