Olo Inc. (NYSE:OLO) Third-Quarter Results: Here's What Analysts Are Forecasting For Next Year

Shareholders of Olo Inc. (NYSE:OLO) will be pleased this week, given that the stock price is up 12% to US$5.74 following its latest quarterly results. Revenues came in at US$72m, in line with forecasts and the company reported a statutory loss of US$0.02 per share, roughly in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Olo after the latest results.

Check out our latest analysis for Olo

Taking into account the latest results, the consensus forecast from Olo's seven analysts is for revenues of US$325.2m in 2025. This reflects a solid 20% improvement in revenue compared to the last 12 months. Losses are forecast to balloon 57% to US$0.15 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$323.0m and losses of US$0.073 per share in 2025. So it's pretty clear the analysts have mixed opinions on Olo even after this update; although they reconfirmed their revenue numbers, it came at the cost of a very substantial increase in per-share losses.

The consensus price target held steady at US$8.70, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Olo, with the most bullish analyst valuing it at US$10.00 and the most bearish at US$8.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Olo's revenue growth is expected to slow, with the forecast 15% annualised growth rate until the end of 2025 being well below the historical 25% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 12% per year. So it's pretty clear that, while Olo's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Olo analysts - going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for Olo (of which 1 is significant!) you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.