Slide 1: Q3 '24 Earnings Presentation
Q3 ‘24 Earnings Presentation November 8, 2024 NYSE: PAR partech.com 1
Slide 2: Forward-Looking Statements. Industry and Market Data.
Forward-Looking Statements. Industry and Market Data. This presentation contains forward-looking statements made pursuant to the safe harbor provisions Market, industry, and other data included in this presentation are from or based on our own of Section 21E of the Securities Exchange Act of 1934, a
Slide 3: Our Journey … So Far ...
Our Journey … So Far ... (Dollar values represent ARR) EARLY SOFTWARE RESURGENCE GLOBAL FOOD SERVICE INNOVATION RENAISSANCE • Launched PAR Payments PURE PLAY • Founded in 1968 as a • Restructured PAR, new team, • Acquired Punchh in April 2021, a leader in • Acquired loyalty provider PAR DoD tech con
Slide 4: Building a Unified Experience... Leading To
Building a Unified Experience... Leading To • 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 c
Slide 5: PAR's Success Will Be Driven by our Flywheel
PAR's Success Will Be Driven by our Flywheel partech.com 5
Slide 6: Financial Review
Financial Review Third Quarter 2024 Highlights partech.com 6
Slide 7: Q3 2024 Highlights
Q3 2024 Highlights 1 25% organic ARR growth • Consistent delivery on strong organic ARR growth 2 Adjusted EBITDA profitable • Adjusted EBITDA of $2.4 million in Q3 2024 • Cross-sell traction creating meaningful revenue opportunity from existing and potential future 3 Cross-sell traction whitespace •
Slide 8: Q3 2024 Revenue Breakout
Q3 2024 Revenue Breakout partech.com 8
Slide 9: Strong Organic & Inorganic ARR Growth
Strong Organic & Inorganic ARR Growth (#039;000,000) Organic ARR Total ARR 25% 93% Y/Y Growth Y/Y Growth Year-over-year metrics are for the quarter ended 9/30/2024 compared to the quarter ended 9/30/2023. Please see Appendix — Key Performance Indicators for more information on ARR. partech.com 9
Slide 10: Resilient ARR Growth Across Product Lines
Resilient ARR Growth Across Product Lines (#039;000,000) Operator Cloud Engagement Cloud 41% 149% Y/Y Growth Y/Y Growth Year-over-year metrics are for the quarter ended 9/30/2024 compared to the quarter ended 9/30/2023. Please see Appendix — Key Performance Indicators for more information on ARR. parte
Slide 11: Driving Margin Expansion
Driving Margin Expansion Non-GAAP Subscription Service Non-GAAP Consolidated Gross Gross Margin Percentage(1) Margin Percentage(1) 660 Basis Point Margin Expansion (1) Non-GAAP Subscription Service Gross Margin percentage and Non-GAAP Consolidated Gross Margin percentage are Non-GAAP financial measu
Slide 12: As We Grow, Efficiency Improves
As We Grow, Efficiency Improves Adjusted EBITDA(1) ($000,000) Non-GAAP Profitability Q3 2024 (1) Adjusted EBITDA is a Non-GAAP financial measure. Please see Appendix for a detailed reconciliation from net income (loss) to Adjusted EBITDA. partech.com 12
Slide 13: Q3 '24 Financials
Q3 ‘24 Financials Three Months Ended September 30, (in thousands) 2024 2023 Revenues, net: Subscription service $ 59,909 $ 31,363 Consolidated Highlights Hardware 22,650 25,824 Professional service Total revenues, net 14,195 96,754 11,514 68,701 • 71% increase in gross margin from Q3 2023 Total gros
Slide 14: Appendix
Appendix partech.com 14
Slide 15: Non-GAAP Subscription Service Gross Margin Percentage Reconciliation
Non-GAAP Subscription Service Gross Margin Percentage Reconciliation 3 Months Ended Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Subscription Service Gross Margin Percentage 50.6% 48.1% 51.6% 53.1% 55.3% Add: Depreciation and amortization 18.4% 16.9% 13.9% 13.1% 11.4% Add: Stock-based compensation 0.4% 0.3% 0.1% 0
Slide 16: Non-GAAP Consolidated Gross Margin Percentage Reconciliation
Non-GAAP Consolidated Gross Margin Percentage Reconciliation 3 Months Ended Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Consolidated Gross Margin Percentage 36.6% 34.6% 37.2% 41.0% 44.5% Add: Depreciation and amortization 8.2% 8.2% 7.9% 7.6% 7.1% Add: Stock-based compensation 0.4% 0.3% 0.2% 0.4% 0.2% Add: Severan
Slide 17: Net Income (Loss) to Adjusted EBITDA Reconciliation
Net Income (Loss) to Adjusted EBITDA Reconciliation (in thousands) 3 Months Ended Q3'24 Q2'24 Q1'24 Q4'23 Q3'23 Net income (loss) $(19,832) $54,190 $(18,288) $(18,629) $(15,516) Discontinued operations (832) (77,777) (2,078) (2,905) (3,718) Net loss from continuing operations (20,664) (23,587) (20,3
Slide 18: Investment Thesis
Investment Thesis 1. Foodservice market ready for disruption • Large TAM in restaurants with ~1m locations in the US spending 2-3% of total revenue on technology1 • Enterprise foodservice playing “catch-up” in adopting new technology and anticipate this technology spend to ramp • The industry shift
Slide 19: Key Performance Indicators
Key Performance Indicators • Annual Recurring Revenue or "ARR” is the annualized revenue from subscription services, including subscription fees for our SaaS solutions and related software support, managed platform development services, and transaction-based payment processing services. We generally
Slide 20: Thank You!
Thank You! partech.com 20