PAR - Earnings call transcript Q4 2020 | PAR Technology Corporation

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Operator

Ladies and gentlemen thank you for standing by and welcome to the PAR Technology 2020 Fourth Quarter and Year-End Financial Results Review Conference Call. At this time, all participants are in a listen-only mode. After the speakers presentation there will be a question-and-answer session. [Operator Instructions] As a reminder, today’s conference call is being recorded. I would now like to turn the conference to your host Mr. of President Vice Byrnes, Business Development. Chris may you begin. Sir,

Chris Byrnes

www.partech.com. in results SEC. to financial News Thank also in to participants like Investor of also found our review later as webcast and they To press morning. Relations on business. and in the our our call and the access please as section year-end the our access in to X-K disclosure that have see Form call afternoon software you, to good should everyone. be deck financial and when our release access earnings to all issued website quarter for that the related XXXX to deck can I'd the The to afternoon, results at PAR's and business complete use logged of the [Valerie], slide on call I ensure this fourth presentation review. furnished details, to the momentum want Individuals welcome we'll better the you this press today have well our the communicate to the release today

the today. for recording the on are website as on we Participants conference available For web. call to the can we we the be regards will in this accessed call presentation on call of afternoon. At the the this and we're filed broadcasting details afternoon aware Also, via like an should included our certain take those Investor that of and worldwide care playback. I'd the conference call, be call it also attachment to be on page X-K just in dialing the the time, this

like our any a on advised, in to currently data. if forward-looking remind will this conference available call reflect that also the includes you expectations statements future and please live it conference management's recording. included question, I'd that based of be participants So ask be use both

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

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

Savneet Singh

hope and these Chris, and the during everyone good today. I and your healthy you, challenging call Thank times. afternoon on you are well to families

last and you challenges quarter, go economy presented XXXX our out a pandemic. global to communicated all and for the I impacted company thoughts as incredible those As whole to by the our global

XXXX, feel serve our only I customers. humble but As to look I on plan, hard that worked deliver not team our back how our

and customer the continuing focus with enter ended Our We best helped development note. history, product momentum high We year company's us bookings long-term return, XXXX the the in on the end a XXXX. strong heavily quarter my history, make which the product, tenure investments to sales has the set backlog foundation very rapid for a us This in in invest time continue to marketing. in and our first should QX. largest year the obsession, from strong our and growth for on with encouraged into

PAR of While is challenges these creating of. myriad challenges, well-positioned view the presented a advantage many to year we take of as that opportunities

ago is year-end. in year stronger was than million balance our position than it with financial sheet a $XXX on Our cash at more

want bit to a touch front later, our performance I on the highlight financials EBITDA on up in XXXX. we'll While

all. is As many at of PAR you by know, capital discipline a allocation owned

for the early into of drove our The shutdown the the on This decided a focus software most software, in of represented million. in at results almost in history. of our spend business weeks, growth. EBITDA reported for period Remarkable continued pandemic, $XX we crisis, investment came difficult investment around and our radically later all operating restaurants in XXXX investment realize the seven loss the our that full our the During to almost R&D struggles year. our our feat into our of when product changed you

strategic our positioned people. company early products the tightened Our to belts company to cash accelerate and sacrificing and ability burn on reduce the without regarding our investments

That Our models. customer with asset it produces. change. both center of dramatic opportunities through Technology the change thousands living their be the will and our of around greatest Restaurants and products client PAR is restaurants large using for operating future base that revenue and are diverse sales base globe in at that a currently represents dependable business stream services. and the

at change. building the question PAR restaurants into this that will purchased of platform over are to volume the lean no tremendously There's next the software by We decade. grow

an for net loss fourth net same million period or report growth XXXX was $X.XX review In or of or On Now the We million fourth million, the further $X.XX million compared to to numbers $X.X before $X.X per XXXX. QX, XXXX. all share GAAP increase of we $X.XX loss our in of quarter share, share adjusted net non-GAAP QX compared to an when XX.X% reported GAAP same basis, saw segments. in period of loss or to $X per $XX quarter a of million share, net revenues XXXX. also briefly in compared per $XX.X in Bryan of GAAP we the reported per loss revenue a across gives detail. Today of the $X.XX

the presentation, QX X Brink’s in to report you very of X,XXX pleased sequential I'm if our in QX. Now, performance from that record jump moving XXXX increase had we quarter, in QX. store new snapshot bookings Slide XX% to the business and a to XX% improvement a the you'll see of a performance, in

and highest truly dramatic number orders demand and the Brink velocity this quarter history were of sale think in any highlights product. QX of other than the Brink point more our the of momentum for sign a I Bookings metric demonstrates in our offering. software cloud

As [of the million,] reported XX% shows, slide a last the we XX.X same in increase year. ARR quarter

down, acceleration to stores we as should to normalize expect begin activations, in our slow continues the As open our stores accelerate to differently, alongside our and Said an bookings. open see pace. to our ARR as activation traditional pandemic

a possible. stores work Slide sequence to below activations customers to proud XX% X% in the XXXX, impacted the can and ensure XX X, is spike the customer and our $XX.X metrics have To our date, at to restaurant signed has is increase store in the strong Slide to as low Magic our was $X.X at work as ARR. in or rate back of advance in to X regarding continue backlog stickiness XX,XXX we enterprise QX. magic COVID-related new rate quarter very quarter, remarkable and now business. open for to and the exceeding installed testament the annualized the impact seamless with minimal we during five the overall our safety] I'm was million. at has you count at to Brink-related ARR been ARR stores. Slide to you see the XXX, base quarter with installed year, software of in as revenues churn in improvement begin closures from the a the stores a our should with XXXX, assist Slide consistently is low the hardware QX, implementation protocols report now improves QX are COVID set in reported X,XXX and X,XXX of yet of churn end were our last pandemic to very entering we totaling out can help last and had a Bookings reported fifth stores. ARR open, that million COVID-related acceleration [health an a QX, signs and our X, X pandemic. see customers the our current and and affected X% Brink Again, that our lose If quarters continue down. and continue schedules, the in grow this being of accomplishment of team customers side see source to that X,XXX. approximate waterfall strength in year. a positive Combined restaurant backlog their offerings backlog X of the In Slide for increase churn QX book-to-bill online to in our over foundation you QX and magic an consecutive shows end These with customers. be X our installed our of On and reported of gives XXX to now of stores X% annual due in of infections customers. Slide a Brink inspiring strength shows Restaurant stores was yet QX. on the have that these million for bring end as we'll with QX. along the We'll On we We enhanced increase. XX% over churn $X.X This active get we'll

and complete services the software, provides of to capability our demand hardware, customers. robust continue see and solution PAR the We for it

encouraged to our We by look share and continued our are strong market consistently. performance expand

quarter through COVID point review communications X% by increased difficult the hardware and business well from Product XXXX, platform has our the quickly is of to product and our in Now, environment. been that very in a and during drive revenues performing business. QX quarter, sale

pleased briefly sales to is earlier, capital to product be performance I'm in customers. very-challenged environment and performance a this mentioned spend to As short our adopted QX remarkable. continues solution by of nothing see the number offerings I and in complete deliver from our integrator

solid the compared our XXXX. government to by quarter, QX in revenues, delivered our government business review to Now a evidenced X.X% increase segment,

the Our was December QX contract XXXX. million of at end XX, backlog as $XXX of

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

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

are our growth disparate out locking the different on digital dozens of XXXX. in restaurants Restaurants takeaways from the suffer of to the and siloed to for and looking a work. products, some transformation. make rapid handle modularity solution company Now platform coming Today,

payment the Services, processing that Payment building introduce continues We PAR all-in-one new in are marketplace. platform. solution our to connected

