OLO INC., 10-K filed on 2/25/2025
Annual Report
v3.25.0.1
Cover Page - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Feb. 19, 2025
Jun. 30, 2024
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2024    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-40213    
Entity Registrant Name Olo Inc.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 20-2971562    
Entity Address, Address Line One 285 Fulton Street    
Entity Address, Address Line Two One World Trade Center, 82nd Floor    
Entity Address, City or Town New York    
Entity Address, State or Province NY    
Entity Address, Postal Zip Code 10007    
City Area Code 212    
Local Phone Number 260-0895    
Title of 12(b) Security Class A Common Stock, par value $0.001 per share    
Trading Symbol OLO    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Public float     $ 470.3
Documents Incorporated by Reference
Portions of the registrant’s definitive proxy statement for its 2025 Annual Meeting of Stockholders, or Proxy Statement, to be filed within 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K, are incorporated by reference in Part III. Except with respect to information specifically incorporated by reference in this Annual Report on Form 10-K, the Proxy Statement shall not be deemed to be filed as part hereof.
   
Entity Central Index Key 0001431695    
Amendment Flag false    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Common Class A      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding (in shares)   115,708,992  
Common Class B      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding (in shares)   50,307,240  
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Audit Information
12 Months Ended
Dec. 31, 2024
Audit Information [Abstract]  
Auditor Firm ID 34
Auditor Name Deloitte & Touche LLP
Auditor Location New York, New York
v3.25.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 286,757 $ 278,218
Short-term investments 73,978 84,331
Accounts receivable, net 61,589 70,264
Contract assets 892 412
Deferred contract costs 5,635 4,743
Prepaid expenses and other current assets 19,470 12,769
Total current assets 448,321 450,737
Property and equipment, net 26,318 22,055
Intangible assets, net 13,797 17,738
Goodwill 207,781 207,781
Contract assets, noncurrent 826 352
Deferred contract costs, noncurrent 5,621 5,806
Operating lease right-of-use assets 9,709 12,529
Long-term investments 42,376 25,748
Other assets, noncurrent 27 73
Total assets 754,776 742,819
Current liabilities:    
Accounts payable 1,431 4,582
Accrued expenses and other current liabilities 53,894 68,240
Unearned revenue 1,869 1,533
Operating lease liabilities, current 2,400 2,859
Total current liabilities 59,594 77,214
Unearned revenue, noncurrent 375 57
Operating lease liabilities, noncurrent 11,584 13,968
Other liabilities, noncurrent 0 109
Total liabilities 71,553 91,348
Commitments and contingencies (Note 14)
Stockholders’ equity:    
Class A common stock, $0.001 par value; 1,700,000,000 shares authorized as of December 31, 2024 and 2023; 115,635,624 and 108,469,679 shares issued and outstanding as of December 31, 2024 and 2023, respectively. Class B common stock, $0.001 par value; 185,000,000 shares authorized as of December 31, 2024 and 2023, respectively; 50,307,240 and 54,891,834 shares issued and outstanding as of December 31, 2024 and 2023, respectively 166 163
Preferred stock, $0.001 par value; 20,000,000 shares authorized as of December 31, 2024 and 2023, respectively 0 0
Additional paid-in capital 899,754 867,152
Accumulated deficit (216,726) (215,829)
Accumulated other comprehensive income (loss) 29 (15)
Total stockholders’ equity 683,223 651,471
Total liabilities and stockholders’ equity $ 754,776 $ 742,819
v3.25.0.1
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2024
Dec. 31, 2023
Preferred stock, par value (in USD per share) $ 0.001 $ 0.001
Preferred stock, shares authorized (in shares) 20,000,000 20,000,000
Common Class A    
Common stock, par value (in USD per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 1,700,000,000 1,700,000,000
Common stock, shares issued (in shares) 115,635,624 108,469,679
Common stock, shares outstanding (in shares) 115,635,624 108,469,679
Common Class B    
Common stock, par value (in USD per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 185,000,000 185,000,000
Common stock, shares issued (in shares) 50,307,240 54,891,834
Common stock, shares outstanding (in shares) 50,307,240 54,891,834
v3.25.0.1
Consolidated Statements of Operations - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Total revenue $ 284,938 $ 228,289 $ 185,404
Total cost of revenue 128,515 89,323 58,466
Gross Profit 156,423 138,966 126,938
Operating expenses:      
Research and development 68,483 73,914 74,203
General and administrative 51,543 85,098 70,356
Sales and marketing 53,142 48,190 34,043
Restructuring charges (Note 17) 2,396 6,848 0
Total operating expenses 175,564 214,050 178,602
Loss from operations (19,141) (75,084) (51,664)
Other income, net:      
Interest income 19,280 17,237 4,592
Interest expense (113) (208) (185)
Other income (expense), net 35 (3) 7
Total other income, net 19,202 17,026 4,414
Income (loss) before income taxes 61 (58,058) (47,250)
Provision (benefit) for income taxes 958 229 (1,282)
Net loss attributable to Class A and Class B common stockholders—basic (897) (58,287) (45,968)
Net loss attributable to Class A and Class B common stockholders—basic and diluted $ (897) $ (58,287) $ (45,968)
Net loss per share attributable to Class A and Class B common stockholders:      
Basic (in USD per share) $ (0.01) $ (0.36) $ (0.28)
Diluted (in USD per share) $ (0.01) $ (0.36) $ (0.28)
Weighted-average Class A and Class B common shares outstanding:      
Basic (in shares) 162,608,353 162,993,686 161,303,397
Diluted (in shares) 162,608,353 162,993,686 161,303,397
Platform      
Total revenue $ 281,554 $ 225,179 $ 181,293
Total cost of revenue 125,245 85,195 52,634
Professional services and other      
Total revenue 3,384 3,110 4,111
Total cost of revenue $ 3,270 $ 4,128 $ 5,832
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Consolidated Statements of Comprehensive Loss - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Statement of Comprehensive Income [Abstract]      
Net loss $ (897) $ (58,287) $ (45,968)
Other comprehensive income (loss):      
Unrealized gain (loss) on investments 44 238 (253)
Total other comprehensive income (loss) 44 238 (253)
Comprehensive loss $ (853) $ (58,049) $ (46,221)
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Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands
Total
Class A and Class B Common Stock
Additional Paid In Capital
Accumulated Deficit
Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Dec. 31, 2021   157,700,189      
Beginning balance at Dec. 31, 2021 $ 701,750 $ 158 $ 813,166 $ (111,574) $ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock in connection with charitable donation (in shares)   172,918      
Issuance of common stock in connection with charitable donation 1,406   1,406    
Issuance of common stock under the Employee Stock Purchase Plan (in shares)   349,623      
Issuance of common stock under the Employee Stock Purchase Plan 2,692   2,692    
Issuance of common stock on exercise of stock options (in shares)   6,076,639      
Issuance of common stock on exercise of stock options 9,802 $ 6 9,796    
Vesting of restricted stock units (in shares)   832,940      
Vesting of restricted stock units 0 $ 1 (1)    
Repurchase of common stock (in shares)   (2,687,592)      
Repurchase of common stock (20,054) $ (3) (20,051)    
Stock-based compensation 48,241   48,241    
Other comprehensive income (loss) (253)       (253)
Net loss (45,968)     (45,968)  
Ending balance (in shares) at Dec. 31, 2022   162,444,717      
Ending balance at Dec. 31, 2022 697,616 $ 162 855,249 (157,542) (253)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock in connection with charitable donation (in shares)   172,918      
Issuance of common stock in connection with charitable donation 1,136   1,136    
Issuance of common stock under the Employee Stock Purchase Plan (in shares)   459,836      
Issuance of common stock under the Employee Stock Purchase Plan 2,463 $ 1 2,462    
Issuance of common stock on exercise of stock options (in shares)   5,694,748      
Issuance of common stock on exercise of stock options 9,916 $ 6 9,910    
Vesting of restricted stock units (in shares)   3,438,926      
Vesting of restricted stock units 0 $ 3 (3)    
Repurchase of common stock (in shares)   (8,849,632)      
Repurchase of common stock (58,080) $ (9) (58,071)    
Stock-based compensation 56,469   56,469    
Other comprehensive income (loss) 238       238
Net loss (58,287)     (58,287)  
Ending balance (in shares) at Dec. 31, 2023   163,361,513      
Ending balance at Dec. 31, 2023 651,471 $ 163 867,152 (215,829) (15)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock in connection with charitable donation (in shares)   172,918      
Issuance of common stock in connection with charitable donation 823   823    
Issuance of common stock under the Employee Stock Purchase Plan (in shares)   461,194      
Issuance of common stock under the Employee Stock Purchase Plan $ 1,778 $ 1 1,777    
Issuance of common stock on exercise of stock options (in shares) 2,380,648 2,380,648      
Issuance of common stock on exercise of stock options $ 6,089 $ 2 6,087    
Vesting of restricted and performance-based restricted stock units (in shares)   3,740,590      
Vesting of restricted and performance-based restricted stock units 0 $ 4 (4)    
Repurchase of common stock (in shares)   (4,173,999)      
Repurchase of common stock (22,181) $ (4) (22,177)    
Stock-based compensation 46,096   46,096    
Other comprehensive income (loss) 44       44
Net loss (897)     (897)  
Ending balance (in shares) at Dec. 31, 2024   165,942,864      
Ending balance at Dec. 31, 2024 $ 683,223 $ 166 $ 899,754 $ (216,726) $ 29
v3.25.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Operating activities      
Net loss $ (897) $ (58,287) $ (45,968)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:      
Depreciation and amortization 14,436 10,289 6,020
Stock-based compensation 43,401 52,862 46,024
Charitable donation of Class A common stock 823 1,136 1,406
Provision for expected credit losses 4,458 2,874 283
Non-cash lease expense 2,258 2,726 2,388
Deferred income tax benefit 0 0 (1,519)
Loss on disposal of assets 0 38 0
Non-cash impairment charges 1,199 0 2,806
Other non-cash operating activities, net (2,052) (2,328) (1,135)
Changes in operating assets and liabilities:      
Accounts receivable 4,217 (25,009) (5,642)
Contract assets (954) (187) 377
Prepaid expenses and other current and noncurrent assets (4,890) (969) (5,191)
Deferred contract costs (706) (3,527) (839)
Accounts payable (3,151) 2,324 (130)
Accrued expenses and other current liabilities (16,155) 15,891 7,308
Operating lease liabilities (2,844) (2,905) (2,535)
Unearned revenue 654 (1,597) (1,243)
Other liabilities, noncurrent (109) 101 (66)
Net cash provided by (used in) operating activities 39,688 (6,568) 2,344
Investing activities      
Purchases of property and equipment (883) (93) (517)
Capitalized internal-use software (11,811) (13,011) (8,480)
Acquisitions, net of cash acquired 0 0 (49,241)
Purchases of investments (118,528) (130,428) (151,723)
Sales and maturities of investments 114,350 124,042 51,478
Net cash used in investing activities (16,872) (19,490) (158,483)
Financing activities      
Cash received for employee payroll tax withholdings 9,860 15,528 9,094
Cash paid for employee payroll tax withholdings (9,823) (15,527) (9,094)
Payment of deferred offering costs 0 0 (423)
Proceeds from exercise of stock options and purchases under the employee stock purchase plan 7,867 12,282 12,244
Repurchase of common stock (22,181) (58,080) (20,054)
Net cash used in financing activities (14,277) (45,797) (8,233)
Net increase (decrease) in cash and cash equivalents 8,539 (71,855) (164,372)
Cash and cash equivalents, beginning of year 278,218 350,073 514,445
Cash and cash equivalents, end of year 286,757 278,218 350,073
Supplemental disclosure of cash flow information      
Cash paid for income taxes, net 270 73 292
Supplemental disclosure of non-cash investing and financing activities      
Right-of-use assets obtained in exchange for new operating lease liabilities 0 0 20,168
Capitalization of stock-based compensation for internal-use software 2,700 3,607 2,208
Vesting of early exercised stock options 0 97 232
Employee receivables for options exercised 0 0 18
Purchase of property and equipment $ 0 $ 7 $ 7
v3.25.0.1
Business
12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Business Business
Olo Inc. was formed on June 1, 2005 in Delaware and is headquartered in New York City. On January 14, 2020, our Board of Directors and stockholders approved our name change from Mobo Systems, Inc. to Olo Inc. Unless the context otherwise indicates or requires, references to “we,” “us,” “our,” and “the Company” shall refer to Olo Inc.
We are an open SaaS platform for restaurants. Our platform powers restaurant brands’ on-demand digital commerce operations, enabling digital ordering, delivery, engagement, and payments, while further strengthening and enhancing restaurants’ direct guest relationships. We provide restaurants with a business-to-business-to-guest, enterprise-grade, open SaaS platform to manage their complex digital businesses and enable fast and more personalized experiences for their guests. Our platform and application programming interfaces seamlessly integrate with a wide range of solutions, unifying disparate technologies across the restaurant ecosystem. Restaurant brands rely on us to increase their digital omni-channel sales, maximize profitability, establish and maintain direct guest relationships, and collect, protect, and leverage valuable customer data.
v3.25.0.1
Significant Accounting Policies
12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Significant Accounting Policies Significant Accounting Policies
Basis of Presentation
The accompanying consolidated financial statements and accompanying notes were prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and in accordance with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). The consolidated financial statements include the accounts of Olo Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Reclassifications
Effective January 1, 2023, we began allocating certain employee-related costs to platform cost of revenues, professional services and other cost of revenues, sales and marketing, and research and development expenses. Previously, such costs had been presented within general and administrative expenses on our consolidated statement of operations. These costs are allocated based on each department’s proportionate share of total employee headcount. We determined that these changes would better reflect industry practice and provide more meaningful information as well as increased transparency of our operations.
The following employee-related cost reclassifications were made to conform to the current year presentation and had no effect on previously reported operating loss, net loss, or accumulated deficit for the year ended December 31, 2022:
For the year ended December 31, 2022, $2.7 million was reclassified from general and administrative expense as follows: $0.8 million into platform cost of revenue, $0.1 million into professional services and other cost of revenue, $0.4 million into sales and marketing expenses, and $1.3 million into research and development expenses.
Use of Estimates
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period.
We regularly assess these estimates, including but not limited to, stock-based compensation including the determination of the fair value of our equity awards, realization of deferred tax assets, estimated life of our long-lived assets, purchase price allocations for business combinations, valuation of the acquired intangibles purchased in a business combination, valuation of goodwill, and the adequacy of reserves associated with accounts receivable. We base these estimates
on historical experience and on various other market-specific and relevant assumptions that we believe to be reasonable under the circumstances. Actual results could differ from these estimates and such differences could be material to our financial position and results of operations.
Segment Information
An operating segment is defined as a component of an enterprise for which discrete financial information is evaluated regularly by the chief operating decision maker (“CODM”). We define the CODM as the Chief Executive Officer, as his role is to make decisions about allocating resources and assessing performance. Our business operates in one operating segment, which we have also determined to be one reporting unit for goodwill impairment testing, as all of our offerings operate on a single platform and are deployed in an identical way with our CODM evaluating our financial information, resources, and performance of these resources on a consolidated basis. Please refer to “Note 15—Business Segments” of our consolidated financial statements.
Concentrations of Business and Credit Risk
We are exposed to concentrations of credit risk primarily through our cash, cash equivalents, and short- and long-term investments held by financial institutions. We primarily deposit our cash, cash equivalents, and investments with financial institutions that management believes are of high credit quality and the amounts on deposit may exceed federally insured limits at various times. We have not experienced any significant losses in such accounts and believe we are not exposed to any significant risk. For the years ended December 31, 2024, 2023, and 2022, one customer accounted for 9%, 12%, and 12% of our revenue, respectively.
Cash and Cash Equivalents
Cash and cash equivalents are stated at fair value. We consider all short-term, highly liquid investments, with an original maturity of three months or less, to be cash equivalents. In 2023, we received restricted cash on behalf of the subtenant of our corporate headquarters at One World Trade Center in advance of certain rental obligations that were due from the subtenant. The remaining balance we received on behalf of the subtenant of $2.0 million is included in cash and cash equivalents in the consolidated balance sheets as of December 31, 2023. See “Note 10—Leases” for more details.
Investments
Management determines the appropriate classification of investments at the time of purchase based upon management’s intent with regard to such investments. Our investments are classified as available-for-sale at the time of purchase, and we reevaluate such classification as of each balance sheet date. We consider all highly liquid investments with an original maturity of 90 days or less when purchased to be cash equivalents. Investments with remaining contractual maturities of one year or less from the balance sheet date, which are not considered cash equivalents, are classified as short-term investments, and those with remaining contractual maturities greater than one year from the balance sheet date are classified as long-term investments. All investments are recorded at their estimated fair value, and any unrealized gains and losses, net of taxes, are recorded in accumulated other comprehensive loss, which is reflected as a separate component of stockholders’ equity in the consolidated balance sheets. Realized gains and losses on sales and maturities of investments are determined based on the specific identification method and are recognized in the consolidated statements of operations.
We perform periodic evaluations to determine whether any declines in the fair value of investments below cost are other-than-temporary. The evaluation consists of qualitative and quantitative factors regarding the severity and duration of the unrealized loss, as well as our ability and intent to hold the investments until a forecasted recovery occurs. The impairments are considered to be other-than-temporary if they are related to deterioration in credit risk or if it is likely that the underlying securities will be sold prior to a full recovery of their cost basis. Other-than-temporary fair value impairments, if any, are determined based on the specific identification method and are reported in other (expense) income, net in the consolidated statements of operations.
Accounts Receivable, Net
Accounts receivable, net are stated at net realizable value and include unbilled receivables. Unbilled receivables arise primarily from transactional services provided in advance of billing. Accounts receivable are net of an allowance for credit
losses, are not collateralized, and do not bear interest. Payment terms vary by contract type but are generally due within 30 days. The accounts receivable balance at December 31, 2024 and 2023 included unbilled receivables of $1.0 million and $0.7 million, respectively.
We assess the collectability of outstanding accounts receivable on an ongoing basis and maintain an allowance for credit losses for accounts receivable deemed uncollectible. Upon adoption of Accounting Standards Update (“ASU”) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, we analyzed our accounts receivable portfolio for significant risks, historical activity, and an estimate of future collectability to determine the amount that will ultimately be collected. This estimate is analyzed for expected credit losses annually and updated periodically as necessary or upon certain triggering events, based on the financial condition of customers, which includes the delinquency level, historical write-off experience, customer type, and other assumptions such as the current economic environment.
The following summarizes our allowance for credit losses activity (in thousands):
Year Ended
December 31,
202420232022
Beginning balance$2,785 $612 $657 
Provision for expected credit losses4,458 2,874 283 
Writeoffs(2,651)(701)(328)
Ending balance$4,592 $2,785 $612 
Deferred Contract Costs
We capitalize the incremental costs of obtaining a revenue contract, including sales commissions for new and renewal revenue contracts, certain related incentives, and associated payroll tax and fringe benefit costs. Capitalized amounts are recoverable through future revenue streams under customer contracts.
We allocate costs capitalized for contracts to the related performance obligations and amortize these costs on a straight-line basis over the expected period of benefit of those performance obligations. We determined that commissions paid on renewals are commensurate with commissions paid on initial contracts. Accordingly, we amortize commissions on initial contracts over the contract period which is generally three years. We also amortize commissions on renewal contracts over the renewal contract period, which are generally between one to three years. Amounts expected to be recognized within one year of the balance sheets date are recorded as current deferred contract costs. The remaining portion is recorded as non-current deferred contract costs in the accompanying consolidated balance sheets. Amortization of costs capitalized to obtain revenue contracts is included in sales and marketing expense in the accompanying consolidated statements of operations.
We periodically evaluate whether there have been any changes in our business, market conditions, or other events which would indicate that the amortization period should be changed, or if there are potential indicators of impairment. For the years ended December 31, 2024, 2023, and 2022, we have not identified any potential indicators of material impairment.
Property and Equipment, Net
Property and equipment, net is recorded at cost, and presented net of accumulated depreciation. Cost and the related accumulated depreciation are deducted from the accounts upon retirement. Significant additions or improvements extending the useful life of an asset are capitalized, while repairs and maintenance costs are expensed as incurred. Leasehold improvements are amortized on a straight-line basis over the shorter of the term of the lease, or the useful life of the assets. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets.
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. If circumstances require a long-lived asset or asset group to be tested for possible impairment, we first compare undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. See “Note 5—Property and Equipment” for additional information on long-lived asset impairments.
Capitalized Internal-Use Software
We capitalize certain qualified costs incurred in connection with the development of internal-use software. We evaluate the costs incurred during the application development stage of internal use software to determine whether the costs meet the criteria for capitalization. Costs related to preliminary project activities and post implementation activities are expensed as incurred. See “Note 5—Property and Equipment” for additional information on our capitalized internal-use software.
Business Combinations
We account for acquisitions using the acquisition method of accounting and determine whether a transaction constitutes a business and is treated as a business combination or if the transaction does not constitute a business and is treated as an asset acquisition. The acquisition method of accounting requires, among other things, allocation of the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed at their estimated fair values on the acquisition date. The results of businesses acquired in a business combination are included in our consolidated financial statements from the date of acquisition.
Determining the fair value of assets acquired and liabilities assumed requires management to use significant judgment and estimates, including estimates of future revenue and adjusted earnings before interest and taxes and discount rates. Our estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ materially from estimates. Our estimates associated with the accounting for business combinations may change as additional information becomes available regarding the assets acquired and liabilities assumed. Any change in facts and circumstances that existed as of the acquisition date and impacts our estimates is recorded to goodwill if identified within the measurement period. Subsequent to the measurement period or our final determination of fair value of assets and liabilities, whichever is earlier, the adjustments will affect our earnings.
Transaction related expenses incurred in a business combination are not included as a component of consideration transferred, but are accounted for as an expense in the period in which the costs are incurred.
Goodwill and Intangible Assets
Goodwill represents the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interest, if any, over the fair value of identifiable assets acquired and liabilities assumed in a business combination. We have no intangible assets, other than goodwill, with indefinite useful lives.
