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OLO

OloNYSE:OLO Stock Report

Market Cap

US$3.7b

7D

-1.3%

1Y

n/a

Updated

01 Dec, 2021

Data

Company Financials +
OLO fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance0/6
Financial Health6/6
Dividends0/6

OLO Stock Overview

Olo Inc. provides software-as-a-service platform for multi-location restaurants in the United States.

Olo Competitors

Accenture

NYSE:ACN

US$231.1b

Price History & Performance

Summary of all time highs, changes and price drops for Olo
Historical stock prices
Current Share PriceUS$24.56
52 Week HighUS$49.00
52 Week LowUS$22.88
Beta0
1 Month Change-9.77%
3 Month Change-33.60%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO-29.32%

Recent News & Updates

Oct 22

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.

Sep 02

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.

Shareholder Returns

OLOUS SoftwareUS Market
7D-1.3%-0.4%-0.9%
1Yn/a36.8%23.3%

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.

Price Volatility

Is OLO's price volatile compared to industry and market?
OLO volatility
OLO Average Weekly Movement6.2%
Software Industry Average Movement7.4%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

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

FoundedEmployeesCEOWebsite
2005433Noah Glasshttps://www.olo.com

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

How do Olo's earnings and revenue compare to its market cap?
OLO fundamental statistics
Market CapUS$3.73b
Earnings (TTM)-US$40.22m
Revenue (TTM)US$139.96m

26.6x

P/S Ratio

-92.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OLO income statement (TTM)
RevenueUS$139.96m
Cost of RevenueUS$27.66m
Gross ProfitUS$112.29m
ExpensesUS$152.51m
Earnings-US$40.22m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.27
Gross Margin80.23%
Net Profit Margin-28.73%
Debt/Equity Ratio0.0%

How did OLO perform over the long term?

See historical performance and comparison

Valuation

Is Olo undervalued compared to its fair value and its price relative to the market?

6.39x

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).


Future Growth

How is Olo forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

62.2%

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%).


Past Performance

How has Olo performed over the past 5 years?

-1,806.0%

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.


Financial Health

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.


Balance Sheet


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.


Dividend

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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Noah Glass (40 yo)

no data

Tenure

US$1,487,882

Compensation

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.


Leadership Team

Experienced Management: OLO's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: OLO's board of directors are considered experienced (7.9 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: OLO only recently listed within the past 12 months.


Top Shareholders

Company Information

Olo Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Olo Inc.
  • Ticker: OLO
  • Exchange: NYSE
  • Founded: 2005
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$3.726b
  • Shares outstanding: 151.71m
  • Website: https://www.olo.com

Number of Employees


Location

  • Olo Inc.
  • One World Trade Center
  • 82nd Floor
  • New York
  • New York
  • 10007
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/01 00:09
End of Day Share Price2021/11/30 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.