Can OLO sustain its earnings momentum?

**Olo's ability to sustain its earnings momentum appears promising**, considering the following points: 1. **Revenue Growth and Positive Outlook**: Olo has demonstrated strong revenue growth, with a 20.74% increase in total revenue to $76.07 million in the MRQ. The company's platform revenue also saw a 21% year-over-year increase to $75.2 million. Olo projects Q1 revenue between $77.2-77.7 million and a full-year revenue of $333.0-336.0 million for 2025, indicating confidence in continued growth. 2. **Strategic Partnerships and Market Expansion**: Olo's successful partnerships, such as with FreedomPay for card-present payments and expanded relationships with Grubhub for delivery integration, are expected to boost revenue growth and enhance gross profit. The company's focus on land-and-expand strategies and cross-selling additional products to existing customers suggests a strong market positioning. 3. **Operational Performance and Key Metrics**: Olo's Average Revenue Per Unit (ARPU) increased by 12% to $878, and the Dollar-based Net Revenue Retention (NRR) was at 115%, indicating strong customer loyalty and revenue growth potential. The company's active locations grew by 8% to 86,000, reflecting expanding market presence. 4. **Financial Projections and Confidence**: Olo's 2025 revenue guidance and the anticipated integration of Olo Pay card-present functionality through a partnership with FreedomPay suggest a strategic path to sustained growth. The company's recent earnings call conveyed confidence in accelerating gross profit growth and driving operating leverage. 5. **Momentum Style Score and Analyst Ratings**: Olo has a Momentum Style Score of A, indicating a strong momentum profile. The consensus rating from analysts is "Neutral" with an average price target of $8, suggesting potential for further price appreciation. In conclusion, Olo's strategic initiatives, financial performance, and market positioning indicate a strong likelihood of sustaining its earnings momentum. However, investors should monitor the company's execution of strategic plans and market conditions that could impact growth.