Olo Inc
NYSE:OLO
Olo Inc
In the bustling landscape of digital ordering, Olo Inc. emerges as a pivotal player revolutionizing how restaurants engage with customers. Founded in 2005, Olo originally embarked on a mission to streamline the food ordering process through mobile text messaging. As technology evolved and consumer preferences shifted, Olo transformed into a comprehensive SaaS platform that connects restaurants directly to their patrons. Through its extensive suite of products, Olo empowers eateries to manage digital ordering and delivery, optimize customer interactions, and integrate with service providers. The company offers solutions ranging from direct-to-consumer branded online ordering to sophisticated delivery support and integration with third-party marketplaces, enabling seamless operations and a unified customer experience.
At the heart of Olo’s business model is its subscription-based service framework. Restaurants, both large chains and independent operators, engage Olo to facilitate a seamless and efficient digital presence without the overhead of in-house technology development. This approach allows Olo to generate steady revenue through subscriptions while enhancing customers' reach and engagement via digital orders. Additionally, Olo benefits from transaction-based fees, capitalizing on the volume of orders processed through its platform. As restaurants increasingly adapt to the digital age, Olo stands as a crucial partner, seamlessly blending into the operational fabric of its clients and proving its indispensability in a rapidly changing industry.
In the bustling landscape of digital ordering, Olo Inc. emerges as a pivotal player revolutionizing how restaurants engage with customers. Founded in 2005, Olo originally embarked on a mission to streamline the food ordering process through mobile text messaging. As technology evolved and consumer preferences shifted, Olo transformed into a comprehensive SaaS platform that connects restaurants directly to their patrons. Through its extensive suite of products, Olo empowers eateries to manage digital ordering and delivery, optimize customer interactions, and integrate with service providers. The company offers solutions ranging from direct-to-consumer branded online ordering to sophisticated delivery support and integration with third-party marketplaces, enabling seamless operations and a unified customer experience.
At the heart of Olo’s business model is its subscription-based service framework. Restaurants, both large chains and independent operators, engage Olo to facilitate a seamless and efficient digital presence without the overhead of in-house technology development. This approach allows Olo to generate steady revenue through subscriptions while enhancing customers' reach and engagement via digital orders. Additionally, Olo benefits from transaction-based fees, capitalizing on the volume of orders processed through its platform. As restaurants increasingly adapt to the digital age, Olo stands as a crucial partner, seamlessly blending into the operational fabric of its clients and proving its indispensability in a rapidly changing industry.
Revenue Beat: Olo reported Q1 revenue of $80.7 million, exceeding the high end of its guidance range and growing 21% year-over-year.
Location Growth: The company added approximately 2,000 net new active locations in Q1, bringing its total to about 88,000 locations.
Profitability: Net income for Q1 was $11.8 million ($0.07 per share), with GAAP profitability also achieved at $0.01 per share.
Gross Margin: Q1 gross margin was 60.9%, boosted by a $1 million one-time benefit, but management expects margins to decrease by 250–275 bps over the year.
Guidance Raised: Updated full-year 2025 revenue guidance is now $338.5–$340 million, including the impact of new deals with Chipotle and a major enterprise customer.
Strategic Wins: Olo signed a multi-module Catering+ pilot with Chipotle and a full deployment of Olo Pay card-present with an existing enterprise customer.
Product Momentum: Olo launched new features like Olo Guest Intelligence and saw increased adoption of its Borderless checkout, now used by about 450 brands.
