PAR - Earnings call transcript Q4 2021 | PAR Technology Corporation

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Operator

Good day and thank you for standing by. Welcome to the Fiscal Year 2021, Fourth Quarter Financial Results 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] I would now like to hand the conference over to your speaker today. Mr. ahead. go please Byrnes, Chris

Chris Byrnes

The Thank during this you, like of for everyone. also our results good XXXX can our be found (ph). welcome you And in review. details, financial SEC. the press to section release year-end afternoon, as related call release website Quarter afternoon, disclosure our today and of access in Fourth our the results Form X-K Relations issued the partech.com. To want I'd financial press and please Chino complete www. well as to furnished see PAR's slides minutes access participants technical those to Investor afternoon. the to furnished all webcast I the be communicate in to Business at Earnings better and in the News also sure The X-K slide slide have software in on deck. the the few the call to momentum and in use should and to access Unfortunately, dialing that we Presentation for this the access, minor call our today afternoon. have should a today next we're experiencing the the our to Individuals deck have been just resolved Review that be business. filed this view difficulty will presentation that we

the for of Sorry, it the one on second. be we in be will playback. should details certain care to this like time, regards call call I take At and are Participants call this aware to afternoon the today. available would recording that

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

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

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

Savneet Singh

Chris. And Thanks, results. for XXXX to quarter year-end us thanks everyone PAR's review joining in fourth

always, to want we'll lot share so all As in there's we you now. our prepared off of with today remarks, a kick

as saw to fourth quarter, margin continued growth in expansion to get drive the of benefits a revenue our During we we platform the continued begin and strategic recurring scale.

As as a economies Brink XX% error When a continue expect engineering were and us time. end of to margins on QX, revenues expand specifically growth at is in has margin dramatic live years increase strong $XX.X is totals recurring increase way around adjusting little ago, total XX% Punchh revenue when XX%. have December in we software a by Contracted scale. delivered from for than within rate driven and we of ARR the a million, of focus XXXX. gross QX intense in gross driven now over business with management coming drive growth the XX% pretty quarter XX% and XX% improvement strong important architecture quarter to scale lines It's ARR At in subscription total effort new for able ago. million year well three our XX, been The of the Brink. one This as This end the been and resulting our growth $XX.X at and company, improved below revenues more acquisition. all from million of driven of over and revenue. by a stepped was revenue coming now an we're growth fourth paving ROI we across $XXX ARR recurring Punchh from year-over-year services reported

driven brings the parse totaled quarter when Unified level continues business a holiday increase to X,XXX the in and On this throughout sites, this near of net a results demand periods low XX% store by the in we number XX,XXX, very strong Platform. QX, significant for was considering across any very have to was extremely as continued execution build were quarter report and high Commerce two ago. established Brink In quarter totals improved Brink We've no churn little, a one X.X% different annualized. continued XXXX. stores if quarter and churn new on strong solid that were Our saw momentum in Cloud cadence X,XXX churn bookings now count total basis and deployments a occur. after from near Brink year QX. activated

Now, turning to Punchh.

most. the in loyalty added critical more your to like now We loyal in impressive contracted customers on XX% in counts with are it continue to that even the suggests where total programs marketing. last our customer and compete. increase logos national POS, We at more of list. to sites value XX,XXX connect flow make or eight quarter, than future the XX to for or focused whether added months. online store through restaurant association their tableside easier order outperform that those than businesses QX brands and signed Punchh, struggle with XXXX the to increase The customer ordering it's delivery, that are restaurant sites new phone restaurants Applications tablet, Punchh restaurant lifetime increasing Digital will if it most

for even stronger. leading growth digital demand the pandemic, ordering during loyalty the the a app rapid in is With

understand number customer LTV unit Restaurants understand profitability. versus need demand. value the expands, interval expand, to moving lifetime the of pulling Punchh customer individual channels more thereby As to are stores

Services are in announce recently Smoothie seeks were quarter, Payment c pleased PAR pipeline segment payments selection store the more momentum to the in the robust engine we the extremely richer significantly by XXXX-plus all to beginning see from King solution in grew use PAR also to We restaurants. stores. as loyalty within and industry

basis. the partner, in new probably is and offering those things across I'm will continue Punchh this integrated upsell customer see increased who's has accelerate year from seeking Brink enterprise trusted a more competitive in additional interest technology an We of and all customer opportunities pricing. payment confident more as to more. and transparent PAR

believe team and acceleration -- ability be steam our seen Although although financial on still meaningful revenue to XXXX in will our it's early to new upsell this We've performance. our early payment’s confidence wins initiatives. our still in customer and given during future notable Moreover, products.

