PAR - Earnings call transcript Q2 2020 | PAR Technology Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by, and welcome to Par Technology's Fiscal Year 2020 Second Quarter Financial Results. [Operator Instructions].

Now, it's my pleasure to turn the call to Chris Byrnes, Vice President of Business Development. Please go ahead.

Christopher Byrnes

Thank you, Carmen, and good morning. welcome second today quarter to for the like XXXX PAR's financial also you to all call I'd results review. of issued well disclosure our the SEC. Form complete our be to can The found X-K press furnished release in this as as morning, our related results in To press www.partech.com. at the release financial see details, please website access Investor of Relations our the the and and results News section call of time, certain take details today. I'd to regards this At care the like in to aware that and be recording on the available afternoon, should Participants the this we're it for call call playback. be will Also, worldwide conference be live we you included be are ask broadcasting so if our both and the conference any call via advised will in web, future the a use it question, recording. please of remind statements that includes on participants call based expectations to that management's available conference forward-looking data. currently this also I'd reflect like

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

Joining me CEO Bryan President, I'd by Q&A. portion remarks PAR's which PAR's be morning on call, this will and over Officer. turn Savneet? Singh; followed now general for call Chief Financial to the the formal is Menar, like Savneet call and Savneet the to of the

Savneet Singh

call you world workers flexibility today. show Thank customers. the to presented you, they like your hope those thoughts pandemic.I'd challenges all have have continued the their responsiveness our impacted and global to last are as good especially go for our I to serve safe. essential incredible thank on and our and PAR the The well at to months several Chris, everyone morning families and and to up out by

begin, I continuously our impact, Our our pandemic The clearly want optimistic COVID-XX It the a very PAR. environment a To the know company, has you whole. power core demonstrates a of the not ability let restaurant on industry operations keep challenging had in I'm our on but significant values. to the about running of only team is accomplishment. future to as drastic

focus PAR continue provide favorable strong in year, in that time. amazing within Fortunately, value adjust accomplishment. quickly customers, Even an a book was were for QSRs customers. Technology to we to performance online to able times quarter, of during able These quarter well share drive-thru, was Casual XXX most in Magic to difficult our position with XXX ordering were as and maintain customers restaurants this to modern we restaurant challenging Brink design, Fast market technology last to our and equipped and market Restaurant witnessed new operations and curbside that part restaurant, operations Due by the new pickup, and this to past quarter their take repeated along our with were segment of the customers delivery. second the

overarching important the very back touch of business. I aspects into step diving to on today, results wanted and Before our X

First, the incredibly Brink business resilient. is

annual to business Historically, as us expect COVID-XX. of is COVID-XX, we Brink statistic been churn true and business end out and unique. to is closed to fact July that our improve emerge most digit customer evidenced failure due -- stores rate were we the focus that the is the has that X% business restaurant enterprise Brink's it's only absolutely While, business, the This a continue are single a metric. by on I high of

restaurant premise shifts industry solution. technology previous underway from older in Second, relayed on I you to to dynamic during our based calls, server the the cloud-based

has does point. dramatically not that other wave X months takes hold, believe we The the accentuated once cloud As this transformation industries, a last with stop.

made As models with restaurants their who reality technology were trend digital agile traffic, to adopt to and emerging they to had proper thrive. restaurants are shift survive. to to Those business quickly of dealt the the diminished quickly investments able

will products. the can belief pickup that online that been is pulled pandemic survive will routing, enablement presence mobile and more. our in strong demand not the a not, digital likely forever, ordering, without much smart of delivery, last integrations third-party or of today. forward include for curbside Pandemic access, the years a have restaurant This not it's While there presence country with application native digital

and is in to Brink estimated XXX,XXX to that ARPUs yet a alone has product the United single averaging about, new new penetrate It's Of products, half That those PAR. been $X,XXX million as of majority have per categories it. acquisitions Historically, that the TAM of expanding our the business. units and point-of-sale to are market. company multibillion our large, dollar estimate a we is addressable States that payments addressable of we Third, product. restaurants the X we're of are market, there store. to the use launch But talked vast we

few coming to our been our upsell up ramp on we'll the Brink squarely engine. quarters focused quarters While development, begin last of over much resources have in the

we more restaurant enterprise products, While of rationalize tip on our deep today, to software businesses players average looking that responsibility, point-of-sale spend. a Restaurant amount recurring that the the we on for grow. not have take It's and estimate seeing upsold spends year desire very to our only has are Brink that vendors. from customer continues their penetrated significantly not $XX,XXX a are less. to base

face through continued strong beginning of features continue to the As will the additional foundation challenges more our the we believe lead leading to net be we retention. solidifies, Brink today. customer retention, many can able believe and be This customers of and we'll available dollar what industry solve our platform to make

hardware drive-thru peripherals. revenue. is and we defining is This investors the Before We metrics. Further, SaaS and service. a a service over recurring traditional disclosed is business. with Government report minute to recurring hand metrics point-of-sale to of track in combination product, we X our to of want along terminals, I buckets, spend services. and I services Service Contract XXX% X call performance. useful our contract revenue our encompasses inflation for think Bryan, with our offerings, hardware traditional Product contracts associate our products sales

measure ARR annualized First, a of at and of recurring Restaurant related. revenue is is Brink our This XXX% the quarter. end Magic the

when purchase store most committed a put, leading a indicator install. important bookings. are orders. a of that take view is have order. received bookings Simply conservative the Open signed backlog. on I we and believe signed Second, put metric order yet to Bookings a order the very We is this is only into we this restaurants number our of we have signed business. where bookings

usually is Churn annualized. revenue churn. lost the in recurring of Lastly, quarter, dollar value

continue to call now grow I QX we'll performance. over to As new Bryan turn continue our financial provide you breakouts to to of will additional metrics to the we review business, our performance. guide help our

