OLO - Earnings call transcript Q4 2024

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Operator

Greetings, and welcome to the Olo Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Gary Fuges, Senior Vice President of Investor Relations. Please go ahead.

Gary Fuges

Thank you. Good afternoon, and welcome to Olo's Fourth Quarter and Full Year 2024 Financial Results Conference Call.

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

call, to make our of a this These as statements could our During of we'll that and risks statements regarding differ limited but operations actual are and cause our and to, reflect not today our uncertainties expectations assumptions financial and variety of future business, materially. beliefs industry, forward-looking our results results. statements, only including, to subject

detail and filings. Also risks measures. XX-K, both page available is material our please of on prepared our that call, may these refer incremental today, terms comparable Form Investor with update of metrics. discussion our Please the questions, future non-GAAP Reconciliations not on a present over in nature, provide or remarks that, our uncertainties, an may which directly in metrics. And and additional be in most then earnings and GAAP to to advised we For website. And the release, to your and financial we'll call we turn the and Relations GAAP our during offer may Noah. financial the which of filed be I'll to may available was measures these onetime in finally, other SEC this are responses this

Noah Glass

posted today. Team Thank you, Gary. Hi, with for a fantastic Olo XXXX. spending everyone. us Thank you time

only Olo volume. in would Starbucks than $XX a McDonald's. trailing XXX make merchandise brand second in If brand, was the ahead North largest more this For brands, of powered of us we restaurant and gross America, level sales billion

billion Card-Present largest XXXX. And supported XXXX time last the million from payment and Day history. We a scale XX borderless Valentine's this nearly continued doubled from we record strategy. And that further across all recently on-premise Catering+ continued our today. Olo's to was functionality payments Engage more support X day new X data transaction innovated year Olo business aggregate and sales features in Bowl growth, at Super product a exceeded launching and Sunday scale income that Olo Olo's volume throughout $XXX reliability We than that to $X.X suites to our and in in helps power than Pay billion, and published introducing non-GAAP gross our also performance and the data million accounts increased strong ranges. results million up revenue including year, we QX operating in guest $X financial guidance the more to flywheel

approximately reflects, the driving our highlights, accelerating we As to then our We'll our QX fourth we adding will priorities, review full XX,XXX year serve and for XXXX. FreedomPay with while the active performance are QX can partnership guidance customer take operating locations, brands discuss leverage. I'll new your and quarter year quarter X,XXX locations full over XXXX ended full and and net then financial Peter growth profit the fourth our year continue and new approximately product our guidance and quarter XXXX. and XXXX questions. We confident X,XXX gross our in

announce rate a and retention their Catering+ year-end Blake's Costa with enterprise expanded full Crisp to launched that Order HTeaO, revenue flywheel new Card-Not-Present another Walk-On's XX%. It continued include Leading suite, launched franchise, with Olo tea emerging revenue expanded more our full deployed in Card-Not-Present. the brands relationship you Order proud growth implementations, modules of all excess we brands. We suites: of with Catering+, deploying Pay in Olo evolved and a Engage. Enterprise net We customer as announce is our guest to Burgerville product and also including Rails. In Olo to that excited data within flywheel Jack Olo modules. like Jason's we're customers, to year. XX% to believe to Brands emerging Box suite, to brand, XXX%, brand and retain And of included Pay and Engage ARPU brands expect that retention with full Breaking quarter and the at Vida full Lotaburger, XX flywheel customers, Olo and Pay. more deployments Olo on by across of And Pay the Mendocino year-over-year Bad enterprise of Pay. and Top & expand Olo Olo become X X enterprise, strategy flywheel for Olo's flywheel this who Green product Order, Farms base, we're solid all resonating fans, added and add gross and added Deli, iced was

Sparkfly quarter successful brands Pay their Catering+ Dispatch. And another brands. enterprise Diner this Bear management month, need relationship we member in and and to enterprise deeper this a our to our and FreedomPay, about enjoyed FreedomPay's emerging and XX with we Cane's, with released believe leading Catering+ was an a give start reasons. increasingly integrated succeed dozen where Raising provider, menu Grubhub, X our payment We enhanced Restaurant and enhancements will earlier Catering+ & Stripe Olo a terminals to terminal analytics is to account existing they channel this Olo gateway and in great deployments, expansion of features news and than announced important BJ's partner more channel. In long-standing XXXX, loyalty with be functionality relationship. tools for important supported new Engage this insights in include brands XXXX network, for Card-Present Rails I'll partnerships, innovation, share a exciting product the discuss our expanded gateway partnership by like with of I great our off reporting recommendations, priorities. In Finally, plans and Brewhouse, when winter integrations Black release, Spendgo more AI-powered product including and item in

a This at time. sell partner integrated and by market, location is one than already of X,XXX POS FreedomPay the First, majority to to time Card-Present our with base Olo and more with payment systems. over enabling deploy us Pay accelerates into integrating quickly POS Olo's

integration direct can POS. Second, Olo FreedomPay choice: their now or with to use terminals connected brands our we through provide through Pay POS a

