All right, excellent. Well, boy, we're gonna have to go two minutes faster here. I'll talk fast. We're making it down the home stretch here. We have Olo joining us now. My name is Matt Hedberg, for those that don't know me. Peter Benevides, CFO of Olo, is here. We are grateful for your support. And Gary, there we go. We got new IR at Olo. So we're grateful for your support here. Thanks for having us. So all right, Peter, you know, it's, it's been a, it's been a, you guys, you know, if, if you, if you look back, you know, sort of like pre-COVID, and then COVID hit, and it was sort of meteoric growth, and then we've seen some post-COVID, kind of, headwinds that, that, you know, is sort of like a getting back to reality. So it's been a, it's been a sort of a wild end market demand cycle for you guys. Can you talk about just the overall health of your business? Let's like, and let's, let's just kinda cut through some of the noise because there's, you know, there are some comparison things, but just talk about level set us with the overall health of the, the demand environment. Obviously, we're gonna drill down from there, but just level set us, you know, coming out of this Q3 quarter. Yeah, so a couple of things. I think, you know, going way back, even pre-COVID, you know, many of the trends that we saw emerge throughout COVID and even persist post-COVID were trends that we saw in the business years ago, which is that both the brands and consumers are embracing digital, digital transformation, and that continues to be the case even in the current environment. I'd say from an end market perspective, late 2022 and throughout portions of 2023, brands were faced with a variety of challenges on the macro front, whether that be labor constraints, commodity price issues, and so on. And we've seen continued, you know, progress in terms of those metrics getting back in line with kind of how they performed historically. So, you know, labor environment has been better, commodity prices have softened. And what that's resulted in is the desire to do more in terms of embracing the digital transformation. So we are hearing from our brands that, for example, the ability to adopt digital technologies to help drive incremental sales or to help improve operating margins are an area of focus for folks. So I think the end market has definitely gone through some challenges over the past 12-18 months, but certainly alive and well in terms of wanting to embrace digital transformation. So yeah, we've got a lot to talk about. And I guess I made the assumption that people know what Olo does. Maybe weave in some of the most significant... I mean, you talked about digital transformation for restaurants. Yeah. Yeah. Yeah. Talk about some of the most significant long-duration catalysts that the business is really helping solve right now. Yeah, so I'd say at the core, or traditionally, Olo was focused on digital ordering, you know, for the off-premise occasion, right? So digital ordering for pickup and delivery. We then moved into payments. We announced the payments product back in early 2022, which has ramped really nicely over the past year and a half. And then we've moved into guest data with our Engage suite and the ability to collect, analyze, and act upon guest data. And I think what we are fundamentally helping brands do is really scale hospitality. And what we mean by that is being able to identify the guest and then use that information to drive all business insights. So not just personalization, but even how you think about site expansion. Where do I open up my next restaurant? You can glean a lot of that information from what you learn about your current guests. So when you look across those three product suites, Order, Pay, and Engage, I think it might not be very evident, but what is common across all three of those product suites is the ability to collect and leverage guest data. Yep. Yep. Yep. Yeah, and that's been one of the most exciting things that I've seen the platform evolve over the years. You have made a lot of both internal and external investments to drive that personalization. I think we, as consumers, can appreciate what that could mean for us- Yeah ... from a lot of your brands. Let's talk about two of the sort of most important drivers of the business, one being location ads, and the second being ARPU expansion. Yep. I think when you guys were smaller, it was more of a location ad story. You had fewer products to sell. Yep. As you've added products and you've become bigger, you know, it, some of that growth has flipped a little bit to ARPU expansion. Yep. Talk about that dynamic at play here. Yeah. So I think that when it, when it comes to location, the location opportunity, the way that I would probably think about it is, you know, within the enterprise segment of the market, you can kind of segment even further into traditional enterprise, inclusive of top 25, and what we define as emerging enterprise, so brands with 5 up to 99 locations per brand. And we've done a great job penetrating kind of that traditional enterprise segment. Yeah. We're now in a cycle of that evolution in which, you