Bryan Menar

Thank morning, quarter, million this you, everyone. results. $XX.X some take opportunity second We like provide details up Savneet, and reported QX our million reported good surrounding quarter now X% revenues to I additional for the would XXXX. from for $XX.X to of

the XXXX. of and compared of compared reported million million $X $X.X was related of to the the of Drive-Thru; an $X.X revenues XXXX spending revenue business Magic. $X.X the included and for QX QX Drive-Thru for benefit Core, acquisition Other XXXX million for the from sales for SureCheck. of year-over-year million, was driven for revenue $X.XX QX and for ISR; for by Magic Product a million R&D million acquisition. a Brink, tax and net Magic, $X.X consisted or Government, results line decrease Our consisted Brink Systems million for for $XX.X Restaurant/Retail $XX.X for million Mission increased June loss the was XX% by versus million amortization $X.X increase $X.X operations $XX.X $XX XXXX for $X.X share interest segment net product XXXX, revenue was for XXXX. XX% XXXX XXXX reported product QX for and increased Government to for Core; ISR; segment, unfavorable a quarter, increased $XX XXXX for business million for revenue down million in million by million primarily for Restaurant/Retail of to loss recorded for Operating for Restaurant share of and for ended $X.X million Systems loss Restaurant/Retail of were in XX, $X.X million loss related X from QX to driven for $X.X million, XXXX. for million from Mission includes $X QX Unfavorable line million $X.X XXXX $XX.X million per was Brink which million and $X.X revenue Restaurant X% expense, which million the performance $XX.X sales. QX sale per for million $XX.X or quarter QX the Notes. $X.XX Restaurant by or additional months

up compared was into reduced for driven or Magic of ended year. entered Our primarily hardware to segment the quarter in was for backlogs increase ended margin Brink of related absorption XX% In margin contracts in measures June book-to-bill Brink June million. the of of and million, unfavorable million and was million, during operating Contract primarily for QX to from an associated $X.X revenue quarter the revenue as XX-month mix to Restaurant trailing the XXXX. the with customers Service year XX% to $X Magic Restaurant/Retail XX% Brink the prior of $XX.X was the that Magic XXXX. XX.X% was million compared XX.X% X.Xx. the margin the divestment ended $X.X due the XXXX. compared $X.X $X.X XXXX and software to Product revenue the Service includes XXXX. X.X% stalling in and business quarter Service due The performance as beginning SureCheck. a for quarter quarter sales margin $X.X shift revenues. million XX.X% revenue overhead XX% Contract The XX, XX, a favorable product revenue this was The margin June $X.X XXXX. from ended The versus revenue, software million, million, the recurring the compared Restaurant XXXX. related in revenue refreshes costs was M&A in compared lower to recorded acquisition, the to initial June due product segment quarter A with as XX, addition to regards investment due June quarter software resulted quarter million first revenue product the GAAP $XXX was in for Restaurant includes quarter QX was Drive-Thru million by QX XX, and primarily revenue increased the quarter decrease service result was margin were reduction increase improvement product in for ended of XXXX QX XXXX. XX.X% growth acquisition Government to precautionary recurring business freight quarter $XX.X our in to of quarter, increase margin in activity to the was for the million. ISR. installations, our the to totaled of XXXX revenue product increased was their XX% $X.X up in recurring to down Government response with and for QX XXXX XX, XXXX. in primarily to service services, of in as line hardware from decrease contract reporting XX, the and COVID-XX. service for Drive-Thru or compared June of

in recently operating $X.X to additional Non-GAAP QX an was China/Singapore and million up $X.X development, Development up the Magic related Magic $XX was compensation capitalized SG&A million offset of was The Research $X.X $X.X matter. million Restaurant divestiture million and QX an by $X.X equity-based and for million, and by versus expenses. million Restaurant Brink in increased million $X.X driven investment from XXXX. Drive-Thru were XXXX versus for $X.X included expenses QX acquired primarily SG&A million SG&A software. Now, businesses. million, $X.X increase SG&A of and XXXX. Non-GAAP $X.X $X.X SureCheck increase up adjustments Driven versus expense by QX GAAP XXXX. million, partially of million development

capital sheet XXXX June improvement million, was balance in the March months $X.X needs. of increase investing XX, let's X was the X ended result working the cash Now XX, and million ended months in activities $X.X net an X in months for in to Cash for of XX, XXXX. reduction X versus ended used used $X.X months used June June on Cash provide flow operations the XXXX. information the cash million of The $XX.X cash for million company's compared was ended XXXX. position XX,

was period Restaurant/Retail XXXX offset by majority capitalized the was ended repurchase $XX.X of same months XXXX, investments XXXX, June XX, platforms XXXX, Notes. $XXX ended in XX, period with $X.X versus June X included operations the XXXX. compared million months June for months same costs ended infrastructure. ended XX, no continuing $X.X $XX.X XXXX, in activities issuance of Cash to from million XX, June million The material months There software associated a of the with we The IT the the included decrease non-software Notes. for a the XXXX X CapEx in of X the million to Notes, costs million our partially issuance versus XXXX. $XX the the down X XX, XXXX, XXXX for million in XXXX June provided X $X.X associated million During for in financing by segment ended due the the costs months

