Q3 2022 Olo Inc Earnings Call
This quarter, we added technology partners in both autonomous and piloted delivery as well as voice artificial intelligence or AI.
We're excited to offer these cutting edge technologies to our customers.
More specifically, although the dispatch network now offers autonomous and piloted delivery robots through partnerships with certified delivery providers cocoa delivery refraction AI and serve robotics.
Last mile delivery is oftentimes the most complicated and costly aspect of the delivery experience on average accounting for 40% of the total cost of delivery.
Through these partnerships, we enable brands such as modern market and nukes eatery to empower automated last mile delivery and specific markets lowering transportation cost through automation, while decreasing pollution.
We've also introduced partnerships with voice AI ordering solution providers converse now sync three and Valeant AI. These.
These partners provide premier ordering automation technology, facilitating the seamless placement of guest orders at the drive thru and enhancing the guest experience through shorter drive thru lines for.
For operators. These partners increased average ticket size and alleviate labor shortages by allowing staff resources to focus on food prep order fulfillment and guest services.
Panda Express a top 25 brand with more than 2400 locations Leverages voice AI technology partners to transform the drive thru, leading to an enhanced digital experience, while paving the path to 100% digital.
We believe unique solutions like voice AI ordering will enable <unk> to expand further into the <unk> segment as well as increase our penetration of digital orders in the space.
Notably the conversion of drive through to digital doesn't require consumer behavior change.
Operators make the decision to enable digital in drive thru converting all orders from analog to digital through voice AI.
This represents an exciting leap in the digital transformation of the drive Thru service model that represents the plurality of restaurant industry transactions over four times larger than delivery.
We also continued to implement product enhancements to better serve our customers many of which we showcased in our quarterly public release event held last month.
In particular at the end of October we announced commercial availability of border lists all of those password list and platform level sign on offering.
With border with guests can save and access there on file payment information along with contact information and delivery addresses across all participating restaurant brands securely speeding through checkout.
By eliminating the need for guests to create an account remember a pass through or manually enter payment details at every purchase borderlands strives to help restaurants meaningfully increased basket conversion retention and visit frequency driving increased revenue and profitability.
<unk> also aims to enable brands to capture valuable guest data on more orders that were previously anonymous.
Adding new guests and order data to their guests data platform in the industry's rates two D. Anonymised every order and uncover guest lifetime value.
As our latest platform level innovation, we believe border list is the next step to improving the on demand commerce experience empowering brands to capture valuable guest data, while delivering superior hospitality through added convenience and.
And we're excited by the opportunity for borderlands functionality to transform the sign on and checkout experience for guests.
<unk> additional revenue opportunities for restaurants and <unk>.
Additionally, this past quarter, we introduced new capacity management capabilities across our order management solutions.
As off premise volumes increased dramatically during the pandemic and as labor challenges persist, it's imperative to operators effectively manage kitchen order flow in order to ensure smooth operations in the kitchen accurate order handoff, where delivery service providers and properly set guest expectations.
This became a key problem for our customers that we believe <unk> is best positioned to solve.
Through our acquisition of Omnivore earlier, this year and by integrating with kitchen display systems or Tds data.
Our platform can now capture crucial on premise information.
Now restaurants are able to provide more accurate quote times to guests and delivery service provider partners for when orders will be ready for handoff.
Noodles <unk> company, a fast casual brand with more than 400 locations is one customer enrolled to pilot this feature.
By providing more accurate quote information, although enables brands to be as productive as possible and as profitable as possible all while elevating the guest experience.
This is a win win win scenario for our partners, our customers and their guests as well as a win for <unk> as our platform becomes an essential integrated layer and our customers' everyday operations.
These product features play an important part in improving the guest experience and empowering our restaurant teams to provide hospitality through optimized operations and personalization I'm proud of the tools, we provide our restaurant customers and the continuous hard work. The OLED team does in order to help our customers do.
More with less.
