OLO Q1 2023 Earnings Report $6.10 -0.21 (-3.25%) Closing price 03:59 PM EasternExtended Trading$6.10 -0.01 (-0.16%) As of 04:05 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings HistoryForecast OLO EPS ResultsActual EPS-$0.06Consensus EPS -$0.05Beat/MissMissed by -$0.01One Year Ago EPSN/AOLO Revenue ResultsActual Revenue$52.24 millionExpected Revenue$50.79 millionBeat/MissBeat by +$1.45 millionYoY Revenue GrowthN/AOLO Announcement DetailsQuarterQ1 2023Date5/9/2023TimeN/AConference Call DateTuesday, May 9, 2023Conference Call Time5:00PM ETUpcoming EarningsOLO's Q1 2025 earnings is scheduled for Tuesday, May 6, 2025, with a conference call scheduled at 5:00 PM ET. Check back for transcripts, audio, and key financial metrics as they become available.Q1 2025 Earnings ReportConference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryOLO ProfileSlide DeckFull Screen Slide DeckPowered by OLO Q1 2023 Earnings Call TranscriptProvided by QuartrMay 9, 2023 ShareLink copied to clipboard.There are 7 speakers on the call. Operator00:00:00Afternoon. My name is David, and I will be your conference operator today. At this time, I would like to welcome everyone to the Allo First Quarter 2023 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. Operator00:00:22Please note this conference is being recorded. I would now like to turn the call over to Brian Denue from ICR. Please go ahead. Speaker 100:00:31Thank you. Good afternoon, everyone, and welcome to Olo's Q1 2023 earnings Joining me today are Noah Glass, Olo's Founder and CEO and Peter Beneventis, Olo's CFO. During our call today, some of our discussions and responses to your questions may contain forward looking statements, which represent our beliefs and assumptions only as of the date such statements are made. These forward looking statements include, but are not limited to, statements regarding our expectations of our business, our industry, including with respect to technological advancements Future financial results, including revenue and non GAAP operating income and other key performance metrics, total addressable market and growth opportunity, guidance and strategy, benefits from strategic partnerships, restaurant ordering processing trends, ability to increase usage of our platform and upsell, including with respect to our opportunity to expand in our growth in average revenue per unit and the durability of customer adoption of multiple modules. Forward looking statements are subject to risks and uncertainties that cause actual results to differ materially from those described in our forward looking statements And such risks are described in our earnings press release and our risk factors included in our SEC filings, including our quarterly report Form 10 Q that will be filed following this call and our other SEC filings. Speaker 100:01:49You should not rely on our forward looking statements as predictions of future events. We undertake no obligation to update any forward looking statements made during this call to reflect events or circumstances after today. Also during this call, we'll present both GAAP and non GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures are available in our earnings release, which we issued a short while ago. This earnings release is available on the Investor Relations page of our website and is included as an exhibit in the Form 8 ks furnished to the SEC. Speaker 100:02:21Finally, in terms of our prepared remarks or in response to your questions, we may offer incremental metrics. Please be advised this additional detail may be one time in nature, and we may or may not provide an update in the future on these metrics. I encourage you to visit our Investor Relations website at investors. Olo.com to access our earnings release, investor presentation, periodic SEC reports, A webcast replay of today's call or to learn more about Olo. With that, let me turn the call over to Noah. Speaker 200:02:50Thank you, Brian. Hi, everyone. Thanks for spending time with us today. In the Q1, Olo's revenue and average revenue per unit momentum continued. We generated $52,200,000 in total revenue, A 22% increase year over year and increased ARPU to $6.32 up 22% year over year and an 11% increase sequentially, and we ended the quarter with approximately 76,000 active locations on the platform. Speaker 200:03:18We're proud of our results and believe the Q1 updates are indicative of the role Olo will continue to play in shaping the restaurant of the future for our customers on and off premise being a digital transaction. We're energized by our mission to be the engine of hospitality, Helping our customers utilize the data harvested from digital orders to provide elevated experiences for their guests. We believe that Olo is best positioned to drive the industry's digital transformation forward through our innovation in our 3 product suites: In the Q1, Olo continued to see success with both new logos and existing customers across all three product suites. In particular, we saw strong increased adoption of our pay and engage modules within our enterprise customer base and a continuation of strong multi module adoption within our emerging enterprise segment. This quarter, we welcomed Shipley Donuts, a quick service donut shop and coffeehouse chain with over 300 locations. Speaker 200:04:29Shipley deployed our ordering, dispatch, rails, network and Olo Pay modules. Shipley is focused on ushering in the digital era, Implementing digital solutions for the first time as a brand, creating operational efficiencies and new revenue streams through direct delivery. Additionally, Noodles and Company, a fast casual restaurant with over 300 locations, launched Olopay across both their main ordering and catering digital channels. This deployment represents our largest OlowPay customer by sales volume to date and the 3rd consecutive quarter where an existing enterprise customer with over 300 locations deployed OlowPay, further demonstrating our ability to successfully sell our pay suite to enterprise brands, an important avenue for ARPU expansion. We saw enterprise customers adopt modules from our Engage suite this quarter. Speaker 200:05:21Denny's, a casual dining chain with over 1400 locations, Launched both our marketing and guest data platform solutions last quarter. Denny's deployment marks our largest EngageSuite brand to date, showing that the largest enterprise restaurant brands are recognizing the importance of using guest centric data and technology to drive growth and loyalty. We're optimistic about the momentum with the Engage suite, which is still in the early innings of adoption. We continue to see strong deployments within the Emerging Enterprise segment. This quarter, several of our new emerging brands deployed 3 or more modules from the onset of their Olo relationship, all of which included pay. Speaker 200:06:02Flying Pie Pizzeria, a fast casual chain deployed with 6 of our products across the order, pay and engage suites. We believe the trend of multi module adoption will continue within this segment and help to further increase ARPU over time and our strategic investments in our sales and marketing organizations to support the depth of modules and their features will only strengthen this opportunity. Before I provide my typical product updates, I want to share an exciting campaign we launched last quarter. As you may recall, I mentioned that we were holding our quarterly release event live at our Beyond 4 customer conference. During the conference, we also debuted a video Sharing our vision for the restaurant of the future and how we believe Olo is best positioned to bring it to life. Speaker 200:06:48In the video, we share elevated restaurant experiences wherein every guest touch point is enhanced by technology. We explore the limitless possibilities for data driven personalization, optimization and convenience Across different service models from drive through to delivery, full service and beyond. Futuristic innovations depicted throughout the video Like facial recognition for stored payment methods or in store kiosks are even closer than they seem. And while this is our future vision, so much of it is possible today through Olo. Data acquisition features like borderless, On premise digital ordering applications and our guest data platform purpose built for restaurants make possible a 360 degree view of the guest, Plus the vast number of integrations made possible by our