Financial Data and Key Metrics Changes - Total revenues for Q4 2024 were $105 million, representing a 50% increase year-over-year, driven by subscription services revenue growth of 95% [9][37] - Adjusted EBITDA for the quarter improved by $13.1 million compared to Q4 2023, indicating strong profitability growth [36][53] - Non-GAAP net loss for Q4 2024 was $37,000, a significant improvement from a non-GAAP net loss of $12 million in the prior year [37][53] Business Line Data and Key Metrics Changes - Subscription services revenue reached $64 million, up 95% from $33 million in the prior year, now representing 61% of core revenue [38] - Annual Recurring Revenue (ARR) exited the quarter at $276 million, a 102% increase year-over-year, with Engagement Cloud up 150% and Operator Cloud up 60% [39] - Hardware revenue increased by 7% to $26 million compared to the prior year, driven by increased volume from software customers [39] Market Data and Key Metrics Changes - The company reported strong interest in its payment services, with notable customer onboarding in Q4, including Paris Baguette and Gold Star Chili [19] - Engagement Cloud ARR reported 15% organic growth in Q4, now standing at approximately $159 million [24] - The company noted a growing trend in the industry towards disjointed multi-vendor solutions, positioning itself as a unique provider with first-party data integration [21][22] Company Strategy and Development Direction - The company is focused on a "better together" strategy, emphasizing product innovation and cross-selling across its software portfolio [12][56] - The acquisition of Delegate is expected to enhance product offerings and accelerate growth, particularly in the restaurant sector [15][57] - The company aims to maintain a robust pipeline for M&A opportunities to strengthen its market position and expand its total addressable market (TAM) [34][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving over 20% annual growth rates for 2025, with expectations for significant revenue acceleration in the second half of the year [62] - The company noted a disparity in the restaurant industry, with larger brands performing better due to their ability to invest in technology [92][95] - Management highlighted the importance of maintaining operational efficiency and cost discipline to support sustainable growth [60][63] Other Important Information - The company reported cash and cash equivalents of $108 million as of December 31, 2024, with improvements in cash flow metrics throughout the year [49][50] - Non-GAAP consolidated gross margin increased by 720 basis points to 50.3% [53] Q&A Session Summary Question: Upsell into Burger King and its impact on rollout timeline - Management indicated that the upsell would likely push the rollout timeline out by a quarter or a quarter and a half, but it would significantly increase the ARR opportunity [66][68] Question: Quarterly revenue cadence and margin expectations - Management expects meaningful margin expansion in the second half of the year, with revenue acceleration driven by multiple key deals [70][72] Question: Details on the Burger King contract - The core deal includes PAR POS, with potential expansion into PAR Ops, including Data Central and Delegate [80][81] Question: Insights on consumer health in the restaurant space - Management noted a slowdown in full-service dining but indicated that their customer base is still growing, albeit at low single digits [91][93] Question: Hardware revenue growth compared to competitors - Management attributed hardware revenue growth to strong product offerings and better integration with software solutions [99][100] Question: AI integration in drive-through hardware - The company is developing drive-through hardware that allows third-party voice AI companies to integrate through APIs, creating additional revenue opportunities [110][111] Question: Customer churn and return to Punch - Customers who previously left for guest data platforms returned to Punch due to the realization that loyalty programs are essential for driving ROI [114][116] Question: Financial profile of Delegate - Delegate had approximately $19 million in recurring revenue at the time of acquisition, with historical growth rates over 30% [120][122]

