What Happened:
Shares of restaurant software company (NYSE:OLO) jumped 5.29% in the after-market session after the company reported an impressive "beat and raise" quarter. First quarter results exceeded analysts' estimates for revenue, operating income, free cash flow, and earnings per share (EPS). Revenue retention rate also improved. Revenue guidance for the next quarter came in above Consensus, and full-year revenue guidance was lifted. Operating income guidance for the full year was roughly inline. Overall, it was a strong quarter for the company, given that online delivery businesses have struggled to maintain the post-pandemic momentum.
What is the market telling us:
Olo's shares are a little volatile and over the last year have had 41 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Olo is up 11% since the beginning of the year, but at $7.28 per share it is still trading 48.2% below its 52-week high of $14.05 from August 2022. Investors who bought $1,000 worth of Olo's shares at the IPO in March 2021 would now be looking at an investment worth $209.50.
Is now the time to buy Olo? Access our full analysis of the earnings results here, it's free.