open ecosystem of 300 plus technology and service partners allow even more innovation at speed. Speaker 200:07:46Our dedication to the industry we serve along with the scale of our open SaaS platform makes Olo uniquely positioned to further bring the Restaurant of the Future video to life. Ultimately, the Restaurant of the Future is expected to leverage new technologies like artificial intelligence and integrations that promote free flowing guest data to enhance hospitality, giving restaurants the ability to make every guest Feel like a regular at enterprise scale. This is increasingly evident in our most recent product enhancements. This quarter, we shared a number of exciting feature updates. Within our ordering suite, managing kitchen capacity is improving with Olo's upgraded capacity management feature, which utilizes AI to optimize order throughput based on preset limits and learned prep times. Speaker 200:08:35This enhancement is a continuation of the capacity management capabilities we rolled out last year that utilizes integrations with the restaurant's kitchen display system to capture valuable on premise information to better inform our machine learning models. A leading casual dining brand with over 200 locations Relies on this capacity management functionality to act as the brains of their kitchen, successfully managing the high complexity that comes with the size of their menu and Increasing Digital Demand. We view this announcement and capability as highly strategic as it further cements Olo's mission critical status in our customers' operations, which will serve as a competitive advantage moving forward. Next, we're thrilled to offer Open Check and Pay at Table functionality for Olo customers using our on premise ordering solutions, New capabilities for our order and pay suites made possible via our Omnivore acquisition earlier last year. Open Check allows guests to order at the table, adding items multiple times throughout their dining experience while keeping their tab open. Speaker 200:09:43When guests finish their meal, all items that both the guest and server added to their check will show up on the guest's mobile device, allowing them to make one final payment to close the check. Alternatively, for guests who still want to order with their server, pay a table functionality allows them to have control of the completion of their dining experience. They can scan a QR code and pay at their convenience, then get up and go. Both of these on premise enhancements not only Help tables turn faster and allow guests to avoid common pain points like waiting for the check, they free up staff to deliver more high touch interactions and act as another guest data acquisition channel. We believe on premise ordering represents another ARPU expansion opportunity for Olo, Driving higher transaction volumes on our platform. Speaker 200:10:33And finally, in more Pay News, we announced a strategic partnership with Adyen, The global financial technology platform of choice for leading businesses to provide OLO Pay customers with a faster and easier way to consolidate digital and card present payments, apply for capital and manage cash flow. Olo Pay currently processes digital payment By joining forces with Adyen, Olo Pay customers will be able to accept And oversee both digital and card present payments from the same Olo platform in which they manage the rest of their digital business. This streamlined payment stack will increase operational efficiency for restaurant businesses by eliminating the need to switch between multiple tools for reconciliation, Refunds, fraud prevention and chargebacks. And by providing a consolidated view of financial activities, payment reporting and guest data, The restaurant of the future is increasingly attainable with a true 360 degree view of each guest, no matter where they order or how they pay. We're excited to launch this functionality in beta later this year, starting with kiosk ordering channels and expanding to all card present transactions. Speaker 200:11:50This represents a significant expansion of the addressable market opportunity for Olo Pay over time, representing a 6x revenue opportunity capturing non digital transaction payment processing. It will take time to complete the product integration work and begin scaling card present transactions, so we don't expect meaningful revenue from it this fiscal year. You can see the full list of new features at olo.com/quarterlyrelease. Our commitment to enhancements like these and never settling for what's working today are being recognized in a big way. I'm humbled that Olo earned the number one most innovative company honor in the dining category on Fast Company's prestigious annual list of the World's Most Innovative Companies for 2023. Speaker 200:12:37I want to thank team Olo and our customers, particularly our long standing Product Advisory Council for their dedication to constant innovation, bringing meaningful change to our customers and the industry as a whole. This collaboration between team Olo and the best digital minds in the restaurant industry is the reason I believe our restaurant of the future vision is within reach. In further news driving innovation for our customers, I'm excited to announce that we officially launched Olo Connect, a select group of our over 300 strong partner network, primed to deliver a best in class dining experience powered by the Olo platform. Built to meet the ever evolving needs of the industry, Olo Connect empowers our network of 600 plus restaurant brands with the actionable insights needed to identify the best digital solutions to drive efficiency and enable hospitality. Meeting a transparent set of qualifications, which include tenure on our platform, the number of mutual brands and locations currently supported and proven customer satisfaction, And finally, as I typically do on earnings calls, I'd like to provide an update on our ESG efforts. Speaker 200:13:54As part of fulfilling our pledge 1% commitment To dedicate 1% of Olo's time, product and equity to initiatives to foster sustainable contributions to the communities in which we live, work and serve, We established Olo For Good in 2021. Since its founding, Olo For Good's annual grant cycle has awarded $8,200,000 to 16 different non profit organizations through its donor advised fund partner, Tides Foundation. Olo recommended 6 non profits for the 2023 annual grant cycle, and we're proud to announce the Tides Foundation subsequently donated A total of $1,250,000 in grants to 6 organizations. Grant recipients are nonprofits focused on diversity, equity and inclusion, Ending childhood hunger and increasing access to food, supporting the restaurant industry's frontline workers, protecting natural resources and reducing waste and emissions. These are all causes deeply rooted in our values and the industry we serve, and we continue to be fervent about using Olo as a platform for social impact and positive change. Speaker 200:15:02You can learn more about the recipients and our ESG efforts by visiting olo.com/esg. As we plan ahead for the rest of the year, we're encouraged by the early results and energized to execute against our full year plan. We look forward to Olo's continuing role in guiding our customers through the restaurant industry's digital transformation, bringing our vision of the restaurant of the future to life. And with that, I'll hand it over to Peter to discuss more detailed results. Speaker 300:15:31Thanks, Noah. Today, I'll review our Q1 results as well as provide guidance for the Q2 and the full year 2023. In the Q1, total revenue was $52,200,000 an increase of 22% year over year. Platform revenue in the Q1 was $51,400,000 an increase of 24% year over year. And Olo Pay continues to perform well, pacing to our expectations set forth at the top of the year. Speaker 300:16:03In terms of key metrics, ARPU for the Q1 was approximately $6.32 representing a 22% increase year over year and an 11% increase sequentially. Further growth in ARPU was driven by continued progress in driving the average number of products adopted by our customer base, including higher ARPU solutions like Olo Pay. In terms of active locations, excluding the impact of Subway locations transitioning from the platform. We added approximately 1500 net new active locations to the platform, Ending the quarter with approximately 76,000 active locations. As a reminder and in line with