Revenue Growth - Q4 2024 revenue reached $105.0 million, a 50.2% increase compared to $69.9 million in Q4 2023[4] - Annual Recurring Revenue (ARR) grew to $276.0 million, reflecting a total growth of 102% and organic growth of 21% from $136.9 million reported in Q4 2023[5] - Full year 2024 revenue was $350.0 million, a 26.5% increase from $276.7 million in 2023[5] - Total revenues for the three months ended December 31, 2024, reached $105.005 million, a 50.4% increase from $69.900 million in the same period of 2023[19] - Subscription service revenues increased to $64.262 million, up 95.2% from $32.897 million year-over-year[19] Profitability and Loss - The company reported a net loss from continuing operations of $(89.9) million for the full year 2024, compared to $(81.6) million in 2023, a deterioration of $8.3 million[5] - Diluted net loss per share from continuing operations improved to $(2.63) in 2024 from $(2.96) in 2023, a betterment of $0.33[5] - Operating loss for the three months ended December 31, 2024, was $16.425 million, slightly improved from a loss of $17.765 million in the same period of 2023[19] - Net loss from continuing operations for the year ended December 31, 2024, was $89.910 million, compared to a loss of $81.619 million in 2023[19] - The net loss for the year ended December 31, 2024, was $69,752,000, compared to a net loss of $81,619,000 for 2023, showing an improvement of approximately 14.5%[27] Margins - Subscription service gross margin percentage improved to 53.2% in Q4 2024, up from 48.1% in Q4 2023, marking a 5.1% increase[4] - Gross margin for the year ended December 31, 2024, was $146.124 million, representing a 63.5% increase compared to $89.446 million in 2023[19] - Subscription Service Gross Margin Percentage improved to 53.5% for the year ended December 31, 2024, up from 48.0% in 2023, indicating a growth of 11.5%[28] - Non-GAAP Subscription Service Gross Margin Percentage was 65.9% for the year ended December 31, 2024, compared to 66.4% in 2023, showing a slight decline of 0.8%[28] Expenses - The company incurred $10.471 million in sales and marketing expenses for the three months ended December 31, 2024, an increase from $9.508 million in the same period of 2023[19] - Interest expense increased to $10,167,000 for the year ended December 31, 2024, from $6,931,000 in 2023, representing an increase of approximately 46.5%[27] - Stock-based compensation for the year ended December 31, 2024, was $14,291,000, compared to $24,487,000 in 2023, reflecting a decrease of about 41.6%[27] Shareholder Information - The weighted average shares outstanding increased to 37.197 million for the three months ended December 31, 2024, compared to 27.968 million in the same period of 2023[19] - The diluted weighted average shares outstanding increased to 34,155,000 for the year ended December 31, 2024, from 27,552,000 in 2023, an increase of approximately 23.8%[27] Strategic Developments - PAR Technology acquired Delaget, LLC, enhancing its capabilities in restaurant analytics and business intelligence solutions[5] - The company maintains confidence in its long-term growth strategy and shareholder value delivery[3] Tax Position - The provision for income taxes for the year ended December 31, 2024, was a benefit of $4,768,000, compared to a provision of $1,848,000 in 2023, indicating a significant change in tax position[27] Adjusted Metrics - Adjusted EBITDA reflects net loss before income taxes, interest expense, and depreciation, adjusted for non-cash and non-recurring charges[22] - Adjusted EBITDA for the year ended December 31, 2024, was $(38,397,000), compared to $5,776,000 in 2023, indicating a significant decrease[27]

PAR Technology (PAR) has been beaten down lately with too much selling pressure. While the stock has lost 15.1% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.Here is How to Spot Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that ...