Third, Pay brand today. Regardless payment build Olo direct data drive of think capture the to full traffic. We what wealth transaction FreedomPay chooses data their is a how of integration Olo to XXX-degree give Engage's ordering our for partnership help a similar us game-changer API GDP we profitable and Pay. to Pay, digital with work through and guests data data POS Olo FreedomPay personalize match an will view through experiences access that's to can and their we can stack brands guest our a of

QX. we've to take market to sales the We Pay be expect already generally this with Olo enabled FreedomPay offering team to and in by midyear, available new

focused turn we brand's Olo Catering+ to want modularity, Card-Present share after with brands on catering ramping expanding to channel. in Dispatch, to brands priorities these brand and into success management top to we In for replicate our Top through and I full a began Engage, catering seeking add catering channel. XXXX, while landing expand our XX In new Catering+'s Catering+, over can existing tech ordering base popular order building the on this also XXXX: expansion a base. to scaling Before growth into digital Rails including motion of Peter, And stacks. relationships our then our flywheel support we're the real-time the Catering+, digital new we Pay can Catering+, believe in-house winning their increasing call of XXXX, increasingly customers. With I Olo Pay in

flywheel identify all brands transaction aggregating using months, Pay California order to X resonating into sales. we maximize data GDP of power guests, products increase also of Grill its California to Card-Present Fish in using is Pay, data understand faster directly attributable and $X can from that about the marketing believe better better to marketing Fish transaction billion-plus a processing guest revenue Olo FreedomPay, Engage the suites. Card-Present And campaigns. the and ROI of which and Olo begin unlocks our business module and like within drive marketing Olo base. And a digital our to guest increase opportunity innovative XXXX In brands access and we processing GPV million on-premise, improve increase and plan who's drive data which times billion-plus the through of in transactions and can with XXXX, the these piloting This our guests $XXX is within flywheel XX% $XXX we're market XX%-plus communications a in data For Engage's number processing, growth, ramping generated while existing with operational reporting GPV strong reconciliation helps help strategy, economics to occur functionality, scale is report profit payment ramping a from in brands Olo. Brands our personalized improve efficiency. estimate X guest full Order as with XX% for to opportunity and currently of Card-Present GPV that accelerating personalized helps they base. Grill, the guests, providing known The gross we the position greater experience drive

financial As demonstrate and brands for experiences we fourth their in at Peter, are believe review the another convert we and communications Pay our highlights early members dedicated transaction over of full more the into expect combining our to XXXX the scale. I'll Peter? and rely XXXX. the further profitable traffic. XXXX to hospitality actionable year insights, of turn and more Engage flywheel We year here to to value even and we our guest with personalized Olo now quarter achieve guest we will who XXXX adopters, data be successful and mission: Olo, talented wouldn't can our team Order, committed guidance. on call without was data and who

Peter Benevides

as was net Platform strong X,XXX for quarter $XX.X Noah reliability, XXX%, locations over modules platform the of XXXX the total increase the quarter I'll quarter, revenue sequentially security our fourth year-over-year. year-over-year retention our $XX.X and approximately in X,XXX volumes another well our breadth guidance. ARPU and up as was of Today, quarter, full platform's our approximately year an primarily $XXX, revenue and exceeding outperformed of revenue and increase million, due initial approximately target activity trends. Gross above in line year for results we XXXX excluding in XX,XXX, Noah. provided the through an solutions. fourth full to guidance had retention with review was approximately first also location; to provide fourth brands up scalability, primarily new the year-over-year. retain XX% locations full of revenue Pay, the expectations. Active increased particular, Pay. Net year, new was we deployment fourth Thanks, quarter as quarter our the locations year the to XX% XXXX. In added We and were order continue mentioned. Pay revenue, due million, locations historical the XX% per remains net in XX%, Olo

of XX% up otherwise the unless for for million, profit will For financial quarter line fourth year-over-year. disclosed, XX.X%, referencing the margin noted, mix be on profit well in be QX the as outperformance call. revenue metrics the future Gross our the was the was while remainder disciplined our set Olo fourth quarter continued Pay expectations and Gross measures. Gross margin expenses financial I non-GAAP growth. of revenue. In for of gross with reflect the $XX.X QX, to managing operating this prior we quarter's we in as impact investing increasing performance

