B2B SaaS company focused on developing digital ordering and delivery programs for restaurants Olo Inc. (NYSE: OLO) recently reported better-than-expected results for the first quarter ended March 31, 2022.
However, shares of the company declined almost 10% to close at $8.02 in Tuesday’s extended trading session.
Revenue & Earnings
Olo’s revenues for the quarter stood at $42.8 million, up 18% from the same quarter last year. Further, the figure topped the consensus estimate of $41.71 million.
Platform revenues stood at $41.15 million, up 19% year-over-year, and aided the overall growth in total revenues.
Further, earnings of $0.01 per share surpassed the consensus estimate of $0.00. The company had posted earnings of $0.03 per share in the same quarter last year.
Other Operating Metrics
Olo’s average revenue per unit (ARPU) declined 2% from the previous year to $516. However, ending active locations witnessed a rise of 19% year-over-year to 82,000. Dollar based net revenue retention was about 107%
At the end of the quarter, the company’s cash and cash equivalents stood at $463.7 million.
For the second quarter, the company expects revenue to hover between $45.5 million and $46 million.
For the full Fiscal Year 2022, the company forecasts revenue in the range of $195 million-$197 million. The consensus estimate for the same is pegged at $193.8 million.
The CEO of Olo, Noah Glass, said, “In the first quarter, Olo’s revenue and profitability momentum continued, as we took meaningful strides towards enabling digital hospitality. Our platform supported year-over-year growth in transaction volume, and we expanded our product portfolio and use cases, added new and expanded existing relationships, and grew our technology partner ecosystem.”
Consensus among analysts is a Strong Buy based on five unanimous Buys. OLO’s average price target of $21.60 implies upside potential of 142.7% from current levels. Shares have declined 68.8% over the past year.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on OLO, as 8% of portfolios tracked by TipRanks increased their exposure to OLO stock over the past 30 days.
Olo’s strong quarterly results, along with a robust liquidity position, give the company a strong footing to increase its operations more efficiently.
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