Core Viewpoint - Olo Inc. (OLO) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive outlook driven by rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Recent Performance and Projections - For the fiscal year ending December 2024, Olo is projected to earn $0.23 per share, reflecting a 53.3% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Olo has risen by 88.2%, indicating a significant upward revision in earnings expectations [8]. Zacks Rating System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - Olo's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Core Insights - Grubhub and Olo have expanded their partnership to integrate Grubhub with Olo Dispatch, allowing restaurants to outsource delivery for orders from their own websites and apps using Grubhub's network [1][2] - Olo Dispatch utilizes automated matching technology to select service providers based on optimal criteria, enabling faster and more cost-efficient order fulfillment for restaurants [2][3] - The integration aims to enhance delivery operations for restaurants, reduce costs, and improve customer satisfaction by providing more delivery service options [3] Company Overview - Grubhub is a leading U.S. food ordering and delivery marketplace, connecting customers with over 375,000 merchants across more than 4,000 U.S. cities [4] - Olo is a prominent restaurant technology provider that processes millions of orders daily, offering solutions that enhance operational efficiency and guest engagement for over 700 restaurant brands [5]

Core Viewpoint - Olo Inc. has demonstrated exceptional stock performance, with shares increasing over 86.7% in the past six months, significantly outperforming its sector and competitors [1][2]. Financial Performance - In Q3 2024, Olo's total revenues rose 24% year-over-year to $71.9 million, with platform revenues also increasing by 24% to $71 million [3]. - For Q4 2024, Olo anticipates net revenues between $72.5 million and $73 million, with full-year revenues expected to be in the range of $281.4 million to $281.9 million [12]. - The consensus estimate for Q4 2024 revenues is $72.87 million, reflecting a year-over-year decline of 15.67% [12]. - The Zacks Consensus Estimate for 2024 revenues is $281.71 million, indicating a year-over-year growth of 23.40% [13]. Customer Growth and Retention - Olo has expanded its active locations to approximately 85,000, marking a 10% year-over-year increase, and has added around 3,000 net new locations sequentially [5]. - The average revenue per unit (ARPU) grew 15% year-over-year to $850, indicating strong monetization of its customer base [6]. - Olo's dollar-based net revenue retention has remained above 120% for four consecutive quarters, showcasing robust customer retention [6]. Market Metrics - Gross merchandise volume (GMV) exceeded $26 billion for the year ended December 31, 2023, while gross payment volume (GPV) reached $1 billion during the same period [7]. Product Innovations - Olo has introduced several product innovations in 2024, including card-present payment processing for Olo Pay and enhancements to its Catering+ and Borderless passwordless guest checkout solutions [9][10]. - The company has strengthened its partnership with ezCater to automate catering menu management, improving operational efficiency for restaurants [10]. Strategic Positioning - Olo's open SaaS platform is tailored to meet the unique needs of restaurants, supporting the industry's digital transformation through its core product suites: Order, Pay, and Engage [8]. - The company has achieved significant growth in the enterprise segment with multi-suite deployments, including notable clients like Papa Gino's and Pizza Inn [11]. Earnings Outlook - The consensus estimate for Q4 2024 earnings is 7 cents per share, reflecting a 40% increase from the previous year [13]. - The consensus mark for earnings in 2024 is pegged at 23 cents per share, indicating a year-over-year growth of 53.33% [13]. Investment Sentiment - Olo currently holds a Zacks Rank 1 (Strong Buy), suggesting a favorable investment outlook [14].

Company Overview - Olo Inc. currently holds a Momentum Style Score of A, indicating strong momentum characteristics [3] - The company has a Zacks Rank of 1 (Strong Buy), suggesting a favorable outlook compared to the market [4][12] Price Performance - Olo's shares have increased by 11.85% over the past week, while the Zacks Internet - Software industry has declined by 3.22% during the same period [7] - Over the last quarter, Olo's shares rose by 31.58%, and they are up 37.53% over the past year, significantly outperforming the S&P 500, which moved 6.16% and 32.62% respectively [8] Trading Volume - The average 20-day trading volume for Olo is 1,713,819 shares, which serves as a bullish indicator when combined with rising stock prices [9] Earnings Estimates - In the past two months, three earnings estimates for Olo have been revised upwards, with the consensus estimate increasing from $0.21 to $0.23 [11] - For the next fiscal year, three estimates have also moved higher, with no downward revisions noted [11] Conclusion - Given the strong price performance, positive earnings revisions, and high momentum score, Olo Inc. is positioned as a promising investment opportunity [12]

Core Insights - Olo introduced a new approach to self-directed health and nervous system resilience at Slush 2024, featuring two new products: Olo Foundations and Olo AI Reflections [1][4][5] - The platform combines nature, sound, and somatic practices to provide immersive audio journeys that significantly reduce stress and enhance heart rate variability [2][7] Product Offerings - Olo Foundations is a 4-week program aimed at deepening users' understanding of the nervous system, guided by a somatic coach [4] - Olo AI Reflections is a beta feature that offers personalized, real-time guidance for somatic awareness and nervous system regulation, acting as a personal coach for users [5] Company Background - Founded by a somatic therapist and an award-winning music composer, Olo has over two decades of experience in exploring the intersection of nature, sound, and wellbeing [2][7] - The company provides a holistic ecosystem that includes workshops in major cities and retreat centers in Finland and Portugal, enhancing the user experience with specialized audio equipment [3][7]

Olo Inc. (OLO) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors ...

