Olo Inc. (NYSE:OLO) General Counsel and Secretary Robert Morvillo has sold 1,831 shares of the company's Class A common stock for a total value exceeding $8,000. The transactions occurred on June 6, 2024, and were disclosed in a recent filing with the Securities and Exchange Commission.
The shares were sold at a weighted average price of $4.5211, with individual sales prices ranging from $4.52 to $4.53. This sale was conducted to cover tax withholding obligations related to the vesting and settlement of restricted stock units, according to the footnotes in the filing. It is important to note that these sales were not discretionary trades made by Morvillo.
Following the sale, Morvillo still owns a substantial number of shares in the company, with 85,311 shares of Olo Inc. remaining in his possession. The transaction reflects a common practice among executives to sell shares for tax purposes following the vesting of restricted stock.
Investors and followers of Olo Inc. can find further details about the transactions upon request to the company, any of its security holders, or directly from the SEC staff. The company, headquartered in New York, operates within the services-business services sector and is incorporated in Delaware.
In other recent news, Olo Inc. reported a significant surge in earnings and revenue, prompting RBC Capital Markets to raise its price target for the company. Olo's revenue and adjusted EBITDA outperformed expectations, contributing to an upward revision in the current year's guidance. This financial performance included a $2.3 million beat, reflected in the updated guidance for the calendar year 2024.
Successes of Olo Pay, the company's payment processing solution, and gains in its Order and Engage services played a significant role in this upward revision. Additionally, a partnership with Dutch Bros Coffee is expected to positively impact Olo's financial model in the second half of the year.
Olo also announced a 27% year-over-year increase in revenue for Q1 2024, hitting $66.5 million, and a growth in active locations to 81,000. The company raised its full-year revenue guidance to a range of $274.5 million to $276.5 million, and non-GAAP operating income guidance to a range of $23 million to $24.5 million. These recent developments reflect analysts' confidence in Olo's ability to execute its business plan effectively.
InvestingPro Insights
Amidst the recent insider selling by Olo Inc.'s (NYSE:OLO) General Counsel and Secretary, the company's financial health and market performance provide additional context for shareholders and potential investors. Olo Inc. is currently trading near its 52-week low, with its previous close at $4.44, which may represent an interesting entry point for investors considering the company's recent revenue growth.
InvestingPro data indicates a robust 24.46% revenue growth over the last twelve months as of Q1 2024, with quarterly growth figures also impressing at 27.32%. This growth narrative is further bolstered by a strong gross profit margin of 58.82%, showcasing Olo's ability to maintain profitability at the core operational level.
From a liquidity standpoint, Olo holds more cash than debt on its balance sheet, a reassuring sign for investors concerned about financial stability. Moreover, the company's liquid assets exceed its short-term obligations, as highlighted by one of the InvestingPro Tips, which could be pivotal in navigating any short-term financial headwinds.
While Olo has not been profitable over the last twelve months, analysts predict the company will turn profitable this year, according to another InvestingPro Tip. Investors interested in a deeper dive into Olo's financials and future outlook may find additional InvestingPro Tips by visiting https://www.investing.com/pro/OLO. There, you'll find a total of 7 InvestingPro Tips, which could provide further insights into the company's strategic direction and operational efficiency.
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