And the emerging enterprise segment, as you heard, we’re up to 14,000 locations across great emerging enterprise brands. The great enterprises of tomorrow, the ones that we are going after, who are going to represent great ARPU out of the gates and also great location growth going forward as they’re accelerating into those great enterprises of tomorrow. So, that’s kind of how we think about go-to-market priorities for the year ahead.
Unidentified Analyst: Understood. Thank you.
Operator: Thank you. Our next question is from Clarke Jeffries with Piper Sandler. Please go ahead.
Clarke Jeffries: Hello, Peter and Noah. Thank you for taking the question. I was wondering if you could share maybe a little bit of information about Waffle House. What they were using prior to you for online ordering? What percent of digital, if you can share that, were they as a business? And for card-not-present payments, what solution were they using? Was that tied to their point-of-sale system, or was it bespoke? And then I have one follow-up.
Noah Glass: Great. Hey, Clarke. This is Noah. So, with Waffle House, this is a legendary, iconic brand that really hadn’t been doing anything with regard to digital ordering or digital payment as a result of that. And so, this is the first investment – brand-wide investment in digital that Waffle House has made. We’re honored to be their partner in in working with them on Order and on Pay, and we think there’s additional potential to do more together over time. One thing that’s really exciting to me about Waffle House is also their use of Borderless. The only way to sign up and sign in and check out at Waffle House is through the Borderless passwordless login and checkout. And it’s an awesome experience, and I think really shows the way for other brands and how you can really meet the evolved guest needs for an accelerated checkout experience that doesn’t involve remembering a password and yields a better guest experience and more data for the brand at the same time.
Clarke Jeffries: Perfect. And then, Peter, it’s interesting to see that ARPU growth accelerate to this high [indiscernible] and sort of validated by 100 net retention. How are you thinking about the sustain ability of net retention? Any way to share some thoughts around what you think net retention could be over the medium term, as we get through this cycle of several quarters of acceleration and here at the 120% mark? Thank you.
Peter Benevides: Yeah. So, we found a lot of great progress in net revenue retention over the past. I want to say, four or five quarters now, we’ve been steadily increasing in line with ARPU growth. I think ARPU, for the most part, is a pretty good proxy for how net revenue retention will trend over time. And just in terms of the guide and sort of, like, mapping back the guide to what that then means from an ARPU perspective, it works out to call it a high-teen growth on a full year basis. That’s sort of the target for ARPU on a full year basis. So, I think that’s one way to think about, like, the progression of NRR over time. But apart from that we haven’t really shared specifics on how we think the 120% will trend over time.
Clarke Jeffries: That’s perfect. Thank you, Peter.
Operator: Thank you. Our next question is from the line of Andrew Harte with BTIG. Please go ahead.
Andrew Harte: Hey, thanks for the question, and nice quarter. On the Olo Pay side, I guess, what are the expectations for the more traditional software offerings thinking of Order and Engage? Kind of when we strip out the Olo Pay contribution in ’24 and ’23, it seems like it’s kind of high single-digits growth for traditional software offerings. So just any color there would be helpful. Thanks.
Peter Benevides: Yeah. I could take that one, Andrew. So, that’s correct if you think about the full year performance less the Pay portion of the business. That said, when we set out for 2023 in terms of what the targets were for the year, both for Order and Engage, those were in line with what we had set out to achieve in 2023. So, we feel good about that. I’d say, when you think about the sales performance from a booking standpoint in ’23 and then how that plays out in ’24 from a revenue standpoint, we saw a lot of success with Pay adoption from a booking standpoint. And from a go-to-market perspective, we ran to that opportunity. We had a lot of success in bookings, which obviously is now showing its results in revenue. When we look ahead to 2024, we want to make sure that we’re taking a more balanced approach to how we’re thinking about bookings performance and making sure that we’re having continued success with Order and Engage.
And in many ways, as Noah mentioned earlier, I think the success in Pay actually sets us up really well for more success in Engage because now we have both the order and the payment transaction being processed over the platform. And brands are now looking for ways to house that data, analyze that data, and act upon that data, and that’s where Engage comes in. So, I think we’re set up actually really well going into 2024 to have more success in sort of the pure software offerings of Engage.
Andrew Harte: That’s all for me. Thanks, guys.
Noah Glass: Thank you.
Operator: Thank you. As there are no further questions, I would now hand the conference over to Noah Glass for his closing comments.
Noah Glass: Okay. Thank you for joining us today. We finished 2023 on a strong note, and we’re focused on delivering a balance of growth and increased profitability in 2024. With our scale, reliability, and modularity, Olo is uniquely positioned to enable restaurant brands to drive traffic and frequency that result in more sales and greater operating efficiency. I’d like to thank Team Olo for their continued focus on delivering for our customers. I look forward to accomplishing our goals for the year ahead. Have a great evening.
Operator: Thank you. The conference of Olo Inc. has now concluded. Thank you for your participation. You may now disconnect your lines.
