false000070882100007088212024-05-092024-05-09

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of report (Date of earliest event reported): May 9, 2024
New PAR Logo.jpg
PAR Technology Corporation
(Exact name of registrant as specified in its charter)
Delaware
1-09720
16-1434688
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)

PAR Technology Park, 8383 Seneca Turnpike, New Hartford, New York 13413-4991
(Address of principal executive offices)             (Zip Code)

Registrant's telephone number, including area code: (315) 738-0600

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common StockPARNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

                             Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02    Results of Operations and Financial Condition.

On May 9, 2024, PAR Technology Corporation (“Company”) issued a press release to report its financial results for the quarter ended March 31, 2024. A copy of the press release is attached to this current report on Form 8-K as Exhibit 99.1.

Item 7.01    Regulation FD Disclosure.

There will be a conference call at 9:00 a.m. (Eastern) on May 9, 2024, during which management will discuss the Company's financial results for the first quarter ended March 31, 2024. The earnings conference call will be webcast live. To access the webcast, please visit the PAR Technology Investor Relations website at www.partech.com/investor-relations/. A recording of the webcast will be available on this site after the event.

The Company's quarterly earnings presentation containing additional information for the quarter ended March 31, 2024 is attached to this current report on Form 8-K as Exhibit 99.2.

Item 9.01    Financial Statements and Exhibits.

(d) Exhibits.
Exhibit No.Exhibit Description
99.1
99.2
104Cover Page Interactive Data File (embedded within the Inline XBRL document)







SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

PAR TECHNOLOGY CORPORATION
(Registrant)
Date:May 9, 2024
/s/ Bryan A. Menar
Bryan A. Menar
Chief Financial Officer
(Principal Financial Officer)


Exhibit 99.1
newparlogoa.jpg            
FOR RELEASE:
CONTACT:
 New Hartford, NY, May 9, 2024
Christopher R. Byrnes (315) 738-0600 ext. 6226
cbyrnes@partech.com, www.partech.com


PAR TECHNOLOGY CORPORATION ANNOUNCES FIRST QUARTER 2024 RESULTS

•Annual Recurring Revenue (ARR)(1) grew to $185.7 million - total growth of 60.2% and organic growth of 24.8% from $115.9 million reported in Q1 '23

•Quarterly subscription service revenues increased 37.2% year-over-year from Q1 '23

•PAR acquired Stuzo, a digital engagement software provider to Convenience and Fuel Retailers (C-Stores), contributing $41.0 million in Q1 '24 ARR

•PAR entered into an agreement to acquire TASK, a global food service transaction platform offering international unified commerce solutions, which is expected to close in Q3 ’24 subject to the satisfaction or waiver of certain conditions.

New Hartford, NY - May 9, 2024 -- PAR Technology Corporation (NYSE: PAR) (“PAR Technology” or the “Company”) today announced its financial results for the first quarter ended March 31, 2024.

"We kicked off 2024 with momentum and are pleased to report that organic ARR growth has accelerated to 25% from the prior year first quarter,” said Savneet Singh, PAR Technology CEO. “The results evidence the continued demand for our products and our accelerated win rates. Our results will continue to improve as we consolidate Stuzo and later TASK and are pleased by the positive feedback we have received on both acquisitions from new and existing customers."

Summary of Fiscal 2024 First Quarter
•Revenues were reported at $105.5 million for the three months ended March 31, 2024, a 5.0% increase compared to $100.4 million for the same period in 2023.
•Net loss for the three months ended March 31, 2024 was $18.3 million, or $0.62 net loss per share, compared to a net loss of $15.9 million, or $0.58 net loss per share reported for the same period in 2023.
•EBITDA(1) for the three months ended March 31, 2024 was a loss of $17.1 million compared to a loss of $7.0 million for the same period in 2023.
•Adjusted EBITDA(1) for the three months ended March 31, 2024 was a loss of $7.2 million compared to an Adjusted EBITDA loss of $8.8 million for the same period in 2023.
•Adjusted net loss(1) for the three months ended March 31, 2024 was $10.8 million, or $0.36 adjusted diluted net loss per share(1), compared to an adjusted net loss of $12.7 million, or $0.46 adjusted diluted net loss per share, for the same period in 2023.

