PAR - Earnings call transcript Q3 2019 | PAR Technology Corporation

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Operator

Good afternoon, ladies and gentlemen, and welcome to the fiscal year 2019 third quarter financial results. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to turn the conference over to your host. Chris Byrnes, you may begin.

Chris Byrnes

Thank you, JP, and good afternoon, everyone. welcome Quarter to Financial to PAR's call like Third XXXX Results also you the today for I'd Review. as this The can complete SEC. as issued to be results related well afternoon found in X-K disclosure our press the of furnished in our our Form release Investor at the access www.partech.com. the and News section details, please the To and financial of release see press Relations our website

call like in afternoon. both for it time, web, I'd this live to future any be the regards of broadcasting so are Participants ask conference the the the this of call worldwide advised use details take we At recording. certain will that be this to via call in on the if you are the will should playback. aware care our Also, please it be recording a available and conference we question, and afternoon, call included be

statements I'd like management's participants conference on that expectations this to includes remind available that based reflect currently data. forward-looking call

events statements release projections in filings and are on related annual call However, actual statements conference this our in the safe to with to and information The and other the harbor to be subject SEC. relied uncertainties. subject may this forward-looking upon quarterly afternoon included earnings or results our future and

Menar, and me Financial Joining and CEO Officer. on the call PAR's Chief Bryan PAR's Savneet Singh; today President, is

the by of formal I'd now general portion for like be to Savneet? remarks Savneet call turn call, to Q&A. which the the over will followed

Savneet Singh

XXXX results. today thank for us quarter discuss afternoon, to our and everyone, Chris, third good you and Thanks, joining

improved technology solutions restaurant globally for our favorable clients In outcomes that to for in result with strategy products, the solutions third industry-leading execute continued in and will cloud as clients create We're opportunities begin beyond. off. on turn, we XXXX drive and, and our continue and our performance to business services we excited to our aggressively to experience quarter, making paying our business progress our XXXX to momentum We're it's business. the finish improving value out product and customer about and in deliver our

we have that expect to our to this existing are which I strategically we At top our announce expand reach of to am scale to detailing and addition, fuel In initiatives, today and growth pleased acquire clients. Restaurant walk exciting even how the through list, new with new further. we to restaurant eager Magic our plans

in in building for the providers out software are acquired million one PAR the technology We for consisting back payable We PAR's $XX and with office business stack stock a note million of cash, restaurants. $XX three $XX million $X million, leading of cloud years. over seller

with to acquire management, organizations differentiate our analytics. industry strategy Restaurant to technology Magic an customer Restaurant management, fit requirements a restaurant in and with technology midsized goal capabilities the enterprise the our complete the Headquartered within restaurant PAR and in with space. strong provides complex entire provider restaurants, reporting as is These align labor enterprise strategy to large in is experienced very enterprise Magic enterprise Tampa, for their with directly and along scheduling, back-office solutions Florida, with leader restaurant team restaurant Magic Restaurant Our well at industry. solutions solving expand food detailed space. inventory and

We larger-sized forward welcoming the strategy. an enable take to to will leading acquisition, gain team excellent and restaurant Restaurant team solutions. this to the the With bring with in look Magic step believe in understand restaurant onboard we acquisition I PAR. customers expect this to to our industry, to scale next selling growth us

Magic working is PAR significant quickly for there tremendous is company. -- Restaurant Restaurant Magic amount integrate our a active acquisition Restaurant their installed addition over of synergies a has business of the into this Magic, and ours. base X,XXX a with We're This shares customer and to is close restaurants.

expect We and advanced Restaurant million. Magic the $XX organizations $XX customer opportunities, excited Tier in be Magic as million XXXX will this combined conversations range penetrate. is about Brink currently of has to are year X confident that new Restaurant to Restaurant ARR the with restaurant We're solution Brink the accelerate Magic opportunities to end of several associated yet with in

Equally bookings early we're growth growth important to in customer the continuing see QX in QX. was seeing the in and we're

the we've for growth best our of breaking indicator -- to well that begin that This company bottlenecks one in over come. is half the through year, the the growth year, would all leading has in for is direct As technology said installs second of have the year. result bookings growth with a and struggled