what we've discussed in prior quarters, Approximately 12,500 Subway locations transitioned from the platform in late Q4 2022 and are not included in the active location total for the Q1 of this year. Speaker 300:16:58And lastly, net revenue retention was approximately 114%, Up 600 basis points sequentially, driven by continued growth in ARPU due to further sell through of Olo's product suite. For the remainder of the financial metrics disclosed, unless otherwise noted, I will be referencing non GAAP financial measures. Gross profit for the Q1 was $37,200,000 This compares to $32,100,000 a year ago. The year over year increase in gross profit was driven by continued growth in revenue, partially offset by increased compensation costs To support new locations coming onto the platform and processing costs associated with Olopay, sales and marketing expense for the Q1 was $9,900,000 or 19 percent of total revenue. This compares to $6,200,000 14% a year ago. Speaker 300:17:54Please note that sales and marketing expenses for the quarter include our annual user conference, Beyond 4, which was held in the Q2 in 2022. We are pleased with the progress we have made in building out and enhancing our go to market efforts. We intentionally made those investments at the beginning of the year and expect to see more moderate growth in sales and marketing through the course of 2023. Research and development expense for the Q1 was $15,700,000 or 30% of total revenue compared to $13,100,000 or 31 percent of total revenue a year ago. On a dollar basis, we increased investments in R and D In order to unlock future growth opportunities related to Olo Pay, borderless capabilities and on premise ordering, We expect to drive leverage from R and D over the remainder of 2023. Speaker 300:18:50General and administrative expense for the Q1 was $10,400,000 or 20 percent of total revenue. This compares to $11,100,000 26 percent a year ago. The year over year improvement on both a dollar and percentage basis represents continued optimization of expenses as our organization continues to scale. Operating income in the Q1 was $1,200,000 compared to $1,700,000 a year ago. Net income in the Q1 was $4,600,000 or $0.03 per share based on approximately 180,000,000 Fully diluted weighted average shares outstanding. Speaker 300:19:31Turning our attention to the balance sheet and cash flow statement. Our cash, Cash equivalents and short and long term investments totaled $438,300,000 as of March 31, 2023. Pursuant to the share repurchase program, which we announced in September 2022, in the Q1 we repurchased 2,700,000 shares for a total of approximately $20,000,000 net of commissions. Since the introduction of our share repurchase program, We have repurchased 5,400,000 shares for $40,000,000 We have $60,000,000 remaining on our authorization. Regarding cash flows, net cash used in operating activities was negative $2,100,000 in the Q1 as compared to negative $900,000 used a year ago. Speaker 300:20:24Free cash flow was positive $3,900,000 compared to negative $3,400,000 a year ago. I'll wrap up by providing our guidance for the Q2 and full year 2023. For the Q2 of 2023, we expect revenue in the range of $53,000,000 $53,500,000 and non GAAP operating income in the range of $2,000,000 $2,400,000 For the fiscal year 2023, We expect revenue in the range of $215,800,000 $217,300,000 and non GAAP operating income in the range of $12,000,000 $13,200,000 We are off to a solid start in 2023 and remain optimistic about the remainder of the year. We think the macro dynamics remain in line with our expectations at the beginning of the year and the success we are having on our key strategic priorities With that, I'd now like to turn it over to the operator to begin the Q and A session. Operator? Operator00:21:29Thank you. At this time, we will be conducting a question and answer session. Our first question is from Matthew Hedberg with RBC. Speaker 400:22:03Great, guys. Thanks for taking my questions. Congrats on the Q1 results. Noah, maybe a high level question for you. You guys have been building a data platform for quite some time now. Speaker 400:22:13And when I think of data platforms and I think of generative AI, it feels like there's a play there. I'm curious, How do you think about leveraging AI or even generative AI in the future to perhaps help brands and even customers benefit from all this data? Speaker 200:22:31Matt, thanks so much for the kind words and for the question. I think AI has a very large role to play in this industry and for Olo's business and customers going forward. I really think about it across all of our Product module suites, I think about it in order and in pay and in engage. And there are use cases that we're currently utilizing for all three. So let me step through those for a moment. Speaker 200:22:58In the ordering platform, One of the missions that we've articulated is to keep the restaurants and the kitchen as productive as possible and as profitable as possible. I mentioned in the prepared remarks how we're using capacity management, AI and machine learning to do just that, to Really hone in on the proper quote times and understand true capacity in the kitchen at any given moment. You could also think about some of the things that may be more obvious like voice ordering through interactive voice response. I've mentioned a couple of quarters back Running pilots with a variety of partners that are in our partner ecosystem that are doing that kind of voice ordering through our API, utilizing Interactive voice response. Within Pay, we're seeing this as one of the main drivers, AI is one of the main drivers of The superior results for AlloPay versus legacy processors, so things like authorization rates being at 98%, which is 5% to 20% above industry standard or fraud being reduced by 85%. Speaker 200:24:04That's really because of the utilization of AI through our partnership with Greg. And then the Engage platform, we're seeing AI as the opportunity to Harness that guest data and use it for personalization of the ordering experience and also of marketing messages that guests receive. I guess broadly philosophically when I think about AI, I think it favors incumbents and it's something that is going to help serve Our customers, our mission, given the scale that we're operating at, 76,000 restaurant locations across 600 brands, 85,000,000 restaurant guests. And then transaction count that's Over $2,000,000 on a daily basis and historically in the $1,000,000,000 All of that is a great data footprint For us to really yield great results utilizing AI. Speaker 400:25:02That's great. And maybe just A follow-up. The announcement for Noodles taking pay is fantastic. I'm curious, you've had Some nice wins over the past couple of quarters. Can you talk about the pipeline for pay deals? Speaker 400:25:18How do you feel about it today? And How do you think about the conversion of that? Because these large deals are certainly great to see come through. Speaker 200:25:27Yes. Thank you. We were very pleased with the Noodles Deployments, as I mentioned in the prepared remarks, this is the 3rd quarter in a row we've had an enterprise brand with over 300 locations adopting OlowPay. We're excited about the pipeline, especially when we can showcase results like what I just articulated Terms of authorization rate improvements and fraud reduction and have these calling card deals, it gives More credibility as reference accounts for other enterprise brands coming on board and of course emerging enterprise brands coming on board. So a very rich pipeline. Speaker 200:26:02I just note, it is true that you have restaurants typically reevaluating payments about every for 5 years. And so I would think about that as you have understand how many at bats we have over what timeframe For selling Olopay into the existing customer base that it will probably take 5 years ish For us to have an at bat with every single account that's in the Olo customer base, but we think there's a lot that is Out there for us and it's a huge opportunity, particularly as it scales beyond just card not present transactions. And we're now able to scale OlowPay to also satisfy card present transactions that represents a 6x Growth in the addressable transaction pool and gross payments volume for OlowPay. Speaker 400:26:59Great color. Thanks Noah. Thank you. Operator00:27:04Our next question is from Stephen Sheldon with William