OLO - Earnings call transcript Q1 2022

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Operator

Good afternoon. My name is Arial and I will be your conference operator today. At this time, I would like to welcome everyone to the Olo First Quarter 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. reminder, is a recorded. As Instructions] the being conference [Operator conference to your Ms. I like the over Relations, would now Investor turn to of Olo's VP Daukus. Stephanie Please go ahead.

Stephanie Daukus

you. Olo's welcome conference Thank everyone XXXX call. quarter earnings to afternoon Good first and

me CEO; Peter and Benevides, Olo's and today are CFO. Joining Glass, Founder Noah Olo's

forward-looking responses are of which our include, our beliefs represent our statements and During and and today, made. the may strategy. limited questions assumptions regarding and results, guidance of some opportunity, your call as growth date business, total our statements such contain These discussion only not and statements are our to forward-looking financial but markets future statements, addressable to, of expectations

to and filings, differ forward-looking annual our from in Form subject our risks release earnings in described XXXX. such our materially statements SEC including December ended that and Forward-looking are results to those statements described risks factors XX, included and press XX-K year our actual in are risk for our the on uncertainties could report cause

page to short Relations comparable Form X-K ago. Investor This the measures most earnings is the as after call, rely our no are a GAAP Reconciliations on undertake predictions Also on an financial non-GAAP SEC. we future is GAAP reflect as of our call statements included or the issued while statements in the release, to earnings directly this available both financial during forward-looking We to events website furnished circumstances not any during in this of which exhibit our available events. made we'll updating obligation present should forward-looking measures. and release today. and You of

earnings our one-time offer be to or these more Olo. of we the periodic in reports, Relations our provide nature, to about may our metrics. may today's release, in a we be additional not website prepared With future an SEC advised at Please of me in encourage webcast incremental response learn or access the you Investor let visit detail to to questions, in I may update Noah. on this replay turn investor terms and to that, metrics. Finally, investors.olo.com remarks your presentation, that may or over call call

Noah Glass

Thank platform Thank time first as year-over-year, platform In profitability quarter you everyone. continued you, locations XX% Stephanie. us revenue and momentum supported Hi, volumes. today. spending revenue We with active transaction for onto growth Olo's the grew the coming in continued. and our

platform. XXX XX% active location utilizing brands to approximately our year-over-year restaurant surpassed XX,XXX Our count more ending increased than and we

to Both leverage engagements and marketing creates our on weeks. both marketing adoption of return a had This with well growth. power the and to matter module decisions which automation the brands guest campaigns, module, personalized brands Pollo marketing expanded for investment Wisely acquisition. data automation campaigns to and business provide the in or quarter customer as in and we order our will CDP the El CDP enabling their leverage which Notably modules profiles, of unified as increase platform our QSR ours success Loco, Bojangles offerings customer front-of-house platform solutions, through deployed

first to C in the ordering adding enterprise stores. Kwik help ready-to-eat Olo's to addition platform, customer convenience an meaningful its XX,XXX we deployed our coaches the Trip, C his expanding locations. brand and connecting took harnessing quarter, as addressable the member or In to enabling Olo, at Also, this legendary guest to to we estimated the module type dots Danny store, new experiences. meals. strides guests be the hospitality, enlightened to members vertical enable platform enabling the an towards quarter, And data party order personalized define by count of and brands team Below C memorable we added Meyer deliver to emerging quarter, restaurant digital for board "always power we which total Multi-unit this represent a several stores guests digital first helping new restaurants an to hospitality a make stores built of guest so." and are ultimate data purpose platform with industry, regular. restaurant ambition and customer we're enabling hospitality scale, like those to every With the at feel connect all to do location for enterprise the speed dots