know, wins will come, but they'll be lumpy, bigger wins, versus kind of the repeatable wins that we've had historically. Where we are seeing that repeatable process is more so in the emerging enterprise segment, where the locations per brand are less. But what's attractive about that segment is the ability to really drive ARPU and revenue growth. Because what we found is, it's very typical for that segment of the business to adopt multiple products from the onset of the relationship and then expand from there. So when we think about location adds, that's kinda how we think about it going forward, is the opportunistic big wins within enterprise and top 25, and that repeatable, scalable process within the emerging enterprise segment. You're right in terms of ARPU opportunity. So if I think back to where we were around the time of the IPO, we had about maybe one-third of the product modules- Yeah ... that we have today. That was pre the announcement of payments, and that was pre the announcement of our Engage suite. And now we have, I think, north of 14 product modules, and we've done a good job expanding within our existing customer base over that time period. So three years ago, we were at 2.1 modules. That went up to 2.4, 2.7 this past year, up to 3. So we're making that, you know, that incremental progress in terms of multi-module adoption, and we got to continue to do that in order to, you know, drive more value to our customers, but also expand ARPU and revenue. Remind us again, too, and I forget the exact numbers from the IPO process, but roughly how many location out- what's sort of the total opportunity from a location perspective, including the emerging piece, which feels bigger today than it was even at IPO time? Yeah. So industry-wide, in the US, there are about 600,000 restaurants. You can split that number pretty evenly between what we define as enterprise and then true SMB. Yeah. Right? Single location or maybe, like, 2-3 location operators. Within the 300,000 that are enterprise, there are north of 50,000 that would be defined as emerging enterprise, with the balance being kind of that traditional enterprise. Okay. Okay. Yeah. You're still not. The emerging enterprise is still well above where, like, a ChowNow would play. Yeah, absolutely. So, you know, we're probably around that 20 location per brand. If we were to do an average- Very, yeah ... between 5 up to 99- Yeah ... we're probably around 20 in that segment. Which, you know, again, SMB is really one, onesie, twosies when- It's, yeah ... it comes to locations per brand. Yeah. Yeah. Yeah. It's something that it feels like from a scale perspective, it doesn't make a lot of sense. It is true. Yeah, not now. I mean, what we have done over time is, if I think back, I've been at Olo for a number of years now. There was a point in time where 100 was the floor, and that 100 went down to 50, and the 50 went down to 25, and 25- Yeah ... went down to, now we're working with brands as few as five. And part of what we had to solve for there is the unit economics of servicing those smaller operators and being able to deploy them in an amount of time that made sense. And in order to do that, building out that library of integrations from a POS standpoint and payment, it just took time to do that. Yeah. As we've built out that library, we've been able to go, you know, lower and lower in terms of the brands that we service. Now, I want to talk about... Because you're right, the products, you basically had three when you went public- Mm-hmm ... for all practical purposes, now you have 14. And we'll get to that because I think that increases the stickiness of Olo. Yeah. Let's talk about obviously what you guys announced last quarter, which is Wingstop. Yeah. It's something that's hard to predict. Yeah. It was unfortunate. But what is the, what is the management team doing to prevent the next Wingstop from happening? Because it's, it's obviously a fear that investors have- Yeah ... of, you know, churning out several thousand brands, locations. Yeah. I think the first point is, and we touched on this a little bit during the call, is that this has certainly been an outlier, not the trend. The trend has been to transition from homegrown technology onto Olo, onto software or SaaS. We've done that over 10 times since the IPO, and then we also shared, I think, for the first time since the IPO, our metric around gross revenue retention- Yeah ... just again Yeah ... to show folks like, "Hey, this is, this isn't an outlier." But it's not something we take lightly, right? So I think there are learnings to be had. I do think that one of the things to think about is, how do we continue to add value to our brands in the form of multi-module adoption? I think the more products that we can provide our brands, the stickier the platform becomes. In particular, the ability to have brands use Olo as their data platform- Yep ... as the database of record for all guest data, I think is really critical in terms of being that mission control or mission-critical control point for their business. So, you know, certainly an outlier, but, you know, something that we