Intangible assets other than goodwill are comprised of acquired developed technology, customer relationships, and trademarks. At initial recognition, intangible assets acquired in a business combination or asset acquisition are recognized at their fair value as of the date of acquisition. Following initial recognition, intangible assets are carried at acquisition date fair value less accumulated amortization and impairment losses, if any, and are amortized on a straight-line basis over the estimated useful life of the asset. We assess the impairment of intangible assets whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
We review goodwill for impairment annually during the fourth quarter of each fiscal year or whenever events or changes in circumstances indicate that an impairment may exist. In conducting our annual impairment test, we review qualitative factors (including macroeconomic conditions, industry and market considerations, cost factors, and overall financial performance) to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. This step is referred to as the “Step Zero” assessment. If factors indicate that it is more likely than not (a likelihood of more than 50%) that the fair value of the reporting unit is less than its carrying amount, we proceed to a quantitative (“Step One”) assessment to determine the existence and amount of any goodwill impairment. In performing a Step One assessment, the fair value of the reporting unit is determined by using a discounted cash flow method where we analyze the expected present value of future cash flows. If the carrying value of the reporting unit continues to exceed its fair value, the fair value of the reporting unit’s goodwill is calculated and an impairment loss equal to the excess is recorded. We evaluated goodwill using a Step Zero analysis during the fourth quarter and determined that goodwill was not impaired. There were no impairment charges recognized related to goodwill or intangible assets during the years ended December 31, 2024, 2023, and 2022.
Leases
We determine if an arrangement is a lease or contains a lease at inception. Our lease agreements are generally for office facilities, and the determination of whether such agreements contain leases generally does not require significant estimates or judgments. Our leases may also contain non-lease components such as payments of maintenance, utilities, and taxes, which we have elected to account for separately, as these amounts are readily determinable. At the commencement date of a lease, we recognize a liability to make lease payments and an asset representing the right to use the underlying asset during the lease term. The lease liability is measured at the present value of the minimum rental payments discounted using our incremental borrowing rate (“IBR”) over the lease term (or, if readily determinable, the rate implicit in the lease). The IBR is the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment. We determine our IBR by obtaining interest rates from various external financing sources and made certain adjustments to reflect the terms of the lease and type of the asset leased. The right-of-use asset is measured at cost, which includes the initial measurement of the lease liability and initial direct costs incurred and excludes lease incentives. We subleased a portion of our office space and recognized rental income on a straight-line basis as an offset to other leases costs, net, which is allocated across cost of revenue and operating expenses accordingly.
The lease term used to measure right-of-use lease assets and lease liabilities may include renewal options which are deemed reasonably certain to be exercised. Operating lease costs are recognized on a straight-line basis over the lease term. Variable lease payments are expensed as incurred. Our leases do not contain any material residual value guarantees or material restrictive covenants.
Income Taxes
Deferred income taxes are recorded for the expected tax consequences of temporary differences between the tax basis of assets and liabilities for financial reporting purposes and amounts recognized for income tax purposes. We periodically review the recoverability of deferred tax assets recorded on the balance sheet and provide valuation allowances as deemed necessary to reduce such deferred tax assets to the amount that will, more likely than not, be realized. We maintain a full valuation allowance on our net federal and state deferred tax assets.
Significant judgment is required in determining any valuation allowance recorded against deferred tax assets. In assessing the need for a valuation allowance, we consider all available evidence for each jurisdiction including past operating results, estimates of future taxable income and the feasibility of ongoing tax planning strategies. In the event we change our determination as to the amount of deferred tax assets that can be realized, we will adjust our valuation allowance with a corresponding impact to income tax expense in the period in which such determination is made.
The amount of deferred tax provided is calculated using tax rates enacted at the balance sheet date. The impact of tax law changes is recognized in periods when the change is enacted.
A two-step approach is applied in the recognition and measurement of uncertain tax positions taken or expected to be taken in a tax return. The first step is to determine if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained in an audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement.
Our policy is to recognize interest and penalty expenses associated with uncertain tax positions as a component of income tax expense. We are required to file tax returns in the U.S. federal jurisdiction and various states.
Revenue Recognition
We derive our revenue primarily from platform fees to access our software platform and professional services. Revenue is recognized when control of these services transfers to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those services. Sales taxes collected from customers and remitted to various governmental authorities are excluded from the measurement of the transaction price and presented on a net basis in our consolidated statements of operations. Any balance collected and not paid is reflected as a liability on the balance sheets. The calculation of revenue is dependent upon the effective design and operation of the controls over system interfaces as well as controls over the accuracy and completeness of revenue. The process to extract information from systems and databases is manual.
Platform Revenue
Platform revenue primarily consists of fees that provide customers access to one or more of our modules and standard customer support. Our contracts typically have initial terms of three years or longer, with continuous one-to-two-year automatic renewal periods. A majority of our platform revenue is derived from contracts with our restaurant customers to provide our Order Platform solutions, which consist of any combination of our modules, including Ordering, Dispatch, Rails, or any of our other Order suite add-on modules. The modules may be bundled as a package, or sold on an a la carte basis. We also generate platform revenue from our Engage suite of tailored marketing solutions, which consist of our Guest Data Platform (“GDP”), Marketing, Sentiment, Sync, and Host modules. Additionally, we generate platform revenue from our Olo Pay module, which became commercially available during 2022.
Our Order Platform and Engage solutions comprise a stand-ready obligation to provide access to the platform that is satisfied over the contract term. We generally bill customers on a monthly basis, in arrears. Our contracts which provide bundled offerings of the Order Platform and Engage modules earn monthly fixed fees in consideration for stand-ready access to our platform for these offerings. By contrast, our contracts where modules are sold a la carte (“non-bundled”) earn monthly fixed fees for a specified quantity of orders processed on the platform, plus monthly overage fees. For contracts with variable rates, we estimate this variable consideration using the expected value method based upon our estimates of the number of orders expected to be processed under the contract. We allocate the variable consideration related to the monthly overages to the distinct month during which the related services were performed, as those fees relate specifically to providing modules such as Ordering and Rails and represent the consideration we are entitled to for providing access to the platform during that month. As a result, applicable fixed monthly fees and monthly overages are included in the transaction price and recognized as revenue in the period in which the fees are generated. In non-bundled contracts where the Dispatch module is also offered, we collect a transaction fee from the restaurant for each transaction processed, and revenue is recognized at the point that delivery of orders to the restaurants’ customers is facilitated. These fees per transaction are included in the transaction price and recognized as revenue in the period in which the fees are generated.
In addition to the offerings above to our restaurant customers, we also generate revenue from our arrangements with third-party channels. Specifically, we partner with delivery service partners (“DSPs”) to enable our restaurant customers to offer, manage, and expand delivery to their customers. The Dispatch module connects restaurants with DSPs to facilitate the delivery of orders to the restaurants’ customers. We typically collect a per transaction fee from the DSP. Revenue is recognized when we have arranged for a DSP to deliver the order to the end guest. In addition, our Rails module allows our customers to control and manage menu availability and pricing and location information while directly integrating orders from third-party channels. We typically receive a fee from the third-party channel for each transaction processed. No minimum monthly amounts or overage fees are charged to the third-party channel in these arrangements.
Our Olo Pay module provides a fully-integrated, frictionless payment platform, enabling restaurants to grow and protect their digital business through an improved customer payment experience, offering advanced fraud prevention designed to improve authorization rates for valid transactions, and increase basket conversion. We typically collect a per transaction fee from the restaurant for orders processed using our Olo Pay module. Revenue is recognized at the time of the transaction.
Professional Services and Other Revenue
Professional services and other revenue primarily consists of fees for platform implementation services. The implementation fees in our contracts are generally a fixed fee over the duration of the implementation services. Our customers benefit from our services as they are provided, and we use a cost-to-cost measure of progress to recognize revenue from our implementation services.
In certain contracts, we engage third parties to assist in providing professional services to our customers. We determined we are the principal in transferring these services to the customer and recognize revenue on a gross basis. We control the services being provided to our customer and are responsible for ensuring that the services are performed and are acceptable to our customer. That is, we are responsible for fulfillment of the promise in the contract with our customer, and we also have discretion in setting the price with our customer.
Contracts with Multiple Performance Obligations
Our contracts with customers may contain multiple performance obligations. We identify performance obligations in a contract with a customer based on the goods and services that will be transferred to the customer that are capable of being distinct and that are separately identifiable from other promises in the contract. If not considered distinct, the promised goods or services are combined with other goods or services and accounted for as a combined performance obligation. Identifying distinct performance obligations in a contract requires judgment. Our performance obligations primarily include access to our platform and its different modules and implementation services associated with the platform.
We have determined that the variable consideration allocation exception is generally applicable to our contracts, as the pricing for each service is generally commensurate with the value delivered to the customer for the provision of that service. If we determine for specific contracts that the allocation objective is not met, we analyze these contracts to determine whether a relative standalone selling price allocation should be performed.
All implementation services are generally distinct and accounted for as separate performance obligations. For contracts with multiple performance obligations, the transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. We determine standalone selling price based on the price at which the distinct good or service is sold separately. If the standalone selling price is not observable through past transactions, we estimate the standalone selling price taking into account available information such as market conditions, internally approved pricing, and cost-plus expected margin guidelines related to the performance obligations.
Contract Balances
The timing of revenue recognition may differ from the timing of invoicing to customers. We record a receivable when revenue is recognized upon invoicing and payment will become due solely due to the passage of time. We record a contract asset when revenue is recognized prior to invoicing or payment is contingent upon transfer of control of another separate performance obligation. We record unearned revenue when revenue is recognized subsequent to cash collection. Unearned revenue that will be recognized during the succeeding 12-month period is recorded as current, and the remaining unearned revenue is recorded as non-current. Contract assets that will be billed to the customer during the succeeding 12-month period are recorded as current and the remaining contract assets are recorded as non-current.
Payment terms and conditions vary by contract type, although terms generally include a requirement for payment to be made within 30 days. We elected the practical expedient to not assess whether a significant financing component exists if the period between when we transfer a promised good or service to a customer and when the customer pays for that good or service is one year or less.
Cost of Revenue
Platform
Platform cost of revenue primarily consists of costs directly related to our platform services, including expenses for customer support and infrastructure personnel, including salaries, payroll taxes, benefits, bonuses, and stock-based compensation, which we refer to as personnel costs, third-party software licenses, hosting, amortization of capitalized internal-
use software and developed technology, payment processing, and allocated overhead costs associated with delivering these services.
Professional services and other
Professional services and other cost of revenue primarily consists of the personnel costs of our deployment team associated with delivering these services and allocated overhead.
Research and Development Costs
Research and development expenses primarily consist of engineering and product development personnel costs and allocated overhead costs. Research and development costs exclude capitalized internal-use software development costs, as they are capitalized as a component of property and equipment, net and amortized to platform cost of revenue over the term of their estimated useful life.
Sales and Marketing
Sales and marketing expenses primarily consist of sales and marketing costs, personnel costs for our sales and marketing teams, sales commissions, amortization of customer relationships acquired through business combinations, promotional activities, and allocated overhead costs. Sales commissions earned by our sales force are deferred and amortized on a straight-line basis over the expected benefit period.
We expense all advertising costs when incurred. We incurred advertising expenses of approximately $1.0 million, $1.5 million, and $0.9 million during the years ended December 31, 2024, 2023, and 2022, respectively. Advertising expense is recorded as a component of sales and marketing expenses in the consolidated statements of operations.
General and Administrative
General and administrative expenses primarily consist of personnel costs and contractor fees for finance, legal, human resources, information technology, and other administrative functions. In addition, general and administrative expenses include litigation costs, net of recoveries, amortization of trademarks, travel-related expenses, and allocated overhead.
Restructuring Charges
Restructuring charges are comprised of severance costs, payroll taxes, benefits, and stock-based compensation expense associated with the accelerated vesting of equity awards. These charges were incurred as a result of separate workforce reductions in the third quarter of 2024 and the second quarter of 2023.
Restructuring charges were recorded under a one-time benefit arrangement and accounted for in accordance with ASC 420 Exit or Disposal Cost Obligations. One-time termination benefits were expensed at the date the employees were notified. See “Note 17—Restructuring Charges” for additional information on amounts recorded.
Stock-Based Compensation
We measure compensation expense for all stock-based payment awards, including stock options, restricted stock units (“RSUs”), and performance-based restricted stock units (“PSUs”) granted to employees, directors, and non-employees, as well as purchases under our 2021 Employee Stock Purchase Plan (“ESPP”), based on the estimated fair value of the awards on the date of grant. Compensation expense associated with stock options, RSUs, and the relative total shareholder return PSUs awarded in 2024 (“Relative TSR PSUs”), is recognized ratably in earnings, generally over the period during which an employee is required to provide service. Compensation expense associated with the PSUs awarded in 2023 (“2023 PSUs”) and the absolute total shareholder return PSUs (“Absolute TSR PSUs”) is recognized using the accelerated attribution method over the period we expect the service and performance conditions under the award will be achieved. Compensation expense associated with our ESPP is recognized over the offering period for the purchase rights issued under the plan. We adjust compensation expense based on actual forfeitures as necessary.
Time-Based Service Awards
Our stock options and RSUs generally vest ratably over a four-year period and the fair value of stock options and ESPP shares is estimated on the date of grant using a Black-Scholes option pricing model. Awards with graded vesting features are recognized over the requisite service period for the entire award. The determination of the grant date fair value of stock awards issued is affected by a number of variables and subjective assumptions, including (i) the fair value of our common stock, (ii) the expected common stock price volatility over the expected life of the award, (iii) the expected term of the award, (iv) risk-free interest rates, (v) the exercise price, and (vi) the expected dividend yield of our common stock.
We estimate the expected term based on the simplified method, which is the mid-point between the vesting date and the end of the contractual term for each award. The risk-free interest rate is based on the United States Treasury yield curve in effect at the time of grant whose term is consistent with the expected life of the award.
Expected dividend yield is zero percent, as we have not paid, and do not anticipate paying, dividends on our Class A common stock or Class B common stock. Upon the exercise of a stock option award or the vesting of an RSU award, shares of either our Class A common stock or Class B common stock are issued from authorized but unissued shares. The fair value for RSUs is calculated based on the stock price on the date of grant and our RSUs generally vest ratably over a four-year period.
Performance-Based Awards
In 2024, we awarded market-based Absolute TSR PSUs and Relative TSR PSUs to executives that will vest over approximately three years based upon achievement of (a) certain stock price targets and (b) our target total shareholder return (“TSR”), respectively. The Relative TSR PSUs will vest relative to the TSR of companies in the Russell 2000 Index over the specified performance period. In each case, vesting will be subject to the executive’s continuous service through the last day of the applicable performance period. Depending on achievement of the market-based metrics, the number of PSUs issued could range from 0% to 200% of the target PSUs. The fair value of the 2024 PSUs is determined using a Monte Carlo simulation model on the date of the grant.
In 2023, we awarded PSUs (“2023 PSUs”), which have performance and service vesting requirements. The fair value for PSUs is calculated based on the stock price on the date of grant and the PSUs vest depending on the achievement of certain financial metrics relative to the approved performance targets. During the year ended December 31, 2024 we completed our assessment of the 2023 PSUs based on the actual financial metrics achieved relative to the target financial metrics for the year ended December 31, 2023. The remaining eligible shares will vest according to the time-based service requirements, subject to the applicable executive’s continued service as of each vesting date.
Net Loss Per Share Attributable to Common Shareholders
We compute net loss per share using the two-class method required for multiple classes of common stock and participating securities. The two-class method requires income (loss) available to common stockholders for the period to be allocated between the common stock and participating securities based upon their respective rights to receive dividends as if all income (loss) for the period had been distributed.
The rights, including the liquidation and dividend rights, of the Class A common stock and Class B common stock are substantially identical, other than voting rights. Accordingly, the Class A common stock and Class B common stock shared proportionately in our net losses. No other participating securities were issued and outstanding as of December 31, 2024 and 2023.
Basic net loss per share attributable to Class A and Class B common stockholders is calculated by dividing the net loss attributable to Class A and Class B common stockholders by the weighted-average number of shares of Class A and Class B common stock outstanding for the period. The diluted net loss per share is computed by giving effect to all potentially dilutive securities outstanding for the period using the treasury stock method or the if-converted method based on the nature of such securities. Because we reported losses attributable to common stockholders for all periods presented, all potentially dilutive common stock is antidilutive for those periods.
Recently Adopted Accounting Pronouncements
In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires public entities to disclose information about their reportable segments’ significant expenses and other segment items on an interim and annual basis. Public entities with a single reportable segment are required to apply the disclosure requirements in ASU 2023-07, as well as all existing segment disclosures and reconciliation requirements in ASC 280 on an interim and annual basis. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. Adoption of the ASU is applied retrospectively to all prior periods presented in the financial statements. We adopted this ASU during the year ended December 31, 2024. For further information regarding the Company’s Business Segments, please refer to “Note 15—Business Segments” of our consolidated financial statements included in Item 8 of this Annual Report on Form 10-K.
Recently Issued Accounting Pronouncements
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. We do not expect that the adoption of the new guidance will have a material impact on our consolidated financial statements and related disclosures.
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures, which requires disclosure of disaggregated information about certain income statement expense line items in the notes to the financial statements on an interim and annual basis. ASU 2024-03 will be effective for the annual reporting periods in fiscal years beginning after December 15, 2026, with early adoption permitted. We are currently evaluating the impact that the adoption of ASU 2024-03 will have on our consolidated financial statements.
v3.25.0.1
Revenue Recognition
12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
The following table disaggregates revenue by type (in thousands):
Year Ended December 31, 2024
PlatformProfessional
Services and
Other
Total
Timing of revenue recognition
Transferred over time$128,166 $3,384 $131,550 
Transferred at a point in time153,388 — 153,388 
Total revenue$281,554 $3,384 $284,938 
Year Ended December 31, 2023
PlatformProfessional
Services and
Other
Total
Timing of revenue recognition
Transferred over time$100,639 $3,110 $103,749 
Transferred at a point in time124,540 — 124,540 
Total revenue$225,179 $3,110 $228,289 
Year Ended December 31, 2022
PlatformProfessional
Services and
Other
Total
Timing of revenue recognition
Transferred over time$92,304 $4,111 $96,415 
Transferred at a point in time88,989 — 88,989 
Total revenue$181,293 $4,111 $185,404 
Contract Balances
Contract Assets
As described in “Note 2–Significant Accounting Policies,” professional services revenue is generally recognized ratably over the implementation period, beginning on the commencement date of each contract. Platform revenue is recognized as the services are delivered. We record a contract asset when revenue recognized on a contract exceeds the billings. Our standard billing terms are monthly; however, the billings may not be consistent with the pattern of recognition, based on when services are performed. Contract assets were $1.7 million and $0.8 million as of December 31, 2024 and 2023, respectively.
Unearned Revenue
Unearned revenue primarily consists of billings or payments received in advance of revenue recognition from subscription services and is recognized as revenue when transfer of control to customers has occurred. During the year ended December 31, 2024, we recognized $1.5 million of revenue related to contracts that were included in unearned revenue at December 31, 2023. During the year ended December 31, 2023, we recognized $1.9 million of revenue related to contracts that were included in unearned revenue at December 31, 2022.
As of December 31, 2024, our remaining performance obligations were approximately $44.8 million, approximately 48% of which we expect to recognize as revenue over the next 12 months, and substantially all of the remaining revenue will be recognized thereafter over the next 24 to 48 months. These amounts only include contracts subject to a guaranteed fixed amount or the guaranteed minimum under variable contracts. Unrecognized revenue under contracts disclosed above do not include (1) contracts with an original expected term of one year or less; (2) contracts for which variable consideration is determined based
on the customer’s subsequent sale or usage; or (3) agreements for which our right to invoice corresponds with the value provided to the customer.
Deferred Contract Costs
The following table summarizes the activity of current and non-current deferred contract costs (in thousands):
Year Ended
December 31,
20242023
Balance at beginning of period$10,549 $7,022 
Capitalization of deferred contract costs6,442 8,140 
Amortization of deferred contract costs(5,735)(4,613)
Balance at end of period$11,256 $10,549 
v3.25.0.1
Fair Value Measurement
12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurement Fair Value Measurement
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We apply the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:
Level 1 inputs: Based on unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2 inputs: Based on observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 inputs: Based on unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities, and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability.
The following tables present the costs, net unrealized gains (losses), and fair value by major security type for our investments as of December 31, 2024 and 2023 (in thousands):
As of December 31, 2024
Cost
Net Unrealized Gains (Losses)
Fair ValueCash and cash equivalentsShort-term investmentsLong-term investments
Cash$151,820 $— $151,820 $151,820 $— $— 
Level 1:
Money market funds133,739 — 133,739 133,739 — — 
Commercial paper7,923 7,929 1,198 6,731 — 
Subtotal141,662 141,668 134,937 6,731 — 
Level 2:
Certificates of deposit23,291 13 23,304 — 23,304 — 
U.S. Government and agency securities45,668 (13)45,655 — 23,660 21,995 
Corporate bonds40,641 23 40,664 — 20,283 20,381 
Subtotal109,600 23 109,623 — 67,247 42,376 
Level 3:— — — — — — 
Total$403,082 $29 $403,111 $286,757 $73,978 $42,376 
As of December 31, 2023
CostNet Unrealized (Losses) GainsFair ValueCash and cash equivalentsShort-term investmentsLong-term investments
Cash$130,566 $— $130,566 $130,566 $— $— 
Level 1:
Money market funds147,652 — 147,652 147,652 — — 
Commercial paper16,408 11 16,419 — 16,419 — 
Subtotal164,060 11 164,071 147,652 16,419 — 
Level 2:
Certificates of deposit15,366 21 15,387 — 15,387 — 
U.S. Government and agency securities49,393 (73)49,320 — 33,198 16,122 
Corporate bonds28,927 26 28,953 — 19,327 9,626 
Subtotal93,686 (26)93,660 — 67,912 25,748 
Level 3:— — — — — — 
Total$388,312 $(15)$388,297 $278,218 $84,331 $25,748 
Our assets measured at fair value on a nonrecurring basis include long-lived assets and finite-lived intangibles, which are considered to be Level 3 inputs. During the year ended December 31, 2024, we recorded a non-cash impairment charge of $0.6 million related to a portion of our internal-use software that was non-recoverable. This amount was recorded in research and development expenses. In addition, we recorded a non-cash impairment charge of $0.6 million related to our operating lease right-of-use assets, as we committed in June 2024 to our plan to abandon our prior office space, and we relocated our corporate headquarters back to One World Trade Center in July 2024. This amount was recorded in general and administrative expenses. No material impairment charges were recorded during the year ended December 31, 2023. During the year ended December 31, 2022, we determined that the estimated fair value of a portion of our internal-use software was non-recoverable, and we recorded a non-cash impairment charge of $0.5 million.” In addition, during the year ended December 31, 2022, we entered into a sublease of our corporate headquarters, and in connection with this, we recorded a non-cash impairment charge of $2.3 million related to our right-of-use asset and furniture and fixtures within the leased space.
