Revenues in 2018-2020
Invest in IPO Olo
Olo has developed a platform for restaurant brands that allows customers to place orders directly into the restaurant through all order origination points – from a brand’s own website or app, third party marketplaces, social media platforms, smart speakers, and home assistants. It also provides restaurants with order analytics and other services. Olo platform currently handles nearly 2 million orders per day. Olo’s customers include major publicly traded and the fastest growing private restaurant brands such as Chili’s, Wingstop, Shake Shack, Five Guys, and sweetgreen. Olo has approximately 400 brand customers representing over 64,000 active locations.
Restaurant brands rely on Olo to increase their digital and in-store sales, maximize profitability, establish and maintain direct consumer relationships, and collect, protect, and leverage valuable consumer data. Olo’s well-established platform has led many of the major publicly traded and top 50 fastest growing private restaurant brands in the United States to work with Olo and has been a factor in the company’s high gross brand retention rate. Olo was founded in 2005 in New York.
The $1.6 trillion food industry is one of the largest consumer markets in the United States. According to the National Restaurant Association, restaurants accounted for $863 billion of that spend in 2019, surpassing grocery in aggregate consumer spending, before dropping to $659 billion in 2020 as a result of COVID-19. However, consumer spending on restaurants is expected to rebound to $1.1 trillion by 2024 according to analysis by The Freedonia Group.
Consumers today expect more on-demand convenience and personalization from restaurants, particularly through digital channels, but many restaurants lack the in-house infrastructure and expertise to satisfy this increasing demand in a cost-effective manner. Olo provides restaurants with a business-to-business-to-consumer, enterprise-grade, open SaaS platform to manage their complex digital businesses and enable fast and more personalized experiences for their customers.
The COVID-19 pandemic could materially adversely affect Olo’s business, financial condition, and results of operations.
Olo expects fluctuations in financial results, making it difficult to project future results, and if it fails to meet the expectations of securities analysts or investors with respect to results of operations, its stock price could decline.
The company’s business depends on customers increasing their use of Olo’s platform, and any loss of customers or decline in their use of Olo’s platform could materially and adversely affect results of operations and financial condition.
Olo has raised a total of $81.3M in funding over 6 rounds from 9 institutional investors, including Tiger Global Management, PayPal Ventures and RRE Ventures.
Olo nearly doubled the gross merchandise value, or GMV, which it defines as the gross value of orders processed through the platform, in each of the last five years and reached nearly $14.6 billion in GMV. The company booked $98M in revenue in 2020. Gross margin is at a high level of 81%. The company is enjoying rapid revenue growth of 94% YoY in 2020. Olo demonstrated positive cash flows from operating activities in 2020. The company has a very loyal customer base. Its dollar-based net revenue retention, which compares revenue from the same set of active customers in one period to the prior year period, was above 120% for each quarter since 2018.
Olo can be compared with other high-growth B2B software companies, like BigCommerce, which is currently trading at 27x sales with revenue growth of 55% and gross margin of 78%. The company is expected to become public on Mar 17. This investment idea has a medium potential return of up to 40% due to market volatility in technology sector.
2-3 weeks before the start of the company publishes information about the opening of trading: financial statements for 3 years, a description of the company's business, plans for the future, as well as the risks that management sees in their own business. We analyze such offers and publish the best ones. Investors apply for deposits. Before the deadline for applications, you can change the request or cancel it.
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IN THE PROFIT FROM THE FIRST DAY
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