are that we're, you know, focused on, on- Mm-hmm ... seeing how we can improve on. So, I remember I asked you which products they were using. It was only a cou-- it was only a few. Yeah, so it was Order, Dispatch, and Rails. Order. Yeah. Just kind of- So, no Pay, no Engage. Nothing on data. No. Yeah. So do you... you... You mentioned data, and we can talk about pay. I mean, do you think sort of, like, the faster we see adoption of probably those two in particular, the stickiness factor, it's just gonna become a lot harder for brands- Yeah ... to even—I mean, I think on the call, Noah said it's, you know, you know, he, you know, it's the, it's sort of the strategy was right, but sort of the way that some of these brands are going about it is wrong. And I think if we increase the focus on data and payments, I have to imagine that just makes it even stickier at that point. Absolutely. Yeah, we agree. Right strategy, in fact, validating the strategy- Yeah ... right? Sounds a lot like the strategy we're in process of implementing. Right strategy, not necessarily right tactic. Yeah. I think, what is attempted to be accomplished there is something that we can provide today through the suite of products that we offer. But you're right, to the extent we can increase product adoption, in particular with pay and data, the more and more stickier the platform becomes. So let's talk, let's talk about data, 'cause what was the acquisition that really kind of jumpstarted that? Wisely. Wisely. Yeah. ... Talk about penetration of that across the brands today, and- Yeah. And where could that go? Yeah, so still early in terms of penetration. We've talked about key wins every quarter. Denny's was a notable win earlier this year. CPK, California Pizza Kitchen, was a recent win that we announced. So making progress within both the enterprise and emerging enterprise segment of the market. But ultimately, you know, the ability to capture guest data and then leverage that to drive business deci- Yep ... decisions, I think, is a real, it is, it is hugely strategic to the, the value that we can provide to our customers, and, and something that is, like, front and center in terms of what brands are, are trying to do today. And just coming back to the three product suites and how they sort of all work in concert, toward that goal. One of the things that we had done in conjunction with the announcement of Olo Pay is announce a capability called Borderless, in which we created the ability to store user information at the platform level, so that any time you check out on any Olo Pay-enabled, brand, you can do so in a single factor authentication. You get a challenge text, you click that, everything gets populated, and, and you're on your way. Now, that's great in terms of taking friction out of the checkout process, but I think more importantly, it now allows the brand to collect data on that guest that they formerly would not have been able to or, or weren't collecting. Just to put some math behind it, so historically, about 70% of guests would check out in a guest status, meaning they weren't in a logged-in state. Yep. Brand knew very little about that guest. With Borderless, it's actually been inverted, where over 70% are actually in a logged-in state, where the brand now has that data to then populate the data platform. So that, that's how we're kind of, that's how all of those three product suites sort of work in a flywheel in terms of Order grabs the transaction, Pay grabs the data, and Engage enables the use of that data. And some of the ways we're using that data today, which we may or may not have talked about on prior calls, is we have a capability called Smart Tags. So what we do with Smart Tags is, inside the data platform, you can actually apply a tag to a user to signify something about that user. So maybe Matt is a high lifetime value guest because you come in once a week, and you spend X amount of dollars when you come in. Well, the next time you make a reservation at the restaurant, and that restaurant is powered by the Olo Host reservation system, there is gonna be a Smart Tag attached to your name so that maybe you get the best seat in the house when you check in. We're gonna seat you by the window, or if it's your birthday, we can flag that it's your birthday, and, you know, you can be greeted with a happy birthday. So that's ways that we're enabling that personalization or use of data, and then pushing that through the other Olo applications. Mm-hmm. That's. Yeah, I... Yeah, it feels like that's certainly a core access of becoming even more strategic for these brands to not only grow their base, but, you know, retain their base too, I guess. Yeah. Payments has been. It's been an incredible growth vector for you guys. And, you know, and we talked about this. It almost feels like with the success of payments, it's almost like people are like: Well, there's a margin dilution aspect. Yeah of payments that, you know, I can't get my arms around. Let's, let's- we'll get to that in a second, but talk about the success of payments. Why has it been so virally adopted? I mean, you spent the time on Borderless, but