10 Best Debt-Free IT Stocks to Buy Under $10

2. Olo Inc. (NYSE:OLO)

Ent. Value: $721 million; Market Cap: $1.07 billion

EV to Market Cap: 0.7

Share Price: $6.42

Number of Hedge Fund Holders: 30

Olo Inc. (NYSE:OLO) provides an enterprise-grade, open SaaS platform to help restaurants with online ordering and delivery. Its cloud-based platform allows restaurants to handle orders, manage deliveries, and improve how they connect with customers. The software integrates with a range of restaurant technology solutions like point-of-sale (POS) systems, delivery service providers, and payment processors. Its software makes operations more efficient for restaurant businesses. The company serves various restaurant chains, including Shake Shack and Wingstop.

2024 was a strong year for the company from operations perspective as it reported over $29 billion in gross merchandise volume and more than doubled its gross payment volume to $2.8 billion, up from $1 billion in 2023. It released 13 product enhancements in its latest version of platform, including AI-powered menu item recommendations, and Sparkfly and Spendgo loyalty partner integrations. It was also able to increase its average revenue per user (ARPU) which helped Q4 revenue to grow 21% year-over-year to $76.1 million.

Looking ahead, the company gave an optimistic guidance for 2025, with revenue expected to be between $333-$336 million, and adjusted operating income between $45.5-$47 million. On a slightly negative side, due to revenue mix shift towards Olo pay services, gross margins are expected to compress by around 250 basis points versus those in 2024. However, some of this pressure will be offset by better operating leverage.