Noah Glass: Yes. So I can take those first questions there, Terry. So in terms of card-present, what we’ve communicated is that the plan is to continue to develop that offering through the first half of next year and then hopefully be in market at some time in the second half of the year. Now how that — how quickly that shows up in revenue is TBD. Right now, we’re — what we’ve communicated is, from a revenue standpoint, it’s more of a 2025 thing. But to the extent development time line speed up, we’ll obviously update the group on that timing. And then in terms of gross margin trends, I think what you’ve seen over the — really throughout the course of this year is sequentially somewhere in the, call it, 150 to 200 basis point sequential decline in gross margin which we view that as a positive, right?
That’s telling us that Olo Pay is scaling really nicely. And that’s what we want to see play out over time. It’s our thinking that that will likely continue into 2024 as card-not-present continues to scale. And then, once card-present starts to come into the fold, that will also help to further grow gross profit dollars and take blended gross margins down. We get some point, we’ll start to think are shifting to a gross profit dollar basis as card-present starts to come into the fold because it’s at that point that you’ll start to see accelerating growth in gross profit as a function of card-present starting to scale.
Terrell Tillman: And then maybe, Noah, my follow-up question is, on the enterprise side, I don’t know if it’s an evolution or a change but it definitely feels like you all are emphasizing the broader platform, in particular, Olo Pay now gaining traction there. So what can you share with us just to get some comfort here in terms of the enterprise market? What inning are we in, in terms of still being a play for digital transformation to replace legacy ordering solutions? Like how much more is there opportunity there? Is there still some brownfield opportunities? Or is it truly more at just attaching Olo Pay and other solutions to the current base?
Noah Glass: Thanks, Terry. I think that there is still significant long-term location addition opportunity in the enterprise space in that 100-plus unit segment of the market. These are lumpier, of course. These are — this is a segment that we are successful and it’s been our anchor. There are more enterprises to go out there and win. We pointed to Fatburger and the FAT Brands portfolio as an example of a win from this last quarter. There’s also the top 25 brands and we have 4 of those in Dairy Queen, Jack in the Box, Jimmy John’s, Panda Today. We talk to these brands frequently. We think about them really as upside to our model, difficult for us to forecast. I think that where you see the predicted — predictive sales machine is really in the emerging enterprise segment.
And that’s, again, 5 to 99 location restaurant brands. That’s where we’re landing a lot of new brands, a lot of greenfield opportunities. We’re landing the brands, the locations, many of which are coming on with multiple products, multiple suites, order and pay with Engage oftentimes. So we think that is a really attractive part of the market. And just to clarify, this is not SMB, 1 to 4 unit restaurant brands that are going to stay 1 to 4 unit restaurant brands. These are the great enterprises of tomorrow, those brands that have the ambition to scale those brands that want to be like the Sweet Green of tomorrow. So when we think about our long-term strategic plan, it’s really about ARPU expansion as the primary growth driver given the broader set of solutions that we now have.
We can sell that back into the existing 78,000 restaurant base. We’re leading with pay. Obviously, that’s outperforming, as Peter has shared. Specifically, we’re following that with Engage still early, early innings there. And then we’re expanding into new channels over time. We think on-premise is very exciting for digital to penetrate. We think drive-through is very exciting for digital to penetrate. So overall, very early innings still.