purchase revenues difficult strengthen to environment. sequentially in reported perform quarter Product Product to and continue product upon sales for a restaurant at that been capital several tricky, The even increase. markets. in XX% Our the supply a and has is chain business more so challenged this continues end during difficulties in quarter, year-over-year global improved million and the environment always and well. thrust well the ended pandemic $XX.X recently as

are As those I and impact mentioned chain some not we supply around we associated realities. margin experienced immune the to with have challenges with cost previously, current the

However, work given procurement over able expand and margins as our strong of to we some with teams. were operations the the year actually margins,

same diligently in at a the greater to to sources, inventory. events. and plan any anticipate inflation, supply will time sourcing are shortages, the charges. while of continue increase monitor and and downstream uniquely We Regarding our volatility us diversity chain time, expect predict operations the supplier supply price freight visibility closely specifically, management We upstream create adverse supply to our for we and continued technology vendors real in enabling and help across manage and channels to we chain, partners believe through positioned

briefly year. new quarter million, assigned. orders November, X% we in With in revenues QX XXXX our large are our to contract, as we announced on increase report last in business. In compared a anticipate task government when Now, of to the we of acceleration reported revenues $XX.X

Air documentation. a beyond U.S. ordering $XXX.X As award technical unmanned a and award a for term The has aircraft on IDIQ awarded contract additional original work single the of million Lab software, with two-year of reminder, hardware, order performance small of period Research Force six. counter contract system six-year the

We at the QX, a contract revenue new end of assigned, immediate we task our that contract seeing but backlog orders will the as on grew result direct of million impact $XXX.X award. recognize are are to

In and Intel performance experience in additional XXXX, out growth opportunities and seek continue decade contracts revenue line. value-added within specifically our contract our accelerated contract to to in long we'll leverage excellence, revenue high-tech our where solutions service direct addition work we labor include can that

a where see we now going from perspective. bit things Let talk business about me a

business Looking my its time accelerated innovation. order and back for its benefit its driving very profitable in all driving in been its us operational to business has to communities, on business win. very improvement growth significant stakeholders, progress suppliers, shareholders, Winning to there employees, meaningful We in is our PAR, an at time. long and believe that focus has on its that customers, a its for of

While our has of in demonstratable cost to marketing constantly we're growth term recurring an and This revenue aggressive on operating expense efficiency line we're sales on period R&D line. led dramatic our in also the focused we serve, on given leverage investment gross every items. focus driving, a margin

Platform. to integrate focus cost Unified teams records track bring continue delivering needed individuals our In and organized of engineering the team, addition, growth. product solidify our improvements, leadership proven We of senior we Commerce efficiency discipline to adding on

quicker time to designed While to portfolio, the customer the established better to customers. at needs the critical address linkages collaboration needs. to ensuring innovative while cost-effectively, aligned move and These the quickly new organization ideas foster market with of are to our and across are we same entire product changes structuring bringing

to organizational to growth. bringing our and long-term while As on accountability sustainable maintain discipline recognize revenue realizing we business make to we continue need the focus operational changes, these

As driving specifically I profitable streams. is growth, focus on our a part big revenue earlier, subscription of on mentioned this

where along SGNA excluding drive XX% focus Our cross-sell to this help find example deliver to consistently P$L single opportunities every customer formulate with of of to as XX% this revenue a is model, to almost Brink, up-sell our and ARR to within and is year-over-year stayed Combining flat year. grew great we will new ARR operating XX% A our acquisitions. consistently but every industry in goal leverage expect grow we in only growth leader. signings the with of XXXX while PAR excess within not line ARR

very we're very ADEX the While cognizant years, our the industry three that we've in almost at of we serve. beginning ARR still transformation that we're as grown

product their our goal but create to customers their is a hands. not hope platform power customer to deliver solution in a team want PAR We a energy the that our broader I our team Unified stop Our community. bundled Platform to management unique in on to back building and customer back experience. the and to spend the to members to Commerce vendor Ukraine focusing our that allows our puts on instead based In in send and closing, delivering support

is our performance concern veered on We've primary who items family past allowed financial off few to focus situation It's but to their move focus them course Our monitoring our and Bryan, because I'd wrong us not dedication offer to worked gotten to and we has in like over the together and off when like few winning done review it greater continued With that, quarter. it's key effort future. their safety we will of safety quickly it employees to together. detail. I'd been our assistance. thank but we've PAR's in all easy, also contact a are hand for a right and with the closely the on

