Par Technology Corporation · NYSE:PAR
Par Technology — Q2 2024 Earnings Presentation
19 slides from Par Technology's earnings presentation, Aug 8, 2024
Slide 1: Q2 '24 Earnings Presentation
Q2 ‘24 Earnings Presentation August 8, 2024 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 within the meaning of Section 21E of the Market, industry, and other data included in this presentation are from or based on our own Securities Exchange Act of 1934, as amended, Section 27A of
Slide 3: Our Journey … Thus Far
Our Journey … Thus Far ... $192.2M Q2 2024 partech.com 3
Slide 4: Building a Unified Experience... Leading To
Building a Unified Experience... Leading To • Unified technology platform offering integrated solutions and sophisticated data insights • Pairs with our state of the art hardware offerings for a complete tech stack • Supported by our comprehensive professional service offerings to drive a positive c
Slide 5: PAR's Success Will Be Driven by our Flywheel
PAR's Success Will Be Driven by our Flywheel partech.com 5
Slide 6: Financial Review: Second Quarter 2024 Highlights
Financial Review Second Quarter 2024 Highlights partech.com 6
Slide 7: Q2 2024 Highlights
Q2 2024 Highlights 1. Consistent delivery on strong organic ARR growth 2. Cross-sell traction creating meaningful revenue opportunity from existing and potential future whitespace 3. Strong visibility towards adjusted EBITDA break-even 4. Sale of PAR Government segment -> to a pure play foodservice
Slide 8: Q2 2024 Revenue Breakout
Q2 2024 Revenue Breakout partech.com 8
Slide 9: Strong Organic & Inorganic ARR Growth
Strong Organic & Inorganic ARR Growth ($'000,000) Organic ARR Total ARR 24% 57% Y/Y Growth Y/Y Growth Year-over-year metrics are for the quarter ended 6/30/2024 compared to the quarter ended 6/30/2023. Please see Appendix A — Key Performance Indicators for more information on ARR. partech.com 9
Slide 10: Resilient ARR Growth Across Product Lines
Resilient ARR Growth Across Product Lines ($'000,000) Operator Cloud Engagement Cloud 37% 77% Y/Y Growth Y/Y Growth Year-over-year metrics are for the quarter ended 6/30/2024 compared to the quarter ended 6/30/2023. Please see Appendix A — Key Performance Indicators for more information on ARR. part
Slide 11: Driving Margin Expansion
Driving Margin Expansion Non-GAAP Subscription Service Non-GAAP Gross Margin Gross Margin Percentage(1) Percentage(1) 550 Basis Point 1,320 Basis Point Margin Expansion Margin Expansion (1) Non-GAAP Subscription Service Gross Margin percentage and Non-GAAP Gross Margin percentage are Non-GAAP financ
Slide 12: Q2 '24 Financials
Q2 ‘24 Financials Three Months Ended June 30, (in thousands) 2024 2023 Revenues, net: Hardware $ 20,116 $ 26,390 Consolidated Highlights Subscription service 44,872 30,372 Professional service 13,162 12,767 Total revenues, net 78,150 69,529 • 67% increase in gross margin from Q2 2023 Total gross mar
Slide 13: Appendix A
Appendix A partech.com 13
Slide 14: Non-GAAP Subscription Service Gross Margin Percentage Reconciliation
Non-GAAP Subscription Service Gross Margin Percentage Reconciliation 3 Months Ended Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Subscription Service Gross Margin Percentage 43.3% 50.6% 48.1% 51.6% 53.1% Add: Depreciation and amortization 17.4% 18.4% 16.9% 13.9% 13.1% Add: Stock-based compensation 0.2% 0.4% 0.3% 0
Slide 15: Non-GAAP Gross Margin Percentage Reconciliation
Non-GAAP Gross Margin Percentage Reconciliation 3 Months Ended Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Gross Margin Percentage 27.6% 36.6% 34.6% 37.2% 41.0% Add: Depreciation and amortization 8.2% 8.2% 8.2% 7.9% 7.6% Add: Stock-based compensation 0.3% 0.4% 0.3% 0.2% 0.4% Add: Severance —% —% —% 0.3% 0.3% Non-
Slide 16: Net Income (Loss) to Adjusted EBITDA Reconciliation
Net Income (Loss) to Adjusted EBITDA Reconciliation (in thousands) 3 Months Ended Q2'24 Q1'24 Q2'23 Net income (loss) $54,190 $(18,288) $(19,702) Discontinued operations (77,777) (2,078) (2,137) Net loss from continuing operations (23,587) (20,366) (21,839) Provision for (benefit from) income taxes
Slide 17: 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 18: 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 19: Thank You!
Thank You! partech.com 19