Reconciliations and descriptions of non-GAAP financial measures to corresponding GAAP financial measures are included in the tables at the end of this press release.
_______
(1) See “Key Performance Indicators and Non-GAAP Financial Measures” below.







1

Beginning with the first quarter of 2024, the Company's key performance indicators ARR and Active Sites(1) are presented as two subscription service product lines: Engagement Cloud (Punchh, Stuzo, and MENU) and Operator Cloud (Brink POS, PAR Payment Services, PAR Pay, and Data Central). Our subscription service product lines were adjusted to align with how management views our business after the Stuzo Acquisition.

Highlights of Engagement Cloud - First Quarter 2024(1):
•ARR at end of Q1 '24 totaled $107.2 million
•Active Sites as of March 31, 2024 totaled 92.7 thousand restaurants

Highlights of Operator Cloud - First Quarter 2024(1):

•ARR at end of Q1 '24 totaled $78.5 million
•Active Sites as of March 31, 2024 totaled 27.0 thousand restaurants

Earnings Conference Call.
There will be a conference call at 9:00 a.m. (Eastern) on May 9, 2024, during which management will discuss the Company's financial results for the first quarter ended March 31, 2024. The earnings conference call will be webcast live. To access the webcast, please visit the PAR Technology Investor Relations website at www.partech.com/investor-relations/. A recording of the webcast will be available on this site after the event.

About PAR Technology Corporation.

For more than 40 years, PAR Technology Corporation’s (NYSE Symbol: PAR) cutting-edge products and services have helped bold and passionate restaurant brands build lasting guest relationships. We are the partner enterprise restaurants rely on when they need to serve amazing moments from open to close, during the most hectic rush hours, and when the world forces them to adapt and overcome. More than 70,000 restaurants in more than 110 countries use PAR’s restaurant point-of-sale, customer loyalty and engagement, payments, omnichannel digital ordering and delivery, and back-office software solutions as well as industry leading hardware and drive-thru offerings. To learn more, visit partech.com or connect with us on LinkedIn, Twitter, Facebook, and Instagram. The Company's Environmental, Social, and Governance report can be found at https://www.partech.com/company/ESG.
_______
(1) See “Key Performance Indicators and Non-GAAP Financial Measures” below.



















2

Key Performance Indicators and Non-GAAP Financial Measures.
We monitor certain key performance indicators and non-GAAP financial measures in the evaluation and management of our business; certain key performance indicators and non-GAAP financial measures are provided in this press release because we believe they are useful in facilitating period-to-period comparisons of our business performance. Key performance indicators and non-GAAP financial measures do not reflect and should be viewed independently of our financial performance determined in accordance with GAAP. Key performance indicators and non-GAAP financial measures are not forecasts or indicators of future or expected results and should not have undue reliance placed upon them by investors.

Where non-GAAP financial measures are included in this press release, the most directly comparable GAAP financial measures and a detailed reconciliation between GAAP and non-GAAP financial measures is included in this press release under “Non-GAAP Financial Measures”.

Unless otherwise indicated, financial and operating data included in this press release is as of March 31, 2024.

As used in this press release,

“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 by annualizing the monthly subscription service revenue for all Active Sites as of the last day of each month for the respective reporting period.

“Active Sites” represent locations active on PAR’s subscription services as of the last day of the respective fiscal period.

Trademarks.

“PAR®,” “Brink POS®,” “Punchh®,” “MENUTM,” “Data Central®,” "Open Commerce®,” "PAR® Pay”, “PAR® Payment Services”, "StuzoTM," and other trademarks appearing in this press release belong to us.


















