Olo Inc (OLO) 2023 Q2 法說會逐字稿

Good afternoon. My name is (inaudible), and I will be your conference operator today. At this time, I would like to welcome everyone to the Olo Second Quarter 2023 Earnings Conference Call. (Operator Instructions). I would now like to turn the call over to Brian Denyeau from ICR. Please go ahead.

下午好。我的名字是（聽不清），今天我將擔任你們的會議操作員。現在，我歡迎大家參加 Olo 2023 年第二季度收益電話會議。 （操作員說明）。我現在想將電話轉給 ICR 的 Brian Denyeau。請繼續。

Thank you. Good afternoon, everyone, and welcome to Olo's Second Quarter 2023 Earnings Conference Call. Joining me today are Noah Glass, Olo's Founder and CEO; and Peter Benevides, Olo's CFO. During our call today, some of our discussions and responses to your questions may contain forward-looking statements, which represent our beliefs and assumptions only as of the date such statements are made.

謝謝。大家下午好，歡迎參加 Olo 2023 年第二季度收益電話會議。今天加入我的是 Olo 的創始人兼首席執行官 Noah Glass；和 Olo 首席財務官 Peter Benevides。在我們今天的電話會議中，我們對您問題的一些討論和答复可能包含前瞻性陳述，這些陳述僅代表我們截至做出此類陳述之日的信念和假設。

These forward-looking statements include, but are not limited to, statements regarding our expectations of our business, our industry, including with respect of technological enhancements, future financial results, including revenue and non-GAAP operating income and other key performance metrics, revenue expectations for order pay and engage suites, total addressable market and growth opportunity, guidance and strategy, benefits from strategic partnerships, restaurant order processing trends, our ability to increase usage of our platform and upsell, including with respect to our opportunity to expand on our growth in average revenue per unit, and a durability of new and existing customer adoption of multiple modules. Forward-looking statements are subject to risks and uncertainties could cause actual results to differ materially from those described and our forward-looking statements, and such risks are described in our earnings press release and our risk factors included in our SEC filings, including our quarterly report on Form 10-Q that was filed today and our other SEC filings. You should not rely on our forward-looking statements as predictions of future events. We undertake no obligation to update any forward-looking statements made during this call to reflect events or circumstances after today.

這些前瞻性陳述包括但不限於有關我們對業務、行業的預期的陳述，包括技術改進、未來財務業績（包括收入和非公認會計原則營業收入以及其他關鍵績效指標、收入）對訂單支付和參與套件的期望、總的可尋址市場和增長機會、指導和戰略、戰略合作夥伴關係的好處、餐廳訂單處理趨勢、我們增加平台使用和追加銷售的能力，包括我們擴展我們的業務的機會每單位平均收入的增長，以及新客戶和現有客戶採用多個模塊的持久性。前瞻性陳述存在風險和不確定性，可能導致實際結果與所述結果和我們的前瞻性陳述存在重大差異，這些風險在我們的收益新聞稿中進行了描述，我們的風險因素包含在我們的SEC文件中，包括我們的季度報告今天提交的 10-Q 表格以及我們向 SEC 提交的其他文件的報告。您不應依賴我們的前瞻性陳述作為對未來事件的預測。我們沒有義務更新本次電話會議期間所做的任何前瞻性陳述以反映今天之後的事件或情況。

Also during this call, we'll present both GAAP and non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures are available in our earnings release, which we issued a short while ago. This earnings release is available on the Investor Relations page on our website and is included as an exhibit in the Form 8-K furnished to the SEC. Finally, in terms of our prepared remarks or in response to your questions, we may offer incremental metrics. Please be advised that this additional detail may be onetime in nature, and we may or may not provide an update in the future on these metrics. I encourage you to visit our Investor Relations website at investors.olo.com to access our earnings release, investor presentation, periodic SEC reports, a webcast replay of today's call or to learn more about Olo. With that, let me turn the call over to Noah.

此外，在本次電話會議中，我們還將介紹 GAAP 和非 GAAP 財務指標。我們不久前發布的收益報告中提供了與最直接可比的公認會計準則財務指標的調節表。該收益發布可在我們網站的投資者關係頁面上獲取，並作為附件包含在向 SEC 提供的 8-K 表格中。最後，根據我們準備好的評論或回答您的問題，我們可能會提供增量指標。請注意，此附加詳細信息可能是一次性的，我們將來可能會也可能不會提供這些指標的更新。我鼓勵您訪問我們的投資者關係網站 Investors.olo.com，以獲取我們的收益發布、投資者演示、定期 SEC 報告、今天電話會議的網絡廣播重播或了解有關 Olo 的更多信息。現在，讓我把電話轉給諾亞。

Thank you, Brian. Hi, everyone. Thank you for spending time with us today. Our second quarter results demonstrate the consistent positive momentum we've built over the past few quarters. We generated $55.3 million in total revenue, a 21% increase year-over-year, as our platform supported increased module adoption within our existing customer base. With that, we increased average revenue per unit or ARPU to $716, up 32% year-over-year and 13% sequentially. Net revenue retention was approximately 115% this quarter, and we ended the quarter with approximately 77,000 active locations on the platform.

謝謝你，布萊恩。大家好。感謝您今天與我們共度時光。我們第二季度的業績證明了我們在過去幾個季度建立的持續積極勢頭。我們的總收入為 5530 萬美元，同比增長 21%，因為我們的平台支持現有客戶群中模塊採用率的增加。由此，我們將每單位平均收入 (ARPU) 提高至 716 美元，同比增長 32%，環比增長 13%。本季度淨收入保留率約為 115%，本季度結束時，我們的平台上有大約 77,000 個活躍位置。

We're proud of our results and believe our second quarter updates illustrate how Olo will continue to shape the restaurant of the future for our customers. We're at the early stages of a massive market opportunity, as the restaurant industry moves towards 100% digital. We're excited about our mission to be the engine of hospitality helping our customers collect, analyze and leverage the data they get from on- and off-premise digital orders, payments and engagements to create amazing experiences for their guests. We truly believe Olo is in the best position to drive the industry's digital transformation with our Order, Pay and Engage product suites.

我們對我們的業績感到自豪，並相信我們第二季度的更新說明了 Olo 將如何繼續為我們的客戶塑造未來的餐廳。隨著餐飲業向 100% 數字化邁進，我們正處於巨大市場機遇的早期階段。我們很高興我們的使命是成為酒店業的引擎，幫助我們的客戶收集、分析和利用他們從內部和外部數字訂單、支付和參與中獲得的數據，為他們的客人創造令人驚嘆的體驗。我們堅信，Olo 處於最佳位置，可以通過我們的訂單、支付和參與產品套件推動行業的數字化轉型。

Olo had another successful quarter with new and existing customers across all 3 product suites. We're especially thrilled to see increased adoption of our Pay and Engage modules among enterprise customers. Additionally, emerging enterprise customers continue to show strong adoption of multiple modules. This quarter, we welcomed Salad and Go, an enterprise fast casual restaurant chain. Solid and Go launched our order and pay modules with the goal to drive operational efficiencies and advance its mission to make fresh, nutritious food convenient and affordable for all. In Pay news, Cold Stone Creamery, an ice cream parlor chain launched Olo Pay. This deployment represents the fourth consecutive quarter where an existing enterprise customer deployed Olo Pay showing our continued ability to sell our pay suite to large brands, a key driver of ARPU expansion.

Olo 在所有 3 個產品套件中又贏得了新老客戶的成功季度。我們特別高興地看到企業客戶越來越多地採用我們的支付和參與模塊。此外，新興企業客戶繼續表現出對多個模塊的大力採用。本季度，我們迎來了企業快速休閒連鎖餐廳 Salad and Go。 Solid and Go 推出了我們的訂單和支付模塊，旨在提高運營效率並推進其使命，即為所有人提供方便且實惠的新鮮、營養食品。支付新聞方面，冰淇淋連鎖店冷石乳品廠推出了 Olo Pay。此次部署代表現有企業客戶連續第四個季度部署 Olo Pay，顯示了我們持續向大品牌銷售支付套件的能力，這是 ARPU 擴張的關鍵驅動力。

The Engage suite also saw enterprise customer adoption. California Pizza Kitchen, a casual dining chain began the launch of our full engaged suite of products, starting with guest data platform, sentiments and front-of-house manager host. This is a great example of large brands embracing the value of using guest data and technology to boost growth and customer loyalty. Denny's, a casual-dining chain that deployed our marketing automation and guest data platform solutions last quarter, revamped their rewards program with new gamification challenges that encourage specific guest transactions and engagement. Olo is proud to enable this functionality for Denny's, along with partners, Spark Fly. It's a great example of how brands can leverage the seamless connection between Olo's modules across product suites and vast ecosystem of partners to launch innovative solutions that drive guest lifetime value.