Accounts receivable, accounts payable, and accrued expenses are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment date.
v3.25.0.1
Property and Equipment
12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
Property and equipment consisted of the following (in thousands):
As of December 31,
Estimated Useful Life
(in Years)
20242023
Computer and office equipment
3 - 5
$2,316 $1,800 
Capitalized internal-use software344,163 30,288 
Furniture and fixtures1033 33 
Leasehold improvementsShorter of estimated useful life or remaining term of lease59 45 
Total property and equipment46,571 32,166 
Less: accumulated depreciation and amortization(20,253)(10,111)
Total property and equipment, net$26,318 $22,055 
Depreciation and amortization expense was approximately $10.5 million, $6.3 million, and $2.2 million for the years ended December 31, 2024, 2023, and 2022, respectively.
We recorded a non-cash impairment charge of $0.1 million for the year ended December 31, 2022 in connection with the sublease of our former corporate headquarters, as we determined a group of assets in the leased space was no longer recoverable. This amount was recorded in general and administrative expenses within the consolidated statement of operations.
Capitalized Internal-Use Software
As of December 31, 2024 and 2023 gross capitalized costs related to internal-use software of $44.2 million and $30.3 million, respectively, were included within property and equipment, net on the balance sheet, and such amounts are amortized on a straight-line basis over the estimated useful life of the software within platform cost of revenue. Amortization expense recorded for the years ended December 31, 2024, 2023, and 2022 was $10.1 million, $5.9 million, and $1.7 million, respectively. Associated with the balances as of December 31, 2024, we expect our annual amortization expense for capitalized internal-use software to be $10.7 million in 2025, $6.3 million in 2026, and $1.8 million in 2027.
We recorded a non-cash impairment charge of $0.6 million during the year ended December 31, 2024 related to a portion of our internal-use software that was non-recoverable. We also recorded a non-cash impairment charge of $0.5 million during the year ended December 31, 2022 related to a portion of our internal-use software that was abandoned. These amounts were recorded in research and development expenses within the consolidated statement of operations.
v3.25.0.1
Acquisitions
12 Months Ended
Dec. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Acquisitions Acquisitions
Omnivore Acquisition
On February 20, 2022, we signed a definitive agreement to acquire Omnivore Technologies, Inc. (“Omnivore”), a restaurant technology provider that connects restaurants’ point-of-sale systems with technologies that improve efficiency and increase profitability. We closed the acquisition on March 4, 2022 for total consideration of approximately $49.3 million in cash, net of cash acquired and a post-closing working capital adjustment.
The operating results of Omnivore have been included in our consolidated statement of operations since the acquisition date. Actual results of operations from the date of acquisition through December 31, 2023 and supplemental pro forma revenue and results of operations have not been presented because the effects were not material to the consolidated financial statements.
We finalized the valuation of assets acquired and liabilities assumed for the acquisition of Omnivore during the year ended December 31, 2023. We did not record any measurement period adjustments during the year ended December 31, 2023.
Purchase Price Allocation
The acquisition was accounted for under the acquisition method in accordance with ASC 805, Business Combinations. The following table summarizes the allocation of the purchase price (at fair value), including measurement period adjustments, of the assets acquired and liabilities assumed of Omnivore (in thousands):
Final Purchase Price Allocation
Accounts receivable$451 
Other current assets148 
Operating lease right-of-use asset236 
Property and equipment24 
Other assets, noncurrent
Customer relationships1,290 
Developed technology4,410 
Trademark150 
Goodwill44,919 
Accounts payable(198)
Accrued expenses and other current liabilities(101)
Unearned revenue(226)
Operating lease liability, current(81)
Operating lease liability, noncurrent(177)
Deferred tax liability, net(1,519)
Total purchase price, net of cash acquired and post-closing working capital adjustment$49,335 
Customer relationships were measured at fair value using the multiple-period excess earnings method under the income approach. Significant inputs used to measure the fair value include an estimate of projected revenue and costs associated with existing customers, and a discount rate of 11.0%.
Developed technology was measured at fair value using the relief-from-royalty method of the income approach. Significant inputs used to measure the fair value include an estimate of projected revenue from existing technology, a pre-tax royalty rate of 20.0% and a discount rate of 11.0%.
Trademark was measured at fair value using the relief-from-royalty method under the income approach. Significant inputs used to measure the fair value include an estimate of projected revenue from the trademark, a pre-tax royalty rate of 1.0% and a discount rate of 11.0%.
Goodwill represents the future economic benefits expected to arise from other intangible assets acquired that do not qualify for separate recognition, including an experienced workforce that will help accelerate product development and go to market strategy, as well as expected future synergies generated by integrating Omnivore’s products with those in our existing platform. None of the goodwill is expected to be deductible for tax purposes.
We recorded $0.1 million in transaction related expenses, primarily related to compensation, advisory, legal, valuation, and other professional fees, for the year ended December 31, 2023. The transaction related expenses are recorded primarily within the sales and marketing and general and administrative expenses line items of the consolidated statements of operations.
v3.25.0.1
Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
The following table summarizes the changes in the carrying amount of goodwill (in thousands):
Balance at December 31, 2022207,781 
Adjustments— 
Balance at December 31, 2023$207,781 
Adjustments
— 
Balance at December 31, 2024$207,781 
The gross book value and accumulated amortization of intangible assets, net, as of December 31, 2024 and 2023 were as follows (in thousands):
Weighted-average Remaining Useful Life (in years)Gross Carrying ValueAccumulated AmortizationNet Carrying Value
Developed technology2.94$14,595 $(7,458)$7,137 
Customer relationships4.8810,921 (4,269)6,652 
Trademarks0.17486 (478)
Balance at December 31, 2024$26,002 $(12,205)$13,797 
Weighted-average Remaining Useful Life (in years)Gross Carrying ValueAccumulated AmortizationNet Carrying Value
Developed technology3.94$14,595 $(5,025)$9,570 
Customer relationships5.8710,921 (2,904)8,017 
Trademarks0.96486 (335)151 
Balance at December 31, 2023$26,002 $(8,264)$17,738 
Amortization expense associated with the acquired intangible assets was $3.9 million, $4.0 million, and $3.8 million for the years ended December 31, 2024, 2023, and 2022 respectively.
As of December 31, 2024, estimated amortization related to the identifiable acquisition-related intangible assets expected to be recognized in future periods was as follows (in thousands):
2025$3,806 
20263,798 
20273,515 
20281,488 
20291,164 
Thereafter26 
Total$13,797 
No goodwill or intangible asset impairment losses were recognized during the years ended December 31, 2024, 2023, or 2022.
v3.25.0.1
Accrued Expenses and Other Liabilities
12 Months Ended
Dec. 31, 2024
Payables and Accruals [Abstract]  
Accrued Expenses and Other Liabilities Accrued Expenses and Other Liabilities
Accrued expenses and other current liabilities consisted of the following (in thousands):
As of December 31,
20242023
Accrued delivery service partner fees$35,841 $39,964 
Accrued compensation and benefits9,733 9,148 
Professional and consulting fees1,303 3,866 
Accrued taxes1,830 1,068 
Accrued legal settlements (1)
— 9,000 
Sublease liability (2)
— 2,032 
Other
5,187 3,162 
Total accrued expenses and other current liabilities$53,894 $68,240 
(1) See “Note 14—Commitments and Contingencies” for details.
(2) We received restricted cash on behalf of the subtenant of our former corporate headquarters at One World Trade Center in advance of certain future rental obligations that will be due from the subtenant. See “Note 10—Leases” for more details.
v3.25.0.1
Line of Credit
12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Line of Credit Line of Credit
On June 10, 2022, we entered into the Second Amended and Restated Loan and Security Agreement with Pacific Western Bank (now known as Banc of California) related to a revolving credit and term loan facility (the “Second Amended and Restated LSA”).
The Second Amended and Restated LSA amended and restated the Amended and Restated Loan and Security Agreement, dated February 11, 2020, as amended (the “Prior LSA”) to, among other things, increase our available aggregate borrowing limit to $70.0 million and to provide the ability to request Banc of California to enter into commitments to increase the credit extensions available to us under the Second Amended and Restated LSA to up to $125.0 million (the “Accordion Facility”). The agreement is set to expire on May 12, 2025, however we intend to execute a new amendment to renew the agreement prior to this expiration.
Borrowings under the Second Amended and Restated LSA accrue interest at a variable annual rate equal to (i) in the case of Formula Advances (as defined in the Second Amended and Restated LSA), the greater of the variable rate of interest, per annum, most recently announced by Banc of California (the “Prime Rate”) or 3.25% or (ii) in the case of Term Loans (as defined in the Second Amended and Restated LSA), the greater of the Prime Rate plus 0.25% or 3.50%. The Second Amended and Restated LSA provides for a success fee payable upon an acquisition of Olo or termination of the Second Amended and Restated LSA (a “Success Fee Trigger”), in an amount equal to: (i) $400,000, if the Success Fee Trigger occurs prior to June 10, 2025; (ii) $200,000, if the Success Fee Trigger occurs on or after June 10, 2025 and prior to June 10, 2026; and (iii) $0, if the Success Fee Trigger occurs on or after June 10, 2026. We are also required to pay a fee of 1.0% of the difference between (i) the highest outstanding principal balance during the term of the Second Amended and Restated LSA and (ii) $3.5 million if a Liquidity Event (as defined in the Second Amended and Restated LSA) occurs during the term and or within 24 months after the termination of the Second Amended and Restated LSA. Our obligations under the Second Amended and Restated LSA are secured by substantially all of our assets, including certain securities owned by us in any subsidiary.
The Second Amended and Restated LSA includes a financial covenant requiring compliance with certain minimum revenue amounts. In addition, the Second Amended and Restated LSA contains representations and warranties generally consistent with the Prior LSA, as well as certain non-financial covenants, including, but not limited to, limitations on our ability to incur additional indebtedness or liens, pay dividends, or make certain investments. We were in compliance with these covenants as of December 31, 2024, and expect to remain in compliance for at least the upcoming twelve months.
The Second Amended and Restated LSA also contains events of default that include, among other things, non-payment defaults, covenant defaults, insolvency defaults, cross-defaults to other indebtedness and material obligations,
judgment defaults, inaccuracy of representations and warranties, and a material adverse change. Any default that is not cured or waived could result in Banc of California exercising its rights and remedies under the Second Amended and Restated LSA, including, but not limited to, the acceleration of the obligations under the Second Amended and Restated LSA and related documentation, and would permit Banc of California to exercise remedies with respect to all of the collateral that secured such obligations.
Banc of California has the right to terminate its obligation to make further advances to us immediately and without notice upon the occurrence and during the continuance of an event of default. Upon our request, Banc of California will provide us a payoff letter providing for, among other things, repayment of our obligations then outstanding, including the success fee, and for termination of Banc of California’s obligations to make additional credit extensions and termination of the liens under the Second Amended and Restated LSA.
As of December 31, 2024, we had $68.6 million of commitments available under the Second Amended and Restated LSA, after consideration of $1.4 million in our letter of credit on the lease of our corporate headquarters at One World Trade Center. As of December 31, 2024, we had no outstanding borrowings under the line of credit, and no amounts have been drawn against our letter of credit.
Interest expense related to the line of credit was immaterial for each of the years ended December 31, 2024, 2023, and 2022. Deferred financing costs related to the Second Amended and Restated LSA were capitalized and are included within other current and non-current assets as of December 31, 2024.
v3.25.0.1
Leases
12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases Leases
Our operating lease portfolio consists of three non-cancelable operating leases of office space and the remaining lease term expiration dates span from January 2025 to May 2030.
In 2024 we abandoned our office lease located at 99 Hudson St, New York, New York before the expiration of the lease term in March 2025 and relocated our corporate headquarters (“Headquarters Lease”) back to One World Trade Center. We recorded an impairment of operating lease right-of-use assets totaling $0.6 million during the year ended December 31, 2024 in connection with the abandonment of the former office space. This amount was recorded in general and administrative expenses within the consolidated statement of operations. Currently, there are no operating leases where we believe it is reasonably certain that we will exercise any option to extend the initial term.
The elements of lease expense were as follows (in thousands):
Year Ended
December 31,
202420232022
Operating lease costs$3,091 $3,815 $3,459 
Other lease income(1,963)(2,513)(549)
Total lease costs$1,128 $1,302 $2,910 
Other information related to operating leases were as follows (in thousands, except for years and percentages):
Year Ended
December 31,
202420232022
Cash paid for amounts included in the initial measurement of lease liabilities
$3,710$3,940$3,606
Year Ended
December 31,
20242023
Weighted average remaining lease term (years)5.346.08
Weighted average discount rate5.53 %5.59 %
As of December 31, 2024, the total remaining operating lease payments included in the measurement of lease liabilities were as follows (in thousands):
2025$3,106 
20262,960 
20272,960 
20282,960 
20292,960 
Thereafter1,234 
Total future minimum lease payments16,180 
Less: imputed interest(2,196)
Total$13,984 
In 2023, we abandoned our office lease located at 26 Broadway, New York, New York, resulting in a reduction of $0.3 million to operating lease right-of-use assets and operating lease liabilities, respectively and entered into an agreement with our landlord that provided for an early termination of the lease.
We received restricted cash during 2023 on behalf of the subtenant of our headquarters lease in advance of certain rental obligations that were due from the subtenant. The remaining balance we received on behalf of the subtenant of $2.0 million was included in cash and cash equivalents, with an equal and offsetting liability in accrued expenses and other current liabilities in the consolidated balance sheets as of December 31, 2023. During February 2024, the subtenant surrendered the premises back to us and in connection with this, we recorded a lease termination benefit of $1.4 million within general and administrative expenses.
In August 2022, we entered into a sublease agreement for the headquarters lease. We evaluated the associated assets for impairment, which included the right-of-use asset and furniture and fixtures for the office space. We compared the expected future undiscounted cash flows attributable to the associated assets to the carrying value and determined that they were impaired. Based on this evaluation, we determined that a portion of the right-of-use asset was no longer recoverable and recorded a right-of-use asset impairment charge of $2.2 million for the year ended December 31, 2022. We also determined that furniture and fixtures related to the space were no longer recoverable, and recorded an asset impairment charge for the carrying value of the assets of $0.1 million year ended December 31, 2022. We also recorded broker commission fees of $0.9 million in connection with entering into the sublease. These impairment charges and commission expenses were recorded in general and administrative expenses in the consolidated statement of operations.
v3.25.0.1
Stockholders' Equity
12 Months Ended
Dec. 31, 2024
Equity [Abstract]  
Stockholders' Equity Stockholders’ Equity
Class A common stock and Class B common stock reserved for future issuance consisted of the following:
As of December 31,
20242023
Shares available for grant under employee stock purchase plan6,203,493 5,579,991 
Shares available for grant under equity incentive plan
29,543,305 25,029,007 
Restricted stock units issued and outstanding under equity incentive plan
8,868,310 9,545,036 
Performance-based restricted stock units issued and outstanding under equity incentive plan
2,079,376 395,545 
Options issued and outstanding under equity incentive plan
18,327,238 21,797,792 
Total common stock reserved for future issuance65,021,722 62,347,371 
Repurchases of Common Stock
On September 7, 2022, our Board of Directors authorized a program to repurchase up to $100 million of our Class A common stock (the “2022 Stock Buyback Program”). We completed the 2022 Stock Buyback Program in the second quarter of 2024.
On April 30, 2024, the Board of Directors authorized a program to repurchase up to $100 million of our Class A common stock (the “2024 Buyback Program”). Under the 2024 Buyback Program, we may repurchase shares of our Class A common stock from time to time on a discretionary basis through open market repurchases, privately negotiated transactions, block purchases, or other means, and such repurchases will be structured to occur in compliance with applicable securities laws. The timing and actual number of shares repurchased, if any, will be determined by the Board of Directors or a committee established by the Board of Directors, depending on a variety of factors, including the Class A common stock price, trading volume, market conditions, our cash flow and liquidity profile, the capital needs of the business, and other considerations. We expect to fund repurchases with existing cash on hand. The 2024 Buyback Program has no expiration date and may be modified, suspended, or terminated at any time by the Board of Directors at its discretion. We have not made any repurchases under the 2024 Buyback Program as of the year ended December 31, 2024.
In addition, open market repurchases of common stock could be made pursuant to our trading plans established pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which would permit us to repurchase common stock at a time that we might otherwise be precluded from doing so under insider trading laws or self-imposed trading restrictions.
The following table summarizes the share repurchase activity of our Class A common stock under the 2022 Stock Buyback Program noted above for the periods presented:
Total Number of Shares Purchased
Average Price Paid per Share (1)
Repurchases of common stock for the year ended:
December 31, 20222,687,592 7.44 
December 31, 20238,849,632 6.54 
December 31, 20244,173,999 5.29 
Total
15,711,223 6.36 
(1) Average price paid per share excludes broker commission fees.
Charitable Contributions
We donated 172,918 shares of our Class A common stock to the Olo for Good Fund at Tides Foundation and recognized $0.8 million as a non-cash general and administrative expense in our consolidated statement of operations for the year ended December 31, 2024.
We donated 172,918 shares of our Class A common stock to the Olo for Good Fund at Tides Foundation and recognized $1.1 million for the year ended December 31, 2023.
Through December 31, 2024, we have donated a total of 864,590 shares of our Class A common stock. We expect to donate 1/10th of the total remaining approved shares into the fund annually.
v3.25.0.1
Stock-Based Compensation
12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Equity Incentive Plans
On March 5, 2021, our Board of Directors adopted our 2021 Equity Incentive Plan (“2021 Plan”). Prior to that date, we had established our 2015 Equity Incentive Plan (“2015 Plan”) and 2005 Equity Incentive Plan (“2005 Plan” and collectively with the 2021 Plan and 2015 Plan, the “Plans”). The 2021 Plan serves as the successor to the 2015 Plan and 2005 Plan and provides for the issuance of incentive and nonqualified stock options, stock appreciation rights (“SARs”), restricted stock, RSUs, PSUs, and other awards, to employees, directors, consultants, and advisors. Pursuant to the evergreen provisions of the 2021 Plan, the Board of Directors approved an automatic increase of 8,168,075 additional shares of Class A common stock reserved and available for issuance under the 2021 Plan effective as of January 1, 2024.
Stock options under the Plans were granted with contractual terms of up to ten years (or five years if granted to a greater than 10.0% stockholder) and at prices no less than 100.0% of the fair value of the shares on the date of grant; provided, however, that (i) the exercise price of an incentive stock option (“ISO”) and nonqualified stock option (“NSO”) granted to a greater than 10.0% stockholder were not less than 110.0% of the fair value of the shares on the date of grant. Awards granted under the Plans generally vested over four years.
On March 13, 2021, our Board of Directors adopted a non-employee director compensation policy that became effective upon our IPO. The policy provides for annual cash retainers for non-employee directors and an additional cash retainer for those non-employee directors that serve as chairpersons or members of our audit, compensation, nominating and corporate governance, and other committees. Additionally, directors will have the option to receive their annual retainer amounts in cash or equity. Each new non-employee director appointed to the Board of Directors after the IPO date will be granted an initial RSU award with a value of $0.4 million subject to vesting over a three-year period.
As of December 31, 2024 and 2023, the maximum number of shares authorized for issuance to participants under the Plans was 49,484,228 and 40,556,635, respectively. As of December 31, 2024 and 2023, the number of shares available for issuance to participants under the Plans was 29,543,305 and 25,029,007, respectively.
Restricted Stock Units
The following table summarizes the activity for the unvested RSUs during the year ended December 31, 2024:
SharesWeighted-
Average
Grant Date Fair Value
Unvested at December 31, 20239,545,036 $8.70 
Granted4,913,298 5.19 
Vested(3,547,224)8.75 
Forfeited and canceled(2,042,800)8.21 
Unvested at December 31, 20248,868,310 6.85 
The total fair value of RSUs vested during year ended December 31, 2024 was $19.8 million. Future stock-based compensation for unvested RSUs awarded as of December 31, 2024 was approximately $56.9 million and is expected to be recognized over a weighted-average period of 2.46 years.
Performance-Based Restricted Stock Units
In February 2023, we made grants to executives for the 2023 PSUs that will vest over three years based on the achievement of specified financial targets at the end of a one-year performance period, subject to the executive’s continuous service. The target number of shares underlying the 2023 PSUs was determined based on the higher of (a) the 30-trading day average price preceding the grant date or (b) the floor price as determined by the Compensation Committee of the Board of Directors for the calendar year. Based on the actual financial metrics achieved relative to the target financial metrics for the year ended December 31, 2023, the number of PSUs issued were 103.86% of the target PSUs. Accordingly, 193,366 shares vested for the year ended December 31, 2024 upon meeting the time-based vesting requirement. The remaining eligible shares will vest according to the time-based service requirements, subject to the applicable executive’s continued service as of each vesting date. The fair value of the 2023 PSUs is calculated based on the stock price on the date of grant.
In March 2024, we made additional PSU grants to executives for the market-based Absolute TSR PSUs and Relative TSR PSUs that will vest over approximately three years based upon achievement (a) certain stock price targets and (b) our target TSR, respectively. The Relative TSR PSUs will vest relative to the TSR of companies in the Russell 2000 Index over the specified performance period. In each case, vesting will be subject to the executive’s continuous service through the last day of the applicable performance period. Depending on achievement of the market-based metrics, the number of PSUs issued could range from 0% to 200% of the target PSUs. The fair value of the 2024 PSUs is determined using a Monte Carlo simulation model on the date of the grant.
The following table summarizes the activity for the unvested PSUs during the year ended December 31, 2024:
SharesWeighted-
Average
Grant Date Fair Value
Unvested at December 31, 2023395,545 $7.77 
Granted2,089,588 6.89 
Vested(193,366)7.77 
Forfeited and canceled(212,391)7.43 
Unvested at December 31, 20242,079,376 6.08 
The total fair value of PSUs vested during the year ended December 31, 2024 was $1.1 million. Future stock-based compensation expense for unvested PSUs awarded as of December 31, 2024 was approximately $9.4 million and is expected to be recognized over a weighted-average period of 1.99 years.
