Olo Inc

Greetings and welcome to the OLO 3rd Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow for more presentations. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I'd like to turn the conference over to our host, Kerry Fuge, Senior Vice President of Investor Relations. Thank you. You may begin.

Thank you, good afternoon, and welcome to OLO's third quarter 2024 financial results conference call. Joining me today are Noah Glass, OLO's founder and CEO, and Peter Benavides, OLO's CFO. During this call, we will make forward-looking statements, including but not limited to statements regarding our expectations of our business, our industry, our operations, and future financial results. These statements reflect our beliefs and assumptions only as of today and are subject to a variety of risks and uncertainties that could cause actual results to differ materially. For discussion of these material risks and uncertainties, please refer to our Form 10-Q, which was filed today, and our other SEC filings. During today's call, we'll also present GAAP and non-GAAP financial measures, reconciliations, so the most directly comparable GAAP financial measures are available in our earnings release, which is available on our investor relations page on our website. And finally, in terms of our prepared remarks or in response to your questions, we may offer incremental metrics. 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. With that, I'll turn the call over to Noah.

Thank you, Gary. Hi, everyone. Thank you for spending time with us today. Team Ollo executed well on our top priorities in the third quarter and positioned Ollo to complete a successful 2024. With customers, we continued to win, retain, and expand. In product, we drove further innovation across our three product suites and ecosystem. including a deeper partnership with EasyCater to provide an additional demand channel for our fast-growing Catering Plus module. In OLO Pay, we announced the general availability of card present functionality on QPOS, and we expect to deploy multiple OLO Pay card present pilots with enterprise and emerging enterprise brand customers on Q and NCR Boyics POS before year end. Financially, we hit our 2024 location growth target one quarter ahead of schedule and delivered yet another beat and raise quarter for revenue and non-GAAP operating income. I'll discuss our customer, product, and partnership highlights for the quarter, and Peter will review our Q3 financial performance and updated guidance. We ended the quarter with approximately 85,000 active locations, adding approximately 3,000 new locations since the end of Q2. ARPU for Q3 was $850, an increase of 15% year over year, and net revenue retention was above 120% for the fourth quarter in a row. We're particularly proud of our location's performance. We reached our 5,000 net new location additions target for 2024, one quarter ahead of schedule. the OLO restaurant network has never been stronger. In enterprise, Q3 implementations included the full launch of Dutch Bros on OLO ordering and OLO Pay card not present across its 800 plus locations. We deployed multiple order modules and OLO Pay card not present with bakery cafe brand Paris Baguette, who went from sign in to launch within two quarters. We also deployed with Long John Filters on Rails and Nothing Bunts Cakes on Dispatch, two great examples of how Olo's modular platform can meet brands where they are on their tech journeys and offer expansion opportunities as we deliver value. We also saw momentum with existing enterprise customers eager to realize the power of guest data. Both Another Broken Egg Cafe and P.F. Chang's deployed Olo Engage's guest data platform during the quarter. In Emerging Enterprise, we had a strong quarter of multi-suite deployments, including Papa Geno's and Pizza Inn, who both deployed ordering, dispatch, rails, and Olo Pay card-not presence. We're also pleased to welcome Oakberry, a provider of healthy, organic acai bowls, who is one of multiple Emerging Enterprise Flywheel customers that launched with all three Olo product suites in the quarter. We're also seeing the same momentum with existing emerging enterprise customers regarding OLO Engage, with Kolachi Factory and Thompson Restaurant each deploying multiple modules from the Engage suite. We're landing and expanding with brands through the strength of our open platform, and this was on display at our inaugural partner summit in Chicago. Attendance was at capacity, and the event brought together select members of our 400-plus ecosystem partners alongside some of our most innovative customers. Discussions focused on how we can collaborate to solve the industry's biggest challenges, like proving ROI, creating a seamless guest experience, and moving beyond the limitations of in-house development and data silos. We remain committed to the philosophy that open beats closed and that our open platform approach can accelerate technological advancements in our industry and we delivered further innovation through direct investment in our platform in our october fall release we announced over a dozen product enhancements to help brands increase orders streamline operations and improve the guest experience in borderless we integrated loyalty program sign-in so guests can now enjoy the benefits of both their borderless accounts and their loyalty rewards through one passwordless experience. Borderless continues to scale at a rapid pace with more than 