Core Viewpoint - PAR Technology (PAR) has experienced a significant downtrend, with a 13.3% decline over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to analysts' positive earnings outlook [1] Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold stocks, with a reading below 30 typically indicating oversold conditions [2] - PAR's current RSI reading is 24.58, indicating that the heavy selling pressure may be exhausting, which could lead to a price rebound [5] Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts regarding PAR's earnings estimates, with a 2.5% increase in the consensus EPS estimate over the last 30 days, suggesting potential price appreciation [6] - PAR holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a near-term turnaround [7]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher [1] - The Zacks Momentum Style Score helps investors identify stocks with strong momentum, addressing the challenge of defining momentum [2] Group 2: PAR Technology Analysis - PAR Technology currently holds a Momentum Style Score of A and a Zacks Rank of 2 (Buy) [3][4] - Stocks rated Zacks Rank 1 (Strong Buy) and 2 (Buy) with Style Scores of A or B tend to outperform the market over the following month [4] Group 3: Performance Metrics - PAR shares have increased by 7.04% over the past week, outperforming the Zacks Computer - Integrated Systems industry, which rose by 5.71% [7] - Over the past quarter, PAR shares have gained 43.38%, and over the last year, they have increased by 102.7%, while the S&P 500 has only moved 7.42% and 32.55%, respectively [8] Group 4: Trading Volume and Earnings Outlook - PAR's average 20-day trading volume is 567,568 shares, indicating a bullish sign with rising stock prices [9] - In the past two months, one earnings estimate for PAR has moved higher, increasing the consensus estimate from -$0.83 to -$0.81 [11]

Company Overview - As of September 30, 2024, PAR Technology Corporation reported 36,305,087 shares of common stock outstanding[2]. - The company is classified as a Large Accelerated Filer, indicating a significant market presence and regulatory compliance[2]. Financial Performance - Total revenues for the three months ended September 30, 2024, increased to $96,754,000, up 40.8% from $68,701,000 in the same period of 2023[12]. - Subscription service revenue reached $59,909,000, a 91.1% increase compared to $31,363,000 in the prior year[12]. - Gross margin improved to $43,031,000 for the three months ended September 30, 2024, compared to $25,134,000 in the same period of 2023, reflecting a gross margin percentage increase[12]. - Operating loss for the three months ended September 30, 2024, was $15,194,000, slightly improved from a loss of $17,047,000 in the same period of 2023[12]. - Net loss from continuing operations for the three months ended September 30, 2024, was $20,664,000, compared to a loss of $19,234,000 in the prior year[12]. - Total revenues for the nine months ended September 30, 2024, were $244.977 million, a 17.5% increase from $206.814 million for the same period in 2023[103]. - The company reported a net income of $16,070 for the nine months ended September 30, 2024, compared to a net loss of $51,123 for the same period in 2023[18]. Cash and Assets - Cash and cash equivalents increased significantly to $105,804,000 as of September 30, 2024, from $37,183,000 at December 31, 2023[10]. - Total assets grew to $1,299,274,000 as of September 30, 2024, up from $802,606,000 at December 31, 2023[10]. - Total liabilities increased to $606,567,000 as of September 30, 2024, from $469,541,000 at December 31, 2023, reflecting increased operational scale[10]. - Total Shareholders' Equity increased to $692,707,000 as of September 30, 2024, up from $588,321,000 at June 30, 2024, reflecting a growth of approximately 17.7%[15]. Acquisitions and Integration - The company is focused on integrating acquisitions, such as Stuzo Holdings, LLC and TASK Group Holdings Limited, to enhance operational capabilities[7]. - The TASK Group Acquisition was completed on July 18, 2024, with a total purchase consideration of $245.5 million, including $131.5 million in cash and 2,163,393 shares of common stock[44]. - The Stuzo Acquisition on March 8, 2024, involved a total purchase consideration of approximately $170.5 million in cash and $19.2 million in common stock[53]. Revenue Streams - Subscription service revenues reached $143.2 million for the nine months ended September 30, 2024, up from $89.7 million in the same period of 2023[43]. - Hardware revenues decreased to $61.0 million, down $18.0 million or 22.8% compared to $79.0 million for the same period in 2023, primarily due to declines in terminals, peripherals, and kitchen display systems[129]. - Professional service revenues increased to $40.8 million, up $2.7 million or 7.1% compared to $38.1 million for the nine months ended September 30, 2023[131]. Operational Challenges - PAR anticipates challenges related to supply chain management, including securing alternative suppliers and managing inventory levels[7]. - Risks associated with international operations and geopolitical events are acknowledged as potential factors affecting business outcomes[7]. Employee and Internal Controls - PAR is committed to maintaining effective internal controls over financial reporting to ensure accuracy and compliance[8]. - The company is focused on attracting and retaining qualified employees to support business expansion and customer service needs[7]. Future Outlook - Forward-looking statements indicate expectations for future operations, including product offerings and market strategies, but actual results may differ due to various risks[5][6]. - The company expects total contractual obligations of $55.4 million over the next 12 months, which includes $36.3 million for normal operations and $17.1 million for interest payments on long-term debt[185]. - The company anticipates that available cash and cash equivalents will be sufficient to meet operating needs for at least the next 12 months[185].