PAR offset we over fantastic revenue sheet All driver to very platform. software and a rich as [stick advantage initiative, increase Services function Payment risk growth API allow is company. we feature the paying Although a a are rates, costs. PAR. gives that be our value million confident and average rates operators acquisitions. products intend future harbor our ability almost we the M&A last us change our to subscription software This be give early PAR and time build-out will data the for I'm With XXX been will two customer. make additional to to of partners this have opportunity will unique here] active to us Brink are in the angle long-term adding of streamlined our on month, this is and of To the space with an years in focus the our period times. our for strengthened to recap, process consistent In balance continue take set

products, dramatically. Our have culture team, business, and our most our our importantly changed

energized now to the restaurant global have hundreds boundaries environment an ever and will stage products, on strongly, ready feel acquired define sound our look with and of than and our pandemic, and invested new talented We future a added has built have further in I businesses, history]. the the employees, We've our [storied company created which our set before. like. pushed withstood feel is

has gap. the the game and long creating technology bridge sum too that We're to zero changes for a we at between guests. foundation PAR a For confident wedge made been them restaurants, their set

our PAR As pandemic. then turn for employees, I'll partners Bryan? times QX to our And to hard call for customers details always, over achieve more and I'd success that, the of during such their extraordinary questions. commitment and numbers like our and with the to helping your on business us take work and Bryan thank challenging these

Bryan Menar

reported afternoon and quarter increase revenue in Product Savneet of X.X good everyone. year. the you, or XX.X prior million million X% the million, Thank was XX.X in an in the

million product the the sales. increase quarter, drive-through X.X driven was hardware of During a by in primarily increase revenue

in X.X revenues, reported from of associated the or million from associated these or million X.X reported Additionally, of versus a was service prior million, of our includes in to hardware recurrent the prior compared traditional X.X of of was noting quarter fourth of an POS XX% was the or total its Tier of from recurring as significant, government the from fourth Service increase ISR million of December XX% XXXX, X% the contributed of that in an software-related The revenue services or expand XX.X XX% momentum service contracts million million decreased streams over prior software POS with total, as in which support related contracts. in customers. of million in service revenue revenue increase reported increase hardware company value-add reported subcontract XX% quarter. software XX.X streams backlog magic service the of increase The million our increase the year, revenue and XX% year million the as revenue and of both revenues. XXXX. a revenue. revenue year XX. noting continues XXXX, as approximately company XXX hardware our deployments In continues software Contract contracts, of XX.X Offsetting an and to subscription a QX business Of in restaurant deployment to recurring million XX.X be increased is of quarter. revenue million Restaurant result fourth the compared to Contract or the million X.X gain or to X.X acquisition. our XX.X Brink the including million XX.X backlog comprised as QX at XX.X Brink includes to X.X continues increases million, with revenue Magic, X base,

million This X.X% driven of service to Product primarily during margins. result the to XX.X% margin million for product margins the compared low credits, Drive in disposable X.X in XXXX. XX% million level turning of line, was of was margins for X.X quarter Communications X.X in quarter of XX.X% and million adjustments, call a acquisition inventory related in assets service last Thru Thru Service acquisition gross to of The We versus product XXXX. year. our of assets to X.X quarter of fourth in inventory Drive of the was reported related by for decline Communications disposal center. QX profitability Now, the XX% the QX the unusually of line. investment reported inventory decline was the increased service

for in was Systems historical quarter through decrease compared The reported and as have service was Government to been acquired million increase sales, rate the and increase line or more margins of was million increase an support XX.X R&D million up business million Restaurant impacted for X.X driven with X.X Excluding XXXX. restaurant by services, in our X.X was recently were XX% the service charges marketing, contract expenses contract compensation, management. of X.X fourth million Brink expressed X.X reported of of million Magic, Restaurant million, due This due million, primarily and for of investments adjustments XX.X in Mission investments Drive and made million for Net X.X loss in-line XXXX. X.X and investments by corporate reserves. in above, with margins increase of software the product the to would QX our margins. the million product line. X.X%, is our QX XXXX. hardware this GAAP to SG&A lines acceleration increase X.X from variable increase Magic Thru in Majority X.X% of

to reported also XXXX, [X.X Restaurant quarter reduction liability acquisition. million] fourth to the company the the the the consideration During related of Magic

sheet provide to Now, company's cash the and flow on information balance position.

expenditures of X XXXX, software increased Drive XX.X Restaurant XXXX used ended Cash various Magic for platforms XXXX, million, the with million used for for primarily XXXX prior software activities year-ended activities million million cash XXXX. in million was year million in and were XX.X the X.X was for X.X income X.X by million used net year million XXXX. due of investing operating X.X million was line. versus cash for ended sale XX.X activities XX product received In the versus of in capitalized cash for of for ended year, million versus investments for XXXX. acquisitions in from million to XXXX For XXXX, XXXX, the In Cash for provided million we the [structured] the associated financing versus the for Thru versus capital X.X provided proceeds XX the hospitality year XXX.X loss.

our XX/XX/XXXX ended increased quarter XXXX, but we within to of million, outstanding net compared December million net segment. by segment within we ended in from the for notes. to and a XXX.X by XX/XX/XXXX. This from X.X million primarily like year my the proceeds due back from the XX at turn approximately would we at XX, to the During first Valerie of XX notes, improve restaurant December million, sequentially the to days XXXX and which sale questions. improved from XXXX and XXXX, received government of in million of proceeds days note was portion repurchase XXXX restaurant revenue includes at receivable Accounts XX/XX/XXXX XXXX XX, in days increased X.X for to days XXX.X stock reduced important for to September received XX offering XX, increased inventory million of call XXXX. XX.X fourth public quarter, the used remarks retail Days outstanding Inventory the to XX the at X XX/XX/XXXX. a to formal Days quarter

Operator

first Samad question Thank you. from Samana Our of Jefferies. [Operator comes Instructions]

is line Your open.