Blair. Speaker 500:27:10Hey, Noah. It's Peter. You can have Matt Fialik on for Steve and Sheldon. Thank you for taking my questions. Fink wisely represents 4 of the 14 modules Olo offers. Speaker 500:27:22And I was wondering if you could touch on the traction Between those different wisely modules, just curious if some of those modules are seeing stronger adoption than others and what those would be? Speaker 300:27:35Yes, I can take that one. So in terms of the Engage suite, there are a number of modules within the suite that encapsulate the products available within the Engage suite. So there is the GDP, our marketing automation Product post our reservation waitlist management solution as well as sentiment. I would say in terms of penetration, Marketing automation tends to be the highest with a fast follow within host and sentiment. And GDP having Relatively new to the market is still in the process of scaling, but in terms of stack ranking, that's how the And individual modules back rank. Speaker 500:28:24That's helpful context, Peter. Thank you. And then it sounds like there were several multi module This quarter and up selling the existing customer base has been going quite well. And I was just wondering if you could talk about what is driving that positive dynamic? Speaker 300:28:41Well, I think we've noted for Speaker 200:28:42a couple of quarters now that in emerging enterprise, There's a great opportunity for customers to come on to Olo with multiple modules from the onset of the relationship. And certainly we've seen that again this quarter. I think with the enterprise market with a lot of the existing customers, There's just a great appetite to do more with Olo now that we offer more capabilities. And it's not just in ordering, but Also in payment, it's also in engagement. And I think I've made this point before, but I'll emphasize it again. Speaker 200:29:20We play this mission critical role in the digital transformation for our customers and they look at Olo as a bit of They're Sherpa for the climb of digital transformation. So we can meet them where they are and continue helping them to add more capabilities and drive More digital transactions. I think that goodwill and interest in leaning into the relationship with Olo and getting More digital to achieve their ambitions of getting to 100% digital is really at the root of our success in growing ARPU through multi module adoption. Speaker 500:30:01That's excellent. Thank you both and a nice quarter. Speaker 200:30:05Thank you. Operator00:30:08Our next question is from Gabriela Borges with Goldman Sachs. Speaker 600:30:14Hi, good afternoon. Thank you. I wanted to pick up where the prepared remarks left off, which is around macro dynamics in the quarter and them being in line I have from Noah Rapida. I'm hoping you can share a little bit more about the demand environment and the pipeline more holistically. How are your customers feeling about their own businesses? Speaker 600:30:34How are they feeling about the willingness to invest in technology this year? Any color on Essentially, the demand environment given all the macro volatility we've seen. Thank you. Speaker 300:30:46Yes. What's interesting is if you look at the end market restaurants and you look at what they've reported over the past quarter, a lot of resiliency and growth, frankly, within their business. And that's encouraging. And that's helping to support the positive signs we're seeing both from a sales and deployment perspective. That said, as we look ahead throughout the balance of the year, we want to remain prudent in terms of how we think about the potential for side in the model, just given that we're early in the year and while things are encouraging, There's still quite a bit of time to kind of move throughout the year. Speaker 300:31:36But I would say broadly again from what we're Seeing in the market and what we're learning in conversations with our customers, A lot of encouraging signs and a lot of resiliency in the end market. Speaker 600:31:52That's right. Thank you. And the follow-up I have is, I wanted to connect the dots on some of the success you're seeing with cross sell with your go to market efforts. Can you share a little bit on priorities for How do you engage multiple senior sponsors at your customer across not just the IT organization, but also potentially the marketing organizational higher up in the organization in order to effectively cross sell across more than one department? Thank you. Speaker 200:32:22Gabriel, this is Noah. Thanks for the question. I think it's really part and parcel with being strategic sellers And selling into the enterprise means that even for that initial onset of the relationship, we have to meet with multiple stakeholders And so we're often known, maybe not as the From there, we are Speaking with our champions, our sponsors about getting to the other members of their executive team typically when it's A new suite that we're selling in, if it's payments speaking to the finance or the treasury team, if it's Engage speaking to the marketing department, That becomes an easy reference point because they know Olo as this mission critical platform that is their digital transformation partner. And I think it's something that our sales team is getting incredibly adept at And it's part of that discipline that Diego Panama, our Chief Revenue Officer, has brought into the company along with his senior team And being able to really go deep in those accounts, grow ARPU, become more mission critical in the process, but do that by touching multiple executives, Speaker 600:34:05That makes sense. Thanks for the question. Speaker 200:34:08Thank you. Operator00:34:15Our next question is from Mark Bauchner with Stifel. Speaker 300:34:19Hi, great. Thanks. Mark Bauchner on for Brad Reback. Just had a quick question on Olo Connect and how that can help on net new versus expansion, kind of breaking those 2 out? And then also, How that can kind of relieve any of the deployment cycle issues you guys have talked about with, I guess lack of resources in terms of the restaurants being able to focus on deployment. Speaker 300:34:44Thanks. Speaker 200:34:47Yes, we are very excited to announce the Olo Connect program, which is really the evolution of what has been a very rich Ecosystem of Integrated Technology Partners. And as I mentioned in the prepared remarks, Olo Connect is really about Tiering partners, a selected group of those partners based on things like their tenure on the platform, their scale in shared brands And so it's an objective way of showing other customers who represent prospects for those Olo Connect partners just how much other customers value the services that they provide. Olo certainly can't do everything under the sun with regard to restaurant technology. We rely upon and love our partner ecosystem to augment our platform. And clearly, this is an opportunity for us to Enlightened Way through this Olo Connect program. Speaker 200:35:56So the response has been really positive from the Olo partner network. It's been really positive from our customer base getting these additional sources of credibility and understanding tenure and scale and customer satisfaction through Olo Connect. And it's still early days. We're excited to grow that program, and I want to really commend our partnerships team for the work that they did in a really thoughtful way putting this program together and where the benefits not just our partners and Olo, but Speaker 100:36:35Great. Thanks. Speaker 200:36:38Thank you. Operator00:36:41Ladies and gentlemen, we have reached the end of the question and answer session. I would like to turn the call back to Noah Glass for closing remarks. Speaker 200:36:49Okay. Well, thank you again for joining us today. We are honored to be a mission critical platform for the restaurant industry and to serve as the end of hospitality, helping restaurants drive sales, do more with less and make every guest feel like a regular. I want to say thank you to team Olo for your hard work and execution. We have miles to go before we sleep. Operator00:37:14This concludes today's conference. Thank you for your participation. You may disconnect your lines at thisRead moreRemove AdsPowered by Conference Call Audio Live Call not available Earnings Conference CallOLO Q1 202300:00 / 00:00Speed:1x1.25x1.5x2xRemove Ads Earnings DocumentsSlide DeckPress Release(8-K)Quarterly report(10-Q) OLO Earnings HeadlinesWaffle House Just Announced an Exciting New ChangeApril 10 at 1:44 PM | msn.comWaffle House makes major change to 500 of its 2,000 spots with more on the wayApril 3, 2025 | msn.comDOGE officially begins retirement transformationElon Musk's Department of Government Efficiency ("DOGE") just announced the first-ever "fully digital retirement" process . This fired the starting gun on the biggest economic transformation in American history.April 10, 2025 | Altimetry (Ad)Waffle House Makes Delivery Available for the First Time, Powered by OloApril 2, 2025 | finance.yahoo.comIs Olo Inc. (OLO) the Best Debt-Free IT Stock to Buy Under $10?April 1, 2025 | insidermonkey.com3 Reasons to Avoid OLO and 1 Stock to Buy InsteadApril 1, 2025 | msn.comSee More OLO Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like OLO? Sign up for Earnings360's daily newsletter to receive timely earnings updates on OLO and other key companies, straight to your email. Email Address About OLOOLO (NYSE:OLO), Inc. engages in the provision of cloud-based, on-demand commerce platform for multi-location restaurant brands. It enables digital ordering and delivery. 