Olo Likely to Report Strong Q1 Results, RBC Capital Says
02:47 PM EDT, 05/11/2021 (MT Newswires) -- Olo's (OLO) Q1 results, due out May 11, should be strong as the company is well positioned to help restaurants drive more first-party traffic and a better digital ordering experience, RBC Capital said in a note.
"We believe Olo remains well positioned to consolidate spend in the global on-demand restaurant commerce market that could be a $40B opportunity," analysts said. Key drivers of growth include average revenue per user expansion, new product offerings and adding a loyalty program, among other things.
The brokerage expects Q1 adjusted earnings of $0.01 per share and revenue of $32.1 million. Analysts polled by Capital IQ anticipate adjusted EPS of $0.01 and revenue of $31.7 million.
"We remain particularly encouraged following the Doordash settlement, which removes an overhang on the stock as we
believe it is the best-case scenario for both Doordash and Olo," according to RBC Capital's analysts.
The brokerage maintained its outperform rating $35 price target.
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