3

Forward-Looking Statements.
This press release 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-looking statements are not historical in nature, but rather are predictive of our future operations, financial condition, financial results, business strategies and prospects. Forward-looking statements are generally identified by words such as “believe,” “could”, “continue,” “expect,” “future”, “may,” “plan,” “should,” “soon to close,” “will,” and similar expressions. Forward-looking statements are based on management's current expectations and assumptions that are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause our actual results to differ materially from those expressed in or implied by forward-looking statements contained in this press release on our business, financial condition, and results of operations. Factors, risks, trends and uncertainties that could cause our actual results to differ materially from those expressed in or implied by forward-looking statements contained in this press release include, among others, our ability to successfully develop or acquire and transition new products and services and enhance existing products and services to meet evolving customer needs and respond to emerging technological trends, including artificial intelligence; unfavorable macroeconomic conditions, such as recession or slowed economic growth, fluctuating interest rates, inflation, and changes in consumer confidence and discretionary spending; the effects, costs and timing of any acquisitions, divestitures, and capital markets transactions; our ability to integrate acquisitions into our operations and the timing and costs associated therewith, including the acquisition of Stuzo Holdings, LLC; the closing of the acquisition of TASK Group Holdings Limited and the timing and costs thereof; the protection of our intellectual property; our ability to retain and add integration partners, and our success in acquiring and developing relevant technology for current, new, and potential customers for our service and product offerings; geopolitical events, including the effects of the Russia-Ukraine war, tensions with China and between China and Taiwan, the Israel-Hamas conflict and other hostilities in the Middle East; the competitive marketplace for talent and its impact on employee recruitment and retention; component shortages, inventory management, and/or manufacturing disruptions and logistics challenges; risks associated with our international operations; the effects of global pandemics, such as COVID-19, or other public health crises; our ability to maintain proper and effective internal control over financial reporting; changes in estimates and assumptions we make in connection with the preparation of our financial statements, in building our business and operational plans, and in executing our strategies; and the other factors, risks, trends and uncertainties discussed in our most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on the information available to us on the date hereof. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.


###
4

PAR TECHNOLOGY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except share amounts)

AssetsMarch 31, 2024December 31, 2023
Current assets:
Cash and cash equivalents$50,780 $37,369 
Cash held on behalf of customers12,558 10,170 
Short-term investments21,730 37,194 
Accounts receivable – net69,958 63,382 
Inventories25,054 23,594 
Other current assets14,205 8,890 
Total current assets194,285 180,599 
Property, plant and equipment – net15,356 15,755 
Goodwill619,632 489,654 
Intangible assets – net157,713 94,852 
Lease right-of-use assets3,627 4,083 
Other assets18,300 17,663 
Total Assets$1,008,913 $802,606 
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable$39,832 $29,808 
Accrued salaries and benefits14,264 19,141 
Accrued expenses11,153 10,443 
Customers payable12,558 10,170 
Lease liabilities – current portion1,201 1,366 
Customer deposits and deferred service revenue14,710 9,304 
Total current liabilities93,718 80,232 
Lease liabilities – net of current portion2,519 2,819 
Long-term debt378,155 377,647 
Deferred service revenue – noncurrent3,296 4,204 
Other long-term liabilities4,825 4,639 
Total liabilities482,513 469,541 
Shareholders’ equity:
Preferred stock, $0.02 par value, 1,000,000 shares authorized, none outstanding— — 
Common stock, $0.02 par value, 58,000,000 shares authorized, 35,439,115 and 29,386,234 shares issued, 33,973,906 and 28,029,915 outstanding at March 31, 2024 and December 31, 2023, respectively703 584 
Additional paid in capital844,210 625,154 
Accumulated deficit(293,244)(274,956)
Accumulated other comprehensive loss(3,653)(939)
Treasury stock, at cost, 1,465,209 shares and 1,356,319 shares at March 31, 2024 and December 31, 2023, respectively(21,616)(16,778)
Total shareholders’ equity526,400 333,065 
Total Liabilities and Shareholders’ Equity$1,008,913 $802,606 