And I'm honored that the industry recognizes our hard work recently, we earned vendor of the year awards by fast casual brands cousins subs as well as noodles <unk> company.
Over the last two years, we've dramatically expanded our core value proposition. All those platform now provides a modular end to end restaurant technology offering that encompasses all guest touch points on premise off premise guest engagement and payments.
We're laser focused on providing in delivering these solutions to enterprise and emerging enterprise brands and we're working to ensure that we are aligned from a go to market perspective to fully capitalize on our broader opportunity.
As we think about our future potential we continue to believe that <unk> expansion will be the most meaningful driver of growth and the best measure of our success, we expect product adoption to increase across brands as we become an essential layer that aligns customers with OLED vision of enabling hospitality at scale.
<unk> and empowering restaurants to operate as one business.
And finally as I typically do on earnings calls I'd like to provide a corporate update.
We recently debuted our updated corporate website at <unk> Dot com, which showcases the platform's modular end to end restaurant technology offering that encompasses all guest touch points.
We also published a refreshed page for our partner program, although connect which includes a tiered partner directory of our expansive technology partners.
Additionally, we published our first environmental social and governance or ESG site. This.
This site takes a big step towards our ESG disclosure efforts by publishing our environmental and social initiatives and aspirations.
We believe the future of hospitality is sustainable we hold ourselves accountable to managing the impacts that are material topics impose on our company stakeholders and planet.
Our ongoing ESG strategy development will harness opportunities to enrich our social impact and lessen our environmental impacts while centering on strong corporate governance and ethics.
To close I'm excited about our future.
<unk> platform provides restaurants with mission critical tools that drive value, allowing brands to do more with less while elevating the guest experience.
We believe that OLED platform is best positioned to meet restaurants' needs and drive growth, we're focused on executing to create positive outcomes for our customers partners and shareholders.
And with that I'll hand, it over to Peter to discuss more detailed results Peter.
Thanks, Noah today, I'll review, our third quarter results in detail as well as provide guidance for the remainder of the year.
In the third quarter total revenue was $47 3 million, an increase of 26% year over year.
Platform revenue in the third quarter was $46 $4 million, an increase of 28% year over year.
In terms of key metrics are improved for the third quarter was approximately $558, representing a 15% increase year over year, and a 3% increase sequentially.
Continued growth in <unk> was driven by further expansion within our existing customer base, including continued adoption of <unk>.
Year over year impact from subway locations transitioning from the platform positively impacted <unk> by approximately $25.
As a reminder, so we as a single module customer with significantly lower <unk> than the average so as locations transitioned from the platform. This will have a positive impact on <unk>.
As Noah mentioned earlier, we expect <unk> to continue to expand and be a meaningful driver of growth as we further increased multi product adoption and transaction volumes on the platform.
We believe we have a 20 <unk> opportunity to expand our blue from its current levels in the early momentum we are seeing with <unk> and guest engagement adoption as well as on premise ordering trends gives us conviction in being able to significantly expand <unk> overtime.
In terms of active locations, we ended the quarter with approximately 84000 active locations on the platform and a 11% increase year over year and a 2% increase sequentially. This.
This number was in line with expectations and subway locations held constant over the quarter and as we continue to actively work to alleviate elongated deployment timelines, which we discussed last quarter.
And lastly, net revenue retention was approximately 107% up 100 basis points sequentially.
For the remainder of the financial metrics disclosed.
Unless otherwise noted I'll be referencing non-GAAP financial measures.
Gross profit for the third quarter was $34 7 million. This compares to $30 2 million a year ago.
The year over year increase in gross profit was driven by continued growth in revenue, partially offset by incremental costs associated with our wisely omnivore acquisitions increased compensation cost to support new locations coming onto the platform and to a lesser extent processing costs associated with overpay.
Sales and marketing expense for the third quarter was $6 1 million or 13% of total revenue.
