Par Technology Corporation · NYSE:PAR
Par Technology — Q2 2022 Earnings Presentation
16 slides from Par Technology's earnings presentation, Aug 9, 2022
Slide 1: Q2 '22 Earnings Presentation
Q2 ‘22 Earnings Presentation August 9, 2022 NYSE: PAR
Slide 2: Forward-Looking Statements; Key Performance Indicators 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: Q2 Financials
Q2 Financials Three Months Ended June 30 in thousands 2022 2021 Revenues, net: Product 28,390 23,939 Service 35,781 27,185 • Q2 2022 Revenue Reported-- $85.1 million Contract 20,922 17,826 Total revenues net $ 85,093 $ 68,950 Total gross margin 21,121 15,103 • 23.4% Increase from Q2 2021 Operating e
Slide 4: ARR
ARR ARR (U$D ‘000,000) Total ARR grew 29% YoY from Q2 ’21 99 • Punchh ARR increased 32% from Q2 last year 94 88 83 77 • Brink POS ARR increased 31% from Q2 last year • Data Central Increased 5% from Q2 last year Q2'21 Q3'21 Q4'21 Q1'22 Q2'22
Slide 5: ARR Growth Trajectory
ARR(1) Growth Trajectory ARR (1) (U$D ‘000,000) 99 88 34 19 14 2018 2019 2020 2021 Q2'22 (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(1) Expanding Adjus t ed Subs cr ipt ion Gr os s Margins (1)(2) (%) 73% 70% 57% 53% 44% (3) 2018 2019 2020 2021 Q2'22 (1) Subscription Margins were $6.4M in 2018, $10.5M 2019, $15M in 2020, $44M in 2021, and $68M in Q2 2022 Annualized. (2) Adjusted Subscription Gros
Slide 7: Brink POS ARR
Brink POS ARR ARR (U$D ‘000,000) • Brink POS ARR increased 31% from Q2 2021 (1) 36 • Consistently low Churn ~ 4% annualized in Q2 2022 35 32 30 28 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 (1) Brink ARR also includes recurring payment processing services revenue, net of expenses. PAR charges a per-transaction f
Slide 8: Brink POS Site Count
Brink POS Site Count Sit e Count (loc a t ions ‘000) • 34% increase of Active Sites from Q2 2021 17.7 • Activations in Q2 2022 – 962 14.9 15.8 16.9 • Active Sites now total ~ 17,700+ 13.2 • Q2 2022 Bookings # ~ 950 stores Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 8
Slide 9: Punchh ARR
Punchh ARR ARR (U$D ‘000,000) • Punchh ARR increased 32% from Q2 2021 50 53 44 47 40 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 9
Slide 10: Punchh Site Count
Punchh Site Count Sit e Count (loc a t ions ‘000) • 29% increase of Active Sites from Q2 2021 62 • 3,500 stores went live in Q2 2022 53 56 59 48 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 10
Slide 11: Restaurant Segment Product Revenue
Restaurant Segment Product Revenue pr oduc t revenue (U$D ‘000,000) • Product revenue increased 18.6% from Q2 ‘21 • Proving Value of Complete Tech Stack 32 • Difficult/Challenging Supply Chain Environment 30 28 24 25 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 11
Slide 12: Appendix
T™ Appendix
Slide 13: 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 14: 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 15: Appendix A – Key Performance Metrics
Appendix A – Key Performance Metrics • “Annual Recurring Revenue”, or “ARR”, is the annualized revenue from Software a s 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
Slide 16: Thank You!
T™ Thank You!