Restaurant software company (NYSE:OLO) will be announcing earnings results tomorrow afternoon. Here's what investors should know.
Last quarter Olo reported revenues of $42.7 million, up 18.3% year on year, beating analyst revenue expectations by 2.63%. It was a weaker quarter for the company, with a deceleration in net revenue retention rate and a decline in gross margin.
Is Olo buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Olo's revenue to grow 27.6% year on year to $45.8 million, slowing down from the 47.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 5.34%.
Looking at Olo's peers in the vertical software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Q2 Holdings delivered top-line growth of 13.5% year on year, beating analyst estimates by 0.03% and 2U reported revenues up 1.79% year on year, missing analyst estimates by 5.03%. Q2 Holdings traded down 4.01% on the results, and 2U was down 3.18%. Read our full analysis of Q2 Holdings's results here and 2U's results here.
There has been positive sentiment among investors in the software segment, with the stocks up on average 5.69% over the last month. Olo is up 11.9% during the same time, and is heading into the earnings with analyst price target of $17.6, compared to share price of $12.53.
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The author has no position in any of the stocks mentioned.