on append Serve, by advancements product fast by XXX% restaurant our Nando's technological a cases our expanded than orders we increasing year's existing guest features digital white additional using these its our serve I experience first, deploying allow Both platform our to products highlight module on to a extensibility ordering of quarter showcase to dining First to branded opportunity. its as our quickly earlier, of use utilizing platform's these examples as to one casual And time. store Trip. Kwik per focus more we system began and platform's standpoint, premise enable at product ordering examples market premise ability label the ordering exclusive experience. from and ability to elements highlight our include, mentioned ordering. operators in our expand And two on the

grew and systems, partners that which Xth. operations, additional technologies ecosystem more encompasses which guest the open improve we and ordering, partner technology our profitability on-premise management, enhance labor technology management. to experience in operator network closed connects inventory by acquisition now Second, kitchen XXX than to apps March increased streamline efficiency, and display we XXX than through Omnivore, providers more our Olo's partners on

reminder digital that the guest enhancements Olo ability to well publishers Third, will better search. restaurant Sync's to for orders provide date return introducing offerings continue product, enhancing more consistent we These abilities, matter no operations Fourth, tools adding synced experience. digital adding and guests operators ensure drive programs, where increased as enable digital management to discoverable tracking listing through invest to manage to with improve as digital in reenable added platform, simplified data to restaurants listings a direct the investment. to career provide between we restaurants well to on their to and our than feature premium enables operators improving automatically Olo real-time listing as is store as information XX ordering. local ability be a the Sync, is new up which

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footprint approach to way to At of is streamlining one digital of demonstrates session, my the their one transacts restaurant guest payment digital guests. modern four Olo experience. further will force expand their as or At to the understand the conference, and customers digital its their operators the BeyondX protecting delight the the focus and operational months prevention while a excited options. elegant BeyondX, in use Pay, revenue, existing is general Director ability more a experience benefits. on and In testimonial, and stack solution, world from Olo's their stated At that during all the conference of that alike, at decreasing the explored mission Olo during the Pay and named enthusiasm creating enables Olo not heartened our more fraud business choose Technology is within about stated our Kinsinger, to restaurant digital to panelists brands space our ultimately, experience. solve to Olo every view guests Olo our Pay's were in the deepened failure Their their hospitality. serve a walls experience drive released and with to platform, challenges, casual Furthermore, their restaurant unlock reflect guest highlighted Corp. programs, between guest of significant in payment platform, fast a reconciliation, credit order Grill, allowing technologies reduce through guest Adam for that Olo ways and launching, data chargebacks, to the Olo by platform restaurant. Grill and enables since and a brands, customers mainly less vital beyond breakout compliance, even availability an payment, fraud And immense, the orders increase the WaBa industry-specific of them. also BeyondX their leaders daily credit and Apple the belief efficiency, Franchise benefit but payments seamless processors from brand new Pay, have. Pay customers serve on-demand and and WaBa card operators to and Google customers conference restaurant card, platform than just Pay. for allowing expanded maximize can interest in standing Pay's we're and the that room of of friction traditional recently only in fraud, our the three PCI Olo guests Olo doesn't Pay's

Another double orders. panelist for $XX that be chargebacks fraudulent the order, be fees average or in said check which fight from order can to could vendors an orders some

and additional reducing vendor fight fees, integrated for friction guests. was solution for fully Olo And However, rates while chargebacks also borderless Olo Pay's Pay to authorization palpable. enables capabilities excitement increasing without restaurants