Samad Samana

my Hi, good question. for afternoon, taking and thanks

maybe out for you dive know, bit the stuck me. in ARR want just, acceleration to little to comment So, a really

frame you helpful a just bit should would that, we about how help with? maybe can think if little so, better, And starting that be that

Savneet Singh

Sure.

growth two bookings remember are last the And at PAR, quarters, orders. in know, in you signed a a, know, we've bookings. had tremendous we've you So, had

have book-to-bill week – X on Those a a are to real six they're cycle. bookings commitment generally So from customer.

we have booking So, to weeks. turn eight able into on six revenue historically been within a to

been requirements, During the with as into stores. not the of pandemic own we've requirements our through but that's to work our to get elongated got customers

And a signed very to X,XXX orders you've this so almost backlog as result, of large waiting had be installed. buildup very,

our [is ability down, see become weighing] now. and the to As stores getting that pandemic to we're into get easier, right just should and easier

down this very on and And that. see burn so, turn backlog aggressively you'll ARR after

that quarter, [indiscernible] know, the our booking of that know, you time to because pandemic. add think right the over know not it's but is always way you should, our now, ARR I following it's goal other our, relatively the close So, our you to linear,

And comes activate stores, so believe again, the will historical of cadence be back as the I some launch backlog. and kind pandemic of large this and to down, burn able down to accelerates

it's me, to incredibly so And exciting.

You kicked year the even enormous we've amount know, booked, of and off. got already hasn't year

able we'll so, as strong to, really XXXX be result. a really, have And a I think

Samad Samana

it you're that across sides, by QSRs? number average many Great. another just spectrum? And, much XQ you in think the just half Was quarter helping bookings, in larger blended should in a about the you as maybe strong add of Just both this number? more year, on you Was the there of just as How but either us terms maybe bookings bookings? it follow-up help click those plus was know, it you that? really from how and can driven – year the was contextualize of first of us X,XXX did we into considering more it obviously, last double

Savneet Singh

a it's Yeah, question. fantastic

you in actually. been to for that us have as would more helps of and of QX, has say growth the our which we segments, opposed segment saw, obviously, type emerging kind hundreds saw stores, [balances the So, growth, in mid-market, growth you all thousands we know, without] an but when stores accelerated of I of across

a So, chain you store we multi-XXX wins. unit couple when know had there

stores. if were And And think that growth I say growth we think segments, versus I to in most so a the very we large kind stores all we hundreds thousands store, that mid-market pipeline strong store, across well plus of of bodes lot then there. talk pipeline, in we had would but in you biggest that of the XXXX thousand which for saw a know, the of, the growth saw on was I growth of end,

Samad Samana

to PAR early on Great, far one maybe around know [TPV] I payments, that we but And take switching one not that's give any should so I but the think before potential and last your color gears, running it's competitors, or opportunity. traction just the the to how netting out Brink, guys is but days, early are juice through rate you payment about away still at? understand in wanting maybe there?

Savneet Singh

it's probably instructive. I'd QX – end that's it’s the Yeah, so truly say at saying of

the You was quarter first our selling QX product. actually real really of know,

IE, going I say that QX, rates what in products to would our attractive, learned we to the So, them our to think learned payment I encouraging. are so customers that We is we was sell switching cost that not them more.

think quite we think is TAM I here the large. Second,

look I time here, think ability hardware back we think I of would as I a our sort to And think to of with the really on to roughly offset set ARPU addition. if take our that line, costs to customer we we at is you think a were our over were our we indicate, powerful store. it payments per know, of rate rate, take come sort if sort doubles average product into

think get store $X,XXX per we'll store the Brink is $X,XXX $X,XXX, on we So, payments. around that to the another today if average turn we

fixed basis if points. not down transaction sort you so And to but points, a back basis sort operates – a which spread model, XX very back the want if fee sort it a versus basis you it's [XX where into that of points] rate, much market to much per is how you business. enterprise into of So, take know of is

Samad Samana

Understood, more me. and one maybe from

into it'd Magic, Restaurant but to tough be to growth that. right looks crystal the know, what's durable look know you I on maybe think like? depressed, but maybe, what should obviously, how I about the ball, helpful a you we now, with understand can there's, there know, think it's being been it's pandemic, I by going know, impacted You the if about it's

Savneet Singh

we sort are look Restaurant the if look and, very you And the of of know, openings. back. we the the and had sort that's in stress if November, around a had Yes, results, obviously QX, bookings, summer coming the to weak bookings you sensitive QX with know, you pandemic And bookings you lot good at, the Magic of of pandemic. at result December,

this shouldn't. as slows know, Brink. finish think vaccines cadence no of done up, as down the I Magic as as one And normal you transaction, now There's you had reason it things the here, we to be the to is, and of pandemic should founders, is, we've So, that with pick you the it Restaurant know, the integrated back of, and team growing after completion the the one-year fast know, that earn-out we've fully. get the

that out will And now the separate [indiscernible] opposed have sales out team so so notion PAR as nice coming sales broader products. of the and treating to attachment, is

can same think, comes not rate pandemic it Brink, Brink at disposition I base, of the down a the even a should should this end normalized I be So, be hopefully growing faster. as sort different of to to or a than low in growing world. But an make to any

Samad Samana

guys Great. all my and taking strong the Thanks bookings Brink questions, congrats quarter. for on

Operator

you. Thank

next Blair. from comes William Sheldon, Our Stephen question

open. is line Your

Stephen Sheldon

Hey, thanks.

their own site long larger roughly their may for about those in some that Brink site site base be talked Brink and within base? big it push with adoption of Can how frame plus maybe to pipeline. one, franchisee thousand take you brands the First you of wins did higher the

Savneet Singh

Yeah.

quickly. large their base own very site say, would comes winds, the I in So,

quarter. start designed corporate know, quarter. I as that our see you wins. we So, large stores, excuse customer. quarter generally more able these a We've win, relatively the own seen in a big we we'll the on their last We next turning that It’s within to think owned with, announce recent stores me, And that announced are were of quickly. we

know, of So multi-XXXX come work size, non-corporate the on lot stores, I process year then depending think a corporate to very us the stores, going it's on you the unit is to owned a couple through of chain, because get quickly, owned it's get there. And generally, most franchise stores if the a them. the

back in look you with prior three I two-year get to you of early a years, three-year if business, I the know, but customers to know, couple know, sort years, are franchisees. guys window, rest a some you is five net of it the You think can our

the changed better. has the things changed pandemic Now, and for things

customer we're that in find, you know, at rapid think of pace bringing both sort You where Because this of we'll picking we a next get expect know, to than us fast. Brink through much it’s our they're large kind I'd I seeing that more normal. bucket just again, really, get not live Brink to it's us, want about really same about live like that of and pull-through

something of know, is do, of learning the we and a in some something to comes say we large within you three pandemic, to as logos I years think that have customers historically, acute, we new person so years faster, of we So I a from two sized because, of a almost very as opposed think the on medium need kind that jumped do. to year, sign, the for they've must customer, we'll is because see two result they're to three that

we'll some potential some to think I these for of So, see get really sales smaller. cycles