XX, I XXXX. As $X.X $X.X million over million December segment turn was the the the million were million million. down operations. for the December XXXX. XXXX, and Restaurant/Retail million, Savneet. broken would our and an to The decreased of of international receivable back $XX June call Accounts receivable balance XX, of to was Inventory between balance Xx $XX.X inventory of segment like of now $X.X from domestic XX, compared to Government increase $XX.X turns

Savneet Singh

Bryan. Thanks,

Now quarter. to the segment performance our in operating review

XXXX, Just our at year momentum. X significant quarters of had the ago beginning fiscal PAR

and poised historic in accelerating Brink store was Magic our our investment highs policies. achieved restaurant restaurants end all for industry's the solutions rate position. bookings million industries by were our and business in growth headwinds, and was above for were hard deliver such in segment all went XX% XX% and June period, recurring our in our changed work-from-home by and and all initiated, with increasing $XX.X market our ARR Brink hospitality in accelerators, growth XXXX the QX was place beyond as Restaurant Even at business revenues over growing challenging new in platform eliminated mid-March the technology was customers revenues Evidenced our and as Magic hit of restaurant quarantines for and for That to restaurant history. corporate strongest by the ARR Restaurant by software travel those same Our environment $X.X at in most the history. million. shelter recurring

We COVID live to to expect climb ARR up new as continue installations go and impacted stores reopen.

bookings as -- July, June, restaurant of for very At an restaurant. new restaurants stores. pleased improve impressive and spilled end commented an to we challenging worth into stands now XXX earlier, X,XXX business churn our churn, and even at early a recommended the whole. see I I deployed totaled Brink that the we As and environment it XX,XXX is XXX extremely opened the end in quarter our non-COVID with COVID backlog the of We in the operate customers rate and temporary X.X%. to new stores sites, order repeating of environment had the We and the industry had great as momentum at solution saw June using open are

are confident of new improve behind is worst balance for XXXX. should trajectory and We stores the us of our store the

our churn, X,XXX QX totaled quarter. of Magic totaled Magic. for Restaurant bookings Restaurant stores activations the After end installed in the XXX at stores at stands XXX and New base for

restrictions this opportunities, that second Our year, and as specific are depending been reduced. but the are not are impacted the pushed being into disruptions timing being of being overall restrictions landscape. concepts capital by purchases on and postponed, downturn core we half these lost the in being economic There confident is business of most COVID-XX and have

liquidity our cost As sheet we our initiatives communicated in aggressively and reduction with by in generation to QX we strong cash strengthen call, forward pushed balance as already an seen QX. position

this would down the down At quarter second beginning XX% more XX% sequentially principally we expected those of actions we product QX, delayed. purchases, dramatically as revenues of have hardware, severe, important but improve All couple in capital thought and are were than impact as -- better this year-over-year, of were been originally were critically how period. continue XXXX. and lower over excuse of and volumes The we quarters, me, expect do we not do a but product sequentially we we next endured expect conditions conditions expect difficult may proud the full in recovery the to

Now, Government to our review segment.

XXXX. by Our compared a the revenues in Government XX% to again solid business quarter, QX evidenced delivered increase

Our QX backlog of million. at was end $XXX the

Our Intel last increased behind revenues QX. quarter ISR the the from Solutions growth driving was in XX.X% as business year's a force

can seek to revenue work performance where and value-added that labor contract Intel direct our out in we continue contract contracts our specifically include and experience line. opportunities more Solutions leverage excellence, within We business decade-long high-tech

seen take experience for more window we need restaurants stronger faster team I'll a with a to pleased the Before following operator turn the the over to world. as like you thank I'd products, and leave Every their learn, know and than with competitors. no thoughts. pressing to the company. from believe and evolve be our us we rebound challenging our this, rescale, as customers, it their company. want will advantage upscale to I And first our through like members QX Q&A, Q&A. to that a moment for time our continued merge of with time back go We're partners we a call I helps go we never support. difficulty faced during the will We've for different. performance This stronger that isn't to period that this our for and that, and this a

Operator

Instructions]. [Operator

from Capital Scutt is with Partners. Andrew question first Our ROTH

Andrew Scutt

around revolves space white question conversion. first my the So

customers greater available? a have stores said of conditions of was guys July. Do kind you you'd your that closed of here, visibility about X% of were So into that Brink if some white now maybe capturing in business space improved

Savneet Singh

We're starting to.

think we think June, rebound and August I in had I in should saw continued July, a we no different. that be

as conversion actually, this will think of year a lot white result space rest A COVID. of and it, future of big as the our I be of for part XXXX. a

the with As customers that think, because our with of out, that partially rolled I their ours years far Brink. mentioned I had see demand without overachieved has that of and having many stores the call, many we these conversations of pulled data forward, Brink customers, we're at look on those

an we'll the next I conversations, years those the -- and in And years think few see so come. acceleration absolutely, there's that to and in next quarters

Andrew Scutt

second And then partner. of two question here, kind a

you in I So of guys major had COVID installs looking paused kind a earlier coming the restart to installs and customer know due quarter to a weeks. the national in that was

wondering restarted? X it's going timeframe And on? to install. normally, I if an I COVID Is know So X still for installs those weeks. still have lead-time just the about that was normal pandemic with then

