Par Technology Corporation · NYSE:PAR
Par Technology — Investor Presentation (August 2022)
36 slides from Par Technology's investor presentation, August 2022
Slide 1: Unified Commerce Cloud Platform
Unified Commerce Cloud Platform August 2022
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements. Key Performance Indicators and Non-GAAP Financial Measures.(1) 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 We monitor certain operating d
Slide 3: Our Mission
To enable personalized experiences that connect OUR MISSION people to the brands, meals, and moments they love. 3
Slide 4: Food. People.
Nothing Food. People. in between. TM
Slide 5: A little about us…
TM A little about us…
Slide 6: Unified Commerce Cloud for Enterprise Restaurants
Unified Commerce Cloud 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 expense of restau
Slide 7: PAR by the Numbers
PAR by the Numbers $98.6M ARR 60K+ ~200M ~29% Y-o-Y Growth(1) Active Sites Guest Profiles on Platform ~4% 73% 45 Q2 ‘22 Annualized Site Churn Adj. Subscription Gross Margin Of the top 100 U.S. Rest. Chains(2) (1) ARR includes Punchh® (acquired in April 2021.) (2) Source: Nation’s Restaurant News Top
Slide 8: Recent Acquisition
TM Recent Acquisition
Slide 9: PAR Acquires MENU
BAR ACQUIRES MENU
Slide 10: A strategically compelling acquisition
Robust Product: replete Digital Ordering suite of products, delivery, and commerce A strategically compelling Accelerator: significantly improve U.S. and International go-to- acquisition market strategy 1+1=3 Aligned Vision: open best-of-breed solutions aligning to build unified experiences for our
Slide 11: MENU Takes a Transformational Approach to Online Ordering Solutions
MENU Takes a Transformational Approach to Online Ordering Solutions Branded Branded Branded Web App Management Center Mobile App Kiosk App Loyalty & CRM External Channels Ordering Delivery & Dispatch 11
Slide 12: MENU Platform is the most Robust Platform We've Ever Seen
MENU Platform is the most Robust Platform We’ve Ever Seen 12
Slide 13: MENU Fits Our Enterprise-Grade, Best-of-Breed Solutions
Online Ordering POS Dispatch MENU Fits Our Enterprise-Grade, Loyalty Offers & Labor Best-of-Breed Engagement Solutions like a Puzzle Payments Reporting Food Service Technology solutions for all, made easy 13
Slide 14: Our Journey… Thus Far…
Our Journey… Thus Far… (Dollar values represent ARR) Early Innovation Software Renaissance Resurgence • Founded in 1968 as a • Restructured PAR, new team, mission, • Acquired digital ordering MENU DoD Tech Contractor. values. • Acquired loyalty provider Punchh. • Pioneered the first • Recapitalized
Slide 15: … But We Are Just Getting Started
… But We Are Just Getting Started Employees (1) Active Sites ( ‘000) ARR (2) ($ ‘000,000) 99 60+ ~8+x ~3+x 1,100 ~2x 500 15 11 Q3 '18 Q2 '22 Q3 '18 Q2 '22 Q3 '18 Q2 '22 (1) Includes only restaurant segment employees and excludes corporate and government segment employees. (2) ARR includes Data Centr
Slide 16: PAR Values
PAR VALUES SPEED 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 17: What we're building
TM What we’re building
Slide 18: Software is Eating the Restaurant
Software is Eating the Restaurant Supply Chain Procure-to-Pay Kitchen Management Labor acquisition & optimization Robotics and equipment Visual AI food quality Dynamic Menu Optimization QR Code Ordering & Payment Voice ordering & interaction Mobile Ordering 18
Slide 19: Restaurant Tech Innovation is Accelerating
As a Result, Restaurant Tech Innovation is Accelerating… # of Hospitality Tech Companies 30,000+ 15,315 6,805 3,227 1,174 80's 90's 00's 10's 20's PC Cloud Source: PitchBook.com 19
Slide 20: But Restaurant Owners are Losing
…But Restaurant Owners are Losing Vendor Spaghetti Aggregator Hell Loss Prevention Back of House Data Warehouse Sales & SuccessFactors Employees RMDC Labor Store Operations HCM Management Data Lake Storage Employees Sales & Labor Sales Coming Soon Sales & Labor Data Factory Online Orders Barcodes Ch
Slide 21: We Are Building a Unified Commerce Cloud Platform
