Olo shares surge 9.9% on strong revenue and upbeat guidance

Published 26/02/2025, 00:06
Olo shares surge 9.9% on strong revenue and upbeat guidance

NEW YORK - Olo Inc. (NYSE:OLO), a restaurant technology provider, saw its shares jump 9.9% after reporting fourth quarter earnings that met expectations and provided an optimistic outlook for 2025.

The company reported adjusted earnings per share of $0.06 for the fourth quarter, in line with analyst estimates. Revenue came in at $76.1 million, surpassing the consensus forecast of $72.79 million and representing a 21% increase YoY.

Olo’s strong performance was driven by continued adoption of its platform, with average revenue per unit rising 12% YoY to $878. The company also saw its active locations grow 8% YoY to approximately 86,000 by the end of 2024.

Looking ahead, Olo provided guidance above analyst expectations. For the first quarter of 2025, the company projects revenue between $77.2 million and $77.7 million, exceeding the consensus estimate of $76.66 million. For the full year 2025, Olo anticipates revenue in the range of $333 million to $336 million, topping analyst forecasts of $328.3 million.

"Team Olo put together a fantastic 2024 that included strong financial performance, new and expansion deployments with marquee restaurant brands, and platform reliability and innovation," said Noah Glass, Olo’s Founder and CEO.

The company highlighted several key business developments, including new enterprise brand deployments and partnerships. Notably, Olo announced a partnership with FreedomPay to integrate Olo Pay card-present functionality, potentially opening up access to over $100 billion in gross payment volume within its existing customer base.

Olo’s dollar-based net revenue retention rate remained strong at approximately 115%, indicating continued growth from existing customers. The company ended the year with a robust cash position of $403.1 million in cash, cash equivalents, and investments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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