that and this deploy fraud a the borderless and about harness and our frankly As four innovation connecting single expand tools the Pay a on win-win, at can drive solution and to restaurant and observed platforms and example of technology-dependent the across and we with payment indicated Olo ability adaptive integrated capabilities. focused our brands, speed a and are restaurants, we ability We answers This the product intent stack their their full guests. better digital and locations, positioning to enabling our suite innovative, effects, restaurants, we're digital I'd secure, us to million Dispatch restaurants provide and to effect innovation typically with network all and customers. end lifetime platforms differentiated love with to confidence do provide excited tap must net enables our our than believe well continued gives programs, through customers in that in to customers and guests of Rails, we to that to any data updates. their tenets, digital two have what unique hospitality, vertical to customers to Unprompted, and with digital technology Olo open increase of remaining digital hospitality operational Pay means capabilities, and kind is service as us order XXX digital checkout that at of guests to across leverage panelists, to provide efficiency, benefits on cannot. Olo delight later earnings equipped and In The can of interact their payments our network value, year, for with deliver gets ambition a our than Cortez plan revenue, call. providing as solution We at solutions finally, their Pay significant are to prevention, thrive to our are the with benefits guests. in XXX models, integrated Borderless, customer corporate the enabled offering to case use continuing seamless extensible, a that data The to as future that a calls, Olo. as easier this for It's for networks, hospitality solutions of of behalf which introduce choice is enjoying is And guests. can on truly was Olo ways. that participating securely getting in fight all our These is reliable the build believe And focused partners, denominator true for industries another customers unique informed chargebacks, and execute allow represented That XX,XXX Olo committed ever, within more advanced result relentlessly return, restaurant common the others its on various subsequently now due a I right. financial reminder, scale. world. enable to restaurants enable higher will at while in scale. XX I are is who said hospitality, our future to customers like core quickly borderless purpose-built more Olo seamlessly on differentiated

executive proven as Olo scaling the market seasoned and record to public of companies Panama Diego He's deep worked for a and SaaS experience companies knowledge as Microsoft go Diego customers. of most is scale. as welcome transformation team track to Chief thrilled the I'm First, bringing successfully global executive innovative tech digital Officer. domain at well a on company Revenue relevant to a on enterprise LiveRamp scale some previously with including

opportunity. importantly, Importantly, will tenure. Revenue data. execution support restaurant Officer initiatives, has at leadership of a congratulate marketing can sales strategy leader to guests in and growth the as part Marty his impact July for significant to their Customer we data to growth a share Diego plans with in and of his and retirement Olo's for understanding our an brands, On thank entirety how Olo industry. with business, him Marty scale next And the the the look entire of will Diego pleased Diego of like and of I'd our has all Chief our Officer success, in toward relationships update as our they chapter an guests its great their customers drive key our role Olo throughout Chief digital and strategic and to Olo's his restaurant initiative. lever and operational assume been dedication brands of increase hospitality his behalf retire. digital I'm and and second, as team. Hahnfeld beginning Good champion applications, integral XXXx a our realize connection on drive as current of all Marty those data customer use enterprise throughout efforts to their for by leveraging in

the and we donate movement committing a X% joined of XXXX time, our launched product As good. reminder, and to for doing a to in Olo Good equity pledge X%

donating donor to Tides over X% we to independent Tides years Olo to make grants Last advised shares XX recommended managed organizations. Foundation non-profit part fund As of year were committed that our by Foundation. of we nine

from increasing This our The grant quarter, and recommendations, waste of Emma’s we following total, organizations, Tides to Initiative, ending to donor Heart with recipients Project, fund American $X.X second Appalachian Trail LEE advised our Torch, of Initiative Dinner, Forests, Let's round Conservancy, Foundation Giving grant in Kitchen, in or Native and Kitchen. the Grant The on advise resources Employment to and nine million inclusion, non-profits supporting restaurant emissions. industry’s childhood Empower natural food, are equity, hunger Central Partnership Americans, and focused World and Okra reducing diversity, workers, protecting access the and frontline The

We Peter? details social use do continue to to well to more love over first like about ability Benevides, to good platform in communities. our be now Peter enthusiastic things positive Olo parallel. do CFO, turn as And and share quarter a impact for I'd We to on Olo's our Olo's for performance, to and change

Peter Benevides

in active of digital transaction which revenue to the million, volume within by and revenue and enable hospitality Thanks, industry. XX% Noah. in digital our an increase $XX.X million, platform, quarter In year-over-year. coming the helping continued grew of the the the mission-critical nature ordering. of on the XX% solutions, location $XX.X an first was and an locations of multi-partner restaurant durability multi-product on was to quarter Total growth, increase further first first are quarter, driven year-over-year, increase adoption revenue in demonstrating the Platform