As we to continue and to we become team continue expect to faster. more agile, scale grow our

of our Additionally, hardware provider Tier pipeline to into sale This enterprise for and to XXXX in out our solid their leading This the our beyond. quarter in the we legacy a review, sale before X,XXX signed leading first our customer have of drives builds validates restaurants. Brink third point recently again cloud marketplace all having restaurants. Brink in implement restaurants and confidence X once deploy of as point

$X.XX revenues year, down revenue in share year. This decline review company quarter in decrease business, the quarter last was revenue prior the and revenues reported our a due and the to million loss in last X.X% revenues quarter of from net GAAP quarter. to service afternoon, Now loss offsetting XX.X% year. third $XX.X a in with of compared compared third in and quarter. GAAP loss government third X% million of the associated the lower the third quarter $XX.X third year's net growing from quarter Partially primarily decrease. was $X.XX product the million million reported share to X.X% a per loss contract $X.X to $XX.X We per nearly of the last This increasing contract a

and quarter. basis, share per and The a last This a the million loss share our reported are in On $X.XX detailed in non-GAAP per we to non-GAAP non-GAAP loss compares $X.X $X.XX year. loss release. press million net net loss a adjustments of of $X a of

a over quarter's like now detailed would turn on financials. I more reporting for Bryan? to the the Bryan to call

Bryan Menar

Thank this details I third everyone. our additional results. surrounding to would to now you, quarter Savneet. take opportunity like afternoon, provide Good some

Product $XX.X the Service XX, XXXX same of period by ended primarily Brink revenue. XXXX, from third third X.X% installations, SaaS, offset attachment the offset XXXX, an related partially to revenues primarily million $XX.X million, the $XX.X quarter $XX.X were period the in same reported by hardware. revenues an were Product from $X.X by XXX% September hardware recorded increased increase partially $X.X in the increase to a million growth the revenues service million core X.X% quarter, the with million due of for Brink decrease for were in million for in decrease core same increase for of XXXX. from period in for a in an driven

decrease timing increase The includes and to is XXXX. a related million, in QX reported by XX.X% $X.X XX% decrease contraction all in million a million an solutions delays XXXX. same project the were period Brink recurring in to funding revenue, of the $X.X Service were quarter, for installations. third for in Contract revenues due million driven revenues management and service reduction primarily contract transitioning ISR of period deliveries $XX.X into $XX.X from of same from Brink's revenue XXXX. the

to In margin performance quarter. the regards for

period XXXX, in contract services. improved for primarily unfavorable solutions shift. same Government period in were SaaS quarter due product Mission favorable compared margins in margins lower XX% margins hardware compared and XX.X% to were Service quarter to in XX.X% due to margins the within quarter product and for in primarily Our to the margin for primarily were to contract XX.X% XXXX, recorded period to XXXX, mix the the for same due X.X% compared for XX.X% mix same the systems. ISR the

Non XX% were million for third for million to $X.X and to same from increase $X.X increased expenses operating sales expenses. in the China million for for in Now XX.X%. and expenses quarter investigation the development XXXX. and million third $X.X The Brink for investigation in period related an $X.X XXXX. development. driven same company Singapore an XXXX, third with for the million increased million $X.X the $X increase in QX XXXX associated of million marketing, by to for the of offices expenses software and of the included $X.X equity-based $X.X or million million SG&A period as SG&A in the in investments were in compared Brink the million Non-GAAP QX compensation. GAAP million quarter increase $X.X million SG&A SG&A in equity conduct increases million, adjustments compensation. Research increases addition, quarter, from $X.X $X of to XXXX $X.X internal addition to was up versus GAAP for quarter -- $X.X

year by first for in to the $X.X XXXX. to million X cash in period sheet used the used of variance first Cash The for in of is $XX.X million increase Now before position. $X.X the operating $X provide was by investing tax compared ended the cash on was and XXXX, losses. months million of in the an information nine operations for flow activities million for versus activities September company's XXXX. same balance XX, Cash used months nine driven this months

