Par Technology Corporation · NYSE:PAR
Par Technology — Q4 2023 Earnings Presentation
21 slides from Par Technology's earnings presentation, Feb 27, 2024
Slide 1: Q4 '23 Earnings Presentation
partech.com Q4 ‘23 Earnings Presentation February 27, 2024 NYSE: PAR
Slide 2: Forward-Looking Statements
partech.com 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
Slide 3: A little about us...
partech.com A little about us...
Slide 4: Mission: personalized experiences connecting people to brands, meals, and moments
To enable personalized experiences that connect people to the brands, meals, and moments they love.
Slide 5: Our Journey... Thus Far
partech.com Our Journey … Thus Far ... $136.9M Q4 2023
Slide 6: Building a Unified Experience
partech.com • Unified technology platform offering integrated solutions and sophisticated data insights • Pairs with our state of the art hardware offerings for a complete tech stack • Supported by our comprehensive professional service offerings to drive a positive customer experience Building a Un
Slide 7: Financial Review Fourth Quarter 2023 Highlights
partech.com Financial Review Fourth Quarter 2023 Highlights
Slide 8: Q4 '23 Financials Consolidated Highlights
partech.com Q4 ‘23 Financials Consolidated Highlights • 10% increase in revenue from Q4 2022 Subscription Service Highlights • 23% increase in ARR from Q4 2022 • 18% increase in revenue from Q4 2022 Three Months Ended December 31 in thousands 2023 2022 Revenues, net: Hardware $ 24,400 $ 29,590 Subsc
Slide 9: Quarterly KPI Trends: Guest Engagement
partech.com Quarterly KPI Trends ARR ($‘000,000) 58.9 59.4 60.9 62.2 63.8 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 8% Y/Y Growth Active Sites (‘000) 69.9 68.1 70.5 68.1 70.8 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 1% Y/Y Growth Guest Engagement (Punchh + MENU) Year-over-year metrics are for the quarter ended 12/31/2023
Slide 10: Quarterly KPI Trends: Operator Solutions
partech.com Quarterly KPI Trends Operator Solutions (Brink POS + PAR Payment Services + PAR Pay) ARR ($‘000,000) Year-over-year metrics are for the quarter ended 12/31/2023 compared to the quarter ended 12/31/2022. Please see Appendix A — Key Performance Indicators for more information on ARR and Ac
Slide 11: Quarterly KPI Trends: Back Office
partech.com Quarterly KPI Trends Back Office (Data Central) ARR ($‘000,000) Year-over-year metrics are for the quarter ended 12/31/2023 compared to the quarter ended 12/31/2022. Please see Appendix A — Key Performance Indicators for more information on ARR and Active Sites. 10.9 11.3 11.6 12.4 13.0
Slide 12: Annual KPI Trends: ARR
partech.com Annual KPI Trends ARR ($‘000,000) (1) Adjusted Subscription Service Gross Margin is a non-GAAP financial measure. Please see Appendix A for a detailed reconciliation to Subscription Service Gross Margin (GAAP). (2) The leveling off of Adjusted Subscription Service Gross Margin is primari
Slide 13: Annual KPI Trends: S&M and R&D Expense as % of ARR
partech.com Annual KPI Trends Subscription Service S&M and R&D Expense as a % of ARR (1) Subscription Service S&M and R&D expense is a non-GAAP financial measure. Please see Appendix A for a detailed reconciliation to S&M and R&D expense, respectively. Please see Appendix A — Key Performance Indicat
Slide 14: Appendix A
partech.com Appendix A
Slide 15: Adjusted Subscription Gross Margin Non-GAAP Reconciliation (Annual)
partech.com ($'000,000), except % 12 Months Ended Dec 2021 Dec 2022 Dec 2023 Subscription Service Revenue $63 $97 $123 Subscription Service Gross Margin 24 50 59 Add back Amortization from Acquired and Internally Developed Technology included in Subscription Service Gross Margin 17 21 22 Adjusted Su
Slide 16: Adjusted Subscription Gross Margin Non-GAAP Reconciliation (Quarter)
partech.com ($'000,000), except % 3 Months Ended Dec 2022 Dec 2023 Subscription Service Revenue $28 $33 Subscription Service Gross Margin 15 16 Add back Amortization from Acquired and Internally Developed Technology included in Subscription Service Gross Margin 5 6 Adjusted Subscription Service Gros
Slide 17: Subscription Service S&M Non-GAAP Reconciliation
partech.com ($'000,000), except % 12 Months Ended Dec 2021 Dec 2022 Dec 2023 ARR $88 $111 $137 Total S&M Expense 24 35 39 Less: Hardware S&M Expense (7) (8) (5) Subscription Service S&M Expense $18 $27 $33 Subscription Service S&M Expense as a % of ARR 20% 24% 24% May not sum/recalculate due to roun
Slide 18: Subscription Service R&D Non-GAAP Reconciliation
partech.com ($'000,000), except % 12 Months Ended Dec 2021 Dec 2022 Dec 2023 ARR $88 $111 $137 Total R&D Expense 35 49 58 Less: Hardware R&D Expense (4) (5) (5) Subscription Service R&D Expense $31 $44 $53 Subscription Service R&D Expense as a % of ARR 35% 40% 39% May not sum/recalculate due to roun
Slide 19: Investment Thesis
partech.com 1. Foodservice market ready for disruption • Large TAM in restaurants with ~1m locations in the US spending 2-3% of total revenue on technology1 • The industry shift to cloud technology has led to an explosion in new technology from Voice AI to marketing technology 2. Meeting market need
Slide 20: Key Performance Indicator Definitions
partech.com • Annual Recurring Revenue or "ARR” is the annualized revenue from subscription services, including subscription fees for our SaaS solutions, related software support, and transaction-based payment processing services. We calculate ARR by annualizing the monthly subscription service reve
Slide 21: Thank You!
partech.com Thank You!