Stock Options
The following summarizes our stock option activity for the periods indicated (in thousands, except share and per share amounts):
Number of
options
outstanding
Weighted-
average
exercise
price
Weighted-
average
remaining
contractual
term
(In years)
Aggregate
intrinsic
value
As of December 31, 202321,797,792 $4.35 3.69$59,055 
Granted— — 
Exercised(2,380,648)2.56 
Forfeited and canceled(1,089,906)12.63 
Vested and expected to vest as of December 31, 202418,327,238 $4.08 2.82$79,622 
Exercisable as of December 31, 202418,129,552 $3.97 2.75$79,622 
The following table summarizes the weighted-average grant date fair value of options granted, intrinsic value of options exercised, and fair value of options vested for the years ended December 31, 2024, 2023, and 2022 (in thousands, except per share amounts):
Year Ended
December 31,
202420232022
Weighted-average grant date fair value of options grantedN/AN/A$4.87 
Intrinsic value of options exercised$8,403 $30,060 $66,326 
Total fair value of options vested$11,114 $18,368 $26,668 
Future stock-based compensation for unvested employee options granted and outstanding as of December 31, 2024 was $0.7 million and is expected to be recognized over a weighted-average period of 0.90 years.
Valuation Assumptions
We estimated the fair value of stock options granted using the Black-Scholes option pricing model with the following weighted-average assumptions:
Year Ended
December 31,
2022
Expected term (in years)
5.24 - 6.00
Volatility
32% - 36%
Risk-free interest rate
1.62% - 2.87%
Dividend yield0%
Fair value of underlying common stock
$11.07 - $15.75
We elected to use the midpoint practical expedient to calculate the expected term.
2021 Employee Stock Purchase Plan
On March 5, 2021, our Board of Directors and stockholders adopted our employee stock purchase plan (“ESPP”). The ESPP became effective immediately prior to the IPO. The employee stock purchase plan (“ESPP”) was authorized by the Board of Directors for the issuance of 3,900,000 shares of our Class A common stock pursuant to purchase rights granted to our employees or to employees of any of our designated affiliates. The number of shares of our Class A common stock reserved for issuance automatically increase on January 1 of each calendar year through January 1, 2031, by the lesser of (1) 1.0% of the total number of shares of our Class A common stock outstanding on December 31 of the preceding calendar year, or (2) 11,700,000 Class A common stock; provided, that prior to the date of any such increase, our Board of Directors may determine that such increase will be less than the amount set forth in clauses (1) and (2). Employees may contribute, normally through payroll deductions, up to 15% of their earnings for the purchase of our Class A common stock under the ESPP. Our Class A common stock will be purchased for the accounts of employees participating in the ESPP at a price per Class A common share equal to the lower of (a) 85% of the fair market value of our Class A common stock on the first trading date of an offering or (b) 85% of the fair market value of our Class A common stock on the date of purchase. The current offering period began in December 2024 and ends in June 2025. Pursuant to the evergreen provisions of the ESPP, the Board of Directors approved an automatic increase of 1,084,696 additional shares of Class A common stock reserved and available for issuance under the ESPP effective as of January 1, 2023. As of December 31, 2024, a total of 6,203,493 shares were available for issuance to employees under the ESPP. For the years ended December 31, 2024, 2023, and 2022, we recorded approximately $0.7 million, $1.2 million, and $1.5 million of compensation expense associated with our ESPP, respectively.
Stock-Based Compensation Expense
The classification of stock-based compensation expense, which includes expense for stock options, RSUs, PSUs, SARs, and ESPP charges, by line item within the consolidated statements of operations is as follows (in thousands):
Year Ended
December 31,
202420232022
Cost of revenue - platform$5,240 $6,838 $5,457 
Cost of revenue - professional services and other356 672 630 
Research and development11,432 15,055 14,053 
General and administrative19,962 20,813 20,339 
Sales and marketing6,411 7,756 5,545 
Restructuring charges
— 1,728 — 
Total stock-based compensation expense$43,401 $52,862 $46,024 
v3.25.0.1
Income Taxes
12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The provision for income taxes consists of the following for the years ended December 31, 2024, 2023, and 2022 (in thousands):
Year Ended December 31,
202420232022
Current income tax provision:
Federal$155 $— $— 
State803 229 238 
Total current income tax provision958 229 238 
Deferred income tax provision:
Federal— — (1,151)
State— — (368)
Total deferred income tax benefit— — (1,519)
Total income tax (benefit) provision$958 $229 $(1,282)
A reconciliation of the U.S. statutory income tax rate to our effective tax rate is as follows:
Year Ended December 31,
202420232022
Federal statutory rate21.00 %21.00 %21.00 %
State and local taxes, net of federal benefit1,033.73 0.25 2.23 
Acquisition-related deferred tax liability— — 3.22 
Valuation allowance(4,647.99)(24.04)(17.66)
Stock-based compensation2,442.63 7.82 6.34 
Executive compensation2,551.99 (5.61)(7.24)
Other168.21 0.19 (5.18)
Total provision and effective tax rate1,569.57 %(0.39)%2.71 %
The difference between income taxes at the U.S. federal statutory income tax rate of 21% and the amounts reported for the year ended December 31, 2024 primarily relates to the full valuation allowance on our deferred tax assets and adjustments for stock-based compensation.
Income Taxes
The components of our net deferred tax assets and liabilities are as follows (in thousands):
Year Ended December 31,
20242023
Deferred tax assets:
Accrued expenses$1,591 $1,526 
Operating lease liabilities3,532 4,269 
Stock-based compensation17,307 15,315 
Net operating losses64,785 72,505 
Tax credits1,026 1,517 
Capitalized internal-use software4,726 2,554 
Charitable stock donation4,125 4,003 
Other1,159 707 
Total deferred tax assets98,251 102,396 
Less valuation allowance(88,810)(91,630)
Net deferred tax assets9,441 10,766 
Unearned revenue(339)(147)
Operating lease right-of-use assets(2,452)(3,178)
Intangible assets(3,434)(4,438)
Deferred contract costs(2,843)(2,676)
Property and equipment(373)(327)
Net deferred tax liabilities(9,441)(10,766)
Total net deferred tax assets (liabilities)$— $— 
Assessing the realizability of deferred tax assets requires the determination of whether it is more-likely-than-not that some portion or all the deferred tax assets will not be realized. In assessing the need for a valuation allowance, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, loss carry-back and tax-planning strategies. Generally, more weight is given to objectively verifiable evidence, such as the cumulative loss in recent years, as a significant piece of negative evidence to overcome. Accordingly, a full valuation allowance has been established as of December 31, 2024 and 2023, and no deferred tax assets and related tax benefits have been recognized in the accompanying consolidated financial statements. The valuation allowance decreased $2.8 million during the year ended December 31, 2024 and increased $16.7 million during the year ended December 31, 2023 from the valuation allowances that were recorded as of December 31, 2023 and 2022, respectively. We maintain a full valuation allowance on our net federal and state deferred tax assets for both years ended December 31, 2024 and 2023, as we have concluded that it is more likely than not that the deferred tax assets will not be realized.
As of December 31, 2024 and 2023, we had approximately $254.0 million and $287.3 million of federal net operating losses, respectively. Approximately all of the federal net operating losses will have an indefinite life.
As of December 31, 2024 and 2023, we had approximately $198.3 million and $211.4 million of state net operating losses, respectively. Of the state net operating losses, some may follow the Tax Cut and Jobs Act and are indefinite-lived and most are definite-lived with various expiration dates beginning in 2025 through 2043. The federal research and development tax credits are approximately $1.0 million and $1.5 million as of December 31, 2024 and 2023, respectively. The federal research credits will begin to expire in 2039.
Utilization of the net operating loss carryforwards and credits may be subject to a substantial annual limitation due to ownership changes that may have occurred previously or that could occur in the future, as provided by Section 382 of the Internal Revenue Code of 1986, as well as similar state provisions. Such annual limitation could result in the expiration of net operating losses and credits before their utilization.
We file U.S. federal and state income tax returns with varying statutes of limitations. All tax years since inception remain open to examination due to the carryover of unused net operating losses and tax credits.
We recognize interest and penalties accrued related to unrecognized tax benefits as a component of tax expense. We had not accrued any interest or penalties related to unrecognized tax benefits as of December 31, 2024, 2023, and 2022. The unrecognized tax benefits at December 31, 2024 and 2023 are not material.
v3.25.0.1
Commitments and Contingencies
12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Legal Proceedings
Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. If we determine that a loss is reasonably possible, and the loss or range of loss can be estimated, we will disclose the possible loss in the notes to our financial statements. Accounting for contingencies requires us to use judgment related to both the likelihood of a loss and the estimate of the amount or range of loss. Legal costs incurred in connection with loss contingencies are expensed as incurred.
On September 26, 2022, a class action lawsuit was filed in the United States District Court for the Southern District of New York asserting claims under the federal securities laws against us and certain of our executive officers (the “Securities Class Action”). On December 21, 2022, the Court appointed a lead plaintiff and lead counsel on behalf of the class, following which the case was captioned Steamship Trade Association of Baltimore - International Longshoremen’s Association Pension Fund v. Olo Inc., et al. (Case No.1:22-cv-08228-JSR). On August 9, 2023, lead plaintiff filed a second amended complaint asserting claims on behalf of a class composed of all persons who purchased or otherwise acquired our securities between March 17, 2021 and August 11, 2022, inclusive (the “Second Amended Complaint”). The Second Amended Complaint asserts a claim against all defendants for alleged violations of Section 10(b) of the Exchange Act and Rule 10b5 promulgated thereunder and a claim under Section 20(a) of the Exchange Act against Mr. Glass, our Chief Executive Officer, and Mr. Benevides, our Chief Financial Officer, as alleged controlling persons. The Second Amended Complaint alleges that defendants made materially false and misleading statements concerning, among other things, our business relationship with the restaurant brand Subway, our financial position, our enterprise market customers, and our publicly disclosed “active locations” counts, and that these alleged false and misleading statements caused losses and damages for members of the class. The Second Amended Complaint seeks unspecified damages, interest, costs and attorneys’ fees, and other unspecified relief that the Court deems appropriate. On August 24, 2023, we filed a motion to dismiss the Second Amended Complaint. On September 26, 2023, the Court issued a summary order granting in part and denying in part our motion to dismiss, dismissing the claims in the Second Amended Complaint to the extent they are premised on misstatements about Subway, our financial prospects, and our prospects in the enterprise market, but permitting the remaining claims concerning our publicly disclosed “active locations” counts to proceed. On December 1, 2023, the Court issued an opinion confirming its September 26, 2023, order granting in part and denying in part our motion to dismiss. Also on December 1, 2023, the Court entered an order certifying a class of stockholders that purchased Olo’s Class A common stock between March 17, 2021 and August 11, 2022. On January 16, 2024, the parties reached an agreement to settle the lawsuit, and lead plaintiff filed an unopposed motion for preliminary approval of the proposed class action settlement. The Court granted final approval of the settlement on June 11, 2024. In connection with the agreement, we recorded an expense of $9.0 million during the year ended December 31, 2023 for the anticipated settlement, which was recorded in general and administrative expenses in the consolidated statement of operations. We maintain insurance coverage for a portion of the settlement and legal and consulting fees, but we do not record anticipated insurance proceeds until all contingencies relating to the insurance recovery have been removed, including an acknowledgment by the insurance company and our determination that recovery of the expected amount is probable. During the year ended December 31, 2024, we recorded $12.1 million in recoveries under this insurance coverage, which was recorded within general and administrative expenses.
On May 4, 2023, Cashondra Floyd, an alleged Olo stockholder, derivatively and on behalf of us as a nominal defendant, filed a complaint in the U.S. District Court for the Southern District of New York captioned Floyd v. Glass, et al. (Case No. 1:23-cv-03770) against certain of our directors and officers based on substantially similar allegations as in the Securities Class Action. On May 25, 2023, the plaintiff voluntary dismissed her complaint and refiled in the Court of the Chancery of the State of Delaware (C.A. No. 2023-0560-KSJM) (the “Floyd Derivative Complaint”).
On November 16, 2023, Alexander A. Balleh and Neil Ahearne, alleged Olo stockholders, derivatively and on behalf of us as a nominal defendant, filed a complaint in the Court of the Chancery of the State of Delaware captioned Balleh v.
Glass, et al. (C.A. No. 2023-1165-KSJM) (the “Balleh Derivative Complaint”) against certain of our directors and officers also based on substantially similar allegations as in the Securities Class Action.
On January 11, 2024, J. Brandon Giuda and Katrina Giuda, alleged Olo stockholders, derivatively and on behalf of us as a nominal defendant, filed a complaint in the Court of the Chancery of the State of Delaware captioned Giuda v. Glass, et al. (C.A. No. 2024-0025-KSJM) (the “Giuda Derivative Complaint”) against certain of our directors and officers also based on substantially similar allegations as in the Securities Class Action.
On November 13, 2024, the Court consolidated the Floyd Derivative Complaint, the Balleh Derivative Complaint, and the Giuda Derivative Complaint into a single action (the “Consolidated Derivative Action”). On December 2, 2024, plaintiffs in the Consolidated Derivative Action designated an operative complaint (the “Consolidated Derivative Complaint”) against certain of our directors and officers (the “Derivative Defendants”). The Consolidated Derivative Complaint alleges that, beginning in approximately March 2021 through at least November 2023, the Derivative Defendants caused our alleged issuance of materially false and misleading statements concerning our business relationship with the restaurant brand Subway and our publicly disclosed “active locations” counts. The Consolidated Derivative Complaint asserts a single claim for breaches of fiduciary duty against the Derivative Defendants. The Consolidated Derivative Complaint seeks a judgment against the Derivative Defendants in favor of us for the amount of damages sustained by us as a result of the Derivative Defendants’ breaches of fiduciary duties; directing us to take all necessary actions to reform and improve our corporate governance and internal procedures to comply with applicable laws and to protect us and our shareholders from a repeat of the damaging events alleged in the Consolidated Derivative Complaint; awarding us restitution from the Derivative Defendants and ordering disgorgement of all profits, benefits and other compensation obtained by the Derivative Defendants; awarding plaintiffs the costs and disbursements of the action, including reasonable attorneys’ fees, accountants’ and experts’ fees, costs and expenses; and granting such other relief that the Court deems just and proper. On January 16, 2025, the Derivative Defendants filed a motion to dismiss the Consolidated Derivative Complaint. Plaintiffs are due to file an opposition to the motion to dismiss by March 3, 2025.
On May 15, 2024, Richard Scarantino (the “Scarantino Plaintiff”), an alleged Olo stockholder, filed a class action and derivative complaint on behalf of Olo stockholders and on behalf of us as a nominal defendant, in the Court of the Chancery of the State of Delaware captioned Scarantino v. Glass, et al. (C.A. No. 2024-0517-KSJM) (the “Scarantino Complaint”) against our Board of Directors (the “Scarantino Director Defendants”), our Chief Executive Officer (the “Scarantino Officer Defendant”), The Raine Group LLC, RPII Order LLC, and Raine Associates II LP (collectively, “The Raine Group” and together with Olo, the Scarantino Director Defendants, and the Scarantino Officer Defendant, the “Scarantino Defendants”). The Scarantino Complaint alleged that the Director Defendants and Officer Defendant breached their fiduciary duties by authorizing the 2024 Buyback Program, which could result in The Raine Group having majority voting control over Olo. The Scarantino Complaint asserted a direct and a derivative claim for breaches of fiduciary duty against the Scarantino Director Defendants and the Scarantino Officer Defendant. The Scarantino Complaint also asserted that The Raine Group aided and abetted the Scarantino Director Defendants’ and Scarantino Officer Defendant’s breaches of fiduciary duty. On June 11, 2024, our Board of Directors agreed, through unanimous written consent (the “Board Resolutions”) that, among other things, the 2024 Buyback Program shall be carried out in such a way that our repurchases pursuant thereto do not cause The Raine Group’s ownership of Olo’s outstanding voting stock to exceed 49.9% and to take appropriate measures to the best of their ability to ensure that repurchases pursuant to the 2024 Buyback Program do not cause The Raine Group’s ownership of our outstanding voting stock to exceed 49.9%. The Scarantino Plaintiff subsequently agreed that the Board Resolutions would render the Scarantino Complaint moot. On June 12, 2024, the Scarantino Defendants moved to dismiss the Scarantino Complaint. On June 21, 2024, the parties filed a stipulation and proposed order dismissing the Scarantino Complaint with prejudice, which the Court granted on June 24, 2024. The Court retained jurisdiction of the lawsuit solely for the purpose of adjudicating an application for attorneys’ fees in connection with the claims asserted in the Scarantino Complaint. On August 2, 2024, the Court entered a Stipulation and Order providing that the Scarantino Plaintiff’s action will be dismissed with prejudice and the case will be closed, subject to the Company filing an affidavit with the Court confirming that a notice of settlement has been issued. The Company filed an affidavit with the Court on August 6, 2024. We recorded $0.6 million of litigation-related expenses related to this matter for the year ended December 31, 2024. This amount was recorded in general and administrative expenses within the consolidated statement of operations.
We have also received, and may in the future continue to receive, other claims from third parties asserting, among other things, infringement of their intellectual property rights. Future litigation may be necessary to defend ourselves or our customers by determining the scope, enforceability and validity of third-party proprietary rights or to establish our proprietary rights. Defending such proceedings is costly and can impose a significant burden on management and employees. The results of
any current or future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, and other factors.
Non-cancelable Purchase Commitments
We have $35.5 million of non-cancelable purchase commitments as of December 31, 2024, primarily related to cloud computing, SaaS, in which the commitments are due over the course of the next three years. These purchase commitments are not recorded as liabilities on the consolidated balance sheets as of December 31, 2024 as we have not yet received the related services. The amounts included in the following table were limited to the non-cancelable portion of the agreement terms or the minimum cancellation fees.
Our future payments under the non-cancelable purchase commitments as of December 31, 2024 were as follows (in thousands):
Year Ended December 31,Amount
2025$12,100 
202612,600 
202710,600 
Thereafter
230 
Total future minimum payments
$35,530 
v3.25.0.1
Business Segments
12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Business Segments Business Segments
The CODM uses net loss to assess financial performance and allocate resources. The measure of segment assets is reported on our consolidated balance sheets as total assets. The CODM uses net loss to make key operating decisions, such as the allocation of budget between cost of revenue, research and development, general and administrative and sales and marketing expenses. As of December 31, 2024 and 2023, we did not have assets located outside of the United States and international revenue recognized during the years ended December 31, 2024, 2023, and 2022 was not material.
The following table presents selected financial information with respect to the Company’s single operating segment for the years ended December 31, 2024, 2023 and 2022:
Year Ended
December 31,
202420232022
(in thousands)
Revenue$284,938 $228,289 $185,404 
Less:
Cost of revenue (1)
110,240 73,194 47,891 
Research and development (1)
56,053 58,266 59,078 
General and administrative (1)
40,508 39,846 41,991 
Sales and marketing (1)
45,194 38,723 26,685 
Restructuring charges2,396 6,848 — 
Stock-based compensation expense and related payroll tax expense 44,337 52,666 46,865 
        Capitalized internal-use software and intangible amortization14,018 9,878 5,446 
Certain litigation-related expenses, net of recoveries(11,431)21,590 — 
Interest income(19,280)(17,237)(4,592)
Other segment items (2)
3,800 2,802 8,008 
Net loss$(897)$(58,287)$(45,968)
(1) Amount excludes the following as applicable: Stock-based compensation expense and related payroll tax expense; Capitalized internal-use software and intangible amortization; certain litigation-related expenses, net of recoveries; and other non-significant segment expenses, net.
(2) Includes depreciation from property and equipment of $0.4 million, $0.4 million, and $0.6 million, respectively, for the years ended December 31, 2024, 2023, and 2022, respectively. Other segment items also include items such as non-cash impairments, disposals on assets, charitable donation of class A common stock, certain severance costs, acquisition-related transaction costs, interest expense, other income (expense), net, and provision (benefit) for income taxes.
v3.25.0.1
Net Loss per Share Attributable to Common Stockholders
12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Net Loss per Share Attributable to Common Stockholders Net Loss per Share Attributable to Common Stockholders
A reconciliation of net loss available to common stockholders and the number of shares in the calculation of basic loss per share is as follows (in thousands):
Year Ended December 31,
202420232022
Numerator:
Net loss attributable to Class A and Class B common stockholders—basic and diluted$(897)$(58,287)$(45,968)
Denominator:
Weighted-average Class A and Class B common shares outstanding—basic and diluted162,608,353 162,993,686 161,303,397 
Net loss per share attributable to Class A and Class B common stockholders—basic and diluted$(0.01)$(0.36)$(0.28)
The following securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented, because including them would have been anti-dilutive (on an as-converted basis):
Year Ended December 31,
202420232022
Outstanding stock options18,327,238 21,797,792 29,859,096 
Outstanding RSUs and PSUs
10,947,686 9,940,581 4,559,917 
Outstanding shares estimated to be purchased under ESPP177,252 263,601 284,705 
Total29,452,176 32,001,974 34,703,718 
v3.25.0.1
Restructuring Charges
12 Months Ended
Dec. 31, 2024
Restructuring and Related Activities [Abstract]  
Restructuring Charges Restructuring Charges
On September 20, 2024, we announced a reduction of workforce by approximately 9% to reorganize our business to better focus our investments on customer needs and to support our long-term growth objectives (the “2024 Restructuring Plan”).
We incurred charges of $2.4 million in connection with the 2024 Restructuring Plan for the year ended December 31, 2024, consisting of the following: $2.0 million related to severance expense and payroll taxes, and $0.4 million related to other employee benefits. These expenses were recorded within the restructuring charges line item of the consolidated statement of operations.
The following table summarizes the restructuring liabilities, which are recorded within accrued expenses and other current liabilities on the consolidated balance sheets, as of December 31, 2024 (in thousands):
Balance at January 1, 2024$— 
Charges2,396 
Payments(2,396)
Balance at December 31, 2024$— 
The actions associated with the 2024 Restructuring Plan were fully completed during the year ended December 31, 2024 and we do not expect to incur any material additional charges under this plan.
On June 14, 2023, we announced a workforce reduction impacting approximately 11% of our workforce as part of our efforts to reorganize our business units to better focus our investments on customer needs and to support our long-term growth objectives (the “2023 Restructuring Plan”).
