OLO Stock Overview
Olo Inc. provides software-as-a-service platform for multi-location restaurants in the United States.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$25.37|
|52 Week High||US$49.00|
|52 Week Low||US$22.88|
|1 Month Change||-6.80%|
|3 Month Change||-33.92%|
|1 Year Change||n/a|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||-26.99%|
Recent News & Updates
Olo: Pioneering On-Demand Commerce For Restaurants
Olo is a first mover and leader in the restaurant on-demand commerce market with solutions that provide meaningful value to customers. The company's revenue growth is normalizing after a year boosted by COVID-19. Nonetheless, I believe Olo will continue growing regardless of COVID or no COVID. Profitability is not something I'm worried about in this growth stage. Olo has a recurring revenue model, a high gross margin (80%), and is already free cash flow positive. Customer concentration and potential competition from bigger players like Square, PayPal, Lightspeed, and Toast are watch out items. Olo's management gives me confidence in its ability to execute and take advantage of the market opportunity over time.
Olo Is Cheap And Makes The Impossible To Deliver Your Food
Founded in 2005, Olo offers a platform that powers restaurant’s commerce operations while enhancing relationships with customers. The company is expected to increase its product offering, which means that more orders will most likely be fulfilled through the company’s platform. The fact that Olo has significant amount of cash means that the management will be able to finance the design of new software. The company currently operates with more than 400 brands and is present at more than 64,000 locations. I believe that it will be easy to grow because clients will most likely grow. I expect significant sales growth from 2021 to 2023. My assumptions include sales growth of 35% from 2021 to 2025 and 30%-20% from 2026 to 2030. With a constant CFO/Sales of 17% and growing capital expenditures of $5-$14 million, the free cash flow would grow from more than $25 million in 2021 to more than $200 million in 2030.
|OLO||US Software||US Market|
Return vs Industry: Insufficient data to determine how OLO performed against the US Software industry.
Return vs Market: Insufficient data to determine how OLO performed against the US Market.
|OLO Average Weekly Movement||6.3%|
|Software Industry Average Movement||7.4%|
|Market Average Movement||6.0%|
|10% most volatile stocks in US Market||15.0%|
|10% least volatile stocks in US Market||2.3%|
Stable Share Price: OLO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: OLO's weekly volatility (6%) has been stable over the past year.
About the Company
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 Ordering, an on-demand commerce solution that enables consumers to order directly from and pay restaurants via mobile, web, kiosk, voice, and other digital channels; Dispatch, a fulfillment solution, which enables restaurants to offer, manage, and expand direct delivery; and Rails, an aggregator and channel management solution, which allows restaurants to control and syndicate menu, pricing, location data, and availability.
Olo Fundamentals Summary
|OLO fundamental statistics|
Is OLO overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|OLO income statement (TTM)|
|Cost of Revenue||US$27.66m|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
|Earnings per share (EPS)||-0.27|
|Net Profit Margin||-28.73%|
How did OLO perform over the long term?See historical performance and comparison
Is Olo undervalued compared to its fair value and its price relative to the market?
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: OLO ($25.37) is trading above our estimate of fair value ($0.85)
Significantly Below Fair Value: OLO is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: OLO is unprofitable, so we can't compare its PE Ratio to the US Software industry average.
PE vs Market: OLO is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate OLO's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: OLO is overvalued based on its PB Ratio (6.6x) compared to the US Software industry average (6.4x).
How is Olo forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: OLO is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: OLO is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: OLO is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: OLO's revenue (27% per year) is forecast to grow faster than the US market (10.1% per year).
High Growth Revenue: OLO's revenue (27% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: OLO's Return on Equity is forecast to be low in 3 years time (5.8%).
How has Olo performed over the past 5 years?
Last years earnings growth
Earnings and Revenue History
Quality Earnings: OLO is currently unprofitable.
Growing Profit Margin: OLO is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: Insufficient data to determine if OLO's year-on-year earnings growth rate was positive over the past 5 years.
Accelerating Growth: Unable to compare OLO's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: OLO is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (20.5%).
Return on Equity
High ROE: OLO has a negative Return on Equity (-7.4%), as it is currently unprofitable.
How is Olo's financial position?
Financial Position Analysis
Short Term Liabilities: OLO's short term assets ($646.0M) exceed its short term liabilities ($66.4M).
Long Term Liabilities: OLO's short term assets ($646.0M) exceed its long term liabilities ($4.5M).
Debt to Equity History and Analysis
Debt Level: OLO is debt free.
Reducing Debt: OLO had no debt 5 years ago.
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable OLO has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: OLO is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 80.6% per year.
What is Olo current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate OLO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate OLO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if OLO's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if OLO's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of OLO's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Noah Glass (40 yo)
Mr. Noah Herbert Glass is Founder and Chief Executive Officer at Olo Inc and has been its Director since 2005. He is a Founder Partner at Founder Collective since July 2019. He was International Expansion...
CEO Compensation Analysis
Compensation vs Market: Noah's total compensation ($USD1.49M) is below average for companies of similar size in the US market ($USD5.21M).
Compensation vs Earnings: Insufficient data to compare Noah's compensation with company performance.
Experienced Management: OLO's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Experienced Board: OLO's board of directors are considered experienced (7.9 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: OLO only recently listed within the past 12 months.
Olo Inc.'s employee growth, exchange listings and data sources
- Name: Olo Inc.
- Ticker: OLO
- Exchange: NYSE
- Founded: 2005
- Industry: Application Software
- Sector: Software
- Market Cap: US$3.820b
- Shares outstanding: 151.71m
- Website: https://www.olo.com
Number of Employees
- Olo Inc.
- One World Trade Center
- 82nd Floor
- New York
- New York
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/11/30 00:27|
|End of Day Share Price||2021/11/29 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.