technology XX, XM's Communications million On portfolio. to broaden XXXX, $X of business assets company the cash in September restaurant acquired company's Systems for the Drive-Thru the

respectively, ended to included the capital XXXX. months million compared expenditures with Additional of in our $X.X implementation planning investing to X And enterprise $X September activities related and of XX, during $X.X investments system. million, in software months nine $X.X the primarily XXXX restaurant/retail resource million our costs the associated first million platforms for in

the increase net the all in of by $XX issuance outstanding payment activities same offset in million in provided nine the primarily driven cash of XXXX amounts related financing the the credit of Cash costs The Brink was period acquisition. was agreement, provided and by first repayment by the versus full XXXX. to proceeds for activities $X.X financing for final the months partially of million under by notes

to As both $X.X the XX, three $X.X receivable a million between of Restaurant/Retail XXXX, XXXX of balance days XXXX. the of segment Accounts XXXX. Inventory of of XX $X.X The of Restaurant/Retail XXXX. of September XX December XXXX of or to to from days X% XX compared Government domestic balance international for and increased from were broken the XX, million, The as million XXXX. of December $XX.X turns September segment $XX.X days was and down sales outstanding operations. December inventory as as XX days December increased as million is increased days $XX.X decrease days outstanding XX, receivable from times million of segment September Government sales million.

review to quarter. now to our would business performance turn call like I back Savneet the in the to

Savneet Singh

completed a from of $X.X year ago for an performance. increase total restaurants at our stores the cloud quarter, new XXX invoiced ARR XXXX. of $XX.X X,XXX Brink. $X.X ARR QX of now solution being and of at to PAR's restaurants Brink September as million, XXXX. as segment sequential review now Now XX. number XX, the from active end This leading over sites the off implementation XX% a of increase with total with we and October number built QX The million million is is In

quarter, XXX over by now averaged a the $XXX bookings new New quarter XX% month. subscription comfortably backlog rates ASP stands sites, order QX our and XXX in of from signed in monthly increase second totaled stores. at the per open customers sequential

going we now quarter can forward. book Importantly, stores have and feel our excess of X,XXX that that feel we bottlenecks broken in comfortable per through earlier we

than to to up stream as well integrated existing this offering of our we streams by important processing Hardware some are results. eager new restaurant is our and revenues be PAR we we operators. a an aggressively to as as Brink payment our QX will doubled our believe solutions processing solution, with But this Foodservice the users. for impact sell deployment It is be Services, ramp At Payment integrated now more revenue and expand the our recent time will take and solution. introduced PAR continues from Show, associated payment owners valued to and PAR as solution our restaurant to customers facilitator, part marketing as with brink revenue PAR Technology XXXX customers,

building remain throughout implementation plans, We velocity our current on and line laser-focused of our increasing sight accelerated in of XXXX. Brink has

is for an now will addressable industry, in of additional market Brink times. immediately their Restaurant table solution are which and organization two restaurants -- product service meet service We service rates We'll that penetrate by Brink businesses a more the introducing complexity our service. table will drive our in early table exciting plans version Magic, to detailed a complex. more growth to development require of investing Traditional as subscription are us. our segments be point and principally aggressive That table opportunity enhance higher sale XXXX, for

progression our convinced for We a natural I integrated software forward this offerings, is look progress. on updating are our you to and

hardware Now Communications XM's business recently our the of and to the business Drive-Thru closed review with We date. pleased and are services on business. to acquisition

Restaurant our new has be we relationship concepts In exceeded Starbucks, Wendy's, showcase These conversations and count regarding them. that portfolio an large relationships Tier for these opportunity a with. business to Brink us customer will Tier previously initial expectations. fact, large many organizations. Magic, can not high-level have the Burger We This other customers PAR the as current did and X King driving is to now, entire now with X ideal

bookings our are segments, restaurant with XXXX we accelerate our momentum For we to as ending implementations. look