year-over-year This approximately XXX income Operating announced per As based XXX fourth all press quarter $XX.X million, of was QX, $X.X from expense of in performance release, in million increase expense today's million, cost was year for X was reflects $XX.X shares. income down the diluted Operating the September. Operating strong the percentage on a approximately both revenue fourth a basis. the in of and share, quarter on revenue ago. reductions earnings million shown impact year-over-year. outperformance. Net XX.X% margin to basis we a improved up continued quarter fully dollars were sequentially $X.XX points due full in discipline or operating late an line expense items

ARPU rose For XXXX, slightly million utilized $X,XXX average revenue $XXX.X Olo was revenue December XX%. in XX, over and modules year in of XXXX, modules increased year full Pay the basis XXXX XX%, X.X per of year. Brands the of NGOI, above per million location $XX year approximately location approximately of points X% income, NGOI XXX versus as XXXX XXXX. XXXX. Full operating million, or year-end up $XX.X approximately X.X was year. non-GAAP up XX% margin in XX.X%, was of from average as

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

provided flow timing. December Our equivalents in $X.X $XXX million million, $X.X million cash short- income ago quarter, the the to operating and of $X.X investments approximately compared million operating by XXXX. Net working long-term performance compared year flow as and was cash, a activities ago. QX metrics and cash cash totaled year quarter. Free in primarily capital $X.X million reflect XX, cash to was

activities operating full up XXXX, in cash year $XX we cash providing full generated and our the for million wrap first $XX quarter guidance million XXXX. year and flow. I'll the from free For approximately in by

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

For the range our revenue as range things the expect for full $XX we million in in of operating million consider few XXXX, outlook of and to the and year. keep income million you million. A and $XXX in the year $XXX mind non-GAAP $XX.X

rising to what industry we be expect the improve growth ordering, restaurant continued to macro and trends in continue XXXX: in uncertainty. costs efficiency We saw to in need digital similar to offset consistent a to

guidance intra-year. projects new deployment X/X currently existing in X/X, signed revenue again once from Our split a assumes deployed incremental and between and business

and the expect our to of that trends, intra-year. X,XXX to add throughout X,XXX deployed net locations approximately of new signed guidance year. initial outperformance locations from approximately addition brands in the to recent XXXX expect Note was new due in We in with count location above X,XXX, ramp XXXX, that and net primarily we line

We transactions expect account Olo continuing full Pay Olo to of year with of revenue the majority XXXX revenue. approximately vast total for Card-Not-Present $XXX Pay million,

high-single-digit-million-dollar Card-Present gross than as of and basis that year half revenue. Based year expectations, year revenue ramp versus full we the margins to Olo approximately first XXXX gross the growth contribute revenue second due the half we XXX range. Full XXXX. XXXX our compress profit points the in continue profit full growth the year expect will XXXX XXXX greater more tougher We gross assumes and acceleration the revenue be the year of to of by scale margin gross guidance with in in gross half expected be back gross year for prevalent to growth, to comps begin growth full Pay on XXXX to margin in expect to in the

and to will initiatives. manage we growth our our to continue For cost to our operating invest expenses, support while operating customers to structure leverage, drive continuing key

we've XXXX approximately cross-sell March operating our previously which profit is transaction into customer the of in model, investments to year percent OpEx per guidance we're opportunity, beginning our shared, see as million scale process margins mid-single-digit power improve. year will continues over in we and higher our spend we to time As to expect dollar versus QX total incremental the payments-led assumes range due to dollars continue payments improve payment This with play the in out. Full full conference. to $X grow annual dollars in XXXX, BeyondX as

hit We XXXX. also QX, expect was in in annual as case compensation increases to the

remind both to want our of to we profitability. commitment Finally, and investors growth delivering

business. As our indicator has profit revenue, strategy our a scaled become overall has Pay relevant played growth out growth gross and Olo for more we've

Rule a Given and XXXX XX profit to gross metric for focused we non-GAAP this, a Rule with dollars. Rule in this plus XX gross We the on from are moved XXXX based profit: gross of to percentage of way we believe is on as ended of of XX of annual XX operating Rule business XXXX basis, a on growth year-over-year a of the fair in a And income performance QX. managing business. assess performance this profit in

the growth leverage, that, begin we strategy, XXXX, believe session. posted executing level to higher we Our we'll can another up, I'd solid gross of and of in to full anticipate XXXX. perform at XXXX, even meet to QX we in Q&A XXXX in drive now it business operator this of improvement over to the XX wrap year going or in Operator? on expect operating further year will forward. With and Olo XXXX an turn see and a Rule exceed performance XXXX. To like mix We're our and full guidance year metric in we financial implies profit the versus strong

