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Olo Reports Strong 2024; Expects Continued Growth in 2025

Olo delivered impressive financial results for 2024, with revenue growth reflecting robust performance. The firm anticipates even stronger results moving into 2025 as customer engagement strategies take effect.

Date: 
AI Rating:   7

Olo's Financial Performance Overview

Olo has shown a remarkable financial performance for the year ending 2024, with significant year-over-year growth in various key metrics. The total revenue reached $284.9 million, representing a 25% increase compared to the previous year. In the fourth quarter of 2024 alone, the revenue amounted to $76.1 million, which is a 21% increase year over year. Additionally, the company recorded strong growth in their active location count, achieving 86,000 active locations at year-end, with approximately 6,000 net new locations added throughout the year.

Net Income and Earnings Per Share (EPS)

In Q4 2024, Olo reported a net income of $11.3 million or $0.06 per share, based on approximately 176 million fully diluted shares. This performance is indicative of improving profitability and suggests a positive trajectory for earnings in the upcoming quarters.

Operating Income and Profit Margins

The operating income for Q4 was $11.5 million, showing an increase from $6.8 million in the previous year. The operating margin also improved significantly to 15.1%, an increase of approximately 430 basis points year over year. Such an increase in profitability demonstrates the effectiveness of Olo's operational strategies, alongside revenue growth.

Free Cash Flow (FCF)

The fourth-quarter free cash flow was reported at $6.8 million, compared to $2.7 million a year ago. Additionally, for the full year 2024, Olo generated $27 million in free cash flow, highlighting a solid cash generation capability that can be reinvested into the business or returned to shareholders.

Conclusion

Overall, the report presents a positive outlook for Olo, with strong revenue growth, improvements in net income, operating income, and free cash flow. As these trends continue, they are likely to contribute positively to Olo's stock price.

Stocks:  OLO