Supporting us for what is this, probably our third, maybe third in-person, or yeah, we did a couple of virtual ones at first, although it was a COVID IPO. I really appreciate you guys showing up as always. Thank you for having us. Appreciate it. Noah Glass, CEO, Peter Benevides, CFO from Olo. So Noah, I just want to start, you guys have been putting up some really, really solid results recently, and it really, I think, is starting to catch people's attention. You guys have been, it's been a roller coaster from pre-COVID, during COVID, and then that sort of post-COVID decline. Any level set us on sort of where we're at? I mean, do you think the worst is kind of behind us from like a rationalization in that post-COVID, like back to normalcy? Do you think that's kind of behind us now at this point? And now we're sort of in this new normal where customers are understanding it's more than just delivery, more than just ordering. It's an entire ecosystem that people are starting to think is just far more powerful than just delivery. Yeah, I think it's really interesting to look at what's happening in the end market, in the restaurant industry. So the restaurant industry, super durable industry. People have to eat, people choose over time more and more to go out to restaurants to eat rather than to cook for themselves. Obviously, the COVID moment was a really tough moment for the industry and a real accelerant for digital penetration. So you saw a lot of brands that had never done digital before shifting over to digital for takeout for delivery really as the only way that they could serve guests during that time. And then I think everybody thought as things normalized, we were going to go back to where things had been before COVID. Put numbers to it, it's about 8% digital penetration before COVID rose to 16% digital penetration. That really didn't happen. Digital stayed around 15%- 16% for the years that followed. What's been amazing is to see that in recent quarters, we're now higher than COVID levels in terms of digital penetration, whereas around 18% of all transactions in our industry, massive, massive industry, but 18% of those are digital transactions. So the core role that Olo has always played in helping restaurants to do digital well, digital ordering for takeout for delivery continues to be really important and has grown in importance even looking at COVID as a baseline. And of course, since the IPO, we've expanded what we do for restaurants in a pretty dramatic way. The launch of Olo Pay, which we're super excited about, the acquisition of Wisely, which led to Olo Engage. And those three things together, Order, Pay, and Engage, now what we refer to as the Olo flywheel, really helping restaurant brands for the first time harvest transaction data and use that guest data to personalize every experience, every communication, and fundamentally drive profitable traffic. That is critically important at this moment in time because restaurants really responding to higher costs of labor, higher costs of food have taken price. And as a result of that, traffic has fallen. Fewer guests are visiting the restaurants. And so they're looking for ways to drive traffic. The traditional playbook is value menus, discounts, kind of bomb price and get people back in. We are going a different way of use the guest data to really personalize the guest experience and in so doing to drive profitable traffic. That's being very well received by the industry and helping us to sell in that larger story of how Olo can help. In terms of like land, I assume some of your core original models are still primarily how you're landing. Maybe that's not the case as people think about the importance of digital and customer data. Does it change the land, certainly the expansion, but does it change what brings new brands to Olo? I think we are still primarily landing with the order Suite or a module within the order Suite. We have expanded that beyond Rails and Dispatch, which are delivery and takeout oriented, now to also offer Catering+. Catering+ is a dedicated catering module. That's also just having a moment. Catering as a thing in the industry and Catering+ as a product module within Olo. It's helping us to land these restaurant customers and then tell the story of digital ordering is great in and of itself. It's about efficiency, doing more with less, delighting your guests. And it has this incredible co-product, which is transaction data collated back to the guest. And you can harvest that and harness that in this time of AI to really drive this personalized experience. I think that story really comes into focus once you have digital ordering input. I think one of the things that really stood out to me, you had some churn historically that you're coming off of. I don't know if it was probably a record quarter of location adds, but it certainly was far higher than what we thought. And you raised the full year outlook from five to six thousand location adds. Do you think, as you reflect back on the business, do you think the customers you have today, because they're just even more dependent on Olo, do you think the risk of churn is less? Even as restaurant brands get bigger and they feel like, well, I can do this myself, but why when Olo's delivering me all these great services and value? Yeah, I think just to put some numbers to it, it was a 3,000 location add quarter. It was our greatest location adds within two years. We're now at 85,000 restaurants on the platform. We've never been a larger network of restaurants than that 85,000. To speak to churn, I mean, we're very proud of our gross retention rate being 95% plus since pre-IPO. And I think we also see net revenue retention after the fourth quarter in a row over 120%. So what that means is we're keeping our brands and doing more with them over time. And doing more with them over time means that we are more mission