Bryan Menar

million the or fourth you, Thank the December Net December $X.X increase the primarily SaaS $XX.X of services the and loss revenue $X.X million fourth XXst, quarter from XXXX. XXst, everyone. three afternoon, which million, XXXX. or net of XXXX increase reported XXXX, our The loss $XX.X million, revenues QX increase million $X.X for X loss of million from in hardware year. XXXX loss $XX.X million services Total million XX.X% same XXXX. increase which per revenues an million in XXXX and or primarily of and to our reported revenue XXXX. of $X.X revenue accounts. XX% ended the million driven contracts X% $X.X an million, revenues the $XX.X support months for in of quarter reported from expand loss Off or per was by services of increase or business of million net for $XX.X recurring $X.XX per for a $XX.X was driven by was million months compared XXXX, year. total $XX reported of same $X.XX prior $XX.X Punchh million Product quarter Government the were The $XX.X both share was was services The the revenue of refresh $X.XX Adjusted Contract an by $XX.X strong to compared the compared million reported $XX.X period revenue or Tier of software in an in hardware quarter $X.XX investments related QX, in Service product includes increase that of the $X.X growth reported of the million share line. million continues was was of was three in Total loss loss contracts. and $XX.X $XX.X recurring the from to product recurring contract net reported services in driven XX% ended $XX.X our of compared included $X.X other million, or million the from million my is The in of domestic to related million $XX.X comprised compared QX share by and for was XXXX. prior XXXX. an the $XX.X share to good related as adjusted in our to million recurring company period Savneet loss QX in million. fourth base, per increase SaaS service revenue

a XXXX. help December of Contract $XXX backlog as compared growth IDIQ of XXXX, significant, XXst, as to the December expect revenue XXst, backlog million of announced We significant XXXX million $XXX.X continues of XXXX. in contract million to contract be QX noting will backlog in $XXX.X drive total

versus mix the revenue. to and Now, margins. due Product to overhead in was XX.X% hardware absorption turning for increase costs, was favorable increased XXXX. favorable quarter of QX to margin The the due XX.X% of primarily in product margin

in XXXX. reflect XXXX. structure. the assets, December was charges driven million million XX, We to amortization of fourth December in $X.X during non-recurring pricing to properly Service quarter XXXX. margin changes to for reported fourth of months XX%, the months XX, margin quarter three Increase core Service ended continue compared taken in included margins of compared to the was XX% intangible identifiable the monitor in the the our quarter during XXXX absorbed three $X.X ended of by

the decrease XX.X% This within growth earlier. Government was as amortization margins commented of rate X.X%, the due X.X% XXXX for contract fourth months Savneet ended to our XX.X% ISR intangible in to quarter three XX, compared the service adjustments fourth to months by Excluding of assets, as XX, the margins compared were margin December business margin for of was our XXXX. was driven the three line XXXX. build ended software XXXX. for December The expanding quarter in

worth operational XXXX. expense compared the million of XXXX. expenses XXXX. QX, be primarily $X.X We The which was Punchh, as million more QX in of going and consistent million with million investments of with to the by $XX to discount, products. Net interest Punchh debt XXXX. was in the entire recorded Increases million of to from convertible recorded allowed trended intense SG&A was an SG&A. The almost increase in and on $X.X million, last related issuance growth non-cash related and $X.X existing driven of from $XX.X total million $X for for GAAP to by $X.X year-over-year interest mentioned, million $X.X Punchh expect compared million XXXX Brink same historical the in quarter expense our in was increase $X.X growth acquisition $X.X million million, That's to Net forward increase costs. that in accretion, million $XX.X interest the is the expand revenue to from for by of R&D focus other Net non-cash amortization margins of $XX.X incremental noting minimal our includes an margins notes. additional stock-based in the driven increase SG&A in driven came QX million is Savneet charges $X.X million us compensation. year. contract investment period primarily profitable reported $XX.X It's

