By Alan Hatfield
Restaurant and hospitality SaaS provider Olo Inc. (NYSE: OLO) today reported continued revenue and profitability growth amidst continued customer adoption of the company’s flagship platform in the first quarter ending March 31.
Olo saw revenue increase 18% year-over-year to $42.8 million, as it expanded its customer base to fast-casual chains such as Nando’s, quick service restaurants including El Pollo Loco, and convenience store operators such as Kwik Trip. Such C-stores represent an emerging vertical for Olo, clearing the way for the company to pursue an additional 55,000 total addressable locations.
“Results were ahead of consensus, with revenue growth of +18% off the most challenging compare at +125%, as we note easing comps from here,” RBC Capital Markets Analyst Matthew Hedberg wrote in a note to clients. Mr. Hedberg has a price target of $20 a share for Olo, compared with Tuesday’s closing price of $8.90.
Non-GAAP gross profit increased 8% year-over-year to $32.4 million, and was 76% of total revenue.
Olo also completed the acquisition of restaurant technology provider Omnivore Technologies, Inc. and introduced the in-house Sync listing management solution during the period.
“In the first quarter, Olo’s revenue and profitability momentum continued, as we took meaningful strides towards enabling digital hospitality. Our platform supported year-over-year growth in transaction volume, and we expanded our product portfolio and use cases, added new and expanded existing relationships, and grew our technology partner ecosystem,” said Noah Glass, Olo’s Founder and CEO, in a statement.
In the second quarter Olo expects to report revenue in the range of $45.5 million to $46.0 million, the company said.