Earnings call transcript Q4 2022

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

Operator

Good day, and thank you for standing by. Welcome to the PAR Technologies Fiscal Year 2022 Fourth Quarter Financial Results. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Chris Byrnes, Senior Vice President of Business Development. Please go ahead.

Chris Byrnes

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

this like I'd are regards to take Participants certain should of call in call this recording morning, we time, care to and be details be the it this playback. morning. call that the on will At aware for available the

a our it any of and If be included use question, live you conference in both future ask recording. will the

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

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

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

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

Savneet Singh

call morning. this thanks the and joining Chris, for Thanks, everyone to

our unified industry. deliver are cash new that report our to customer in as to that aggressively growth experience to highest the rates pleased expand existing continues the satisfaction I'm and our customers, momentum and positive flow business drive we

sections. to As I'm break I've done into going calls, three prior today's on call

finally, results; that results lead will to review strategic XXXX. a of and of on a First, second, thoughts our quarter future review recent some highlights

So first, our results.

dollar metric million, our reached end flow. growth I XX.X% success subscription services measure delivering considerable ARR year-over-year our each increase, previously, QX, - convinced scaling best continued the ARR to demonstrating $XXX.X I'm engine. of cash of At that as stated the dollar under of the remains ARR is each ARR As future a and

at increase of AAR which to and X% compared year-over-year XX% same solutions, ARR stands our experience Operator back grew million consists increase guest to payments, the $XX.X now of Contracted and office. when $XXX.X engagement is the Brink end a an from unified sequential operator QX. last period in QX 'XX million, Today, to year. from in XX.X% Solutions,

During in QX, at be new Operator continues Solutions approximately to bookings low added X,XXX. the and extremely quarter. activations Brink for annualized new Churn XXX store totaled X.X%

aggressive and went we just that. all attaching be continue just majority in Brink live new XXXX wins done XX And with to to payments new significant have customers. deals this past of in in new We see our a customer quarter,

somewhat limitations channels, has impressive this What we've been our transaction past, in growth be of As to an the I this devices, by about with customers. mentioned data most chain which is to consolidate creates conversations payment avenue that up we year. payments like it later expect across framing supply all muted clear

includes best-in-class to development and loyalty be rely ARR demand QX of dollars including our Punchh million. totaled platform newly several in the Guest Punchh very in fast-casual menu. softening acquired saw that customers grew signed leading AAR engagement new customer on XX logos at new and in $XX.X engagement and X,XXX compared guest when to Moving in the of Punchh 'XX, some for 'XX QX QX we QX, loyalty, enterprise live store and in engagement to XX.X% expansion. fund and but rollout marketing quarter. a as went continues to beginning restaurants end

in giving the Even headwind, in forward, and price elasticity slowdown we're be on continue the for going new ARR consistent we're growth. development of for reality expecting year. half funds marketing impacted we Punchh's XXXX but and Cautions this in first a opportunities portfolio turn, our Punchh this minor very for around year-over-year inflation always, with to have customer I we with restaurants as be our growth are to across prepare today. unified bullish forecasting total demand

Updating introducing to the United menu the progress of States.

completed and the booking fair us. allow next opportunities encouraged prospective very number already are feel start our fully Brink, upon with We ordering is We RFPs new which reviews starting early integrated customers. hope excited quarter. in customers received growth a for rave revenue acceleration aggressively. interest and of have of a In we We're menu to menu targeting customer and capabilities from existing in customer the we wins rapid and wins to us QX, start participating

we Central that new Data more brand wings went meaningfully $XX.X logos popular live turnaround existing in in focused XX% and meaningful seven signed control. of in quarter, QX Reported and on QX market We was dining and the sell last cost its continued continue will in a from Notably Office Back casual Punchh in the million to Brink with to -- year's ARR a customers. 'XX. into increase ARR QX. add