This compares to $4 $2 million and 11% a year ago over the past year, we have significantly increased our product portfolio and in the near term plan to continue to invest in our go to market team to fully capitalize on the growth opportunities, we have within new and existing customers.
Research and development expense for the third quarter was $15 4 million or 33% of total revenue compared to $11 9 million or 32% of total revenue a year ago.
General and administrative expense for the third quarter was $10 3 million or 22% of total revenue this compared to $9 million and 24% a year ago. The year over year percentage decline was due to continued optimization of expenses within G&A as the initial cost to support <unk> as a pub.
The company continued to scale.
Operating income for the third quarter was $3 million.
Compared to $5 1 million a year ago.
Net income in the third quarter was $4 3 million or <unk> <unk> per share based on approximately $181 9 million fully diluted weighted average shares outstanding.
Turning our attention to the balance sheet and cash flow statement, our cash cash equivalents and short and long term investments totaled $469 2 million as of September 32022.
This quarter there were no impacts from the $100 million stock buyback program, we announced in September as we did not initiate share repurchase activity before the quarter ended.
Regarding cash flows net cash provided by operating activities was $3 $3 million in the quarter as compared to $10 $7 million a year ago free cash flow was $1 $4 million.
Compared to $10 $2 million a year ago.
A wrap up by providing our guidance for the fourth quarter and full year 2022.
For the fourth quarter, we expect revenue in the range of $48 2 million and $48 7 million and non-GAAP operating income in the range of $2 6 million and $3 million.
For the fiscal year 2022, we expect revenue in the range of $183 8 million and $184 $3 million.
non-GAAP operating income in the range of $9 3 million and $9 7 million.
In terms of guidance our outlook for the fourth quarter and the full year is consistent with the assumptions, we discussed last quarter elongated sales cycles and deployment timelines have continued and while we have a robust pipeline and are actively working to speed up deployment. We anticipate these dynamics to continue in the near term secondly.
We remain committed to driving profitable growth.
<unk> of this past quarter's operating income outperformance, we are targeting slightly higher profitability in the second half of 2022 as compared to last quarter's guidance as we've exhibited all throughout <unk> history. We are a financially disciplined organization and plan to continue to maintain this operating principle going forward.
And lastly in the fourth quarter, we entered into a sublease for our headquarters at one World Trade Center as we continue to embrace a hybrid work environment, we plan to reinvest some related savings into an exciting and more fitting New York based headquarters as well as initiate other remote employee engagement.
<unk> to.
To summarize we continue to deliver an attractive combination of strong revenue growth and profitability as we take meaningful strides towards becoming the engine of hospitality. We believe we have a long runway for growth through cross selling our robust and comprehensive product suite expanding the use cases of the platform.
And continuing to add locations through the platform.
With that I'd now like to turn it over to the operator to begin the Q&A session operator.
Thank you we will now begin the question and answer session.
To ask a question you May press Star then one on your telephone keypad.
If youre using a speakerphone, please pick up their handset before pressing mckee.
To withdraw your question. Please press Star then two.
At this time, we will pause momentarily to assemble our roster.
Our first question comes from Scott Berg insight.
Goldman Sachs. Please go ahead.
Hi, Good afternoon. Thanks for taking my question, maybe to start I would love to get an update on some of the catalysts planes a trigger plants full relationships like Jack in the box, we are seeing really nice product margin expansion.
No other issues that you talked about the supply chain and labor shortages.
So far a handful of clients now so wed love to get an update what are you seeing in terms of commonality of trigger points that are leading to expansion within the <unk> platform.
Gabriel Thank you for the question and welcome to the group.
I'd say with Jack in the box and maybe extrapolating beyond Jack in the box specifically, we've seen great engagement from these large restaurant brands in the enterprise segment from <unk> brand, specifically, it's really about how they want to engage with guests I think the digital transformation of the.
Industry is something that is permeating every segment of the industry.
It has become a guest expectation and its operator table Stakes. So it's about as you heard from our prepared remarks.