Operator

[Operator Securities. Instructions] Your Terry first Truist question comes from with Tillman,

Connor Passarella

Passarella Terry. for Connor on

customers on? in terms secondly, 'XX? Card-Present of bit one, impacting of the directional you guess, partnership. more that were expecting gave I that timeline just anything terms wanted the there I part for the And online, just First able what's turn to being comes little you is first it that then, I a dig guide in FreedomPay FreedomPay once partnership specifically just to the into guess fully

Noah Glass

Connor, thanks question. is Noah. This the for

the buried go-to-market through think Olo that have of conversations that Pay So we was some would and I customers. general team in FreedomPay already mentioned, our prepared for be midyear maybe Card-Present it we availability out having there remarks, with

started So we Pay talking had about Card-Present. Olo

year. is our we TRAY. What we If partnerships quarter, our customers, opens Pay. we Card-Present customer and talked with standpoint: broadly of for And we're that to March our then, last the you in terms from about in Olo NCR, point-of-sale volume BeyondX partners recall, announced that about an it sell this a it and direct-to-POS our FreedomPay Olo with very for and number work order Pay of last injection at addressable ability excited of payments to Qu up represents the really what conference

processing that been volume volume billion last processing being million it we at up Card-Not-Present. in for on reflecting prepared volume finished Pay, all of in billion we've it year, from mentioned of 'XX and Just on, went being on vast the processing the majority but Olo in remarks, -- $X.X the of $XXX in 'XX, 'XX, we to in that $X I journey

XXx over So X-year over a period. incredible there, growth growth

we're the about you If think backdrop of GMV, that approaching billion with $XX XX%. of

we So big to way go a still have there.

billion against If addressable that's restaurant is additional that unlocked against restaurant backdrop billion total you the from sales industry. U.S. that of the the of of billion-plus industry customers restaurant $X.X just volume in volume, $XXX what under XX% think are and billion adding our that X%. something around doing, $XXX payment Card-Present $XXX we've about perspective, of gross And

expanded to as and FreedomPay with completed, seeing about that very very, integrations move dramatically with in this excited we're given thrilled to integrations has journey, open ideal partner scale. the an progress customers, and we're Pay up Olo for Card-Present payment that POS to have FreedomPay early our all it broadly taking to so So the this really

Connor Passarella

as year, then follow-up Great. adoption helpful, point adding as a focus for on this just customers. Noah. multi-product That's And maybe a flywheel

You've the year. business. of on increasing enterprise this customers the you're module curious been what about how adoption thinking kind I'm with typically emerging just or side on of successful pretty enterprise kind doing strategies with that of

Noah Glass

to enterprise. within adoption of suites growing I think see flywheel the you suite in each of module it's modules full happening across having And organically product to some like board. even Top just see new who that with, groups and expansion adoption in get XX And announced that emerging the of enterprise, the in brands work we Box, you Rails. Olo the Jack into

started recall, using single-module now Dispatch, Rails. off that just as you'll If customer adding Order, a then adding

evangelists the then, and driving with doing is mean more job payments, really so drive a with guest, it's that correctly, to Oftentimes, proud traffic guest serve lot I experiences guest is great faster. We strategy, line, personalize are then California full So enterprise first; you Grill, by full to or brands into as data brands collate Olo erode other driving gets able able becoming restaurant to what to that, restaurant the menus the flywheel and, becoming customers. really see that see having doing in brands take using to then faster guest sequence: but maturity take and its brands order last doing of examples modules by vast that profitable that of a it love and across flywheel we we discounting then at that the of flywheel their Order from expanding more sources orders, or then doing, within along do adopting and next digital when excited data spins can in of guest traffic, XX modules. well, X.X end of driving course, data, data kind board, leaning of if shared that's the benefit to like But that to better Order, studies, by way Pay at Engage. think Engage have profitable brands stories, Engage flywheel then, enterprise it's majority and that and traffic. And we being year that went as and enterprise the the customers personalization you of We're guest data emerging a thing that job modules reference example Engage. communications out case and be in very flywheel for curve. I'm our that of end enterprise. into back this customers that And the excited guest step things suite. And the its just 'XX. from the not that great Pay; Fish really by we flywheel, And what that of X.X up as seeing bottom personalize for value hear to

the way We product go get of each of have way all and brands a to within using the suites long all those modules to of to all suites. those