critical to those brands. We're doing more things for them. It's harder to imagine taking Olo out of their stack. I'd also say that flexing Olo as a two-sided network is something we've been very focused on, meaning not just those restaurant brands, but on the other side of the network, all of the technology partners that we work with, 400 integrated technology partners now. That's a lot of work that we've done over the years. It's a lot of value that we can bring to our restaurant customers through those relationships. And then in another way, the 85 million guests that we see every year, now over 10 million of those guests who have Olo platform level accounts, what we call Borderless at Olo. Those are all really important components of our value proposition. And overall, we think that we can do things as this two-sided network structurally that restaurants could never do themselves in building their own platform and at a fraction of the cost. Just one or two more, and then Peter, I'm going to get to you. The location adds, 85,000. Remind us again, I forget, it's the IPO feels like a lifetime ago. When you think about your total addressable market, and it's primarily a North America target today, what is that total? Because it felt like ARPU expansion was the big lever, yet you're driving super strong location adds. What is that sort of like, how high can you think that location total can get within kind of your core North American market? Yeah, at the IPO, I remember we had 64,000 locations on the platform, now to 85,000 locations on the platform. I'd say that the TAM in terms of number of locations in the U.S. that are enterprise, that the market that we serve, remains around the same at around 300,000 locations. So we're just over a quarter penetrated from that standpoint. And frankly, we don't take any of those locations out of our TAM. We think that those are all addressable to Olo. And even the largest brands out there, we talk about this component of enterprise called the top 25 that they tend to have 1,000 or more locations. Five of the top 25 are already on the Olo platform. I think that's Dairy Queen, Jack in the Box, Jimmy John's, Panda Express, and Waffle House, five of the top 25. There's 20 others, and we think that those are all addressable to us, especially as we have offerings like our Catering+ module, where they can try Olo, see what a capable partner we are, and feel comfortable. Olo is a public company. Olo has a strong balance sheet. Olo is doing this for so many brands and is a reliable platform. I can trust this mission critical piece of my operation to this third-party partner in Olo. I wanted to hit Pay early on, and this is the last question. Peter, I'm going to hit you. Pay's growth has been just extraordinary. And now with both card present and not present, it feels like it's unlocking a huge, huge opportunity. I think is the number you think it's going to be, is it $60 million this year [for] guidance? High 60s. High 60s. High 60s. Can 60s. Can you talk about where you're seeing some of the most interest? Because it feels just so natural for brands to want to take pay. And then maybe having both card present and card not present, talk about what that could mean for the Pay business. Yeah, I would say for me in the investment community, it's nice to hear you say that there were so many skeptics about Olo Pay and Olo's right to win in payments in the early days. Two years ago, we launched Olo Pay. Now, why does the industry need another payments offering? And what we said was, this is really happening organically. We're coming at this because we've been asked to by our customers who are saying the existing incumbent payment solutions are not meeting our needs or they're deficient. There's high fraud, there's high chargebacks. My operators are losing their minds over this thing or that thing. Can you help us? It's really compelling to see the growth of Olo Pay in the card not present form that has been. First year in 2022, we did $250 million in processing volume, up to $1 billion last year in processing volume. And then this year, we're looking at over $2.5 billion in processing volume on Olo Pay card not present. And still, you look at all of the GMV running through Olo, that's closer to $26 billion. So we're not even at 10% card not present. We get really excited when we now are opening up card present because it still represents a five times larger opportunity than card not present alone, so six X put together. And then the opportunity for Olo Pay is $160 billion. That's the GMV done digitally and non-digitally by the existing 85,000 restaurants that we serve. So from that perspective, we're really proud of the 10X growth from $250 million to $2.5 billion over the past two years. We're seriously just getting started, under 2% of that total addressable opportunity. So we're excited about it. And the reason why we're winning is because of being really brilliant at the basics on fraud and chargebacks and being a better payments offering based on listening to the feedback and the pain points of our customers. The reason why we're excited and our customers are excited about the move into card present is the guest data unlock that it represents. That over 80% of all industry transactions at their restaurants and overall are transactions where the guest is not going through the digital channel, but they're paying card present. And so for us to, with Olo playing a role in card present processing, be able to pull those transactions into our platform, collated back to a guest, and knowing the items and ingredients that guest ordered, it effectively makes every order, whether it's digitally placed or non-digital, have the same richness of data as a digital transaction. And that is what we've heard restaurant CMOs play back to us as, "Oh my gosh, that is the holy grail thing I've been waiting for." I can now