Olo Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company achieved total revenue of $71.9 million for the three months ended September 30, 2024, marking a 24.3% increase from $57.8 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue reached $208.9 million, up 26.4% from $165.3 million year-over-year. The growth was primarily driven by an increase in platform revenue, which accounted for $71.0 million in Q3 2024, a 24.0% rise from the previous year.
Gross profit for the third quarter was $39.0 million, a 12.9% increase from $34.6 million in Q3 2023. However, gross margin decreased to 54.3% from 59.8% due to higher transaction processing costs. Operating expenses for the quarter totaled $47.5 million, down from $50.9 million in the prior year, reflecting a reduction in general and administrative expenses, which fell by 29.0% to $15.1 million.
Olo's net loss for the three months ended September 30, 2024, was $3.6 million, significantly improved from a net loss of $11.8 million in the same quarter of 2023. For the nine-month period, the net loss narrowed to $262,000 from $42.5 million in the previous year. The company reported a non-GAAP operating income of $8.2 million for Q3 2024, compared to $5.7 million in Q3 2023.
Strategically, Olo has undergone workforce reductions as part of its 2024 Restructuring Plan, which impacted approximately 9% of its workforce. This follows a previous reduction of about 11% in June 2023. The restructuring efforts incurred charges of $2.4 million in Q3 2024, primarily related to severance and employee benefits.
Olo's liquidity remains strong, with cash and cash equivalents totaling $272.2 million as of September 30, 2024. The company has also completed its previous stock buyback program, repurchasing 4.2 million shares for approximately $22.2 million, and has authorized a new buyback program for up to $100 million.
The company continues to focus on expanding its customer base, particularly among high-growth restaurant brands, and enhancing its product offerings, including Olo Pay, which is expected to drive transaction revenue. Despite challenges in hiring qualified personnel and increased competition, Olo aims to leverage its open SaaS platform to capture growth opportunities in the digital commerce space.
About Olo Inc.
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