Better productivity better profitability and up leveling the guest experience. So we see a lot of these brands Jack in the box amongst them.
We had a homegrown solution, but we see that there are benefits and engaging with a SaaS platform like <unk> and not so much a buy versus build but more of a buy and build to buy into the platform and then to build on top of it in the case of Jack in the box with a third party agency doing some of the aesthetic on top of.
Although amgen.
I think that's sort of a natural progression in the past we have landed with a single module and some of these relationships proven ourselves out showing the benefits of platform level innovation and all that although can do and then introduce brands to the other modules. There are 12 in total now and so going from dispatch to dispatch.
And also ordering is a very natural progression and growth of their relationship and we're excited to have the ability to land with one module and then expand into a larger suite of capabilities for all restaurant brands.
That's helpful and as a follow up for Peter I wanted to pick up on your comments on profitability and balancing the investments that you're making and the opportunity that lies ahead. When do you think we might see a more pronounced inflection and profitability in the model as we think about internal planning assumptions.
For 2023 and beyond.
Yes. Thank you for the question Gabriel So in terms of profitability trends I think at this point what we've shared is that we remain committed to maintaining profitability, while delivering strong growth and we believe we can do that because.
One just the core DNA of <unk> and the discipline, we have in terms of.
Financial management, I think we've shown that over our history.
Burning less than $6 million in total investment to reach $100 million.
<unk>.
That discipline, coupled with our highly efficient go to market and support motion.
<unk> enables us to to drive profitability and growth at the same time.
As we look ahead for 2023 and beyond we believe that we can continue to do that and in terms of driving profitable growth and attractive growth for the long term.
And so just to put a finer point on that do you think 2023, it will be a year of margin expansion.
Yes, I think look I think there is there is.
A lot that is happening in real time as it relates to both the topline and the bottom line what I, what I will say is that where we stand today. We are you know.
Highly focused on making sure that we are allocating capital to the parts of the business that we believe will drive the greatest long term value for our shareholders and long term growth and in doing that maintaining profitability.
Thanks for the color.
Your next question comes from Terry Tillman with <unk>. Please go ahead.
Hey, good afternoon, Peter and Stephanie first I guess on the dock space Theyre all throughout Atlanta, So that's nice to see.
Be sure to find out how those experiences firsthand.
Maybe the first question for you is just when we talk to investors in the past it's like how big is the Tam is there a low ceiling high ceiling et cetera, because it just online ordering we're now hearing you talk about digital entirety, an on premise over a number of quarters I think you said 50 brands.
1000 locations, so I'm kind of curious where do you see like revenue now where does that stand in terms of on premise dynamic.
The transactional SaaS model.
Are built.
Just back to your Tam.
Comments for a moment to that I'll pass it over to Peter This if he wants to add on to that.
We really think that no matter how you look at it we are in the very very early innings of penetrating our Tam we are well below 2% of the addressable Tam that's out there in the segment that we serve.
And I think we look at these drivers of gross <unk> being the biggest one and of course moving on premise as part of capturing more transactions or the pace in other parts of making each one of those transactions are higher revenue event for <unk>.
Things that that's the largest part of the Tam expansion.
Revenue expansion into that Tam.
Theres location growth as well and I am proud also that we have in dairy Queen and Jimmy John's and Panda Express and Jack in the box. Some great top 25 brands that are showing our expanded opportunity to work with those brands as well and to really add value regardless of the scale of the restaurant enterprise.
And then Peter I'll pass it over to you in case, you want to double down on some of the economics of on premise.
Yes.
Terry just to answer your question on where the on premise transaction volumes will appear within the financials. It has the potential to appear both in subscription and transaction.
Terms of subscription.
Hi.
Having more orders processed over the platform that will then graduate customers into higher priced subscription packages. So that will help to drive subscription revenue and to the extent that customer is utilizing all okay that will help to drive transaction revenue because of the.
The processing fees with all okay.