XX% the ended sequentially. we key year-over-year, terms X% quarter platform, a XX,XXX locations In metrics, active increase of with the on increase a approximately and

XXX%, to representing As amongst new decrease in year-over-year, quarter approximately Trip, was and which moment Net ARPU The in cokeworks expected, the than due which less a sequentially. as I'll others. revenue a X% factors. such two first quarter was decline and retention increase year-over-year in more deploy detail Kwik brands we revenue TacoTime, the speak was periods. ARPU was net recent X% in for approximately retention as a first to $XXX, [ph] primarily

the during to were pre-vaccination behind product in customers quarter, the quarter, and customer the lap pandemic, this impacts our such front-of-house these solutions. past quarter as this to last of we quarters, we impact net And in our modules, retention under which Olo Pay of XX time operating volumes past in period elevated. First, residual ensuing prior to of dynamics stimulus the two second, order continue we lapped financial the final ARPU continue But as agreement. and additional accelerate us, engagement DoorDash the revenue expect see adopt COVID

total million, and expense was to of driven million This ago. and XX% new to relevant $XX.X growth and to or the General or $XX to year as quarter expanding ago. securing expense revenue $X.X ago. compared for Research revenue. For referencing million, expansion the XX% million first relationships, remainder to financial $XX growth for by by the and and compares Year-over-year a well year drive a teams driven increases year was unless $XX.X I the other and recent metrics active our $X.X of noted, previously expense higher the measures. Gross onto quarter Sales and otherwise profit disclosed year compensation the or platform, mentioned, platform the a were near This XX% existing be financial growth period, administrative XX% first in by quarter total as further the as and to revenue non-GAAP a Omnivore million the increasing partially compares the the $X.X prior offset partnership for of will for and ecosystem. and our to to marketing total revenue. professional due compares coming XX% service was of as and by million $XX.X acquisitions. XX% costs locations impacts revenue. well quarter was and of first support million, transactions Wisely development term first million, continue This

public associated as were due primarily costs a increased with operating company. expected, increases As to

$X.X public increase lap operating expect a total of Net was the year percentage the share G&A fully based first average we $X.X with quarter million, $X was in million, Operating income quarter shares in revenue. associated a outstanding. forward, company, a the Going for to on compared initial million first to $X.XX diluted decrease approximately $XXX.X per weighted costs as as as ago. or we income million

the Turning cash our attention statement. sheet balance and flow to

securities of equivalents XXXX. million was March $XXX.X cash XX, cash, as and Our marketable balance

million, million Regarding the provided for flow guidance our in net compared activities up compared million and used I'll $X.X operating providing to to wrap a year Free cash negative cash $X second cash of flows, XXXX. quarter ago. cash year was ago. by activities $X.X operating $XXX,XXX, by net a full year was

in the revenue we and to For non-GAAP operating of income million $X million. of range second expect million quarter, the $XX range $XXX,XXX $XX.X in and the

now the For revenue we $X.X million range in and $XXX non-GAAP expect million million. the the range of operating year XXXX, $X.X and income in $XXX fiscal million and of

guidance there are terms year, things to few for In of a the highlight.