Savneet Singh

Great question.

in say midst more and the able a think just as I stopped, in much So of valuable still pandemic. how and going would forward. we customers that result that's why pretty these stores to of incredible a the paused every sign it. Again, heat were highlighting number this customer of are was Business quarter demand the products to and so the of I

it's COVID again, -- reaction about versus roll -- to partially as we'll now term in more back it's are general, seen X I going comfortable cases long in while of they indicative customers to be were COVID in more a so, I continues state-by-state weeks with but high but And come to X careful that still see book-to-bill, they whole. and some and and a of But a don't think I high they declining, may States. stay of versus the of in board. And we'll them to how elongation out And do little different customers it's are the normal think basis cases the United our of think trend, a others some is states, where where not feel back speed. a that that started we've to spikes across although most have install it

Operator

from is Samana [Operator Jefferies. our next question Instructions]. with Samad And

Samad Samana

a just to but your letter appreciated question First, June. Savneet, investors thoughtful company We statement. maybe wanted I early a to in not and really the to --

last quarter-over-quarter, the I relative of nice, number compare think it there when up coming backlog us kind XQ? backlog that was was just a lot overall increase question of quarter compare provide help maybe of so backlog, it if was year, to from timing time as uncertainty, really really helpful wanted generally, especially the the about on there's think first to we But that to Maybe a about feedback. visibility and when business. the been what you backlog itself. XQ was That And into maybe just at helping difference? any online, XX% the over the

Savneet Singh

question. Good Yes.

-- on comment thank you So and letter. for the the

is of direct rollout. our result states in The demand many So stores. spiked. there said, stores April, the customer We but allow that most get in products businesses now, the out forget parts growth most restaurants in didn't physical and back listen, to to and respond June, May COVID. sort the around shutting backlog for non-employees order of solutions in then, need to of But down rules digital in strict of of sort had fast or them entering very we

We're make up, and our installation should in that because signed very starting to that start backlogs it's to very, restrictions and point removed out view lots backlog. are at which companies, us is, the looked see a orders the pick though, software backlog backlog. Having And so important of our help hence, rose of door. to the here, continue purchase limitation to attack of A those see getting backlog really to firm. is committed conservative so starting

commitment are basis. think looking little mentioned, on continue. the because I they'll And to the and But state-by-state last be our we'll customers the our very roll-offs, will feel the balance that bookings of I question, ourselves. a accelerate. like the to you relatively at we to high, see for customer XXXX, think roll given continue backlog in But, so And from confident ability bit like out, on said, I

states they slow in COVID may where slow out low. there, is down accelerate spiking, is up roll Given where COVID

given So it's virus. a little bit unpredictable the

But kind both expect continue And to for of dynamically. balance XXXX. I grow backlog of the so would to we're playing bookings and

Samad Samana

then far the -- have? now companies difficult that maybe future. into long guys in just normal at maybe confidence right it's And you look of about bookings if the know for the maybe quarter. -- we directional lot And I maybe, that talked stabilize change But, but what to change that to just about, can as a booking just returns you I of cover, forget the back to too view thought you the maybe a new Any get that term or sort X,XXX just in XXXX whatever that is? level as things any world

Savneet Singh

Yes.

have With that large strengthened many of our back think space. I -- think out. well beyond that has products, that I the case for both existing we rolled ways, get in halfway our white we we'll we're our its customers, all where many COVID confidence given go and customers -- large have is extreme not done level, even to to

so XX,XXX, XX,XXX that there's converted. And stores are under haven't MSA we that

because mobile think I of that see X/X store have halfway as to if have not In stores, rolled out. up customer customer, an made your application. you one on acceleration or we a the one where Brink, we we'll a example, were those access didn't big

versus that could those time a the app. restaurant Brink if like and app, that had really in And suffered so that mobile chain, didn't operator you have mobile in were the you access the COVID,

went well that beyond go mobile now, feel forward. I think through I me, our so bring extremely this excuse original confident challenge And because demand we'll -- digital that I this of saying, to targets need everyone

XXXX, need -- go whether COVID feel that. we'll -- confident --I know. in whatever guess, well supremely I how think timing it's larger, can't to feel that this perspective, be, it's But year a the we I or From will don't just has confident beyond I the now. thought we extremely be much because So product highlighted going it the we're I is

Samad Samana

bit. little maybe a And switching gears then

additions drive organization motion that or if in the change cross-sell how investing to Just us about think we some the to You order. ramping of mentioned and/or here that you'll cross-selling Can make efforts you'll cross-selling And need -- about the maybe thinking go-to-market of the you that? short maybe be the either sales understand partner in help to strategy? how you'll ramp should there?

Savneet Singh

Yes.