let's just talk- Yeah about more broadly, payments. Yeah. So we've been really pleased and, and frankly, excited about the progress that we've made to date. We're on pace to do over $1 billion of GPV this year. That's 4x what we did last year. And I'd say there's really two reasons why I think Pay has been as successful as it has been. One is what I'll call the performance metric, so things like authorization rates, fraud rates, chargeback rates. When you, when you look at Olo Pay's performance versus the incumbent processors, we outperform across all those metrics. So that, that's number one. But I think the, the coupling of Borderless plus Pay and really making Pay strategic from a guest data capture perspective has been a, has been a, a key differentiator. And that was a business decision, not necessarily a technology decision, meaning Olo Pay and Borderless are two separate, you know, functionalities. We made the decision to combine the two of them again to increase the adoption and demand for Olo Pay. Now, today, Olo Pay is only servicing the card-not-present transaction. Just to maybe do a little math, so industry-wide, digital is about 15% of total transactions, and we processed last year about $23 billion of GMV on the platform. So if you assume the industry average is consistent with the Olo average, that means once we have card present available, that $23 billion goes up to something north of $150 billion, and that's just within the install base. So while I'm excited that we've hit that $1 billion or on pace to hit the $1 billion GPV mark, that's still less than 1% of just our install base's- Mm-hmm - annual GMV. So, card present's in development now. The plan is to continue to develop through the first half of next year, be in market, hopefully by the second half of next year, and then, you know, revenue contribution will show up in 2025. But, you know, that's a huge opportunity to service. Totally. So now let's talk about the margin impact. Yep. On the call, obviously, the growth is exceeding everybody's expectations, and it feels like it's gonna be even bigger next year. The flip side of that is gross margins- Yep. Obviously, a lot lower. Talk about how you're managing, I guess, both the gross margin line, but also kind of the EBITDA line. Yeah. Yeah, so maybe just starting with gross margin for a second. So what we have shared in terms of targeted gross margin from the payments business is a 20% blended gross margin. We're not there yet. There's two things that need to happen: one, with scale comes better pricing, that's one; and then, two is card present, where the economics on from a margin perspective or card-present transactions are a little bit more favorable than card not present. So those two things have to happen such that we can grow our way into that 20% gross margin target. Now, one thing that's attractive about the payments business is that where you see the leverage is in OpEx, right? While the margins may be less- Yeah ... at 20%, a large portion of that falls to the bottom line. Yep ... because there's so much scale in payments within R&D. As compared to software, where oftentimes, yes, you have 80% software margins, but a lot of that gets reinvested in the platform for scalability and security and capabilities, features, et cetera. That's not necessarily the case with payments. A lot of that 20% will fall to the bottom line over time. So what we're attempting to do is, again, through further adoption of card not present, the introduction and scaling of card Present, grow both revenue and gross profit dollars, to a point in which we're overcoming the R&D investments, and more and more of that falls to the bottom line. Hmm. Yeah, that makes a ton of sense. So yeah, that's, guys, where I was sort of reflecting on the quarter and for the reaction, and it feels like—I mean, I guess I get the questions. Yeah. And I think you guys have had those questions as well about the gross margin impact. So it's... Yeah, I think, you know, it feels like it pays on a really strong trajectory, especially with added features- Yep ... coming up here. But I think your comments on gross profit contribution are super interesting as well. Yeah. I think maybe some people forget that piece of the- Yeah, I think so. I mean, if you, if you look at just kind of pure payment businesses, and you look at, you know, EBITDA as a percent of net revenue, it's, you know, 60%-70%. Yep, yep ... EBITDA EBITDA of net revenue, right? So that would be the analogy of, like, of the 20%. You have a massive portion of that, that is, that is falling to the bottom line. When you think about building. You haven't guided to 2024. Mm-hmm. When you think about building blocks, in terms of, you know, you kind of gave us some breadcrumbs in terms of location ads- Mm-hmm ... kind of ARPU, and we can make our assumptions on pay, but maybe just help us think about those building blocks. Just better articulate that. Yeah. So similar to this year, the main driver of growth will continue to be ARPU expansion. And the reason for that is, again, if you just think about where we are in terms of modules per location, there's