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

used ended months $XX.X year. $XX.X months XX the was the XXst, For proceeds of for Cash in repay million XXst, over from the acquisition. the for was activities interest. $X the loan annual months assets ended million activities million XXst, On Capitalized allowed December million XXXX prior XXXX, ended million save to in used months XXXX, an from operating our in ended versus with by from loss, investing equity of current XXth, offering. versus We proceeds XX result was December was December million cash charges, for the received associated ended Investing XX was increase Cash $XXX.X Cash we XXXX platform, included On XXXX us ended million million by the $X.X activities in term $XX.X cash other XXXX. the in XXst $XXX XXXX. net inventory the for months activities months -tax working used of and with addition in the and XXst million was Punchh offering used assets months the requirements. versus December as $XXX.X $XXX.X of net million for during connection $X December million and pre XXst capital a approximately driven full. common Primarily December hospitality of provided XXst, an $XXX.X the financing XX to non-cash proceeds investments increase because months stock, $XXX.X Refinancing the December XX XXXX our for software of notes for $XXX.X primarily acquisition. million, cash September million increase we software in versus XXst our of net to an various XX additional in XX the consideration net December XXXX, Punchh ended both other for of the $XXX.X XXXX, and for XX the placement the Xth term million prior net ended private net year. of loan. received of a those April proceeds in XXXX, for million $X.X

XXst, from days my government outstanding XXXX. improved XX, at XXXX. and concludes XXst, remarks within at while XXst, a $XXX.X move quarter During $XXX and repurchase XX and net operating formal from December from the use restaurants by days day days which strategically increased the smart sales at XXXX XXst, increased chain within offering investment the retail Inventory of we XX customer to fill on XX companies the increased to the challenge inventory can for to acquisition offering months be supply of majority We now Punchh customers XXst, XX in million proceeds our sales XXXX were as we to and due increased delays stock our $XX.X about volume to which XXXX, outstanding. the service net at and to our This resulted in our by outstanding of revenue sales one of XXXX [Indiscernible] XXXX in enterprise year. This receivable a we XXXX environment. proved $XX.X the offset Q&A. will December a Day ended fourth we hardware notes, reduction to increased $X.X million million supply showing XX,XXXX of historically XX proceeds Accounts in few our received December to of successfully million compared installations, for reflects in received million. And shortages December Day December we XXXX. hand mitigate sales notes. December public high on demand to chain December days

Operator

by stand roster. Q&A compile Please the while Instructions] [Operator we

line of First Tandon Mayank question comes the from Needham. from

is now Your open. line

Mayank Tandon

if the ARR provide and between to giving congrats formal terms that on quarter. the Thank we should of maybe wanted Maybe various think I on side? in you think in we you. about us? numbers they're retail restaurant more the even not how and evening and segments And the thoughts guidance, trajectory how shared the Savneet, some hardware, you services and Good software, could XXXX? on the growth see reconcile with

Savneet Singh

Sure.

where of there's growth beyond and of side this that Brink XX% Data On the we that Punchh year XX% total, Central for Data what that [Indiscernible] that. we forward, and were expect scripts and and In slower that XX% year, do Central it is And grow we to be going expect coming which [Indiscernible] lots side. opportunities services given will for it. go expect to off XX% expect the we bringing on to to a to concerned we're But be. year that's and we be we be to in of range services every to

year On side. the think growth the And year refresh grow talked the which of But But don't have last the in a as that margin's massive we hardware is year we'll on remaining the given services. I or key last remaining call. a XX% then a the product we side, set an year continues nicely have single-digit so year. XX% expanding expected type is growth business, the was on SaaS to refresh services will hardware about that's think, was year, on I growth to up point, and

Mayank Tandon

understating the a space? it, to year. Just to I'm to look should as based double-digit least it restaurant but we modeling comments, rest probably Maybe the is get we on be that say what of of healthy, like want some grow just the at total your low into can at business surmise, fair sense

Savneet Singh

is two, restaurant to given that of our course. if you're of hardware growing recurring combine look very don't as different the it, that We that Yeah, think the revenue much absolutely. what as they're the versus segment at businesses, is, base so side we

Mayank Tandon

profits in could breakeven the you? EBITDA talk for side still do better what in investments, a Got hit When line? priorities to focus about are on quick XXXX, profitability. expect you it. on the then And And of just as maybe then you a follow-up the the or terms your on timeline EBITDA

Savneet Singh

Absolutely.

turn building about it's that's investment investment. expect be we XXXX, you'll shop next we on it's in product. that's managers, have I'd past think goal if in R&D I but talked which sheet, efficiency year. the that while strategic balance of us obviously to on perspective, to and have investor and said, look quickly to at position hit And do cash an we to as as this to very levers we've an break-even it the our comfortable I M&A, clear product coupled line it expect to is to getting I continue from And as But the mentioned, given a really the in to and all we continue for P&L, targeting pretty we're perspective, shipping are From where all quantum and the year. invest expect So, grow to with growing the on investment. P&L. see R&D every grow of ARR you while the there

we so, XXXX. comfortably takes And us very to to which happen we that want expect to year where this be in