Engage 套件也得到了企業客戶的採用。休閒餐飲連鎖店 California Pizza Kitchen 開始推出我們的全套產品，從賓客數據平台、情緒和前台經理主持人開始。這是大型品牌擁抱利用賓客數據和技術來促進增長和客戶忠誠度的價值的一個很好的例子。 Denny's 是一家休閒餐飲連鎖店，上季度部署了我們的營銷自動化和賓客數據平台解決方案，通過鼓勵特定賓客交易和參與的新遊戲化挑戰，改進了其獎勵計劃。 Olo 很自豪能夠與合作夥伴 Spark Fly 一起為 Denny's 啟用此功能。這是一個很好的例子，說明品牌如何利用 Olo 跨產品套件的模塊和龐大的合作夥伴生態系統之間的無縫連接來推出創新解決方案，推動賓客終身價值。

And while we're encouraged by the progress we're seeing with the Engage suite, we're still in the early stages of adoption. In addition, Olo continued to see strong multi-module adoption within the emerging enterprise segment. This quarter, several fast-growing brands deployed 4 or more modules, including Anthony’s Coal Fired Pizza & Wings, Maple Street Biscuit Company, and Metro Diner. All of these customers launched with Olo's core order solutions ordering dispatch and rails, along with Olo Pay. While many emerging enterprise brands choose our white label front end serve, Anthony's worked with one of our partners to launch their online ordering with a custom-built front end. A great example of the customization and flexibility Olo offers to brands of all sizes through our open APIs. Anthony's joins over 100 Olo brands that use custom front ends on top of Olo's ordering API. We believe more emerging brands will continue to launch with or adopt multiple Olo modules, which will boost ARPU over time. Our investments in sales and marketing will continue to enhance this opportunity further.

雖然我們對 Engage 套件所取得的進展感到鼓舞，但我們仍處於採用的早期階段。此外，Olo 繼續在新興企業領域看到強勁的多模塊採用。本季度，一些快速增長的品牌部署了 4 個或更多模塊，包括 Anthony’s Coal Fired Pizza & Wings、Maple Street Biscuit Company 和 Metro Diner。所有這些客戶都推出了 Olo 的核心訂單解決方案（訂購調度和鐵路）以及 Olo Pay。雖然許多新興企業品牌選擇我們的白標前端服務，但 Anthony's 與我們的合作夥伴之一合作，推出了帶有定制前端的在線訂購服務。 Olo 通過我們的開放 API 為各種規模的品牌提供定制和靈活性的一個很好的例子。 Anthony's 加入了 100 多個 Olo 品牌的行列，這些品牌在 Olo 的訂購 API 之上使用自定義前端。我們相信更多新興品牌將繼續推出或採用多個 Olo 模塊，這將隨著時間的推移提高 ARPU。我們在銷售和營銷方面的投資將繼續進一步增強這一機會。

In the second quarter, we released a number of exciting feature updates across our 3 product suites. Within the order suite, we continue to refine our capacity management capabilities to help restaurants provide more accurate wait times to guests and delivery service providers. We officially launched a further enhanced version of order-ready AI, Olo's machine learning-based solution that enables brands to provide more accurate quote times. By training and deploying models using historical order data and retaining the models on an ongoing basis, brands will have more accurate ready-time predictions instead of manual inputs. This progression of AI's role within our capacity management tool unlocks more optimization service for our customers. We believe this will continue to give Olo and our customers a competitive edge going forward.

在第二季度，我們在 3 個產品套件中發布了許多令人興奮的功能更新。在訂單套件中，我們繼續完善我們的容量管理功能，以幫助餐廳為客人和送貨服務提供商提供更準確的等待時間。我們正式推出了訂單就緒人工智能的進一步增強版本，這是 Olo 基於機器學習的解決方案，使品牌能夠提供更準確的報價時間。通過使用歷史訂單數據訓練和部署模型並持續保留模型，品牌將獲得更準確的準備時間預測，而不是手動輸入。人工智能在我們的容量管理工具中的作用的進步為我們的客戶帶來了更多的優化服務。我們相信這將繼續為 Olo 和我們的客戶帶來未來的競爭優勢。

Next, our Pay suite continues to innovate and scale with milestone updates this quarter. Olo officially launched in-store payments via kiosks, marking Olo Pay's expansion into card presence payments representing a large TAM expansion as 85% of restaurant transactions are still considered non-digital. Digital payment processing on-premise will simplify a reconciliation, refunding and voiding processes for restaurants, bringing together their in-restaurant and off-premise transactions in a single dashboard. It's also exciting as this launch marks Olo's first in-store guest-facing brand exposure. Guests can expect the same simplified experience Olo Pay offers in non-card present transactions, including the ability to pay with mobile wallets like Apple Pay. This launch is fulfilling the promise we made, when we announced our partnership with Adgen last quarter, and we look forward to continuing our product road map with the Adgen team to enable more instances of card-present digital payment processing in late 2023 and beyond.

接下來，我們的支付套件將在本季度繼續創新和擴展，並進行里程碑式的更新。 Olo 正式通過自助服務終端推出店內支付，這標誌著 Olo Pay 向銀行卡支付領域的擴張，代表著 TAM 的大規模擴張，因為 85% 的餐廳交易仍被視為非數字化。本地數字支付處理將簡化餐廳的對賬、退款和作廢流程，將餐廳內和店外交易整合到一個儀表板中。令人興奮的是，此次發布標誌著 Olo 首次在店內面向客人的品牌曝光。客人可以期待 Olo Pay 在無卡交易中提供的相同簡化體驗，包括使用 Apple Pay 等移動錢包進行支付的能力。此次發布履行了我們在上季度宣布與 Adgen 合作時做出的承諾，我們期待與 Adgen 團隊繼續我們的產品路線圖，以便在 2023 年末及以後實現更多刷卡數字支付處理實例。

Currently, this technology is live in partnership with bite kiosk ordering software and we will look to expand to other kiosk providers soon. Additionally, this launch brings the restaurant of the future vision we discussed on our last earnings call, one step closer as Bite has available today the same facial recognition technology we depicted in our vision of the future. In more Pay News, we made Borderless product enhancements on top of seeing encouraging early results. This quarter, Olo launched functionality that enables guests to earn and redeem loyalty rewards, while enjoying the accelerated password-less checkout experience provided by Borderless. Loyalty programs are important to our restaurant customers, and the ability to link Borderless accounts with loyalty profiles is a huge win, we believe, will help further increase Borderless adoption moving forward. We also wanted to share results from one of our early Borderless adopters Din Tai Fung, which demonstrates the power of what Borderless can do for restaurants. Thanks to the convenience Borderless checkout process, we estimate that existing Din Tai Fung guests who signed up with Borderless placed 61% more orders throughout the year or 1.5 more orders per existing guest compared to those who have not signed up for Borderless.

目前，該技術正在與咬售貨亭訂購軟件合作，我們將很快擴展到其他售貨亭提供商。此外，此次發布使我們在上次財報電話會議上討論的餐廳未來願景又向前邁進了一步，因為 Bite 今天已經推出了我們在未來願景中描述的相同面部識別技術。在《更多薪酬新聞》中，我們在看到令人鼓舞的早期結果的基礎上，對無邊界產品進行了增強。本季度，Olo 推出了一項功能，使客人能夠賺取和兌換忠誠度獎勵，同時享受 Borderless 提供的加速無密碼結賬體驗。忠誠度計劃對我們的餐廳客戶來說非常重要，我們相信，將無邊界帳戶與忠誠度資料聯繫起來的能力是一個巨大的勝利，將有助於進一步提高無邊界的採用率。我們還想分享早期無邊界採用者鼎泰豐的結果，這證明了無邊界可以為餐廳帶來的力量。得益於便捷的Borderless 結賬流程，我們估計，與未註冊Borderless 的顧客相比，註冊了Borderless 的現有鼎泰豐顧客全年下的訂單量增加了61%，或者每位現有顧客的訂單量增加了1.5 個。

After Borderless was enabled, Din Tai Fung saw guest sign-ins Olo legacy and Borderless before placing an order jumped from 31% to 65%, a 109% increase suggesting that strong guest engagement drives an increase in orders. With the introduction of Borderless, 46% more Din Tai Fung guests opted to save their credit cards on file for smoother checkouts in the future. These results demonstrate meaningful increases in frequency and guest data all while providing guests with a more convenient ordering experience, a true win-win for restaurants and guests. We continue to believe Borderless will be a game changer, and we look forward to expanding its capabilities in the future.

