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1. Company Snapshot

1.a. Company Description

Olo Inc.provides software-as-a-service platform for multi-location restaurants in the United States.The company's platform enables on-demand commerce operations, which cover digital ordering and delivery through online and mobile ordering modules.


Its modules include Order Management, an on-demand digital commerce and channel management solutions that enables consumers to order directly from and pay restaurants via mobile, web, kiosk, voice, and other digital channels; and Delivery Enablement, a fulfillment network, as well as a network aggregator and channel management solution, which enables restaurants to offer, manage, and expand direct delivery, as well as allows restaurants to control and syndicate menu, pricing, location data, and availability, while directly integrating and optimizing orders from third-parties into the restaurants' point-of-sale and systems.The company also provides Customer Engagement solution, a suite of restaurant-centric marketing and sentiment solutions that enables restaurants to collect, analyze, and act on guest data; Front-of-House solution, which enables restaurants to streamline the queue orders from multiple sales channels; and Payment solution, a payment platform that offers fraud prevention that results in enhanced authorization rates for valid transactions.The company was formerly known as Mobo Systems, Inc.


and changed its name to Olo Inc.in January 2020.Olo Inc.


was incorporated in 2005 and is headquartered in New York, New York.

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1.b. Last Insights on OLO

The recent 3-month performance of Olo Inc. was driven by several positive factors. The company's Q1 2025 earnings and revenue beat expectations, with a quarterly earnings of $0.07 per share, surpassing the Zacks Consensus Estimate of $0.06 per share. Additionally, Olo's revenue growth was driven by its expanded partnership with Red Lobster, which returned to the Olo platform with a renewed engagement. This partnership is expected to enhance Olo's capabilities, cost-effectiveness, and ability to keep pace with evolving technology trends. Furthermore, Olo has entered into a definitive agreement to be acquired by Thoma Bravo, a leading software investment firm, in an all-cash transaction valuing the company at approximately $2.0 billion in equity value.

1.c. Company Highlights

2. Olo Inc. Delivers Strong Q1 2025 Results with Revenue Growth and Margin Expansion

Olo Inc. reported a solid financial performance for Q1 2025, with total revenue reaching $80.7 million, a 21% year-over-year increase. Non-GAAP operating income came in at $11.5 million, showcasing the company's ability to maintain profitability while scaling operations. Platform revenue, the core driver of Olo's business, grew 20% to $79.2 million, fueled by the addition of 2,000 net new active locations, bringing the total to 88,000. Average revenue per user (ARPU) also improved 12% to $911, reflecting strong demand for Olo's solutions. Gross profit rose 18% to $49.2 million, with a gross margin of 60.9%, benefiting from higher non-pay revenue and improved margins in Olo Pay. Net income was $11.8 million, or $0.07 per share, beating analyst estimates of $0.06 per share.

Publication Date: May -10

📋 Highlights
  • Strong Revenue Growth: Total revenue reached $80.7 million, up 21% year-over-year.
  • Profitability Improvement: Non-GAAP operating income was $11.5 million, with net income of $11.8 million.
  • Platform Revenue Growth: Platform revenue rose 20% to $79.2 million, driven by 88,000 active locations.
  • Gross Margin Expansion: Gross margin improved to 60.9%, with gross profit increasing 18% to $49.2 million.

Product Innovation and Customer Wins

Olo highlighted several key customer signings and product innovations during the quarter. Notably, the company secured a pilot agreement with Chipotle for its Catering Plus solution, marking a significant win with a top 25 brand. Additionally, Olo deployed its Olo Pay card-present solution with an existing enterprise customer, a milestone in its payment strategy. The company also saw early success with its 2025 priorities, including the scaling of Catering Plus and the expansion of Olo Pay. New deployments included Ben & Jerry's, Gong Cha, and Pilot Travel Centers, while expansions involved El Pollo Loco, Waffle House, and First Watch. Olo now has over 70 "flywheel" customers using its Order, Pay, and Engage solutions, demonstrating strong adoption of its integrated platform.

Valuation and Future Outlook

Despite the strong financial performance, Olo's valuation metrics remain elevated. The stock currently trades at a price-to-sales (P/S) ratio of 5.07, reflecting investor confidence in the company's growth prospects. However, the P/B ratio of 2.08 and EV/EBITDA of 80.18 indicate a premium valuation. Management provided guidance for Q2 2025, with revenue expected to range between $82-$82.5 million and non-GAAP operating income of $11.5-$11.8 million. For the full year, Olo expects revenue of $338.5-$340 million and non-GAAP operating income of $48.6-$49.8 million. Analysts expect revenue growth to slow to 17.7% next year, but Olo's strong gross revenue retention of 98% and net revenue retention of 111% suggest a resilient customer base. CEO Noah Glass emphasized the company's position as a guest data platform, with Olo Pay card-present unlocking 82% of non-digital transactions. The recent addition of Parrish Chapman as Chief Sales Officer is expected to further accelerate bookings and customer relationships.