So and would where have started first customers through Restaurant would the been I acquisition offer our Restaurant over the we with Magic. -- it's has to say, to them I our of half now the way look Brink. Restaurant Magic, we come started of if pipeline expect go And -- of pipeline Magic, at

this more. of the their we've customers Very ability our seen buying companies on us that our the the so of And effectuate to to are asking take to -- fact tied decisions point-of-sale customers. much now

today, they're looking to comfortable And XX or different where products, change IT is really bit of so managing this for someone help transformation. guide a a from may have felt software them kind the that past historically, of restaurant XX companies

as But same that payments add sales but force today, then and of our we end is reps this to And add same with So will the with more we'll that today. Magic, business, with and we notion happen now product right we've quarter business, sales we to will to transactions at which next our growth force exact it we'll the products. sales And done there's processing adding Restaurant have specialists. ramp sales doubt the really start for in start distribute it continue exact to QX. no being tested have that

of our you'll to continue individual and perspective, see more I to think So in as come the add product support we infrastructure an lines. us sales add stores. team from The sort will specialists

individual And own as run so we product. every its upsell

will line sales force. product every that so And and specialist, product that helping have a in manager

that got rep to think I than of then if the sales traditional one So no specialist the per ERP products. sales businesses sort sales rep but where product look at would you've customer, through be were different surpasses you they push additional

Operator

our comes George question Craig-Hallum. Sutton next with And from

George Sutton

opportunity? Drive-Thru QSRs. exactly for attacking area talk you very about Savneet, important that Can -- increasingly how a important the is obviously, you're

Savneet Singh

Sure.

absolutely to And a acquisition the come Drive-Thru lucky I of customers' think was perspective. from So very minds. our timing our forefront

in seen Drive-Thru as very July growth June So in in we've May, significant well.

And restructured so our far to be more aggressive we have team there.

launching a set products the of this by new of be end will We year.

of end And and towards that, our think of so QX end QX, A And it's products up momentum I bit receiving the Drive-Thru we as revenue and the that us towards I of another end our so revenues continued QX. new interest Drive-Thru of think in a we will level. continue year, in and then within the will came launch of us. focus crammed that by the in lot quite take from

George Sutton

to of not value any benefits? versus Brink. that about quantification having where talk continue I'm there's of further that been curious if having stands? You Brink the And

Savneet Singh

by modern So was application But everything because store data. has quantify application. mobile can And think able and that, third-party able say every had customer average, be versus to a a be we was store by integrations or Brink a come customers had customer I suggested infrastructure that that us it we on different all and as is our back -- that had have strong a I don't that store that it's word to the one significant Brink to difference. have delivery from that an or might a online that ordering may was used driven launch very didn't it

significantly from have, modern those had that of I don't those we I is confidence have data, outperformed but think what a customers we technology that lot So our didn't. that think, categorical

George Sutton

your about process strategic brought we million, and where DARPA up win, sort mind Or did to it stand the option potential $XX pick closer in a of there? for there. that view? does move Any Lastly, a

Savneet Singh

mean, strategic We accounts, But Government a there's a term I past, think or Sure. long is potential services the taken these comment in which fit I acquisitions business we between -- business. point-of-sale not can't a on divestitures. and

And potentially so look that. think thing to we good will strength at I point. the business transaction look a we is as in have only the some a Government And to

Operator

BTIG. Palmer next comes Mark Our question from with

Mark Palmer

to going quarter. unveiled you the fourth as is especially you ramping that You you be those into? is launching third toward about were bit payment into of the along insofar little mentioned preparations product the the the into originally you're up into thought different quarter to what's the end environment gone Can than lines, talk one had the a launching that be set

Savneet Singh

Sure.

call much post-COVID So where like is earlier a service, table the us. dried large pay -- customers were launching, up more were very large we it, for on focused there significantly. opportunity Obviously, when market in spread table we at that

our so traditional, And customer target call base. Fast our Casual significantly now more we've to product adjusted it,

revenue confident online a quickly fairly working we everything future made pay associate that been And what sort at who tie we the the we not to Casual in. products so that we what ordering changes includes market? we've that no partner it's transaction? the longer confident that and that to of product. from So aren't the devices. facilitator very if payment we've hardware we -- But revamp from this Obviously, models. been do processing? table decided And into that can tie start And to people adjusted everything into and quick feel in -- products dining, very will with we're our How of coming on have we're risk Fast do with

Operator

Instructions]. [Operator

Our next is question Adam from ADW Capital. with Wyden

Adam Wyden

industry think of history challenging the restaurant don't period in a I more the mankind. has seen

I'm good amount. have units, also customers. to glad you able book you a glad not I'm guys install only but were decent So

train and questions. the have guys program terminals order. people you Toast install So I bigger is, about But past move over any know front? make you of able don't on -- first to little to couple bit send actually guys you guys solution talked has been people the to a a being that enter progress have Have you some have talked been that to units like able mail to forward I guys able the have restaurant. question being and YouTube. housekeeping in about with able questions And

Savneet Singh

We it Yes. call self-install.

and on made within to longer-term think are progress deals we will make customers today us And be the signed So the obviously It planned out transition quarters customers translation growing. for it's in rolling that a we ago. sense continue I that. we're

will that of risk be we've enterprise we're process, a once is vendors, challenge change do part sometimes with that And created customer, a a continue being so than of The it convincing self-install. to a doing. to to approved the what more set

term states for I I have bottleneck reopened, be progressing. long think So us. it's think a it And don't will as