Stephen Sheldon

helpful. That’s it. Got

any on – Brink use that just Magic, some in of update between And an On on there? and about talked integrate functionality, the think the side, the market to better look and integration maybe and Restaurant the I side. ease perspective on so client's like that, of potentially integration a product terms could you process detail plans go on from to what

Savneet Singh

Sure.

marketing So on and sales yeah, side, the we are integrated.

now And one team. so market to the that go team the is drives

runs to sort opportunity sorts not different dealing sales with not run as amount the sort the looks bundle same and go to is not different new And customer, different coordinated. and the is equally not look of opportunity simplicity allow for same of the management marketing doesn't one. of by But of know, I so to talking a for us all to think They're billing, incredible for team This They're to account owners. And Brink. you team pricing, right. have product. important an creates account our account market at that product, that it is that

And there's so just, logic know, great there. I think you

the On sort of to we will buying to building products, We're great sort the business move in of each products speak start and of of, these product as we're the infrastructure more other. to revenue, talking in the modern products the to businesses, not talking we're forward begin other. each side, have Brink, to

[indiscernible] time, sense, but over like to the manager So, systems that the does products, take franchisee. actionable and to you or back come have both Single should have of something from these to restaurant mean? what you'd able From Sign insights products, be owner using simple the data right, net most the On,

level. And so we think that's the next

And we I Literally, two product we think or ago. that beginning kicked a week sort so of off integration. are

so, will we'll our integrate more it customers products in of again I which see the year, the value start upfront. bundling to this closely And help think

Stephen Sheldon

Great, thank you.

Operator

you. Thank

of Our next from question Sutton George Craig-Hallum. comes

is open. line Your

George Sutton

your new formats and you. technology, things laying delivery, chains feel relative like future general players? how new pick-up out obviously that Savneet legacy statement. opportunity integrate major been Thank you some made you restaurants and And Drive-Thru that curious of a you're area you addressing and, technology of to have competitive know, I'm

Savneet Singh

had. is part change we that think that growth know, the, in the of bookings you I Yeah,

know, You dreamed, months I know, you would our we'd ago, you growth quarter ever have six never best, in know, QX. have

pickup I'm all ordering upgrade I always a that to knew CIO the which what – needed is or CEO or what's lot driving part is, of had because it's the I you're if it's QR I online or restaurant saying innovation, whether that, payments. think organization, know, code I you of

all impedes], perfectly whatever the connect it's adapt a an a this Drive-Thru is so and future. is are changing, to [virtual change How no infrastructure, is, And to kitchen, though, kitchen, together? going a yet to I to modern a predict dark changed what's that that be format's so can [creating I be. which it can have might be a think one Is changing, ghost very, they're going and and very agile have I kitchen? kitchen], to

just you us. coming similarly, trying is the mean, out said, like are getting point to definitely we're growing, as think So, can't the just wait. pipeline it's we're just me, again, where restaurant concept again, or keep owner, And pace really continuation, a a up the you helping excuse I I that last because think owner, now as at with. bookings the on call, are I I

And so pointing that's a demand. lot really to the of what's

that don't know if it's to specific I that’s So, think I demand, of the but story. whole part

George Sutton

implementations, ARR And constrained one can bringing have ARR and call in spend, those the of bookings impact the have you growth, been obviously, the the also of capital Perfect. bifurcate growth terms you together, how thing both then growth mentioned talk as to you on COVID that? an much of restrictions we about and relative

Savneet Singh

on Sure. solution. The keeping market that really eye their definitely our were tied our continue service this capital of are spend in encouraged our sort we hardware invest to hardware their our they was where wallets, business in more where solutions customers to and

So, very that. encouraged we've by been

limitations and where schedule where that's As to is allow relates exposure we've end-markets. it to want stores you they had their don't of know, a controlling on in-stores turning structured literally non-employees concepts or certain much again, because activation, more rollout this matter a just

ability our limits get to that the get stores there. until we So out rolled

you know, is, visiting. example certain state-by-states quarantining had or Another on, you different regulations know, a

had would. we have she come So, had you installer in as get who they'd he install go to York, have you something if a New Massachusetts, capacity quarantine, New to York have COVID to an in to the didn't test, would or back normally

this book-to-bill of back believe. to as I come we've open, As come our restrictions seen, sort these traditional seen, we've see process more sense, states down, we'll

again, And revenue to, again very will start quickly. so turn this backlog, through and into it will exciting, burn incredibly which is,

is to as limitations And that. XXX number by which that see in environment. these it, know come tremendous down, we're this know, still But you'll and pretty activate so, continue excited so, grow, are we you really they stores, you and with

George Sutton

Great Savneet. stuff. Thanks

Operator

Thank you.

comes question next from Our [indiscernible].

is line open. Your

Unidentified Analyst

an my And XX,XXX those that's the incremental which Brink Hi, to of year-on-year not ARR year going just imply X,XXX of good XXX release Great and quarter about for In equates question. for ARR the to locations be ARR, of locations thank you obviously and breakdown million of locations great the addition way afternoon. well over had guys, circumstances in given incremental taking COVID-XX. been what PAR QX has existing existing and of how the a of as correct revenue signings you out, as think as Payment please? are in working been from me you to incremental out, in the upsells have have it, give Can particular, locations new the XXXX. Services increases upsold, presumably how going about locations,

Savneet Singh

Sure.

number So, $XXX per with will I month know, store. And the I sort and a $XXX, and QX the has time. last but number, That continue would of grown, it's I are, know over years, price grow I'd roughly our to price. you – exact point same continued over the the think don't in-line [store two signed] of say around

to think will that than had this I mid price traditional expansion as higher where the our is continue in we've over one. market, tier number grow time,

has we'll been So, driven, module I that hasn't to continue see think all driven yet. that, growth been price

time know, be a we've to $XXX all module-based. from, or [XXX price. And so XXX], that will price it grown whether In you through

We our first that product haven't on. a going QX that we'll this we the sales really real we had last not saw it. advantage we've that we've our is purposely saw We learned we that to two the to that Magic we forces, we're we And beta, combined now we lot, had value some with a our customers. as that but the that competitive, And nice, – can module to our money to upsell. make year, But a that in got Payment launched with so. the cost in is just Restaurant beta, end ability I ARPU hardware success the Historically, see upsell there. were customer. there's traditional offset rates questions just obviously great I Services, have ago, or expansion answered learned earlier question On said, of ton customers, a saw we

upgrade incredibly for So, can instead that we on, hardware, deal [indiscernible] CapEx take in that of provided payments. your we ROIC high, PAR. taking is will the And to

just think an got is, historically been that whether I door. more what revenue strong plus, that we've That’ll revenue which has has and you're suggesting, to site site the exactly XXX% what the will was in see growth framework? growth and is it not back more has sites, was been growth. it to from come upsell, whether out tied completely then our growth, hopefully build XXXX, growth. start So, we that really which changing or path that – revenue and revenue along module backlog acquire payments, office, come to do as And incredible amount We'll just of we

