Slide 1: Q2 '24 Earnings Presentation
partech.com Q2 ‘24 Earnings Presentation August 8, 2024 NYSE: PAR 1
Slide 2: Forward-Looking Statements
partech.com Forward-Looking Statements. 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 1933, as amended, and the Private Securities Litigation Reform Act of 1995. Forward
Slide 3: Our Journey … Thus Far
partech.com Our Journey … Thus Far ... 3 $192.2M Q2 2024
Slide 4: Building a Unified Experience
partech.com • 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 customer experience Building a Un
Slide 5: PAR's Success Will Be Driven by our Flywheel
partech.com PAR's Success Will Be Driven by our Flywheel 5
Slide 6: Financial Review Second Quarter 2024 Highlights
partech.com Financial Review Second Quarter 2024 Highlights 6
Slide 7: Q2 2024 Highlights
partech.com 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
Slide 8: Q2 2024 Revenue Breakout
partech.com Q2 2024 Revenue Breakout Revenue by Offering 25.7% 57.4% 16.8% Hardware Subscription Service Professional Service ARR by Subscription Product Line 43.8% 56.2% Operator Cloud Engagement Cloud 8
Slide 9: Strong Organic & Inorganic ARR Growth
partech.com Strong Organic & Inorganic ARR 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. 122.5 128.3 136.9 144.7 151.8 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 122.5 128.
Slide 10: Resilient ARR Growth Across Product Lines
partech.com Engagement Cloud 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. 60.9 62.2 63.8 107.2 107.9 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 77% Y/Y Growth Operator Cloud 61.6
Slide 11: Driving Margin Expansion
partech.com Driving Margin Expansion (1) Non-GAAP Subscription Service Gross Margin percentage and Non-GAAP Gross Margin percentage are Non-GAAP financial measures. Please see Appendix A for a detailed reconciliation to Subscription Service Gross Margin percentage and Gross Margin percentage (GAAP).
Slide 12: Q2 '24 Financials
partech.com Q2 ‘24 Financials Consolidated Highlights • 67% increase in gross margin from Q2 2023 • $7.9 million increase in Adjusted EBITDA(1) from Q2 2023 • $5.9 million increase in Adjusted EBITDA(1) from Q1 2024 Subscription Service Highlights • 57% increase in ARR from Q2 2023 • 48% increase in
Slide 13: Appendix A
partech.com Appendix A 13
Slide 14: Non-GAAP Subscription Service Gross Margin Percentage Reconciliation
partech.com 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% 0.1% 0.2% Add: Severance —% —% —% 0.1% —% Non-GAAP Subscri
Slide 15: Non-GAAP Gross Margin Percentage Reconciliation
partech.com 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-GAAP Gross Margin Percentage 36.1% 4
Slide 16: Net Income (Loss) to Adjusted EBITDA Reconciliation
partech.com (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 612 (7,785) 383 Interest expense, net 1,
Slide 17: Investment Thesis
partech.com 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 market need
Slide 18: Key Performance Indicator Definitions
partech.com • 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 calculate ARR
Slide 19: Thank You!
partech.com Thank You! 19