Olo Inc. Reports 21.3% Revenue Growth and Net Income Turnaround in Q1 2025

Olo Inc. reported a significant increase in its financial performance for the first quarter of 2025, with total revenue reaching $80.7 million, a 21.3% increase from $66.5 million in the same period last year. The platform revenue, which constitutes the majority of the company's income, rose by 20.5% to $79.2 million, driven by higher transaction volumes from its Olo Pay solution and increased order revenue. The company also achieved a net income of $1.8 million, a notable turnaround from a net loss of $2.4 million in the prior year, marking a shift towards profitability.

In terms of operational metrics, Olo's customer base expanded to over 750 restaurant brands, representing approximately 88,000 active locations, up from 81,000 a year earlier. The average revenue per unit also increased to $911, compared to $816 in the previous year. The company's dollar-based net revenue retention rate stood at 111%, indicating strong customer loyalty and the potential for further revenue growth from existing clients. These figures reflect Olo's successful strategy in enhancing its service offerings and customer engagement.

The company has also made strides in managing its costs, with total operating expenses rising to $46.7 million, up from $44.4 million in the previous year. This increase was primarily due to higher general and administrative expenses, which rose by 23.8% to $15.8 million, driven by increased professional fees and litigation-related costs. However, research and development expenses remained relatively stable, reflecting Olo's commitment to innovation while managing its operational efficiency.

Looking ahead, Olo plans to continue investing in its platform and expanding its product offerings, particularly in the areas of payments and data analytics. The company is also exploring opportunities for geographic expansion and partnerships with small- and medium-sized businesses to enhance its market presence. With a strong cash position of $401.8 million as of March 31, 2025, Olo is well-positioned to support its growth initiatives and capitalize on emerging market opportunities. The company remains optimistic about its future performance, anticipating continued growth in both revenue and customer engagement as it leverages its unique position in the restaurant technology sector.