Unidentified Analyst

Great, much. thank very you

you when view EBITDA net positive to might have positive on you Just one Do follow-up. a get income? get or

Savneet Singh

So of to lot I suggest going XXXX, to think a know, projections you continue I should it's on think slows quite we're break deliver growth. business money, to if levers you our cash quickly turn back for breakeven, already to are our we relative the know, we would be don't our going burn. I to growth burn But to to even. balance. particular The dependent in growth If get very can our we us down, there

We are spending. of a investment tremendous amount R&D in making

now. leading marketing investment mentioned, we great results I is spend, As and should of the first sales we to, our some have made which in that just have obviously

the great expand, results low seeing, it. the think investment. think that So, we to LTV so we continues for from know churn or next much right. I given continue Because how pretty on dramatic to. just we the you that is, want I needed we're know, year if upsell, could think considerably, to how we you we But base And turn can

it mean a customer lowest know LTV, I that because ever serve it that XXXX in be was base. XXXX single service didn't product company you product and have Our it's actually the XXXX, will the and to capabilities and

you handle company a upsell the with know the Now ability ability. multi-product actually we're, to and

is LTV CAC I know you think so, And it's incredible. equation there's the a,

along Again, we can up keep or not this will whoever if ever it if invest growth, will We turns [indiscernible]. that.

So, the accelerates, argument not us today will, might but XXXX, is I of in it to growth an revenue time, business at that. surprised if be think wouldn't there same I profitable if be as you for as do know,

we're think we give ago couple the by capital. dynamic the see the sort profit can business we this I’d probably, we of, I the to growth know, of I year, wait with going some But argue can that So, you end say, guidance quarters And think allocate on that. we're see, on we'd see to. push if first and goal. turn that to we think need potentially know, you we'll if how I how I'd

Unidentified Analyst

it a market the so be That's there I know, focusing Thanks increasing very be you as and for doing. taking should to Thanks growth, go much should questions. my way agree, completely much. on you what the forward share.

Savneet Singh

Sure.

Operator

you. Thank

from Our Sidoti. next comes question [indiscernible] of

open. Your is line

Unidentified Analyst

And taking marketing my a asked but great just already, of made be good for more you you questions thank have and you there? progress curious in to there the congratulations and Hi, see or? to the capture on lot made questions, quarter. A I'm changes do sales to

Savneet Singh

do. We Hi.

head you a And, sales through We spend by already, a went nice think start seen, are, I'm had you put we know, it's encouraged we'll know, in really results there. QX, from new marketing, know, in QX, see, you you to rebrand. a just we and know, I in investment first a for the department tremendous this. you you we've restructured time of know, our we

And you of campaign, that the I quickly. did of expect come results existing think Part and big aggressive as go big is or just of I know, also marketing getting sales not next sign more brand go think about I not said, continue much so spend we'll that. marketing You what it's the to logo to our sort customers.

in we amount to that signed waiting to have enormous to I also plus have have only X,XXX of if an not installed, be have, do these And are will. are think we waiting orders sort installed. We of we logos of that our be existing whitespace you these sort yet then, stores mine,

get are, XX% to customers know, So, XXX%. we we a that need that you number to of in we have penetrated

a QX the of know, some bases customer of was demonstration also great is product you now attack where is I know, we you how the that on comfortable that we we feel And you And that our think result so spend. And turning those do know, that. are spend, of focusing investment point more be effectively. finally, going to our to

Unidentified Analyst

you alluding have rebranding, the Okay, on any initial got feedback to thank you. that? And were you

Savneet Singh

We have.

to rebrand, share know, and on our customers focused we've go But or feedbacks ago. initial externally, In focused out we we so you the and positive. internally, a publicly quarter, out So most been our far, week the can some put our we first it of next partners. two feedback. it And we'll quite

what PAR You we to that change. would say, does our a are What success. does the PAR this what recipe is brand that's optical that the much it's people, that also about as what looking brand mean know, of lot We say, not promise, means lot for, rebrand, it's I sure to and not but sort achieve? customers? drive help stands need of sort for of of a things, to

out And so going a lot there. that of getting work into is

that a they little endeavor. really a far, us would collective stuff when And quarter and out promise been brand of expect think made lay also see and expect do the suppliers what you but of customers coming it lot bit I me more for partners, month of our positive. so kind it employees, it's a the in it, externally, see So, does or helps to out to engage our what of QX, we that QX of

Unidentified Analyst

accelerate pandemic, installments? the do going Okay, progress? thank to then installments you firm you do a yeah, Or going those have like to is backlog the and to pandemic, with getting to of that you. through the you're you have able capacity the And we're as the be say, be slower

Savneet Singh

capacity. We do the have

As has I out the driven. limitations pandemic of said, know, getting you of purely most been,

amount know, the to many You it. just a we're December, customers you because form need slower limit need our non-employees rollout in know, the February, stores. and We we had, trying we'll Brink, listen, in we really order and know, said, to of commit you January of sign

is was little sort for it I us bit boon stores of huge accelerate coming huge, those control, to forward. a a our so, of as think opening And out again activations

our you at know So, not we're limitation more feeling pandemic comfortable relates I to same It's very own think, as much capacity. looking at at looking it. the who our right customers to now of are so it's data much and

Unidentified Analyst

thank That Okay, you. was all me. for

Operator

Wyden Thank question next from comes you. Instructions] Adam Our Capital. of ADW [Operator

Your line open. is

Adam Wyden

in COVID, about of guys guys, excited quarter. Hey out you have store. terrific what really Coming

off, to these you. me questions like back, So, kind it's a have I lot I'm step couple for going of, because questions of a had kind super been level but a pissing and of of feel I high take short-term,

You know, were McDonald's dynamic announced they that divesting yield.

seen You guys Taco it Bell, stores. are of inside in piloting the we've clearly

the You know, toast ability you you it's XXX, much toast, once use PAR know, this initially, customers, was grow an XX,XXX you as at time. but, you you're and know, has know, know, scale, you to, harder know, I doesn't to analogy, they're it's, in getting it you a customers. to get know, at we you you [indiscernible]. us one you bring know, restaurant adding when the And XX,XXX to customers attracted And grown look scalability what know, get, when bigger

got led Queen. then which bigger to announcement guys CKE, bigger lead a with you've to to announcement which to bigger know, Dairy which announcement Arby's, You a with five led a

[X,XXX Dairy you So, fabulous. you is units, X,XXX you up know, know, Queen ARPU], know, X,XXX, doing you're

around know, you of you but know, point-of-sale their You XX,XXX can about question then that's me the winning, you at and you because divesting, going Toast, Buffalo own everyone to can kind getting the unit you're unit and know, deeper Wings chain it know, I step a spire, please be company, win fair build Wild and me, holy and it. X,XXX, double grow, to a the know, John, of system, McDonald's know would you you Sonic, you to digit mean, units, you said and follow-up know, and a we here you're relative Jimmy XX,XXX grail clearly you're taking I know, Bell, X,XXX, you now, is mean, my to was to you know, four X,XXX, I all that they're deeper right that, within back game? I kind going whether is guess to you Taco you have now know, talk chain, of know, that, a potential four, a answer in