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There are 7 speakers on the call. Operator00:00:00Afternoon. My name is David, and I will be your conference operator today. At this time, I would like to welcome everyone to the Allo First Quarter 2023 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. Operator00:00:22Please note this conference is being recorded. I would now like to turn the call over to Brian Denue from ICR. Please go ahead. Speaker 100:00:31Thank you. Good afternoon, everyone, and welcome to Olo's Q1 2023 earnings Joining me today are Noah Glass, Olo's Founder and CEO and Peter Beneventis, Olo's CFO. During our call today, some of our discussions and responses to your questions may contain forward looking statements, which represent our beliefs and assumptions only as of the date such statements are made. These forward looking statements include, but are not limited to, statements regarding our expectations of our business, our industry, including with respect to technological advancements Future financial results, including revenue and non GAAP operating income and other key performance metrics, total addressable market and growth opportunity, guidance and strategy, benefits from strategic partnerships, restaurant ordering processing trends, ability to increase usage of our platform and upsell, including with respect to our opportunity to expand in our growth in average revenue per unit and the durability of customer adoption of multiple modules. Forward looking statements are subject to risks and uncertainties that cause actual results to differ materially from those described in our forward looking statements And such risks are described in our earnings press release and our risk factors included in our SEC filings, including our quarterly report Form 10 Q that will be filed following this call and our other SEC filings. Speaker 100:01:49You should not rely on our forward looking statements as predictions of future events. We undertake no obligation to update any forward looking statements made during this call to reflect events or circumstances after today. Also during this call, we'll present both GAAP and non GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures are available in our earnings release, which we issued a short while ago. This earnings release is available on the Investor Relations page of our website and is included as an exhibit in the Form 8 ks furnished to the SEC. Speaker 100:02:21Finally, in terms of our prepared remarks or in response to your questions, we may offer incremental metrics. Please be advised this additional detail may be one time in nature, and we may or may not provide an update in the future on these metrics. I encourage you to visit our Investor Relations website at investors. Olo.com to access our earnings release, investor presentation, periodic SEC reports, A webcast replay of today's call or to learn more about Olo. With that, let me turn the call over to Noah. Speaker 200:02:50Thank you, Brian. Hi, everyone. Thanks for spending time with us today. In the Q1, Olo's revenue and average revenue per unit momentum continued. We generated $52,200,000 in total revenue, A 22% increase year over year and increased ARPU to $6.32 up 22% year over year and an 11% increase sequentially, and we ended the quarter with approximately 76,000 active locations on the platform. Speaker 200:03:18We're proud of our results and believe the Q1 updates are indicative of the role Olo will continue to play in shaping the restaurant of the future for our customers on and off premise being a digital transaction. We're energized by our mission to be the engine of hospitality, Helping our customers utilize the data harvested from digital orders to provide elevated experiences for their guests. We believe that Olo is best positioned to drive the industry's digital transformation forward through our innovation in our 3 product suites: In the Q1, Olo continued to see success with both new logos and existing customers across all three product suites. In particular, we saw strong increased adoption of our pay and engage modules within our enterprise customer base and a continuation of strong multi module adoption within our emerging enterprise segment. This quarter, we welcomed Shipley Donuts, a quick service donut shop and coffeehouse chain with over 300 locations. Speaker 200:04:29Shipley deployed our ordering, dispatch, rails, network and Olo Pay modules. Shipley is focused on ushering in the digital era, Implementing digital solutions for the first time as a brand, creating operational efficiencies and new revenue streams through direct delivery. Additionally, Noodles and Company, a fast casual restaurant with over 300 locations, launched Olopay across both their main ordering and catering digital channels. This deployment represents our largest OlowPay customer by sales volume to date and the 3rd consecutive quarter where an existing enterprise customer with over 300 locations deployed OlowPay, further demonstrating our ability to successfully sell our pay suite to enterprise brands, an important avenue for ARPU expansion. We saw enterprise customers adopt modules from our Engage suite this quarter. Speaker 200:05:21Denny's, a casual dining chain with over 1400 locations, Launched both our marketing and guest data platform solutions last quarter. Denny's deployment marks our largest EngageSuite brand to date, showing that the largest enterprise restaurant brands are recognizing the importance of using guest centric data and technology to drive growth and loyalty. We're optimistic about the momentum with the Engage suite, which is still in the early innings of adoption. We continue to see strong deployments within the Emerging Enterprise segment. This quarter, several of our new emerging brands deployed 3 or more modules from the onset of their Olo relationship, all of which included pay. Speaker 200:06:02Flying Pie Pizzeria, a fast casual chain deployed with 6 of our products across the order, pay and engage suites. We believe the trend of multi module adoption will continue within this segment and help to further increase ARPU over time and our strategic investments in our sales and marketing organizations to support the depth of modules and their features will only strengthen this opportunity. Before I provide my typical product updates, I want to share an exciting campaign we launched last quarter. As you may recall, I mentioned that we were holding our quarterly release event live at our Beyond 4 customer conference. During the conference, we also debuted a video Sharing our vision for the restaurant of the future and how we believe Olo is best positioned to bring it to life. Speaker 200:06:48In the video, we share elevated restaurant experiences wherein every guest touch point is enhanced by technology. We explore the limitless possibilities for data driven personalization, optimization and convenience Across different service models from drive through to delivery, full service and beyond. Futuristic innovations depicted throughout the video Like facial recognition for stored payment methods or in store kiosks are even closer than they seem. And while this is our future vision, so much of it is possible today through Olo. Data acquisition features like borderless, On