See notes to unaudited interim condensed consolidated financial statements included in the Company's quarterly report on Form 10-Q for the quarter ended March 31, 2024 (the “Quarterly Report”).
5

PAR TECHNOLOGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share amounts)
Three Months Ended
March 31,
20242023
Revenues, net:
Hardware$18,226 $26,777 
Subscription service38,379 27,965 
Professional service13,468 13,842 
Contract35,424 31,853 
Total revenues, net105,497 100,437 
Costs of sales:
Hardware14,170 22,381 
Subscription service18,594 13,925 
Professional service11,251 11,366 
Contract32,919 29,572 
Total cost of sales76,934 77,244 
Gross margin28,563 23,193 
Operating expenses:
Sales and marketing10,926 9,398 
General and administrative25,608 18,080 
Research and development15,768 14,315 
Amortization of identifiable intangible assets932 464 
Adjustment to contingent consideration liability— (5,200)
Total operating expenses53,234 37,057 
Operating loss(24,671)(13,864)
Other income (expense), net306 (59)
Interest expense, net(1,708)(1,667)
Loss before benefit from (provision for) income taxes(26,073)(15,590)
Benefit from (provision for) income taxes7,785 (315)
Net loss$(18,288)$(15,905)
Net loss per share (basic and diluted)$(0.62)$(0.58)
Weighted average shares outstanding (basic and diluted)29,51627,344
See notes to unaudited interim condensed consolidated financial statements included in the Quarterly Report.





6

PAR TECHNOLOGY CORPORATION
SUPPLEMENTAL INFORMATION
(unaudited)

The following table sets forth certain unaudited supplemental financial data for the five trailing quarters indicated:

Segment Revenue by Product Line:
20242023
in thousandsQ1Q4Q3Q2Q1
Restaurant/Retail
Hardware$18,226 $24,400 $25,824 $26,390 $26,777 
Subscription service38,379 32,897 31,363 30,372 27,965 
Professional service13,468 12,603 11,514 12,767 13,842 
Total Restaurant/Retail$70,073 $69,900 $68,701 $69,529 $68,584 
Government
Mission systems$8,247 $8,174 $8,808 $9,218 $9,383 
Intelligence, surveillance, and reconnaissance solutions26,756 29,152 29,275 21,510 22,216 
Commercial software421 482 350 287 254 
Total Government$35,424 $37,808 $38,433 $31,015 $31,853 
Total Revenue$105,497 $107,708 $107,134 $100,544 $100,437 

Non-GAAP Financial Measures

The Company reports its financial results in accordance with GAAP. However, the non-GAAP financial measures set forth in the reconciliation tables below are provided because management uses these non-GAAP financial measures in evaluating the results of the Company's continuing operations and believes this information provides investors supplemental insight into underlying business trends and operating results. These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. While we believe that these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. In addition, these non-GAAP financial measures should be read in conjunction with the Company’s unaudited interim condensed consolidated financial statements prepared in accordance with GAAP.

Within this press release, the Company makes reference to EBITDA, adjusted EBITDA, adjusted net loss, and adjusted diluted net loss per share which are non-GAAP financial measures. EBITDA represents net loss before income taxes, interest expense, and depreciation and amortization. Adjusted EBITDA represents EBITDA as adjusted to exclude certain non-cash and non-recurring charges including stock-based compensation, transaction expenses, certain pending litigation expenses, and other non-recurring charges that may not be indicative of our financial performance; and adjusted net loss and adjusted diluted net loss per share represents the exclusion of amortization of acquired intangible assets, certain non-cash and non-recurring charges, including stock-based compensation, transaction expenses, certain pending litigation expenses, and other non-recurring charges that may not be indicative of our financial performance.

