Restaurant software company (NYSE:OLO) will be reporting results tomorrow after the bell. Here's what to expect.
Last quarter Olo reported revenues of $57.79 million, up 22.3% year on year, beating analyst revenue expectations by 2.6%. It was a solid quarter for the company, with a significant improvement in its net revenue retention rate and optimistic revenue guidance for the next quarter.
Is Olo buy or sell heading into the earnings? Find out by reading the original article on StockStory.
This quarter analysts are expecting Olo's revenue to grow 18.2% year on year to $58.86 million, slowing down from the 24.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 per share.
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 only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.2%.
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 delivered top-line growth of 34.7% year on year, beating analyst estimates by 1.9% and Agilysys (NASDAQ:AGYS) reported revenues up 21.3% year on year, exceeding estimates by 0.8%. Toast traded up 11.8% on the results, and Agilysys was flat on the results.
Read the full analysis of Toast's and Agilysys's results on StockStory.
There has been positive sentiment among investors in the vertical software segment, with the stocks up on average 2.9% over the last month. Olo is up 17% during the same time, and is heading into the earnings with analyst price target of $7.6, compared to share price of $5.9.