Olo Inc. filed SEC Form 8-K: Costs Associated with Exit or Disposal Activities, Regulation FD Disclosure, Financial Statements and Exhibits

On September 20, 2024, Olo Inc. (“Olo” or the “Company”) announced a reduction of its workforce by approximately 9% to better focus the Company’s investments and to support the Company’s long-term growth objectives. Olo intends to strategically reinvest some savings from this reduction in force into future growth initiatives and will continue to hire for roles critical to those initiatives.

 

Olo estimates that it will incur charges of approximately $2.2 million to $2.6 million in connection with the reduction of its workforce, which is expected to be incurred in the third quarter of fiscal year 2024. These charges consist primarily of $2.1 million to $2.3 million in charges related to cash expenditures for severance payments and payroll taxes. Of the aggregate amount of charges that the Company estimates it will incur in connection with the reduction of its workforce, the Company expects that approximately $0.2 million to $0.3 million related to employee benefits will be in future cash expenditures.

 

The estimated charges are based on certain assumptions and actual amounts may differ materially from such estimates.

 On September 20, 2024, the Company published a memo to employees from the Company’s founder and chief executive officer, Noah H. Glass, regarding the workforce reduction. A copy of the memo is attached as Exhibit 99.1 to this Current Report on Form 8-K.

 

As of September 20, 2024, the Company reiterates that its third quarter 2024 and fiscal year 2024 guidance ranges for revenue and Non-GAAP operating income are in line with the outlook provided by the Company on July 31, 2024. For more information on these guidance ranges, refer to the press release, included as an exhibit to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on July 31, 2024. The Company notes that the guidance ranges shared on July 31, 2024, and reiterated here, do not reflect the financial impact of the reduction of workforce announcement discussed above.

Safe Harbor for Forward-Looking Statements

 

This Form 8-K contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. All statements other than statements of historical fact are forward-looking statements. These forward-looking statements include, but are not limited to, Olo’s financial guidance and estimates of costs related to the workforce reduction. Olo’s actual results, performance, or achievements may differ materially from those expressed or implied by these forward-looking statements. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by Olo and its management, are inherently uncertain. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would,” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. These forward-looking statements speak only as of the date of this report and are subject to risks, uncertainties, and assumptions, including, among other things, the risk that the costs and charges relating to the workforce reduction may be greater than anticipated, the risk this workforce reduction may adversely affect Olo’s internal programs and Olo’s ability to recruit and retain skilled and motivated personnel, and may be distracting to employees and management, the risk that these changes could negatively impact Olo’s business operations, reputation, or ability to serve its customers, the risk that this workforce reduction may not generate its intended benefits as quickly as anticipated or at all, and other general market, political, economic, and business uncertainty. Additionally, these forward-looking statements, particularly Olo’s financial guidance, involve risks, uncertainties, and assumptions, including those related to Olo’s customers’ spending decisions and guest ordering behavior. Undue reliance should not be placed on the forward-looking statements in this report. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results predicted or implied by these forward-looking statements. Significant variations from the assumptions underlying the forward-looking statements could cause Olo’s actual results to vary, and the impact could be significant. Olo assumes no obligation to, and does not currently intend to, update any such forward-looking statements, except as required by applicable law.