We incurred charges of $6.8 million in connection with the 2023 Restructuring Plan for the year ended December 31, 2023, consisting of the following: $4.5 million related to severance expense and payroll taxes, $1.7 million related to stock-based compensation expense due to the acceleration of equity awards, and $0.6 million related to other employee benefits. These expenses were recorded within the restructuring charges line item of the consolidated statement of operations.
The following table summarizes the restructuring liabilities, which are recorded within accrued expenses and other current liabilities on the consolidated balance sheets, as of December 31, 2023 (in thousands):
Balance at January 1, 2023$— 
Charges6,848 
Payments(6,848)
Balance at December 31, 2023$— 
The actions associated with the 2023 Restructuring Plan were fully completed during the year ended December 31, 2023 and we do not expect to incur any material additional charges under this plan.
v3.25.0.1
Related Party Transactions
12 Months Ended
Dec. 31, 2024
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
Two of our board members have ownership interests in companies to which we provide services, including our chief executive officer who serves on the board of directors of one of these companies and receives an annual cash retainer for service on such board. During the years ended December 31, 2024, 2023, and 2022, we generated approximately $2.2 million, $1.5 million, and $1.0 million of revenue, respectively, from these customers. As of December 31, 2024 and 2023, the outstanding accounts receivable from the related parties was $0.8 million and $0.6 million, respectively.
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Pay vs Performance Disclosure      
Net loss $ (897) $ (58,287) $ (45,968)
v3.25.0.1
Insider Trading Arrangements
3 Months Ended
Dec. 31, 2024
shares
Trading Arrangements, by Individual  
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Zuhairah Washington [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
On November 12, 2024, Zuhairah Washington, a member of our Board of Directors, entered into a trading plan pursuant to Rule 10b5-1 of the Exchange Act that provides for the sale of an aggregate of up to 11,000 shares of our Class A common stock pursuant to the terms of the plan. The plan will terminate on December 31, 2025, subject to early termination for certain specified events set forth in the plan. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c).
Name Zuhairah Washington
Title member of our Board of Directors
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 12, 2024
Expiration Date December 31, 2025
Arrangement Duration 414 days
Aggregate Available 11,000
v3.25.0.1
Insider Trading Policies and Procedures
12 Months Ended
Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
Cybersecurity risk management is a significant part of our overall risk management process. Our cybersecurity risk management program is informed by security frameworks and standards, such as PCI DSS, ISO 27001, and CIS Controls. We have designed and implemented various information security processes that are intended to protect the confidentiality, integrity, security, and availability of our critical systems and information and provide a cross-functional framework for identifying, preventing, and mitigating cybersecurity threats and incidents, including threats and incidents associated with the use of applications developed and services provided by third-party service providers.

Our cybersecurity risk management program includes:

an internal security team, led by our Chief Information Security Officer, or CISO, which is responsible for, among other matters, monitoring our platform through penetration testing and vulnerability scanning, managing our cybersecurity risk assessment processes, and implementing our security controls;

an annual risk assessment performed by our internal security team designed to identify material cybersecurity risks to our critical systems, information, products, services, and our broader enterprise IT environment;

a cybersecurity incident response plan, or IRP, that establishes an organizational framework and guidelines to assist us in identifying, responding to, and recovering from cybersecurity incidents;

the use of external service providers, where appropriate, to assess, test, or otherwise assist with other services, such as performing third-party penetration testing, assisting with incident response, and facilitating adversary simulations;
annual cybersecurity awareness training for our employees and additional training for engineers, technical team members, members of the cybersecurity incident response team, or CSIRT, and our Board of Directors;

a third-party risk management process for service providers and vendors, which includes review by the internal security team at onboarding and, for certain significant vendors, an annual security review; and

an insurance policy to help mitigate, in certain circumstances, potential liabilities resulting from cybersecurity incidents and other cyber issues.
To date, risks from cybersecurity threats have not materially affected, and we do not believe they are reasonably likely to materially affect, us, our business strategy, results of operations or financial condition. However, despite our efforts, we cannot eliminate all risks from cybersecurity threats or incidents. For more information about cybersecurity-related risks, please refer to the section entitled “Risk Factors” in this Annual Report on Form 10-K.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] Our cybersecurity risk management program is informed by security frameworks and standards, such as PCI DSS, ISO 27001, and CIS Controls. We have designed and implemented various information security processes that are intended to protect the confidentiality, integrity, security, and availability of our critical systems and information and provide a cross-functional framework for identifying, preventing, and mitigating cybersecurity threats and incidents, including threats and incidents associated with the use of applications developed and services provided by third-party service providers.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Our Board of Directors exercises oversight over our risk management process directly, as well as through its various standing committees that address risks inherent in their respective areas of oversight. In particular, our Board of Directors delegates cybersecurity risk management oversight to the audit committee of the Board of Directors. The audit committee oversees our cybersecurity processes and policies on risk identification, management, and assessment. The audit committee also reviews the adequacy and effectiveness of such policies, as well as the steps taken by management to mitigate or otherwise control these cybersecurity exposures and to identify future risks. The audit committee receives periodic reports from our CISO and Chief Legal Officer, or CLO, on material cybersecurity risks, developments in cybersecurity, key cybersecurity initiatives, ongoing priorities and work of the governance, risk, and compliance committee, or the GRC Committee, updated risk assessments of our cybersecurity program, and mitigation strategies.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] In particular, our Board of Directors delegates cybersecurity risk management oversight to the audit committee of the Board of Directors. The audit committee oversees our cybersecurity processes and policies on risk identification, management, and assessment. The audit committee also reviews the adequacy and effectiveness of such policies, as well as the steps taken by management to mitigate or otherwise control these cybersecurity exposures and to identify future risks. The audit committee receives periodic reports from our CISO and Chief Legal Officer, or CLO, on material cybersecurity risks, developments in cybersecurity, key cybersecurity initiatives, ongoing priorities and work of the governance, risk, and compliance committee, or the GRC Committee, updated risk assessments of our cybersecurity program, and mitigation strategies.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] Olo’s IRP is also designed to escalate certain cybersecurity incidents to members of management, depending on the circumstances. Our internal security team, among others, works with our CSIRT to help assess, mitigate, and remediate cybersecurity incidents of which they are notified. Our CLO, as the CSIRT leader, directs and coordinates CSIRT’s activities, in consultation with the CISO and other members of management. In addition, the IRP includes processes for reporting to the audit committee and our Board of Directors certain cybersecurity incidents.
Cybersecurity Risk Role of Management [Text Block]
Our cybersecurity risk management processes are implemented, assessed, and managed by certain members of Olo management, including our CISO and CLO. Our CISO has 25 years of experience in information technology and risk management at various companies, such as Yum Brands, Inc. and Domino’s Pizza, Inc. He is also an ISC2 Certified Information Systems Security Professional. Our CLO has 16 years of experience and received a cybersecurity oversight certification from the National Cybersecurity Center. Both act as chairs of our GRC Committee. The GRC Committee provides direction, oversight, and management of our cybersecurity and privacy programs with a focus on business objectives, the protection of customer and employee data, safeguarding our systems, and complying with applicable laws, regulations, and contractual obligations. Cross-functional leaders within Olo, including members from our information technology, data science, finance, legal, and people & culture teams, are part of the committee. Our GRC Committee meets periodically to align cybersecurity and privacy strategy with business needs and risk appetite, monitor the execution of key cybersecurity initiatives, and serve as an escalation point for any related issues.
Olo’s IRP is also designed to escalate certain cybersecurity incidents to members of management, depending on the circumstances. Our internal security team, among others, works with our CSIRT to help assess, mitigate, and remediate cybersecurity incidents of which they are notified. Our CLO, as the CSIRT leader, directs and coordinates CSIRT’s activities, in consultation with the CISO and other members of management. In addition, the IRP includes processes for reporting to the audit committee and our Board of Directors certain cybersecurity incidents.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our cybersecurity risk management processes are implemented, assessed, and managed by certain members of Olo management, including our CISO and CLO.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our CISO has 25 years of experience in information technology and risk management at various companies, such as Yum Brands, Inc. and Domino’s Pizza, Inc. He is also an ISC2 Certified Information Systems Security Professional. Our CLO has 16 years of experience and received a cybersecurity oversight certification from the National Cybersecurity Center.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] Our internal security team, among others, works with our CSIRT to help assess, mitigate, and remediate cybersecurity incidents of which they are notified. Our CLO, as the CSIRT leader, directs and coordinates CSIRT’s activities, in consultation with the CISO and other members of management. In addition, the IRP includes processes for reporting to the audit committee and our Board of Directors certain cybersecurity incidents.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The accompanying consolidated financial statements and accompanying notes were prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and in accordance with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). The consolidated financial statements include the accounts of Olo Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Reclassifications
Reclassifications
Effective January 1, 2023, we began allocating certain employee-related costs to platform cost of revenues, professional services and other cost of revenues, sales and marketing, and research and development expenses. Previously, such costs had been presented within general and administrative expenses on our consolidated statement of operations. These costs are allocated based on each department’s proportionate share of total employee headcount. We determined that these changes would better reflect industry practice and provide more meaningful information as well as increased transparency of our operations.
The following employee-related cost reclassifications were made to conform to the current year presentation and had no effect on previously reported operating loss, net loss, or accumulated deficit for the year ended December 31, 2022:
For the year ended December 31, 2022, $2.7 million was reclassified from general and administrative expense as follows: $0.8 million into platform cost of revenue, $0.1 million into professional services and other cost of revenue, $0.4 million into sales and marketing expenses, and $1.3 million into research and development expenses.
Use of Estimates
Use of Estimates
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period.
We regularly assess these estimates, including but not limited to, stock-based compensation including the determination of the fair value of our equity awards, realization of deferred tax assets, estimated life of our long-lived assets, purchase price allocations for business combinations, valuation of the acquired intangibles purchased in a business combination, valuation of goodwill, and the adequacy of reserves associated with accounts receivable. We base these estimates
on historical experience and on various other market-specific and relevant assumptions that we believe to be reasonable under the circumstances. Actual results could differ from these estimates and such differences could be material to our financial position and results of operations.
Segment Information
Segment Information
An operating segment is defined as a component of an enterprise for which discrete financial information is evaluated regularly by the chief operating decision maker (“CODM”). We define the CODM as the Chief Executive Officer, as his role is to make decisions about allocating resources and assessing performance. Our business operates in one operating segment, which we have also determined to be one reporting unit for goodwill impairment testing, as all of our offerings operate on a single platform and are deployed in an identical way with our CODM evaluating our financial information, resources, and performance of these resources on a consolidated basis. Please refer to “Note 15—Business Segments” of our consolidated financial statements.
Concentrations of Business and Credit Risk
Concentrations of Business and Credit Risk
We are exposed to concentrations of credit risk primarily through our cash, cash equivalents, and short- and long-term investments held by financial institutions. We primarily deposit our cash, cash equivalents, and investments with financial institutions that management believes are of high credit quality and the amounts on deposit may exceed federally insured limits at various times. We have not experienced any significant losses in such accounts and believe we are not exposed to any significant risk. For the years ended December 31, 2024, 2023, and 2022, one customer accounted for 9%, 12%, and 12% of our revenue, respectively.
Concentrations of Business and Credit Risk
Concentrations of Business and Credit Risk
We are exposed to concentrations of credit risk primarily through our cash, cash equivalents, and short- and long-term investments held by financial institutions. We primarily deposit our cash, cash equivalents, and investments with financial institutions that management believes are of high credit quality and the amounts on deposit may exceed federally insured limits at various times. We have not experienced any significant losses in such accounts and believe we are not exposed to any significant risk. For the years ended December 31, 2024, 2023, and 2022, one customer accounted for 9%, 12%, and 12% of our revenue, respectively.
Cash and Cash Equivalents
Cash and Cash Equivalents
Cash and cash equivalents are stated at fair value. We consider all short-term, highly liquid investments, with an original maturity of three months or less, to be cash equivalents. In 2023, we received restricted cash on behalf of the subtenant of our corporate headquarters at One World Trade Center in advance of certain rental obligations that were due from the subtenant. The remaining balance we received on behalf of the subtenant of $2.0 million is included in cash and cash equivalents in the consolidated balance sheets as of December 31, 2023. See “Note 10—Leases” for more details.
Investments
Investments
Management determines the appropriate classification of investments at the time of purchase based upon management’s intent with regard to such investments. Our investments are classified as available-for-sale at the time of purchase, and we reevaluate such classification as of each balance sheet date. We consider all highly liquid investments with an original maturity of 90 days or less when purchased to be cash equivalents. Investments with remaining contractual maturities of one year or less from the balance sheet date, which are not considered cash equivalents, are classified as short-term investments, and those with remaining contractual maturities greater than one year from the balance sheet date are classified as long-term investments. All investments are recorded at their estimated fair value, and any unrealized gains and losses, net of taxes, are recorded in accumulated other comprehensive loss, which is reflected as a separate component of stockholders’ equity in the consolidated balance sheets. Realized gains and losses on sales and maturities of investments are determined based on the specific identification method and are recognized in the consolidated statements of operations.
We perform periodic evaluations to determine whether any declines in the fair value of investments below cost are other-than-temporary. The evaluation consists of qualitative and quantitative factors regarding the severity and duration of the unrealized loss, as well as our ability and intent to hold the investments until a forecasted recovery occurs. The impairments are considered to be other-than-temporary if they are related to deterioration in credit risk or if it is likely that the underlying securities will be sold prior to a full recovery of their cost basis. Other-than-temporary fair value impairments, if any, are determined based on the specific identification method and are reported in other (expense) income, net in the consolidated statements of operations.
Accounts Receivable, Net
Accounts Receivable, Net
Accounts receivable, net are stated at net realizable value and include unbilled receivables. Unbilled receivables arise primarily from transactional services provided in advance of billing. Accounts receivable are net of an allowance for credit
losses, are not collateralized, and do not bear interest. Payment terms vary by contract type but are generally due within 30 days. The accounts receivable balance at December 31, 2024 and 2023 included unbilled receivables of $1.0 million and $0.7 million, respectively.
We assess the collectability of outstanding accounts receivable on an ongoing basis and maintain an allowance for credit losses for accounts receivable deemed uncollectible. Upon adoption of Accounting Standards Update (“ASU”) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, we analyzed our accounts receivable portfolio for significant risks, historical activity, and an estimate of future collectability to determine the amount that will ultimately be collected. This estimate is analyzed for expected credit losses annually and updated periodically as necessary or upon certain triggering events, based on the financial condition of customers, which includes the delinquency level, historical write-off experience, customer type, and other assumptions such as the current economic environment.
Deferred Contract Costs
Deferred Contract Costs
We capitalize the incremental costs of obtaining a revenue contract, including sales commissions for new and renewal revenue contracts, certain related incentives, and associated payroll tax and fringe benefit costs. Capitalized amounts are recoverable through future revenue streams under customer contracts.
We allocate costs capitalized for contracts to the related performance obligations and amortize these costs on a straight-line basis over the expected period of benefit of those performance obligations. We determined that commissions paid on renewals are commensurate with commissions paid on initial contracts. Accordingly, we amortize commissions on initial contracts over the contract period which is generally three years. We also amortize commissions on renewal contracts over the renewal contract period, which are generally between one to three years. Amounts expected to be recognized within one year of the balance sheets date are recorded as current deferred contract costs. The remaining portion is recorded as non-current deferred contract costs in the accompanying consolidated balance sheets. Amortization of costs capitalized to obtain revenue contracts is included in sales and marketing expense in the accompanying consolidated statements of operations.
We periodically evaluate whether there have been any changes in our business, market conditions, or other events which would indicate that the amortization period should be changed, or if there are potential indicators of impairment. For the years ended December 31, 2024, 2023, and 2022, we have not identified any potential indicators of material impairment.
Property and Equipment, Net
Property and Equipment, Net
Property and equipment, net is recorded at cost, and presented net of accumulated depreciation. Cost and the related accumulated depreciation are deducted from the accounts upon retirement. Significant additions or improvements extending the useful life of an asset are capitalized, while repairs and maintenance costs are expensed as incurred. Leasehold improvements are amortized on a straight-line basis over the shorter of the term of the lease, or the useful life of the assets. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets.
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. If circumstances require a long-lived asset or asset group to be tested for possible impairment, we first compare undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. See “Note 5—Property and Equipment” for additional information on long-lived asset impairments.
Capitalized Internal-Use Software
Capitalized Internal-Use Software
We capitalize certain qualified costs incurred in connection with the development of internal-use software. We evaluate the costs incurred during the application development stage of internal use software to determine whether the costs meet the criteria for capitalization. Costs related to preliminary project activities and post implementation activities are expensed as incurred. See “Note 5—Property and Equipment” for additional information on our capitalized internal-use software.
Business Combinations
Business Combinations
We account for acquisitions using the acquisition method of accounting and determine whether a transaction constitutes a business and is treated as a business combination or if the transaction does not constitute a business and is treated as an asset acquisition. The acquisition method of accounting requires, among other things, allocation of the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed at their estimated fair values on the acquisition date. The results of businesses acquired in a business combination are included in our consolidated financial statements from the date of acquisition.
Determining the fair value of assets acquired and liabilities assumed requires management to use significant judgment and estimates, including estimates of future revenue and adjusted earnings before interest and taxes and discount rates. Our estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ materially from estimates. Our estimates associated with the accounting for business combinations may change as additional information becomes available regarding the assets acquired and liabilities assumed. Any change in facts and circumstances that existed as of the acquisition date and impacts our estimates is recorded to goodwill if identified within the measurement period. Subsequent to the measurement period or our final determination of fair value of assets and liabilities, whichever is earlier, the adjustments will affect our earnings.
Transaction related expenses incurred in a business combination are not included as a component of consideration transferred, but are accounted for as an expense in the period in which the costs are incurred.
Goodwill and Intangible Assets
Goodwill and Intangible Assets
Goodwill represents the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interest, if any, over the fair value of identifiable assets acquired and liabilities assumed in a business combination. We have no intangible assets, other than goodwill, with indefinite useful lives.
Intangible assets other than goodwill are comprised of acquired developed technology, customer relationships, and trademarks. At initial recognition, intangible assets acquired in a business combination or asset acquisition are recognized at their fair value as of the date of acquisition. Following initial recognition, intangible assets are carried at acquisition date fair value less accumulated amortization and impairment losses, if any, and are amortized on a straight-line basis over the estimated useful life of the asset. We assess the impairment of intangible assets whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
We review goodwill for impairment annually during the fourth quarter of each fiscal year or whenever events or changes in circumstances indicate that an impairment may exist. In conducting our annual impairment test, we review qualitative factors (including macroeconomic conditions, industry and market considerations, cost factors, and overall financial performance) to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. This step is referred to as the “Step Zero” assessment. If factors indicate that it is more likely than not (a likelihood of more than 50%) that the fair value of the reporting unit is less than its carrying amount, we proceed to a quantitative (“Step One”) assessment to determine the existence and amount of any goodwill impairment. In performing a Step One assessment, the fair value of the reporting unit is determined by using a discounted cash flow method where we analyze the expected present value of future cash flows. If the carrying value of the reporting unit continues to exceed its fair value, the fair value of the reporting unit’s goodwill is calculated and an impairment loss equal to the excess is recorded. We evaluated goodwill using a Step Zero analysis during the fourth quarter and determined that goodwill was not impaired. There were no impairment charges recognized related to goodwill or intangible assets during the years ended December 31, 2024, 2023, and 2022.
Leases
Leases
We determine if an arrangement is a lease or contains a lease at inception. Our lease agreements are generally for office facilities, and the determination of whether such agreements contain leases generally does not require significant estimates or judgments. Our leases may also contain non-lease components such as payments of maintenance, utilities, and taxes, which we have elected to account for separately, as these amounts are readily determinable. At the commencement date of a lease, we recognize a liability to make lease payments and an asset representing the right to use the underlying asset during the lease term. The lease liability is measured at the present value of the minimum rental payments discounted using our incremental borrowing rate (“IBR”) over the lease term (or, if readily determinable, the rate implicit in the lease). The IBR is the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment. We determine our IBR by obtaining interest rates from various external financing sources and made certain adjustments to reflect the terms of the lease and type of the asset leased. The right-of-use asset is measured at cost, which includes the initial measurement of the lease liability and initial direct costs incurred and excludes lease incentives. We subleased a portion of our office space and recognized rental income on a straight-line basis as an offset to other leases costs, net, which is allocated across cost of revenue and operating expenses accordingly.
The lease term used to measure right-of-use lease assets and lease liabilities may include renewal options which are deemed reasonably certain to be exercised. Operating lease costs are recognized on a straight-line basis over the lease term. Variable lease payments are expensed as incurred. Our leases do not contain any material residual value guarantees or material restrictive covenants.
Income Taxes
Income Taxes
Deferred income taxes are recorded for the expected tax consequences of temporary differences between the tax basis of assets and liabilities for financial reporting purposes and amounts recognized for income tax purposes. We periodically review the recoverability of deferred tax assets recorded on the balance sheet and provide valuation allowances as deemed necessary to reduce such deferred tax assets to the amount that will, more likely than not, be realized. We maintain a full valuation allowance on our net federal and state deferred tax assets.
Significant judgment is required in determining any valuation allowance recorded against deferred tax assets. In assessing the need for a valuation allowance, we consider all available evidence for each jurisdiction including past operating results, estimates of future taxable income and the feasibility of ongoing tax planning strategies. In the event we change our determination as to the amount of deferred tax assets that can be realized, we will adjust our valuation allowance with a corresponding impact to income tax expense in the period in which such determination is made.
The amount of deferred tax provided is calculated using tax rates enacted at the balance sheet date. The impact of tax law changes is recognized in periods when the change is enacted.
A two-step approach is applied in the recognition and measurement of uncertain tax positions taken or expected to be taken in a tax return. The first step is to determine if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained in an audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement.
Our policy is to recognize interest and penalty expenses associated with uncertain tax positions as a component of income tax expense. We are required to file tax returns in the U.S. federal jurisdiction and various states.
Revenue Recognition
Revenue Recognition
We derive our revenue primarily from platform fees to access our software platform and professional services. Revenue is recognized when control of these services transfers to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those services. Sales taxes collected from customers and remitted to various governmental authorities are excluded from the measurement of the transaction price and presented on a net basis in our consolidated statements of operations. Any balance collected and not paid is reflected as a liability on the balance sheets. The calculation of revenue is dependent upon the effective design and operation of the controls over system interfaces as well as controls over the accuracy and completeness of revenue. The process to extract information from systems and databases is manual.
