Olo Stock Soars 87% in 6 Months: Should You Buy It Right Now?

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$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$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$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].