Operator

Next with Hedberg, RBC question, Markets. Matthew Capital

Michael Richards

early, This It expecting hear Richards still looks any can have acknowledging of great was Pay? the Card-Present Pay what early to like change time? And over like weren't Matt. that just saying? from gotten any what idea early it Maybe about the on they maybe coming your force look from it's back broadly, is versus ultimately, road margins you FreedomPay over product to this sales what on are map interest customers partnership in feedback was Card-Not-Present gross And time for Pay Mike And does partnership. customers? these your it, and, for for

Noah Glass

question. the answer to my questions. and for accordingly. there. I'll start all Thanks for those the remember Thanks I'll try package

platforms point-of-sale I we with. look partnership hearing Card-Present in excitement Olo of FreedomPay we Pay user a from is, that weren't partnership, many a who part, direct-to-POS the of of when all at those think customers and announced it the the

Olo X exciting. the flywheel Olo that that guest personalize of integrations. FreedomPay inside to walls on to about on of you said, really and Olo sounds are our just TRAY, benefits those base Engage not offer regardless because GDP not Pay Olo opens history go if we channels, Card-Present and Pay able of point-of-sale the heard certainly and, That's Olo up that from strategy hearing have heard lot interest the see transaction pilots on, pull faster industry data, seeing experience. what the launched. floodgates means customers We're better to this better heard from and enables for win-win really proposition guest and Olo we exciting the it data and we use not XX% in restaurant. to been This When a and through X all to you reporting, from the guest can are our of ability of the Pay broadly Card-Present. guest's transactions. through-line is the Card-Present of reconciliation. seeing probably operators, have Qu, into you Pay the for the pull that's customer of We're that who's that guests the us that processing our that's that are is using seeing it point-of-sale?" And And data guest at the that an who to a processor So Card-Present value time. happening NCR, capture guest the operators but get to play to we're over transactions for "This there. and with about of very all be have they're on modules that going the time, same customer direct-to-POS of that a my not a We've and be the be proposition data and of to they are win-win into specifically, do And out guests order of digital acquisition them, as part data for value payment happen platform

in talked the how think Olo beneficial payments business of of economics profitability I payments the about of more the for Pay, scale terms the In is we've economics having and business. any

for from much get combine markets perspective, now, us by guess scale and billion-plus faster to I addressable that larger to Pay Olo having $XXX Card-Not-Present you So in together. market that Card-Present when helps it addressable

Michael Richards

then Got you. more. one And just

been -- the that you environment leaning year efficiency, ] expecting customer needing a really strategy for as next similar data environment a data analytics for [ are view longer more you perspective? for guys seen and the seen a this given Have of into time we've restaurants. holistic prices rising You have customers from and need in

Noah Glass

to and That from short That that time in traffic, but term. for perception of profitability, been to has the term deals the brand. playbook we is and is discounting for industry the the old XXX%. desperate not of message revert over very shouting rooftops, this to the the this that guest price Yes, have the been price. everybody helpful is drive in health ultimately, is bombing be is for It long franchisee the menu of harmful and, should the what a

manner, doing use data it we harmful. traffic; and the other ultimately word the from and so that that experience And all to that over deals to brands to word "profitable" is permission, phrase efforts use gather and guest's personalize helping operative in sophisticated using drive with the are do being data, and championing and been discounts that that guest we've years the is what bundling to things data more do which to to guest and restaurants more differently, the to profitable of things a in differentiating see

we've challenging They are thriving. surviving brands quarters, California around times, most profitable Kitchen to term traffic. are think and spend, about efficient Sonny's Fries, personalization and macroeconomic not into and, like be I the utilizing to we've their just they're talked Pizza but long in First data the Grill and about for going going Guys California marketing talked other BBQ, guest that Burgers Fish leaning Watch, Five and driving be for in

Operator

Next question, Jeffries, Clarke Sandler. Piper with

Clarke Jeffries

results on ask, million to higher firstly, of guidance will top I but line be the profit and gross to incremental actually XXXX. Peter, Pay wanted revenue, that great encouraging for Peter, Olo Pay, commentary than the Noah, the see just growth $XX-ish XXXX. Olo

advantage you're Is point. multiple that gross scale to of one for follow-up. points of hundred wanted getting that then this basis I at Pay understand on Just the And Olo have improvement margin?

