Olo’s IPO could value the company north of $3B as Toast waits in the wings

Aiming at $18 to $16 per share, Olo could raise $372.6 million in its public offering. The New York-based fintech startup, which provides order-processing software to restaurants, split its initial IPO price range this morning. The company’s debut comes ahead of Toast’s expected IPO, a Boston-based unicorn similar to the market.

This morning, we are doing our usual job: parsing the company’s price gap to get Olo valuation limit. We will calculate both the simple and the completely thin price and work some quick work on its income scale to grasp its total scale. Most of the companies on the recent edges we have tracked are not like going public; Olo has a history of growth and profits, which makes the upcoming price more attractive. It is unknown at this time what he will do after leaving the post. 

Are investors willing to pay more for profits? This is a niche question because most IPOs look a bit more than Olo but it is worth answering.

Is it expensive?

Find out! Digging back into Olo’s development, we see a rapidly expanding software revenue business. In addition, earning the same software is improving the quality over time. From 2019 to 2020, for example, Olo’s “platform” revenue – a combination of subscriptions and transaction top-tier transactions from software – increased from $45.1 million to $92.8 million. At the same time, the company’s platform earnings have increased its total margin from 73.6% to 84.5%.

Olo’s IPO valuation range: If you want to follow, you can read the new S-1 filing here. Here is our first look at Olo, and its history of fundraising is at every Crunchbase here. According to the company, after its IPO, the total number of its Class A and B shares will come to 142,012,926 or we will count as 144,712,926 shares with the option of its underwriters. Using the latter – because we tend to look at the final assessment – Olo is valued at $2.32 billion to $2.6 billion.The company is targeting $16 to $18 per share with expected sales of 18 million shares. The company also reserves 2.7 million shares for its underwriters. At the top end of its bank, Olo could raise $324 million at the time of his debut without counting the shares reserved for his bankers. However, what about completely thin assessment of it. Added to the currently unveiled but free stock options, Olo brings in about 188,085,714 shares. Add underwriters to the option and the total rises to 190,785,714 shares. Using the next figure, Olo could be valued at $3.05 billion to $3.43 billion a completely thin basis at $16 per share and $18 per share.