Brink-Restaurant leveraging infrastructure accounts into transitioning opportunities objectives on path accelerated rapid predictable globally. operating include priorities value. additional business to is profits PAR combined financial Magic new our accomplishing achieve major XXXX, to growth objectives our offering, and shareholder now in of unique of the long-term enhancing PAR's our our In a the growth,

our to review Government segment. Now

of Our contract contracts the and $XXX of evidenced end of certain continues the in our backlog increase end ending to start-up million of awards, an $XXX new Government to from by the at timing at impacted million, by business be increase QX. the the QX

backlog We an significant have provide improved confidence solid this base for XXXX. will a

high-tech to with in direct in contract opportunities we contracts continue where our and business can include We expertise work revenue performance leverage Intel more excellence, contract specifically our labor line. solutions that industry-known value-added see

problems Our to solving deep complex innovation, continues government on our strong mission continued and passion our focused market reputation customers for be excellence. through experience, for

immediately recently that ERP with our As the live we fourth will This our capabilities execution feel to improve positive a operational quarter. as new company, we new begin this priorities to report in and impact I'm significantly happy went system system.

recently the heighten our Updating necessary all you on focus and on step line. strategy. as closed ensure platform divestiture resources an you is to our our we and the news relayed to to of restaurant quarter. are available business important last company our continue This execute We for SureCheck company's technology directed we on

the in closing, was an In forward third quarter transformation. step PAR's important

momentum Restaurant continue quick wallet proud our our our growth Payments said, Transformations never PAR easy, team's and software have the acquisition proud no and expand beginning We Magic and and in will Brink made are focus, team is our particularly our of the upcoming made, of do as transformation bookings have our team are proud reaccelerated restaurant. within The and business has date our to of That to business of exception. the I'm resiliency. of the grit progress and the so. has -- progress I'm to plans

I'll start now concludes over This and remarks, operator formal turn to our the call question-and-answer the to session. the

Operator

[Operator Instructions]

of line comes first Samad Jefferies. the Samana from question Your of

Anubhav Mehla

give -- behind have acquisition. I margins the of start on like you And the for about guess with off on strategy idea look talked the Anu and is it, A cash Restaurant some for forward? but from to guess the few us any This I questions. own? on Samad. just you on operations impact its what company growth this you going could Magic

Savneet Singh

Sure. Yes, absolutely.

are to XX% Magic somewhere expected million. is Restaurant Today, in feel or rate the -- that is XX% we end of ability opportunities, to sales software this grow OpEx hit XX% our growth. margins I'd say, And the confident growing sort XX% And to suggested, we've margins, business, growth operating If very product. to continue $X as year. anywhere So It's XX%. near there to business' be next high-quality near will to run margins our marketing. XX% always plow of pretty a we'll dependent back growth. and above by on of into gross from traditional the The

thing X%. exciting. The mention a software is from churn said, to great. I margin less that and also think is very now, traditional growth churn is so healthy is, forgot interesting they're is And I than And quite though, gross right one perspective, the margins, profile as the that we

high-quality very, business. So very a

Anubhav Mehla

then kind how could customers, you have you is -- overlaps. see together. customer Okay. And you you've worked talk there have how you your Great. an differs, like of overlap? look, Could that the -- guys common footprint base much just how some Restaurant they could about of I and If kind PAR explain Magic

Savneet Singh

Sure.

been we call are As little thousand overlap. we a after couple many I way. a And detailed we've our X,XXX of about where impressed Brink providers for the said, what's breakdown fantastic back-office And important that. for one with think those with and than I'd of we've they as have direct of highlight entire solution. here them been is the at them, say, a active sites, have But of with Magic with working time working overlap. more have to And operating a Restaurant years the least had

And history map having so our number is we probably deal. around of the which road that are in suggested, for they But and customers the this paved excitement not, shared a deal. of conversations I part are our

Anubhav Mehla

And integrated through think And into Okay. you're guess, when merits I -- two how have does now, kind when go-to-market kind but their of of of you you -- it changes but you delve acquisition, of you went could you the approach? it how together? how about talking do companies the of some the think

Savneet Singh

Sure.

