Par Technology Corporation · NYSE:PAR
Par Technology — Q3 2022 Earnings Presentation
17 slides from Par Technology's earnings presentation, Nov 9, 2022
Slide 1: Q3 '22 Earnings Presentation
Q3 ‘22 Earnings Presentation November 9, 2022 NYSE: PAR
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: Q3 '22 Financials
Q3 ‘22 Financials Three Months Ended September 30 in thousands 2022 2021 Revenues, net: Product 31,343 30,291 Service 37,010 29,530 Contract 24,414 18,039 • Q3 2022 Revenue Reported-- $92.8 million Total revenues net $ 92,767 $ 77,860 Total gross margin 21,408 18,214 Operating expenses • 19.1% Incre
Slide 4: ARR
ARR(1) ARR (U$D ‘000,000) Total ARR grew 29.2% YoY from Q3 ’21 • Guest Engagement ARR (includes Punchh + MENU) increased 31% from Q3 last year 106.6 98.6 94.4 88.2 Operator Solutions ARR (includes Brink POS and PAR Payment Businesses(2) 82.5 • increased 32% from Q3 last year • Back Office (Data Cent
Slide 5: ARR Growth Trajectory
ARR(1) Growth Trajectory ARR (U$D ‘000,000) 106.6 88 34 19 14 2018 2019 2020 2021 Q3'22 (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) Adjus t ed Subs cr ipt ion Gr os s Margins (1)(2) (%) 70% 68% 57% 53% 44% (3) 2018 2019 2020 2021 Q3'22 (1) Subscription Margins were $6.4M in 2018, $10.5M 2019, $15M in 2020, $44M in 2021, and $68M in Q3 2022 Annualized (2) Adjusted Subscription Gros
Slide 7: Operator Solutions ARR
Operator Solutions ARR – (Includes Brink POS + PAR Payments Business(2) ) ARR (U$D ‘000,000) • Operator Solutions ARR increased 32% from Q3 2021 38.9 • Consistently low Churn(1) ~ 4.8% annualized in Q3 2022 36 35 32 30 Q3'21 Q4'21 Q1'21 Q2'22 Q3'22 (1) See Appendix A – Key Performance Indicators (2)
Slide 8: Operator Solutions Active Sites
Operator Solutions Active Sites – Act i ve Sit e Count (loc a t ions ‘000) • 24% increase of Active Sites from Q3 2021 18.5 • Activations in Q3 2022 – 985 16.9 17.7 14.9 15.8 • Active Sites now total ~ 18,500+ • Q3 2022 Bookings # ~ 1,137 stores Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 8 See Appendix A – Key P
Slide 9: Guest Engagement ARR
Guest Engagement ARR – (Includes Punchh + MENU) ARR (U$D ‘000,000) • Guest Engagement ARR increased 31% from Q3 2021 53 57.5 47 50 44 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 9
Slide 10: Guest Engagement Active Sites
Guest Engagement Active Sites – (Includes Punchh + MENU) Act i ve Sit e Count loc a t ions ‘000) • 26% increase of Active Sites from Q3 2021 62 67.1 • 5,698 stores went live in Q3 2022 53 56 59 • Active Sites now total ~ 67,104 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 See Appendix A – Key Performance Indicator
Slide 11: Back Office Solutions ARR
Back Office Solutions ARR – (Includes Data Central) ARR (U$D ‘000,000) • Back Office Solutions ARR increased 12.3% from Q3 2021 10.2 • 370 New activations in Q3 2022 9.4 9.2 9.1 • Active Sites now total 6,668 8.7 Q3'21 Q4'21 Q1'21 Q2'22 Q3'22 11 See Appendix A – Key Performance Indicators
Slide 12: Restaurant/Retail Segment Product Revenue
Restaurant/Retail Segment Product Revenue pr oduct revenue (U$D ‘000,000) • Product revenue increased 3.4% from Q3 ‘21 • Proving Value of Complete Tech Stack 32 • Difficult/Challenging Supply Chain Environment 30 28 31 25 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 12
Slide 13: Appendix A
T™ 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 (1) 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
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: Appendix A – Key Performance Indicators
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 rep
Slide 17: Thank You!
T™ Thank You!