just a huge opportunity to go from where we are today to that 14, 15 product modules. So the opportunity is massive. And then, in addition to that, you have location growth in that 4-5K range, which is consistent with where we are this year. In terms of the location adds, really pushing into emerging enterprise- Yep ... as we have this year. And then, to the extent we have large enterprise wins, wins within the top 25, that would be incremental to that goal because it's hard for us to kind of plan around those wins- Yeah ... and forecast around that win, so that would be incremental to the 4-5. And how we're able to grow the top line as well while at the same time gross margins are declining and increase operating margins is stabilizing OpEx. So we invested really across all three areas this past year into 2023. We're at a point now where we expect more stability in OpEx, so as that stabilizes and gross profit dollars continue to grow, that's how we'll be able to expand operating margin. I'm gonna pause here for one sec, if there's any questions out there. Just a question about- Yeah. Just a question about the cash. I mean, is it, is it kind of a liability at this point? I mean, it, it feels like it's, it's just, it's keeping you from people from buying the stock, because I think people are afraid that, you know, the cash will be used to buy something, and then there won't be any valuation support. How do you all think about cash? Just kind of my big question. Yeah, so we are continuing on with a buyback that we announced late in 2022, that's continuing on through 2023. And that's kind of been the primary use of cash, and then separately, continuing to invest in the business organically, some of the commentary we just shared on areas of focus. And then lastly, looking at opportunistic M&A opportunities. So sort of in those three, those three, buckets. I will say on the M&A front, you know, nothing to mention at this point. The way we think about it is, are there opportunities out there to accelerate the product roadmap and get from point A to point B faster? Where we stand today, there's really nothing that comes to mind, but, something we continue to look at. What is this... The question that we get, and I've asked you this, too, what is this... You know, 'cause you do have, you have a significant cash balance, you've got great brands, you've got great innovation... You know, some, you know, somebody would say, like, "Why even be public? Like, why, why bother? Mm-hmm. 'Cause it feels like it's sometimes there's just overhangs to that. What does Olo look like in a couple of years? 'Cause it feels like there's a tremendous amount of strategic value to what you've built. You're helping these brands grow and retain their customer base. What does this company look like in, you know, in the future? Yeah, I think, you know, just on the public point for a moment, I do think it's important, you know, given the segment of the industry that we service, to be public and independent and have the disclosures around the financial health of the business, et cetera, for brands to entrust such a mission-critical component of their business to the Olo platform. I do think that's really important. In terms of how the business looks over the next couple of years, I think that, you know, to the extent we continue to have progress with both card-not-present and card-present payments, coupled with further growth in the Engage suite, I think you see a business with, you know, healthy growth and gross profit dollars and a continuation of expanding operating margins. Helpful. And then, you know, when we... I kind of, again, sort of like, as we think forward, you know, you guys have had a lot of important decisions you've made in the past around acquisitions- Mm-hmm. and product direction and, and some of the, some of the success with pay. When you think in the future, what are some of these, like, what are... is there, is there- are you thinking about, like, these are, this is a big decision we have to kind of think about? And, you know, Yeah. Could you shed any light on some of these important pivot points in your future? Yeah. I think that, you know, some of the big decisions to be made is really around, you know, in the pursuit of 100% digital, what are the things that we need to do to accelerate that vision? And we're starting to do some of that today in the form of kiosks and QR code ordering, and being able to service that on-premise transaction. But there's a massive pool of transactions that still occur at the drive-thru, none of which are digitized, and trying to think through what are the things we need to do in order to support businesses or brands in their pursuit of 100% digital. So I think the biggest decisions that will need to be made there is really decisions around prioritization, right? What do we do first in order to further enable 100% digital? Excellent. Well, we are... I'm just looking now, we're a couple of minutes over. But from all of us at RBC, Peter, thank you. Give Noah our best. I will. Best of luck finishing out this year and into next year. I appreciate it. Cool. Thank you.