Savneet Singh

customers company signed. have double we’ll this, say first the we me the existing with Let size of the

to whitespace, much excuse stores of customer not, as not be company pull right, You whitespace of know, me we'll ton get call just tremendous are or backlog a halfway installed so amount going of to think got you our we're a that There's double just large through. of through, logos. to I'm from the know, yet I reticent in names. forward. we to, you number But I it existing customers, that. And we're use know, even to our

that. So, I think we'll do

through. own think competitors dynamics, to partnership building software, made I to sell debatable. Today, we’ll Large question software people be XX that's their and their its on vision no made better there's than products I decision years need build better the a relates with our gave the have. think its a a been companies average, that in positioning that time a On think it couldn't restaurants, As competitive technology to company own the ago, there's product have never because sense like point-of-sale, edge. to ourselves and build build tremendous come industry I restaurants. as well, make them average, competitive product they don't that we

that doesn't is own that an burden system, of innovation the that organization that idea system, a so, a to on you're sale think focus ton keep the software. and building I of for on captive And going for cost point maintain your

would organization, of that's going are talent. to part the an technology best of the if a way, be this the where best the software large I think important of to as company organization, leaders opposed know development know, I talent, that don't You But the if it had group it. all part restaurant a

the shift there. not bookings position that seen. industry I to sort of up ago. much with competitors years but relative dynamics we've a able as last being to is a That industry now is dominates and building result desire X,XXX is, thing to shift of it’s stronger. sort is wasn't our think so, quarter I'd much sort just keep of there partnership getting thinking, as stronger our the that Listen, us in of which plus couple growing of And say success incredible, our in to, competitors a The

of As customers say, to our hey, customer and or time of provider we modularity this we then flexibility to weeks is find some wins to lot I it want now, about Brink. our that a that start few of get come to and the able this more next change our sort talk more in, large in to that not can them and give in being can the technology a pipeline,

long-term And so, the [indiscernible].

Adam Wyden

we that, been from but in No implemented I legacy, some know what stuff no it, one [indiscernible] RFP has Burger has there a mean, a said, and couple really been been you has do we purely that successful real [indiscernible] deployment know, you basically did we in the Toast understand, know, technology units. King, do XXX I there's can't no cloud in cloud. mean, customization. we like over can't the an

there successful, a that is our cloud more been has So, fully understanding units. XXX at no channel know, checks chain least a than unless are deployment you our few know, bad, you in

from yourselves. the guys with you wrong like, this we So understand looking literally into competing what are way? I Am

Savneet Singh

I don't so. think

say incumbency, of we these hasn't innovations. made competitive feel the which to survive been we incumbency, the that vendor and very is the that sort I lose rarely when think compete I have think last incumbency, for I way to can really a best it's is win. with When has with pandemic where that the against against its the solution like we we edge don't I've decade challenged really

which against in specific it, competitor. incumbency, look we're competing I any we how than that's compete at So, is, more

Adam Wyden

Okay, sense. that makes

something I So, want just you ask to else.

Twitter, XX,XXX like deal, kind from and addressable know, the, toes of per of was including test it market I the about on of know, go to to one a You SaaS not there they payments. slide kind waters the XX,XXX where of, you think was market, talk restaurant

ARPU there's kind utilities. my that, if get that question much And, whatever loyalty and at X,XXX that but is So, say But cross-sell ads, call you on X than really obviously, know, really customers, one's that, X,XXX, kind I I all can still you you call you what you get, Karen you like, to units, Brink, real to number? the only you know, new looking you $XX,XXX, you can you magic gave Tier for you're Queen, waiting. know, $X,XXX, you know guess box you on I products they it harder your one it's X,XXX, the easier some to X,XXX even comment, penetrate? let's know, or it kind you you're great know, it Magic, is you know, on, and Restaurant you know, with you them [Toast] says know, get You back restaurant per using to you're it's and, to asinine, ability get they guys seeing, of would seems $XX,XXX, about you know, because to example, bonehead you office mean, know, of Dairy know, like or much sell it Sammon $XX,XXX know, of deals, sell unit.

me. thing mean, I but do think than Toast think of a ARPU you and way ARPU, you make of talk you that cadence XXXX. strengths to by of your And I the TAM I'm get platform guys that? how I'm because peers basically even efficient another all that your XX,XXX this So, curious the about and and payments can you of they’re kind said like, more ability it, in of just much sense aggressive doesn't of to I about to can that how kind not kind including mean, going about capture and think to

Savneet Singh

might in that The expected idea And is, business delivery, ask if for The vision, as they of Yeah, would as be that the be set the have much to ever same reason good fraction again, if to today, TAM think a hitting so I'm this way, years, any you I I things think in that person our same where today, now they here change I software just restaurant assuming that five is a the have shocked. is in that this you management, these artificial question, why is robotics, the the of see is say did don't we computer need restaurant restaurants have future? industry. team going why for ask dreamed. I TAM, way. they in software are think is restaurants think all let they'd is, intelligence, industry here whatever the it me it eating we

expanding whether the comes idea the point-of-sale see for at the is, we that's on QX, of. much TAM And this XX,XXX, or that the a of half know, opportunity, that average tremendously. things it’s wherever XX,XXX, takes this where API. so system off XX,XXX-ish that platform we The And great just it's that you had, billion end is stores because foundational of

platform. [indiscernible] I how is as again, the that product just is, of important think foundation that

and I us think importantly, rapidly acquisition. grow and expect I TAM, again, through to into somewhat the that through We sees new as see product I it. industry think, grow both new And So, it product. we price, more growing but through

companies being their if that realizing going by is as product think like or to that XX company just for just back operator XX, you're partnering a are PAR makes products manage and it sense own. coming that success restaurant I XX is Because doesn't per opposed it single at the store to or on path sold to to their or asking failure.

think you a going it's in be of today, whatever it understatement I the strong. go future. is incredibly tell I think dramatic position will I our where that And so, And there to

Adam Wyden

successfully. is I salesforce.com, the cross-sell Oracle, I I seen companies of access, I vertical I pricing. if call like market which what you've a look that or income mean, look, SaaS mean, or would number shows fixed at one

making know, see I mean, know, like think you which is on talking at but XX million that the know be of about at getting and not installs million, look, minutes, that that obviously, deal XX every million, look, SMB. you know, ARR Brink, I million Toast stuff they're mean, million do you billion. on envelope XXXX. it good wherever get so know, I will, XX mean, go churn kind it much a XX year to don't about if backlog in you're mean, including you up, to the does five I is So, the know, trading X,XXX hardware you kind I at know, conjunction bookings, you to backlog money multiple just two quarter, that, on something it higher, [two XX math, know, you do, can XX installs X,XXX worked XX And that's XX rate you you to the is call know, it look, down playbook on going which of I you've know, four] did Brink public are is that obviously, and or or of not. that's of looking know, in know, XX I salon the there. a backlog government. down, I line X,XXX, Lightspeed including you this business, kind probably I with million, it's a basically at XX guys talking And, have, looks you plus, and million that, as of not X,XXX, if whether I plus I I is put to should Lightspeed times to mean, opens you back call mean, guys revenue. pace you going bookings, of know, the get at guys this mean, got you're you you a backwards X,XXX just basically to If year, Restaurant least like you is, Magic. I acquisition.