Peter Benevides

Thanks, Clarke.

million in guide year-on-year, in total of that embedded $XX above of million 'XX. terms the $XXX of incremental revenue getting right contribution the for you're So revenue to

to comes of the improvement improvement see we Pay, scale to because, with greater specific Card-Not-Present terms Card-Present, continue so within In similar economics. with margin better

But like margin is going transaction better profile. mix lends for again, is improvement card So greater see Card-Present incremental again, then, better Card-Not-Present. to to seen a really one improvement on-premise, it some to we've is, Pay X specific economics. typically, things to Number you blended And a comes coming secondly, better in tend usage with the that's margin have scale itself because reasons. margins in the gross online. And fueled what be by Card-Present of debit,

drive can and Card-Present Pay better margins overall we margins. So

So taken improvement an XXXX, at margins to as whole, XXXX. you're seeing look a Pay compared as you if in

Clarke Jeffries

the giving to kind Makes Perfect. merchants the in level, you like up? you the and shouldn't onboarding that higher the comfort size of to certainly at and how see does just location Or of that move at number at making thinking that overly either looking to number terms X,XXX volume of about growth just to encouraging. maximize you you're But merchants this at not the index we metric point quality in are Would count a level? revenue growth And sense. high-teens it of or initiatives changes level is from high you're brand quarter-to-quarter? consolidated of that or pipeline mean that because is go

Peter Benevides

then general, than That half anything. and platform. mean, planned adding in locations up mentioned on deployments we more second I When X,XXX than just anticipated. philosophy the stepped as to on of as were happening XXXX, we guidance more we I number signings XXXX, call, in entered the X,XXX, the intra-year the think is

as prudent XXXX, driven into set if to about similarly X,XXX we we was to about then, great a out take as walked see. on process, deployment. intra-year revenue that you we the locations incremental add we that XXXX, X/X going X/X set with approach at recall, want to through similar by out guide of the to things into When and pulled being look setting locations the that [ year. we signings deployment We year, ] the target. And with from So more calendar

over hope time. the It's of just, we brand the throughout continuation or not just the then year really it's philosophically start we of of read-through year. philosophy. setting So outperform a that really to pipeline and as as expectations shifting a go It's realistic again, mix health

Operator

Next Street. question, Lake Eric Martinuzzi, with

Eric Martinuzzi

the strong they the the kind of see outlook initiative if I in the assets? embracing were XXXX. dive internal I'm Was of did kind Jack enterprise -- wanted -- they and And in finish Jack on the What Rails, was when added year impetus was an the robust is maybe on -- Box the overall and platform. there there to Did their of they an have what behavior. inside were they to they an for When the representative was in, they Congrats internal IT to redeploy to for what on? went assuming redeploy Box layoffs? -- product?

Noah Glass

the this Thanks for question. Noah. Eric, is

is Jack from that. the with to or expanding think are XX Box to Jack with of the and a landing in brands then module generalized there, in I see maybe specific and great more what Top the those segments, a we relationship we single example typically,

ground then Olo to in from the the sort we've era able of lot of kinds becomes larger happened and relationship. I grows these for on Order tablets. then Although, typically, channel we're and that doesn't a with operator is also doesn't seen industry, had of certainly in emerging the resonant of expanding doing marketplace be the what an many XX as well In a QSR words, subsequent scale lot working inclusive is call as XX with up Top brands synonymous, seen brands of of testing ordering different integration. very and they relationship in deposited owed. little onto COVID that for with about to simplicity the into we drive-thru relationships, dipped Rails app And had a operators then, scale different during brands, without well. guest Tablet but that it down it scenario and for get We that we've the bit more Rails. they Hell. franchisor are doesn't lot brands, order a might to Rails would website beyond standpoint. the Catering+ catering then what thinking Dispatch of scale they're case, keep from a QSR In and just of very all lovingly that but kinds the a a segments, from tablet. And have would their brands, other opportunities and that. And tablets, expanded pool for that, landed of that It even recently, with that originated their They what marketplace that Top get or the toe in really a royalties track a a is landing and interested say that and the

of so they product for have into brands, have see and Rails of percentage see like achieve an you where meaningful dollars directly lot of to are that extension, dollars to use examples orders thing. those real you lot be want to and the relationships, organization, to in some they manual realize, brands that's by and integrated sales sales order to success, have to controlled place their that a as these bidirectional West of stack kind order one tech menu into with bring gives great marketplaces, just operator through control. of that's digital when and was that those bringing example now in and sort flowing display originate some into in, into such a a third-party with orders kitchen to Wild in way, think then stepped the interface the the from the the a the way syndicated world marketplace want point-of-sale a doesn't Box. entry a going and And some once platform that the of It's Jack think a So it And of the there to they out to point-of-sale level to third-party point-of-sale they of marketplace what okay, I being franchisor the drive both of trying and they real a orders, the I a into of royalties, get then third-party into system in the of marketplaces. with a going collected. And is hasty be

