Olo is expected to be one of the biggest beneficiaries of the online food delivery boom when it finally goes public this week.
Olo is a New York City-based business-to-business (B2B) software-as-a-service (SaaS) company that develops digital ordering and delivery programs for restaurants. In their own words:
“Think of Olo as the interface between restaurants and the on-demand world. We connect the dots for happy customers outside the four walls.”
The company filed to go public on February 19 and plans to raise as much as $306 million in an IPO through the sale of 18 million shares of its Class A common stock, giving it a valuation of $3 billion.
When can I buy Olo, Inc stock?
Olo, Inc is expected to go public via an initial public offering (IPO) on March 17, 2021.
What is Olo’s IPO price?
Olo is expected to go public at between $16 and $18 per share with a valuation of roughly $3 billion.
What is Olo’s ticker symbol?
Olo will trade under the ticker symbol ‘OLO’ on the New York Stock Exchange (NYSE).
The numbers behind Olo’s IPO
Olo has experienced rapid growth in a highly capital-efficient manner. Since its inception 15 years ago, it has raised less than $100 million of primary investment capital and as of December 31, 2020, it had cash and cash equivalents of $75.8 million with no outstanding debt. During the years ended December 31, 2018, 2019, and 2020, Olo also generated revenue of $31.8 million, $50.7 million, and $98.4 million, respectively, representing year-over-year growth of 59.4% and 94.2%.
It doesn’t stop there either, with its S-1 showing up even more impressive stats::
- Its net revenue retention is 120%+.
- Its gross margin is 81% while its operating margin is 16%.
- It has a $14.6 billion gross merchandising volume.
- There are 1.8 million orders on its service per day.
- It has 64,000 restaurants as partners as well as over 400 brand partners.
Should I buy Olo stock?
In what has become a rarity in IPOing companies of late, Olo is actually profitable in a booming, high-growth market. It is not without its risks if you consider the loss-making nature of the food-delivery industry as a whole. Luckily though, Olo should be able to avoid overexposure to this problem as it expands its client base, providing software services to as many chains as possible and eventually expanding outside of New York.
As usual with MyWallSt though, we err on the side of caution when it comes to newly-public companies, and like to wait at least 2 quarters before investing so we can get a deeper insight into the company’s financials and allow post-IPO volatility to settle down.
For the full picture, you can access Olo’s complete S-1 prospectus here.
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MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here.