the market still you're saying loser. of kind So, is a

through people here, I that basically become you mean, the is to that going So, do the inferior take going opportunity. the Lightspeed my the trade you're it's to let going to is question vertical these what mean, you're SaaS one an nor player Toast that it's think guess winner double you be have has they know I and like, to I because, I to mean multiple, neither the to opportunity business, and the cross to sell deep networks. Lightspeed don't

should given we much and know, multiple, at a higher trading our upsell ability you arguably, to like, cross-sell. So, be,

missing out to trying I'm [indiscernible]? you're figure what just, and I'm I sharing So how

Savneet Singh

not – me think Again, incredible. don't I've I this is year, is excited I truly the enter [hyperbole], catching know, screw type that know, year, execution to listen, into you hard for been it's and more you to we've dreamed think, backlogs a let it's had again, going up wouldn't never stores bookings but careful signed have have use And already always, us I to this X,XXX I our So, tremendously, up about, I'm right. of year.

always the in script, sort that. and it's So, platform we've is deliver I as know, building said, execution we're continued we has really of would that And said, the, just tremendous you And think our value and think I actually to add every And we'll that's building value than more value where acquire starts, we which anyone that we customers. are. investment else is think delivering our products. I

know, much in the been be rolls again, revenue So, acceleration to, And growth. you I think off, changes and do. it's can our pandemic like we've that as us this executing you plan, on very it, to know, a doing real continue lives

we've we've I the in has got, that we I this advantages market. sort that for epidemic been product as all growth, tailwind the proven unique pandemic of amount we've, get of of benefit got because So, signed a the think and We've stores. are think, dramatic that down, that interesting winds competitors, of we've unique sense these in ability we a already how proven tremendous this revenue the

opportunity. So, got [hate both I we've I we worlds couple the more of think a we questions. get Adam, say] – to with best that

Adam Wyden

in chains unreasonable look is I guys payments. mean, XX,XXX, mean, out, and X and restaurants I you back are SaaS, know, have company. could monster these know, I say, you States, one deployment XX take be take in a have to these unit last. that this step a, at the at right, know, out, know, restaurant, you're know, United several a global? I XX, lot talking you several it you billion a years you I you mean… I think $XXX multiple, including billion chains, about million step all I a that's if with years obviously, you and back, If of and XXX,XXX

Savneet Singh

technology to the know, are we'll this, [indiscernible] I company at know, in five think there would already. largest just way PAR tremendously industry, on our you or years, by within So company be the the say XXXX. they is And outside I be, you

we're hopefully are X.X globally million million we get think that. And in To going they about, for restaurants use United There think systems. numbers at you to the building reasonable. a be are that States, talked targets. point-of-sale our very I I are

is count think think growing we I high, just but of sort this is think sort that restaurants. being more the part that which much is at number that yes, again, how under ARPU I in TAM of a which world the appreciate point of rate is much I it software And important restaurants, volume there. side the the by And is system, dependent enormous. is of is it's bought our how is of upon think of the wedge that sale

So, believe… do I

Adam Wyden

mean, my got it, and center I you've I right? you've got think cost business. steel you got you've and if rent, like basically It's rent, in labor, look, goods. grandfather was of a the he have right, service costs, said, few about And

your your are, you costs, right? goods right, costs, R&D So, development labor cost you rent, have your that's You of and your in your have then know, software right.

a Now, you're Fifth you if look, or ghost think virtual whether kitchen, you're, mean, if restaurant, be I a Avenue if you about going know, you anymore. not a they're, kitchen on to know,

ordering, the for I amount of of doing these have restaurants is can why is do anatomy, that you in know, mean, software, million know, can't can we I with [frickin if XX have and going online So, are middle of know, the have math to you at number X% but you the all $XX,XXX. labor the all $X I day, end these inflation, to restaurants in that of your this I'm the you and be growing sales sheds need nowhere], eliminate of

doesn't that You unreasonable. that's payment. including seem And not know,

or doing I just mean, and you to mean, so going me context me. restaurants And because into. So economic a XXX,XXX Lightspeed and the makes doesn't sold are much I like, they're sense I why sense be rent? after can't Toast in to XXX,XXX, the know, in math they isn't this just make cross restaurant. of I like it waste there's that

doing know, and to we're So look I cross and you restaurant X I million when mean, the do at base, ability I to it's our growing, to you store it. like sell, look and, like, me, know, going at,

silly lower that So, gravitating know, to is SMB, I market just, it's quality higher churn you know, businesses me the … I don't these to

Savneet Singh

me Let I'd and last Adam to time But say say, do we is this did enormous. the the caller we before move to expires. TAM got

we’ll I've these still a management companies to think rates. incredible all team, of have really we we're be grow revenue fantastic. I They're a always tremendous if at have growth. above average industry going said, team, growth. And all can we'll great are well all

great. what I'm And long, wave to is know, to pause not a on. just continue you're we're caller, to actually of time. the function a riding for we're be that going Adam, going think the know, you lucky to to to You and we're a go time. you, that's of hubris and that of, This the just sort touching trend be no happen we there's going secular it. beneficiary long that's next I for We're

Operator

you. Thank

Investor. question next Our comes Mahal], from [Amman

open. Your line is

Unidentified Analyst

guys. Hi,

few a questions. I – Just have

just ARR, doors from these backlog, of are earnings, operating as the the I see of to these on hours. sort existing you stores some closed Brink under one those reopen, think there's that is have here the, how are talked of accelerations the The or – I'm was benefit like [indiscernible] kind open first to reserved hours, in of just the stores, about of Brink, it where XX,XXX you'll element XXX variable many on a come partially partially booking, about limited from kind normal wondering also a

Savneet Singh

to So, element at the moment, there's it. variable no

So, them. for if we've, build that don't your know, we're we for running, open is time, the are billing And you stores store down them. and

on view conservative a take we so that. And

as being on. be [lights] a to, which becomes time, will payments transaction opposed based, our element over of as variable though, base, know, you there So, a bigger is part

variability again, wind moment tail at that there back down, the we'll start online, don't there. it's, these pull-through I And pandemic have that again. to stores them you from again think, we'll as nice So, we is being the winds partially come stores building some see opened, see but you start know,

Unidentified Analyst

look where what's [indiscernible], at generating on sort at base, upsell most look and do additional of our I purchases products main you you're of mean, demand the history seen where the there, today have kind right installed you that most, see coming from you the installed base upsell now? the

Savneet Singh

Sure.