啟用 Borderless 後，鼎泰豐發現客人在下訂單前登錄 Olo Legacy 和 Borderless 的比例從 31% 躍升至 65%，增長了 109%，這表明強勁的客人參與度推動了訂單的增加。隨著無邊界的推出，超過 46% 的鼎泰豐客人選擇將信用卡存檔，以便將來更順利地結賬。這些結果表明，頻率和客人數據顯著增加，同時為客人提供更方便的訂購體驗，這對餐廳和客人來說是真正的雙贏。我們仍然相信 Borderless 將成為遊戲規則的改變者，我們期待著在未來擴展其功能。

Lastly, we have more AI news, this time with product enhancements in the Engage suite. We're thrilled to announce that Olo Engage now leverages generative AI in our marketing product. The e-mail template editor has an AI assistant on standby waiting to assist on title paragraph, list and button content blocks, powered by open AI and chat GPT 4 this new AI assistant can be prompted multiple times to get the message just right before applying to a customer's e-mail template. Busy marketers now have more time to focus on sending powerful content to their guests to increase recency, frequency and ultimately, guest lifetime value. You can see a full list of new features at olo.com/quarterly-release and a full case study on Din Tai Fung experience with Borderless on olo.com/case-studies.

最後，我們有更多人工智能新聞，這次是 Engage 套件中的產品增強。我們很高興地宣布，Olo Engage 現在在我們的營銷產品中利用了生成式人工智能。電子郵件模板編輯器有一個隨時待命的人工智能助手，等待在標題段落、列表和按鈕內容塊上提供幫助，由開放式人工智能和聊天GPT 4 提供支持，這個新的人工智能助手可以多次提示，以便在應用之前獲取消息到客戶的電子郵件模板。忙碌的營銷人員現在有更多時間專注於向客人發送強大的內容，以提高新近度、頻率並最終提高客人的終身價值。您可以在 olo.com/quarterly-release 上查看新功能的完整列表，並在 olo.com/case-studies 上查看有關鼎泰豐與 Borderless 體驗的完整案例研究。

And finally, as I typically do on earnings calls, I'd like to provide an organizational update. This quarter, we made strategic changes to set Olo up to successfully execute the opportunity we see ahead of us. In mid-June, Olo announced a restructuring of our product and engineering teams to better reflect and support our 3 product suites, Order, Pay and Engage. With the restructure, we consolidated our product teams around the product suites and centralized our engineering team to enable more efficient resource allocation as priorities shift across the full business.

最後，正如我通常在財報電話會議上所做的那樣，我想提供組織方面的最新情況。本季度，我們進行了戰略調整，以使 Olo 能夠成功抓住我們看到的機遇。 6 月中旬，Olo 宣布重組我們的產品和工程團隊，以更好地反映和支持我們的 3 個產品套件：訂單、支付和參與。通過重組，我們圍繞產品套件整合了我們的產品團隊，並集中了我們的工程團隊，以便隨著整個業務的優先事項發生變化，實現更有效的資源分配。

To further unlock that potential, we also announced that Joanna Lambert would join Olo as our Chief Operating Officer, leading our engineering organization and product teams. As previously shared, we believe Joe is uniquely positioned to empower Olo's business and areas of opportunity that she has more than 2 decades of executive experience as a product and operations leader, including senior executive roles at American Express, PayPal, including a stint overseeing Venmo's business and most recently at Yahoo!, where she led the consumer business. Importantly, her payments experience will be crucial given our plans to prioritize and scale Olo Pay in the coming years. She started with us on July 5, and we're thrilled to have her on board.

為了進一步釋放這一潛力，我們還宣布 Joanna Lambert 將加入 Olo 擔任我們的首席運營官，領導我們的工程組織和產品團隊。正如之前所分享的，我們相信Joe 具有獨特的優勢，可以增強Olo 的業務和機會領域，她作為產品和運營領導者擁有20 多年的管理經驗，包括在美國運通、PayPal 擔任高級管理職務，還曾負責監督Venmo她最近在雅虎領導消費者業務。重要的是，鑑於我們計劃在未來幾年優先考慮和擴展 Olo Pay，她的支付經驗將至關重要。她於 7 月 5 日開始與我們一起工作，我們很高興她能加入。

Additionally, I'm excited to announce that Sherri Manning will be rounding out our executive team joining Olo as our Chief People Officer next week. Sherri brings more than 20 years of experience in the human resources domain, providing strategic leadership during rapid expansion, post-IPO development and acquisitions at globally recognized companies and late-stage start-ups. Prior to joining us, Sherri served as Chief People Officer at Big Commerce and previously held leadership roles at IBM, Universal Pegasus, Q2 and Bill. I look forward to seeing the positive ways Joe and Sherri will impact our team and our business.

此外，我很高興地宣布 Sherri Manning 將於下週加入 Olo 擔任我們的首席人力官，完善我們的執行團隊。 Sherri 在人力資源領域擁有 20 多年的經驗，在全球知名公司和後期初創企業的快速擴張、IPO 後發展和收購過程中提供戰略領導。在加入我們之前，Sherri 曾擔任 Big Commerce 的首席人力官，此前還曾在 IBM、Universal Pegasus、Q2 和 Bill 擔任領導職務。我期待看到喬和雪莉將以積極的方式影響我們的團隊和業務。

Looking ahead to the rest of the year, we're energized by our performance in the first half and remain focused on helping our customers utilize the digital transformation of the restaurant industry to their benefit, as we bring to life our vision of the restaurant of the future. And with that, I'll hand it over to Peter to discuss more detailed results.

展望今年剩餘時間，我們對上半年的業績感到振奮，並繼續專注於幫助我們的客戶利用餐飲業的數字化轉型來實現他們的利益，因為我們將餐廳的願景變為現實未來。接下來，我會將其交給 Peter 討論更詳細的結果。

Thanks, Noah. Today, I'll review our second quarter results as well as provide guidance for the third quarter and the full year 2023. In the second quarter, total revenue was $55.3 million, an increase of 21% year-over-year. Platform revenue in the second quarter was $54.6 million, an increase of 23% year-over-year. We saw strong performance across all 3 of our product suites, most notably, Olo Pay, which is tracking ahead of our expectations. I'll provide more color on this momentarily.

謝謝，諾亞。今天，我將回顧我們第二季度的業績，並為第三季度和 2023 年全年提供指導。第二季度總收入為 5530 萬美元，同比增長 21%。第二季度平台收入為5460萬美元，同比增長23%。我們看到所有 3 個產品套件都表現強勁，尤其是 Olo Pay，它的表現超出了我們的預期。我將立即對此提供更多信息。

In terms of key metrics, ARPU for the second quarter was approximately $716 an representing a 32% increase year-over-year and a 13% increase sequentially. Further growth in ARPU was driven by continued progress in driving the average number of modules adopted by our customer base including higher ARPU solutions like Olo Pay, as well as the impact of Subways departure. Net revenue retention was approximately 115%, up 100 basis points sequentially. The ongoing strength in net revenue retention is being driven by ARPU growth, as we successfully execute on our cross-sell strategy. And lastly, in terms of active locations, this quarter, we added approximately 1,000 net new active locations to the platform, ending the quarter with approximately 77,000 active locations. We continue to target 6,000 net new active locations additions for the full year.

就關鍵指標而言，第二季度的 ARPU 約為 716 美元，同比增長 32%，環比增長 13%。 ARPU 的進一步增長是由於我們的客戶群採用的模塊平均數量的持續進步（包括 Olo Pay 等更高 ARPU 解決方案）以及 Subways 退出的影響推動的。淨收入保留率約為 115%，比上一季度上升 100 個基點。隨著我們成功執行交叉銷售策略，每用戶平均收入 (ARPU) 的增長推動了淨收入保留的持續增長。最後，就活躍地點而言，本季度我們向平台淨添加了約 1,000 個新活躍地點，本季度末活躍地點數量約為 77,000 個。我們的目標仍然是全年淨新增 6,000 個活躍網點。

For the remainder of the financial metrics disclosed unless otherwise noted, I will be referencing non-GAAP financial measures. Gross profit for the second quarter was $38.2 million, this compares to $33.8 million a year ago. The year-over-year increase in gross profit was driven by continued growth in revenue, including from Olo Pay adoption. As a reminder, Olo Pay's gross margin profile varies from our other businesses. So as Olo Pay scales, we are seeing an expected decrease in gross margin. Sales and marketing expense for the second quarter was $9.7 million or 18% of total revenue. This compares to $7.3 million and 16% a year ago. We have made significant progress building out our go-to-market team and aligning it with the product suites and cross-sell strategy. We have added much of the capacity we were targeting for 2023 already. So we would expect to see only modest growth in the second half of the year.

