Group 1 - Class Action Attorney Juan Monteverde's firm, Monteverde & Associates PC, has recovered millions for shareholders and is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report [1] - The firm is investigating Olo Inc. regarding its sale to Thoma Bravo for $10.25 per share in cash to Olo shareholders, raising questions about the fairness of the deal [1] Group 2 - Monteverde & Associates PC is a national class action securities firm with a successful track record in trial and appellate courts, including the U.S. Supreme Court [2] - The firm operates from the Empire State Building in New York City [2]

Core Viewpoint - Wohl & Fruchter LLP is investigating the fairness of the proposed sale of Olo, Inc. to Thoma Bravo for $10.25 per share, which represents a 13.58% premium over the closing price prior to the announcement [1][3]. Group 1: Sale Details - Olo announced the agreement to be sold to Thoma Bravo on July 3, 2025, at a price of $10.25 per share in cash [3]. - The sale price reflects a premium of 13.58% compared to Olo's closing price on July 2, 2025 [3]. Group 2: Investor Sentiment - At least two investors have expressed disappointment regarding the sale price on SeekingAlpha, with comments indicating that the price is perceived as too low or inexpensive [3]. Group 3: Investigation Purpose - The investigation aims to determine if the Olo Board of Directors acted in the best interests of shareholders when approving the sale and whether the agreed price is fair [3]. - The investigation will also assess if all material information related to the transaction has been fully disclosed [3].

Company Overview - Olo Inc. (OLO) shares increased by 13.6% to close at $10.12, driven by notable trading volume, contrasting with a 0.3% gain over the past four weeks [1] - The company is experiencing benefits from the digitization of restaurant operations, increased adoption of its modules, and strong customer retention and expansion [1] Earnings Expectations - Olo is expected to report quarterly earnings of $0.08 per share, reflecting a year-over-year increase of 60% [2] - Revenue projections stand at $82.27 million, which is a 16.7% increase compared to the same quarter last year [2] Stock Performance Insights - The consensus EPS estimate for Olo has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] - Olo currently holds a Zacks Rank of 2 (Buy), suggesting positive market sentiment [3] Industry Context - Olo operates within the Zacks Internet - Software industry, which includes other companies like Workiva (WK) [3] - Workiva's consensus EPS estimate has also remained unchanged, with a projected EPS of $0.05, representing a significant year-over-year decline of 68.8% [4] - Workiva currently holds a Zacks Rank of 3 (Hold), indicating a more cautious outlook compared to Olo [4]

Core Viewpoint - The Ademi Firm is investigating Olo for potential breaches of fiduciary duty and other legal violations related to its transaction with Thoma Bravo, which involves a significant financial arrangement for shareholders [1][2]. Group 1: Transaction Details - Olo shareholders will receive $10.25 per share, which values the company at approximately $2.0 billion in equity [2]. - The transaction includes substantial benefits for Olo insiders as part of change of control arrangements [2]. Group 2: Investigation Focus - The investigation is centered on the conduct of Olo's board of directors to determine if they are fulfilling their fiduciary duties to all shareholders [2]. - The transaction agreement imposes significant penalties on Olo if it accepts competing bids, which raises concerns about the limitations on competing transactions [2].

Group 1: Olo - Olo is a software-as-a-service (SaaS) provider that assists restaurants with digital ordering, delivery, and customer engagement, transitioning from unprofitable growth to a turnaround story with positive earnings [4][5] - Currently holds a Zacks Rank 2 (Buy), with revenue expected to grow by 19.1% this year and 17.6% next year, while earnings are forecasted to rise by 41% this year and 18.3% next year [5] - The stock is showing technical momentum, with a potential breakout above the $8.95 resistance level, indicating strong investor interest [6] Group 2: Palomar Holdings - Palomar Holdings is a specialty insurer focused on property and casualty risks, particularly in underserved markets like earthquake and hurricane insurance [8] - Currently holds a Zacks Rank 1 (Strong Buy), with EPS expected to grow by 39.9% this year and 17% in 2025, and revenue forecasted to rise by 42.3% this year and 26.4% next year [10] - Despite a 180% gain over the last 18 months, the stock is experiencing a healthy pullback, presenting a potential buying opportunity for investors [11] Group 3: Exelixis - Exelixis is a biotechnology company focused on developing cancer treatments, with a strong oncology pipeline and a commitment to profitability [14] - Currently holds a Zacks Rank 2 (Buy), with FY25 EPS estimates raised by 13% and FY26 estimates up by 7.1%, indicating growing confidence in the company's growth outlook [15] - The stock is showing signs of technical momentum, with a potential breakout above the $43.70 level, supported by a favorable fundamental backdrop [16] Group 4: Investment Considerations - Exelixis, Olo, and Palomar Holdings present a compelling mix of strong fundamentals, favorable earnings revisions, and attractive valuations, making them worthy of investor attention [18]