Platform Revenue
Platform revenue primarily consists of fees that provide customers access to one or more of our modules and standard customer support. Our contracts typically have initial terms of three years or longer, with continuous one-to-two-year automatic renewal periods. A majority of our platform revenue is derived from contracts with our restaurant customers to provide our Order Platform solutions, which consist of any combination of our modules, including Ordering, Dispatch, Rails, or any of our other Order suite add-on modules. The modules may be bundled as a package, or sold on an a la carte basis. We also generate platform revenue from our Engage suite of tailored marketing solutions, which consist of our Guest Data Platform (“GDP”), Marketing, Sentiment, Sync, and Host modules. Additionally, we generate platform revenue from our Olo Pay module, which became commercially available during 2022.
Our Order Platform and Engage solutions comprise a stand-ready obligation to provide access to the platform that is satisfied over the contract term. We generally bill customers on a monthly basis, in arrears. Our contracts which provide bundled offerings of the Order Platform and Engage modules earn monthly fixed fees in consideration for stand-ready access to our platform for these offerings. By contrast, our contracts where modules are sold a la carte (“non-bundled”) earn monthly fixed fees for a specified quantity of orders processed on the platform, plus monthly overage fees. For contracts with variable rates, we estimate this variable consideration using the expected value method based upon our estimates of the number of orders expected to be processed under the contract. We allocate the variable consideration related to the monthly overages to the distinct month during which the related services were performed, as those fees relate specifically to providing modules such as Ordering and Rails and represent the consideration we are entitled to for providing access to the platform during that month. As a result, applicable fixed monthly fees and monthly overages are included in the transaction price and recognized as revenue in the period in which the fees are generated. In non-bundled contracts where the Dispatch module is also offered, we collect a transaction fee from the restaurant for each transaction processed, and revenue is recognized at the point that delivery of orders to the restaurants’ customers is facilitated. These fees per transaction are included in the transaction price and recognized as revenue in the period in which the fees are generated.
In addition to the offerings above to our restaurant customers, we also generate revenue from our arrangements with third-party channels. Specifically, we partner with delivery service partners (“DSPs”) to enable our restaurant customers to offer, manage, and expand delivery to their customers. The Dispatch module connects restaurants with DSPs to facilitate the delivery of orders to the restaurants’ customers. We typically collect a per transaction fee from the DSP. Revenue is recognized when we have arranged for a DSP to deliver the order to the end guest. In addition, our Rails module allows our customers to control and manage menu availability and pricing and location information while directly integrating orders from third-party channels. We typically receive a fee from the third-party channel for each transaction processed. No minimum monthly amounts or overage fees are charged to the third-party channel in these arrangements.
Our Olo Pay module provides a fully-integrated, frictionless payment platform, enabling restaurants to grow and protect their digital business through an improved customer payment experience, offering advanced fraud prevention designed to improve authorization rates for valid transactions, and increase basket conversion. We typically collect a per transaction fee from the restaurant for orders processed using our Olo Pay module. Revenue is recognized at the time of the transaction.
Professional Services and Other Revenue
Professional services and other revenue primarily consists of fees for platform implementation services. The implementation fees in our contracts are generally a fixed fee over the duration of the implementation services. Our customers benefit from our services as they are provided, and we use a cost-to-cost measure of progress to recognize revenue from our implementation services.
In certain contracts, we engage third parties to assist in providing professional services to our customers. We determined we are the principal in transferring these services to the customer and recognize revenue on a gross basis. We control the services being provided to our customer and are responsible for ensuring that the services are performed and are acceptable to our customer. That is, we are responsible for fulfillment of the promise in the contract with our customer, and we also have discretion in setting the price with our customer.
Contracts with Multiple Performance Obligations
Our contracts with customers may contain multiple performance obligations. We identify performance obligations in a contract with a customer based on the goods and services that will be transferred to the customer that are capable of being distinct and that are separately identifiable from other promises in the contract. If not considered distinct, the promised goods or services are combined with other goods or services and accounted for as a combined performance obligation. Identifying distinct performance obligations in a contract requires judgment. Our performance obligations primarily include access to our platform and its different modules and implementation services associated with the platform.
We have determined that the variable consideration allocation exception is generally applicable to our contracts, as the pricing for each service is generally commensurate with the value delivered to the customer for the provision of that service. If we determine for specific contracts that the allocation objective is not met, we analyze these contracts to determine whether a relative standalone selling price allocation should be performed.
All implementation services are generally distinct and accounted for as separate performance obligations. For contracts with multiple performance obligations, the transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. We determine standalone selling price based on the price at which the distinct good or service is sold separately. If the standalone selling price is not observable through past transactions, we estimate the standalone selling price taking into account available information such as market conditions, internally approved pricing, and cost-plus expected margin guidelines related to the performance obligations.
Contract Balances
The timing of revenue recognition may differ from the timing of invoicing to customers. We record a receivable when revenue is recognized upon invoicing and payment will become due solely due to the passage of time. We record a contract asset when revenue is recognized prior to invoicing or payment is contingent upon transfer of control of another separate performance obligation. We record unearned revenue when revenue is recognized subsequent to cash collection. Unearned revenue that will be recognized during the succeeding 12-month period is recorded as current, and the remaining unearned revenue is recorded as non-current. Contract assets that will be billed to the customer during the succeeding 12-month period are recorded as current and the remaining contract assets are recorded as non-current.
Payment terms and conditions vary by contract type, although terms generally include a requirement for payment to be made within 30 days. We elected the practical expedient to not assess whether a significant financing component exists if the period between when we transfer a promised good or service to a customer and when the customer pays for that good or service is one year or less.
Costs of Revenue
Cost of Revenue
Platform
Platform cost of revenue primarily consists of costs directly related to our platform services, including expenses for customer support and infrastructure personnel, including salaries, payroll taxes, benefits, bonuses, and stock-based compensation, which we refer to as personnel costs, third-party software licenses, hosting, amortization of capitalized internal-
use software and developed technology, payment processing, and allocated overhead costs associated with delivering these services.
Professional services and other
Professional services and other cost of revenue primarily consists of the personnel costs of our deployment team associated with delivering these services and allocated overhead.
Research and Development Costs
Research and Development Costs
Research and development expenses primarily consist of engineering and product development personnel costs and allocated overhead costs. Research and development costs exclude capitalized internal-use software development costs, as they are capitalized as a component of property and equipment, net and amortized to platform cost of revenue over the term of their estimated useful life.
Sales and Marketing
Sales and Marketing
Sales and marketing expenses primarily consist of sales and marketing costs, personnel costs for our sales and marketing teams, sales commissions, amortization of customer relationships acquired through business combinations, promotional activities, and allocated overhead costs. Sales commissions earned by our sales force are deferred and amortized on a straight-line basis over the expected benefit period.
We expense all advertising costs when incurred. We incurred advertising expenses of approximately $1.0 million, $1.5 million, and $0.9 million during the years ended December 31, 2024, 2023, and 2022, respectively. Advertising expense is recorded as a component of sales and marketing expenses in the consolidated statements of operations.
General and Administrative
General and administrative expenses primarily consist of personnel costs and contractor fees for finance, legal, human resources, information technology, and other administrative functions. In addition, general and administrative expenses include litigation costs, net of recoveries, amortization of trademarks, travel-related expenses, and allocated overhead.
Restructuring Charges
Restructuring Charges
Restructuring charges are comprised of severance costs, payroll taxes, benefits, and stock-based compensation expense associated with the accelerated vesting of equity awards. These charges were incurred as a result of separate workforce reductions in the third quarter of 2024 and the second quarter of 2023.
Restructuring charges were recorded under a one-time benefit arrangement and accounted for in accordance with ASC 420 Exit or Disposal Cost Obligations. One-time termination benefits were expensed at the date the employees were notified. See “Note 17—Restructuring Charges” for additional information on amounts recorded.
Stock-Based Compensation
Stock-Based Compensation
We measure compensation expense for all stock-based payment awards, including stock options, restricted stock units (“RSUs”), and performance-based restricted stock units (“PSUs”) granted to employees, directors, and non-employees, as well as purchases under our 2021 Employee Stock Purchase Plan (“ESPP”), based on the estimated fair value of the awards on the date of grant. Compensation expense associated with stock options, RSUs, and the relative total shareholder return PSUs awarded in 2024 (“Relative TSR PSUs”), is recognized ratably in earnings, generally over the period during which an employee is required to provide service. Compensation expense associated with the PSUs awarded in 2023 (“2023 PSUs”) and the absolute total shareholder return PSUs (“Absolute TSR PSUs”) is recognized using the accelerated attribution method over the period we expect the service and performance conditions under the award will be achieved. Compensation expense associated with our ESPP is recognized over the offering period for the purchase rights issued under the plan. We adjust compensation expense based on actual forfeitures as necessary.
Time-Based Service Awards
Our stock options and RSUs generally vest ratably over a four-year period and the fair value of stock options and ESPP shares is estimated on the date of grant using a Black-Scholes option pricing model. Awards with graded vesting features are recognized over the requisite service period for the entire award. The determination of the grant date fair value of stock awards issued is affected by a number of variables and subjective assumptions, including (i) the fair value of our common stock, (ii) the expected common stock price volatility over the expected life of the award, (iii) the expected term of the award, (iv) risk-free interest rates, (v) the exercise price, and (vi) the expected dividend yield of our common stock.
We estimate the expected term based on the simplified method, which is the mid-point between the vesting date and the end of the contractual term for each award. The risk-free interest rate is based on the United States Treasury yield curve in effect at the time of grant whose term is consistent with the expected life of the award.
Expected dividend yield is zero percent, as we have not paid, and do not anticipate paying, dividends on our Class A common stock or Class B common stock. Upon the exercise of a stock option award or the vesting of an RSU award, shares of either our Class A common stock or Class B common stock are issued from authorized but unissued shares. The fair value for RSUs is calculated based on the stock price on the date of grant and our RSUs generally vest ratably over a four-year period.
Performance-Based Awards
In 2024, we awarded market-based Absolute TSR PSUs and Relative TSR PSUs to executives that will vest over approximately three years based upon achievement of (a) certain stock price targets and (b) our target total shareholder return (“TSR”), respectively. The Relative TSR PSUs will vest relative to the TSR of companies in the Russell 2000 Index over the specified performance period. In each case, vesting will be subject to the executive’s continuous service through the last day of the applicable performance period. Depending on achievement of the market-based metrics, the number of PSUs issued could range from 0% to 200% of the target PSUs. The fair value of the 2024 PSUs is determined using a Monte Carlo simulation model on the date of the grant.
In 2023, we awarded PSUs (“2023 PSUs”), which have performance and service vesting requirements. The fair value for PSUs is calculated based on the stock price on the date of grant and the PSUs vest depending on the achievement of certain financial metrics relative to the approved performance targets. During the year ended December 31, 2024 we completed our assessment of the 2023 PSUs based on the actual financial metrics achieved relative to the target financial metrics for the year ended December 31, 2023. The remaining eligible shares will vest according to the time-based service requirements, subject to the applicable executive’s continued service as of each vesting date.
Net Loss Per Share Attributable to Common Shareholders
Net Loss Per Share Attributable to Common Shareholders
We compute net loss per share using the two-class method required for multiple classes of common stock and participating securities. The two-class method requires income (loss) available to common stockholders for the period to be allocated between the common stock and participating securities based upon their respective rights to receive dividends as if all income (loss) for the period had been distributed.
The rights, including the liquidation and dividend rights, of the Class A common stock and Class B common stock are substantially identical, other than voting rights. Accordingly, the Class A common stock and Class B common stock shared proportionately in our net losses. No other participating securities were issued and outstanding as of December 31, 2024 and 2023.
Basic net loss per share attributable to Class A and Class B common stockholders is calculated by dividing the net loss attributable to Class A and Class B common stockholders by the weighted-average number of shares of Class A and Class B common stock outstanding for the period. The diluted net loss per share is computed by giving effect to all potentially dilutive securities outstanding for the period using the treasury stock method or the if-converted method based on the nature of such securities. Because we reported losses attributable to common stockholders for all periods presented, all potentially dilutive common stock is antidilutive for those periods.
Recently Adopted Accounting Pronouncements
Recently Adopted Accounting Pronouncements
In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires public entities to disclose information about their reportable segments’ significant expenses and other segment items on an interim and annual basis. Public entities with a single reportable segment are required to apply the disclosure requirements in ASU 2023-07, as well as all existing segment disclosures and reconciliation requirements in ASC 280 on an interim and annual basis. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. Adoption of the ASU is applied retrospectively to all prior periods presented in the financial statements. We adopted this ASU during the year ended December 31, 2024. For further information regarding the Company’s Business Segments, please refer to “Note 15—Business Segments” of our consolidated financial statements included in Item 8 of this Annual Report on Form 10-K.
Recently Issued Accounting Pronouncements
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. We do not expect that the adoption of the new guidance will have a material impact on our consolidated financial statements and related disclosures.
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures, which requires disclosure of disaggregated information about certain income statement expense line items in the notes to the financial statements on an interim and annual basis. ASU 2024-03 will be effective for the annual reporting periods in fiscal years beginning after December 15, 2026, with early adoption permitted. We are currently evaluating the impact that the adoption of ASU 2024-03 will have on our consolidated financial statements.
v3.25.0.1
Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Schedule of Rollforward of Allowance for Doubtful Accounts
The following summarizes our allowance for credit losses activity (in thousands):
Year Ended
December 31,
202420232022
Beginning balance$2,785 $612 $657 
Provision for expected credit losses4,458 2,874 283 
Writeoffs(2,651)(701)(328)
Ending balance$4,592 $2,785 $612 
v3.25.0.1
Revenue Recognition (Tables)
12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following table disaggregates revenue by type (in thousands):
Year Ended December 31, 2024
PlatformProfessional
Services and
Other
Total
Timing of revenue recognition
Transferred over time$128,166 $3,384 $131,550 
Transferred at a point in time153,388 — 153,388 
Total revenue$281,554 $3,384 $284,938 
Year Ended December 31, 2023
PlatformProfessional
Services and
Other
Total
Timing of revenue recognition
Transferred over time$100,639 $3,110 $103,749 
Transferred at a point in time124,540 — 124,540 
Total revenue$225,179 $3,110 $228,289 
Year Ended December 31, 2022
PlatformProfessional
Services and
Other
Total
Timing of revenue recognition
Transferred over time$92,304 $4,111 $96,415 
Transferred at a point in time88,989 — 88,989 
Total revenue$181,293 $4,111 $185,404 
Schedule of Current and Non-current Deferred Contract Costs
The following table summarizes the activity of current and non-current deferred contract costs (in thousands):
Year Ended
December 31,
20242023
Balance at beginning of period$10,549 $7,022 
Capitalization of deferred contract costs6,442 8,140 
Amortization of deferred contract costs(5,735)(4,613)
Balance at end of period$11,256 $10,549 
v3.25.0.1
Fair Value Measurement (Tables)
12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Schedule of Fair Value Measurements Recurring Basis
The following tables present the costs, net unrealized gains (losses), and fair value by major security type for our investments as of December 31, 2024 and 2023 (in thousands):
As of December 31, 2024
Cost
Net Unrealized Gains (Losses)
Fair ValueCash and cash equivalentsShort-term investmentsLong-term investments
Cash$151,820 $— $151,820 $151,820 $— $— 
Level 1:
Money market funds133,739 — 133,739 133,739 — — 
Commercial paper7,923 7,929 1,198 6,731 — 
Subtotal141,662 141,668 134,937 6,731 — 
Level 2:
Certificates of deposit23,291 13 23,304 — 23,304 — 
U.S. Government and agency securities45,668 (13)45,655 — 23,660 21,995 
Corporate bonds40,641 23 40,664 — 20,283 20,381 
Subtotal109,600 23 109,623 — 67,247 42,376 
Level 3:— — — — — — 
Total$403,082 $29 $403,111 $286,757 $73,978 $42,376 
As of December 31, 2023
CostNet Unrealized (Losses) GainsFair ValueCash and cash equivalentsShort-term investmentsLong-term investments
Cash$130,566 $— $130,566 $130,566 $— $— 
Level 1:
Money market funds147,652 — 147,652 147,652 — — 
Commercial paper16,408 11 16,419 — 16,419 — 
Subtotal164,060 11 164,071 147,652 16,419 — 
Level 2:
Certificates of deposit15,366 21 15,387 — 15,387 — 
U.S. Government and agency securities49,393 (73)49,320 — 33,198 16,122 
Corporate bonds28,927 26 28,953 — 19,327 9,626 
Subtotal93,686 (26)93,660 — 67,912 25,748 
Level 3:— — — — — — 
Total$388,312 $(15)$388,297 $278,218 $84,331 $25,748 
v3.25.0.1
Property and Equipment (Tables)
12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment
Property and equipment consisted of the following (in thousands):
As of December 31,
Estimated Useful Life
(in Years)
20242023
Computer and office equipment
3 - 5
$2,316 $1,800 
Capitalized internal-use software344,163 30,288 
Furniture and fixtures1033 33 
Leasehold improvementsShorter of estimated useful life or remaining term of lease59 45 
Total property and equipment46,571 32,166 
Less: accumulated depreciation and amortization(20,253)(10,111)
Total property and equipment, net$26,318 $22,055 
v3.25.0.1
Acquisitions (Tables)
12 Months Ended
Dec. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed The following table summarizes the allocation of the purchase price (at fair value), including measurement period adjustments, of the assets acquired and liabilities assumed of Omnivore (in thousands):
Final Purchase Price Allocation
Accounts receivable$451 
Other current assets148 
Operating lease right-of-use asset236 
Property and equipment24 
Other assets, noncurrent
Customer relationships1,290 
Developed technology4,410 
Trademark150 
Goodwill44,919 
Accounts payable(198)
Accrued expenses and other current liabilities(101)
Unearned revenue(226)
Operating lease liability, current(81)
Operating lease liability, noncurrent(177)
Deferred tax liability, net(1,519)
Total purchase price, net of cash acquired and post-closing working capital adjustment$49,335 
v3.25.0.1
Goodwill and Intangible Assets (Tables)
12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
The following table summarizes the changes in the carrying amount of goodwill (in thousands):
Balance at December 31, 2022207,781 
Adjustments— 
Balance at December 31, 2023$207,781 
Adjustments
— 
Balance at December 31, 2024$207,781 
Schedule of Finite-Lived Intangible Assets
The gross book value and accumulated amortization of intangible assets, net, as of December 31, 2024 and 2023 were as follows (in thousands):
Weighted-average Remaining Useful Life (in years)Gross Carrying ValueAccumulated AmortizationNet Carrying Value
Developed technology2.94$14,595 $(7,458)$7,137 
Customer relationships4.8810,921 (4,269)6,652 
Trademarks0.17486 (478)
Balance at December 31, 2024$26,002 $(12,205)$13,797 
Weighted-average Remaining Useful Life (in years)Gross Carrying ValueAccumulated AmortizationNet Carrying Value
Developed technology3.94$14,595 $(5,025)$9,570 
Customer relationships5.8710,921 (2,904)8,017 
Trademarks0.96486 (335)151 
Balance at December 31, 2023$26,002 $(8,264)$17,738 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense
As of December 31, 2024, estimated amortization related to the identifiable acquisition-related intangible assets expected to be recognized in future periods was as follows (in thousands):
2025$3,806 
20263,798 
20273,515 
20281,488 
20291,164 
Thereafter26 
Total$13,797 
v3.25.0.1
Accrued Expenses and Other Liabilities (Tables)
12 Months Ended
Dec. 31, 2024
Payables and Accruals [Abstract]  
Schedule of Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following (in thousands):
As of December 31,
20242023
Accrued delivery service partner fees$35,841 $39,964 
Accrued compensation and benefits9,733 9,148 
Professional and consulting fees1,303 3,866 
Accrued taxes1,830 1,068 
Accrued legal settlements (1)
— 9,000 
Sublease liability (2)
— 2,032 
Other
5,187 3,162 
Total accrued expenses and other current liabilities$53,894 $68,240 
(1) See “Note 14—Commitments and Contingencies” for details.