First, incredibly ahead. opportunity remain the we market about excited

the Now COVID-XX of a that guidance. lapped implied the anticipate and growth we in second our we pandemic, of as impacts have quarter reacceleration residual year revenue full

Additionally, customers guidance. have the revenue by while contribution regarding meaningful our we're Pay, our of availability from we commercial the into factored any not excitement Olo encouraged overall

Noah we quarter second X. the which be March as Omnivore will closed Expenses the million. acquisition, were Conference. feel the the impact second Next, BeyondX quarter, which our the conference Also mentioned, related first in of in $X the to April, quarter hosted full approximately in we on

growth to we deliver revenue in as enabling full outlined digital summarize, guidance. achieving we profitability following take year we expanding the continue and strides a and profit anticipate the profitability our second quarter, As meaningful operating result, hospitality. towards To

adding to turn through cross-selling session. use Our a product for of suite, begin long is platform. now have over the it runway and the Operator? comprehensive locations, our like to operator strong and Q&A as growth robust the we I'd to expanded cases through more position

Operator

Thank you.

session. Instructions] go will Please Our from the Stephen question ahead. We question-and-answer now of comes begin [Operator Sheldon first Blair. William

Stephen Sheldon

Hey, taking my for questions. thanks

Sounds had for like you've Wisely. some customer nice wins

there. think add you level revenue And, customer interest potential seen $XX base if curious to contribution million So kind in existing $XX before modules? what to -- Wisely of you've I potentially can million of you've guess, of talked about your share

expected are you about XXXX, you still seeing you'd think talked things given maybe on last talked meet for track Are about now? are than you quarter, that originally still you're what I there? to that going you better

Noah Glass

to the this take and is Hey, then over Noah. it first of Steve, I'll question Peter. hand that part

So to digital piece engagement. this I the you want about on up really that pick wrote morning

and into we with it where sets from that that data brand's drive sort based the for in with what way digital, hospitality. Ultimately a flows interactions and taking personalize data like think and to that as of having serve those the engage that ability on kind ambitions think better guests we to better and terms of they've their regular of to it toward use and gathered where guest consumers of unlocking table feel the the to digital brands I fits XXX% using of their as a experience. every are Wisely about guest that

is understanding banner beyond we those that huge and from look our over seen really seeing hospitality the when of platform of at of amazing your of brands So live. being customer suite, what sweetgreen now that to ago. lifetime are really we digital, go you're we're we guests? our these to suite, value XXX% more how use just for and Wingstop especially now get our Wisely already up, gathering really I see piece interest brands, as guests. weeks from acquire that's of this best a XX% drive represent of now data which excitement have also that all and guests a our the And brands and in noted do customer interest unlocking digital automation our of and at like And you under at have at that And few saw the broad solutions XXX components information as from and what XX.X% digital, in that part great customer think marketing but ambition think and digital base that all of marketing, learn we conference lot a tools digital,

Stephen Sheldon

go Got it. Yes, Yes. ahead.

Peter Benevides

sorry. Yes,

up Noah picking left is Sorry. there. from That Yes, correct. off just where

the dollar with we encouraged made the year revenue really our target is we're maintaining quick targeted we revenue. mentioned some we've And still of line on that our obviously But call. terms that in of In that for wins the progress still and goal. are the year, four million today, with and that fused

Stephen Sheldon

hear. to then ask, I'm wanted initiatives talent your just lot guys able and what you've to about seen and And in a just you ask have Great attract retain of them to underway, strategy, talent to talent existing new trends wanted being this environment.

If year, you you in and point over the this well at push think the maybe this staffed to are about place? forward you have next couple, initiatives

Noah Glass

and Hey a that Stephen. talent needs we're talent, a good lot and This is we have an in and Yes, the mean, of all forward. with Noah, really about on team jump and again, fill our to driving there. ability pipeline, our roles as I'll currently are a I that different of ambition feeling organization capabilities our lot

we different particularly that the general excited brought the managers I'm is business have as talent the that, units. things company into about roles of One various the in of

many about so new ordering have business network have general GMs product broadly that's from it's things have then that initiatives and of really about, speaking. as managers our unified groups. of operating meet that are units and talked to focused our and of we house needs on Pay, And are market an responsible are areas those partnerships CEOs also team fronts, of customer the all things design and a Olo where, in have product go that exciting payments, each we customers, as we four are who the and excited great we're leaders, And and direct our another those incredible teams for syndication and who business. mentioned, And those we leading the we engineering them engagements and underneath to on front almost rails wisely initiatives initiative like

Stephen Sheldon

and results. to Great hear nice

Noah Glass

Thank you.

