OLO Earnings Prediction
The chart below shows how OLO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, OLO sees a -0.31% change in stock price 10 days leading up to the earnings, and a -5.73% change 10 days following the report. On the earnings day itself, the stock moves by -0.96%. This data can give you a slight idea of what to expect for the next quarter's release.
OLO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
76.07M
20.74%
5.87%
Gross Margin
52.98%
-8.39%
-2.41%
Operating Margin
-6.74%
-42.20%
-21.45%
Net Margin
-0.83%
-96.68%
-83.60%
EPS
-0.00
-100.00%
-100.00%
No Data Available
OLO Earnings Analysis
Olo Inc Corporation (OLO.N) Earnings Conference Call
Positive
Gross Merchandise Volume Achievement: Olo powered $29 billion in gross merchandise volume in 2024, making it the second largest brand in North America if it were a restaurant.
Gross Payment Volume Surge: Gross payment volume more than doubled to $2.8 billion, up from over $1 billion in 2023.
Location Expansion Growth: Active locations increased to approximately 86,000, adding about 1,000 net new locations in Q4 and 6,000 in full year 2024.
Revenue Retention Metrics: Net revenue retention was 115% at year-end, with gross revenue retention exceeding 98%.
ARPU Growth Analysis: ARPU grew by 12% year-over-year, reaching approximately $878 in Q4.
Q4 Gross Profit Increase: Gross profit for Q4 was $45.2 million, an 11% increase year-over-year, with a gross margin of 59.5%.
Q4 Operating Income Increase: Operating income for Q4 was $11.5 million, up from $6.8 million a year ago, with an operating margin of 15.1%.
Revenue and ARPU Growth: Full year 2024 revenue was $284.9 million, a 25% increase, with ARPU also rising by 25%.
Olo Pay Revenue Growth: Olo Pay revenue was slightly above $70 million for the year, contributing to overall growth.
Cash Flow Performance: The company generated approximately $40 million in cash from operating activities and $27 million in free cash flow for the full year 2024.
Partnership Impact on Olo Pay: The partnership with FreedomPay is expected to accelerate Olo Pay's market deployment and enhance customer choice.
2025 Revenue and Income Guidance: Olo's 2025 guidance anticipates revenue growth to $333 million to $336 million, with non-GAAP operating income expected to be between $45.5 million and $47 million.
Negative
Revenue vs. Profit Growth: Total revenue growth of 21% in Q4 2024, while gross profit growth was only 11%, indicating a potential slowdown in profitability relative to revenue growth.
Gross Margin Challenges Ahead: Gross margin for Q4 2024 was 59.5%, with expectations of a 250 basis point compression in gross margins for full year 2025, suggesting challenges in maintaining profitability as the company scales its Olo Pay revenue.
Operating Expenses Outlook: Operating expenses are expected to grow in the mid-single-digits percent range for 2025, which could impact overall profitability if revenue growth does not keep pace.
Card-Present Revenue Delay: The company anticipates that card-present revenue will only begin to ramp in the second half of 2025, indicating a delay in realizing the full potential of this revenue stream.
Macroeconomic Challenges Ahead: Despite a strong performance in 2024, the company acknowledges ongoing macroeconomic uncertainties and rising costs in the restaurant industry, which could affect future growth and profitability.
Revenue Growth Limitations: The guidance for 2025 includes a significant reliance on existing projects for revenue growth, which may limit the potential for new business development and diversification.
OLO FAQs
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OLO Earning Call Sentiment
Olo Inc. (OLO) Q4 2024 Earnings Call Transcript
OLO.N
0%Positive
The earnings call summary shows strong financial performance, with significant revenue growth and improved operating margins. The Q&A highlights positive sentiment from analysts about the FreedomPay partnership and potential growth in payment volumes. Although there are risks like regulatory challenges and supply chain issues, the management's optimistic outlook on module adoption and AI integration supports a positive sentiment. The absence of a share repurchase program is a minor negative factor. Overall, the financial metrics and strategic insights suggest a positive stock price movement over the next two weeks.