對於所披露的其餘財務指標，除非另有說明，否則我將參考非公認會計原則財務指標。第二季度毛利潤為 3820 萬美元，而去年同期毛利潤為 3380 萬美元。毛利潤的同比增長是由收入持續增長推動的，其中包括 Olo Pay 的採用。提醒一下，Olo Pay 的毛利率狀況與我們其他業務不同。因此，隨著 Olo Pay 規模的擴大，我們預計毛利率會下降。第二季度的銷售和營銷費用為 970 萬美元，佔總收入的 18%。相比之下，一年前的增幅為 730 萬美元，增幅為 16%。我們在建立市場團隊並使其與產品套件和交叉銷售策略保持一致方面取得了重大進展。我們已經增加了 2023 年目標的大部分產能。因此，我們預計下半年只會出現溫和增長。

Research and development expense for the second quarter was $14.5 million or 26% of total revenue, compared to $14.1 million or 31% of total revenue a year ago. On a dollar basis, we increased investments in R&D in order to unlock future growth opportunities related to Olo Pay, Borderless capabilities in on-premise ordering. General and administrative expense for the second quarter was $9.5 million or 17% of total revenue. This compares to $10.4 million and 23% a year ago. The year-over-year improvement on both a dollar and percentage basis represents continued optimization of expenses, as our organization scales. Operating income for the second quarter was $4.5 million compared to $2 million a year ago. Net income in the second quarter was $6.4 million or $0.04 per share based on approximately 177.8 million fully diluted weighted average shares outstanding.

第二季度的研發費用為 1,450 萬美元，佔總收入的 26%，而去年同期為 1,410 萬美元，佔總收入的 31%。以美元計算，我們增加了研發投資，以釋放與 Olo Pay、本地訂購的無邊界功能相關的未來增長機會。第二季度的一般和管理費用為 950 萬美元，佔總收入的 17%。相比之下，一年前為 1,040 萬美元，增長了 23%。隨著我們組織的規模擴大，按美元和百分比計算的同比改善代表了支出的持續優化。第二季度營業收入為 450 萬美元，而去年同期為 200 萬美元。根據約 1.778 億股完全稀釋加權平均流通股計算，第二季度淨利潤為 640 萬美元，即每股 0.04 美元。

Turning our attention to the balance sheet and cash flow statement. Our cash, cash equivalents and short and long-term investments totaled $431.2 million as of June 30, 2023. Pursuant to the share repurchase program, which we announced in September 2022, in the second quarter, we repurchased 1.4 million shares for a total of approximately $10 million. Since the introduction of our share repurchase program, we have repurchased 6.7 million shares for $50 million. We have $50 million remaining on our authorization. Regarding cash flows, net cash provided by operating activities was $2 million in the quarter, as compared to breakeven in the quarter a year ago. Free cash flow was negative $1.9 million compared to negative $3 million a year ago.

將我們的注意力轉向資產負債表和現金流量表。截至2023 年6 月30 日，我們的現金、現金等價物以及短期和長期投資總額為4.312 億美元。根據我們於2022 年9 月宣布的股票回購計劃，在第二季度，我們回購了140 萬股股票，總計約1000萬美元。自推出股票回購計劃以來，我們已以 5,000 萬美元回購了 670 萬股股票。我們的授權還剩 5000 萬美元。在現金流方面，本季度經營活動提供的淨現金為 200 萬美元，與去年同期的盈虧平衡相比。自由現金流為負 190 萬美元，而一年前為負 300 萬美元。

I'll wrap up by providing our guidance for the third quarter and full year 2023. For the third quarter of 2023, we expect revenue in the range of $56 million and $56.5 million and non-GAAP operating income in the range of $5.1 million and $5.5 million. For the fiscal year 2023, we expect revenue in the range of $220 million and $221 million and non-GAAP operating income in the range of $17 million and $17.8 million. A few things to note, as you consider our guidance. We are very pleased with the performance and customer adoption of Olo Pay. We now expect Olo Pay revenue for the full year to be in the low $20 million range up from our prior outlook in the mid- to high teen millions. The Order and Engage suites are tracking to our expectations and their revenue outlook is unchanged.

最後，我將提供我們對2023 年第三季度和全年的指導。對於2023 年第三季度，我們預計收入將在5600 萬美元至5650 萬美元之間，非GAAP 營業收入將在510 萬美元至510 萬美元之間。 550 萬美元。對於 2023 財年，我們預計收入在 2.2 億美元至 2.21 億美元之間，非 GAAP 營業收入在 1700 萬美元至 1780 萬美元之間。當您考慮我們的指導時，需要注意一些事項。我們對 Olo Pay 的性能和客戶採用率感到非常滿意。我們現在預計 Olo Pay 全年收入將在 2000 萬美元左右，高於之前的 1000 萬美元左右。 Order 和 Engage 套件符合我們的預期，其收入前景沒有變化。

From an expense perspective, the cost reduction actions taken during the second quarter were across each part of the organization with a more significant impact to R&D. Our updated profitability guidance reflects a combination of flowing a portion of the savings to the bottom line and reinvesting some back into the business to support our strategic priorities. To wrap up, we are pleased with our performance in the first half of the year and our ability to increase both our top and bottom line guidance for the remainder of the year. Our results reflect the success we are having with our expanded product portfolio and the ability to serve a growing portion of a restaurant's orders. With that, I'd now like to turn it over to the operator to begin the Q&A session. Operator?

從費用角度來看，第二季度採取的成本削減行動遍及組織的各個部門，對研發產生了更顯著的影響。我們更新的盈利指引反映了將部分節省的資金流向利潤和將部分資金再投資回業務以支持我們的戰略重點的結合。總而言之，我們對今年上半年的業績以及我們在今年剩餘時間內提高營收和利潤指導的能力感到滿意。我們的業績反映了我們通過擴大產品組合所取得的成功以及為越來越多的餐廳訂單提供服務的能力。至此，我現在想將其移交給操作員以開始問答環節。操作員？

We will now be conducting a question-and-answer session. (Operator Instructions). The first question comes from the line of Terry Tillman with Truist Securities. Please go ahead.

我們現在將進行問答環節。 （操作員說明）。第一個問題來自 Truist Securities 的特里·蒂爾曼 (Terry Tillman)。請繼續。

I'm Peter, it's great to see some of this multi-product traction and kind of the platform monetization playing out. One question I have for you, Noah, just to start it off. It's great to see the expansion sales and monetization of the broader products. But I'm curious, as we look at like top of the funnel and bringing in net new customers, whether it's enterprise brands or emerging enterprise brands. Could you give us a sense on kind of how that sales activity and pipeline is and how that differed versus 90 days prior in terms of potentially new logos coming into the fold over the next couple of quarters? And then, I had a follow-up for Peter.

我是彼得，很高興看到這種多產品的吸引力和平台貨幣化的效果。諾亞，我有一個問題要問你，只是作為開始。很高興看到更廣泛的產品的銷售擴大和貨幣化。但我很好奇，因為我們著眼於漏斗的頂部並引入淨新客戶，無論是企業品牌還是新興企業品牌。您能否讓我們了解一下銷售活動和渠道的情況，以及與 90 天前相比，在未來幾個季度可能出現的新徽標方面有何不同？然後，我對彼得進行了跟進。

Sure, Terry. Thank you for the question. I'd say -- I'd characterize it as a healthy pipeline across enterprise and emerging enterprise. I wouldn't characterize it as dissimilar from the way that it was 90 days ago. I think, while we talked about 1,000 net new locations this quarter, there's a little bit of rounding and we're still forecasting the 6,000 total adds for the year. And we're excited about enterprise and emerging enterprise and really the ARPU growth as the largest opportunity, and you saw that again this quarter. the ARPU growth we experienced the net revenue retention of 115% that we experienced, and we think that's a really healthy sign that we're mission-critical for our customers. They're looking to Olo as their digital consigliere and they want to do more with us as they go further on their digital transformation journey.

當然，特里。感謝你的提問。我想說——我將其描述為跨企業和新興企業的健康管道。我不會認為它與 90 天前有什麼不同。我認為，雖然我們談論了本季度淨新增 1,000 個地點，但有一點四捨五入，我們仍然預測今年新增地點總數為 6,000 個。我們對企業和新興企業感到興奮，而且 ARPU 增長確實是最大的機會，您在本季度再次看到了這一點。 ARPU 增長，我們經歷了 115% 的淨收入保留，我們認為這是一個非常健康的跡象，表明我們對客戶至關重要。他們希望 Olo 作為他們的數字顧問，並希望在數字化轉型之旅中與我們一起做更多事情。

Yes. Got it. Thanks Noah. And I guess, Peter, thanks for the color on Olo Pay and it sounds like it's definitely ahead of expectations. What I'm curious about is that low $20 million kind of revenue level expectation. Does that include potentially another step-up from card present? And the second part is, how do we think about like gross margins when you start to get kind of more of a full attach rate of Olo Pay into the installed base?