Got it that's wonderful. Thank you both for the US the answer there I guess, Peter just a quick follow up in terms of anything you can share at all about how visibility is into 2023 compared to help visibility was going into 'twenty. Two I know, obviously, we have the macro but the way I'd like to kind of add to that Big picture question I, just asked which was.
Probably a hard question is.
Are you seeing the revenue come in as you expected for a low pay I think you said.
Up to a couple of million now and I think customer engagement was going to do about $10 million. So maybe you could talk about how they're performing and just any comments about visibility going into 'twenty three thank you.
Yes.
We have been pleased with the progress across both all okay and guest engagement. So specific to overpay. This past quarter, we generated just under $2 million of revenue associated with with all okay and for the year. We're now estimating $5 million of revenue contribution. So so great momentum there.
And a part of the momentum that Youre seeing.
With respect to overpay is.
<unk> and operators prioritizing deployment of products that are a relatively light lift to deploy and also provide very fast time to value and that is the case with all of them had they it's a light touch deployment and the time to value is immediate and I think part of that prioritization.
Asian by brands and operators is due to that continued labor dynamic labor challenges that we've discussed in.
In prior calls.
In terms of 2023, so obviously, it's still a little early there is theres a lot of that's happening in real time, I think where we stand today.
We are planning as though the sales and deployment dynamics continue into 2023, but that said I think despite the macro challenges I think there is a lot of reasons to remain excited about the go forward. So I think first off our sales pipeline for both new business and Upsells remains robust and we anticipate that.
That's going to continue as brands continue to look to do more with less and leverage digital to increase sales and improve margins secondly, food away from home and digital ordering in general has remained durable and that is in part because food is not discretionary everyone must be it.
And you're seeing that across a variety of data points within the industry and then lastly, I think our enterprise focus and the market share we have within the limited service segment I think provides some additional resiliency as we head into 2023, so certainly still a lot going on at the moment, but a lot.
A lot of positives to to remain excited about the go forward.
Thank you very much.
Our next question comes from Stephen Sheldon with William Blair. Please go ahead.
Hey, Thank you.
First wanted to ask about just the longer sales cycles, and I know thats happening for a lot of enterprise SaaS company.
Still have plenty of wins this quarter, but what do you think specifically driving the delay in decision, making here there are a lot of the enterprise our restaurant concepts.
You kind of go on after they just distracted with a variety of other issues and what do you think it could take for those.
Cycles tomorrow or less normalized.
Hey, Stephen this is Noah. Thanks for the question I think we are being prudent as we look at this quarter and think about the near term we are sort of staying consistent with what we guided to last quarter.
At the same time I think there is some light at the end of the tunnel. There are some of those dynamics that are causing restaurant brands or that were causing restaurant brands to be a little bit slower to make decisions or to implement those decisions better normalizing. So there are things like wholesale food prices are starting to come in there are things like the labor environment is starting to tick back.
Not quite yet at pre pandemic levels, but getting closer to it.
And so I think we're being prudent were being financially responsible in the way that we're modeling in the way that we're planning.
But I think that what is abundantly clear as we look at all those business. We think about the current macro has something that is.
<unk>.
Temporary crosswind.
I think we've seen moments in time like this in our history 2008, 2009, I would contrast that with the digital transformation of this one trillion dollar restaurant industry that is a mighty and persistent tailwind that's been at our back for 17 years and will be at our back for many many years to come.
Especially as restaurant brands are looking to leaning into digital transformation for the very reasons that Peter just mentioned getting more productive getting more profitable and at the same time up leveling the guest experience.
Got it that's really helpful.
And then as a follow up just as we model active locations for the fourth quarter.
Can you just help us frame the moving pieces on locations, especially with subway continuing to roll off I think you've talked before about that being progressive in the fourth quarter and potentially into early 2023 is that still the right expectation for those remaining locations just given the visibility you have right now.
Yes, that's right so.
Consistent with what we shared last quarter, we are targeting 2000 net new locations in the fourth quarter.