premise digital ordering applications and our guest data platform purpose built for restaurants make possible a 360 degree view of the guest, Plus the vast number of integrations made possible by our open ecosystem of 300 plus technology and service partners allow even more innovation at speed. Speaker 200:07:46Our dedication to the industry we serve along with the scale of our open SaaS platform makes Olo uniquely positioned to further bring the Restaurant of the Future video to life. Ultimately, the Restaurant of the Future is expected to leverage new technologies like artificial intelligence and integrations that promote free flowing guest data to enhance hospitality, giving restaurants the ability to make every guest Feel like a regular at enterprise scale. This is increasingly evident in our most recent product enhancements. This quarter, we shared a number of exciting feature updates. Within our ordering suite, managing kitchen capacity is improving with Olo's upgraded capacity management feature, which utilizes AI to optimize order throughput based on preset limits and learned prep times. Speaker 200:08:35This enhancement is a continuation of the capacity management capabilities we rolled out last year that utilizes integrations with the restaurant's kitchen display system to capture valuable on premise information to better inform our machine learning models. A leading casual dining brand with over 200 locations Relies on this capacity management functionality to act as the brains of their kitchen, successfully managing the high complexity that comes with the size of their menu and Increasing Digital Demand. We view this announcement and capability as highly strategic as it further cements Olo's mission critical status in our customers' operations, which will serve as a competitive advantage moving forward. Next, we're thrilled to offer Open Check and Pay at Table functionality for Olo customers using our on premise ordering solutions, New capabilities for our order and pay suites made possible via our Omnivore acquisition earlier last year. Open Check allows guests to order at the table, adding items multiple times throughout their dining experience while keeping their tab open. Speaker 200:09:43When guests finish their meal, all items that both the guest and server added to their check will show up on the guest's mobile device, allowing them to make one final payment to close the check. Alternatively, for guests who still want to order with their server, pay a table functionality allows them to have control of the completion of their dining experience. They can scan a QR code and pay at their convenience, then get up and go. Both of these on premise enhancements not only Help tables turn faster and allow guests to avoid common pain points like waiting for the check, they free up staff to deliver more high touch interactions and act as another guest data acquisition channel. We believe on premise ordering represents another ARPU expansion opportunity for Olo, Driving higher transaction volumes on our platform. Speaker 200:10:33And finally, in more Pay News, we announced a strategic partnership with Adyen, The global financial technology platform of choice for leading businesses to provide OLO Pay customers with a faster and easier way to consolidate digital and card present payments, apply for capital and manage cash flow. Olo Pay currently processes digital payment By joining forces with Adyen, Olo Pay customers will be able to accept And oversee both digital and card present payments from the same Olo platform in which they manage the rest of their digital business. This streamlined payment stack will increase operational efficiency for restaurant businesses by eliminating the need to switch between multiple tools for reconciliation, Refunds, fraud prevention and chargebacks. And by providing a consolidated view of financial activities, payment reporting and guest data, The restaurant of the future is increasingly attainable with a true 360 degree view of each guest, no matter where they order or how they pay. We're excited to launch this functionality in beta later this year, starting with kiosk ordering channels and expanding to all card present transactions. Speaker 200:11:50This represents a significant expansion of the addressable market opportunity for Olo Pay over time, representing a 6x revenue opportunity capturing non digital transaction payment processing. It will take time to complete the product integration work and begin scaling card present transactions, so we don't expect meaningful revenue from it this fiscal year. You can see the full list of new features at olo.com/quarterlyrelease. Our commitment to enhancements like these and never settling for what's working today are being recognized in a big way. I'm humbled that Olo earned the number one most innovative company honor in the dining category on Fast Company's prestigious annual list of the World's Most Innovative Companies for 2023. Speaker 200:12:37I want to thank team Olo and our customers, particularly our long standing Product Advisory Council for their dedication to constant innovation, bringing meaningful change to our customers and the industry as a whole. This collaboration between team Olo and the best digital minds in the restaurant industry is the reason I believe our restaurant of the future vision is within reach. In further news driving innovation for our customers, I'm excited to announce that we officially launched Olo Connect, a select group of our over 300 strong partner network, primed to deliver a best in class dining experience powered by the Olo platform. Built to meet the ever evolving needs of the industry, Olo Connect empowers our network of 600 plus restaurant brands with the actionable insights needed to identify the best digital solutions to drive efficiency and enable hospitality. Meeting a transparent set of qualifications, which include tenure on our platform, the number of mutual brands and locations currently supported and proven customer satisfaction, And finally, as I typically do on earnings calls, I'd like to provide an update on our ESG efforts. Speaker 200:13:54As part of fulfilling our pledge 1% commitment To dedicate 1% of Olo's time, product and equity to initiatives to foster sustainable contributions to the communities in which we live, work and serve, We established Olo For Good in 2021. Since its founding, Olo For Good's annual grant cycle has awarded $8,200,000 to 16 different non profit organizations through its donor advised fund partner, Tides Foundation. Olo recommended 6 non profits for the 2023 annual grant cycle, and we're proud to announce the Tides Foundation subsequently donated A total of $1,250,000 in grants to 6 organizations. Grant recipients are nonprofits focused on diversity, equity and inclusion, Ending childhood hunger and increasing access to food, supporting the restaurant industry's frontline workers, protecting natural resources and reducing waste and emissions. These are all causes deeply rooted in our values and the industry we serve, and we continue to be fervent about using Olo as a platform for social impact and positive change. Speaker 200:15:02You can learn more about the recipients and our ESG efforts by visiting olo.com/esg. As we plan ahead for the rest of the year, we're encouraged by the early results and energized to execute against our full year plan. We look forward to Olo's continuing role in guiding our customers through the restaurant industry's digital transformation, bringing our vision of the restaurant of the future to life. And with that, I'll hand it over to Peter to discuss more detailed results. Speaker 300:15:31Thanks, Noah. Today, I'll review our Q1 results as well as provide guidance for the Q2 and the full year 2023. In the Q1, total revenue was $52,200,000 an increase of 22% year over year. Platform revenue in the Q1 was $51,400,000 an increase of 24% year over year. And Olo Pay continues to perform well, pacing to our expectations set forth at the top of the year. Speaker 300:16:03In terms of key metrics, ARPU for the Q1 was approximately $6.32 representing a 22% increase year over year and an 11% increase sequentially. Further growth in ARPU was driven by continued progress in driving the average number of products adopted by our customer base, including higher ARPU solutions like Olo Pay. In terms of active locations, excluding the impact of Subway