Here's Why Olo Stock Got Creamed Today
Shares of restaurant-technology company Olo (NYSE: OLO) got creamed on Tuesday after the company reported financial results for the third quarter of 2023. If you only looked at the numbers, you might think that the stock would be up today. But it looks like the market is concerned about the company losing a really big customer. And that's why Olo stock was down 23% as of 11:45 a.m. ET, sinking to an all-time low.
In Q3, Olo generated revenue of $57.8 million, up 22% year over year and ahead of management's guidance of $56 million to $56.5 million. There are now 78,000 restaurant locations using the company's platform, up 1,000 from the previous quarter. And average revenue per unit that uses its platform increased 33% year over year to $742.
In other words, more restaurants are using Olo, the company is making more money per location, and its revenue is consequently growing at a strong rate.
Source Fool.com
