Olo Inc

volumes, our ability to sustain our profitability, customer adoption of products and expectations for capturing market share, and our delivery of new products or product features. We undertake no obligation of updating any forward-looking statements made during this call to reflect events or circumstances after today. These statements are subject to risks, uncertainties, and assumptions. Should any of these risks or uncertainties materialize, or should any of these assumptions prove to be incorrect, actual company results could differ materially from these forward-looking statements. A discussion of the risks and uncertainties related to our business is contained in our quarterly report on Form 10Q for the quarter ended March 31, 2021, filed with the SEC on May 12, 2021, and our quarterly report on Form 10Q for the quarter ended June 30, 2021, that will be filed with the SEC following this earnings call. And our remarks during today's discussion should be considered to incorporate this information by reference. also during this call we'll present both gap and non-gap financial measures reconciliations to the most directly comparable gap 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 8k furnished to the sec finally In terms of our prepared remarks or in response to questions, we may offer incremental metrics to provide greater insights, the dynamics of our business, or quarterly or annual results. Please be advised that 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 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.

Thank you, Stephanie. And officially and on the record, welcome to Team OLO. Q2 was another strong quarter of profitable growth for OLO, helping even more restaurant customers continue to drive digital sales while many restaurant dining rooms reopened around the nation. On our last earnings call, I discussed OLO's transactional SaaS business model and our new ambition to reach digital entirety as the restaurant industry transforms to digital, touching, adding value to, and deriving revenue from every restaurant transaction. As the U.S. economy and restaurant dining rooms began to reopen in Q2, restaurant digital sales proved durable. demonstrating that the restaurant industry's digital transformation is not just about delivery, but all ordering modes and across all service models. Delivery, drive-through, table service, and takeout. In fact, according to data from NPD Group, there are more non-delivery digital orders than delivery digital orders. Olo's platform is enabling restaurant brands to digitize every transaction, not just delivery transactions. During Q2, we celebrated more restaurant brands replatforming to Olo, and we were proud to welcome Potbelly Sandwich Works to the Olo platform. Potbelly migrated from a legacy tech stack, and like Papa Murphy's, Chili's, Maggiano's Little Italy, Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, and many others before it, Potbelly replatforming to Olo again demonstrated that leading restaurant brands can no longer simply check the box and have just any digital ordering solution. Rather, they need to best meet the needs of the on-demand consumer by utilizing what we believe is the industry's most sophisticated on-demand commerce platform, benefiting from a broad and deep set of capabilities and an open partner ecosystem of over 100 best-of-breed restaurant technology partners. Our launch with Potbelly furthers Olo's conviction that Open SaaS wins over homegrown and closed proprietary software. We also deployed new virtual brands, including Wingstop's launch of their virtual brand, ThighStop, a creative and successful solution for the chicken wing shortage that led to price inflation. The launch of ThighStop demonstrates the flexibility that the Olo platform provides to its customers, allowing restaurant brands to operate more nimbly, in this case, helping to solve business challenges and bringing Wingstop closer to realizing its long-term strategy. Another critical business challenge Olo is helping to solve is the problem of driver availability for delivery service. Driver shortages are widespread and have led to reduced driver availability and delivery delays for restaurants and consumers. Olo Dispatch, our delivery as a service solution, provides a nationwide network of more than two dozen delivery service providers, or DSPs, covering 97% of our customers' U.S. store locations. Dispatch's ability to provide redundancy and increased driver availability is highly differentiated and creates substantial value for our customers. A great example of customers realizing dispatch's value was the Q2 launch of Jack in the Box as a dispatch-only deployment, which will enhance their existing digital ordering for takeout program. This deployment with Jack in the Box further demonstrates OLO's ability to land major enterprise brands with one product module to initiate the customer relationship. Just as Subway launched with OLO Rails, Jack in the Box is another major enterprise brand launching with OLO Dispatch and gaining familiarity with OLO's broader capabilities and overall platform security, stability, and extensibility. Jack in the Box is also an exciting example of our success in the quick service restaurant or QSR category. As the largest component of the restaurant industry by both locations and transactions, QSR brands represent the greenfield industry segment that we love for its high average location count, industry transaction share, and cornerstone commitment to convenience. We've experienced early success in QSR with Checkers and Rallies, Culver's, Dairy Queen, Crystal, and now Jack in the Box. And this segment continues to represent a promising growth opportunity for Ollo. As I mentioned in our Q1 earnings call, many QSR brands have grown through franchising, resulting in disparate technologies used throughout their fleet and the kind of heterogeneous environments that Ollo has made a specialty. integrating into multiple restaurant technologies to create a unified consumer experience. We remain committed to helping the QSR segment go digital to better meet the needs of the on-demand consumer. As we discussed at length in our Q1 earnings call, the other side of OLO's two-sided network is our partner ecosystem of over 100 restaurant technology partners. This two-sided network creates a flywheel in which adding a new customer to our restaurant network benefits all OLO partners, and adding a new technology partner to our partner network benefits all OLO customers. This quarter, we continue to expand our ecosystem and are proud to have added Grubhub to our growing list of OLO Rails partners. Olo Rails enables restaurants to syndicate menu, prices, and content to digital ordering aggregators and allows such aggregators to send orders into the restaurant kitchen without requiring manual intervention of transposing an order from a tablet to a point-of-sale terminal. Brands such as Smoothie King have touted the benefits of the partnership in ensuring accurate menu information and reductions in order errors. Olo's deployment of the Grubhub integration will continue in the coming quarters. This new partnership with Grubhub means that OLO customers can now utilize OLO Rails to operationalize and manage all major national digital ordering aggregators, Caviar, DoorDash, Grubhub, Postmates, Seamless, and Uber Eats, in addition to the regional and local aggregators that are meaningful to operators in specific geographies. OLO is fulfilling its promise to serve as a common carrier, ensuring a level playing field for all aggregator partners. We believe that Olo serving as a common carrier is in the best interest of our customers and the restaurant industry. Just as we continue to expand our network of Olo Rails partners, we're simultaneously investing in tools for restaurant operators to manage transactions across the growing number of integrated third-party channels. In Q2, we deployed the Olo Rails performance tool to help restaurants better assess, track, and analyze digital performance and revenue across channels. ultimately helping corporate teams and operators to maximize digital sales revenues. Additionally, we completed development of the mobile app version of Serve, our white-label branded ordering experience. Brands are now able to offer feature parity with the Serve web experience, which has boosted conversion rates through an improved user experience and faster order completion by five seconds on average. The new Serve mobile app allows brands to offer an app version of their digital storefront without the need for large custom mobile app budgets. As I mentioned last quarter, Team Olo continued to work from home in Q2 due to COVID-19 restrictions. In the second quarter, we provided our employees the flexibility to continue working from home and reopened our New York City headquarters office on a voluntary basis. We are proud to have adopted an inclusive work policy that recognizes that our employees need and deserve flexibility. Additionally, as a continuation of our focus on ESG, as well as diversity, equity, and inclusion, I'm also excited to share that we've published our diversity demographics on OLO.com as well as our DEI strategy and goals. OLO is committed to building a diverse and inclusive culture that promotes growth and equity for underrepresented groups as reflected by our transparency and continued work on this front. I'm personally honored to be deeply involved in these efforts along with my executive team as DEI is hugely important to our success as a company

and as a pillar in the community.