Financial Data and Key Metrics Changes - PAR Technology reported total revenues of $96.8 million for Q3 2024, a 41% increase compared to the same period in 2023, driven by a 91% growth in subscription service revenue [27][28] - The company achieved a positive adjusted EBITDA of $2.4 million for the quarter, marking a significant improvement from a loss of $6.6 million in Q3 2023 [28][25] - Net loss from continuing operations was $20.7 million, or $0.58 loss per share, compared to a net loss of $19.2 million, or $0.70 loss per share in Q3 2023 [27][28] Business Line Data and Key Metrics Changes - Subscription services revenue reached $59.9 million, an increase of 91% year-over-year, representing 62% of total PAR revenue [29][30] - Annual recurring revenue (ARR) exited the quarter at $248.1 million, a 93% increase from the previous year, with Engagement Cloud up 149% and Operator Cloud up 41% [30][29] - Hardware revenue decreased by 12% year-over-year to $22.7 million, although it grew 13% sequentially compared to Q2 2024 [30][22] Market Data and Key Metrics Changes - Engagement Cloud ARR grew nearly 150% year-over-year, totaling $155 million, driven by significant customer wins and product adoption [15][16] - PAR Retail, now operating in over 25,000 convenience stores, is gaining momentum with a large Tier 1 customer win and an extended contract with a major oil customer [19][20] - The company noted strong demand in the convenience store sector, which is increasingly seen as a competitor to traditional restaurants [73][74] Company Strategy and Development Direction - PAR Technology is focused on delivering a unified solution that enhances user experience and customer retention, with a strategic emphasis on M&A to unlock new verticals [7][9] - The company aims to continue investing in growth while maintaining profitability, balancing the need for both as it navigates a strong pipeline of opportunities [62][63] - Management expressed confidence in the scalability of its products and the potential for continued organic growth, particularly in the Operator Cloud segment [10][78] Management's Comments on Operating Environment and Future Outlook - Management highlighted the positive operating environment and strong demand for its products, with no significant changes in the top of the funnel pipeline [77] - The company expects to continue its trajectory of growth, with a focus on maintaining a balance between growth and profitability [63][62] - Management is optimistic about the potential for further large deal signings and the impact of recent acquisitions on future growth [50][71] Other Important Information - The company reported a gross profit of $43 million, a 71% increase from the prior year, driven primarily by subscription services [33] - Operating expenses increased by 28% year-over-year, primarily due to M&A-related costs, but organic operating expenses showed modest growth [39] - Cash and cash equivalents stood at $105.8 million as of September 30, 2024, with significant cash provided by financing activities related to recent acquisitions [40][42] Q&A Session Summary Question: Update on large deal activity and potential for organic ARR growth - Management indicated a good chance of closing more large deals by year-end, which could accelerate organic ARR growth, although the timing of rollouts remains uncertain [49][50] Question: Insights on M&A progress and cross-selling opportunities - Positive experiences with the Stuzo acquisition were noted, with strong receptivity in the market and expectations for significant product delivery [51][52] Question: Observations from the rollout of major clients like Wendy's and Burger King - The rapid rollout of Punchh at Wendy's provided confidence in handling large enterprise clients, while the Burger King rollout is still in early stages [59][60] Question: Expectations for reaching positive free cash flow - Management expects a lag of roughly one quarter to achieve positive free cash flow, with current operating cash flow showing improvement [74] Question: Pipeline growth in convenience stores and resource allocation - The company is increasing sales resources in the convenience store segment, recognizing it as a significant growth opportunity [72][73] Question: Future M&A plans and market opportunities - Focus remains on smaller bolt-on acquisitions to enhance product functionality, with a keen eye on the current market landscape for potential opportunities [98][97]

Group 1 - PAR Technology reported a quarterly loss of $0.09 per share, better than the Zacks Consensus Estimate of a loss of $0.16, and improved from a loss of $0.21 per share a year ago, representing an earnings surprise of 43.75% [1] - The company posted revenues of $96.75 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 10.54%, but down from $107.13 million in the same quarter last year [2] - PAR Technology shares have increased approximately 52.8% year-to-date, outperforming the S&P 500's gain of 25.2% [3] Group 2 - The earnings outlook for PAR Technology is mixed, with the current consensus EPS estimate for the upcoming quarter at -$0.08 on revenues of $96.35 million, and -$0.83 on revenues of $349.8 million for the current fiscal year [7] - The Zacks Industry Rank indicates that the Computer - Integrated Systems sector is in the top 33% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

| --- | --- | --- | --- | --- | |------------------------------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Q3 '24 Earnings Presentation | | | | | | November 8, 2024 | | | | | | NYSE: PAR | | | | | 1 partech.com Forward-Looking Statements. This presentation contains forward-looking statements made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amend ...

