Olo Inc. (OLO) shares experienced a significant pre-market plunge of 7.63% on November 8, 2024, despite the company reporting better-than-expected financial results for the third quarter of 2024. The stock's decline came amid concerns over Olo's profitability, despite its strong revenue growth.
For the third quarter, Olo reported adjusted earnings per share of $0.06, beating the consensus analyst estimate of $0.05. The company's revenue of $71.85 million also surpassed expectations of $70.94 million, representing a 24.3% year-over-year increase. However, Olo reported an operating loss of $8.5 million for the quarter, which appears to have weighed heavily on investor sentiment.
While Olo's revenue continues to grow at a robust pace, the company's ability to achieve profitability remains a concern for investors. Despite the better-than-expected earnings and revenue figures, the operating loss raised doubts about Olo's path to profitability, leading to the significant pre-market sell-off in the company's shares.
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