Olo (US:OLO)2022-08-12 02:22Financial Data and Key Metrics Changes - Total revenue for Q2 2022 was $45.6 million, representing a 27% year-over-year increase [8][23] - Platform revenue was $44.5 million, a 29% year-over-year increase [23] - Average revenue per unit (ARPU) increased to $544, a 12% year-over-year and 5% sequential increase [8][24] - Net revenue retention for Q2 was approximately 106%, which would have been 500 basis points higher excluding Subway's impact [24] Business Line Data and Key Metrics Changes - Approximately 82,000 active locations on the platform, an 11% year-over-year increase, flat sequentially [8][23] - Deployed roughly 3,000 new locations in Q2, but net new locations were impacted by Subway's integration with marketplaces [16][23] Market Data and Key Metrics Changes - The industry is facing challenges from COVID-19 residual impacts, inflation, and supply chain issues, leading to elongated sales and deployment cycles [11][12] - Digital transactions in restaurants remained consistent, with about 15% of transactions being digital [30] Company Strategy and Development Direction - Olo aims to help brands navigate macroeconomic challenges through technology, focusing on digital solutions to improve profitability and operational efficiency [13][22] - The company is expanding its product offerings, including Olo Pay and enhancing its technology partner network [17][19] - New sales leadership has been introduced to drive long-term growth [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term reliance on technology in the restaurant industry despite current macroeconomic pressures [11][22] - The company anticipates lower expectations for new deployments and revenue in the second half of the year due to ongoing challenges [12][29] Other Important Information - Olo is committed to diversity, equity, and inclusion, with specific goals for team composition by 2024 [20][21] - The company has updated its guidance for Q3 and full year 2022, expecting revenue between $183 million and $184 million [27][28] Q&A Session Summary Question: Elongated sales cycles and Subway's impact on guidance - Management indicated that elongated sales cycles are temporary and affect both emerging and large brands, with Subway's integration impacting revenue guidance [34][37] Question: Olo Pay and ARPU lift - Management is encouraged by the early adoption of Olo Pay, with significant account creation and card saving rates observed [39] Question: Subway's contribution and risks - Subway's ARPU is about a third of the platform average, and management does not foresee significant risks from other large brands [42][61] Question: Current state of QSR opportunities - Management highlighted ongoing opportunities in the QSR space, with several new brands welcomed since the IPO [47] Question: Active locations guidance - Management expects to add approximately 2,000 net locations per quarter for the remainder of the year, with Subway's impact fully realized in Q1 2023 [58]