think about my business like an e-commerce business where I have visibility into 100% of transactions and 100% of my guests, and I can collate the transactions back to the guest to really personalize the experience the guest has on every interaction. Yeah. There's a couple more follow-up questions here, but one of the questions, Peter, that I still get from people is like, "Well, pay success is great, but it's gross margins alluding to the core business." Walk us through sort of how you think about gross profit growth from here. I know you talked about it on some of these earnings calls, but why should that become less of a concern for folks over time? Yeah. Well, I think when you look at other scaled kind of software payments businesses and where the leverage resides, much of that leverage resides in OPEX. And to the extent you can continue to grow gross profit dollars on absolute basis, on absolute terms over time and stabilize OPEX, that can be very accretive from an operating profit perspective. So when we look at the kind of the building blocks of the model going forward, what we're really focused on is how do we grow gross profit growth at a faster rate and in terms of absolute gross profit dollars, while at the same time stabilizing OPEX, which can then help lead to greater operating margin and operating profit over time. And you're starting to see that play out in the model, and you're starting to see that in terms of how we're communicating our expectations for 2025. There are a lot of public company examples that have done this really well, and that's what we're leaning into. So, what I'm hearing from you is focus on growing gross profit, but it's even look at like operating profit or cash flow, really, where you might see some OPEX benefits that wouldn't show up on the gross profit line. Yeah. I mean, said another way, in typical software businesses where you have 80% margin, gross margin, 20% operating margin, there's a lot of reinvestment that has to happen within R&D to remain competitive. It's the inverse with payments where margins are lower from a gross margin perspective, but all of the leverage and scale exists in R&D. At some point, there effectively is no incremental cost to process that additional payment transaction. And that's the path that we're on. To Noah's point earlier, that's still sub 2% of the install opportunity. So we're trying not to push too hard, too fast, but you're starting to see some of that incremental leverage build up over time. And so then when we think multi-year, how should we think about gross just from a gross margin perspective? What's the right way to think about a bottoming and then an acceleration? Yeah, I think that's going to depend on how quickly we can scale card present because of just the sheer quantum and magnitude of the amount of GMV that is accessible. So the rate in which we can drive adoption, I think, is going to ultimately determine how the gross margin profile trends over time. What we have shared is a belief that we can re-accelerate gross profit growth on a dollar basis year on year in 2025 as compared to 2024, coupled with, again, stabilizing OPEX will allow us to steadily increase operating profit and operating margin. From a gross profit perspective, is there any difference between card present or card not present? There is. So card present tends to have a higher gross margin profile than card not present, really for two reasons. One, with card mix, you tend to see a more favorable card mix for card present transactions that lend itself to better economics. What does that mean? A better? So, for example, more use of debit on premise versus credit, where interchange tends to be lower and you can yield a little bit more margin on the card mix. That's one. That's to a lesser extent. The bigger impact is with greater scale from better pricing. So to the extent we can continue to grow the payments opportunity, our rates will come down and we'll be able to yield more margin. Okay. So what I'm hearing is that there's some uncertainty on how card present ramps, but it shouldn't necessarily be dilutive to an incremental card not present transaction. No. No. Okay. That's helpful. That's interesting. When you think about then the cross-sell opportunity, it feels like payments. I can't recall, guys, have you talked about how many of your brands or locations have leveraged payments? The only thing we've shared is the GPV%. Just the GPV. So you can probably do the math on total GPV. Yeah. Yeah. And the one thing we did talk about five card present pilots that we announced this past quarter. Two interesting kind of takeaways from that. One is the majority of those pilots are enterprise, which I think is an important component when you think about the scaling of card present. How quickly can you capture that pool of GMV? Selling into enterprise is important. So the majority of those pilots are within the enterprise segment. And then additionally, four of those five pilots are also card not present customers. And why that's important is because, and we've said this in previous quarters, the work that we've done to set ourselves up for card present is being driven by having a very successful card not present rollout. That then becomes a great lead gen engine into that full-stack payment opportunity, and you're starting to see that play out a little bit with the pilot. Okay. That's helpful. When we think of, so outside of pay, which still seems like you're right, I don't think I left you overly skeptical when we first announced it. I mean, I know you guys were really excited about it, but I think it's exceeded your expectations at least ours. When we think about other avenues of growth and kind of CDP, I've always been enamored with that from you guys. What else are brands asking you for? And I have to imagine it's around that, but what are those conversations that take me from two modules to six modules outside of pay, which we sort of addressed? Yeah. I mean, worth noting, we ended the year 2023, I believe, with 3.6 modules in use per location on average. 