是的。知道了。謝謝諾亞。我想，彼得，感謝 Olo Pay 上的顏色，聽起來它絕對超出了預期。我很好奇的是這種 2000 萬美元的低收入水平預期。這是否包括卡片存在的潛在另一個升級？第二部分是，當 Olo Pay 的安裝基礎開始獲得更多的全額附加率時，我們如何考慮毛利率？

Yes. Thanks, Terry. So in terms of card present contribution, so we don't have any revenue forecasted this year related to card present. We talked a bit about last quarter, during our product announcements as well as our prepared remarks. We're just getting started on that front. Initially the partnership with Bite in which we are powering kiosk, card-present payments, we'll use the balance of this year to learn and iterate and then hopefully, 2024 is where you'll start to see the impact of those efforts in terms of revenue contribution.

是的。謝謝，特里。因此，就卡贈品貢獻而言，我們今年沒有預測任何與卡贈品相關的收入。我們在產品發布以及準備好的評論中討論了上個季度的情況。我們在這方面才剛剛開始。最初與 Bite 合作，我們為自助服務終端、刷卡支付提供支持，我們將利用今年的剩餘時間進行學習和迭代，然後希望 2024 年您將開始看到這些努力的影響的收入貢獻。

From a margin perspective, what we have shared is, over time, a goal of achieving 20% gross margin on payments on a blended basis. Admittedly, we're not there yet. It's still very early. There's scale and which will allow us to get closer to that target margin and the card present is also an important component of how we get there. But again, very early days on that on that path, but we definitely see a path to get there over time.

從利潤率的角度來看，我們所分享的是，隨著時間的推移，在混合基礎上實現 20% 的支付毛利率的目標。誠然，我們還沒有到那一步。現在還很早。規模是有規模的，這將使我們能夠更接近目標利潤，而卡片的存在也是我們實現這一目標的重要組成部分。但同樣，這條道路還處於早期階段，但我們肯定會看到一條隨著時間的推移到達那裡的道路。

Next question comes from the line of Stephen Sheldon with William Blair. Please go ahead.

下一個問題來自斯蒂芬·謝爾頓和威廉·布萊爾的台詞。請繼續。

Thanks and nice results here. First, on the margin side, it seems like the updated guidance assumes close to 10% adjusted operating margins in the second half. So really good to see the trends there. I think we've been assuming more like mid-single digits before. So curious how much of that is due to the workforce reduction and the savings that you're letting flow through there versus just stronger top line growth with some of the success cross-selling that you talked about with what I assume would be pretty high incremental margins. Just what's driving the margin improvement in the second half?

謝謝，這裡有很好的結果。首先，在利潤率方面，更新後的指引似乎假設下半年調整後的營業利潤率接近 10%。很高興看到那裡的趨勢。我認為我們之前一直假設更多的是中個位數。很好奇其中有多少是由於勞動力的減少和您在那裡流淌的節省，而不是通過您談到的一些成功的交叉銷售實現更強勁的收入增長，我認為這將是相當高的增量邊距。到底是什麼推動了下半年利潤率的改善？

Yes. So I'd say the majority of that is being driven by the cost actions we had taken in late June and a continuation of ongoing expense management as we move throughout the balance of the year, with performance being in the back half of the year, outperformance being in large part driven by Olo Pay given the relative margin profile of pay, less of that is dropping to the bottom line and therefore, contributing to the incremental operating income guide. It's more driven by the ongoing expense management.

是的。因此，我想說，其中大部分是由我們在 6 月下旬採取的成本行動以及我們在今年餘下時間裡持續進行的費用管理所推動的，業績是在今年下半年，考慮到薪酬的相對利潤率狀況，優異的業績在很大程度上是由Olo Pay 推動的，其中下降到底線的較少，因此有助於增量營業收入指南。它更多地是由持續的費用管理驅動的。

Got it. That's helpful. And then as a follow-up, I think you said the Engage suite is tracking your expectations this year. Curious how you're thinking about the potential ramp in monetization of the broader Engage suite over the next few years, given conversations your team is having. And would also be curious how much interest you're seeing on -- specifically for the guest data platform side because I think you could see a lot of demand there over the next few years, but it sounds like it's still very early in the monetization. So any detail on the Engage demand trends you're seeing?

知道了。這很有幫助。作為後續行動，我想您說過 Engage 套件今年正在跟踪您的期望。鑑於您的團隊正在進行的對話，我很好奇您如何看待未來幾年更廣泛的 Engage 套件的盈利潛力。我還想知道您對客戶數據平台方面的興趣有多大，因為我認為未來幾年您可能會看到那裡的大量需求，但聽起來貨幣化仍處於早期階段。那麼您所看到的參與需求趨勢有什麼詳細信息嗎？

Stephen, this is Noah. I'll jump in there and then invite Peter to add on if he wishes. I think we are, long term, very bullish on Engage and what restaurant brands are now able to do with all of the data, the digital transformation manifests. And I think, we're not alone in that sentiment. Restaurants see that opportunity, see sophisticated tools like guest data platform as a way of harnessing that data about their guests, of course, with the guest permission and then being able to really personalize their experiences, personalize their communications and enhance the overall guest experience.

斯蒂芬，這是諾亞。我會跳到那裡，然後邀請彼得補充，如果他願意的話。我認為，從長遠來看，我們非常看好參與度以及餐廳品牌現在能夠利用數字化轉型所體現的所有數據進行的操作。我認為，我們並不是唯一有這種想法的人。餐廳看到了這個機會，將賓客數據平台等複雜的工具視為利用賓客數據的一種方式，當然，在賓客許可的情況下，然後能夠真正個性化他們的體驗、個性化他們的溝通並增強整體賓客體驗。

I think this is a paradigm shift beyond have simple earn and burn loyalty programs that had been invoked. I think there's a lot more to do on the marketing front, on the engagement front than just that. I think one of the things that we're excited about slightly tangential to your question, but we talked about the Borderless capability being able to interface with loyalty programs. And I think that understanding that we're helping brands to bridge from a loyalty-based engagement suite to something more sophisticated like the guest data platform and marketing automation with AI tools built into it sentiment analysis, et cetera, is really how we are educating our customers and cross-selling into marketing departments. So from that perspective, we're very bullish, and we believe that there's a great opportunity and it's very early days for the Engage suite in total.

我認為這是一個範式轉變，超越了簡單的賺取和燃燒忠誠度計劃。我認為在營銷方面、在參與方面還有很多工作要做，而不僅僅是這些。我認為我們感到興奮的一件事與您的問題有點無關，但我們討論了能夠與忠誠度計劃交互的無邊界功能。我認為，了解我們正在幫助品牌從基於忠誠度的參與套件過渡到更複雜的東西，例如客戶數據平台和內置人工智能工具的營銷自動化情緒分析等，這才是我們真正的教育方式我們的客戶以及營銷部門的交叉銷售。因此，從這個角度來看，我們非常看好，我們相信這是一個很好的機會，而且總體而言，Engage 套件還處於早期階段。

Got it. So if you see incremental wins here as you think about the next few years, kind of seem like it would be a full suite of products versus buying 1 or 2 kind of modules within the Engage suite, but would it be more of a big bundle that you would think customers would be purchasing?

知道了。因此，如果您在考慮未來幾年時看到增量勝利，那麼看起來這將是一整套產品，而不是在Engage 套件中購買1 或2 種模塊，但它會更像是一個大捆綁包嗎？您認為客戶會購買？

Well, it's interesting. Even just in this quarter, we highlighted an example of each of those things. We highlighted California Pizza Kitchen and that bundled approach to taking all of the Engage capabilities, starting with the host table management platform and marketing automation and sentiments. And then we have other examples like Denny's, which are great examples of the land-and-expand motion that we're seeing within the Engage suite expanding now into guest data platform and marketing automation with that capability of challenges, which was a great innovation that Denny's brought to life in partnership with our partner, Sparkfly, but really showing the power of an open platform with open AIs and a great partner network to allow brands to really choose their own adventure, when it comes to how they want to engage with their guests.

嗯，這很有趣。即使就在本季度，我們也強調了每件事的一個例子。我們重點介紹了 California Pizza Kitchen 以及利用所有 Engage 功能的捆綁方法，從主餐桌管理平台和營銷自動化和情緒開始。然後我們還有像Denny's 這樣的其他例子，它們是我們在Engage 套件中看到的土地和擴展運動的很好的例子，現在擴展到客戶數據平台和營銷自動化，具有挑戰的能力，這是一個偉大的創新Denny 與我們的合作夥伴Sparkfly 合作將其變為現實，但真正展示了具有開放人工智能和強大合作夥伴網絡的開放平台的力量，讓品牌能夠真正選擇自己的冒險，當談到他們想要如何參與時他們的客人。

So I don't know that I would characterize it as one or the other. I think the answer is all of the above. Some brands will want to dip atone the pool with 1 module or 2 of the 4 in total. Others will want to go all in and have all of the Engage modules working from day 1, and we're excited to see that level of excitement from the enterprise and emerging enterprise customer base.