always an platform. will open Brink be So

to for is what and/or and out always suggested found Magic realized get fit. other take a or the we the point any force Brink them or into Restaurant we're about them products of a time We be to the the have not And with nice restaurant, Restaurant at we've of to product conversations there. push over will changing products sale as But that our often that we go to solution, asked Magic customers matter. product to

some so also of system, they've a seen number upgraded updated our of we've point as the have largest sale of when we products. the And office and other at customers back

market And think so going we accelerate help together growth. will to

as marketing have sales and Restaurant footprint -- I a a a think And And company Magic we much limited has one. today. larger our and

we product. gets synergies and the our letting immediate Magic out world about know as there Restaurant expect the so team some And starts revenue

bag. another We we expect dissimilar not too except some now what in product there. our go-to-market our we have got is uplift today, But with that

And so two that our customer products. over acquisition now spread can be costs

Anubhav Mehla

mentioned already I And are working you've guys together. you guess

products of integrated kind these are together? So already

Savneet Singh

are. They

Anubhav Mehla

are. They

Okay.

So far there the isn't a huge ramp-up stack? on as as technology

Savneet Singh

that ramp-up I and would in sales the say run. Restaurant has been will incredibly marketing. be the Magic efficiently

And is lot relatively limited, our down a of most the And product for see innovation. so and of we'll the efforts on. sales we that's marketing think early room and there there's where then road,

most Our to we could excited is it the running the important up or products I opportunity with there's an office, think the road. two to the more next you're solutions. back see likely two create to exaggeration think say, within be And what And the down team most come the and important sale of point some wouldn't an between restaurant. very I two these

Anubhav Mehla

is you a Could deal? talk you your deal, how see -- like about what if have do are are general, this just post on Or few deal you a an Or Like appetite? portfolio sizable gaps M&A. still with in you more, like, done making major this now? about, acquisitions? you it like Just on thinking i.e. this On may. you in --

Savneet Singh

Listen, focus scaling still our up Brink. is main

expect share. we've As capturing and is That the and to we market some focus: again technology to bottlenecks, always that you main continue XXXX. as through accelerate able saw, been bookings throughout that we've footprint that broken

continue from last us building we'll through here, through expand customers, we But that our also no come as come expansion this that more the from through may portfolio. it great of to over you've with partnership year question our product for And may we come X M&A new program it did product. our is, hopes opportunity work our heard start product. products but also there's creating other And to may there's or backlog us as

But I'd to three and a our is see say there existing goal interesting we product. two for of lot opportunities out one, so further And M&A. scale

Anubhav Mehla

with? win Okay. the then And Who factors just the then drove that that talk large some you X client. some of on the talk hardware follow-up. you did the And said, I factors that side, could the win? Could hardware you have about you -- about of compete

Savneet Singh

Yes. clarification. And just a

customer a was what this call, is in a, we which we hardware a hardware example Brink or of our legacy long-time customer, that the happening portfolio. first business of to So that customer transitioned our now

of can space. against the I everybody we competed think in say sale point I

in the that four of or assume the you compete most, size firms three Given we really in everybody to the we're with can participate customer, tried that like there.

combined I was job level relationship time, Obviously, for And off our long-term built having best reasons. on importantly, think is a customer number this combination of and think on a service, respect We've trust. very what product we of many-year of was that with product a then good And a think for made and so for built the really possible. done them, a won most servicing of that I relationship we there trust, long won. there. a mutual the trust built

Anubhav Mehla

the core you into you us we like for do just far -- you XXXX? final together, think give like about the should that you idea organic some Okay. could will do of Like what think but be. going companies in as it just And business level how general, generally if the Brink Brink have as what question, now how put growth of

Savneet Singh

Yes.

see I acceleration. going to So you're think a continued

great almost track a bookings our X,XXX. future were installs, way to and quarter are this bookings So

continue to it next think I quarter XXXX. expand in all and will through

year. And in are this confident feel formal not accelerate year but so growth significantly And we're expect from pretty where today. we ability our guidance, be faster growth we to next we to providing than the

that. think just the I quarter's were of bookings beginning this

Operator

Adam [Operator from line of Wyden Instructions] comes Your the next of ADW question Capital.