Mayank Tandon

sort XXXX Savneet would exit that to be for of profitability to of target? be EBITDA an you all clear, are or referring

Savneet Singh

XXXX. of exit the Before

be it So, year for wouldn't by be full the the it but XXXX. wouldn't -- of end it within -- in

Mayank Tandon

Thank it. much. you Got so

Operator

one the is from Sheldon Blair. Stephen on Next William queue

open. now is line Your

Stephen Sheldon

thanks Hey, guys.

here. payments the like for you King on It Smoothie Just big a first seems win guys. Congrats plan.

payment about as you it, conversations win does are what talked paybacks a potentially call think opportunity, go remarks, if targeting? adopt but enterprise guess it's about potential stepping you point prepared this ammo guess after other to the solutions. give next, potentially how the the with going think you to just you there customers. to And two some that I And You clients of are I more three about reference side other years. back, for then the

Savneet Singh

So, on absolutely. your first question,

the feel really this market we past, the in we'd about in good economics I thought never think when talked we've And there. something accounts we enterprise for be for large. the the

the are just certainly we large margins us But a it's even push market aggressively. down in that push concepts more it where sell with smaller payments. lot and so, to concepts, for And many even work will solution, we but better to more us given given can not confidence us of confidence us also that our

here, So, always And were we good the them, think it. very was made about people feel of for win, attractive business we did really, why obviously wonder but payments the cautious that entire we've customers. to and many other really lot certainly it's but I given it solution and a competitive, super they be will been

existing we this see two, to point-of-sale, from mix you at their the of business And So, high we'll it revenue very, much which faster out, this revenue growth year. velocity contracts, two of we still as meaningful is you'll their get want to But our installments in a a large see if contributor be rolls than for customers years will. in small, we It's will year From expect it to three and to Brink core now. three next be the driver the portion revenue. of to want go very we as to be years, be expect continue. the roll-off a our the it

a one of winning helps my to offsetting that capex business, deployments, you it pulls in So, a mind Brink this is paints allows because from growing peace forward. for tremendous potential parts which actually flexibility our addition growth. the by drive in of the And hardware, site-based deal things it costs maybe in will that accelerates all

lot parts in in XXXX, become we then so, run, But And a payments it of revenue 'XX it considerably a has make going and grow short very expect years forward. the large very next several it and of portion of that attractive.

software revenue, will our our some Now, like no comps, time of of in there's development couldn't in sale XX% a it revenues. don't is it we think reason to down-market but I be situation, whereas in be very meaningful

Stephen Sheldon

And seeing again at Central looking good once for maybe curious front Data hear. shifting, where got last from Yes, house to of maybe we're solutions. color. at focus solutions I restaurant the back-of-house adding Got over to shifting really terms operators years owners that's helpful it. and few Maybe of predominantly in

Our the given Brink a XXXX there? maybe what XXXX you're has essential seeing, how current Data been growth you're than curious about and in for thinking the lot Central and But lower or Punchh. pipeline

Savneet Singh

good very lot driving in the some months and been leader got of a great the got We've we've change who It's there wins on. has new first early. a of two year, early

exciting nearly think innovative that I house not -- pandemic as been back-office as has back the is even restaurant glaring. what's [Indiscernible] made office more about for the front the of

revenue look us we've and so, with think will but be QX but that we inorganic too in good for had. here, only have And say after or of year say of will to the some where would year early wins expect be we early opportunities room we a It a print view year. year. at a lot returning it some to grow here. an also should there's organically seeing if as I It's it's too okay a blowout it QX growth good growth But be in of great we'll see to we not are. focus We'll a increased April, that are

Stephen Sheldon

And just one then quick more Great. one.

the time think I given this quarter. ARR first for have you may contracted

SaaS should I think is all the is that Punchh before [Indiscernible] the think three What you've step-up combined, -- for seems given of it ARR? given about maybe. how businesses million like for we the it that but XXX

Savneet Singh

right. exactly That's

So truly contract. that's really a under

us the dreams, signed and makes hopes very but that's deals about. So across businesses not all which excited

very growth decent year-over-year. a underwrite all grow we even that didn't rate, at if can You

Stephen Sheldon

you. Thank Great. it. Got

Operator

on one Samad is from Next Samana the line Jefferies.