所以我不知道我會將其定性為其中之一。我想答案就是以上所有。有些品牌希望使用 1 個模塊或總共 4 個模塊中的 2 個模塊來彌補池中的缺陷。其他人會希望全力以赴，讓所有參與模塊從第一天起就發揮作用，我們很高興看到企業和新興企業客戶群的興奮程度。

Next question comes from the line of Gabriela Borges with Goldman Sachs. Please go ahead.

下一個問題來自加布里埃拉·博爾赫斯 (Gabriela Borges) 與高盛 (Goldman Sachs) 的關係。請繼續。

This is Max on for Gabriela. A couple from us. One question on macro. Can you give us more color on the general business environment and more specifically, restaurants willing to invest? And how have trends in sales and implementation cycles trended this year for Olo?

這是加布里埃拉的麥克斯。我們的一對。關於宏觀的一個問題。您能否給我們更多關於總體商業環境的信息，更具體地說，願意投資的餐館？ Olo 今年的銷售和實施週期趨勢如何？

Max, this is Noah. I'll take that. I think we would characterize the past couple of years as being a challenging operating environment for restaurants, and we've talked about that in earlier calls COVID and the impact of COVID, Omicron and then into inflation and commodity price increases. It's been a whole bunch of challenging issues that restaurants have had to overcome labor included, et cetera. I think there is some light at the end of the tunnel, we feel like things are starting to normalize on a number of those fronts. Certainly, guest demand for restaurants is strong, digital demand is durable and growing I think from our perspective, that will take some time to flow through into sales cycle improvements and deployment cycle improvements. But we're hopeful, based on what we're seeing in the end market that this is a time when restaurants are seeing the wisdom in enabling more technology solutions with platforms like Olo and enabling themselves to then do more with less from an R&D budget perspective.

麥克斯，這是諾亞。我會接受的。我認為我們會將過去幾年描述為餐廳面臨的充滿挑戰的運營環境，我們在之前的電話會議中討論過這一點，包括新冠肺炎及其影響、Omicron，然後是通貨膨脹和大宗商品價格上漲。餐館必須克服勞動力等一系列具有挑戰性的問題。我認為隧道盡頭出現了一些曙光，我們感覺在許多方面事情開始正常化。當然，客人對餐廳的需求很強勁，數字需求是持久的並且不斷增長，我認為從我們的角度來看，這需要一些時間才能轉化為銷售週期的改進和部署週期的改進。但我們希望，根據我們在終端市場上看到的情況，現在餐廳看到了通過 Olo 等平台提供更多技術解決方案的智慧，並使自己能夠用更少的研發預算做更多的事情看法。

And from an operator perspective, taking some of those learnings from these challenging times and using them to enhance their business going forward and better delight their guests.

從運營商的角度來看，從這些充滿挑戰的時代中吸取一些教訓，並利用它們來增強他們的業務發展並更好地取悅他們的客人。

Thanks Noah. And then another question that I have is I wanted to ask about initiatives in AI, such as drive-thru automation. Could you give us an update on those initiatives? And then how do you think about competition from some of the larger horizontal software vendors in the space with one example being Google's partnership with Wendy's?

謝謝諾亞。我的另一個問題是我想詢問人工智能方面的舉措，例如得來速自動化。您能給我們介紹一下這些舉措的最新情況嗎？然後，您如何看待來自該領域一些較大的橫向軟件供應商的競爭，其中一個例子是 Google 與 Wendy’s 的合作夥伴關係？

Sure. Yes. So in terms of drive-through AI specifically, we've talked about that on a couple of calls now, a number of pilots that larger quick-service restaurant drive-through-oriented brands are doing with a variety of partners that are providing that interactive voice response, IVR, or AI kind of ordering capability on top of the Olo API. I would still characterize those as early kind of test beds, not fully deployed broadly throughout the system. And all of them, notably, a human operator backing up the AI in case something goes wrong and you have a guest who wants to speak to a human. So I think that's an area of innovation broadly in restaurant technology. It's not something that we're directly doing as Olo, but we are doing through the Olo ecosystem through a variety of partners and a variety of customers who are experimenting.

當然。是的。因此，具體而言，就得來速人工智能而言，我們現在已經在幾次電話中討論過，較大的快餐店得來速品牌正在與各種合作夥伴進行一些試點，這些合作夥伴提供了Olo API 之上的交互式語音響應、IVR 或AI 類型的訂購功能。我仍然將它們描述為早期的測試平台，尚未在整個系統中廣泛部署。值得注意的是，所有這些設備都有一名人類操作員來支持人工智能，以防出現問題並且您有一位客人想要與人類交談。所以我認為這是餐廳技術的一個廣泛創新領域。這不是我們作為 Olo 直接做的事情，而是我們通過 Olo 生態系統，通過各種合作夥伴和正在嘗試的各種客戶進行的。

I guess, I would characterize our perspective, our philosophy on competition from horizontal technology providers as we're big believers that vertical solutions that are custom built for a specific vertical, their problem statement, their use cases are going to ultimately be better than horizontal solutions that are more general and less specific for that vertical. I don't think of Google, as a competitive solution with regard to their work with Wendy's. I think about Google as part of our partner ecosystem, one of those partners that we work with closely a number of different fronts. I think, when it comes to the solutions that we provide across Order, Pay and Engage, Olo is working very closely with our restaurants with our Product Advisory Council, specifically to make sure that we're building the solutions that they need specific to their needs and the needs of their guests.

我想，我會描述我們的觀點，我們對橫向技術提供商競爭的理念，因為我們堅信為特定垂直領域定制的垂直解決方案、他們的問題陳述、他們的用例最終將比水平技術更好對於該垂直領域而言，解決方案更為通用且不太具體。我不認為 Google 是與 Wendy’s 合作的競爭解決方案。我認為谷歌是我們合作夥伴生態系統的一部分，是我們在多個不同領域密切合作的合作夥伴之一。我認為，當談到我們提供的跨訂單、支付和參與的解決方案時，Olo 正在與我們的餐廳和我們的產品諮詢委員會密切合作，特別是為了確保我們正在構建他們需要的特定於他們的解決方案。的需求和客人的需求。

Next question comes from the line of Andrew Harte with BTIG.

下一個問題來自 BTIG 的 Andrew Harte。

It's nice to see that Cold Stone Olo Pay win coming through and extending that enterprise momentum. Just two quick ones for me here. First, can you share like how conversations for Olo Pay conversions are going in general? What are some of those key considerations from customers and the potential hurdles to switching?

很高興看到 Cold Stone Olo Pay 獲勝並擴大了企業勢頭。這裡對我來說只有兩個快速的。首先，您能否分享一下 Olo Pay 轉化的總體情況？客戶的一些關鍵考慮因素以及轉換的潛在障礙是什麼？

And then second, we estimate Olo Pay penetrations in the 2% to 3% context today. And oftentimes, our conversations with clients are about the path to 10% or 10%-plus penetration. How would you frame up that Olo Pay penetration opportunity longer term? And how is card-present capabilities change that opportunity, if at all?

其次，我們估計目前 Olo Pay 的滲透率為 2% 到 3%。通常，我們與客戶的對話都是關於如何實現 10% 或 10% 以上的滲透率。您如何看待 Olo Pay 的長期滲透機會？卡片呈現功能如何改變這個機會（如果有的話）？

Andrew, this is Noah. I'll take the first part, and I'll let Peter speak to the second part. I'd say really good conversations with brands about a better payment experience and a better payment experience for both the guests and for their operators. That is what led to really the initial idea for Olo Pay, the charter for Olo Pay, if you will, and is truly what we're seeing in market. We've talked in the past about things like higher authorization rates and how we've been able to accomplish that through our partnership with Stripe and our partnership with Adient and doing sophisticated fraud soaring helps with authentication. It also helps dramatically reduce fraud that has borne out in reality, we're hearing that from our customers.

安德魯，這是諾亞。我先講第一部分，然後讓彼得講第二部分。我想說的是，與品牌就更好的支付體驗以及為客人及其運營商提供更好的支付體驗進行了非常好的對話。這就是 Olo Pay 的最初想法，如果你願意的話，就是 Olo Pay 的章程，這確實是我們在市場上看到的。我們過去曾討論過提高授權率等問題，以及我們如何通過與 Stripe 的合作以及與 Adient 的合作來實現這一目標，並通過複雜的欺詐手段幫助身份驗證。它還有助於大大減少現實中發生的欺詐行為，我們從客戶那裡聽到了這一點。

We're also in innovations like Borderless doing away with passwords and enabling a native digital pleasant experience for it has to be signed in to have all the benefits of being signed in. And then on the other side, enabling the brand to capture that data about the guest. I think all of those things are part of why Olo Pay is being seen as a new breadth of fresh air in payments by our restaurant customers. Now some of them are able to deploy payments system-wide and able to do that in [1 Dell Foods], others have payments that, over time, have been decisions made by different operator groups. And so, it will take some time for us to get the add back with all of our customers. We're also here and we have heard, we would like to have a single payment platform for card not present, which Olo Pay started out being able to do and also for card presence. And now, we're thrilled to be able to offer card presence and be able to meet that need of having card-not present and card present in one management platform for Olo Pay.