Adam Wyden

Savneet, great job the on quarter.

shared brands heard recently, signed with many update some or large have pipeline actually of Brink little guys through either give new logos scuttlebutt you the are which can deals? on at a We've you on us booths piloting So with conferences. that of

I Church's Carl's Yogurtland, are and with Panda Magic, think some channel work. of you things kind Jr., were Express, seen we've all of through A&W, with Chicken, these King, Hardee's Restaurant our Burger

pipeline, of landscape? seeing Tier these pipeline landscape is one choosing of you the competitors the Q, some the customers bit platform actually Brink. in competitive are in your little I Can leave the Why up to can talk a And and also the enterprise Brink? with about you mean we Xs their sign talk about heard new logos?

Savneet Singh

the for Sure. product but customers amongst we I logos I wins competition. design from logos that day which the Brink, was appreciated we've can't talk the question, increased have win continued yet, community. the specific about These focus of on I'll any large and of or is to that hence, always built core workflow haven't those think your and disclosed one, enterprise Brink large why.

The reason is demand. I think we're seeing not some it's acceleration new that

for to access backlog say demand our been ability had it's actually development, so, to It a very always demand. large backlog was as the nearly haven't last side large relatively year on that infrastructure. there. aggressive I'd on a be of sales wanted think was I marketing we and the we because as we that or

out changes. lot which climbing of our And to aggressively of a of so led that, capital we've a with starting been lot raise, hiring,

penetrated. some in in much growth -- see we've this core, but not enterprise the the product and It's product also quarter, continue is are to But signed out new haven't the we itself. you'll built we that. continue as really win large was logos more the all already I we of because at had market, And we Brink signings, But acceleration that last like climb so fully differentiates not think one we of only for not that, it's that than to you'll yet. that see through

be years, I over XX continued be this thing to has have our advantage enterprise we're of deal that years. in for solution taking on in think come to XX the business for us there's of be idea a matters their partner, PAR trust. great and been we're that the is to to going And of the this here provider. really that wanting other another to customer, space customers to wanting that

have of we reputation so this And great service.

We go I'd have just, on this now for product, to our after last say reputation that unleashing we're we've where, had to actually year, and teams honestly, hold great the back.

Adam Wyden

Jefferies. this is a Got think, to from And I follow-up, question it. Anubhav's

larger the to Hut spoken like haven't of had go gone we've because want that look, else yet. they Tier to, -- they with functionality Brink, Pizza and they said, have Xs anyone with and the Some haven't

like will the pipeline? Salesforce.com your be $XX bit about to think of you mean could think it's what guys do end articles they or Magic Restaurant seeing know, about Can with back real and in a vertical, being little of Mark the a the lot ARR one one million Now your get at ARR, of more including next about for we of the I back you mean, not house. the mean you done talked talk year into terms payments look, talked in year? better, that it doing obviously, talk -- was of you organically. you're And math. appreciation has what cross-selling I a mean, Brink you with kind XXXX? with can think mean similar of as PAR if million in bit M&A I you the I talk little $XXX guys this and M&A grow things I But podcasts, to look of obviously, and synergies, different, Leonard at Constellation M&A medium at some But by just can I possible end the I I'm of about having could pipeline? you you seems customers. envelope close want

Savneet Singh

serve. for else, product a make all I'd to what as to how do some what market of of add So that customers? you is on the sight back serve is because, does a it really -- Brink, I customer that word our amongst we better? A but lot we And if on is me our focus of foundation time. we pipeline first, say we've for know, think we lost share ourselves And and it's the solution, this, it's brought hard which I competitive the think to underlying

Restaurant And made think would we customers' not so not Magic we if have did acquired it better. lives

And so you're investment cash little different I acquiring streams think a of flow. where business an than bit

about all to tell of restaurant the the would today. it opportunity is individual XX% you, expand in the restaurant. it's product point our talked industry, do in of serving an of about what And there's not we've I lot Here, a past. even And of we But sale the customers. spend

lot product, for a to mention more to horizon. restaurant, us lot partner to of products we not or build there's that all the room so acquire a the to whether around And be expand

of the think stack things becomes, entire the the restaurant entire that is as the one market restaurant is call moves underappreciated it, stack cloud, to virtual. this And I that about

expand. are of You ago absolutely to two needing could time. for that -- continue that years and will had the this market you a needed become continues There now, products couldn't long dream