The Company is presenting adjusted EBITDA and adjusted net loss because we believe that these financial measures provide supplemental information that may be useful to investors in evaluating the Company's core business operating results and comparing such results to other similar companies. Management believes that adjusted EBITDA and adjusted net loss, when viewed with the Company's results of operations in accordance with GAAP and the reconciliations to the most directly comparable GAAP measures provided in the tables below, provide useful information about operating performance and period-over-period growth, and provide additional information that is useful for evaluating the operating performance of the Company's core business without regard to potential distortions. Management also believes that adjusted EBITDA provides investors with insight into factors and trends that could affect the Company's ongoing cash earnings, from which capital investments are made and debt is serviced.
7

The Company's results of operations are impacted by certain non-cash and non-recurring charges, including stock-based compensation, transaction related expenditures, and other non-recurring charges that may not be indicative of the Company’s financial performance. Management believes that adjusting its net loss and diluted net loss per share to remove non-recurring charges provides a useful perspective with respect to the Company's operating results and provides supplemental information to both management and investors by removing items that are difficult to predict and are often unanticipated.

EBITDA, adjusted EBITDA, adjusted net loss, and adjusted diluted net loss per share are not measures of financial performance or liquidity under GAAP and, accordingly, should not be considered as alternatives to net income (loss) or cash flow from operating activities as indicators of operating performance or liquidity. Also, these measures may not be comparable to similarly titled captions of other companies. The tables below provide reconciliations between net loss and EBITDA, adjusted EBITDA and adjusted net loss, as well as diluted net loss per share and adjusted diluted net loss per share.

The following tables set forth certain unaudited supplemental financial and other data for the periods indicated:
Three Months Ended March 31,
in thousands20242023
Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Net loss$(18,288)$(15,905)
(Benefit from) provision for income taxes(7,785)315 
Interest expense, net1,708 1,667 
Depreciation and amortization 7,226 6,933 
EBITDA$(17,139)$(6,990)
Stock-based compensation expense (1)4,410 3,055 
Contingent consideration (2)— (5,200)
Transaction costs (3)4,412 — 
Severance (4)1,434 253 
Other (income) expense, net (5)(306)59 
Adjusted EBITDA$(7,189)$(8,823)
1Adjustments reflect stock-based compensation expense of $4.4 million and $3.1 million for the three months ended March 31, 2024 and 2023, respectively.
2Adjustment reflects a non-cash reduction to the fair market value of the contingent consideration liability related to the acquisition of MENU Technologies AG in July 2022 (the "MENU Acquisition").
3Adjustment reflects non-recurring professional fees incurred in transaction due diligence, including acquisition costs associated with the Stuzo Acquisition and costs incurred with the planned acquisition of TASK.
4Adjustment reflects the severance included in cost of sales, sales and marketing expense, general and administrative expense, and research and development expense of $1.4 million and $0.3 million for the three months ended March 31, 2024 and 2023, respectively.
5Adjustment reflects foreign currency transaction gains and losses, rental income and losses, and other non-recurring expenses recorded in other (income) expense, net, in the accompanying statements of operations.