locations transitioning from the platform. We added approximately 1500 net new active locations to the platform, Ending the quarter with approximately 76,000 active locations. As a reminder and in line with what we've discussed in prior quarters, Approximately 12,500 Subway locations transitioned from the platform in late Q4 2022 and are not included in the active location total for the Q1 of this year. Speaker 300:16:58And lastly, net revenue retention was approximately 114%, Up 600 basis points sequentially, driven by continued growth in ARPU due to further sell through of Olo's product suite. For the remainder of the financial metrics disclosed, unless otherwise noted, I will be referencing non GAAP financial measures. Gross profit for the Q1 was $37,200,000 This compares to $32,100,000 a year ago. The year over year increase in gross profit was driven by continued growth in revenue, partially offset by increased compensation costs To support new locations coming onto the platform and processing costs associated with Olopay, sales and marketing expense for the Q1 was $9,900,000 or 19 percent of total revenue. This compares to $6,200,000 14% a year ago. Speaker 300:17:54Please note that sales and marketing expenses for the quarter include our annual user conference, Beyond 4, which was held in the Q2 in 2022. We are pleased with the progress we have made in building out and enhancing our go to market efforts. We intentionally made those investments at the beginning of the year and expect to see more moderate growth in sales and marketing through the course of 2023. Research and development expense for the Q1 was $15,700,000 or 30% of total revenue compared to $13,100,000 or 31 percent of total revenue a year ago. On a dollar basis, we increased investments in R and D In order to unlock future growth opportunities related to Olo Pay, borderless capabilities and on premise ordering, We expect to drive leverage from R and D over the remainder of 2023. Speaker 300:18:50General and administrative expense for the Q1 was $10,400,000 or 20 percent of total revenue. This compares to $11,100,000 26 percent a year ago. The year over year improvement on both a dollar and percentage basis represents continued optimization of expenses as our organization continues to scale. Operating income in the Q1 was $1,200,000 compared to $1,700,000 a year ago. Net income in the Q1 was $4,600,000 or $0.03 per share based on approximately 180,000,000 Fully diluted weighted average shares outstanding. Speaker 300:19:31Turning our attention to the balance sheet and cash flow statement. Our cash, Cash equivalents and short and long term investments totaled $438,300,000 as of March 31, 2023. Pursuant to the share repurchase program, which we announced in September 2022, in the Q1 we repurchased 2,700,000 shares for a total of approximately $20,000,000 net of commissions. Since the introduction of our share repurchase program, We have repurchased 5,400,000 shares for $40,000,000 We have $60,000,000 remaining on our authorization. Regarding cash flows, net cash used in operating activities was negative $2,100,000 in the Q1 as compared to negative $900,000 used a year ago. Speaker 300:20:24Free cash flow was positive $3,900,000 compared to negative $3,400,000 a year ago. I'll wrap up by providing our guidance for the Q2 and full year 2023. For the Q2 of 2023, we expect revenue in the range of $53,000,000 $53,500,000 and non GAAP operating income in the range of $2,000,000 $2,400,000 For the fiscal year 2023, We expect revenue in the range of $215,800,000 $217,300,000 and non GAAP operating income in the range of $12,000,000 $13,200,000 We are off to a solid start in 2023 and remain optimistic about the remainder of the year. We think the macro dynamics remain in line with our expectations at the beginning of the year and the success we are having on our key strategic priorities With that, I'd now like to turn it over to the operator to begin the Q and A session. Operator? Operator00:21:29Thank you. At this time, we will be conducting a question and answer session. Our first question is from Matthew Hedberg with RBC. Speaker 400:22:03Great, guys. Thanks for taking my questions. Congrats on the Q1 results. Noah, maybe a high level question for you. You guys have been building a data platform for quite some time now. Speaker 400:22:13And when I think of data platforms and I think of generative AI, it feels like there's a play there. I'm curious, How do you think about leveraging AI or even generative AI in the future to perhaps help brands and even customers benefit from all this data? Speaker 200:22:31Matt, thanks so much for the kind words and for the question. I think AI has a very large role to play in this industry and for Olo's business and customers going forward. I really think about it across all of our Product module suites, I think about it in order and in pay and in engage. And there are use cases that we're currently utilizing for all three. So let me step through those for a moment. Speaker 200:22:58In the ordering platform, One of the missions that we've articulated is to keep the restaurants and the kitchen as productive as possible and as profitable as possible. I mentioned in the prepared remarks how we're using capacity management, AI and machine learning to do just that, to Really hone in on the proper quote times and understand true capacity in the kitchen at any given moment. You could also think about some of the things that may be more obvious like voice ordering through interactive voice response. I've mentioned a couple of quarters back Running pilots with a variety of partners that are in our partner ecosystem that are doing that kind of voice ordering through our API, utilizing Interactive voice response. Within Pay, we're seeing this as one of the main drivers, AI is one of the main drivers of The superior results for AlloPay versus legacy processors, so things like authorization rates being at 98%, which is 5% to 20% above industry standard or fraud being reduced by 85%. Speaker 200:24:04That's really because of the utilization of AI through our partnership with Greg. And then the Engage platform, we're seeing AI as the opportunity to Harness that guest data and use it for personalization of the ordering experience and also of marketing messages that guests receive. I guess broadly philosophically when I think about AI, I think it favors incumbents and it's something that is going to help serve Our customers, our mission, given the scale that we're operating at, 76,000 restaurant locations across 600 brands, 85,000,000 restaurant guests. And then transaction count that's Over $2,000,000 on a daily basis and historically in the $1,000,000,000 All of that is a great data footprint For us to really yield great results utilizing AI. Speaker 400:25:02That's great. And maybe just A follow-up. The announcement for Noodles taking pay is fantastic. I'm curious, you've had Some nice wins over the past couple of quarters. Can you talk about the pipeline for pay deals? Speaker 400:25:18How do you feel about it today? And How do you think about the conversion of that? Because these large deals are certainly great to see come through. Speaker 200:25:27Yes. Thank you. We were very pleased with the Noodles Deployments, as I mentioned in the prepared remarks, this is the 3rd quarter in a row we've had an enterprise brand with over 300 locations adopting OlowPay. We're excited about the pipeline, especially when we can showcase results like what I just articulated Terms of authorization rate improvements and fraud reduction and have these calling card deals, it gives More credibility as reference accounts for other enterprise brands coming on board and of course emerging enterprise brands coming on board. So a very rich pipeline. Speaker 200:26:02I just note, it is true that you have restaurants typically reevaluating payments about every for 5 years. And so I would think about that as you have understand how many at bats we have over what timeframe For selling Olopay into the existing customer base that it will probably take 5 years ish For us to have an at bat with every single account that's in the Olo customer base, but we think there's a lot that is Out there for us and it's a huge opportunity, particularly as it scales beyond just card not present transactions. And we're now able to scale OlowPay to also satisfy card present transactions that represents a 6x Growth