Specific to subway.
And the way in which we count an active location for rails as a location having had at least one order in the period. So even as locations remaining locations again to you all for this quarter.
Into early Q1 of next year.
They'll Michelle and the active location count having generated at least one order in the period.
So it will be it will just make sure to be very clear on how that is evolving throughout the quarter and and into early next year.
Got it thank you.
Again, if you'd like to ask a question. Please press star.
Well at this time.
Our next question comes from Matthew Hedberg with RBC. Please go ahead.
Great. Thanks, guys.
Following up on the question on sales cycles, I know last quarter, you talked about a little bit different implementation headwinds tailwind between corporate owned and franchisee owned restaurants I'm wondering if if there's anything that changed the dynamic of those two restaurants.
Styles, I guess and then maybe as a follow up Diego has been on now for a few months as a CRO.
I guess from that perspective is are there things that you guys are doing.
Specific that could counter that could cut through macros.
And maybe it's something he's implemented thus far.
Hey, Matt Thanks for the two questions.
I'd say nothing pronounced as a difference between the corporate owned brands those are pretty rare those brands that have all corporate locations most of the industry, whether we're talking about enterprise or emerging enterprise.
Are a smattering of corporate stores, but primarily franchisee locations and last quarter. We mentioned some of the efforts that we're taking making things easier.
On the restaurant brands to do the implementation themselves and the deployment themselves also using third parties to do deployments.
So as an augmentation for the restaurant brand and then also taking on more of the work and I think when I talk about.
These deployments that were celebrating this quarter.
Wanted to Jack in the box of rolling out.
2200 locations that is deploying to 2200 locations in a highly franchised environment I think it's showing how those efforts that we're making are helping to get brands that have been sold are showing up in bookings actually deployed.
And live on the platform for their operators benefit and for the guests benefit and obviously for olin's benefit.
When I think about Diego and some of the things that he's focused on the role of Chief revenue officer, It really aligns with our commentary around the growth drivers of the business. So we are very focused on <unk> as a huge driver of growth and that is about <unk>.
Selling additional modules into existing restaurant customers, who are asking us to play a larger role because we are a mission critical platform in which we've become something of a digital transformation considerably area to these brands.
Asking us to do more with them and we now have a lot more to offer because of our great product R&D and the M&A activities that have added new modules into.
Our platform.
We're focused on that and we're focused on.
Selling and overpay selling and guest engagement.
And of course, we are still focused very focused on landing additional restaurant brands from the enterprise segment and the emerging enterprise segment I would say we are right sizing our investments to go after all of those opportunities.
And believe that we have so much room to grow in a huge tam to grow into under Diego's leadership.
Thanks, No really appreciate the color.
Our next question comes from Brent Brakeman with Piper Sandler. Please go ahead.
Hi, This is Clarke Jeffries on for Brent first question is around ARPA growth.
3% sequential growth.
Certainly looks healthy.
Just wondering maybe Peter what what kind of <unk> growth do you think you can achieve either based off of the old low payroll louder multiple software role module rollout do you think it could be sustainable at these kinds of levels for sequential <unk> growth and then.
Maybe a second on that.
Reaching a point, where they are now 12 module to sell from a philosophy perspective from a growing efficiently efficiently perspective, do you think you might change to preference more overall <unk> or total contract value added at a lower gross addition level as an <unk>.
More multi module lands in that gross additions could take a back seat to the growth model over the next 12 to 18 months.
Yes, so in terms of the Rps sequential growth trend I think if you. If you go back in time I think the the growth has been.
From a trend line perspective.
Lumpy at times and part of that is because the.
How.
Products are deployed.
As well as the number of products that are subscribed to from the onset of the relationship so depending on even if a customer subscribes to say three products at the onset of the relationship. They may rollout one at one time and then the second and third at a subsequent time, which would make the trend line a bit smoother versus.
As some customers deploying all three modules.
