Par Technology Corporation · NYSE:PAR
Par Technology — Q1 2022 Earnings Presentation
16 slides from Par Technology's earnings presentation, May 10, 2022
Slide 1: Q1 '22 Earnings Presentation
Q1 ‘22 Earnings Presentation May 10, 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: Q1 Financials
Q1 Financials Three Months Ended March 31 in thousands 2022 2021 Revenues, net: Product 25,073 18,556 Service 33,773 18,028 Contract 21,439 17,883 • Q1 2022 Revenue Reported-- $80.3 million Total revenues net $ 80,285 $ 54,467 Total gross margin 20,613 10,200 • 47% Increase from Q1 2021 Operating ex
Slide 4: ARR
ARR ARR (U$D ‘000,000) Total ARR grew 172% YoY from Q1 ’21 (aided by the Punchh Acquisition) • Punchh ARR increased 40% from Q1 last year (1) 94 88 • Brink POS ARR increased 35% from Q1 last year 83 77 • Data Central decreased 3% from Q1 last year 35 • Contracted ARR now totals $116M+ at end of Q1 2
Slide 5: ARR Growth Trajectory
ARR(1) Growth Trajectory ARR (1) (U$D ‘000,000) 94 88 34 19 14 2018 2019 2020 2021 Q1'22 (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) (%) 72% 70% 57% 53% 44% (3) 2018 2019 2020 2021 Q1'22 (1) Subscription Margins were $6.4M in 2018, $10.5M 2019, $15M in 2020, $44M in 2021, and $61M in Q1 2022 Annualized. (2) Adjusted Subscription Gros
Slide 7: Brink POS ARR
Brink POS ARR ARR (U$D ‘000,000) • Brink POS ARR increased 38.5% from Q1 2021 (1) 36 • Contracted ARR is $38.3M at end of Q1 2022 32 30 28 26 • Consistently low Churn ~ 3% annualized in Q1 2022 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 (1) Brink ARR also includes recurring payment processing services revenue, n
Slide 8: Brink POS Site Count
Brink POS Site Count Sit e Count (loc a t ions ‘000) • 40% increase of Active Sites from Q1 2021 • Activations in Q1 2022 – 1,244 14.9 15.8 16.9 • Active Sites now total ~ 16,945 12.1 13.2 • Q1 2022 Bookings # ~ 1,100 stores Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 8
Slide 9: Punchh ARR
Punchh ARR ARR (U$D ‘000,000) • Punchh ARR increased 40% from Q1 2021 • Contracted ARR is $68.3M at end of Q1 2022 47 50 40 44 36 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 9
Slide 10: Punchh Site Count
Punchh Site Count Sit e Count (loc a t ions ‘000) • 36% increase of Active Sites from Q1 2021 • 1,500+ stores went live in Q1 2022 53 56 59 46 48 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 10
Slide 11: Restaurant Segment Product Revenue
Restaurant Segment Product Revenue pr oduct revenue (U$D ‘000,000) • Product revenue increased 35% from Q1 ‘21 • Proving Value of Complete Tech Stack 32 • Difficult/Challenging Supply Chain Environment 30 24 25 19 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 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 Q1’22 (1) Annualized Total Restaurant / Retail Revenue $134 $123 $143 $210 $235 Non-Subscription Service Revenue (119) (105) (114) (147) (150) 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!