(2) We received restricted cash on behalf of the subtenant of our former corporate headquarters at One World Trade Center in advance of certain future rental obligations that will be due from the subtenant. See “Note 10—Leases” for more details.
v3.25.0.1
Leases (Tables)
12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Schedule of Lease Expense
The elements of lease expense were as follows (in thousands):
Year Ended
December 31,
202420232022
Operating lease costs$3,091 $3,815 $3,459 
Other lease income(1,963)(2,513)(549)
Total lease costs$1,128 $1,302 $2,910 
Other information related to operating leases were as follows (in thousands, except for years and percentages):
Year Ended
December 31,
202420232022
Cash paid for amounts included in the initial measurement of lease liabilities
$3,710$3,940$3,606
Year Ended
December 31,
20242023
Weighted average remaining lease term (years)5.346.08
Weighted average discount rate5.53 %5.59 %
Schedule of Remaining Operating Lease Payments
As of December 31, 2024, the total remaining operating lease payments included in the measurement of lease liabilities were as follows (in thousands):
2025$3,106 
20262,960 
20272,960 
20282,960 
20292,960 
Thereafter1,234 
Total future minimum lease payments16,180 
Less: imputed interest(2,196)
Total$13,984 
v3.25.0.1
Stockholders' Equity (Tables)
12 Months Ended
Dec. 31, 2024
Equity [Abstract]  
Schedule of Common Stock Reserved for Future Issuance
Class A common stock and Class B common stock reserved for future issuance consisted of the following:
As of December 31,
20242023
Shares available for grant under employee stock purchase plan6,203,493 5,579,991 
Shares available for grant under equity incentive plan
29,543,305 25,029,007 
Restricted stock units issued and outstanding under equity incentive plan
8,868,310 9,545,036 
Performance-based restricted stock units issued and outstanding under equity incentive plan
2,079,376 395,545 
Options issued and outstanding under equity incentive plan
18,327,238 21,797,792 
Total common stock reserved for future issuance65,021,722 62,347,371 
Schedule of Stock Repurchased Activity
The following table summarizes the share repurchase activity of our Class A common stock under the 2022 Stock Buyback Program noted above for the periods presented:
Total Number of Shares Purchased
Average Price Paid per Share (1)
Repurchases of common stock for the year ended:
December 31, 20222,687,592 7.44 
December 31, 20238,849,632 6.54 
December 31, 20244,173,999 5.29 
Total
15,711,223 6.36 
(1) Average price paid per share excludes broker commission fees.
v3.25.0.1
Stock-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of Restricted Stock Units Activity
The following table summarizes the activity for the unvested RSUs during the year ended December 31, 2024:
SharesWeighted-
Average
Grant Date Fair Value
Unvested at December 31, 20239,545,036 $8.70 
Granted4,913,298 5.19 
Vested(3,547,224)8.75 
Forfeited and canceled(2,042,800)8.21 
Unvested at December 31, 20248,868,310 6.85 
Schedule of Performance Share Units Activity
The following table summarizes the activity for the unvested PSUs during the year ended December 31, 2024:
SharesWeighted-
Average
Grant Date Fair Value
Unvested at December 31, 2023395,545 $7.77 
Granted2,089,588 6.89 
Vested(193,366)7.77 
Forfeited and canceled(212,391)7.43 
Unvested at December 31, 20242,079,376 6.08 
Schedule of Stock Options
The following summarizes our stock option activity for the periods indicated (in thousands, except share and per share amounts):
Number of
options
outstanding
Weighted-
average
exercise
price
Weighted-
average
remaining
contractual
term
(In years)
Aggregate
intrinsic
value
As of December 31, 202321,797,792 $4.35 3.69$59,055 
Granted— — 
Exercised(2,380,648)2.56 
Forfeited and canceled(1,089,906)12.63 
Vested and expected to vest as of December 31, 202418,327,238 $4.08 2.82$79,622 
Exercisable as of December 31, 202418,129,552 $3.97 2.75$79,622 
Schedule of Options Vested
The following table summarizes the weighted-average grant date fair value of options granted, intrinsic value of options exercised, and fair value of options vested for the years ended December 31, 2024, 2023, and 2022 (in thousands, except per share amounts):
Year Ended
December 31,
202420232022
Weighted-average grant date fair value of options grantedN/AN/A$4.87 
Intrinsic value of options exercised$8,403 $30,060 $66,326 
Total fair value of options vested$11,114 $18,368 $26,668 
Schedule of Black-Scholes Option Pricing Model Assumptions
We estimated the fair value of stock options granted using the Black-Scholes option pricing model with the following weighted-average assumptions:
Year Ended
December 31,
2022
Expected term (in years)
5.24 - 6.00
Volatility
32% - 36%
Risk-free interest rate
1.62% - 2.87%
Dividend yield0%
Fair value of underlying common stock
$11.07 - $15.75
Schedule of Stock-Based Compensation Expense
The classification of stock-based compensation expense, which includes expense for stock options, RSUs, PSUs, SARs, and ESPP charges, by line item within the consolidated statements of operations is as follows (in thousands):
Year Ended
December 31,
202420232022
Cost of revenue - platform$5,240 $6,838 $5,457 
Cost of revenue - professional services and other356 672 630 
Research and development11,432 15,055 14,053 
General and administrative19,962 20,813 20,339 
Sales and marketing6,411 7,756 5,545 
Restructuring charges
— 1,728 — 
Total stock-based compensation expense$43,401 $52,862 $46,024 
v3.25.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
The provision for income taxes consists of the following for the years ended December 31, 2024, 2023, and 2022 (in thousands):
Year Ended December 31,
202420232022
Current income tax provision:
Federal$155 $— $— 
State803 229 238 
Total current income tax provision958 229 238 
Deferred income tax provision:
Federal— — (1,151)
State— — (368)
Total deferred income tax benefit— — (1,519)
Total income tax (benefit) provision$958 $229 $(1,282)
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of the U.S. statutory income tax rate to our effective tax rate is as follows:
Year Ended December 31,
202420232022
Federal statutory rate21.00 %21.00 %21.00 %
State and local taxes, net of federal benefit1,033.73 0.25 2.23 
Acquisition-related deferred tax liability— — 3.22 
Valuation allowance(4,647.99)(24.04)(17.66)
Stock-based compensation2,442.63 7.82 6.34 
Executive compensation2,551.99 (5.61)(7.24)
Other168.21 0.19 (5.18)
Total provision and effective tax rate1,569.57 %(0.39)%2.71 %
Schedule of Deferred Tax Assets and Liabilities
The components of our net deferred tax assets and liabilities are as follows (in thousands):
Year Ended December 31,
20242023
Deferred tax assets:
Accrued expenses$1,591 $1,526 
Operating lease liabilities3,532 4,269 
Stock-based compensation17,307 15,315 
Net operating losses64,785 72,505 
Tax credits1,026 1,517 
Capitalized internal-use software4,726 2,554 
Charitable stock donation4,125 4,003 
Other1,159 707 
Total deferred tax assets98,251 102,396 
Less valuation allowance(88,810)(91,630)
Net deferred tax assets9,441 10,766 
Unearned revenue(339)(147)
Operating lease right-of-use assets(2,452)(3,178)
Intangible assets(3,434)(4,438)
Deferred contract costs(2,843)(2,676)
Property and equipment(373)(327)
Net deferred tax liabilities(9,441)(10,766)
Total net deferred tax assets (liabilities)$— $— 
v3.25.0.1
Commitments and Contingencies (Tables)
12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Future Payments Under Non-Cancelable Purchase Commitments
Our future payments under the non-cancelable purchase commitments as of December 31, 2024 were as follows (in thousands):
Year Ended December 31,Amount
2025$12,100 
202612,600 
202710,600 
Thereafter
230 
Total future minimum payments
$35,530 
v3.25.0.1
Business Segments (Tables)
12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
The following table presents selected financial information with respect to the Company’s single operating segment for the years ended December 31, 2024, 2023 and 2022:
Year Ended
December 31,
202420232022
(in thousands)
Revenue$284,938 $228,289 $185,404 
Less:
Cost of revenue (1)
110,240 73,194 47,891 
Research and development (1)
56,053 58,266 59,078 
General and administrative (1)
40,508 39,846 41,991 
Sales and marketing (1)
45,194 38,723 26,685 
Restructuring charges2,396 6,848 — 
Stock-based compensation expense and related payroll tax expense 44,337 52,666 46,865 
        Capitalized internal-use software and intangible amortization14,018 9,878 5,446 
Certain litigation-related expenses, net of recoveries(11,431)21,590 — 
Interest income(19,280)(17,237)(4,592)
Other segment items (2)
3,800 2,802 8,008 
Net loss$(897)$(58,287)$(45,968)
(1) Amount excludes the following as applicable: Stock-based compensation expense and related payroll tax expense; Capitalized internal-use software and intangible amortization; certain litigation-related expenses, net of recoveries; and other non-significant segment expenses, net.
(2) Includes depreciation from property and equipment of $0.4 million, $0.4 million, and $0.6 million, respectively, for the years ended December 31, 2024, 2023, and 2022, respectively. Other segment items also include items such as non-cash impairments, disposals on assets, charitable donation of class A common stock, certain severance costs, acquisition-related transaction costs, interest expense, other income (expense), net, and provision (benefit) for income taxes.
v3.25.0.1
Net Loss per Share Attributable to Common Stockholders (Tables)
12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Schedule of Net Loss Available to Common Stockholders
A reconciliation of net loss available to common stockholders and the number of shares in the calculation of basic loss per share is as follows (in thousands):
Year Ended December 31,
202420232022
Numerator:
Net loss attributable to Class A and Class B common stockholders—basic and diluted$(897)$(58,287)$(45,968)
Denominator:
Weighted-average Class A and Class B common shares outstanding—basic and diluted162,608,353 162,993,686 161,303,397 
Net loss per share attributable to Class A and Class B common stockholders—basic and diluted$(0.01)$(0.36)$(0.28)
Schedule of Anti-dilutive Securities Excluded from Loss per Share
The following securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented, because including them would have been anti-dilutive (on an as-converted basis):
Year Ended December 31,
202420232022
Outstanding stock options18,327,238 21,797,792 29,859,096 
Outstanding RSUs and PSUs
10,947,686 9,940,581 4,559,917 
Outstanding shares estimated to be purchased under ESPP177,252 263,601 284,705 
Total29,452,176 32,001,974 34,703,718 
v3.25.0.1
Restructuring Charges (Tables)
12 Months Ended
Dec. 31, 2024
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring Liabilities
The following table summarizes the restructuring liabilities, which are recorded within accrued expenses and other current liabilities on the consolidated balance sheets, as of December 31, 2024 (in thousands):
Balance at January 1, 2024$— 
Charges2,396 
Payments(2,396)
Balance at December 31, 2024$— 
The following table summarizes the restructuring liabilities, which are recorded within accrued expenses and other current liabilities on the consolidated balance sheets, as of December 31, 2023 (in thousands):
Balance at January 1, 2023$— 
Charges6,848 
Payments(6,848)
Balance at December 31, 2023$— 
v3.25.0.1
Significant Accounting Policies - Narrative (Details)
1 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2024
USD ($)
segment
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Property, Plant and Equipment [Line Items]        
General and administrative   $ 51,543,000 $ 85,098,000 $ 70,356,000
Total cost of revenue   128,515,000 89,323,000 58,466,000
Sales and marketing   53,142,000 48,190,000 34,043,000
Research and development   $ 68,483,000 73,914,000 74,203,000
Number of operating segments | segment   1    
Number of reporting units | segment   1    
Collateralized restricted cash     2,000,000.0  
Unbilled receivables   $ 1,000,000 700,000  
Capitalized contract cost, amortization period (in years)   3 years    
Goodwill and intangible asset impairment   $ 0 0 0
Advertising expense   $ 1,000,000.0 $ 1,500,000 900,000
Revision of Prior Period, Reclassification, Adjustment        
Property, Plant and Equipment [Line Items]        
General and administrative       2,700,000
Sales and marketing       400,000
Research and development       $ 1,300,000
Outstanding stock options        
Property, Plant and Equipment [Line Items]        
Vesting period (in years)   4 years    
Dividend yield   0.00%   0.00%
Restricted stock units issued and outstanding under equity incentive plan        
Property, Plant and Equipment [Line Items]        
Vesting period (in years)   4 years    
Performance Shares        
Property, Plant and Equipment [Line Items]        
Vesting period (in years) 3 years 3 years    
Share-based compensation, target amount percentage   103.86%    
Absolute TSR PSUs        
Property, Plant and Equipment [Line Items]        
Vesting period (in years)   3 years    
Relative TSR PSUs        
Property, Plant and Equipment [Line Items]        
Vesting period (in years)   3 years    
Minimum        
Property, Plant and Equipment [Line Items]        
Capitalized contract cost, amortization period (in years)   1 year    
Contract with customer, initial term   3 years    
Contract with customer, term of renewal period   1 year    
Minimum | Performance Shares        
Property, Plant and Equipment [Line Items]        
Share-based compensation, target amount percentage 0.00% 0.00%    
Maximum        
Property, Plant and Equipment [Line Items]        
Capitalized contract cost, amortization period (in years)   3 years    
Contract with customer, term of renewal period   2 years    
Maximum | Performance Shares        
Property, Plant and Equipment [Line Items]        
Share-based compensation, target amount percentage 200.00% 200.00%    
Largest Customer | Revenue Benchmark | Customer Concentration Risk        
Property, Plant and Equipment [Line Items]        
Concentration risk (as a percent)   9.00% 12.00% 12.00%
Platform        
Property, Plant and Equipment [Line Items]        
Total cost of revenue   $ 125,245,000 $ 85,195,000 $ 52,634,000
Platform | Revision of Prior Period, Reclassification, Adjustment        
Property, Plant and Equipment [Line Items]        
Total cost of revenue       800,000
Professional services and other        
Property, Plant and Equipment [Line Items]        
Total cost of revenue   $ 3,270,000 $ 4,128,000 5,832,000
Professional services and other | Revision of Prior Period, Reclassification, Adjustment        
Property, Plant and Equipment [Line Items]        
Total cost of revenue       $ 100,000
v3.25.0.1
Significant Accounting Policies - Accounts Receivable (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning balance $ 2,785 $ 612 $ 657
Provision for expected credit losses 4,458 2,874 283
Writeoffs (2,651) (701) (328)
Ending balance $ 4,592 $ 2,785 $ 612
v3.25.0.1
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Disaggregation of Revenue [Line Items]      
Total revenue $ 284,938 $ 228,289 $ 185,404
Transferred over time      
Disaggregation of Revenue [Line Items]      
Total revenue 131,550 103,749 96,415
Transferred at a point in time      
Disaggregation of Revenue [Line Items]      
Total revenue 153,388 124,540 88,989
Platform      
Disaggregation of Revenue [Line Items]      
Total revenue 281,554 225,179 181,293
Platform | Transferred over time      
Disaggregation of Revenue [Line Items]      
Total revenue 128,166 100,639 92,304
Platform | Transferred at a point in time      
Disaggregation of Revenue [Line Items]      
Total revenue 153,388 124,540 88,989
Professional services and other      
Disaggregation of Revenue [Line Items]      
Total revenue 3,384 3,110 4,111
Professional services and other | Transferred over time      
Disaggregation of Revenue [Line Items]      
Total revenue 3,384 3,110 4,111
Professional services and other | Transferred at a point in time      
Disaggregation of Revenue [Line Items]      
Total revenue $ 0 $ 0 $ 0
v3.25.0.1
Revenue Recognition - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Contract assets $ 1.7 $ 0.8
Revenue recognized previously unearned 1.5 $ 1.9
Remaining performance obligations $ 44.8  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Percent of remaining performance obligation expected to be recognized (as a percent) 48.00%  
Revenue, remaining performance obligation, period (in months) 12 months  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Minimum    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Revenue, remaining performance obligation, period (in months) 24 months  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Maximum    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Revenue, remaining performance obligation, period (in months) 48 months  
v3.25.0.1
Revenue Recognition - Deferred Contract Costs (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Capitalized Contract Cost [Roll Forward]    
Capitalized contract cost balance at beginning of period $ 10,549 $ 7,022
Capitalization of deferred contract costs 6,442 8,140
Amortization of deferred contract costs (5,735) (4,613)
Capitalized contract cost balance at end of period $ 11,256 $ 10,549
v3.25.0.1
Fair Value Measurement - Amortized Cost and Fair Value (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Debt Securities, Available-for-Sale [Line Items]    
Cost $ 403,082 $ 388,312
Net Unrealized Gains (Losses) 29 (15)
Fair Value 403,111 388,297
Cash and cash equivalents 286,757 278,218
Short-term investments 73,978 84,331
Long-term investments 42,376 25,748
Fair Value, Inputs, Level 1 | Fair Value, Recurring    
Debt Securities, Available-for-Sale [Line Items]    
Cost 141,662 164,060
Net Unrealized Gains (Losses) 6 11
Fair Value 141,668 164,071
Cash and cash equivalents 134,937 147,652
Short-term investments 6,731 16,419
Long-term investments 0 0
Fair Value, Inputs, Level 2 | Fair Value, Recurring    
Debt Securities, Available-for-Sale [Line Items]    
Cost 109,600 93,686
Net Unrealized Gains (Losses) 23 (26)
Fair Value 109,623 93,660
Cash and cash equivalents 0 0
Short-term investments 67,247 67,912
Long-term investments 42,376 25,748
Fair Value, Inputs, Level 3 | Fair Value, Recurring    
Debt Securities, Available-for-Sale [Line Items]    
Cost 0 0
Net Unrealized Gains (Losses) 0 0
Fair Value 0 0
Cash and cash equivalents 0 0
Short-term investments 0 0
Long-term investments 0 0
Cash    
Debt Securities, Available-for-Sale [Line Items]    
Cost 151,820 130,566
Net Unrealized Gains (Losses) 0 0
Fair Value 151,820 130,566
Cash and cash equivalents 151,820 130,566
Short-term investments 0 0
Long-term investments 0 0
Money market funds | Fair Value, Inputs, Level 1 | Fair Value, Recurring    
Debt Securities, Available-for-Sale [Line Items]    
Cost 133,739 147,652
Net Unrealized Gains (Losses) 0 0
Fair Value 133,739 147,652
Cash and cash equivalents 133,739 147,652
Short-term investments 0 0
Long-term investments 0 0
Commercial paper | Fair Value, Inputs, Level 1 | Fair Value, Recurring    
Debt Securities, Available-for-Sale [Line Items]    
Cost 7,923 16,408
Net Unrealized Gains (Losses) 6 11
Fair Value 7,929 16,419
Cash and cash equivalents 1,198 0
Short-term investments 6,731 16,419
Long-term investments 0 0
Certificates of deposit | Fair Value, Inputs, Level 2 | Fair Value, Recurring    
Debt Securities, Available-for-Sale [Line Items]    
Cost 23,291 15,366
Net Unrealized Gains (Losses) 13 21
Fair Value 23,304 15,387
Cash and cash equivalents 0 0
Short-term investments 23,304 15,387
Long-term investments 0 0
U.S. Government and agency securities | Fair Value, Inputs, Level 2 | Fair Value, Recurring    
Debt Securities, Available-for-Sale [Line Items]    
Cost 45,668 49,393
Net Unrealized Gains (Losses) (13) (73)
Fair Value 45,655 49,320
Cash and cash equivalents 0 0
Short-term investments 23,660 33,198
Long-term investments 21,995 16,122
Corporate bonds | Fair Value, Inputs, Level 2 | Fair Value, Recurring    
Debt Securities, Available-for-Sale [Line Items]    
Cost 40,641 28,927
Net Unrealized Gains (Losses) 23 26
Fair Value 40,664 28,953
Cash and cash equivalents 0 0
Short-term investments 20,283 19,327
Long-term investments $ 20,381 $ 9,626
v3.25.0.1
Fair Value Measurement - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Fair Value Disclosures [Abstract]      
Non-cash impairment charges $ 0.6 $ 0.0 $ 0.5
Operating lease, impairment loss $ 0.6 $ 0.0 2.2
Impairment of lease     $ 2.3
v3.25.0.1
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 46,571 $ 32,166
Less: accumulated depreciation and amortization (20,253) (10,111)
Total property and equipment, net 26,318 22,055
Computer and office equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 2,316 1,800
Computer and office equipment | Minimum    
Property, Plant and Equipment [Line Items]    
Estimated Useful Life (in Years) 3 years  
Computer and office equipment | Maximum    
Property, Plant and Equipment [Line Items]    
Estimated Useful Life (in Years) 5 years  
Capitalized internal-use software    
Property, Plant and Equipment [Line Items]    
Estimated Useful Life (in Years) 3 years  
Property and equipment, gross $ 44,163 30,288
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Estimated Useful Life (in Years) 10 years  
Property and equipment, gross $ 33 33
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 59 $ 45
v3.25.0.1
Property and Equipment - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]      
Depreciation $ 10.5 $ 6.3 $ 2.2
Impairment of assets     0.1
Capitalized computer software 44.2 30.3  
Non-cash impairment charges 0.6 0.0 0.5
Capitalized internal-use software      
Property, Plant and Equipment [Line Items]      
Capitalized internal-use software and intangible amortization 10.1 $ 5.9 $ 1.7
Internal use software, expected amortization, year one 10.7    
Internal use software, expected amortization, year two 6.3    
Internal use software, expected amortization, year three $ 1.8    
v3.25.0.1
Acquisitions - Narrative (Details) - Omnivore Technologies, Inc.
12 Months Ended
Mar. 04, 2022
USD ($)
Dec. 31, 2023
USD ($)
Business Acquisition [Line Items]    
Business combination consideration transferred $ 49,300,000  
Goodwill, deductible for tax purposes $ 0  
Transaction related expenses   $ 100,000
Customer relationships | Discount Rate    
Business Acquisition [Line Items]    
Intangible assets, measurement input (as a percent) 0.110  
Developed technology | Discount Rate    
Business Acquisition [Line Items]    
Intangible assets, measurement input (as a percent) 0.110  
Developed technology | Pre Tax Royalty Rate    
Business Acquisition [Line Items]    
Intangible assets, measurement input (as a percent) 0.200  
Trademarks | Discount Rate    
Business Acquisition [Line Items]    
Intangible assets, measurement input (as a percent) 0.110  
Trademarks | Pre Tax Royalty Rate    
Business Acquisition [Line Items]    
Intangible assets, measurement input (as a percent) 0.010  
v3.25.0.1
Acquisitions - Allocation (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Mar. 04, 2022
Business Acquisition [Line Items]        
Goodwill $ 207,781 $ 207,781 $ 207,781  
Omnivore Technologies, Inc.        