open. line is Your

Samad Samana

But some but contract said to payments Savneet guidance. Thanks, that incremental does to on ARR? your guys include contribution as to does it's Hi, of that you be I want Maybe know I appreciate follow-up revenue -- XX% on questions. one kind payments that my include just or would a there. guardrails great. for taking that the XX% putting

Savneet Singh

high lever the that we the revenue within number our stay project we it. month-over-month. contracted to payments get We're or end that be very the the you've ARR of be us payments heard, very there But conservatively as began -- out to and to [Indiscernible] of surpassed Payments new driver that. were to because growing for way

Samad Samana

clean fair have was sounds to payments stronger layer range. because the environment turbocharge of XX in unpredictable on really comfortable, is a helpful the that said? range. like of relatively may of it that that still demand follow-up we're is sight be it. And the know high-end That's delta And to a just line the the a which what to part what And we in you software world, could but what the is representation Okay. like if to you fairly be just a I XX the going it answered between my you of XX in

Savneet Singh

Yeah. that's a the think right be way it. That I at will look to way it. very simple at to And look

Samad Samana

of appreciate that as speaking Okay. disclosures, we gross color is around additional the And in on there's versus going and just from just I or any about the then type customers live of we that different should that will revenue know off 'XX additional about I think should aware of because I how maybe I that? the how XXXX the trajectory going should presentation, the software of baselining investor be of margins those Bryan, of think of well forward? there but mix, timing XQ, from how XX%, was seasonality wondering, quarter-to-quarter, you move margin

Bryan Menar

our there's actual throughout we were cost manage seasonality year sure there. we year. the in was for Brink out how able margin site on Yeah, no the experienced in we margins What per the to significant our improvement saw business last and during in

we so, strong. this pretty And year exit

so, throughout. on growth will the improvement product we you have that more mix subscription shift, SaaS within expecting to were as But see the we and increase continued services. see And that especially

seasonality. the some And on improvement cost continued themselves, actual no but

Samad Samana

subscription are deal? of how basis ARPU that what seeing maybe type ARPU? a maybe Brink for me. to for historical How seeing the Great. are does about consolidated a doing you're compare when And last Punchh? question standalone And I ARPU, you then for just When core on you multi-product deals PAR, think for the versus

Savneet Singh

Great question.

deals continued. did for across do [Indiscernible] the great discount. raise So, through didn't been of Brink able the is traditional disclose on And we telling in the of multiyear that. customer And We on package really products leaving importantly, [Indiscernible]. all have deployment, are of deals of should to a deal not We're business product for new in side also I being a so prices accelerated But double-digit. we've prices, couple and for ARPU the now. nicely side got the for Brink with in in it's we'll examples we value, double-digits better it, raise XXXX business we're want higher. the up to quoted bring bundling don't deployment. generally, calls and buying What the if a costs that's up we've

So, product Central. and then Brink has by lines, across the most Punchh price significant Data increase followed

even also of lot, supply it margins are in even we a was the pretty Asia, And So, side, lot though focus mentioned but caused expanded considerably I the it increases. this was that raising call, prices. on crazy price hardware but chain on and don't in we a environment, through on we

Samad Samana

very guys. helpful and Great, thank you

Operator

Alright. [Operator Instructions].

is George Craig-Hallum. on one Sutton queue Next from

is now open. line Your

George Sutton

to acquired sell a you. you curious you a that that combination typically started favor. ownership? headquarter your know Punchh one relative do can for Thank how areas versus the as the sales did us see business of one general year give they since let this you of regional when at franchise the And of to also to cross-selling you what and cycle could sense at both you enthusiasm of that sell point-of-sale. more just work level have of the level on I'm in us you if sides and you up We're was, coming a now for has kind

Savneet Singh

with solved that there's the as still us much like will To It's one. make have the lot see it you'll sort in itself never so experience for then we Yeah corporate versus out answer is it. be platform release George of in Where sure months level. call. product six corporate finished new our at convert rolled Sutton. the win the and to change, of which probability think of unified winning to an deal do a to when your comes selling is that the level the of and a amazing Brink franchisees. question deal a Pinterest It's franchisee a and be

of will and to just be last able question, lot solution like value are that upfront. still value so, And it's helping the sell what's But that. when us it the happens, combined until there's And like the of we a I said, on the you the then if that benefit ups out year, be we're can a that we'd before product pull it's here, one, do our to and saying, way. able so we all that get, been say of solution having the hey, this in now

we're point-of-sale the So think to model as model longer is which as the out platform, leverage come that's how ability with handled the opposed today, what a rollout much I it's to is excited the we Punchh model current when our about unified but period.

