Analysts Expect Breakeven For Olo Inc. (NYSE:OLO) Before Long

We feel now is a pretty good time to analyse Olo Inc.'s (NYSE:OLO) business as it appears the company may be on the cusp of a considerable accomplishment. Olo Inc. operates an open SaaS platform for restaurants in the United States. The US$1.0b market-cap company announced a latest loss of US$897k on 31 December 2024 for its most recent financial year result. Many investors are wondering about the rate at which Olo will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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Consensus from 7 of the American Software analysts is that Olo is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$7.8m in 2026. Therefore, the company is expected to breakeven just over a year from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 110%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Olo given that this is a high-level summary, however, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Check out our latest analysis for Olo

One thing we’d like to point out is that Olo has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Olo to cover in one brief article, but the key fundamentals for the company can all be found in one place – Olo's company page on Simply Wall St. We've also put together a list of essential aspects you should look at:

1. Valuation: What is Olo worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Olo is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Olo’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.