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

Kayode Omotosho /
2024/05/06 3:01 am EDT

Restaurant software company (NYSE:OLO) will be announcing earnings results tomorrow after the bell. Here's what investors should know.

Olo beat analysts' revenue expectations by 7% last quarter, reporting revenues of $63 million, up 26.6% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts' revenue and billings estimates.

Is Olo a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Olo's revenue to grow 23% year on year to $64.27 million, in line with the 22.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 per share.

Olo Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Olo has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 2.8% on average.

Looking at Olo's peers in the vertical software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Procore Technologies delivered year-on-year revenue growth of 26.2%, beating analysts' expectations by 2.5%, and PTC reported revenues up 11.2%, topping estimates by 4.6%. Procore Technologies traded up 1.4% following the results while PTC was down 2.4%.

Read our full analysis of Procore Technologies's results here and PTC's results here.

Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance thanks to mixed inflation data, and while some of the vertical software stocks have fared somewhat better, they have not been spared, with share prices down 3.1% on average over the last month. Olo is down 5.6% during the same time and is heading into earnings with an average analyst price target of $8.5 (compared to the current share price of $4.92).

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