Olo’s first quarter results were marked by continued customer growth and operational progress, prompting a positive market response. Management attributed the quarter’s performance to strong deployment activity, increased adoption of its core modules, and successful upselling of new products like Catering Plus and Olo Pay. CEO Noah Glass highlighted that the company added approximately 2,000 net new locations and achieved double-digit growth in average revenue per user, driven by expanded use of its platform among both enterprise and emerging restaurant brands. Management also credited healthy order volumes within the limited service segment for supporting top-line growth and noted that gross revenue retention improved sequentially.
Is now the time to buy OLO? Find out in our full research report (it’s free).
Olo (OLO) Q1 CY2025 Highlights:
- Revenue: $80.68 million vs analyst estimates of $77.47 million (21.3% year-on-year growth, 4.1% beat)
- Adjusted EPS: $0.07 vs analyst estimates of $0.06 (in line)
- Adjusted Operating Income: $11.53 million vs analyst estimates of $8.66 million (14.3% margin, 33.1% beat)
- The company lifted its revenue guidance for the full year to $339.3 million at the midpoint from $334.5 million, a 1.4% increase
- Operating Margin: -3%, up from -10.8% in the same quarter last year
- Net Revenue Retention Rate: 111%, down from 115% in the previous quarter
- Billings: $82.76 million at quarter end, up 22.2% year on year
- Market Capitalization: $1.44 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Olo’s Q1 Earnings Call
- Connor Passarella (Truist Securities) asked about the Chipotle Catering Plus pilot and its role in winning top brands. CEO Noah Glass explained the multi-module approach and its potential to expand within large enterprise customers.
- Connor Passarella (Truist Securities) inquired about gross margin impacts from Olo Pay and potential one-time effects. CFO Peter Benevides clarified the composition of the $1 million benefit and noted future margins would depend on product mix.
- Mike Richards (RBC Capital Markets) questioned the effect of tariffs and input costs on customer behavior. Glass said restaurants are prioritizing efficiency and limited service concepts are gaining share, benefiting Olo’s customer base.
- Max Michaelis (Lake Street Capital Markets) sought details on Chipotle’s prior catering technology and the timeline for the pilot. Glass confirmed Chipotle used a homegrown solution and outlined the upcoming pilot phase.
- Pat McIlwee (William Blair) asked about the drivers behind gross profit acceleration and the outlook for further growth. Benevides pointed to strong deployments, increased ARPU, and expected reacceleration in the year’s second half.
Catalysts in Upcoming Quarters
In the upcoming quarters, the StockStory team will be watching (1) the pace of adoption for Catering Plus and Olo Pay card-present among large brands, (2) the integration and customer uptake of Olo Guest Intelligence and its impact on guest engagement, and (3) trends in average revenue per user as more modules are deployed across the existing customer base. Execution on these initiatives and further large enterprise wins will be critical markers of Olo’s progress.
Olo currently trades at $8.80, up from $8.04 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
The Best Stocks for High-Quality Investors
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