Business Acquisition [Line Items]        
Accounts receivable       $ 451
Other current assets       148
Operating lease right-of-use asset       236
Property and equipment       24
Other assets, noncurrent       9
Goodwill       44,919
Accounts payable       (198)
Accrued expenses and other current liabilities       (101)
Unearned revenue       (226)
Operating lease liability, current       (81)
Operating lease liability, noncurrent       (177)
Deferred tax liability, net       (1,519)
Total purchase price, net of cash acquired and post-closing working capital adjustment       49,335
Omnivore Technologies, Inc. | Customer relationships        
Business Acquisition [Line Items]        
Intangible assets       1,290
Omnivore Technologies, Inc. | Developed technology        
Business Acquisition [Line Items]        
Intangible assets       4,410
Omnivore Technologies, Inc. | Trademarks        
Business Acquisition [Line Items]        
Intangible assets       $ 150
v3.25.0.1
Goodwill and Intangible Assets - Rollforward (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Goodwill [Roll Forward]    
Balance as of the beginning of the period $ 207,781 $ 207,781
Adjustments 0 0
Balance as of the end of the period $ 207,781 $ 207,781
v3.25.0.1
Goodwill and Intangible Assets - Gross Book Value (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value $ 26,002 $ 26,002
Accumulated Amortization (12,205) (8,264)
Net Carrying Value $ 13,797 $ 17,738
Developed technology    
Finite-Lived Intangible Assets [Line Items]    
Weighted-average Remaining Useful Life (in years) 2 years 11 months 8 days 3 years 11 months 8 days
Gross Carrying Value $ 14,595 $ 14,595
Accumulated Amortization (7,458) (5,025)
Net Carrying Value $ 7,137 $ 9,570
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Weighted-average Remaining Useful Life (in years) 4 years 10 months 17 days 5 years 10 months 13 days
Gross Carrying Value $ 10,921 $ 10,921
Accumulated Amortization (4,269) (2,904)
Net Carrying Value $ 6,652 $ 8,017
Trademarks    
Finite-Lived Intangible Assets [Line Items]    
Weighted-average Remaining Useful Life (in years) 2 months 1 day 11 months 15 days
Gross Carrying Value $ 486 $ 486
Accumulated Amortization (478) (335)
Net Carrying Value $ 8 $ 151
v3.25.0.1
Goodwill and Intangible Assets - Narratives (Details) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]      
Amortization of intangible assets $ 3,900,000 $ 4,000,000.0 $ 3,800,000
Goodwill and intangible asset impairment $ 0 $ 0 $ 0
v3.25.0.1
Goodwill and Intangible Assets - Future Amortization (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2025 $ 3,806
2026 3,798
2027 3,515
2028 1,488
2029 1,164
Thereafter 26
Total $ 13,797
v3.25.0.1
Accrued Expenses and Other Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Payables and Accruals [Abstract]    
Accrued delivery service partner fees $ 35,841 $ 39,964
Accrued compensation and benefits 9,733 9,148
Professional and consulting fees 1,303 3,866
Accrued taxes 1,830 1,068
Accrued legal settlement 0 9,000
Sublease liability 0 2,032
Other 5,187 3,162
Total accrued expenses and other current liabilities $ 53,894 $ 68,240
v3.25.0.1
Line of Credit (Details) - USD ($)
$ in Thousands
Jun. 10, 2022
Dec. 31, 2024
Letter of Credit | Revolving Credit Facility    
Debt Instrument [Line Items]    
Letters of credit outstanding, amount   $ 1,400
Line of Credit | Revolving Credit Facility    
Debt Instrument [Line Items]    
Outstanding balance of credit   0
Second Amended Credit Facility | Line of Credit    
Debt Instrument [Line Items]    
Maximum borrowing capacity $ 70,000  
Line of credit facility, accordion feature, increase limit $ 125,000  
Interest rate (as a percent) 3.25%  
Fee on outstanding principal (as a percent) 1.00%  
Liquidity event $ 3,500  
Debt instrument, liquidity event, term (in months) 24 months  
Second Amended Credit Facility | Line of Credit | Triggering Event Two    
Debt Instrument [Line Items]    
Success triggering fee $ 400  
Second Amended Credit Facility | Line of Credit | Triggering Event Three    
Debt Instrument [Line Items]    
Success triggering fee 200  
Second Amended Credit Facility | Line of Credit | Triggering Event Four    
Debt Instrument [Line Items]    
Success triggering fee $ 0  
Second Amended Credit Facility | Line of Credit | Minimum    
Debt Instrument [Line Items]    
Basis spread (as a percent) 0.25%  
Second Amended Credit Facility | Line of Credit | Maximum    
Debt Instrument [Line Items]    
Basis spread (as a percent) 3.50%  
Restated Agreement | Letter of Credit    
Debt Instrument [Line Items]    
Current borrowing capacity   68,600
Amounts drawn against letter of credit   $ 0
v3.25.0.1
Leases - Narrative (Details)
$ in Thousands
1 Months Ended 12 Months Ended
Feb. 29, 2024
USD ($)
Dec. 31, 2024
USD ($)
lease
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Lessee, Lease, Description [Line Items]        
Number of non-cancelable operating leases | lease   3    
Operating lease, impairment loss   $ 600 $ 0 $ 2,200
Reduction of operating lease right-of-use liabilities   2,844 2,905 2,535
Operating lease right-of-use assets   $ 9,709 12,529  
Collateralized restricted cash     2,000  
Lease termination benefit $ 1,400      
Impairment of assets       100
Professional fees       $ 900
Building        
Lessee, Lease, Description [Line Items]        
Reduction of operating lease right-of-use liabilities     300  
Reduction of operating lease right-of-use assets     $ 300  
v3.25.0.1
Leases - Lease Expenses (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]      
Operating lease costs $ 3,091 $ 3,815 $ 3,459
Operating Lease Income Comprehensive Income Extensible List Not Disclosed Flag Other lease income Other lease income Other lease income
Other lease income $ (1,963) $ (2,513) $ (549)
Total lease costs $ 1,128 $ 1,302 $ 2,910
v3.25.0.1
Leases - Other Information Related to Operating Leases (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]      
Cash paid for amounts included in the initial measurement of lease liabilities $ 3,710 $ 3,940 $ 3,606
Weighted average remaining lease term (years) 5 years 4 months 2 days 6 years 29 days  
Weighted average discount rate 5.53% 5.59%  
v3.25.0.1
Leases - Remaining Operating Lease Payments (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Leases [Abstract]  
2025 $ 3,106
2026 2,960
2027 2,960
2028 2,960
2029 2,960
Thereafter 1,234
Total future minimum lease payments 16,180
Less: imputed interest (2,196)
Total $ 13,984
v3.25.0.1
Stockholders' Equity - Common Stock Reserved for Future Issuance (Details) - shares
Dec. 31, 2024
Dec. 31, 2023
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 65,021,722 62,347,371
Shares available for grant under employee stock purchase plan    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 6,203,493 5,579,991
Shares available for grant under equity incentive plan    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 29,543,305 25,029,007
Restricted stock units issued and outstanding under equity incentive plan    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 8,868,310 9,545,036
Performance-based restricted stock units issued and outstanding under equity incentive plan    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 2,079,376 395,545
Options issued and outstanding under equity incentive plan    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 18,327,238 21,797,792
v3.25.0.1
Stockholders' Equity - Narrative (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Apr. 30, 2024
Sep. 07, 2022
Class of Stock [Line Items]          
Number of shares purchased, repurchase of common stock (in shares) 4,173,999 8,849,632 2,687,592    
Issuance of common stock in connection with charitable donation $ 823 $ 1,136 $ 1,406    
Common Class A          
Class of Stock [Line Items]          
Issuance of common stock in connection with charitable donation (in shares) 172,918 172,918      
Issuance of common stock in connection with charitable donation $ 800 $ 1,100      
Donated shares (in shares) 864,590        
Expected percent of remaining shares to be donated 10.00%        
Common Class A | 2022 Buyback Program          
Class of Stock [Line Items]          
Repurchase of common stock authorized amount         $ 100,000
Common Class A | 2024 Buyback Program          
Class of Stock [Line Items]          
Repurchase of common stock authorized amount       $ 100,000  
Number of shares purchased, repurchase of common stock (in shares) 0        
v3.25.0.1
Stockholders' Equity - Share Repurchase Activity (Details) - $ / shares
12 Months Ended 24 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2024
Stock Repurchase Program [Roll Forward]        
Number of shares purchased, repurchase of common stock (in shares) 4,173,999 8,849,632 2,687,592  
Number of shares purchased, ending (in shares) 15,711,223     15,711,223
Average price paid per share, (in usd per share) $ 5.29 $ 6.54 $ 7.44 $ 6.36
v3.25.0.1
Stock-Based Compensation - Narrative (Details) - USD ($)
$ in Thousands
1 Months Ended 12 Months Ended
Jan. 01, 2024
Jan. 01, 2023
Mar. 13, 2021
Mar. 05, 2021
Mar. 31, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Common shares authorized for issuance (in shares)           49,484,228 40,556,635  
Common stock reserved for future issuance (in shares)           65,021,722 62,347,371  
Future stock-based compensation for unvested options granted and outstanding           $ 700    
Stock-based compensation expense and related payroll tax expense           $ 43,401 $ 52,862 $ 46,024
Two Thousand Twenty One Equity Incentive Plan | Common Class A                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Share-based compensation, number of additional shares authorized (in shares) 8,168,075              
Outstanding stock options                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Expiration period (in years)           10 years    
Percent determining major stockholder (as a percent)           10.00%    
Percentage of fair value of shares at grant date to determine purchase price (as a percent)           100.00%    
Vesting period (in years)           4 years    
Weighted-average recognition period (in years)           10 months 24 days    
Outstanding stock options | 10% Stockholder                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Expiration period (in years)           5 years    
Incentive stock option (ISO) and nonqualified stock option (NSO) | Minimum                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Percent determining major stockholder (as a percent)           10.00%    
Incentive stock option (ISO) and nonqualified stock option (NSO) | 10% Stockholder                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Percentage of fair value of shares at grant date to determine purchase price (as a percent)           110.00%    
RSUs                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Vesting period (in years)           4 years    
RSU vested           $ 19,800    
Unrecognized compensation expense           $ 56,900    
Weighted-average recognition period (in years)           2 years 5 months 15 days    
Vested (in shares)           3,547,224    
RSUs | Director                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Vesting period (in years)     3 years          
Value of awards granted     $ 400          
Shares available for grant under equity incentive plan                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Common stock reserved for future issuance (in shares)           29,543,305 25,029,007  
Performance Shares                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Vesting period (in years)         3 years 3 years    
RSU vested           $ 1,100    
Unrecognized compensation expense           $ 9,400    
Weighted-average recognition period (in years)           1 year 11 months 26 days    
Requisite service period (in years)           1 year    
Share-based compensation, trading day           30 days    
Share-based compensation, target amount percentage           103.86%    
Vested (in shares)           193,366    
Performance Shares | Minimum                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Share-based compensation, target amount percentage         0.00% 0.00%    
Performance Shares | Maximum                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Share-based compensation, target amount percentage         200.00% 200.00%    
Shares available for grant under employee stock purchase plan                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Common shares authorized for issuance (in shares)           6,203,493    
Stock-based compensation expense and related payroll tax expense           $ 700 $ 1,200 $ 1,500
Shares available for grant under employee stock purchase plan | Common Class A                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Share-based compensation, number of additional shares authorized (in shares)   1,084,696            
Percentage of fair value of shares at grant date to determine purchase price (as a percent)       85.00%        
Common shares authorized for issuance (in shares)       3,900,000        
Annual percent increase of number of shares reserved for issuance (as a percent)       1.00%        
Annual increase of number of shares reserved for issuance (in shares)       11,700,000        
Percentage of earnings applied to purchase of stock under ESPP (as a percent)       15.00%        
v3.25.0.1
Stock-Based Compensation - Schedule of RSUs (Details) - RSUs
12 Months Ended
Dec. 31, 2024
$ / shares
shares
Shares  
Unvested at beginning of period (in shares) | shares 9,545,036
Granted (in shares) | shares 4,913,298
Vested (in shares) | shares (3,547,224)
Forfeited and canceled (in shares) | shares (2,042,800)
Unvested at end of period (in shares) | shares 8,868,310
Weighted- Average Grant Date Fair Value  
Unvested at beginning of period (in USD per share) | $ / shares $ 8.70
Granted (in USD per share) | $ / shares 5.19
Vested (in USD per share) | $ / shares 8.75
Forfeited and canceled (in USD per share) | $ / shares 8.21
Unvested at end of period (in USD per share) | $ / shares $ 6.85
v3.25.0.1
Stock-Based Compensation - Schedule of PSUs (Details) - PSUs
12 Months Ended
Dec. 31, 2024
$ / shares
shares
Shares  
Unvested at beginning of period (in shares) | shares 395,545
Granted (in shares) | shares 2,089,588
Vested (in shares) | shares (193,366)
Forfeited and canceled (in shares) | shares (212,391)
Unvested at end of period (in shares) | shares 2,079,376
Weighted- Average Grant Date Fair Value  
Unvested at beginning of period (in USD per share) | $ / shares $ 7.77
Granted (in USD per share) | $ / shares 6.89
Vested (in USD per share) | $ / shares 7.77
Forfeited and canceled (in USD per share) | $ / shares 7.43
Unvested at end of period (in USD per share) | $ / shares $ 6.08
v3.25.0.1
Stock-Based Compensation - Schedule of Stock Options (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Number of options outstanding    
Options outstanding at beginning of period (in shares) 21,797,792  
Options granted (in shares) 0  
Options exercised (in shares) (2,380,648)  
Options forfeited and canceled (in shares) (1,089,906)  
Options outstanding at end of period (in shares) 18,327,238 21,797,792
Options vested and expected to vest (in shares) 18,327,238  
Options exercisable (in shares) 18,129,552  
Weighted- average exercise price    
Weighted-average exercise price of options outstanding at beginning of period (in USD per share) $ 4.35  
Weighted-average exercise price of options granted (in USD per share) 0  
Weighted-average exercise price of options exercised (in USD per share) 2.56  
Weighted-average exercise price of options forfeited and canceled (in USD per share) 12.63  
Weighted-average exercise price of options outstanding at end of period (in USD per share) 4.08 $ 4.35
Weighted-average exercise price of options vested and expected to vest (in USD per share) 4.08  
Weighted-average exercise price of options exercisable (in USD per share) $ 3.97  
Weighted-average remaining contractual term of options outstanding (in years) 2 years 9 months 25 days 3 years 8 months 8 days
Weighted-average remaining contractual term of options vested and expected to vest (in years) 2 years 9 months 25 days  
Weighted-average remaining contractual term of options exercisable (in years) 2 years 9 months  
Aggregate intrinsic value of shares outstanding $ 79,622 $ 59,055
Aggregate intrinsic value of options vested and expected to vest 79,622  
Aggregate intrinsic value of shares exercisable $ 79,622  
v3.25.0.1
Stock-Based Compensation - Schedule of Additional Stock Option Disclosures (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]      
Weighted-average grant date fair value of options granted (in USD per share)     $ 4.87
Intrinsic value of options exercised $ 8,403 $ 30,060 $ 66,326
Total fair value of options vested $ 11,114 $ 18,368 $ 26,668
v3.25.0.1
Stock-Based Compensation - Schedule of Black-Scholes Assumptions (Details) - Outstanding stock options - $ / shares
12 Months Ended
Dec. 31, 2024
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Minimum risk-free interest rate   1.62%
Maximum risk-free interest rate   2.87%
Dividend yield 0.00% 0.00%
Minimum    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Expected term (in years)   5 years 2 months 26 days
Volatility   32.00%
Fair value of underlying common stock (in USD per share)   $ 11.07
Maximum    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Expected term (in years)   6 years
Volatility   36.00%
Fair value of underlying common stock (in USD per share)   $ 15.75
v3.25.0.1
Stock-Based Compensation - ESPP (Details) - USD ($)
$ in Thousands
12 Months Ended
Jan. 01, 2023
Mar. 05, 2021
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Common shares authorized for issuance (in shares)     49,484,228 40,556,635  
Stock-based compensation expense and related payroll tax expense     $ 43,401 $ 52,862 $ 46,024
Shares available for grant under employee stock purchase plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Common shares authorized for issuance (in shares)     6,203,493    
Stock-based compensation expense and related payroll tax expense     $ 700 $ 1,200 $ 1,500
Shares available for grant under employee stock purchase plan | Common Class A          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Common shares authorized for issuance (in shares)   3,900,000      
Annual percent increase of number of shares reserved for issuance (as a percent)   1.00%      
Annual increase of number of shares reserved for issuance (in shares)   11,700,000      
Percentage of earnings applied to purchase of stock under ESPP (as a percent)   15.00%      
Percentage of fair value of shares at grant date to determine purchase price (as a percent)   85.00%      
Share-based compensation, number of additional shares authorized (in shares) 1,084,696        
v3.25.0.1
Stock-Based Compensation - Schedule of Compensation Expense (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense $ 43,401 $ 52,862 $ 46,024
Cost of Revenue | Platform      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 5,240 6,838 5,457
Cost of Revenue | Professional services and other      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 356 672 630
Research and development      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 11,432 15,055 14,053
General and administrative      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 19,962 20,813 20,339
Sales and marketing      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 6,411 7,756 5,545
Restructuring charges      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense $ 0 $ 1,728 $ 0
v3.25.0.1
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Current income tax provision:      
Federal $ 155 $ 0 $ 0
State 803 229 238
Total current income tax provision 958 229 238
Deferred income tax provision:      
Federal 0 0 (1,151)
State 0 0 (368)
Total deferred income tax benefit 0 0 (1,519)
Total income tax (benefit) provision $ 958 $ 229 $ (1,282)
v3.25.0.1
Income Taxes - Schedule of Income Tax Rate Reconciliation (Details)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
Federal statutory rate 21.00% 21.00% 21.00%
State and local taxes, net of federal benefit 1033.73% 0.25% 2.23%
Acquisition-related deferred tax liability 0.00% 0.00% 3.22%
Valuation allowance (4647.99%) (24.04%) (17.66%)
Stock-based compensation 2442.63% 7.82% 6.34%
Executive compensation 2551.99% (5.61%) (7.24%)
Other 168.21% 0.19% (5.18%)
Total provision and effective tax rate 1569.57% (0.39%) 2.71%
v3.25.0.1
Income Taxes - Schedule of Deferred Tax Asset and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Deferred tax assets:    
Accrued expenses $ 1,591 $ 1,526
Operating lease liabilities 3,532 4,269
Stock-based compensation 17,307 15,315
Net operating losses 64,785 72,505
Tax credits 1,026 1,517
Capitalized internal-use software 4,726 2,554
Charitable stock donation 4,125 4,003
Other 1,159 707
Total deferred tax assets 98,251 102,396
Less valuation allowance (88,810) (91,630)
Net deferred tax assets 9,441 10,766
Deferred tax liabilities    
Unearned revenue (339) (147)
Operating lease right-of-use assets (2,452) (3,178)
Intangible assets (3,434) (4,438)
Deferred contract costs (2,843) (2,676)
Property and equipment (373) (327)
Net deferred tax liabilities (9,441) (10,766)
Total net deferred tax assets (liabilities) $ 0 $ 0
v3.25.0.1
Income Taxes - Narrative (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Contingency [Line Items]      
Valuation allowance, increase (decrease) amount $ (2,800) $ 16,700  
Tax credits 1,026 1,517  
Income tax penalties and interest accrued 0 0 $ 0
Federal      
Income Tax Contingency [Line Items]      
Operating loss carryforwards 254,000 287,300  
Federal | Research Tax Credit Carryforward      
Income Tax Contingency [Line Items]      
Tax credit carryforward, amount 1,000 1,500  
State      
Income Tax Contingency [Line Items]      
Operating loss carryforwards $ 198,300 $ 211,400  
v3.25.0.1
Commitments and Contingencies - Narrative (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Jun. 11, 2024
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]      
Accrued legal settlement $ 0   $ 9,000
Insurance recoveries 12,100    
Outstanding voting stock, percentage   49.90%  
Litigation-related expenses 600    
Non-cancelable purchase commitments $ 35,530    
Non-cancelable purchase commitments, period 3 years    
v3.25.0.1
Commitments and Contingencies - Schedule of Future Payments Under Non-Cancelable Purchase Commitments (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Year Ended December 31,  
2025 $ 12,100
2026 12,600
2027 10,600
Thereafter 230
Total future minimum payments $ 35,530
v3.25.0.1
Business Segments (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2024
USD ($)
segment
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Segment Reporting Information [Line Items]      
Number of operating segments | segment 1    
Revenue $ 284,938 $ 228,289 $ 185,404
Restructuring charges 2,396 6,848 0
Interest income (19,280) (17,237) (4,592)
Net loss (897) (58,287) (45,968)
Depreciation 10,500 6,300 2,200
Reportable Segment      
Segment Reporting Information [Line Items]      
Revenue 284,938 228,289 185,404
Cost of revenue 110,240 73,194 47,891
Research and development 56,053 58,266 59,078
General and administrative 40,508 39,846 41,991
Sales and marketing 45,194 38,723 26,685
Restructuring charges 2,396 6,848 0
Stock-based compensation expense and related payroll tax expense 44,337 52,666 46,865
Capitalized internal-use software and intangible amortization 14,018 9,878 5,446
Certain litigation-related expenses, net of recoveries (11,431) 21,590 0
Interest income (19,280) (17,237) (4,592)
Other segment items 3,800 2,802 8,008
Net loss (897) (58,287) (45,968)
Depreciation $ 400 $ 400 $ 600
v3.25.0.1
Net Loss per Share Attributable to Common Stockholders - Schedule of EPS (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Earnings Per Share [Abstract]      
Net loss attributable to Class A and Class B common stockholders—basic $ (897) $ (58,287) $ (45,968)
Net loss attributable to Class A and Class B common stockholders—diluted $ (897) $ (58,287) $ (45,968)
Weighted Average Number of Shares Outstanding, Basic [Abstract]      
Weighted-average Class A and Class B common shares outstanding - basic (in shares) 162,608,353 162,993,686 161,303,397
Weighted-average Class A and Class B common shares outstanding - diluted (in shares) 162,608,353 162,993,686 161,303,397
Net loss per share attributable to Class A and Class B common stockholders - basic (in shares) $ (0.01) $ (0.36) $ (0.28)
Net loss per share attributable to Class A and Class B common stockholders - diluted (in shares) $ (0.01) $ (0.36) $ (0.28)
v3.25.0.1
Net Loss per Share Attributable to Common Stockholders - Antidilutive Securities (Details) - shares
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of net loss per share (in shares) 29,452,176 32,001,974 34,703,718
Outstanding stock options      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of net loss per share (in shares) 18,327,238 21,797,792 29,859,096
Outstanding RSUs and PSUs      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of net loss per share (in shares) 10,947,686 9,940,581 4,559,917
Shares available for grant under employee stock purchase plan      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of net loss per share (in shares) 177,252 263,601 284,705
v3.25.0.1
Restructuring Charges - Narrative (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 20, 2024
Jun. 14, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Restructuring and Related Activities [Abstract]          
Restructuring and related cost, number of positions eliminated, period percent 9.00% 11.00%      
Restructuring charges     $ 2,396 $ 6,848 $ 0
Severance expense     2,000 4,500  
Restructuring reserve, settled without cash       1,700  
Other employee benefits     $ 400 $ 600  
v3.25.0.1
Restructuring Charges - Schedule of Restructuring Liabilities (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Restructuring Reserve [Roll Forward]      
Beginning balance $ 0 $ 0  
Restructuring charges 2,396 6,848 $ 0
Payments (2,396) (6,848)  
Ending balance $ 0 $ 0 $ 0
v3.25.0.1
Related Party Transactions (Details)
$ in Millions
12 Months Ended
Dec. 31, 2024
USD ($)
board_member
company
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Board Member      
Related Party Transaction [Line Items]      
Board members with ownership in related parties | board_member 2    
Executive Officer      
Related Party Transaction [Line Items]      
Number of companies, board member with ownership interest | company 1    
Related Party      
Related Party Transaction [Line Items]      
Revenue $ 2.2 $ 1.5 $ 1.0
Accounts receivables due from related parties $ 0.8 $ 0.6