Today, Olo Inc. (NYSE:OLO), a provider of cloud-based on-demand commerce platforms for multi-location restaurants with a market capitalization of $1.29 billion, disclosed the finalization of agreements related to the departure of its Chief Revenue Officer, Diego Panama. The company's stock has shown remarkable strength, gaining over 62% in the past six months and currently trading near its 52-week high of $8.35.
According to InvestingPro analysis, Olo appears to be slightly undervalued at current levels. According to the company's recent 8-K filing with the SEC, Mr. Panama's exit was mutually agreed upon and will be effective as of December 31, 2024.
Under the terms of an Advisor Agreement, dated January 21, 2025, Olo Inc. will compensate Mr. Panama for advisory services provided through March 31, 2025. He will receive a monthly fee of $45,833, a prorated bonus based on his 2024 executive bonus structure (excluding commissions), and coverage of his COBRA premiums during this advisory period. Additionally, Mr. Panama's previously granted restricted stock unit awards will continue to vest until the end of his advisory services.
Following the advisory period, starting April 1, 2025, Olo Inc. will commence severance payments as outlined in Mr. Panama's Employment Agreement from April 26, 2022. The company maintains a strong financial position to manage such transitions, with InvestingPro data showing a healthy current ratio of 7.86 and more cash than debt on its balance sheet. Details of the severance arrangement were not disclosed in the 8-K summary but are referenced as being in accordance with Section 5.2(vi) of the Employment Agreement, which is filed with the company's Form 10-Q for the quarter ended June 30, 2022.
For deeper insights into Olo's financial health, valuation metrics, and extensive analysis, access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
In other recent news, Olo Inc. reported a notable increase in its third-quarter financials for 2024. The company witnessed a 24% year-over-year growth in total revenue, hitting $71.9 million, and surpassed its full-year location growth target by adding approximately 5,000 net new locations ahead of schedule. The Average Revenue Per User (ARPU) experienced a 15% increase from the previous year, reaching $850.
In addition to the financial growth, Olo introduced card-present functionality on Qu POS with pilots expected by year-end. Furthermore, the company announced a $100 million share repurchase program planned for Q4. However, a workforce reduction of approximately 9% is anticipated to lower costs by about $8 million annually.
In terms of future expectations, Olo raised its full-year revenue guidance to between $281.4 million and $281.9 million. For the fourth quarter, the company expects revenue to be between $72.5 million and $73 million. Finally, Olo Pay revenue is projected to reach the high $60 million range for the fiscal year 2024.
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