Stock Story -
What Happened: Shares of restaurant software company (NYSE:OLO) jumped 26.3% in the morning session after the company reported a "beat and raise" quarter. Olo exceeded analysts' revenue, billings, and adjusted operating income expectations. Moving on, it lifted its revenue guidance for the next quarter, which came in higher than Wall Street's estimates. Overall, this was a strong quarter that should satisfy shareholders.
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What is the market telling us: Olo's shares are not very volatile than the market average and over the last year have had only 15 moves greater than 5%. But moves this big are very rare even for Olo and that is indicating to us that this news had a significant impact on the market's perception of the business.
The biggest move we wrote about over the last year was 3 months ago, when the company gained 12.8% on the news that the company reported a "beat and raise" quarter. First quarter results exceeded analysts' billings and revenue expectations. The company continued to expand its footprint, adding 1000 new locations during the quarter. For the full year, it projected 5000 new locations, showing demand is strong. As a result, guidance was strong, with the revenue forecast for the next quarter being higher than Wall Street's estimates. Similarly, the full-year revenue guidance was raised and came in ahead of consensus. Overall, we think this was a strong quarter that should satisfy shareholders.
Olo is up 0.5% since the beginning of the year, but at $5.45 per share it is still trading 31.8% below its 52-week high of $7.99 from July 2023. Investors who bought $1,000 worth of Olo's shares at the IPO in March 2021 would now be looking at an investment worth $156.80.
![Olo (OLO) Stock Trades Up, Here Is Why](https://d68-invdn-com.investing.com/content/pic9a54d750699e24557ebf6b3c9c228d0f.jpeg)