Olo (OLO) To Report Earnings Tomorrow: Here Is What To Expect

Adam Hejl /
2022/05/09 7:42 am EDT
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Restaurant software company (NYSE:OLO) will be reporting earnings tomorrow after market close. Here's what you need to know.

Last quarter Olo reported revenues of $39.9 million, up 30.8% year on year, beating analyst revenue expectations by 2.2%.It was a slower quarter for the company, with a decline in gross margin and an underwhelming revenue guidance for the next quarter.

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 15.3% year on year to $41.6 million, slowing down from the 124% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.0 per share.

Olo Total Revenue

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 since going public on average by 6.02%.

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. Q2 Holdings delivered top-line growth of 15% year on year, beating analyst estimates by 1.21% and 2U reported revenues up 8.97% year on year, exceeding estimates by 0.14%. Both companies (2U and Q2 Holdings) traded flat on the results. Read our full analysis of Q2 Holdings's results here and 2U's results here.

Tech stocks have had a rocky start in 2022 and software stocks have not been spared, with share price down on average 18.1% over the last month. Olo is down 15.5% during the same time, and is heading into the earnings with analyst price target of $21.6, compared to share price of $10.2.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.