in the addressable transaction pool and gross payments volume for OlowPay. Speaker 400:26:59Great color. Thanks Noah. Thank you. Operator00:27:04Our next question is from Stephen Sheldon with William Blair. Speaker 500:27:10Hey, Noah. It's Peter. You can have Matt Fialik on for Steve and Sheldon. Thank you for taking my questions. Fink wisely represents 4 of the 14 modules Olo offers. Speaker 500:27:22And I was wondering if you could touch on the traction Between those different wisely modules, just curious if some of those modules are seeing stronger adoption than others and what those would be? Speaker 300:27:35Yes, I can take that one. So in terms of the Engage suite, there are a number of modules within the suite that encapsulate the products available within the Engage suite. So there is the GDP, our marketing automation Product post our reservation waitlist management solution as well as sentiment. I would say in terms of penetration, Marketing automation tends to be the highest with a fast follow within host and sentiment. And GDP having Relatively new to the market is still in the process of scaling, but in terms of stack ranking, that's how the And individual modules back rank. Speaker 500:28:24That's helpful context, Peter. Thank you. And then it sounds like there were several multi module This quarter and up selling the existing customer base has been going quite well. And I was just wondering if you could talk about what is driving that positive dynamic? Speaker 300:28:41Well, I think we've noted for Speaker 200:28:42a couple of quarters now that in emerging enterprise, There's a great opportunity for customers to come on to Olo with multiple modules from the onset of the relationship. And certainly we've seen that again this quarter. I think with the enterprise market with a lot of the existing customers, There's just a great appetite to do more with Olo now that we offer more capabilities. And it's not just in ordering, but Also in payment, it's also in engagement. And I think I've made this point before, but I'll emphasize it again. Speaker 200:29:20We play this mission critical role in the digital transformation for our customers and they look at Olo as a bit of They're Sherpa for the climb of digital transformation. So we can meet them where they are and continue helping them to add more capabilities and drive More digital transactions. I think that goodwill and interest in leaning into the relationship with Olo and getting More digital to achieve their ambitions of getting to 100% digital is really at the root of our success in growing ARPU through multi module adoption. Speaker 500:30:01That's excellent. Thank you both and a nice quarter. Speaker 200:30:05Thank you. Operator00:30:08Our next question is from Gabriela Borges with Goldman Sachs. Speaker 600:30:14Hi, good afternoon. Thank you. I wanted to pick up where the prepared remarks left off, which is around macro dynamics in the quarter and them being in line I have from Noah Rapida. I'm hoping you can share a little bit more about the demand environment and the pipeline more holistically. How are your customers feeling about their own businesses? Speaker 600:30:34How are they feeling about the willingness to invest in technology this year? Any color on Essentially, the demand environment given all the macro volatility we've seen. Thank you. Speaker 300:30:46Yes. What's interesting is if you look at the end market restaurants and you look at what they've reported over the past quarter, a lot of resiliency and growth, frankly, within their business. And that's encouraging. And that's helping to support the positive signs we're seeing both from a sales and deployment perspective. That said, as we look ahead throughout the balance of the year, we want to remain prudent in terms of how we think about the potential for side in the model, just given that we're early in the year and while things are encouraging, There's still quite a bit of time to kind of move throughout the year. Speaker 300:31:36But I would say broadly again from what we're Seeing in the market and what we're learning in conversations with our customers, A lot of encouraging signs and a lot of resiliency in the end market. Speaker 600:31:52That's right. Thank you. And the follow-up I have is, I wanted to connect the dots on some of the success you're seeing with cross sell with your go to market efforts. Can you share a little bit on priorities for How do you engage multiple senior sponsors at your customer across not just the IT organization, but also potentially the marketing organizational higher up in the organization in order to effectively cross sell across more than one department? Thank you. Speaker 200:32:22Gabriel, this is Noah. Thanks for the question. I think it's really part and parcel with being strategic sellers And selling into the enterprise means that even for that initial onset of the relationship, we have to meet with multiple stakeholders And so we're often known, maybe not as the From there, we are Speaking with our champions, our sponsors about getting to the other members of their executive team typically when it's A new suite that we're selling in, if it's payments speaking to the finance or the treasury team, if it's Engage speaking to the marketing department, That becomes an easy reference point because they know Olo as this mission critical platform that is their digital transformation partner. And I think it's something that our sales team is getting incredibly adept at And it's part of that discipline that Diego Panama, our Chief Revenue Officer, has brought into the company along with his senior team And being able to really go deep in those accounts, grow ARPU, become more mission critical in the process, but do that by touching multiple executives, Speaker 600:34:05That makes sense. Thanks for the question. Speaker 200:34:08Thank you. Operator00:34:15Our next question is from Mark Bauchner with Stifel. Speaker 300:34:19Hi, great. Thanks. Mark Bauchner on for Brad Reback. Just had a quick question on Olo Connect and how that can help on net new versus expansion, kind of breaking those 2 out? And then also, How that can kind of relieve any of the deployment cycle issues you guys have talked about with, I guess lack of resources in terms of the restaurants being able to focus on deployment. Speaker 300:34:44Thanks. Speaker 200:34:47Yes, we are very excited to announce the Olo Connect program, which is really the evolution of what has been a very rich Ecosystem of Integrated Technology Partners. And as I mentioned in the prepared remarks, Olo Connect is really about Tiering partners, a selected group of those partners based on things like their tenure on the platform, their scale in shared brands And so it's an objective way of showing other customers who represent prospects for those Olo Connect partners just how much other customers value the services that they provide. Olo certainly can't do everything under the sun with regard to restaurant technology. We rely upon and love our partner ecosystem to augment our platform. And clearly, this is an opportunity for us to Enlightened Way through this Olo Connect program. Speaker 200:35:56So the response has been really positive from the Olo partner network. It's been really positive from our customer base getting these additional sources of credibility and understanding tenure and scale and customer satisfaction through Olo Connect. And it's still early days. We're excited to grow that program, and I want to really commend our partnerships team for the work that they did in a really thoughtful way putting this program together and where the benefits not just our partners and Olo, but Speaker 100:36:35Great. Thanks. Speaker 200:36:38Thank you. Operator00:36:41Ladies and gentlemen, we have reached the end of the question and answer session. I would like to turn the call back to Noah Glass for closing remarks. Speaker 200:36:49Okay. Well, thank you again for joining us today. We are honored to be a mission critical platform for the restaurant industry and to serve as the end of hospitality, helping restaurants drive sales, do more with less and make every guest feel like a regular. I want to say thank you to team Olo for your hard work and execution. We have miles to go before we sleep. Operator00:37:14This concludes today's conference. Thank you for your participation. You may disconnect your lines at thisRead moreRemove AdsPowered by