8

in thousands, except per share amountsThree Months Ended March 31,
Reconciliation of Net Loss/Diluted Net Loss per Share to Adjusted Net Loss/Adjusted Diluted Net Loss per Share:20242023
Net loss/diluted net loss per share$(18,288)$(0.62)$(15,905)$(0.58)
Benefit from income taxes (1)(8,105)(0.27)— — 
Non-cash interest expense (2)508 0.02 522 0.02 
Acquired intangible assets amortization (3)5,167 0.18 4,564 0.17 
Stock-based compensation expense (4)4,410 0.15 3,055 0.11 
Contingent consideration (5)— — (5,200)(0.19)
Transaction costs (6)4,412 0.15 — — 
Severance (7)1,434 0.05 253 0.01 
Other (income) expense, net (8)(306)(0.01)59 — 
Adjusted net loss/adjusted diluted net loss per share$(10,768)$(0.36)$(12,652)$(0.46)
Adjusted weighted average common shares outstanding29,516 27,344 
1Adjustment reflects a partial release of our deferred tax asset valuation allowance of $8.1 million resulting from the Stuzo Acquisition. The income tax effect of the below adjustments were not tax-effected due to the valuation allowance on all of our net deferred tax assets.
2
Adjustment reflects non-cash amortization of issuance costs related to the Company's long-term debt of $0.5 million and $0.5 million for the three months ended March 31, 2024 and 2023, respectively.
3Adjustment reflects amortization expense of acquired developed technology included within cost of sales of $4.3 million and $4.1 million for the three months ended March 31, 2024 and 2023, respectively; and amortization expense of acquired intangible assets of $0.9 million and $0.5 million for the three months ended March 31, 2024 and 2023, respectively.
4Adjustment reflects stock-based compensation expense of $4.4 million and $3.1 million for the three months ended March 31, 2024 and 2023, respectively.
5Adjustment reflects a non-cash reduction to the fair market value of the contingent consideration liability related to the MENU Acquisition.
6Adjustment reflects non-recurring professional fees incurred in transaction due diligence, including acquisition costs associated with the Stuzo Acquisition and costs incurred with the planned acquisition of TASK.
7Adjustment reflects the severance included in cost of sales, sales and marketing expense, general and administrative expense, and research and development expense of $1.4 million and $0.3 million for the three months ended March 31, 2024 and 2023, respectively.
8Adjustment reflects foreign currency transaction gains and losses, rental income and losses, and other non-recurring expenses recorded in other (income) expense, net, in the accompanying statements of operations.






9
partech.com Q1 ‘24 Earnings Presentation May 9, 2024 NYSE: PAR 1

 
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-looking statements are not historical in nature, but rather are predictive of our future operations, financial condition, financial results, business strategies and prospects. Forward-looking statements are generally identified by words such as “anticipate,” “believe,” “could”, “continue,” “estimate,” “may,” “opportunity,” “target”, “will,” and similar expressions. Forward-looking statements are based on management's current expectations and assumptions that are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause our actual results to differ materially from those expressed in or implied by forward-looking statements contained in this presentation about our business, financial condition, and results of operations. Factors, risks, trends and uncertainties that could cause our actual results to differ materially from those expressed in or implied by forward-looking statements contained in this presentation include, among others, our ability to successfully develop or acquire and transition new products and services and enhance existing products and services to meet evolving customer needs and respond to emerging technological trends, including artificial intelligence; unfavorable macroeconomic conditions, such as recession or slowed economic growth, fluctuating interest rates, inflation, and changes in consumer confidence and discretionary spending; the effects, costs and timing of any acquisitions, divestitures, and capital markets transactions; our ability to integrate acquisitions into our operations and the timing and costs associated therewith, including the acquisition of Stuzo Holdings, LLC; the closing of the acquisition of TASK Group Holdings Limited and the timing and costs thereof; the protection of our intellectual property; our ability to retain and add integration partners, and our success in acquiring and developing relevant technology for current, new, and potential customers for our service and product offerings; geopolitical events, including the effects of the Russia-Ukraine war, tensions with China and between China and Taiwan, the Israel-Hamas conflict and other hostilities in the Middle East; the competitive marketplace for talent and its impact on employee recruitment and retention; component shortages, inventory management, and/or manufacturing disruptions and logistics challenges; risks associated with our international operations; the effects of global pandemics, such as COVID-19, or other public health crises; our ability to maintain proper and effective internal control over financial reporting; changes in estimates and assumptions we make in connection with the preparation of our financial statements, in building our business and operational plans, and in executing our strategies; and the other factors, risks, trends and uncertainties discussed in our most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law. Industry and Market Data. Market, industry, and other data included in this presentation are from or based on our own internal good faith estimates and research, and on publicly available publications, research, surveys and studies conducted by third parties, which we believe are reliable, but have not independently verified. Similarly, while we believe our internal estimates and research are reliable, we have not independently verified our internal estimates or research. While we are not aware of any misstatements regarding any market, industry, or other data used by us or expressed in this presentation, such information, because it has not been verified or, by its nature - market surveys, estimates, projections or similar data, are inherently subject to uncertainties, and actual results may differ materially from the assumptions and circumstances reflected in this information. Key Performance Indicators and Non-GAAP Financial Measures.(1) We monitor certain key performance indicators and non-GAAP financial measures in the evaluation and management of our business; certain key performance indicators and non-GAAP financial measures are provided in this presentation as we believe they are useful in facilitating period-to-period comparisons of our business performance. Key performance indicators and non-GAAP financial measures do not reflect and should be viewed independently of our financial performance determined in accordance with GAAP. Key performance indicators and non-GAAP financial measures are not forecasts or indicators of future or expected results and should not have undue reliance placed upon them by investors. Where non-GAAP financial measures are included in this presentation, the most directly comparable GAAP financial measures and a detailed reconciliation between GAAP and non- GAAP financial measures is included in the Appendix to this presentation. Unless otherwise indicated, financial and operating data included in this presentation is as of March 31, 2024. Trademarks. “PAR®,” “Brink POS®,” “Punchh®,” “MENUTM,” “Data Central®,” "Open Commerce®,” "PAR® Pay”, “PAR® Payment Services”, "StuzoTM," and other trademarks identifying our products and services appearing in this presentation belong to us. This presentation may also contain trade names and trademarks of other companies. Our use of such other companies’ trade names or trademarks is not intended to imply any endorsement or sponsorship by these companies of us or our products or services. (1) See Appendix A for non-GAAP reconciliation and Key Performance Indicators 2