3.6? Now 16 modules, our sweet 16 of modules. It's amazing just how much more there is to sell into existing customers. When we talk about our opportunity for growth, we talk about that location ramp up to the full opportunity, but the much larger ramp is selling additional modules and more through growth. I think it was two points ago talked about Honeygrow, which is a great example. This is a customer of ours who, because they use kiosks for taking orders in restaurants, they're using Olo Pay card present on those kiosks. Not one of those five pilot customers, which are about Olo Pay on POS. And there, on a gross profit basis, you see that we're generating for Honeygrow locations six times the gross profit that we do on an average Olo location. which is a great example of a brand using more modules and using Olo Pay card present, in their case on kiosks, and what that can mean for gross profit per unit, which is a great metric for us to focus on. I think just taking the lead on brands asking about, "What can I do with this data?" It leads directly into that Engage platform. I mean, it is, "I have all this data from digital ordering. Now I can look at all the data from the non-digital ordering transactions to see 100%. I can collate it all back to a guest. Now how do I take action on that? How do I start to personalize the communication, segment the guests, send out personalized messaging to them that I know is going to resonate with them?" And we've put up a couple of great case studies. Most recently, Five Guys Burgers and Fries, Sonny's BBQ, First Watch. In the case of Five Guys Burgers and Fries, they'd really never done marketing of any kind except for just viral word of mouth. And they launched on the Engage platform really as their first adventure in marketing. Pulled in, we used 4 million guest profiles, maybe 4.5 million guest profiles, and did personalized marketing campaigns based off of that data and the guests saying, "I want to hear from you Five Guys." And it drove over $2 million in incremental sales that they attribute to that activity. This is not discounting. This is not bombing price. This is not bundles or value menus. It's a brand charging full price, but emailing their guests, messaging their guests, and driving incremental ordering activity. I think that is the better way for restaurant brands to drive traffic. And this is something that the industry desperately needs. We talk about it today. This is not a vitamin. This is a painkiller in the industry right now. They need ways to drive profitable traffic. And just a second on that. I mean, the typical way of doing it is through discounting, and that really erodes franchisee profitability and ultimately the guest's value perception of the brand when you're getting a 50% off or a BOGO kind of offer. That's not really healthy for the brand over the long term. So maintaining your price point and being able to personalize the guest experience, make the guest feel seen like the brand, even though they're operating at scale, knows who they are, cares about who they are, and is sending them a message that appeals to them. That's really powerful. And I think to go even further, you can imagine when we have a data set like the one that we have where we're able to see through billions of transactions and tens of millions of guests, you can start to imagine things that you've seen Netflix do, Spotify do, with collaborative filtering, where I can find a lookalike audience of people who look like Matt Hedberg. And I can say, "Matt has never tried this item on the menu." Other people who love the main item that Matt always comes back for, they really love this other item. That's a perfect thing to tell you about. Maybe I create a second craving at that brand. Naturally, that leads to you upping your frequency because now you're coming for that initial thing that you always get and this new thing that you tried and really liked. Using data in that way has really never been possible to do at scale in this industry. It's becoming possible because of the way that we're gathering data, collating it by guest, and because of AI and machine learning and being able to tap into that evolution and technology to really drive personalized marketing to guests and personalized guest experiences when they get to the menu. Loyalty. I know we've talked a lot about loyalty, rewards, things like that. Yeah. So rewards have been something that the restaurant industry has been doing for a while and relying upon as their guest engagement strategy. The problem with that is that not every guest is going to sign up for the rewards program. It's typically only about 15%-20% of the guests that do sign up for the rewards program. So you'll hear big brands say, "I can tell you everything about my loyal guests, but I don't know who these other 80% of my guests are." The power in being able to see 100% of the guests and not just to look at those loyalty program guests, but the high lifetime value guests as the ones that are most important to tend to is a really different. It's a blind spot, right, that a lot of these even if you have a reasonable size loyalty program existing, you're missing out on giant swaths of customer data. In almost every case, you're missing out on the majority of your guests, and you're missing out on a lot of those high lifetime value guests who, for whatever reason, just don't want to join the loyalty program, but are really important guests to listen to. When they give you feedback on a survey or when they have an affinity for one product or another, it's a signal. It's not noise. I think loyalty programs have been used as if they're a strategy and really they're a tactic within a larger strategy when