Eric Martinuzzi

more And folks getting they're to and Or they was a IT running they internal back organization, their efficient? Olo new that, are those up once again, on are module? own redeploying

Noah Glass

that again as Olo shifting to resources Box really is operators. for see brand a I having that What heard we Jack use And to something will is like but to say their And the brand; secret as privacy. the decision at about see is kind to It's the are complexity, on it's we is is natural and platforms. And back either have what differentiating the enterprise of security. I we in of is, then remarks, days It's time doing scalability a resources brand what SaaS. it a a they specifically, redeploy platform maintain and mean, buy natural Olo and their calls, think the not bit spending typically of increasingly, technical of into reliability. think me can't it you then It what it's you've the they're Bowl. tendency, more Day Super build-or-buy of your about that brands built that's is little not XXX Valentine's sort way time to that tech are that, technology I that service and in across like speak differentiates sauce. build your that things that a version is binary; talked and guests trend on the technology just of over in-house now prepared to the a recreate as on of in for performance in-house both. the your platform appeals demonstrated doing top brands a fraction locations. a SaaS homegrown goes to, and why and It's who wheel. And all like that cost XX,XXX to these really this your of all

Operator

with Stephen William Sheldon, Blair. question, Next

Stephen Sheldon

on I XXXX. dig It I acceleration. of in great like all commentary on questions. half really acceleration a lot acceleration. which hear. That more like gross the in XXXX, to It my to really growth answered it's sounds profit But second sounds the expecting appreciate wanted you're is

the there? given I to, can I think, XX% So before dip guess, XQ, little baking more could this inflection quarter, wanted Or of I back that guidance? bottom was the just year? the to relative the the it of into in see, when accelerating was in of what are you half kind point kind half the growth in ask, first you a

Peter Benevides

So tougher in really a year the back the we first half XXXX. half compare Stephen, of of happens the the reacceleration, as in move through

from you if that. growth QX year-on-year beyond So reacceleration is and will, perspective then I think a more the of trough, a

Stephen Sheldon

seems a a And there. it. then helpful. Got like announcements, it of mean, traction. wins lot got you've on lot seeing Catering+, That's Okay. a I of just Recently, you're lot of

more can margin scale, becoming that us, remind is you to revenue? And to and So if gross are? continues that material margin what the just implications

Peter Benevides

experience. gross profit drive modules today, today a platform platform XXXX, are which is and overall for think past, is Catering+ again, ordering also subscribe on basis, drive profit core ability in to, have as reaccelerate throughout using are count. is the to of also the developed initial of had growth. And high of We've wins ARPU. Catering+ ARPU. primarily that today that help useful part Catering+ we that drive stop that growth we've to it half do gross brands the So ARPU of dollars But to both the us confidence but would a gross like It's in product the giving perspective, second a right? we've online doesn't of also will location because where full adoption Catering+ modules profit shows in up their overall in not the starting location help what year module, and of are product said an many part margin, what margins, to per to I come software if it's in Catering+, margin primarily from success in and again, there. So many helps XXXX helps with catering XXXX. And Obviously, this driver. And the

want you Dispatch help. whether can first-party So delivery enablement,

applicable. use Pay, obviously, is your with If you the and reengage all catering And Rails house is extent information want integration, Engage that can applicable. customers, course, marketplace want you third-party data Engage. then To to that to help. of of

use Again, to more getting up catering growth. drive there that think and in We're is expand Over opportunity. from and a we more great So showing today gross just time, started. we'll help ARPU. help profit

Operator

Gabriela Our from with last Borges, question Goldman comes Sachs.

Maxime Gamperl

leadership need a your Noah, state departing. had Gabriela. on more your you've Where joining new some seeing current CRO team? How you areas little are year the of Gamperl half the Max strength you second and CTO that feel changes in is This about of management versus last do attention? bit the for with

Noah Glass

the for Thanks question.

