Olo (US:OLO)2025-05-08 22:00Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $80.7 million, representing a 21% year-over-year increase [14] - Platform revenue was $79.2 million, up 20% year-over-year [14] - Active locations increased to approximately 88,000, adding about 2,000 locations sequentially [15] - ARPU for Q1 was approximately $911, reflecting a 12% year-over-year growth [16] - Gross profit for Q1 was $49.2 million, an 18% increase year-over-year, with a gross margin of 60.9% [17] - Operating income for Q1 was $11.5 million, up from $5.6 million a year ago, with an operating margin of 14.3% [18] - Net income for Q1 was $11.8 million, or $0.07 per share [18] Business Line Data and Key Metrics Changes - The company added approximately 2,000 net new locations in Q1, driven by strong customer deployment activity [15] - Catering Plus and Olo Pay card presence were highlighted as key growth areas, with significant customer signings including Chipotle [4][8] - More than 70 brands are using Olo Order and Olo Pay for digital transactions, indicating strong adoption of the platform [7] Market Data and Key Metrics Changes - The company noted a strong performance in the limited service restaurant segment, with same-store sales gaining share compared to full-service restaurants [22] - The enterprise restaurant segment is expected to be more resilient during economic downturns, benefiting from a trade-down effect in consumer spending [22] Company Strategy and Development Direction - The company is focused on scaling Catering Plus, ramping Olo Pay card presence, and increasing the number of Olo flywheel brands as part of its 2025 priorities [4] - The strategy emphasizes leveraging guest data to enhance customer engagement and drive profitable traffic [45] - The company aims to maintain its competitive edge by expanding its product offerings and enhancing its guest data platform [61][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties, citing historical resilience during downturns [22] - The company anticipates continued growth in digital ordering and technology deployment among restaurants to improve efficiency [21] - Management highlighted the importance of guest data aggregation as a key competitive differentiator [12] Other Important Information - The company hosted its sixth annual Beyond Four Customer Conference, with record attendance and demonstrations of new capabilities [10] - A new Chief Sales Officer, Parish Chapman, was welcomed to the team, expected to focus on bookings and customer relationships [12][53] Q&A Session Summary Question: What does the Chipotle pilot mean for Catering Plus and Top 25 brands? - Management expressed excitement about the Chipotle pilot, highlighting it as a multimodule win that validates the Catering Plus offering [28][32] Question: Can you provide more details on the gross margin benefit from the cost of revenue adjustment? - Management clarified that the one-time impact was about $1 million, with expectations for gross margins to decrease slightly as the year progresses [33][34] Question: What are customers saying post-Liberation Day regarding input costs? - Management indicated that rising input costs are a challenge, but limited service restaurants are gaining share during economic uncertainty [39][42] Question: How does the company view its competitive positioning? - Management feels confident about its competitive position, noting high gross revenue retention and the mission-critical status of its services [61] Question: What initiatives can be expected from the new Chief Sales Officer? - The new Chief Sales Officer is expected to focus on winning new customers and growing existing relationships, leveraging his extensive industry experience [53]