Revenue Growth - Annual Recurring Revenue (ARR) increased to $248.1 million, representing a total growth of 93.3% year-over-year, with organic growth of 24.8% from $128.3 million in Q3 '23[1] - Quarterly subscription service revenues rose by 91.0% compared to Q3 '23[1] - Revenue for Q3 2024 was $96.8 million, a 40.8% increase from $68.7 million in Q3 2023[3] - Total revenues for the three months ended September 30, 2024, were $96,754,000, a 40.7% increase from $68,701,000 for the same period in 2023[19] - Subscription service revenue increased to $59,909,000, up 91.1% from $31,363,000 year-over-year[19] Profitability and Loss - The company reported its first quarter of positive adjusted EBITDA at $2.4 million, improving by $9.0 million from a loss of $6.6 million in Q3 '23[3] - The company reported a net loss from continuing operations of $(20.7) million in Q3 2024, compared to $(19.2) million in Q3 2023[3] - Operating loss for the three months ended September 30, 2024, was $(15,194,000), slightly improved from $(17,047,000) in the prior year[19] - Net loss from continuing operations for the three months ended September 30, 2024, was $(20,664,000), compared to $(19,234,000) for the same period in 2023[19] - The company reported a net income from discontinued operations of $832,000 for the three months ended September 30, 2024, down from $3,718,000 in the prior year[19] Margins and Expenses - Subscription service gross margin percentage improved to 55.3%, up from 50.6% in Q3 '23[3] - Gross margin for the three months ended September 30, 2024, was $43,031,000, compared to $25,134,000 for the same period in 2023, reflecting a significant improvement[19] - Total operating expenses for the three months ended September 30, 2024, were $58,225,000, an increase from $42,181,000 in the same period of 2023[19] - Research and development expenses increased to $17,821,000 for the three months ended September 30, 2024, compared to $14,660,000 in the prior year, indicating a focus on innovation[19] - Non-GAAP subscription service gross margin percentage is adjusted to exclude amortization from acquired and internally developed software, stock-based compensation, and severance costs[22] Assets and Acquisitions - PAR Technology's total assets increased to $1,299.3 million as of September 30, 2024, up from $802.6 million at the end of 2023[16] - The company completed the acquisition of TASK Group Holdings Limited, enhancing its global foodservice transaction platform capabilities[1] Shareholder Metrics - The company’s diluted net loss per share from continuing operations was $(0.58) for the three months ended September 30, 2024, compared to $(0.70) in the same period of 2023[19] - Non-GAAP diluted net loss per share for 2024 was $(0.09), compared to $(0.35) in 2023[27] - Diluted net income (loss) per share for the three months ended September 30, 2024, was $(0.56), consistent with $(0.56) in the same period of 2023[27] Other Financial Metrics - Adjusted EBITDA for the nine months ended September 30, 2024, was $(12,126,000), an improvement from $(31,025,000) in the same period of 2023[26] - Total interest expense for the three months ended September 30, 2024, was $3,417,000, up from $1,750,000 in the same period of 2023[26] - Stock-based compensation for the nine months ended September 30, 2024, was $16,583,000, compared to $10,544,000 in the same period of 2023[26] - Depreciation and amortization for the three months ended September 30, 2024, was $10,575,000, compared to $6,549,000 in the same period of 2023[26] - Transaction costs for the nine months ended September 30, 2024, totaled $6,103,000, with no transaction costs reported in the same period of 2023[26]