10 million accounts, up 10x from 1 million accounts just one year ago. And we believe this new loyalty program integration will further increase borderless adoption and improve the guest experience. When we began this journey, It was because we believed that Borderless could be the true manifestation of a scaled, two-sided network to connect enterprise restaurants and their guests, a unique offering that only Olo could bring to life. We're thrilled to see Borderless and its network effect proving out our thesis and scaling 10x over the past year. We added functionality to Catering Plus to help operators manage complex business accounts within their existing OLO dashboard and give sales managers a comprehensive view of their guest data. And today, we announced a new menu integration with EasyCater to make it easier for brands to manage their third-party marketplace catering demands and scale this increasingly important channel. CateringPlus continues to ramp within our base with new Q3 deployments with brands of all sizes and service models like Bojangles, Cowboy Chicken, and Mendocino Farbs. Catering Plus adoption has been a strong expansion driver, and we believe it sets us up well to sell additional OLO modules like OLO Pay, Dispatch, and Rails to support a brand's catering channel. And most importantly, we've made great progress toward bringing OLO Pay card presence to market. As we shared in our fall release, Brands on QPOS can now use OLO Pay to process card-present transactions and aggregate the associated basket-level data into the OLO Engage GDP. Q is our first generally available direct POS integration for OLO Pay. We're completing our integration work with NCR Voyex, and we have discussions underway with additional providers to further expand our OLO Pay and engage integrations. We've been running the Olopay go-to-market motion in parallel with our technical work, and we're excited to share that we expect to launch five Olopay card present pilots in Q4 with brands on Q and NCR Voyex. We're working with brands across multiple restaurant categories, and the majority of these pilots are with enterprise brands. We see this as a great start And the OloPay pipeline is building with our existing brand customers, as well as with new enterprise brands interested in Olo's full stack payments offering. We have work ahead of us. However, the early signs are encouraging for OloPay's product market fit for off and on-premise transactions. We listened to our brands when they told us they needed a payment solution purpose-built for enterprise restaurants, and we're bringing it to market. We also have news regarding Team OLO. We're excited to welcome Jason Ordway as our new Chief Technology Officer, overseeing OLO's engineering function as part of COO Joe Lambert's leadership team. Jason brings a wealth of technology leadership experience to OLO, particularly in the areas of enterprise scale platforms and the management of remote engineering teams. For the last seven years, Jason was CTO at Slice. a restaurant tech platform used by 20,000 pizzeria locations, where he led a fully distributed team of 225 professionals across nine countries. Jason's a great fit for Olo in terms of cross-functional leadership, experience, and culture. And we're looking forward to him helping Olo deliver even greater innovation to our restaurant brands and their guests. Finally, we shared in today's 8K filing that Chief Revenue Officer Diego Panama will be leaving OLO at the end of the year. Diego joined us in July 2022 and has led all aspects of the customer journey for our brands, including sales, marketing, customer success, and business development and partnerships. He built our sales engineering team to support the increased technical selling required as we added the pay and engaged suites. succeeded in ramping up our emerging enterprise sales motion and streamlined operations to shorten deployment timelines and more efficiently support our customers. As we looked to 2025 and beyond, Diego and I concluded that OLO needs an executive to focus solely on driving bookings. And we've mutually agreed to part ways. Diego will help us execute on our Q4 plan, assist with a smooth transition, and act as an advisor to me. Sales leadership will report to me on an interim basis and will initiate a search for a new sales leader shortly. Additionally, COO Jo Lambert will expand her role to oversee the marketing, customer success, and business development and partnerships functions going forward. We believe this will strengthen the connective tissue between product development and commercialization. We thank Diego for his contributions to OLO and wish him continued success in his career. Q3 was another strong quarter across the board. As we move to the end of the year and begin setting our sights on 2025, I'm energized by Team OLO's ability to serve our customers, drive further product innovation and industry collaboration, and deliver financial results. We are winning with the strength of our open, enterprise-grade platform, while setting the table for future success by enabling data-driven personalization of the guest experience. As other verticals have shown, personalization drives profitable traffic and true customer loyalty. At Ola, we're laser-focused on being the clear leader in guest personalization for enterprise restaurants. I'll now turn the call over to Peter, who will review our third quarter financial highlights and updated guidance. Peter?