housed within a larger engagement. So, sort of, the light bulb went off for me is that it's hitting a big blind spot. You guys are hitting a big blind spot that's not captured from a customer data perspective. I'm going to ask one other question, then we'll see if there's a question from the group. But Peter, I don't remember if I asked you this on the call or if it came up. Obviously, you're not to 25 yet, but any sort of guardrails we should think about when we kind of think about 25 growth in terms of whether it's parameters on growth or profitability? I mean, you talked about gross profit dollars growing from what we see this year. But any other sort of guardrails we can think about? Yeah. We've shared some commentary around location ads being similar to. That's right. Similar to $6 this year. GPV on how that trends throughout the year. We'll share more color on that at the top of the year. Gross profit growth, as I touched on earlier, targeting an acceleration on a full year basis as compared to 2024. That will increase in the back half of the year. So you'll see acceleration in the back half and then on a full year basis, higher in 2025 as compared to 2024. And then again, stabilizing our OPEX cost basis so that we can continue to increase operating profit and margins in 2025. That's kind of how we're thinking about the year ahead. Got it. I want to pause here a second to see if there's any questions. Keep rolling. Going once, going twice, gold. The two other questions that I've chatted with you in the past, one of them is international, and it feels like you have a lot just within the North America market to sort of focus on. Do some of your bigger brands or some potential big brands ever say, "Gee, you know, if you were helping me in Western Europe, that would be another value add that you provide for us"? And obviously, you don't want to get too diluted and we'll focus on profitable growth. But how do you think about eventually layering in some international opportunities? Yeah, I think that's happened mostly in Canada, which is pretty obvious that we'd have brands that cross the border into Canada and say, "Can you help us in Canada?" We've done some of that to baby step toward international. But I think that's right. That's the right notion of large brands saying, "We want to be your anchor tenant and use you elsewhere because we've used you and had so much success in the U.S." If you look at the large multinational restaurant enterprises, the majority of them, the vast majority of them are domiciled here in the U.S. So we're setting the table well by serving these customers well in the U.S. market for future expansion. We do have cases like Nando's. Nando's is a brand that I became familiar with when I lived in Johannesburg, South Africa in 2004. That's their home market. They use us in Canada and the U.S., and it's a great relationship there. Those are expansion markets for them. They're a South African brand. But that's a real exception. Most of these large enterprise brands are domiciled here, and we're thrilled to serve them well in the U.S. And to your point, it's just a massive, massive opportunity still in what is a trillion-dollar U.S. restaurant industry for us to continue to grow and scale the business as we've articulated. This 100X opportunity, 4X location ads, 25X growth in our pool. That's what our focus is. And I think focus is so critically important in any business. Totally. You've had a lot of discipline on that front. And then maybe just looking forward to the future, you've got such great brands, but you're competing with a lot of big players, whether they're on the POS side or primarily there. But how do you think about what does the future of Olo look like? Is it part of a bigger entity at some point? Do you think, "No, our opportunity in North America is just so significant. We think we can be sort of the hub of all of this innovation and growth"? What does the future look like? I mean, I would say that we have a lot of partners who are POS players. That's not new. That started in 2009. We've always differentiated Olo as what is sort of the guest-facing tech stack, independent of what the brand is using as its staff-facing tech stack, and I would say point of sale really is the staff-facing tech stack. It is just as blind to who the guest is and what transaction lines up behind what guest as the industry is, so I think that's how we really differentiate how we've scaled Olo to 85,000 enterprise locations across 700 enterprise brands with 400 integrated technology partners. To my knowledge, that's the largest network for enterprise restaurants out there, so I think we love that independence. We love our long runway ahead to keep scaling into what is a massive industry. And we love being an open platform that plays nicely with now over 36 plus different point of sale platforms, some of which are of scale, but nobody at that 85,000 restaurant scale that we operate at. So it's nice because a lot of the brands that we serve are fragmented across different point of sale platforms, and they need us to be that universal guest experience sitting on top of whatever they're using to work. Yeah. Well, my wife, whenever we're walking around and she sees Alo, she always gets confused with Olo. So if you ever wanted to, maybe you acquire the Leisurewear Company, drop the A and swap out the O. But she's always like, "I thought they were like food delivery." I'm like, "It's a totally different thing." It looks awfully similar. I don't know if you get confused by that too, but. Food delivery and Yoga delivery. Once you conquer North America, then you can maybe go after the Leisurewear and Yoga opportunity. Listen, from all of us, guys, thank you for your time. Thanks for being here. It really means a lot to all of us. And so best of luck the rest of this year and into next year. Thank you. Appreciate it. Thanks, guys.