3. NewsRoom

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Shareholder Alert: The Ademi Firm Continues to Investigate Whether Olo Inc. is Obtaining a Fair Price for its Public Shareholders

Sep -15

Source: businesswire.com

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OLO SHAREHOLDER ALERT: Kaskela Law LLC Announces Investigation into Price Adequacy of Olo Inc. (NYSE: OLO) Shareholder Buyout - Does $10.25 Per Share Undervalue OLO Shares?

Aug -29

Source: businesswire.com

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OLO Investors Have the Opportunity to Join Investigation of Olo Inc. with the Schall Law Firm

Aug -21

Source: prnewswire.com

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OLO Investors Have the Opportunity to Join Investigation of Olo Inc. with the Schall Law Firm

Aug -20

Source: businesswire.com

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Shareholder Alert: The Ademi Firm Investigates Whether Olo Inc. Is Obtaining a Fair Price for Its Public Shareholders

Aug -08

Source: businesswire.com

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Olo (OLO) Q2 Revenue Jumps 22%

Aug -05

Source: fool.com

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Olo (OLO) Reports Q2 Earnings: What Key Metrics Have to Say

Aug -05

Source: zacks.com

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Olo Inc. (OLO) Q2 Earnings Lag Estimates

Aug -04

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.69%)

6. Segments

Platform

Expected Growth: 11.7%

Olo Inc.'s platform growth of 11.7% is driven by increasing adoption of digital ordering and delivery solutions among restaurants, expansion into new markets, strategic partnerships, and investments in technology and customer experience. Additionally, the rise of ghost kitchens, meal kits, and online food marketplaces contribute to the growth, as restaurants leverage Olo's platform to stay competitive in the rapidly evolving food tech landscape.

Professional Services and Other

Expected Growth: 10.98%

Olo Inc.'s Professional Services and Other segment growth of 10.98% is driven by increasing demand for digital transformation, expansion of existing client relationships, and growth in implementation services. Additionally, the rise of ghost kitchens and virtual restaurants is fueling demand for Olo's technology and services, contributing to the segment's rapid growth.

7. Detailed Products

Rails

A cloud-based platform that enables restaurants to manage their digital presence, including online ordering, delivery, and curbside pickup.

Dispatch

A delivery management system that helps restaurants optimize their delivery operations, including driver management and route optimization.

Exchangely

A platform that enables restaurants to manage their third-party delivery marketplaces, including integrations with Uber Eats, Grubhub, and DoorDash.

Olo Pay

A payment processing platform that enables restaurants to manage their online ordering and payment processing in a single platform.

Olo Live

A data analytics platform that provides restaurants with real-time insights into their online ordering and delivery operations.

8. Olo Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Olo Inc. operates in the online food ordering and delivery market, which has low substitutes. However, the rise of ghost kitchens and meal kit delivery services could pose a threat to Olo's business model.

Bargaining Power Of Customers

Olo Inc. has a diverse customer base of restaurants and consumers, which reduces the bargaining power of individual customers. Additionally, the company's technology platform and services are highly customized, making it difficult for customers to switch to alternative providers.

Bargaining Power Of Suppliers

Olo Inc. has a large network of restaurant partners, which reduces the bargaining power of individual suppliers. The company's technology platform and services are also highly customized, making it difficult for suppliers to negotiate better terms.

Threat Of New Entrants

The online food ordering and delivery market is highly competitive, and new entrants can easily enter the market with a similar business model. However, Olo Inc.'s established brand, technology platform, and network of restaurant partners create barriers to entry for new entrants.

Intensity Of Rivalry

The online food ordering and delivery market is highly competitive, with many established players competing for market share. Olo Inc. faces intense competition from companies like Grubhub, Uber Eats, and DoorDash, which could lead to pricing pressure and reduced margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 2.81%
Debt Cost 3.95%
Equity Weight 97.19%
Equity Cost 10.40%
WACC 10.22%
Leverage 2.89%

11. Quality Control: Olo Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Olo

A-Score: 5.4/10

Value: 3.5

Growth: 8.3

Quality: 5.2

Yield: 0.0

Momentum: 9.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
WM Technology

A-Score: 4.5/10

Value: 7.5

Growth: 3.0

Quality: 7.0

Yield: 0.0

Momentum: 8.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
ShotSpotter

A-Score: 4.1/10

Value: 5.3

Growth: 5.8

Quality: 4.4

Yield: 0.0

Momentum: 6.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
PagerDuty

A-Score: 3.8/10

Value: 3.9

Growth: 7.8

Quality: 3.5

Yield: 0.0

Momentum: 3.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Bumble

A-Score: 3.7/10

Value: 9.2

Growth: 4.0

Quality: 3.4

Yield: 0.0

Momentum: 3.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Jamf

A-Score: 3.3/10

Value: 4.2

Growth: 5.8

Quality: 4.8

Yield: 0.0

Momentum: 0.5

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

10.26$

Current Price

10.26$

Potential

-0.00%

Expected Cash-Flows