Olo Reports Q4: Everything You Need To Know Ahead Of Earnings

Adam Hejl /
2022/02/22 6:27 am EST

Restaurant software company (NYSE:OLO) will be announcing earnings results tomorrow after market hours. Here's what to expect.

Last quarter Olo reported revenues of $37.3 million, up 35.9% year on year, beating analyst revenue expectations by 2.91%. It was a strong quarter for the company, with a very optimistic guidance for the next quarter and an exceptional revenue growth.

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 27.9% year on year to $39 million, slowing down from the 117% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 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 7.3%.

Looking at Olo's peers in the vertical software segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Toast (NYSE:TOST) delivered top-line growth of 111% year on year, beating analyst estimates by 4.93% and Unity (NYSE:U) reported revenues up 43.3% year on year, exceeding estimates by 6.81%. Toast traded down 18.2% on results, Unity was up 17.5%. Read our full analysis of Toast's results here and Unity's results here.

The technology sell-off has been putting pressure on stocks since November and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 5.78% over the last month. Olo is up 5.68% during the same time, and is heading into the earnings with analyst price target of $38.6, compared to share price of $16.35.

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.