Par Technology Corporation · NYSE:PAR
Par Technology — Investor Presentation (January 2022)
30 slides from Par Technology's investor presentation, Jan 10, 2022
Slide 1: Unified Commerce Cloud Platform January 2022
Unified Commerce Cloud Platform January 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements.This presentation contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, Section 27A of the Securities Act of 1933, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking st
Slide 3: Our Mission
3 To enable personalized experiences that connect people to the brands, meals, and moments they love. OUR MISSION
Slide 4: Nothing in between. Food. People.
Nothingin between. TM Food. People.
Slide 5: A little about us…
A little about us… TM
Slide 6: The Unified Commerce Cloud Platform for Enterprise Restaurants
The Unified Commerce Cloud Platform for Enterprise Restaurants Software is eating the restaurant, bodies are turning to bits. Restaurants are not ready for this change and have installed dozens of disparate products. This has led to a boom in restaurant technology, but this boom has come at the expe
Slide 7: PAR by the Numbers
PAR by the Numbers (1) ARR includes Data Central® (acquired late 2019 but ARR inclusion started in early 2020 for graph) and Punchh® (acquired in April 2021.)(2) Source: Nation’s Restaurant News Top 500 Restaurant Lists. $83M ARR ~147% Y-o-Y Growth(1) 50K+Active Sites 45Of the top 100 U.S. Rest. Cha
Slide 8: Software Renaissance: Our Journey Thus Far
Software Renaissance Our Journey… Thus Far… Early Innovation 1980s+ 2019 2021+ Restructured PAR, new team, mission, values.Recapitalized PAR to invest in SaaS.Acquired Data Central®.Shifted focus to SaaS. Founded in 1968 as a DoD Tech Contractor.Pioneered the first commercial POS. 2020 Resurgence Ac
Slide 9: … But We Are Just Getting Started
… But We Are Just Getting Started (1) Includes only restaurant segment employees and excludes corporate and government segment employees.(2) ARR includes Data Central® (acquired late 2019 but ARR inclusion started in early 2020 for graph) and Punchh® (acquired in April 2021.) ~3x ~8x ~2x ARR(2) ($ ‘
Slide 10: PAR Values
PAR VALUES oie ED We look for people who don’t wait for the elevator. OWNERSHIP We prefer owners to renters. You treat rental cars different than your own. FOCUS Relentless and ruthless prioritization on what moves the needle. WINNING TOGETHER We have to win, but we must do it together.
Slide 11: What we're building
What we’re building TM
Slide 12: Software is Eating the Restaurant
Software is Eating the Restaurant Kitchen Management Voice ordering & interaction Mobile Ordering QR Code Ordering & Payment Labor acquisition & optimization Supply Chain Procure-to-Pay Visual AI food quality Dynamic Menu Optimization Robotics and equipment
Slide 13: Restaurant Tech Innovation is Accelerating
As a Result, Restaurant Tech Innovation is Accelerating… PC Cloud Source: PitchBook.com Unified Commerce Cloud Platform January 2022
Slide 14: Aggregator Hell, Vendor Spaghetti
Aggregator Hell Vendor Spaghetti …But Restaurant Owners are Losing Back of House RMDCStore Operations Management SuccessFactors HCM Data Warehouse Data Factory Data Lake Storage Loss Prevention Coming Soon Payments Brink® POS Payment TechTx ProcessingCompany Stores Tx ProcessingFranchise Stores Paym
Slide 15: We Are Building a Unified Commerce Cloud Platform
We Are Building a Unified Commerce Cloud Platform Data Management DATA PLATFORMSingle Source of Truth for Guests, Employees and Business Data Integrations ENTERPRISE INTEGRATION PLATFORMPre-built APIs & Dev Portal for Extensibility to Partner Ecosystem Operations Menu Mgt & Dist Kitchen Prod. & Plan
Slide 16: Redefining the Restaurant of the Future
Redefining the Restaurant of the Future Omni-channel ordering (online, mobile, in-store) Personalized engagement(loyalty, offers, and communication) Seamless order retrieval(dine-in, pickup, or delivery) Frictionless payment(mobile, EMV, gift cards) Efficient order production(accurate, fast, fresh)
Slide 17: The Setup is Strong