And so I of think there's for opportunity a M&A. lot

table more with is us foremost, wouldn't we of could if first have growing I think there's a in think to is do just be and again, our expansion footprint. that we we for And opportunity obsessed priority that we our product. didn't And continue equation. of get build But Brink lot in part here stores. I We're to to think that. service

Adam Wyden

Okay.

need the say are kitchen, and payments time deck, up AUV, trying Just grow restaurants following stack all look and progresses obviously, to not going more is is on that. at cloud X,XXX kind they're going you're and mean as doing more I and think be to look, SaaS. of obviously, restaurants our to what the including

be is it Obviously, to and what going opportunistic. is X,XXX today. to so we're payments going grow is And

year. or of is discounted the a restaurant, basis kind into $X hardware obviously, giving different, on sort ROIC $X,XXX million XX a the it or points away the -- of basically of of entering been giving in net and in that seems down and have terms run some lot the a to of When away line service. your Maybe It table going their payment customers payments by lease but competitors -- each mean I into me of hardware. getting restaurant giving locking back we that's some earning contracts

You that -- incredible. you with to of the payments five pretty mean run payments even payments about you in it cash-on-cash that SaaS. your proliferate years, and returns doing pair of can I talk I out kind are maybe can $XX,XXX. maybe mean even strategy

on and get you start you $X,XXX cranking think the $X,XXX can SaaS get that? mean So up ARR. payments, you you really I and on how do about

Savneet Singh

a There's lot there.

I'd this. So say

business, think disadvantage. and payment done competitive something it's listen, a have I a getting long it's we ago into us time been the should

are We in it. now

for important couple it's think reasons. I a of

them. on, franchised giving great a it, It's first with the we are restaurants, a should very be in call for integrated the, particularly organizations The solutions business absolutely, customer it, to not obviously and or of better it's lot uplift acquisition us call is, downmarket for payment the restaurants. cost,

hardware. we lot upgrade to of now, of upfront is, gives if The it right a out your to second cost lower, flexibility we us our there's is can it CapEx you on part want the to -- how make Brink which customers roll

many but to, need always customers don't do. You

push we're that And payment restaurant able to help stream, by that locking in a CapEx. off

so customers table hardware for more it's do, go becoming market. payment we absolutely give upfront looking in just certain ours. service haven't gone of something partner free we types to offer can where effectively after the of us to after, particularly And a And we're flexibility it

us So flexibility competitors our that CapEx also chains I and stream about we're only very really gives more revenue gives for because it where not accretive fast-growing where it a deals, gives have haven't, but excited particularly some new think we been, us it some for matters. --

got service service. think And is On table on was... our Brink in hundreds the market the We've for stores early running new leadership table I Brink of identified today. service side, table

Adam Wyden

like of of correct? right? already, installed lot have Pixel you thousands -- mean, mostly service, table a Pixel's I

Savneet Singh

That's right.

we And had excited as feel so aren't think service high-quality table incredibly I pretty we from were. about we as thought that an we originally product far

accelerated so we've table development in And service.

we table you over time. from to have are in of table world product where be very very, there we contribution there meaningful expect convert in -- markets service Brink strong is And XXXX. there service as a that able to we should We opportunities think the suggested, because are

Adam Wyden

I bigger table And are mean could ridiculous for from we comparable some table we're paying talking people which there's bundle mean table obviously, more terminals. I AUVs Brink, a product. number mean, mean also, be restaurants. talk well you $XX,XXX to service including a not of correct? probably pricing some I into service or and But perspective, could the I for when charging talking I those you're mean, no? service, payments, mean, mean, I what multiples I you're thousands, people four-digit in the

Savneet Singh

Correct.

where are sales service, priced least two. today. a Usually, quick significantly fast the majority factor restaurants significant casual, at of higher So -- our of vast table are than service

