Par Technology Corporation · NYSE:PAR
Par Technology — Q4 2023 Earnings Presentation
21 slides from Par Technology's earnings presentation, Feb 27, 2024
Slide 1: Q4 '23 Earnings Presentation
Q4 ‘23 Earnings Presentation February 27, 2024 NYSE: PAR partech.com
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: A little about us...
A little about us... partech.com
Slide 4: Mission: personalized experiences connecting people to brands
To enable personalized experiences that connect people to the brands, meals, and moments they love.
Slide 5: Our Journey … Thus Far ...
Our Journey … Thus Far ... $136.9M Q4 2023 partech.com
Slide 6: Building a Unified Experience
Building a Unified Experience • 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 experi
Slide 7: Financial Review
Financial Review Fourth Quarter 2023 Highlights partech.com
Slide 8: Q4 '23 Financials
Q4 ‘23 Financials Three Months Ended December 31 in thousands 2023 2022 Revenues, net: Hardware $ 24,400 $ 29,590 Subscription service 32,897 27,908 Consolidated Highlights Professional service 12,603 13,479 Contract 37,808 26,673 Total revenues, net 107,708 97,650 • 10% increase in revenue from Q4
Slide 9: Quarterly KPI Trends: Guest Engagement
Quarterly KPI Trends Guest Engagement (Punchh + MENU) ARR ($‘000,000) Active Sites (‘000) 8% 1% Y/Y Growth Y/Y Growth Year-over-year metrics are for the quarter ended 12/31/2023 compared to the quarter ended 12/31/2022. Please see Appendix A — Key Performance Indicators for more information on ARR a
Slide 10: Quarterly KPI Trends: Operator Solutions
Quarterly KPI Trends Operator Solutions (Brink POS + PAR Payment Services + PAR Pay) ARR ($‘000,000) Active Sites (‘000) 45% 19% Y/Y Growth Y/Y Growth Year-over-year metrics are for the quarter ended 12/31/2023 compared to the quarter ended 12/31/2022. Please see Appendix A — Key Performance Indicat
Slide 11: Quarterly KPI Trends: Back Office
Quarterly KPI Trends Back Office (Data Central) ARR ($‘000,000) Active Sites (‘000) 19% 10% Y/Y Growth Y/Y Growth Year-over-year metrics are for the quarter ended 12/31/2023 compared to the quarter ended 12/31/2022. Please see Appendix A — Key Performance Indicators for more information on ARR and A
Slide 12: Annual KPI Trends
Annual KPI Trends Subscription Service Adjusted Subscription ARR ($‘000,000) Service Gross Margin(1) 25% CAGR (2) (1) Adjusted Subscription Service Gross Margin is a non-GAAP financial measure. Please see Appendix A for a detailed reconciliation to Subscription Service Gross Margin (GAAP). (2) The l
Slide 13: Annual KPI Trends
Annual KPI Trends Effectively managing spend while absorbing strategic acquisitions Subscription Service S&M and R&D Expense as a % of ARR(1) • Of the 9% growth from 2021 to 2022, 6% is inorganic growth due to the Punchh acquisition (3% S&M and 3% R&D) • Included in the 63% for 2023, 8% is inorganic
Slide 14: Appendix A
Appendix A partech.com
Slide 15: Adjusted Subscription Gross Margin Non-GAAP Reconciliation
Adjusted Subscription Gross Margin Non-GAAP Reconciliation ($'000,000), except % 12 Months Ended Dec 2021 Dec 2022 Dec 2023 Subscription Service Revenue $63 $97 $123 Subscription Service Gross Margin 24 50 59 Add back Amortization from Acquired and Internally Developed 17 21 22 Technology included i
Slide 16: Adjusted Subscription Gross Margin Non-GAAP Reconciliation
Adjusted Subscription Gross Margin Non-GAAP Reconciliation ($'000,000), except % 3 Months Ended Dec 2022 Dec 2023 Subscription Service Revenue $28 $33 Subscription Service Gross Margin 15 16 Add back Amortization from Acquired and Internally Developed Technology included in Subscription Service 5 6
Slide 17: Subscription Service S&M Non-GAAP Reconciliation
Subscription Service S&M Non-GAAP Reconciliation ($'000,000), except % 12 Months Ended Dec 2021 Dec 2022 Dec 2023 ARR $88 $111 $137 Total S&M Expense 24 35 39 Less: Hardware S&M Expense (7) (8) (5) Subscription Service S&M Expense $18 $27 $33 Subscription Service S&M Expense as a % of ARR 20% 24% 24
Slide 18: Subscription Service R&D Non-GAAP Reconciliation
Subscription Service R&D Non-GAAP Reconciliation ($'000,000), except % 12 Months Ended Dec 2021 Dec 2022 Dec 2023 ARR $88 $111 $137 Total R&D Expense 35 49 58 Less: Hardware R&D Expense (4) (5) (5) Subscription Service R&D Expense $31 $44 $53 Subscription Service R&D Expense as a % of ARR 35% 40% 39
Slide 19: 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 20: 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, related software support, and transaction-based payment processing services. We calculate ARR by annualizing the monthly subscripti
Slide 21: Thank You!
Thank You! partech.com