TOST - Olo Needs To Break Out Of Growth With Operating Losses Cycle
2024-02-13 16:02:36 ET
Summary
- Olo Inc. had an optimistic debut in public markets in March 2021, but concerns remain over slower growth and increasing operating losses.
- The global restaurant management software market is expected to reach $15.3 billion by 2030, presenting a growth opportunity for Olo.
- Olo's recent financial trends show steady revenue growth, but operating cash flow has dropped into negative territory, leading me to wonder about client stress.
- I reiterate my Neutral [Hold] outlook on Olo Inc. stock due to continued operating losses, sharply worsening operating cash flow, and deteriorating earnings.
Investment Outlook
Olo Inc. ( OLO ) went public in March 2021, pricing its shares at $25 and jumping 35% on its opening day of trading in an optimistic debut in public markets during the global pandemic.
I previously wrote about Olo in June 2023 with a Hold outlook due to my concern over slower growth and increasing operating losses....
Olo Needs To Break Out Of Growth With Operating Losses Cycle