We Are Building a Unified Commerce Cloud Platform Customer’s Operations Purchase/Pay Pickup / Delivery Review Earn Get Offers Refer Friends Kiosk Drive-Thru Experience Operator’s Menu Mgt Kitchen Prod. & Channel Labor, Food & Guest Category P&L Reporting & Product Operations Experience & Dist Planni
Slide 22: Redefining the Restaurant of the Future
Redefining the Restaurant of the Future Personalized engagement (loyalty, offers, and communication) Omni-channel ordering Seamless order retrieval (online, mobile, in-store) (dine-in, pickup, or delivery) Frictionless payment Efficient order production (mobile, EMV, gift cards) (accurate, fast, fre
Slide 23: 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 bein
Slide 24: Our Financials
TM Our Financials
Slide 25: Investment Highlight
Investment Highlight 1 Massive Total Addressable Large, growing TAM In restaurants with ~1M locations in the U.S. spending 2 – Market 3% of revenue(1) on technology. This TAM will continue to grow. 2 Macro Factors Catalyzing Consumer preference of accessible, digital-first experience; increased Tech
Slide 26: We Continue to Expand Our TAM
We Continue to Expand Our TAM… Significant TAM opportunities Sites $ARPU $TAM (2) Global + $340B Full 20M+(1) $17K $340B Platform: Global + Full Platform Upsell 1M(1) $10K $10B $10B and SMB: Upsell & SMB ~$2B U.S. Enterprise 450K+(1) $4.5K ~$2B U.S. Enterprise only: Current ARR $98.6M Current: 60K+
Slide 27: Growing Our Potential ARPU ~2x since 2019
…While Growing Our Potential ARPU ~2x since 2019 • Expanded our Customer Experience Engagement product. 2022: $4,500+ • Enabled Omni-channel, real-time and personalized consumer experience in- store and online. • Added back-office management solution, which facilitates 2020: $3,500+ exceptionally fa
Slide 28: Live ARR
Live ARR(1) ARR (1) (U$D ‘000,000) 99 88 34 19 14 2018 2019 2020 2021 Q2 '22 (1) ARR includes Data Central® (acquired late 2019 but ARR inclusion started in early 2020 for graph) and Punchh® (acquired in April 2021.) 28
Slide 29: Capital Allocation – ARR/Share Accelerating
Capital Allocation – ARR/Share Accelerating ARR (1) (U$D ‘000,000) ARR (1) / Share (U$D) 120 Shares ( ‘000,000) 3.64 4 3.28 100 3 80 60 1.55 2 99 1.04 88 40 0.92 1 20 34 19 14 0 0 2018 2019 2020 2021 Q2'22 Shares 16.2 18.3 22.0 26.9 27.1 (1) ARR includes Data Central® (acquired late 2019 but ARR inc
Slide 30: Adjusted Subscription Gross Margin Expanding
Adjusted Subscription Gross Margin(1) Expanding Adjusted Subscription Gross Margins (1)(2) (%) 73% 70% 57% 53% 44% 2018 2019 2020 (3) 2021 Q2'22 (1) Subscription Margins were $6.4M in 2018, $10.5M 2019, $15M in 2020, $44M in 2021, and $68M in Q2 2022 Annualized. (2) Adjusted Subscription Gross Margi
Slide 31: Operating Leverage
Operating Leverage Research & Development (1) and Sales & Marketing (% of ARR (2) ) (3) 90% 62% 68% 37% 46% 33% 42% 31% 95% 78% 2018 2019 2020 2021 (4) Q2'22 (5) Research & Development Sales & Marketing (1) Gross R&D excludes Capitalization. (2) ARR includes Data Central® (acquired late 2019 but ARR
Slide 32: Appendix
T™ Appendix
Slide 33: 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 Q2’22 (1) Annualized Total Restaurant / Retail Revenue $134 $123 $143 $210 $257 Non-Subscription Service Revenue (119) (105) (114) (147) (163) Subscription Service Revenue $15 $18 $28 $63
Slide 34: R&D Operating Expense GAAP to Non-GAAP Reconciliation
R&D Operating Expense GAAP to Non-GAAP Reconciliation (1) (2) $M 12 Months Ended Dec-2018 Dec-2019 Dec-2020 Dec-2021 Q2’22 Net R&D $12 $13 $19 $40 $40 Less Hardware R&D (3) (3) (4) (3) (4) Net Subscription R&D $10 $11 $16 $37 $36 Plus Adjustment for Capitalized Software 4 4 7 4 6 Non-GAAP Gross Subs
Slide 35: 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 Q4 ’21 (1) Q2’22 (2) Annualized Total S&M $14 $13 $14 $31 $33 Less Non-Subscription S&M (1) (1) (1) (2) (2) Non-GAAP Subscription S&M $13 $12 $12 $29 $31 Note: Unaudited. Numbers may not tie due to ro
Slide 36: Appendix – Certain Definitions
Appendix – Certain Definitions • “Annual Recurring Revenue” or “ARR” is the annualized revenue from Software as a Service (“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