      cloudedjudgement.substack.com · 2021-02-22
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Olo: Benchmarking the S-1 Data

This article provides a detailed analysis of Olo's S-1 filing, benchmarking its financial metrics, unit economics, and operating performance against public SaaS peers. Olo emerges as a high-growth, profitable SaaS company with exceptional gross margins (81%), minimal S&M spend (9% of revenue), and strong net revenue retention (>120%), despite being one of the smallest public SaaS companies by revenue.

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Metrics in this report

Gross Margin

81percent

Olo LTM GAAP gross margin compared to public SaaS peers

Gross Margin Adjusted CAC Payback

Exceptionalmonths

best-in-class

Olo customer acquisition payback period

Median S&M Spend as % of Revenue

44percent

median

Public SaaS companies benchmarked against Olo

Net Revenue Retention

120percent

minimum

Olo discloses >120% NRR

Operating Margin

Positivepercent

Olo GAAP operating margin (positive, rare for early-stage public SaaS)

S&M Spend as % of Revenue

9percent

lowest

Olo vs. public SaaS peers; median is 44%, next closest competitor at 16%

Subscription Revenue as % of Platform Revenue

56.7percent

Olo 2020 (declined from 93.2% in 2018)

Total Addressable Market

7000million USD

Olo estimated TAM based on 300,000 enterprise restaurant locations in US

Transaction Revenue as % of Platform Revenue

43.3percent

Olo 2020 (increased from 6.8% in 2018)