George Sutton

you. Got

of to service to tables the back And us means that I'm of tell Secondly, happy and we're couple restaurants an you moving pandemic and opportunity? ready give Can era we haven't if table you going heard, you that sitting you offering leaving endemic are an update era. launch had towards the a at back. just really been and your part years on to

Savneet Singh

economy is base That best also as more that that with make the potentially tends a of slowdown, solutions think hold and opportunity. things a on at the [Indiscernible] QSR to existing or more to but invest economic you, looking heads the market. do ordering, is, robust market like our cognizant things in very payments Yes, question. times solution technology. I in [Indiscernible] think year And during we're share the to take our we'll an solve to challenged it's be. that like challenges, great we are recession, [Indiscernible] towards things one place some creative of help circuit we agree We and

feel we'll we little out on way, the sandwiches year. [Indiscernible], market ends so, which we aren't pretty good in later creative that but in And a coming a about both talk very

George Sutton

guys. Thanks Great.

Savneet Singh

Thank you.

Operator

the Capital. Next Adam one line Wyden on is ADW from

Your line is open.

Adam Wyden

invested not this aren't up little cadence talk bringing existing, made PAR about as specific market? the What's growing actually the I how XXX bit I first but cadence of now. management's of pay it kind s. people And criticized after into on technology, the Tier it relates you size the guys Can have Building month. those what But gotten as you're [Indiscernible] haven't about have end bit change kind these ease focus up gas company, out you to Samad relates to a you super chain, that had of and a bottom a coals? little value think funnel. pricing how right Hey ripping the kinds point-of-sales, previous Tier that you on guys, real lowered, Tier are willing you've a basically kind of how a bit all mean, won't to out X questions. and X paid other the couple of pricing another previous pricing. talk to on pricing XXXX-unit guess about the said, [Indiscernible] of Can you thing some rectifying going to but change call of management price is that? little and talk in I over in any when strategy about can the are going $XX to I super X knows of oil

Savneet Singh

Sure.

it I all. you think out, I got all, got cutting I I think were it bit and but a little in

I deals that suffered being we great premiums XXXX, for big is deals lever on the a add question about it's those from this low-priced also ago year. should and first comment us side, Pricing So out. levered. a years In and to pricing committed smart rolling the were a

is are in And important because single CPQ now so, formal on And mentioned, about we can increases we're price. raising rolling any addition, the And the every feel being a working year dramatic with now. good we of see customer This the deals. great products to lower most through we on new getting candidly customers value. growth part very, deal make in done put we're But stable had is Brink very significant very activation and as environment out business some our is ability you margin, in as new from ARPU for is up And to pricing at working is, process. raise product price and underpriced as through itself a to is that because great the we'd Brink I not same, in. this QX In customers, we we it line. and as a the no And price. to that year enterprises And to we raised we Punchh been quality the across demonstrate entrepreneurial do pushback challenges in existing Does demonstrate be the that had we'll product the and we we we'll and well answer that value, had type deals that had customers your -- result, first were question? go product. able raise we're pushback the to has no apply the on expect that and call which having I product product, Brink raising have continue for The back of address.

Adam Wyden

Yeah. on but creating promoter value you that you're product bed getting hard was when in prices net raise money technical as is a the was of to folks, saying is score working. and you've guys sure start for that you're it what demonstrate the making will Basically, you down, invested the lot

But of is XX,XXX process. There's our NCR RP their what other of average a Brink interactive lot people it's charging And kind -- look, what are so, an what point sale. between charging. And cloud of is for for distance

Savneet Singh

us payments market Adam, extremely X I us. which for market is that is sell painless actually the with capex It's sell product get and And in you Tier not Tier then opened I only can Punchh, a X. to of point-of-sale up get things but X which is, you realize offset question, because really Brink, payments. we and juicy your versus healthy Data Tier a for has one was second well Central hardware went you accelerate the very

very so, And processes X expected but to excited really when it aggressive market. accounts healthy that are And more in that a we're and large we in we two. do are -- Tier with be growing, customers is they're much

like that X,XXX about we it We all, to sort but call more up good really stores there's a a that few So, avoiding it RP activity space. about those where from lot XXX at feel sounds very an of, good feel markets perspective. we're

