Olo Inc. (NYSE:OLO) Q1 2024 Earnings Call Transcript

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We had other stickers for the different product suites. We had stickers for Catering Plus, et cetera. The yellow stickers ran out very quickly. A lot of restaurant brands want Olo to play this role of professional services, and we’re excited about building that muscle. As we look today, it’s a very small portion of our overall revenue mix. But again, we think that professional services is an important part of our revenue story going forward and a huge unlock for software revenue in addition to just being another revenue stream that will help our customers get to value faster and use more of Olo’s capabilities as they get more digitally mature faster.

Kevin Kumar: Thank you. And congrats on the quarter.

Noah Glass: Thank you.

Gary Fuges: Operator, we’ll take one more question, please.

Operator: Our next question is a follow-up from Terry Tillman with Truist.

Q – Terry Tillman: Thanks. I hope I didn’t cause you to hang up there earlier. I know I’m glad you’re back. Just a follow-up is, I think you — it was a good question from somebody else earlier asking about the other products and including Engage, but I think you talked about the sequential order the way it really — the cadence to work as Olo Pay and then OloEngaged. What I’m curious about is, because now you have these POS relationships with Olo Pay, I just want to know about the go-to-market. Are you set up to go sell Engage more aggressively? Like is it a dedicated sales force? Or is your whole sales team trained it’s more kind of in the — how the sausage gets made in terms of how you’re going to monetize this to go-to-market. Thank you.

Noah Glass: Yes. Terry, it’s a great question. Sorry about the difficulties earlier with the call. So the way that go-to-market, I’ve had an awesome time over the past couple of weeks really witnessing this firsthand being out with our team, talking to customers, talking to prospects and seeing the magic of the way that go-to-market works today with a more nuanced structure really working. And I would describe it as we have, in many cases, a long-standing, trusted relationship with a restaurant brand at the C-suite level, and they know us typically from being their ordering platform over several years. And when we have these new capabilities, whether it’s a new solution suite like Pay, like Engage, whether it’s something like catering, which is a module catering plus within the order suite, we have the ability to have that relationship, hear about what they’re looking to do and then bringing in our great sales engineering team to do a demo in real time, show case studies of other brands and what they’re doing, using some new module that the brand has expressed interest in.

And that one or two punch of a long-standing relationship that’s kind of broad in nature and that deep and specific knowledge of that sales engineer was really an awesome model. And credit to Diego Panama, our Chief Revenue Officer, who came in and reshaped our team in that way. But that model is really working. It’s helping us to educate our restaurant customers and prospects about the new capabilities that we offer. It’s helping our salespeople understand broadly all the things that Olo can do, but also know that their back pocket. They have a team of experts who can go deep on those things do those live demos, answer any questions that brands have. And I think that’s really showing up in success for our go-to-market team in these new product modules and in these new solution suites.

Q – Terry Tillman: Thanks, Noah. That’s helpful.

Noah Glass: Thank you…

Operator: Ladies and gentlemen, we have reached the end of the question-and-answer session. I’d like to turn the floor back to Noah Glass for closing remarks.

Noah Glass: Okay. Well, thank you for joining us today and bearing with us to some of the technical difficulties. We started off 2024 with strong Q1 financial results, raised full year guidance and expanded partnerships to help brands leverage 100% of their transactions and drive guest lifetime value. Through our open platform, we believe we are uniquely positioned to capitalize on the increasing demand for guest personalization. Olo is accelerating the future of hospitality, and we’re laser-focused on executing on the opportunity in front of us. Have a great evening.

Operator: Thank you. This concludes today’s conference. You may disconnect your lines at this time.

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