Also this QX leader in We booking for space earlier activations stores XXX quarter. scheduling work this being a did own deal, of new reinforce to we validating and had the we signed module. of in stores labor displaced scheduling, our the market strong

and seem improving for continue present. have increased chain that issues to and applications We ever profitability back-of-house and supply technology and costs labor to margins inflation, food control as labor impact to demand be direct a see on

on the technical from want from I our on bit our of development. spend spend shift debt resources of time results, focus Last Moving about and quarter, the our to on initiatives. R&D three product to new R&D a I freezing of talked strategic

feel to confident the R&D future PAR spend. without journey to products continue natural adding behind and will new this see from debt increase to momentum technical shift We allow development new

effectuate giving sales contact this cross-sell drive sales our our of of basis an XXX help we with customers Commerce. one our team products, to better all that PAR level. parts can in PAR to concept own account enhance rereview to It understand allows every team review a have management streamlined Unified This of sales plan of you each QX, gives have consolidated our that us at to customer's across promotion create PAR existing and our customers view to also though, of a on focus, is relationship so account our account-by-account cross-sell. customers the PAR simultaneously of allows XXX the with the team to R&D of Alongside we we accounts. to our performance sell more our performance an go-to-market In and accountability a thereby

a sales team is provide we our still partnered products to with These hunter logo, in that customers. strong the are direct account managers technologies and and

see utility satisfaction, making of accounts group a offering and the to and the thereby becomes contact manage our and this right evident, upsells. greater balancing more for integrated unified a As we'll greater also point renewals at LTV more of customer strategic need a more price, level,

A in good our example signing and -- customer platforms large with has been in XXX-plus that Punchh that their stores. of POS recent engagement to drive guest [indiscernible] implemented enterprise efficiency this is implemented with our and of and restaurant tandem both experience enhance Brink momentum their a operator solutions

needs deliver closely experience. avenues the tasked and products out deliver with our to find team with will [indiscernible] and solve value, working new our roll that we account unified for their As manager be can

our general, part large new a the our than entry chains. our service to ARPU overpromising clients QX, rates move much, in second large expansion. in cautious previously market addressable We've as of. well-known and Brink's and out market. that commitments up subscription table but we will service base continued made too have two service notable been higher QSR and opens strategic QX more Table they and in require and received pay into The stayed not was monthly Table customers terminals from service we drive functionality table

that office payments What's both two our offerings, also strategic products highlighting highlighting our wins. candidly customers exciting first how our took about simplicity of back and is fit the and commitments

made more wants products away in-store, and about -- seamlessly. wants to the products digitization the anything our new else their restaurant much the and technology, the work work is customers be than of move to from today, While

third a technology longer experience restaurants global PAR is continues for solutions business The restaurants. PAR complexity homegrown Business to want change economy, data. In sustained This creates update as becoming and adapt keep enterprise unified on pace. no their can for strategic touch increase their I is opportunity evolve must-have to and today's and platforms. challenged a models

to Digital and analytics data all analytics. enormous approaches transformation data within following creating with restaurant enterprises and that conventional unmanageable on is are

day restaurants mature and this data significant management serves amounts for delivering value the their of becomes massive for analytics data that out. in and has employee transactional in This our the analytics. foundation As for data Data practices, day includes unwieldy. approach and through of for enterprise PAR customers the learning-based capture Punchh unified to the is machine To and customers for actionable experience the their as PAR identity customer customers offering, Central. data personalization inventory real-time provides data Brink, data

loyalty a three billion adults of transactions years generate every and of out example an Punchh this a five scale, program As use power year. $X.X

efficiencies of We make use data can analytics these allows enterprise on customer guest to analytical analytics, analysis mission-critical This including their reporting drive for capability end campaign form profitability. to operational ways. our this optimize data day, right the at and the data analytics. self-service in and of optimize the a can own in export performance Customers engagement, Customers customers demand visualization. itself, to and restaurants available employees this product insights variety and their raw

critical automation. data world become embraces intelligence, sets believe we the these that artificial in and As will models,

the on turn numbers. I'll call more the Bryan for Now over to details

Bryan Menar

and Thank morning, everyone. good you, Savneet

highlight to details, into going presentation. I'd financial change the to our important financial reporting an like Before

financial the With SaaS statement of services, processing and a items, subscription our payment solutions, items We presentation provider. costs our is platform services. and recurring and true consisting FSLIs. new of of have technology services PAR's This retroactively related line professional change transformation subscription into services support revenues a to result across services software transaction-based split our line

relate annual and metric. of services, as including portfolio other training, Professional services as and represents well XXX% related services support of our installation. on-site technical hardware recurring portfolio Subscription repair revenue costs implementation, our to support revenues our and -- to