From the onset the way I would think about the long term kind of growth rate or growth potential for our who is really through that twenty-five X opportunity lens and that is really by driving more transactions on the platform as well as increasing the adoption of all okay.
Looking at the RP from where it stands today on a quarterly basis, having a 25 X opportunity to expand that number over time and then if I'm.
And in terms of your second question, if I'm understanding that right.
I think the question is around the ability to expand our pool over time.
If more and more customers are landing with with more with more products from the onset of the relationship.
I would say, where we've seen more of that in the emerging enterprise segment of the.
Of the of the business, which we noted on the call. We're oftentimes that segment of the market is coming to us and they are wanting us to solve a number of pain points from from the onset of the relationships. So theyre typically taking order management delivery enablement and now more and more recently <unk>.
Hey.
I think that obviously.
Present.
Some challenges to further expand our crew when you're taking everything upfront, but I think we would obviously enjoy that problem and being able to have a a higher RFP from the onset of the relationship.
Okay makes sense and I think I had.
A follow up related to it seems like a lot of enterprise Lan you've noted this quarter were our relationships that took more of the modules upfront instead of just ordering.
But no I wanted to ask abound.
Do you view the industry changing around.
Proprietary versus legacy replacement and maybe you can help us frame.
This sort of portion of engagements, where you're going in and replacing proprietary versus a legacy solution. It seems like.
On the Jack in the box deal was there was very much based off of your competency in integrating with the proprietary so I'd love to just get your thoughts on how that's evolved.
Over the history of the company and where you sit today.
Well Clark. Thank you I think Thats that gives me up for an important point, which is that the trend has certainly been that brands are migrating from homegrown two <unk> and if I just think about the time.
Really over the last 18 months since our IPO and there are 10 sizable brands that have made that transition Carlos Junior Carrabba's Italian Grill Hardie is Jack in the box Outback Potbelly, Ruby Tuesday's Smash Burger TGI, Fridays and nasdaq's peers.
This is exactly what we were hoping to see by becoming a public story by brand seeing the strength of <unk> business. The strength of <unk> balance sheet hearing our philosophical commitment to being an independent open platform and then seeing some of the platform level of innovation that we've been able to bring to life firsthand.
Batch then in rails. Most recently in border list I want to come back to that in a moment. These are things that brands can't build themselves. They are things that you can build once you've built a two sided network of many brands on one side and many partners on the other if I think about border list is the extreme example of this point this is a <unk>.
Added network that we've created that connects the 84000 restaurants on our platform and for those of you who don't know the industry Super well 84000 restaurants is very large tick every mcdonald's in the United States. It is six times every Mcdonald's in the United States a number of locations.
<unk> to $85 million restaurant guests that order through <unk>, that's more than the entire population of Germany.
<unk> is now serving as the conduit between those restaurants and those restaurant guests and creating a win we had a better experience for those restaurant operators and for those restaurant guests, who no longer have to create an accounts remember a password reenter payment details they have a better faster experience.
And it leads to those restaurant brands getting more of that guest data into their guest data platform, which is really the Holy Grail. This is what restaurants are looking for ways in which they can get guest data into their guest data platform <unk> transactions and tie every transaction back to a guest accounts. So they can unlock and uncover.
The guests lifetime value and I think that thats something that although is uniquely able to do and are really where the industry is headed and so I think when you compare that to just a tactical building functionality for.
On demand commerce.
There is no comparison to what we're able to build as a platform serving the industry as a whole.
Certainly I appreciate the color. Thank you very much.
Thank you.
Okay, and if you'd like to ask a question Keith Pole Star one at this time.
With no further questions. This concludes the question and answer session I would like to turn the conference back over to Noah glass for any closing remarks.
Okay, well. Thank you all for joining US again today, we are honored to be a mission critical platform for the restaurant industry and to serve as the engine of hospitality, helping restaurants to drive sales do more with less and make every guest feel like irregular. Thank you team although for your hard work and execution we have.
Miles to go before we sleep.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.