Slide 1: Q4 '24 Earnings Presentation
Q4 ‘24 Earnings Presentation February 28, 2025 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 BUILDING A UNIFIED PLATFORM 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
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 Fourth Quarter 2024 Highlights partech.com 6
Slide 7: Q4 2024 Highlights
Q4 2024 Highlights 1 21% organic ARR growth • Consistent delivery on strong organic ARR growth 2 Continued Adjusted EBITDA profitability • Adjusted EBITDA of $5.8 million in Q4 2024 3 Cross-sell traction • Cross-sell traction creating meaningful revenue opportunity from existing and potential future
Slide 8: Q4 2024 Revenue Breakout
Q4 2024 Revenue Breakout Revenue by Offering ARR by Subscription Product Line 24.8% Hardware Operator Cloud Subscription Service 42.3% Engagement Cloud Professional Service 57.7% 61.2% 14.0% partech.com 8
Slide 9: Strong Organic & Inorganic ARR Growth
Strong Organic & Inorganic ARR Growth (#039;000,000) Organic ARR Total ARR 21% 102% Y/Y Growth Y/Y Growth 276.0 248.1 185.7 192.2 151.8 160.2 165.2 136.9 144.7 136.9 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Year-over-year metrics are for the quarter ended 12/31/2024 compared to the q
Slide 10: Resilient ARR Growth Across Product Lines
Resilient ARR Growth Across Product Lines (#039;000,000) Operator Cloud Engagement Cloud 60% 150% Y/Y Growth Y/Y Growth 154.7 159.1 116.8 107.2 107.9 84.2 93.4 73.1 78.5 63.8 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Year-over-year metrics are for the quarter ended 12/31/2024 compared
Slide 11: Driving Margin Expansion
Driving Margin Expansion Non-GAAP Subscription Service Non-GAAP Consolidated Gross (1) (1) Gross Margin Percentage Margin Percentage 720 Basis Point Y/Y Margin Expansion 65.3% 65.7% 66.4% 66.8% 64.7% 49.3% 51.8% 50.3% 43.1% 45.6% Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 (1) Non-GA
Slide 12: As We Grow, Efficiency Improves
As We Grow, Efficiency Improves Adjusted EBITDA(1) ($000,000) Continued Adjusted 5.8 EBITDA Growth 2.4 (7.4) (10.2) (4.3) Q4 5.8M Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 (1) Adjusted EBITDA is a Non-GAAP financial measure. Please see Appendix for a detailed reconciliation from net income (loss) to Adjusted EB
Slide 13: Q4 '24 Financials
Q4 ‘24 Financials Three Months Ended December 31 (in thousands) 2024 2023 Revenues, net: Subscription service $ 64,262 $ 32,897 Consolidated Highlights Hardware 26,048 24,400 Professional service Total revenues, net 14,695 105,005 12,603 69,900 • 86% increase in gross margin from Q4 2023 Total gross
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 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Subscription Service Gross Margin Percentage 48.1% 51.6% 53.1% 55.3% 53.2% Add: Depreciation and amortization 16.9% 13.9% 13.1% 11.4% 11.3% Add: Stock-based compensation 0.3% 0.1% 0.2% 0
Slide 16: Non-GAAP Consolidated Gross Margin Percentage Reconciliation
Non-GAAP Consolidated Gross Margin Percentage Reconciliation 3 Months Ended Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Consolidated Gross Margin Percentage 34.6% 37.2% 41.0% 44.5% 42.9% Add: Depreciation and amortization 8.2% 7.9% 7.6% 7.1% 7.0% Add: Stock-based compensation 0.3% 0.2% 0.4% 0.2% 0.1% Add: Severan
Slide 17: Net Income (Loss) to Adjusted EBITDA Reconciliation
Net Income (Loss) to Adjusted EBITDA Reconciliation (in thousands) 3 Months Ended Q4'24 Q3'24 Q2'24 Q1'24 Q4'23 Net income (loss) $(21,057) $(19,832) $54,190 $(18,288) $(18,629) Discontinued operations (4,236) (832) (77,777) (2,078) (2,894) Net loss from continuing operations (25,293) (20,664) (23,5
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