Olo (OLO) Q4 2024 earnings summary

Executive summary

• Achieved $76.1 million in Q4 2024 revenue, up 21% year-over-year, and $284.9 million for the full year, with gross merchandise volume of $29 billion and gross payment volume of $2.8 billion.

• Ended 2024 with 86,000 active locations, adding 6,000 net new, and 12% ARPU growth to $878.

• Net revenue retention was 115% and gross revenue retention above 98%.

• Launched major product innovations, including 13 enhancements such as AI-powered menu recommendations and expanded Olo Pay Card Present via a FreedomPay partnership.

• Net loss for Q4 narrowed to $0.6 million, with non-GAAP net income of $11.3 million ($0.06 per share).

Financial highlights

• Q4 2024 total revenue was $76.1 million, up 21% year-over-year; full year revenue reached $284.9 million, up 25%.

• Q4 gross profit was $45.2 million (non-GAAP, 59% margin), with GAAP gross profit at $40.3 million (53% margin).

• Q4 non-GAAP operating income was $11.5 million (15% margin), up from $6.8 million (11%) a year ago.

• Full year non-GAAP operating income was $32.9 million (11.6% margin), up 80% year-over-year.

• Cash and investments totaled $403.1 million at year-end; free cash flow for 2024 was $27 million.

Outlook and guidance

• Q1 2025 revenue expected at $77.2–$77.7 million; non-GAAP operating income at $8.7–$9 million.

• Full year 2025 revenue guidance is $333–$336 million; non-GAAP operating income $45.5–$47 million.

• Anticipates adding 5,000 net new locations in 2025 and Olo Pay revenue of ~$110 million, with Card Present ramping in H2.

• Expects gross margin to compress by ~250 bps in 2025 as Olo Pay scales, but gross profit growth to accelerate in the back half.

• Aims to achieve Rule of 40 performance on gross profit by Q4 2025.