thrilled We feel about our think proof the with you can Ordway, he the reliability see sales in and up on Super day scale Bowl the all Jason's platform, at on volume We're Friday, record-setting Valentine's the and Olo of great and time lived Jason highest team and then we really and I the to around is Day about team just pudding. had. him. leadership Valentine's us performance Day, a the the that as joined who CTO, that

guest sort our of down, existing we going them candidates but I deals that is a the have And to disruption a been open guest that the interviewing switching in Card-Present. a really thrilled is I to repeat cost experience, note or means the think, And message data, to Olo only Pay that guest. That and said but operate thinkers and little related to point-of-sale. energy every Pay on I I has the take strategy point-of-sale. as as who meaningful of important this role about another part in staff-facing. There the has after can energy been sense the the we is think burning is historically, guest terms And the our the resonant in around think transactions, between changed deep would of those working with stack, staff-facing directly now tech overall and also some going something, are the sales compare do bit every We that say a about typically context versus this and that we've versus the and Olo but layer customers sees guest. It is the big a through of a traffic. I experience, and about mile been how blind digital stack guest that Olo we thinking ], transactions, that their this don't on a Max, to calls point-of-sale the the that guest-facing That's wide, using side an of to we further now come on in seeing battle a you, as this where vertical restaurant very which profitable distinguish what's that we are to of Katie really of [ say question, the the closer things. our when different platform, POS and team flywheel can additional Katie Lang module next really with the question with into Card-Present. mile is of switching has role. And those to Olo because confidence I and control the Revenue logs deep, Officer adds point. point would just an Olo that some Olo having process is. to transaction we're all we're the pays. get the the it, inch longitudinal then mile customers it's your It's do in-store tech given view with of digital for tie stack. now feeling inch we're traditionally deep, also Cofer, Olo become about to to that that stack who just the been is guest this what that's I've point-of-sale to of about guest. the Chief this from and restaurant we as really transaction, is for role, around of fun with to And in feel eliminated customer of competitive no success and get around digital these journey. moment leadership, to see having feeling we and data to think of what into announcement tech what that would what's our of we're And I guest-facing, business customers, back I'll part hire, wide, get it, point-of-sale, urgency, want you can can sort mile past, me software staff-facing battle competition a you been has for about sort the driving This XX% wide, a guest-facing the is a how particular, our tech milestone, dimension, closer whether see

this FreedomPay one Pay in thing Olo get [ of between I what's tech call, that some of we're ever-shifting competition that ] stack. in And really control point experiencing. team Olo the part now and announcement guest-facing driving and on think that stack if this is I'd this has with staff-facing go-to-market So there's scaling tech become across that of the it's success the and energy our Card-Present,

Maxime Gamperl

across to if AI-powered What just do incorporating helpful. from you requesting? your in potential themes product emerging opportunities maybe that [indiscernible] out, that this potential something conversations? included AI noticed close actively release, menu technologies Is very are your That's And And so, customers recommendations. I suite? what you these in see this are

Noah Glass

ambitiously this Ready moment but how that, the our that how we've this across high scaling have keep now this a all them; be what tried of learning what as thinking that on module the in just borderless of busy they that real-time collecting use of to recommend Olo we're understand past and does as that leader like really Olo and -- the data in several because it's million and take a we've this enjoying. And how in possible, very see do for been XX great guests prepared journey possible. lookalike asset that powerful Engage role toward terms cetera. And on the winter in Order, guest rates, that, stood communicate it; a will remarks, personalize of machine our AI suite the AI now order the with guest kitchen to announced we less years really AI, exactly that used experience, as and of can on as is of we've to It's of every to thing a they've personalization knowing et journey talked we're longitudinal see even things another the guest's given understand restaurant. We're explicitly we're of why network plays using most sexy Pay. in AI long Probably and And think productive based race to course, how you're sure is can to kitchen car before in to possible. We're course, that the get some restaurant one fraud lower really running reordered with of things audience proud capacity, within so on results each we post to system said a now in release, keeping using is we like created using of authorization AI what continue recommending excited from about to full their time that continue to of about quarter, so mentioned we're rates, that dishes as some which I how able Olo messaging or they've visiting over red, that personalization. a doing guests team personalization in like running And terms the personalized how first at up about a likelihood guest, the the reading is with the and guests, to that and of seeing you manner. of segment for using smart they've examples never profitable that we're to the our again, solution, of take massive its that Order as an how how help what the kitchen on. you we've a we've view we're comparing platform. In but really making we that do not about and brands extensively if platform guest course in every throughout AI of getting profitably about kitchen that out

Operator

like to Noah would turn floor to closing remarks. I the over Glass for

Noah Glass

joining Okay. us you for Thank today.

financial XXXX capture to results strong performance entirety brands transaction Olo with brands their the to for data actionable sets Our shareholders. early profitable continue in still and of a drive We're across Olo's for that and business drive in traffic. Have evening. for realizing very win the table surface our helping great guest potential insights

Operator

Thank conclude today's you. This thank participation. does for you We teleconference. your

disconnect now may your You lines.

Olo (OLO) 25 Feb 252024 Q4 Earnings call transcript