PAR at we've upsold never product. So the

product, which single So, been point-of-sale. is a it's historically Brink

motion want is that happens. restaurant platform just looking though on, you'll per and office to this to customers of both And now but of all where starting it quarter additional lives. think us our is trend which begin know, our of simplify think of back our loyalty still they our small system. of store, do sale, Brink. their API very I that online We a ordering, modular are this both more. XX sort been us to going be product, to underlying with see to add-ons underneath our Again, impact, of you loyalty them plugged this payment positive, have into most they The use there sale Now this buy solution, of delivery, is [indiscernible] some whether were buy sort bundled sort or that into or integrate But and then back or to that decade, manage integrate solution. point something they and not product are products vendors I it different that's else, customers, of point upsell build

getting have we the historically, call have know, and same. don't is it’s into. is just think just know, retention net been it never, say, So, never here, is you – TAM because And or upsell. have We an that tapped I gross the as there's the data, like been I you which the excitement last

Unidentified Analyst

the needs I get different a could Tier on and been and talk X the of trying that And from some of previously, demands you some X the guess and their how are those guys you've their maybe X on little more what the customers to sales Tier cycle get [indiscernible] and Brink? follow Tier also kind around to on up questions to of more customer, bit just

Savneet Singh

Sure.

Tier cycle X generally So, corporate are of to win customers sort long sales a, mandate. the year

to if it's in roll quarter. stores. Now process those quickly cycles, historically, talk three some [entrepreneuring]. which real as it's to onto next changed year that, had a subsequent I then But during convert you chain, be out to that about sales a And you we've shortened two corporate the multi-XXXX it'll has, And a our sales the cycle. then mentioned, where stores unit we'll pandemic, around year franchise know,

So, the you or we've it. It's is mid-market, which very to and different where you where very, very it's, in seen that's through market the quickly, on six look sell stores at know, less down how months. I XX mostly and program generally where of a sign we mentioned resellers In generally the stores. three growth, call the turn it's than lot corporate-owned, a it we And then as very changed QX. can

month cycle. of again, it's sales know, You couple a a sort

the really the there, visibility We have the if a And lot the less never they've only chain we're We've And business, like as because since churn existed. but large off. lost part to must upsell it against is ability directly. that that not market talking to never durability I that I they think has customer because a the mentioned. the Brinks the of product also shut down really also of

Unidentified Analyst

substantially trending the in should but consolidated that call then on of mid-XXs think the that, service kind just on now, elements higher [indiscernible] you mentioned maybe gross we kind just software sense than line a going a are, I it can And on give of me are margins forward? revenues, how that items of about your

Savneet Singh

Yeah, absolutely.

So, attritional from to our are is expand. nice work. repair and in much businesses, then businesses The service our over business. service we'll line, exchange And warranty That higher growth than will time, advanced our the which margin field anything software-related software a we combine business see our over time margin type in business. service service

think to a follow that that you sort of growth. breakouts sort over margin time, look more of business I so lot line give can of we'll

the historically, So, software The margin, for, the I be much business coming non-software XX business. nice mix margin as higher side growth really it's years, in XX will think business really you'll consistent, margin but see because shift nice know, again, you is of that the growth should be to side. stay years, from should the moving been

Unidentified Analyst

Can me and rough differential between you software the margin give margin profitability? gross sense the a a get split gross to versus and [indiscernible] of and

Savneet Singh

software level MD&A, so give we'd lot XX% time gross much that XX%, like sell very our haven't that say to here, more Yeah, in do. the that but products we we with software our a in be specificity I up, ACV product. businesses we would historically broken other haven't, We same be margin will the should

not incredibly nice years. primarily, the spend, really different other in couple in see than the business price to running this I margin we, time, being And we've that next We sell we that efficiently. point we in excess I And over aren't we've don't as any trajectory past. that talked in of but expect today, range would at don't that as expect The be growth about in is a there us to. gross because software to any range, product be see sells sort I got and us the

in all new And so products that's already happening. And XX%, built. at acquired margin again, the come range. XX% that have be of new no We products The we've we’ve different. should sort gross

in that non-software is revenue, And services the volume margin. our XXs On of you of the dependent. you're gross somewhat know, side

So, as we more sells hardware. business line that grow Brink,

more the a we affiliate think Business gross nice it’s will sort Services are margin ton Installation in, is So, Field those make services that. margins. level, business not with [indiscernible] money [warranty on I of implementation but a very of Harvard actually interchange], a is And that packaged true make software.

part margin the as line And I business – we relatively will so, that that line will think of grow, flat. stay

you'll because gross the margins low. doing you're also less relatively increased slows, growth there margin are where As implementations

Unidentified Analyst

report If software time, be think see. and you I [indiscernible] [indiscernible] to could margin the it'd gross of Yeah, over great. sort

Savneet Singh

Absolutely.

Unidentified Analyst

competitors when COVID [indiscernible] gain incumbency, Maybe actually drawing helped, some kind of just with on just looking maybe has question those, customers, of products, their game, over you're raise online one way to game last of sort of kind me, seem of for last we collection competing curb they sort lagging and then ordering or actually their of of raising their kind product, to sort months? the them add and six the

Savneet Singh

this always I'd seen. say know, You has

more that the companies market business. dynamic younger, on the I pandemic focused think well, I the down the think, part reacted, during of

of the So, enterprise those to part that side. were up the into trying come our world, is which

we're think that our a I and that world returns removed as going today. base, market, which sort is of great, hey, we are focus the competition on of let's customer said, be chunk great, to SMB from where

On the think don't traditional seen we've older a I competitors, the dramatic change. companies,

trying cash But how of customers. hard no there's I very You dilemma, a a to base. do their and help you you think turn of vehicle? think for it's know, know, was, everybody turn reinvestment I a reacted the I customer you to know, you to, it’s it's hurt that's that ton innovators a to doubt their that product sell into made ton line money tough. think dramatic Nobody

challenged drastic think I such a business. a structurally to And change make their so there's to

last couple strong. I again, quarters, if competitive think you this the growth have of And sort we very results show was, would so, our see the don't it, know, of had dramatic in response I think in bookings we

Unidentified Analyst

good. to forward that’s looking quarter. very a I'm Congrats guess much. That’s on how I it good develops. seeing

Savneet Singh

you. Thank

Operator

this any you. Thank no to Savneet I'm Singh back like turn closing to time. further showing at I'd for call Mr. remarks. over the questions

Savneet Singh

forward for joining. future to look welcoming I on everybody, you calls. Thanks,

Operator

and does Ladies you. this all you today's Thank conclude for conference. Thank gentlemen, participating.

a day. Have disconnect. may great all You

PAR Technology (PAR) 16 Mar 212020 Q4 Earnings call transcript