Core Insights - Olo Inc. (OLO) shows potential as a strong investment due to significant revisions in earnings estimates, indicating an improving earnings outlook [1][9] - Analysts are increasingly optimistic about Olo's earnings prospects, which is expected to positively influence its stock price [2][3] - The Zacks Rank system, which rates stocks from 1 (Strong Buy) to 5 (Strong Sell), has a proven track record, with 1 ranked stocks averaging a +25% annual return since 2008 [3][8] Current-Quarter Estimate Revisions - For the current quarter, Olo is projected to earn $0.08 per share, reflecting a +60% increase from the same quarter last year [5] - In the last 30 days, two estimates for Olo have been revised upward while one has been revised downward, leading to a 150% increase in the Zacks Consensus Estimate [5] Current-Year Estimate Revisions - The full-year earnings estimate for Olo is $0.31 per share, representing a +40.91% change from the previous year [6] - Over the past month, one estimate has been revised upward with no negative revisions, resulting in a 92.86% increase in the consensus estimate [7] Favorable Zacks Rank - Olo currently holds a Zacks Rank 2 (Buy) due to positive estimate revisions, which suggests strong potential for stock performance [8] - Research indicates that stocks with Zacks Rank 1 and 2 significantly outperform the S&P 500 [8] Bottom Line - Olo's stock has gained 51.2% over the past four weeks, driven by solid estimate revisions, making it a candidate for portfolio addition [9]