Operator

Tillman Our Truist. Please from ahead. go next Terry of question comes

Terry Tillman

my Yes. Thanks for and Stephanie. Noah, taking Peter Hey, questions.

kind I over of that I'd had was brands you're right. seen course of to of got where the typical platform. kind the you've brands impressed quarter that being click double moved, hopefully, or from new indeed, to to we've onto First I XXX seeing products with itself customers question how I a actually behavior customer brands, buying platform, in? just of the XXX just manifests multiple think just either But they love the added I've coming the Is or brands if this next a being into, incremental four parts in kind starting revenue, this could or for ended have that we're with kind changing that year I So because one? of, their expansion that follow Peter? I Isn't year? It's if and they brands up of environment Are are like buying repeat inflationary to. up is,

Noah Glass

little brands, I'll customer so All we brands, XXX now quarter. thank were if for question. the Yes, more you locations our and our Those discussed have five as XX emerging enterprise as a expanding that enterprise base is classify as Noah. XXX right, I and the definition segment then We're we talked of into touch market. think XXX locations. or we our bit part I brands over multi Terry, over we well, areas. we see about define between can all focus some those last quarter This on last the what of are is this

So a enterprise their are emerging of restaurant segment. brands from lot with Olo starting that new of expansion that relationship

tools, has these become nice for these marketing COVID automations to digital speaking, certainly certainly COVID have commerce, I now ordering marketing not there. every and are broadly argue and what must digital EDP, clear, I before through have a is capabilities are platform, that digital out think would brand

with to we zero the seeing software up capabilities is help now brand all guests. And growing their with digital engaging platform, offer. to changing, we're Different Olo we then digital, brands XXX%, stand have direct that seeing utilizing XX have And modules. to forging we from Olo And can really relationships so really itself those go that a and

But acquisition. organically to for So of and of software new all number into their have the ourselves those and see by with to the our through go digital we platform. brands I for get started software relationship time think, Peter of all can have more of opportunity further both modules grown the how modules, total dramatically, have over it's brands brands faster utilizing more exciting in us really the transformation their

Terry Tillman

multi got solid question. was response That to you. yep, it. my Yep, Thank part a

So just there's, you I added gross from the up the Noah. it couple margin. I'll thank question on acquisition. stacks you mean, -- Peter, a like of give technology is sounds follow you've

at could think level? Or of Or there's you. just maybe gross to you the Thank the see we rest bit? about starting duplicative So margins actually costs? year? this them be do a they more how improve Would

Peter Benevides

Great thanks, Terry. Yes, question.

holding the I those of month a Omnivore the a then gross lower with acquisition think trends the longer margin Wisely seeing from over than of the the and So volumes. term, acquisition one quarter seeing expectations, those of high as are the increased we business, to XX improvement we've think onto transaction in in some align and impact seeing full guess with experienced although, period And our what I terms all of both integrate you're I growth and you better that wisely the to months we scale. in omnivore begin you're line past with you're Pay, locations and investment acquisitions of that number a core XX expect Ola gross do level, to of of leverage as see to can the margins aside coming the to growth also in and we're mentioned, continue platform is some economies profiles

Terry Tillman

Sounds good. you. Thank

Operator

comes Capital Please Matt of Hedberg RBC ahead. Markets. go from question next Our

Unidentified Analyst

Thanks This my for an Anusha is Hey. Matt taking questions. Hedberg. for

and products expand You Product with mentioned we've four long Multi now seeing momentum the way. products you're you reached from a could have talk products across then come you platform from customer base? during help and how IPO, you And five penetration stickier? adoption, the Could Olo on three eventually can certainly of maybe make products Pay Wisely if your in about level Thanks. your