Adam Wyden

At least a of but more. two, factor presumably

pipeline mean, lot been looks asking sending good, of like deal Or the hardware I little that's if our a like good about any I -- LinkedIn in Are people way, work, CapEx. people, is doing if get pipeline the company? been another have being I'd great. this at work is and so bottlenecks lot way big units? guys a hires said much channel a so making there standing larger and installing talked of you bit like messages more me you're is the a maybe PAR. new JV in we me some to there's I crazy. We've giving hiring of I and other and Okay, it terms what mean mean,

so a the look and you And these financing just have like of the you start lot businesses. look, can that sheet ARR, balance gross maybe -- and now companies

terms now imminent? of the your mean about accelerating really way and of got in $XX,XXX is stream the hardware installation you've that it and of kind more you how what restaurant small the of a I standing give SaaS. get You do you is units? scale, the Or payment in capital, think

Savneet Singh

And key lot continue a we're there? think to removed place. breakthrough. starting need we And we've talent. yet, investors will I dramatically to customers retain great of near see our a hire we're already but different when think we started high-quality we it do, we think will I those our our we talent the year, been in the scale. do the us How where for But very, to people to anywhere So bottlenecks. But We and get impressed. we where Are think I be? to from No. announced have ability to very continue haven't be attract will I be be impressed;

hurdle starting I we had believe see quarter. where our we throughout to why bookings at that this a release, this -- year and is We are point accelerating we have I that's think

going year be we they're will accelerate think XXXX to next quarter. confident big for really again a I feel us. And

quarter, to great lot we've still excited our I more And actually got more feel bottlenecks. us we're get and a But ways continuing a go, those opportunity talent, to ramp get bodies to find of help we talent. removed things have about every we So because more to we done.

anytime. So feel to apply free

Adam Wyden

got We some We've And you. got Lightspeed Thank CKE, we've some I probably you the group. three have of got We've issues, scale staff. it, companies, a about we've Restaurant But Queen. personnel. Look, related mean, capital, Magic and We've guys Dairy question. that major to major other discount I rest of now. some got of payments. right? Last and just I these governance say at got and was got related would signed X traded think guess, legacy of was logos. got Tier it great I the to probably you, and we've historically, mean, to We've

your -- cost I why be mean and you huge a a cost front ARR that of runway of in it in think got kind massive thought about at I your this feel massive, continue you're going going going I'm to there? I curious, a of thing and and trading processes But all I do the do do guys Magic buy forward matters of SaaS that I M&A. that cost of kind ARPU opportunity? you're narrowing just discount to is company, Restaurant we've additional know, going mean capital. of given mean deal, still capital I this you narrowing everyone to else, why is of higher path it's accretive. valuation extent to to I to you cost $XX like is? Is a you kind getting of Do a to gap? mean you it have capital. the million Obviously, kind to how to it's when need and think Government? don't mean a your want obviously, mean more, of terms selling wonderful guys

Savneet Singh

the the the in to we that we're probably space we're listen, aware assets competitors our of looking well we're buy importance cost and capital, the of to same buy. of Yes, the have, that given looking

a it the going and narrow of I short So started rectify very say, empowered, I'm wasn't where I disappointed We had we were in we think lot year, we've there's time. and a there, who come yet in I'd had, think really way long say were a long and in period way we situation we've to a a When got that money. we customers workforce didn't to energized, wasn't that. us. have And a

this quarter, close our a going you we're think be potential to think saw And might to valuation so us just as is accelerating be I And what I gap executing. ability bookings.

that the to I we will Magic, take of equals I prove care continue with stock and Restaurant out think these one if plus sign logos, accelerate one new we bookings, to continue we think three itself. price

Adam Wyden

of looks you look, kind forward It seeing capital allocate deals cross-selling. a Well, very it. creating good. great like to look excited I have while opportunity, that relevant Very the for

Operator

questions this I conference I remarks. to for back am turn like would at Savneet time. Singh the showing further no to closing

Savneet Singh

for to joining. forward all next you you Thank look We quarter. updating

Operator

concludes Ladies your and you conference. this gentlemen, for Thank participation. today's

may all You disconnect.

PAR Technology (PAR) 10 Nov 192019 Q3 Earnings call transcript