Restaurant software company (NYSE:OLO) will be reporting results tomorrow afternoon. Here’s what you need to know.
Olo beat analysts’ revenue expectations by 4.1% last quarter, reporting revenues of $70.5 million, up 27.6% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA and GMV (gross merchandise value) 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 22.7% year on year to $70.94 million, in line with the 22.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 per share.
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 a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.5% on average.
Looking at Olo’s peers in the vertical software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Agilysys delivered year-on-year revenue growth of 16.5%, beating analysts’ expectations by 1.1%, and Cadence reported revenues up 18.8%, topping estimates by 2.9%. Agilysys traded down 7.9% following the results while Cadence was up 12.5%.
Read our full analysis of Agilysys’s results here and Cadence’s results here.
There has been positive sentiment among investors in the vertical software segment, with share prices up 7% on average over the last month. Olo is up 11.7% during the same time and is heading into earnings with an average analyst price target of $8.70 (compared to the current share price of $5.25).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.