Restaurant software company (NYSE:OLO) will be announcing earnings results tomorrow after market close. Here's what to look for.
Last quarter Olo reported revenues of $49.8 million, up 24.6% year on year, beating analyst revenue expectations by 2.39%. It was a mixed quarter for the company, with a meaningful improvement in gross margin but underwhelming guidance for the next year.
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 18.7% year on year to $50.8 million, in line with the 18.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.01 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 3.75%.
Looking at Olo's peers in the vertical software segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. nCino delivered top-line growth of 45.7% year on year, beating analyst estimates by 4.5% and PTC reported revenues up 7.31% year on year, exceeding estimates by 0.55%. nCino traded flat on the results, PTC was up 1.46%. Read our full analysis of nCino's results here and PTC's results here.
Technology stocks have been hit hard on fears of higher interest rates and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 6.54% over the last month. Olo is down 17.4% during the same time, and is heading into the earnings with with analyst price target of $10.1, compared to share price of $6.6.
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The author has no position in any of the stocks mentioned.