Slide 1: Q3 '22 Earnings Presentation
Q3 ‘22 Earnings Presentation November 9, 2022 NYSE: PAR
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 s
Slide 3: Q3 '22 Financials
Q3 ‘22 Financials • Q3 2022 Revenue Reported-- $92.8 million • 19.1% Increase from Q3 2021 3 in thousands 2022 2021 Revenues, net: Product 31,343 30,291 Service 37,010 29,530 Contract 24,414 18,039 Total revenues net 92,767$ 77,860$ Total gross margin 21,408 18,214 Operating expenses SG&A 26,543 21,
Slide 4: Total ARR grew 29.2% YoY
ARR(1) 8 2 .5 8 8 .2 9 4 .4 9 8 .6 1 0 6 .6 Q3'21 Q'4'21 Q1'22 Q2'22 Q3'22 ARR (U$D ‘000,000) Total ARR grew 29.2% YoY from Q3 ’21 • Guest Engagement ARR (includes Punchh + MENU) increased 31% from Q3 last year • Operator Solutions ARR (includes Brink POS and PAR Payment Businesses(2) increased 32%
Slide 5: ARR Growth Trajectory
ARR(1) Growth Trajectory 1 4 1 9 3 4 8 8 1 0 6 .6 2018 2019 2020 2021 Q3'22 ARR (U$D ‘000,000) (1) ARR includes Data Central (acquired December 2019 but ARR inclusion started in early 2020 for graph) and Punchh (acquired in April 2021).
Slide 6: Adjusted Subscription Gross Margin Expanding
Adjusted Subscription Gross Margin Expanding (1) (1) Subscription Margins were $6.4M in 2018, $10.5M 2019, $15M in 2020, $44M in 2021, and $68M in Q3 2022 Annualized (2) Adjusted Subscription Gross Margin excludes amortization of intangibles of both internally developed and acquired technologies. Se
Slide 7: Operator Solutions ARR
Operator Solutions ARR – (Includes Brink POS + PAR Payments Business(2)) 7 3 0 3 2 3 5 3 6 3 8 .9 Q3'21 Q4'21 Q1'21 Q2'22 Q3'22 ARR (U$D ‘000,000) • Operator Solutions ARR increased 32% from Q3 2021 • Consistently low Churn(1) ~ 4.8% annualized in Q3 2022 (1) See Appendix A – Key Performance Indicat
Slide 8: Operator Solutions Active Sites
Operator Solutions Active Sites – 8 14.9 15.8 16.9 17.7 18.5 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Act ive Site Count ( locat ions ‘000) • 24% increase of Active Sites from Q3 2021 • Activations in Q3 2022 – 985 • Active Sites now total ~ 18,500+ • Q3 2022 Bookings # ~ 1,137 stores See Appendix A – Key Perf
Slide 9: Guest Engagement ARR
Guest Engagement ARR – (Includes Punchh + MENU) 9 44 47 50 53 57.5 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 ARR (U$D ‘000,000) • Guest Engagement ARR increased 31% from Q3 2021
Slide 10: Guest Engagement Active Sites
Guest Engagement Active Sites – (Includes Punchh + MENU) 10 53 56 59 62 67.1 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Act ive Site Count locat ions ‘000) • 26% increase of Active Sites from Q3 2021 • 5,698 stores went live in Q3 2022 • Active Sites now total ~ 67,104 See Appendix A – Key Performance Indicators
Slide 11: Back Office Solutions ARR
Back Office Solutions ARR – (Includes Data Central) 11 9 .1 9 .4 8 .7 9 .2 1 0 .2 Q3'21 Q4'21 Q1'21 Q2'22 Q3'22 ARR (U$D ‘000,000) • Back Office Solutions ARR increased 12.3% from Q3 2021 • 370 New activations in Q3 2022 • Active Sites now total 6,668 See Appendix A – Key Performance Indicators
Slide 12: Restaurant/Retail Segment Product Revenue
Restaurant/Retail Segment Product Revenue 12 30 32 25 28 31 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 product revenue (U$D ‘000,000) • Product revenue increased 3.4% from Q3 ‘21 • Proving Value of Complete Tech Stack • Difficult/Challenging Supply Chain Environment
Slide 13: Appendix A
™ Appendix A
Slide 14: 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 Dec-2021 Q3’22 Annualized Total Restaurant / Retail Revenue $134 $123 $143 $210 $274 Non-Subscription Service Revenue (119) (105) (114) (147) (173) Subscription Service Revenue $15 $18 $28 $63 $10
Slide 15: 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 • The industry shift to cloud technology has led to an explosion in new technology from Voice AI to marketing technology 2. Meeting marke
Slide 16: Definitions of ARR, Contracted ARR, Bookings and Activations
16 Appendix A – Key Performance Indicators • Annualized 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
Slide 17: Thank You!
™ Thank You!