Adam Wyden

and that question We public them get but way, that X my standard the the at now. X Tier is [Indiscernible] XXXX. might to know just card Obviously, clearly the of people by super XXXX is last this hope and charge pricing. This to devastrable multiples can it. in I we went got the Okay. by Tier I extent you value you've can

second But when or mind. is, last in call you of the kind it kind I that keep think just software modules. of work and my let's like So, about question restaurant ecosystem question

the there's to Windows customers. thinking that about all than now. because of there's brain. closer talked And and XX,XXX very you there's pricing a different internal for and include you common guys the XX,XXX, through, hearing programs mean, It's we you to ARPU number's development you when bridge. but service, bit how PowerPoint little see get kind Brink we I Excel kiosks, And there's is talk is, right to the and bridge Microsoft of these the it's we or kind things people between irony high. expert Microsoft little getting that the say I that. XX? value-added Windows. online than to inorganic to drive we're ordering, then of about It's in. about easier about about and where there's going like PowerPoint to very, payments. run hard gap opportunity is modules XX, Brink to rails, itself modules modules it you of a XX,XXX data, you Can substantially and initiatives talk Can about soup payable need then the We're the higher is sell is you're about on where brain. XX,XXX out, you that. these of it's with to existing have get hard the the all Brink are like is is the power large, you it's you And get the that now XXXX Can very to play kind talk hard us things -- to these chicken much organic all all underneath ARPU but that's and get Excel see Presto, to think those. the Brink think I the we underneath But is the on

Savneet Singh

Absolutely.

thesis I as the think mentioned. of higher I that's company, the

back-office, emotion. ton before comfortably We at of a very of call think grow sell, [Indiscernible] earlier, that's management innovation innovation And to that ton have, happening. there's going to happens. I and in lot not obviously what the -- year. I this immense a of that's kitchen, But products a are very the but the the and to We to XX% all there's or mentioned an team a front world. [Indiscernible] also a parts there's of sort XX% happen end.

organically that. aggressively to investing so, And after will we and be get

as ironically, we more it product. said, sell to next becomes products, easier you sell the As

base while very also reflected more gotten in it. good payments much should selling customers, exciting how And quickly, because in it's so, becomes successful momentum the see we across about in and we we've product. so we've incredibly feel us how up these much it's I said, particularly to shown be And as been large been one it nature

Operator

All on Sidoti. one Soderstrom is right, the next from queue Anja

now line open. Your is

Anja Soderstrom

Thank for my you Hi. taking questions.

Just wondering and installments. curious about the

very down the in the and couple of it's a had You little to third slowed quarter, there then from the quarter said bit coming what we expect should strong quarters? fourth you quarter due holidays, first a

Savneet Singh

touch lots of is during installed you It's called planning a forth. don't of QX, little holiday periods an and period, the bit too of time. Ten but and so to activation are so quarter the on stores those say, days because and early generally,

that to mentioned as is XX% the this with could growth activations And quarter We last comfortably. caller strong in, very, combine very expect in to activation. good to be to combo get that XX% us a goal year ARPU the

higher in thing than growth, forward. current big that So, a our which combining us this ARPU this I gauges now going But year. for with is be expect to

Anja Soderstrom

are the Okay. market? and at valuation Thank you. in And you there opportunities opportunities. M&A levels terms and looking competing this in the you you seeing mentioned are What of

Savneet Singh

the have for start would valuations very last which very-very. or It's SaaS maybe part stuff a seen of being week M&A more us. the been of very some I little feel to market not that, still tick very selling say we We markets, on. working impossible. nearly it's challenging, the dynamic. with Hallac about finally that’s two, downward but in private is off and Obviously, and good exciting

talk promote that we've but about but a have team, really numbers, from been the great M&A feel the of culture team. that also we the can can't it, We about we strong obviously from the much the very So the too built obviously successes Punchh, quality open feel you lot we see across great these now without both lot and are to economic that a into businesses. for recession PAR the running like PAR. is potentially for home ability of VC Punchh of a from treadmill we are And home are a Brink we great a businesses

And ways, so, in we very hope that this has changed for many PAR. is beneficial

Anja Soderstrom

was Thank all Okay. from you. That me.

Operator

further on questions [Operator queue, right, There Instruction]. no All are sir.

Bryan Menar

just for rest the and thank evening. like today's enjoy participating of We the you. call then on Thank everyone to

Operator

This concludes for participating. today's Thank conference call. you

You may disconnect. now

PAR Technology (PAR) 2 Mar 222021 Q4 Earnings call transcript