Olo Inc. (OLO), an open SaaS platform for restaurants, saw its stock soar 9.75% in the after-hours trading session on Thursday. The surge came after analysts expressed optimism about the company's potential to break even in the near future.
According to a consensus of 7 industry analysts covering Olo Inc., the company is expected to incur a final loss in 2025 before generating positive profits of $7.8 million in 2026. This implies that Olo Inc. is projected to reach its breakeven point just over a year from now.
The analysts forecast an average annual growth rate of 110% for Olo Inc. to achieve this breakeven milestone. While this growth rate appears optimistic, the analysts note that high growth is not uncommon for companies in an investment period. Olo Inc.'s lack of debt on its balance sheet reduces the risk associated with investing in the loss-making company.
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