Financial Performance - Olo Inc. reported revenue of $80.68 million for the quarter ended March 2025, reflecting a year-over-year increase of 21.3% [1] - The earnings per share (EPS) for the quarter was $0.07, up from $0.05 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $77.52 million by 4.08% [1] - The company achieved an EPS surprise of 16.67%, with the consensus EPS estimate being $0.06 [1] Key Metrics - Average Revenue Per User (ARPU) was $911, surpassing the average estimate of $887.40 from two analysts [4] - The number of Ending Active Locations reached 88,000, compared to the estimated 86,950 by two analysts [4] - Revenue from the Platform segment was $79.23 million, exceeding the average estimate of $76.72 million from three analysts, representing a year-over-year change of 20.5% [4] - Revenue from Professional Services and Other was $1.45 million, significantly higher than the average estimate of $0.76 million, marking a year-over-year increase of 94.2% [4] - Non-GAAP Gross Profit from the Platform was $48.42 million, compared to the estimated $45.94 million from three analysts [4] Stock Performance - Olo's shares have returned 18.7% over the past month, outperforming the Zacks S&P 500 composite's return of 11.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Company Performance - Olo Inc. reported quarterly earnings of $0.07 per share, exceeding the Zacks Consensus Estimate of $0.06 per share, and up from $0.05 per share a year ago, representing an earnings surprise of 16.67% [1] - The company posted revenues of $80.68 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.08%, compared to year-ago revenues of $66.51 million [2] - Over the last four quarters, Olo has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Future Outlook - The sustainability of Olo's stock price movement will depend on management's commentary during the earnings call and the earnings outlook for the coming quarters [3][4] - The current consensus EPS estimate for the next quarter is $0.07 on revenues of $81.91 million, and for the current fiscal year, it is $0.31 on revenues of $334.71 million [7] - The estimate revisions trend for Olo is currently mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which Olo belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $80.7 million, representing a 21% year-over-year increase [17] - Platform revenue was $79.2 million, up 20% year-over-year [17] - Gross profit for Q1 was $49.2 million, an 18% increase year-over-year, with a gross margin of 60.9% [19] - Operating income for Q1 was $11.5 million, compared to $5.6 million a year ago, with an operating margin of 14.3% [20] - Net income for Q1 was $11.8 million, or $0.07 per share [20] - Active locations increased to approximately 88,000, up 2,000 sequentially [17][18] - ARPU for Q1 was approximately $911, reflecting a 12% year-over-year growth [18] Business Line Data and Key Metrics Changes - The company added approximately 2,000 net new locations in Q1, driven by strong customer deployment activity [6][18] - Gross revenue retention remained above 98%, indicating strong customer loyalty [18] - The company reported a 12% year-over-year growth in ARPU, attributed to increased order volumes and modules per location [18] Market Data and Key Metrics Changes - The company noted that same-store sales for limited service concepts gained market share compared to full-service restaurants [24] - The enterprise restaurant segment is positioned to withstand economic downturns better than small and medium-sized businesses (SMBs) [24] Company Strategy and Development Direction - The company is focused on scaling Catering Plus, ramping Olo Pay card presence, and increasing the number of Olo flywheel brands as part of its 2025 priorities [5][6] - The company aims to leverage guest data to enhance customer engagement and drive profitable traffic [46][67] - The introduction of Olo Guest Intelligence (OGI) is expected to provide valuable insights for brands [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to help restaurants navigate rising input costs and macroeconomic uncertainty [15] - The company believes that enterprise brands are better positioned to weather economic challenges compared to SMBs [24] - Management noted that the digital ordering trend continues to provide a tailwind for the business [42] Other Important Information - The company hosted its sixth annual Beyond Four Customer Conference with record attendance, showcasing its products and innovations [12] - The company announced the appointment of Parish Chapman as the new Chief Sales Officer [14] Q&A Session Summary Question: What does the Chipotle pilot mean for Catering Plus and top 25 brands? - Management expressed excitement about the Chipotle pilot, highlighting it as a multimodule win that validates the Catering Plus offering [29][32] Question: Can you provide more details on the gross margin benefit from the cost of revenue adjustment? - Management clarified that the one-time impact was approximately $1 million, with expectations for gross margins to decrease slightly over the year [34][35] Question: What are customers saying post Liberation Day regarding input costs? - Management indicated that rising input costs are a challenge, but limited service restaurants are gaining market share during economic uncertainty [40][41] Question: How does the company view its competitive positioning? - Management feels confident about its competitive position, citing strong gross revenue retention and the mission-critical status with customers [62] Question: What initiatives can be expected from the new Chief Sales Officer? - Management highlighted that Parish Chapman will focus on bookings and growing relationships with existing customers [54]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $80.7 million, representing a 21% year-over-year increase [14] - Platform revenue was $79.2 million, up 20% year-over-year [14] - Active locations increased to approximately 88,000, adding about 2,000 locations sequentially [15] - ARPU for Q1 was approximately $911, reflecting a 12% year-over-year growth [16] - Gross profit for Q1 was $49.2 million, an 18% increase year-over-year, with a gross margin of 60.9% [17] - Operating income for Q1 was $11.5 million, up from $5.6 million a year ago, with an operating margin of 14.3% [18] - Net income for Q1 was $11.8 million, or $0.07 per share [18] Business Line Data and Key Metrics Changes - The company added approximately 2,000 net new locations in Q1, driven by strong customer deployment activity [15] - Catering Plus and Olo Pay card presence were highlighted as key growth areas, with significant customer signings including Chipotle [4][8] - More than 70 brands are using Olo Order and Olo Pay for digital transactions, indicating strong adoption of the platform [7] Market Data and Key Metrics Changes - The company noted a strong performance in the limited service restaurant segment, with same-store sales gaining share compared to full-service restaurants [22] - The enterprise restaurant segment is expected to be more resilient during economic downturns, benefiting from a trade-down effect in consumer spending [22] Company Strategy and Development Direction - The company is focused on scaling Catering Plus, ramping Olo Pay card presence, and increasing the number of Olo flywheel brands as part of its 2025 priorities [4] - The strategy emphasizes leveraging guest data to enhance customer engagement and drive profitable traffic [45] - The company aims to maintain its competitive edge by expanding its product offerings and enhancing its guest data platform [61][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties, citing historical resilience during downturns [22] - The company anticipates continued growth in digital ordering and technology deployment among restaurants to improve efficiency [21] - Management highlighted the importance of guest data aggregation as a key competitive differentiator [12] Other Important Information - The company hosted its sixth annual Beyond Four Customer Conference, with record attendance and demonstrations of new capabilities [10] - A new Chief Sales Officer, Parish Chapman, was welcomed to the team, expected to focus on bookings and customer relationships [12][53] Q&A Session Summary Question: What does the Chipotle pilot mean for Catering Plus and Top 25 brands? - Management expressed excitement about the Chipotle pilot, highlighting it as a multimodule win that validates the Catering Plus offering [28][32] Question: Can you provide more details on the gross margin benefit from the cost of revenue adjustment? - Management clarified that the one-time impact was about $1 million, with expectations for gross margins to decrease slightly as the year progresses [33][34] Question: What are customers saying post-Liberation Day regarding input costs? - Management indicated that rising input costs are a challenge, but limited service restaurants are gaining share during economic uncertainty [39][42] Question: How does the company view its competitive positioning? - Management feels confident about its competitive position, noting high gross revenue retention and the mission-critical status of its services [61] Question: What initiatives can be expected from the new Chief Sales Officer? - The new Chief Sales Officer is expected to focus on winning new customers and growing existing relationships, leveraging his extensive industry experience [53]