Peter Benevides

I this is so Yes, I here. think -- could Peter

those I one two could So I questions probably into answer. think bundle

spread subscribe And So we noted, locations, to disclosed five of have dozen you on X.X location. products average upwards that, we quarter as last a there, across suite. product per modules

of ARPU increase lot there's obviously, help there. growth opportunity within when both and base, and our to well. So order will opportunity volumes time think about expand over you revenue as And a customer the to future clearly digital

In rates, suite where Wisely the in the lot seeing onset of suite early the that attach still of seeing the of rate motion. terms it's momentum platform, relationship, the of business, and early terms success core from Olo a of full specifically, we're through attach in is upsell

where brands So the suite we're leveraging them in the marketing ordering the years, early with having of seeing conjunction on added suite, helping value a a that platform. educate automation lot and we've with over really those developed trusted success. That's of their digital CDP relationships and

Unidentified Analyst

Olo we to it. about from develop still then can And more when Pay to contribution maybe adoption start Pay early, on it's Olo then of and Olo although might Got the the Pay? quarter, trends meaningful you in talk see

Peter Benevides

I Yes, can it's Peter here again, take one. that

So still terms of in trends, still, little adoption a early.

month terms this lot but customer the So momentum central long-term, building. where in we Noah of we of is Pay and be of excitement we're think narrative quarter around in quarter as seen of remarks, availability Pay a had year and how early Pay pipeline still the level today. what a the said, is will pipeline revenue And on to go able the lot deeper with a developing encouraged a really out think conference. we're focus his Olo we've Olo maybe of conference the past I of commercial and Olo a being That the a opportunity this last we conference, that great coming of in was prepared announced mentioned

Unidentified Analyst

Thank right. All you.

Operator

from Piper Our next question Please of go ahead. Bracelin Sandler. Brent comes

Clarke Jeffries

is for on Brent. Jeffries This Clarke Hi.

is seems attractive the from as not very is, payment Pay detail outcomes being wondering integrated Pay much to a just if into option on judged could newer customers, I because That'd customers a whether solution existing this focus Olo very Olo feedback be architectural that advantage encouraging, some you're it but if an compared question merits maybe for share be those on judged that. is chargeback you sounds it. fees own or by was especially dive could how to some its to vertical you appreciate do First attractive. a able an advantage, the for additional of incumbents reducing

Noah Glass

Thanks the Noah. for is this question. Clarke, So

is Olo over commerce to the bundled the have think, Olo incumbent Pay’s is key really advantage understanding payment that solutions Pay itself. So I into understanding platform

consumer experience. on email implement Olo from for to within can that rate. is higher the experience on experience that the bundled And operator guest their end experience. end, commerce the that have makes checkout Pay to They back the conversion address eliminating the for front basket that means card their checkout into And don't leads on doesn't so they've so better that friction It checkout to that we the platform one-tap experience, front-end remember a a re-enter also embeds password used. and the details have credit

refunds, or places. when the And can ordering, payment chargebacks, you in the and And Olo dashboard the is a manage refund, is in digital and to card with platform, they different think for card operator that payments status Olo digital platform, means is transactions really and they quo today, a so digital processor they Olo With Olo transaction there's about they all if gateway using a the into their And can that two Ola brand within that systems, the away as the card whatever goes that Pay, acting administer brand or managing the when dashboard. two the credit there's dashboard, can at manage within credit chargeback, that things ordering present restaurant. for manage Pay. the ordering, is have

network is Shield, our that across have ability can within also network. partnership Stripe And think Stripe effect prevention and to Radar platform our and fraud restaurant the which So has all great that And for we see platform particular, single operations. it across Olo ordering fight the own through of solution, we becomes the manage see operators with their proprietary to digital product of the Olo the a we and against fraud in advantages can then the and Stripe business. simplify helping transactions that Olo

