Restaurant software company (NYSE:OLO) will be reporting earnings today. Here's what you need to know.
Last quarter Olo reported revenues of $55.3 million, up 21.2% year on year, beating analyst revenue expectations by 3.9%. It was a strong quarter for the company, with optimistic revenue guidance for the next quarter and a decent beat of analysts' revenue estimates.
Is Olo buy or sell heading into the earnings? Read our full analysis here.
This quarter analysts are expecting Olo's revenue to grow 19.1% year on year to $56.3 million, slowing down from the 26.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 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 only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.2%.
Looking at Olo's peers in the vertical software segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. Agilysys delivered top-line growth of 22.8% year on year, beating analyst estimates by 3.1% and Cadence reported revenues up 13.4% year on year, exceeding estimates by 1.8%. Agilysys traded up 21.7% on the results, Cadence was down 0.9%.
The whole tech sector has been facing a sell-off and while some of the vertical software stocks have fared somewhat better, they have not been spared, with share price declining 2.7% over the last month. Olo is up 3% during the same time, and is heading into the earnings with analyst price target of $10.5, compared to share price of $5.9.
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The author has no position in any of the stocks mentioned.