Adam Wyden

But which it elaboration restaurants and in capture know My super of table the second you your question the has of mean, they service. percentage I or got all thinking the have you the low don't. payment. on CKE and base business unique to robust Five companies about targeted as Brink is initially seeing and you're like that space, and call Dairy kind an I you're has churn. and that forward, carryout drive-thru space. look huge made of I business going now white question -- position guess, QSRS, this Queen your Mark's Guys white where and ones the Arby's versus clearly, And a

also you, penetrated managing a are already people of cost somebody that payings terminals, the have pair with when guys expensive, peer guy with even solution I that are and in But constrained to XXX% you you I XXX% you're think basically if to high-k there's if you I that and at bunch are think saying, other from people XX. I just basically can entire revenues of XX with and giving this if payment, the walked I your AT&T at And there's of -- mean, the we I basically peer think have I mean, able don't get industries. a as constraint should that all payment. you've giving to thought or I'm and almost -- mean, think is a you that don't doing the and you X:X -- would finance it's new the that your some group, videos and your buying new you and I would know. rest. $XX $X,XXX it, for, a as Brink a given peer group, or with fire that your chomping a facilitator I iPhone $X,XXX that? free you can't or level, I and this got else. contract I I manning not payment device, to and people mask business. to peer got you've As an discounted I was terminals. a little free. on I a And a and they're that look mean, around month not see could have It convert me about out I to finance hardware mean, this I whose because CapEx all $X,XXX-$XX,XXX. -- the the payment look carryout a be and your that, mean, should that. basically know, that delivery mean, group rest would think or payment you this kind talk don't bit, MSRP I that this it that I'm of have you've can -- only and hardware look mean, I in step at lead SaaS. mean, I customer that have hardware I already edified bit your the be guys and balance bought I group playing with I ratio I sheet X can mean, it move mean I also started function

Savneet Singh

for and out doubt CapEx when I our create world go recurring or that time -- that, payments where of tight customers and what over budgets an offer is of push had my before contract, confident our spread that insecurity We elsewhere. we Brink solution in for offer there's Yes, was payments and oftentimes and that hardware high, by And same a so attractive feel them no ability they've very ability COVID is customers to than very, we'll it hardware mind in more want, is think are the to offer price I and them And them we agree. out. revenue than payments, us see at better that something to to COVID. their today -- them the taking

Adam Wyden

follow you of hardware we guys maybe and doing just already couple a look, we and industry payment obviously, people our -- of wins builds. been a you've hardware, mean, joint already to some of talk little that in kind have maybe progress closely, talk in from those to customer I even channel the industry. able understanding payment signed research you secure? of the made kind partners about It's Brink that and customers bit Can

Savneet Singh

We can't, until they're unfortunately released.

X things. to expect here. logos weeks our year. more signed bigger But now COVID plus chains absolutely months and contracts that second, require during attracted Our and quarter we've has of large say of than coming on we cooperation would with find One, joint before a say is customers them. is we've was The dozen what larger. But the conversations I been in pipeline last I'll very stores far it future the never and last quarter, had all sign

will, And XXXX, from is of the is pipeline, so lot if before is it that but you was for it and our than COVID. XXXX absolutely doesn't mean confidence term where and which XXXX, a means long anything for coming far something that now deeper

Adam Wyden

a question confident. twofer. you're like It super kind of Third sounds is

mean, you're industries, kind created in carryout turning you the saw you going the this rest. and of lot And manifest that higher itself Carvana a to and and Brink of bars to have and -- or like turning think a where we a that. the where is a permanently, industry. QSR and needs behavior kind in table largely smaller even close or labor restaurants has Wayfair, if You and a service think guys the to the And the you flow bucket. feel types comps point different is QSR, traffic delivery COVID all of economy, in this of higher I it creating seeing they're same efficiencies with point and lot where it's going this that's is mean, through of the restaurants, -- and consumer the X/X read nationally given I for I statistic change. I this in where might in of and

growing is sequential like churn to So hard Lightspeed, like flat me is is It stock", the XX% here, It's for higher which growth. it has sounds down slower. yet stock see guided up really why to "COVID this today.

I You're I like is It trade mean, kind more. for at obviously feel of at like do. XXx ARR. this of do fraction you guiding a that. how trades We

kind keeps about and you're same the have of can value to want to narrow of and other Clearly, back modules, year. you the you to willing last I arguably that buy Magic larger you what ones. I the kind guys guys that pushing market do it Restaurant me you talk to realization We every conversation everybody indicated are mean, to give executing. quarter, bought mean, you've that gap?

it mean, cost to you you do think don't you of of I your everybody? it. capital and what do do to give to can kind need back -- that, you what's have So

Savneet Singh

I So, at that in look buckets. listen, think I a few

any you our first we is, every to of The did. the sells part than I don't point-of-sale company execute. all other And ability to think companies industry, retail anyone plus type software to mentioned, think I had results relative better that

confident think all I call performing, on where equally And it, ability future so confident execute we're above those feel I our feel our extremely companies are. that future. others on And and that I the

execute. think to first we need I So

to that continue think this story. I before, about tell talked we've Second, but

our continue to expectation our more efforts transparent to numbers more be during COVID. people growing, -- mean. continue to on metrics is of we're to numbers, And on growth what make these our grow focusing think ARR really i.e., those that transparent I on matter, booking

will so happen. I And think that

it's a think M&A, in conversations sort bit believe have that of As are line. and you our upfront issue But M&A a and product And keep goal to stock price we it we've for us our strategic a there a been to very do relates ability first do requires a our I number to our between far that is, shares. execute. flywheel our ability reflective fits going ways honest transaction active and to of as said, that time. And to the all we

out out think things as we're the we that time what as there, we long themselves. much get we the execute, can results. as up word we should performing not there are do. to But and long that word exist, as else that I'm Second, this sure so I delivering at we get And catch