It’s are things also the restaurant. replace experience brand that consumer, processor competition just also it using not of has for to Google Apple that transactions, with Olo or Pay. ordering require it I card the the Olo completely and part also Pay. experience in It it And there is inside is is Pay Pay, purely clear or the side. processors Apple on with simplifying and advantage is not just of Google of whatever that's also digital seamless operator Pay, in So for doesn't the competition -- Pay. I the credit making want to be about their operators rip and that a

Clarke Jeffries

just It the sounds convenience it. benefits it's automation integration follow-up on like XX,XXX to locations, you marketing like simpler terms something question a potential operators wondering Appreciate maybe about How in a the into expansion for building friction like seems platform, A could of even points the meaningful expansion the the have helping of Olo? stores, stack. brand. they if adopt businesses normal dig available are they modules to and similar And into enterprise could restaurant partners? by franchisees, businesses different the from operated the how of owned they operate? of are those all compared sort that Are

Noah Glass

but we make not only probably at the with some C-stores may So think really don't that that. sense I I see is It module make for sense offer reservations that our platform. point, I C-stores, does think can

that behalf. restaurant ordering, with a a into just et time, how sell point-of-sale a off to is coming look that or preparing some into now we're And that guess, just the brand. well made and that who selling in on we're those the I anyone stranger on the base, dozen, with C-store where made then like that's whether order And think we are and in handing courier fresh orders, collect similar I guest who's they're to two in it's those are perspective, motion, the integrating to do well they're no to to many a perhaps three that location custom marketing, different the orders in taking then or restaurants, over C-store franchise-owned. order digital similar, integrating coming integrations a delivery who's adopted go-to-market extent order we automation, And To we're the to working them brand. else across prepared delivery, is everything instead C-store very the takeout for corporate-owned go-to-market operators enterprise to From over from These always of guest’s that point-of-sale Olo. offer have of And Olo and space. integrations. food. dozen that. specifically resonance we We've doing point-of-sale point-of-sales have cetera. done We're entire food.

looking that opportunity Enterprise setting new just be very think I with we locations of at a in XX,XXX TAM, segment. the a So U.S. estimate our additional C-store us to exception, familiar for

Clarke Jeffries

you very Thank much. very you Appreciate much.

Peter Benevides

Sure.

Operator

comes Brad next Please go Instructions] ahead. [Operator Stifel. Our from question Reback of

Brad Reback

million down we had If much. go Great, very the Can profit Terry margin gross sequentially. actually dollars I question But thanks gross grew look that to brought went at up? $XXX,XXX. back revenue $X.X

margin, So in happened there what incremental was a negative exactly gross the quarter?

Peter Benevides

Hey, Peter, here. Brad, so

had on in able we do out were earmarked ads. investments we of I year headcount transaction of later the investments business. had those want the to months some catch things XX that quarter month that net acquisition, terms well that on Omnivore that the the some have ability with sort occurred core two happen in Wisely acquisition, is we acquisition, impact past over through thing the growth year. of them respect But and full some up core we the really, active past impact the to and call as then volume in So to of to XX for take as had of of take the One roles through growth business support acquired to forward that's one back folks location half and the the this activate quarter, from the to Omnivore the earmarked we

year. you're capture were those to what there that some of we So, have the We year. just an those part acceleration able expenses of planned of in is already seeing really the earlier in had

Brad Reback

much. very Thanks Okay.

Operator

like concludes remarks. closing the I'd Glass for question-and-answer to conference to the Noah any session. turn This over back

Noah Glass

Okay, you again well, all us joining today. for thank

your Olo and this excited thank say for hard As I We're our hear to session. you presence, We're and our prepared Q&A I of and in our the work hope team those can content from past. proud you confident we're of for execution. future. want really all remarks

go we have sleep. We to miles before

Operator

conference today's concludes call. This

may You a participating pleasant and lines. disconnect Thank you your for have day.

Olo (OLO) 11 May 222022 Q1 Earnings call transcript