The Setup is Strong The restaurant industry is going through massive and rapid digitalization.At least a decade behind retail and manufacturing but racing to catch up. Creating enormous amount of data…but no more Intelligence.Massive amounts of innovation in every “process,” but everything is being
Slide 18: Our Financials
Our Financials TM
Slide 19: Investment Highlights
Investment Highlight Massive Total Addressable Market Large, growing TAM In restaurants with ~1M locations in the U.S. spending 2 – 3% of revenue(1) on technology. This TAM will continue to grow. Macro Factors Catalyzing Technology Adoption Consumer preference of accessible, digital-first experience
Slide 20: We Continue to Expand Our TAM
We Continue to Expand Our TAM… Significant TAM opportunities ~$2B $10B $340B $83M U.S. Enterprise Upsell & SMB Global + Full Platform Sites $ARPU $TAM 20M+(1) $17K $340B 1M(1) $10K $10B 450K+(1) $4.5K ~$2B 53K $1.6K $83M Current ARR Current: U.S. Enterprise only: Global + Full Platform: Upsell and S
Slide 21: Growing Our Potential ARPU
…While Growing Our Potential ARPU ~2x since 2019 2021: $4,500+ Expanded our Customer Experience Engagement product.Enabled Omni-channel, real-time and personalized consumer experience in-store and online. 2020: $3,500+ Added back-office management solution, which facilitates exceptionally fast migra
Slide 22: Live ARR
Live ARR(1) ARR(1) (U$D ‘000,000) (1) ARR includes Data Central® (acquired late 2019 but ARR inclusion started in early 2020 for graph) and Punchh® (acquired in April 2021.) CAGR ~79%
Slide 23: Capital Allocation – ARR/Share Accelerating
Capital Allocation – ARR/Share Accelerating ARR(1) (U$D ‘000,000)ARR (1) / Share (U$D)Shares ( ‘000,000) Shares 16.2 18.3 22.0 26.9 (1) ARR includes Data Central® (acquired late 2019 but ARR inclusion started in early 2020 for graph) and Punchh® (acquired in April 2021.)
Slide 24: Adjusted Subscription Gross Margin Expanding
Adjusted Subscription Gross Margin(1) Expanding (1) Subscription Margins were $6.4M 2018, $10.5M 2019, $15M 2020, and $48.3 Q3 2021 Annualized.(2) Adjusted Subscription Gross Margin excludes amortization of intangibles of both internally developed and acquired technologies. See Appendix for non-GAAP
Slide 25: Operating Leverage
Operating Leverage (1) Gross R&D excludes Capitalization.(2) ARR includes Data Central® (acquired late 2019 but ARR inclusion started in early 2020 for graph) and Punchh® (acquired in April 2021.)(3) See Appendix for non-GAAP reconciliations.(4) Q3’21 R&D and S&M OpEx were annualized based on Q3 act
Slide 26: Appendix
Appendix
Slide 27: Subscription Gross Profit GAAP to Non-GAAP Reconciliation
Subscription Gross Profit GAAP to Non-GAAP Reconciliation $M 12 Months Ended Dec-2018 Dec-2019 Dec-2020 Q3 ’21 Annualized Total Restaurant / Retail Revenue $134 $123 $143 $239 Non-Subscription Service Revenue (119) (105) (114) (168) Subscription Service Revenue $15 $18 $28 $71 Total COGS $103 $91 $1
Slide 28: R&D Operating Expense GAAP to Non-GAAP Reconciliation
R&D Operating Expense GAAP to Non-GAAP Reconciliation $M 12 Months Ended Dec-2018 Dec-2019 Dec-2020 Q3 ’21 Annualized Net R&D $12 $13 $19 $40 Less Hardware R&D (3) (3) (4) (6) Net Subscription R&D $10 $11 $16 $34 Plus Adjustment for Capitalized Software 4 4 7 4 Non-GAAP Gross Subscription R&D $14 $1
Slide 29: S&M Operating Expense GAAP to Non-GAAP Reconciliation
S&M Operating Expense GAAP to Non-GAAP Reconciliation $M 12 Months Ended Dec-2018 Dec-2019 Dec-2020 Q3 ’21 Annualized Total S&M $14 $13 $14 $27 Less Non-Subscription S&M (1) (1) (1) (2) Non-GAAP Subscription S&M $13 $12 $12 $25 Note: Unaudited. Numbers may not tie due to rounding.(1) Q3’21 S&M OpEx
Slide 30: Appendix – Certain Definitions
Appendix – Certain Definitions“Annual Recurring Revenue” or “ARR” is the annualized revenue from SaaS and related revenue of our software products. We calculate ARR by annualizing the monthly recurring revenue for all active sites as of the last day of each month for the respective reporting period.
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