 
partech.com Our Journey … Thus Far ... $185.7M Q1 2024 3

 
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 Unified Experience 4

 
partech.com Financial Review First Quarter 2024 Highlights 5

 
partech.com Q1 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 profitability and beyond 4. Large and actionable sales pipeline across operator cloud products 5. Proven and repeatable M&A motion 6

 
partech.com Q1 2024 Revenue Breakout Revenue by Offering - R/R Segment 26.0% 54.8% 19.2% Hardware Subscription Service Professional Service ARR by Subscription Product Line 42.3% 57.7% Operator Cloud Engagement Cloud 7

 
partech.com Quarterly KPI Trends Year-over-year metrics are for the quarter ended 3/31/2024 compared to the quarter ended 3/31/2023. Please see Appendix A — Key Performance Indicators for more information on ARR. 115.9 122.5 128.3 136.9 144.7 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Organic 115.9 122.5 128.3 136.9 185.7 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Total Annual Recurring Revenue 8 Organic ARR ($‘000,000) 25% Y/Y Organic Growth Total ARR ($‘000,000) 60% Y/Y Total Growth

 
partech.com Quarterly KPI Trends Engagement Cloud ARR ($‘000,000) Year-over-year metrics are for the quarter ended 3/31/2024 compared to the quarter ended 3/31/2023. Please see Appendix A — Key Performance Indicators for more information on ARR. 59.4 60.9 62.2 63.8 66.2 41.0 Organic ARR Stuzo ARR Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 81% Y/Y Total Growth Operator Cloud ARR ($‘000,000) 56.5 61.6 66.1 73.1 78.5 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 39% Y/Y Growth Annual Recurring Revenue by Subscription Service Product Line 9 11% Y/Y Organic Growth 107.2

 
partech.com Annual KPI Trends (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). Subscription Service 10 Adjusted Subscription Service Gross Margin(1) 66% 73% 66% 66% 2021 2022 2023 Q1'24

