Release Date: February 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide more details on the Freedom Pay partnership and its impact on card present transactions for 2025? A: Noah Glass, Founder and CEO, explained that the Freedom Pay partnership will enable Olo to broadly sell Olo Pay card present to customers, with general availability expected by mid-year. This partnership significantly expands Olo's addressable payments volume, unlocking an additional $130 billion in card present volume. The sales team is already engaging with customers, and the partnership is expected to accelerate Olo's market presence and scale in the payments sector.
Q: How is Olo planning to increase multi-product adoption among enterprise customers? A: Noah Glass highlighted that module adoption is growing organically across all customer segments, including enterprise. The strategy involves expanding relationships with existing customers by introducing them to additional product suites, such as Engage, which leverages guest data for personalized marketing. The goal is to drive profitable traffic and enhance customer engagement through the Olo Guest data flywheel strategy.
Q: What feedback have you received from customers regarding the Freedom Pay partnership, and how does it affect your product roadmap? A: Noah Glass noted that the Freedom Pay partnership has generated significant interest among customers, particularly those not using the point-of-sale platforms with direct Olo Pay integrations. The partnership allows Olo to offer comprehensive transaction data capture, enhancing the guest data platform. This development is expected to improve the economics and profitability of Olo Pay by increasing scale and offering better margins.
Q: How are rising prices and the need for efficiency influencing customer interest in data analytics? A: Noah Glass emphasized that customers are increasingly interested in leveraging data analytics to drive profitable traffic without resorting to discounts. Olo's strategy focuses on helping brands gather guest data to personalize experiences and improve marketing efficiency. This approach is seen as a sustainable way to enhance brand health and profitability in challenging economic conditions.
Q: Can you elaborate on the expected gross profit growth acceleration in 2025? A: Peter Benevides, CFO, stated that gross profit growth is expected to accelerate in the second half of 2025, following a tougher comparison in the first half. This acceleration will be driven by the scaling of Olo Pay, particularly with card present transactions, and the continued success of products like Catering Plus, which contribute to high-margin revenue growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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