我們還進行無邊界等創新，取消密碼並提供原生數字愉快體驗，因為必須登錄才能享受登錄的所有好處。另一方面，使品牌能夠捕獲該數據關於客人。我認為所有這些都是 Olo Pay 被我們的餐廳顧客視為支付方式新領域的部分原因。現在，他們中的一些人能夠在整個系統範圍內部署支付，並且能夠在[1戴爾食品]中做到這一點，而另一些人的支付隨著時間的推移，是由不同的運營商群體做出的決定。因此，我們需要一些時間才能向所有客戶恢復添加。我們也在這裡，我們聽說，我們希望有一個針對無卡情況的單一支付平台，Olo Pay 開始能夠做到這一點，並且也適用於有卡情況。現在，我們很高興能夠在 Olo Pay 的一個管理平台中提供卡存在功能，並能夠滿足無卡和存在卡的需求。

So we're very bullish. Our customers are very excited. Prospects are excited, and we're mostly excited this quarter about that first set of orders that we have now done card presence and opening up what is a 6x increase in the total addressable market for Olo Pay given the breakdown of digital orders versus nondigital orders and our ability to now take payments for those nondigital orders as well.

所以我們非常看好。我們的客戶非常興奮。前景令人興奮，本季度我們最興奮的是我們現在已經完成的第一批訂單，鑑於數字訂單與非數字訂單的細分，Olo Pay 的潛在市場總量增加了 6 倍。我們現在也有能力接受這些非數字訂單的付款。

Yes, just to pick up on that. So when, we think about the -- I know, Andrew, you mentioned there 10% as sort of the goal? I mean, we certainly have our sights set higher in terms of future penetration rates. And the reason for that is some of the things that we wanted to prove out during the first year or so in market with Olo Pay, is that, one, this is a solution for all restaurant sizes, which is something we have proven over time selling into the enterprise segment selling into the emerging enterprise segment.

是的，只是為了了解這一點。那麼，當我們考慮——我知道，安德魯，你提到 10% 作為目標？我的意思是，我們當然對未來的滲透率設定了更高的目標。其原因是我們希望在 Olo Pay 進入市場的第一年左右證明的一些事情是，第一，這是適合所有餐廳規模的解決方案，這是我們隨著時間的推移而證明的向企業部門銷售向新興企業部門銷售。

The second thing we want to prove out is that our go-to-market motions, we can be successful in both through the new business channel wins as well as upsell that the Olo Pay adoption rate would be positive. And in both of those cases, that has been the case. And that Olo Pay,thirdly, is a solution for all segments. So, as we look across QSR, fast casual, casual dining, et cetera, we have customers utilizing it will pay across all of those different segments. So again, those proof points that we wanted to prove out through the first year or so in market, we've done so. Now in terms of the penetration rate that you mentioned there, you're not far off. And what we get excited about is when you think about the unlock from a TAM perspective, card present presents to the company and having that initial card-not-present adoption rate that becomes a great lead gen engine for those card-present conversations when we're ready to have them, which is why, again, when we think about the future penetration rates 10% or more for that matter, it seems very reasonable.

我們想要證明的第二件事是，我們的上市動議，我們可以通過新的業務渠道獲勝以及 Olo Pay 採用率將是積極的追加銷售來取得成功。在這兩種情況下，情況都是如此。第三，Olo Pay 是適用於所有細分市場的解決方案。因此，當我們審視 QSR、快餐、休閒餐飲等領域時，我們發現使用它的客戶會在所有這些不同的細分市場中付費。再說一次，我們希望在市場第一年左右證明的那些證據，我們已經做到了。現在就您提到的滲透率而言，您的差距並不遙遠。我們感到興奮的是，當您從 TAM 的角度考慮解鎖時，卡片呈現給公司，並具有初始的無卡片採用率，這成為這些卡片呈現對話的一個偉大的潛在客戶生成引擎，當我們我們已經準備好擁有它們，這就是為什麼當我們考慮未來10% 或更高的滲透率時，這似乎非常合理。

(Operator Instructions). Next question comes from the line of Clarke Jeffries with Piper Sandler.

（操作員說明）。下一個問題來自克拉克·杰弗里斯和派珀·桑德勒的對話。

I wanted to ask a question about the philosophy of investment appetite versus expense management. I think, even prior to the cost measures that you took in late June, you were operating with profitability and had over $400 million of cash available. So I wanted to ask it in the way of sort of what are the categories that you're most interested in increasing the investment in? Are there places in the business where you expect to see head count growth through the year? Or is it still in this time period where there's -- you're looking for some stabilization in some of those trends you mentioned no that are still stabilizing. Just love to get a sense of investment appetite at this point and where you feel positioned for the rest of the year? And then I have a follow-up.

我想問一個關於投資偏好與費用管理的哲學問題。我認為，即使在您 6 月底採取成本措施之前，您的運營也已實現盈利，並擁有超過 4 億美元的可用現金。所以我想問一下您最有興趣增加投資的類別是什麼？您預計今年企業中哪些部門的員工人數會增長？或者是否仍然在這個時期，您正在尋找您提到的一些趨勢的穩定，但這些趨勢仍在穩定。只是想了解此時此刻的投資興趣以及您對今年餘下時間的投資定位嗎？然後我有一個後續行動。

Yes. So I can take that one, Clarke. So we've -- as I mentioned in my prepared remarks, we work your way down the P&L. We've done a fair amount of investment in sales and marketing, certainly through the first half of the year, as we've ramped up the team to address a larger portion of the emerging enterprise segment as well as building out that -- those focus areas on the Order, Pay and Engage suite so that we can have the specialization needed for those conversations to be successful from a sales perspective. So a lot of that investment has been made through the first half of the year, and we expect more modest expense progression as we move throughout the balance of the year.

是的。所以我可以接受那個，克拉克。因此，正如我在準備好的發言中提到的，我們按照損益表的順序進行處理。我們在銷售和營銷方面做了相當多的投資，當然是在今年上半年，因為我們已經加強了團隊的實力，以解決更大一部分的新興企業細分市場，並擴大了這一領域——這些將重點放在訂單、支付和參與套件上，以便我們能夠擁有從銷售角度成功進行這些對話所需的專業化。因此，大部分投資是在今年上半年進行的，我們預計隨著今年剩餘時間的推移，支出進展將更加溫和。

In terms of R&D, many of the investments that we wanted to make in particular for Olo Pay and for Borderless and card-present processing. We've done a lot of investment to date on that front. There's still a little bit more to go there and therefore, similar to sales and marketing, we expect more modest progression in R&D, as we move throughout the year. And then in terms of G&A, I've talked about this in prior quarters, in terms of having to level up the team, grow the team so that we could properly support the business as a public company. A lot of that is now built into the cost structure, and we expect to see more leverage in G&A as we move throughout the year.

在研發方面，我們希望進行許多投資，特別是針對 Olo Pay 以及無邊界和刷卡處理。迄今為止，我們在這方面已經進行了大量投資。還有更多的工作要做，因此，與銷售和營銷類似，隨著我們全年的發展，我們預計研發方面的進展會更加溫和。然後就一般管理費用而言，我在前幾個季度已經談到了這一點，即必須提升團隊水平，發展團隊，以便我們能夠適當地支持作為上市公司的業務。其中很多現在都已納入成本結構中，隨著我們全年的發展，我們預計在一般管理費用方面會發揮更大的作用。

Perfect. And then, I wanted to just maybe take a finer slice at Olo Pay and specifically, it performing higher than your expectations in that guide for the low 20s. Is there a way to parse out what is really driving it so far outpacing your expectations? Has it been the size of merchants that you've seen in terms of that have been onboarding? Has it been just a higher number of logo counts in the emerging enterprise any kind of clarification there. And then, just as a housekeeping item as we think about the platform and card present, how should we think about the GMV that the platform is touching. Will they reach situations where you're powering card present, but not ordering? Just how should we think about the composition, if you start to go into those sort of card-present transaction?

