Last Friday Olo their initial S1 statement. A S1 is a document companies file with the SEC in preparation for listing their shares on an exchange like the NYSE or NASDAQ. The document contains a plethora of information on the company including a general overview, up to date financials, risk factors to the business, cap table highlights and much more. The purpose of the detailed information is to help investors (both institutional and retail) make investment decisions. There’s a lot of info to digest, so in the sections below I’ll try and pull out the relevant financial information and benchmark it against current cloud businesses. As far as an expected timeline - typically companies launch their roadshow ~3 weeks after filing their initial S1 (the roadshow launches with an updated S1 that contains a price range). After the roadshow launch there’s typically ~2 weeks before the stock starts trading. So we’re looking at roughly 5 weeks before any retail investor can buy the stock.
The big story for OLO is its ability to build a transaction business on top of a subscription business. They have no real enterprise-class competitor. With excellent operating metrics, I see the stock trading at 50x (or $5b market cap). Its only challenge is TAM and for sustained long term growth, they will have to expand the product portfolio and geographical reach.
Incredible numbers, but on pretty small side side, not sure how it compares against early journey of those DDOG, ZM or SHOP. Thank you Jamin, great work as always!
The big story for OLO is its ability to build a transaction business on top of a subscription business. They have no real enterprise-class competitor. With excellent operating metrics, I see the stock trading at 50x (or $5b market cap). Its only challenge is TAM and for sustained long term growth, they will have to expand the product portfolio and geographical reach.
Thanks for this wonderful analysis!
Incredible numbers, but on pretty small side side, not sure how it compares against early journey of those DDOG, ZM or SHOP. Thank you Jamin, great work as always!
Any idea on valuation? At about $100m LTM Rev. we likely looking at 30x Sales, $3b when we see this thing hit the public markets in the Spring?