Adam Wyden

it's lever say think, issues. I the upgrades the mean, level, management old the look, R&D think mean, would product-focused or I the team balance able And -- think knowledge. I wherewithal great really maybe like because faster a basically even and conversion the move, guys was or that now historically, maybe the payments it's me was the what that, what was some I blessing and to I here to have Yes. been challenge without a I I -- able company your so is to on really called, you product where are your have lot But thing produce sheet. a you've whatever, product, forget do that and of done you you the a the solve didn't

ratio balance you've team. that able function it machine, incredible. be and would really all got -- great like the that company now now X:X a mean, it implement payment if that the would sheet I would that, you're I even a have without step to And and you now a group, peer think and think I accomplished So mean, a well-oiled great I of you've today

Savneet Singh

quarter, world, getting we look installs X even At of The before, say about. enterprise this obvious, was stream time, you revenue are, dreamed months listen, can of the in point-of-sale excited the cut have the just bookings done more we of our I hundreds which ever in that think which right? a haven't idea when mean, is sorry I that beginning, that also done in XX,XXX-ish to got able is, shocking And we to yes, restaurants addition, at of I've think, where best in of nothing go-to-market. penetrated this very mean us. just sell The just again. tip opportunity. said we thousands were a have was and mean the think, well, front I I it's are many touched one this I We I in But I said QX, out never as at product what the have and been we -- idea be for out. nothing we is have to haven't which begun I I the as QX I Yes, iceberg, day. And largest very same of about we we opportunity me. QX and I'll payments, closed that

tenure, and correct. almost of on and that During marketing. that I our been focused sales my has foundation on development, the mentioned focus X It's been getting product product,

there excuse to to as as have scale. not and sales, the execute And the can we means. any that start we have as the as we of marketing, in well expectation of engines So And team. we anybody will our management as focus mentioned, world, turn by an else taken -- I I COVID

a it continued are then X ago. dreamed drastically the think just they same that. and were the team would is And attitude months quality ago. the no excuse we Brink never take team what to a from is management from I of as different. that started, lastly, sort Our perspective, almost targets to hiring of XXX% add We -- And when the was year we have quality different I think we've of talent I a

and know for and over compound that I as so these compound do that compound expand, what means QX, know I don't things but we time. And

Adam Wyden

not and I'm look a knows in all technology -- and invest probably them that No, know, of you stocks like on call that's I as mean, call I stocks. Look, I I at when good. at when qualitatively, I look, things. look I like types think kind it this COVID of non-COVID everyone investor,

management opportunities, day, a we're of, I'm apartment restaurant Nautilus whether opportunity to table of sitting is I to companies, web Florida. going one and grab this or forefront No at does or And when hey, to remember, New company. or restaurant any when opportunity a COVID food. Carvana I put frame incrementally -- look to order how so exist other the Wayfair the going looked any used other and like, other service any is beneficiary. person go Because I that or and I sit PAR, at here at want look incremental in Grubhub I Florida. I my order relative whereas from to Brink right Peloton York, than Seamless times outside And at this mean, them moved and look at walk industry. I or it I in in be X of to other on I delivery?

And opposed is to or stuff at on People a that Wayfair, get got consumer buying just phone not to to so freaking their used like, stock. change. food going on like is behavior to stock. ordering is I they Amazon this PAR, This like to used COVID going Carvana. a as are I'm And COVID look

own deal restaurants. say you restaurants it But the -- You you. guys when sales of resources. is enterprise be Toast, I from mean this especially don't the with fighting teams direct like guys and have dollars money like COVID. like mean, it's I Queen a are because beneficiary guys I your you their it's Dairy one no units, mean, next These not got entire you they an want Inspire. into with lot old Toast and and I has companies I mean, Amazon, force. international X, Oracle mean footprints devoting perspective. that category and and are fired I Work enterprise the in not. domestically. and global look you being at shares X companies, decided and big hyperbolic all mind coming a their of sleepy NCR, are to international

what it, If and that I and King is if And with, deployment. Restaurant represents groups you international Popeyes. doing business Restaurant do deployment, CIO win CIO Brands, the who's also big international global, -- call have huge Burger a big RFP are Magic represent the they you for got domestic mean, is that these operations.

why my with kind trying head you, wall I'm just the against I'm of like, are with and to X--- understand So people banging square buying

Savneet Singh

people there, more And the two think thanks two Perfect, Adam. in We've questions we'll queue there. more get I Adam. got --

Operator

Our comes Hathaway Far View. from next question Brad with

Brad Hathaway

there earlier. you're want we And of a mean, and if seeing I'm seeing from Or from the you're wondering broadly guys? what retrenchment it activity ask be increased some curious more players is maybe what little kind I any saw legacy to has guess, Just you're seeing or on lighter? of environment. other Toast of continued obviously, intensity? some as kind to competitive I there. the competitive Just to the

Savneet Singh

Yes.

particularly, it the intensity think price. where I'd I before, on competitive is say, was lighter definitely

Relative price. the maintain nearly seen a was to I with fulfill a A in year for we're there that see Where so were our and of we've going win as legacy very help by ago, certainly to players, moment it's back to void think high. is don't those this much them say, ability the drastic think active or undercut haven't to companies, price. it way be the was extremely to difference don't I to competitive the that seen customers. for and frustrating anymore, trying I rates come you. them other that's our I one intensity coming And our way. people lot trying our