Olo Inc. (OLO) closed the last trading session at $6.43, gaining 28.3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $8.70 indicates a 35.3% upside potential.The mean estimate comprises five short-term price targets with a standard deviation of $0.84. While the lowest estimate of $8 indicates a 24.4% increase from the current price level, the most optimistic analyst expects the s ...

For the quarter ended September 2024, Olo Inc. (OLO) reported revenue of $71.85 million, up 24.3% over the same period last year. EPS came in at $0.06, compared to $0.04 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $71.07 million, representing a surprise of +1.11%. The company delivered an EPS surprise of +20.00%, with the consensus EPS estimate being $0.05.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ...

Olo Inc. (OLO) came out with quarterly earnings of $0.06 per share, beating the Zacks Consensus Estimate of $0.05 per share. This compares to earnings of $0.04 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 20%. A quarter ago, it was expected that this company would post earnings of $0.05 per share when it actually produced earnings of $0.05, delivering no surprise.Over the last four quarters, the company has surpassed consen ...

Financial Performance - Gross merchandise volume (GMV) reached over $26 billion and gross payment volume (GPV) reached $1 billion for the year ended December 31, 2023[104]. - Platform revenue for Q3 2024 was $70,999,000, up from $57,261,000 in Q3 2023, representing a growth of 24.1%[139]. - Total revenue for Q3 2024 reached $71,853,000, compared to $57,794,000 in Q3 2023, indicating an increase of 24.3%[139]. - Gross profit for Q3 2024 was $39,009,000, compared to $34,565,000 in Q3 2023, reflecting a growth of 13.3%[139]. - Total revenue for the nine months ended September 30, 2024, increased by $43.6 million, or 26.4%, to $208.9 million compared to $165.3 million for the same period in 2023[158]. - Gross profit increased by $13.6 million to $116.1 million for the nine months ended September 30, 2024, from $102.5 million for the same period in 2023, while gross margin decreased to 55.6% from 62.0%[164]. Customer and Market Growth - The platform currently handles more than 2 million orders per day, with over 85 million guests transacting on the platform in the last year[103]. - The customer base includes over 700 restaurant brands across approximately 85,000 active locations as of September 30, 2024[122]. - The company aims to drive new customer growth by targeting well-capitalized, fast-growing restaurant brands[122]. - Active locations increased to approximately 85,000 as of September 30, 2024, up from approximately 78,000 as of September 30, 2023[145]. - The restaurant industry has historically been one of the lowest-penetrated segments of on-demand digital commerce, with digital orders accounting for only 16% of total restaurant industry orders in 2023[105]. Expenses and Cost Management - Operating expenses for Q3 2024 totaled $47,528,000, down from $50,871,000 in Q3 2023, a decrease of 6.5%[139]. - Research and development expenses for Q3 2024 were $17,170,000, slightly down from $18,035,000 in Q3 2023, a decrease of 4.8%[139]. - General and administrative expenses decreased by $6.2 million, or 29.0%, to $15.1 million, accounting for 21.1% of total revenue[152]. - Sales and marketing expenses increased by $1.5 million, or 12.9%, to $12.8 million, which is 17.9% of total revenue[154]. - Total cost of revenue increased by $29.99 million, or 47.8%, to $92.75 million for the nine months ended September 30, 2024, compared to $62.76 million for the same period in 2023[161]. Profitability and Loss - The company reported a net loss of $3,635,000 for Q3 2024, compared to a net loss of $11,759,000 in Q3 2023, a reduction of 69.0%[139]. - Operating loss under GAAP for the nine months ended September 30, 2023, was $54.550 million, while non-GAAP operating income was $21.456 million[193]. - Non-GAAP free cash flow for the nine months ended September 30, 2023, was $20.148 million, compared to a negative $22.406 million in the same period of the previous year[194]. Cash Flow and Liquidity - Net cash provided by operating activities was $30.39 million for the nine months ended September 30, 2024, compared to a net cash used of $12.38 million for the same period in 2023[178]. - As of September 30, 2024, the company had $391.9 million in cash and cash equivalents and investments, sufficient to support working capital and capital expenditure requirements for at least the next twelve months[173]. - The company had no outstanding borrowings under its credit facility as of September 30, 2024[201]. - Cash used in investing activities was $18.4 million, primarily due to $8.3 million of net purchases of investments and $10.0 million for the development of capitalized internal-use software[182]. Strategic Initiatives - The company plans to invest in expanding platform functionality, particularly in payments, data analytics, and on-premise dining[123]. - The company plans to expand its ecosystem of third-party partners to enhance customer support and broaden its market reach[124]. - Future operating expenses are expected to increase due to initiatives aimed at expanding partnerships and market opportunities[126]. - The company anticipates that its platform can be applied to other commerce verticals beyond the restaurant industry, indicating potential for market expansion[126]. Risk Management - The company does not expect significant impacts from a hypothetical 10% change in foreign currency exchange rates on its financial statements[203]. - The company is exposed to market risks primarily due to potential changes in interest rates, but does not engage in trading or speculative investments[199]. - Inflation has remained high, impacting transportation and labor costs, but the company does not believe it has materially affected its financial condition[204]. - The company’s revenue and costs are generally denominated in U.S. dollars, minimizing foreign currency exchange risk[203]. Internal Controls and Governance - There were no changes in internal control over financial reporting that materially affected the company during the quarter ended September 30, 2024[207]. - The company’s management evaluated the effectiveness of its disclosure controls and concluded they were effective as of September 30, 2024[206]. - The company acknowledges inherent limitations in its control systems, which may not detect all errors or fraud[208].