Olo (OLO) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

Zacks Equity Research
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Olo Inc. (OLO) reported $70.5 million in revenue for the quarter ended June 2024, representing a year-over-year increase of 27.6%. EPS of $0.05 for the same period compares to $0.04 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $67.81 million, representing a surprise of +3.98%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.05.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Olo performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • ARPU

    : $852 versus the two-analyst average estimate of $822.72.

  • Ending Active Locations

    : 82,000 versus the two-analyst average estimate of 82,150.

  • Revenue- Platform

    : $69.60 million versus the three-analyst average estimate of $67.04 million. The reported number represents a year-over-year change of +27.5%.

  • Revenue- Professional services and other

    : $0.90 million compared to the $0.76 million average estimate based on three analysts. The reported number represents a change of +39.5% year over year.

  • Gross profit- Services- Non-GAAP

    : $0.15 million versus -$0.04 million estimated by three analysts on average.

  • Gross profit- Platform- Non-GAAP

    : $44.16 million versus the three-analyst average estimate of $41.50 million.

View all Key Company Metrics for Olo here>>>

Shares of Olo have returned +12.6% over the past month versus the Zacks S&P 500 composite's -0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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