So has that this I mattered, moves I frank, think, think it making, today. certainly, competitive the we're about wouldn't we And feel helped. environment have the but be pretty to good

Brad Hathaway

here. really any cloud industry everyone legacy I to or from mean, see increased to say, cloud see and to we said, need Do seems restaurant that priority? make a kind of obviously, as guys oh, to that shift you've the effort you is development the really in future the

Savneet Singh

doubt I XX, can competitors years trust. legacy for of I but and I'll payments. a come do. it's anecdote see them doing is There's they've these excess base just charging these they XX have can't of many what being revitalize customers you And to to thing they revitalize the customer, it churning. a that think all happening. by well excuse -- see is. Many all no reputation about it. them the for way services, don't I cases, long not innovative, or they -- But for it's one one XX, think they know the can think support They and product, these not there that tough of -- so had the get give customers in changes the sort me, relatively in,

this I go problem also And had not, you've a don't so, I is I cloud want moved someone a care that listen, this and product if I think, trust I with to just to lot haven't or customers of with. saying,

I a lot wall, So do Brad. the harder. have not to they have which climb product climb to only Thanks trust the think is wall, they

Operator

comes Our from next question with Ishfaque & Faruk Sidoti Company.

Ishfaque Faruk

of A me. couple questions from

their after a seeing could tell interest First bit the you doing increased and how -- And that? much me Toast you getting Magic enterprise guys rid months, are of Restaurant for little are on last customer group, you on more Toast. about Brink ever with that maybe the maybe of ever all, happened? few Obviously, of since since

Savneet Singh

change So the I anything of than significant few I think in from any is think of more result we're seeing don't else. last a COVID that months, of any number our competitors. -- as customer a of the of interest world a result

But we're the Our often of providers. the Toast all more the that Also, not the of they're deal. come it are as of who than is legacy NCRs immense world than get company. to the -- not, respect rounds said have particularly we the almost It's and times, a as many compete competing we companies up. I always for that we small competitors aggressively have large larger with, a final most Oracle,

So don't by had but it's pipeline means, our a impact -- I helps. any it hasn't think drastic certainly on

Ishfaque Faruk

initially tough And of smaller you on restaurants pushing piece. ambitions in current with payments the from seeing you've your restaurant to focus But restaurants, times enterprise a planned? payments on your the in opportunity, what environment. the -- some schedule maybe going be little behind the of Are some industry you COVID smaller obviously, -- and your maybe would on the the some

Savneet Singh

of and year, there's the we products it's a go Ishfaque, on beginning schedule restaurants or -- spend hardware, because they're very table wanted option. after our to from channel much the in say cable but our the behind change selling as if changed. into A -- no high, robust go-to-market, we year, we for had or I'd absolutely question, are plans the upgrading very value offset they that beginning to and In started small they where So after their that's service happened are was of we payments. And we our schedule to where that we to can penetrate, very largest the service we and have the may that's $XX,XXX easiest an table CapEx prop restaurant hardware quickly offset. because the had they to focus. really COVID service can that, didn't market, is

team. get moves traditional we've think, think to go-to-market, now adjusted we an September on have more extremely business. And to our and I our focus Fast strong strong now So as I got, processing, we a Casual

did change product, changed only not we the we think team the I also there.

in will And than So starting but really having think very I, as this was -- doubt offsetting other start callers today our that continue that. hardware expect -- real the starting volumes February. have of There's in more highlighted QX. that CapEx I one quarter, in attractive absolutely, no it of nice we'll is

Operator

from is question Roth with Craig Capital. next Our Irwin

Craig Irwin

versus would does just uncertainty right customer is peak question some my last of be this mean, there maybe in peak might you us XXX gap the what the downside COVID? week? of a during the already update And to asked. pre-COVID of I Savneet, But working attribute was the over what number were peak been all compare that issue any single versus how capacity of has on upside? XX, days? this the installs? to that installs can Or installs the really is you base that Or your And now now? Most

Savneet Singh

So it's a great question.

I'd XX I'd from last April, May. say June, So to anywhere up of pick a installing, extremely look I were way installs. down. March, set weeks we is is I week in XX in go-lives And by at of shut the X to and it Started think Everything say low growing.

the as is today, so with date. not And it capacity align go-live so a our much it's on closely issue working to customers very

go more capacity to stores start ability our today, be hey, versus now tied having down, X,XXX work launching us saying, in So, much will to that our to constraint. get a backlog this in and customers our live state

COVID, stores customers. Florida, more COVID, why if example, there X,XXX you, -- said, would installs had hey, seen well With said, down. tell come I a a more be beyond it's gosh, easily. quarter so of little chain no things in we're because relatively was So we've we I a that's that we'd And tepid, no

still very, So it's bit very unpredictable, little trajectory a but is strong.

Craig Irwin

-- sort you same a July things up? seen bouncing things a behind have us the Have we of mentioned June. bit how of trended Or along levels? then tick in at is So little now. are

Savneet Singh

second that's Craig. So two we June, continued in big had up a Thank, the of July. pick very and -- weeks

Operator

back turn final today. his And to I our for for to Savneet call would Singh Q&A remarks. this the session concludes like

Savneet Singh

look joining forward to Thanks, you updating everybody, the for future. the in We call. near

Operator

and with thank you And conference. participating ladies we in for that, gentlemen, today's

You a may Have now disconnect. wonderful day.

PAR Technology (PAR) 7 Aug 202020 Q2 Earnings call transcript