完美的。然後，我想在 Olo Pay 上分一杯羹，具體來說，它的表現比你在 20 多歲以下的指南中的預期要高。有沒有一種方法可以解析出到底是什麼推動了它迄今為止超出您的預期？您所看到的入駐商家的規模是多少？是否只是新興企業中徽標數量較多，有任何澄清嗎？然後，就像我們思考平台和卡片呈現一樣，我們應該如何思考平台所觸及的GMV。他們會遇到您存在供電卡但未訂購的情況嗎？如果您開始進行此類刷卡交易，我們應該如何考慮其組成？

Yes. So in terms of year-to-date outperformance on the pay front, I would say that, that is being driven by greater upsell on a location standpoint than originally anticipated. So the adoption rate, I'd say, broadly across all segments has been greater than what we originally anticipated. And therefore, for full year revenue outpacing our original estimates. In terms of the card present opportunity and what that unlocks one of the data points we disclosed last year was the total amount of GMV that we had processed over the calendar year 2022, which was north of $20 billion of GMV.

是的。因此，就今年迄今為止在支付方面的優異表現而言，我想說，這是由位置角度上比最初預期更大的追加銷售推動的。因此，我想說，所有細分市場的採用率都高於我們最初的預期。因此，全年收入超出了我們最初的預期。就卡片呈現機會而言，我們去年披露的數據點之一是我們在 2022 年處理的 GMV 總額，超過 200 億美元的 GMV。

And, if you assume that the digital penetration rate or digital transactions account for 15% of industry transactions, and then you map that back to the $20 billion GMV. That means that we have over $100 billion of GMV just within the existing installed base that would be addressable, once we have a card-present offering. And that's what gets us really excited. And the fact, again, that we've had a lot of progress on the pay front with card-not-present adoption, that becomes a great lead gen engine for those card-present conversation. So again, early, that's more of a 2024 dynamic, but certainly something we're excited about.

而且，如果你假設數字滲透率或數字交易占行業交易的 15%，然後你將其映射回 200 億美元的 GMV。這意味著，一旦我們推出刷卡產品，我們現有的安裝基礎就可以實現超過 1000 億美元的 GMV。這就是讓我們真正興奮的原因。事實上，我們在無卡支付方面取得了很大進展，這成為了那些有卡對話的重要潛在客戶生成引擎。再說一遍，這更多的是 2024 年的動態，但肯定是我們感到興奮的事情。

Next question comes from the line of Matt Hedberg with RBC.

下一個問題來自馬特·赫德伯格 (Matt Hedberg) 與加拿大皇家銀行 (RBC) 的對話。

I guess for either of you, I think in the past, maybe Noah, you've mentioned that oftentimes restaurants go through maybe a 4- to 5-year payment reevaluation process, which I guess makes sense structurally. But I guess, I'm wondering with all the innovations that you guys are adding to the platform, do you think there's an opportunity to perhaps accelerate that reevaluation process and perhaps give people to look at you guys before they might normally do so. And if so, is there anything that you're doing in particular could drive that?

我想對於你們中的任何一個人來說，我想在過去，也許是諾亞，您提到過餐館通常會經歷一個4 到5 年的付款重新評估過程，我認為這在結構上是有意義的。但我想，我想知道你們在平台上添加的所有創新，你們是否認為有機會加速重新評估過程，也許讓人們在通常這樣做之前關注你們。如果是這樣，您正在做的事情有什麼特別可以推動這一點嗎？

Matt, this is Noah. Yes, so I think I have talked about a cycle during which restaurant brands tend to reevaluate payment processing relationships. And again, you're back to one of my earlier responses, it's not the whole brand every time. Sometimes there are different operator groups within the brand that are on different processors and has not been kind of like with point-of-sale, the fragmentation that we've talked about many times, there's fragmentation with payment processors. So in that respect, there might be a component of a brand that is eligible to get up and running with Olo Pay an operator group, not the full brands that we can start to prove out those results ahead of the full brand being ready to deploy Olo Pay.

馬特，這是諾亞。是的，所以我想我已經談到了一個週期，在這個週期中，餐廳品牌傾向於重新評估支付處理關係。再說一次，你又回到了我之前的回答之一，這並不是每次都代表整個品牌。有時，品牌內有不同的運營商群體，使用不同的處理器，這與銷售點不同，我們多次討論過的碎片化，支付處理器的碎片化。因此，在這方面，品牌的某個組成部分可能有資格與 Olo Pay 運營商集團一起建立和運行，而不是我們可以在整個品牌準備部署之前開始證明這些結果的完整品牌奧洛支付。

There are other examples, and I think we're already showing this with coming to market initially with card-not-present before having the full card-not-present and card-present capability available, where we can kind of wedge in with the card-not-present transactions that are the digital transactions running across the Olo Ordering platform. And then to Peter's point on the last response, make the case at the right time for there's an even better opportunity, if we go beyond the digital transactions, the card-not-present transactions, and with Olo Pay address the card-present transactions as well have a unified payments platform. So we think that getting those proof points with our restaurant customers early and showing them, proving the results that we're seeing with others within their 4 walls is very powerful, and can lead to great success down the line.

還有其他示例，我認為我們已經在推出完整的無卡和有卡功能之前先將無卡功能推向市場，從而展示了這一點，我們可以在其中加入無卡交易是在Olo 訂購平台上運行的數字交易。然後是 Peter 在最後一個回復中的觀點，在正確的時間提出理由，如果我們超越數字交易、無卡交易，並通過 Olo Pay 解決有卡交易，那麼會有更好的機會還有統一的支付平台。因此，我們認為儘早向我們的餐廳顧客提供這些證據並向他們展示，證明我們在四堵牆內與其他人一起看到的結果是非常有力的，並且可以帶來巨大的成功。

That's great to hear. And then, when we think about Olo growth, we think about location adds and ARPU expansion, obviously, a bit more of the focus on ARPU expansion. But on this call, it certainly feels like beyond just enterprise success you're seeing in emerging enterprise customers success there. When you think about that land and expand motion, can you talk about how you're driving sales pipeline, and really converting that pipe across both of those different segments? Because it feels like there could be a little different velocity with more of the emerging enterprise customers.

聽到這個消息我很高興。然後，當我們考慮 Olo 增長時，我們會考慮位置增加和 ARPU 擴展，顯然，更多地關注 ARPU 擴展。但在這次電話會議上，您不僅會看到新興企業客戶的成功，而且不僅僅局限於企業的成功。當您考慮土地和擴張行動時，您能否談談您如何推動銷售渠道，並真正在這兩個不同的細分市場中轉換該管道？因為感覺更多的新興企業客戶的速度可能會有所不同。

Yes. So I'll try to take that one, Matt. So I think in terms of kind of the initial conversations regarding emerging enterprise. I mean, as we noted on the call, what we're finding is within that particular segment, a higher adoption of multiple modules from the onset of the relationship. In particular, we've seen a lot of success there with pay. And that's great because that helps to it creates that higher starting point from an ARPU perspective, obviously helps with stickiness, et cetera, within that segment. And again, going back to our core present commentary, allows us to then leverage those card not present relationships to 1-day upsell card present as well.

是的。所以我會嘗試接受那個，馬特。所以我認為就新興企業的初步對話而言。我的意思是，正如我們在電話會議上指出的那樣，我們發現在該特定細分市場中，從建立關係之初起，多個模塊的採用率就更高。特別是，我們在薪酬方面看到了很多成功。這很好，因為這有助於從 ARPU 角度創造更高的起點，顯然有助於提高該細分市場的粘性等。再次回到我們的核心當前評論，我們可以利用這些未出現卡的關係來實現 1 天加售卡的存在。

And in terms of like the actual pipeline development, I mean there's different tactics that we use for enterprise versus emerging enterprise. I'd say, a lot of focus right now within the enterprise is with the upsells of Pay and Engage just given the captive audience and the near-term opportunity to expand within those existing relationships. So depending on how we think about those two segments a slightly different go-to-market approach.

就實際管道開發而言，我的意思是我們對企業和新興企業使用不同的策略。我想說，現在企業內部的很多焦點都集中在“付費”和“參與”的追加銷售上，這只是為了吸引受眾以及在現有關係中擴展的近期機會。因此，根據我們對這兩個細分市場的看法，進入市場的方法略有不同。

There are no further questions at this time. I would like to turn the floor back over to Noah Glass for closing comments.

目前沒有其他問題。我想請諾亞·格拉斯（Noah Glass）發表結束評論。

Okay. Well, thank you again for joining us today. We are honored to be a mission-critical platform for the restaurant industry, and to serve as the engine of hospitality, helping restaurants drive sales, do more with less and make every guest feel like the regular. Thank you, Team Olo, for your hard work and execution. We have miles to go before we sleep.

好的。好的，再次感謝您今天加入我們。我們很榮幸成為餐飲業的關鍵任務平台，並作為酒店業的引擎，幫助餐廳推動銷售，用更少的錢做更多的事情，讓每位客人都感覺像常客。感謝 Team Olo 的辛勤工作和執行力。睡覺前我們還有幾英里路要走。

Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。