 
partech.com Q1 ‘24 Financials Consolidated Highlights • 5% increase in revenue from Q1 2023 • 23% increase in gross margin from Q1 2023 Subscription Service Highlights • 60% increase in ARR from Q1 2023 • 37% increase in revenue from Q1 2023 Three Months Ended March 31, in thousands 2024 2023 Revenues, net: Hardware $ 18,226 $ 26,777 Subscription service 38,379 27,965 Professional service 13,468 13,842 Contract 35,424 31,853 Total revenues, net 105,497 100,437 Total gross margin 28,563 23,193 Operating expenses Sales and marketing 10,926 9,398 General and administrative 25,608 18,080 Research and development 15,768 14,315 Amort of identifiable intangible assets 932 464 Adjustment to contingent consideration liability — (5,200) Total operating expenses 53,234 37,057 Other income (expense), net 306 (59) Interest expense, net (1,708) (1,667) Loss before benefit from (provision for) income taxes (26,073) (15,590) Benefit from (provision for) income taxes 7,785 (315) Net loss (18,288) (15,905) Non-GAAP adjustments 7,520 3,253 Adjusted net loss (10,768) (12,652) Adjusted diluted net loss per share (0.36) (0.46) Weighted average shares outstanding 29,516 27,344 All amounts in thousands, except for Adjusted diluted net loss per share 11

 
partech.com Appendix A 12

 
partech.com ($'000,000), except % 12 Months Ended 3 Months Ended Dec 2021 Dec 2022 Dec 2023 Mar 2024 Subscription Service Revenue $63 $97 $123 $38 Subscription Service Gross Margin 24 50 59 20 Add back Amortization from Acquired and Internally Developed Technology included in Subscription Service Gross Margin 17 21 22 5 Adjusted Subscription Service Gross Margin $41 $71 $81 $25 Adjusted Subscription Service Gross Margin % 66% 73% 66% 66% May not sum/recalculate due to rounding. The presentation of this non-GAAP reconciliation reflects the bifurcation of service revenue between subscription service revenue and professional service revenue that was implemented in Q4 2022. Adjusted Subscription Gross Margin Non-GAAP Reconciliation 13

 
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 with a Unified Experience • Today technology is driving a wedge between restaurants and their guests • Brands are shifting to well integrated vendors and more targeted guest interactions • There is an opportunity to create an integrated solution with unified data that enables restaurants to have 1:1 relationship with their guests 3. ARR at scale with strong SaaS metrics • Through both organic and inorganic strategies, ARR has reached $185.7M with significant opportunity to expand within existing customers and win new business. 1) Source: Technomic Investment Thesis 14

 
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 by annualizing the monthly subscription service revenue for all Active Sites as of the last day of each month for the respective reporting period. • “Active Sites” represent locations active on PAR’s subscription services as of the last day of the respective fiscal period. • “Adjusted Subscription Gross Margin” is a non-GAAP financial measure for PAR’s gross margin of subscription service revenue excluding amortization of acquired and internally developed technology. • “Churn” reflects the negative change in Active Site count of PAR customers, for a specific period. Key Performance Indicators 15

 
partech.com Thank You! 16

 
v3.24.1.u1
Cover Page
May 09, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date May 09, 2024
Entity Registrant Name PAR Technology Corporation
Entity Incorporation, State or Country Code DE
Entity File Number 1-09720
Entity Tax Identification Number 16-1434688
Entity Address, Address Line One PAR Technology Park
Entity Address, Address Line Two 8383 Seneca Turnpike
Entity Address, City or Town New Hartford
Entity Address, State or Province NY
Entity Address, Postal Zip Code 13413-4991
City Area Code 315
Local Phone Number 738-0600
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock
Trading Symbol PAR
Security Exchange Name NYSE
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0000708821
PAR Technology (NYSE:PAR)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024 Click aqui para mais gráficos PAR Technology.
PAR Technology (NYSE:PAR)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024 Click aqui para mais gráficos PAR Technology.