In addition product to services hardware. items have name we to the items, the line splitting changed line

XX.X% ended and ended to an compared of coming growth the XXXX, $XX.X Total segments. with revenues from for months million retail XXXX, to performance. three on both the restaurant increase December the Now months XX, were government XX, three December financial

or per the share XXXX loss of loss net share XXXX or adjusted net or in to for $XX.X million XXXX. for $XX.X the was loss per loss loss or same Adjusted net a an million quarter $X.XX for fourth $X.X $X fourth loss per was in period million loss reported of period share million Net compared the of the per same $X.XX in $X.XX share compared XXXX. $X.XX to quarter of loss

for quarter EBITDA EBITDA $XX.X Adjusted $XX.X from XXXX. an in loss fourth of prior of loss compared or million, sales. same high quarter the $X.X the reported the was the million for a Both of adjusted periods $X.X period of was year. hardware for $X.X decrease revenue million in were the in X.X% million a Hardware to million XXXX historically

Tier see increase the continue driven We guest million sales XX% from $XX.X Subscription the our revenue by in print reported revenue $XX.X an year, at of solutions. prior our customers million, engagement X legacy and service from to hardware base. our customer was strong million reported across $X.X both or with

The within quarter XX.X% adjustments solutions. operator XX%. QX million, QX of exiting and $X.X year-to-date services compared an XX.X%, engagement of included subscription of to our XX.X% guest $XXX.X recurring increase the guest back solutions up house engagement revenue with XXXX approximately up was annual of million revenue

at year, engagement of million was or revenue solutions increase reported the implementations. million, operator $X.X driven an by repair XX.X% the and in services, service from prior Professional hardware $XX.X $XX.X million reported guest

the services which contracts subscription in base, million, XXXX. Contract hardware or our to $XX.X an the services and of with support quarter business million from revenue QX revenue recurring $XX of increase XXXX, from an professional expand Government within in total continues Our reported the includes $X.X to in was QX $XX.X million million million fourth compared both $XX.X increase of XX.X% XX.X% reported XXXX.

in The contract driven resulting was increase driven by increase by Counter task increase solutions orders in Small ISR The in the was contract AFRL $X.X a from million our revenues UAS as solutions. Contract The our with $XXX XX, to government of XX, increase as XXXX. compared December $XXX of XXXX, was backlog in the an awarded XX% backlog million, million December of business XXXX. associated ISR

backlog as the $XX of compared XXX% Total $XX to XXXX, December million, XX, funded funded the backlog increase was year. million prior a for of

QX in margins XXXX. the Hardware versus XX.X% to was for turning margins. quarter Now XX.X%

to XX.X% premium strategically quarter at market was margins. our for to supply our so XXXX. continue maintaining provide competitive pricing to Services compared the Subscription We margin in we manage continue products reported changes and chain while customers pricing can quarter both in XX% of the fourth to

We more pricing multiyear margin services have our driving successful improved rigor and we support in hosting improvement to services validate process value proposition improvements our subscription customers. utilization, been with within as

We improvement see for continue enter XXXX. to additional as opportunities we

during amortization assets million included XX, compared of ended three the XX, the identifiable amortization during XXXX, $X.X service margin months Subscription million intangible ended months to December of $X.X of three XXXX. December

quarter compared XXXX. to total adjusted the XXXX. the XX% in service margin three to XX% December services subscription of Excluding quarter December compared reported months for the fourth amortization XX, for Professional months of XXXX, the the margin intangible XX.X% assets, for ended XX.X% three XX, ended was was

Government The quarter The in improvement of to is an for the as labor reserves. X.X% an margins margin compared and hardware contract margins. decrease was material direct XXXX. driven increase costs, in loss were mission repair fourth system driven with increase X.X% along by in by

We following the operating In in revert quarters. to X% back to to historical to expect norms X% margins of expenses. regards

$XX.X Net $X.X decreased from excluding to in million increase R&D million the million million, million when $XX.X in MENU. related reported $XX.X recorded QX million from expenses X.X% million was of XXXX. was $X or of $XX of million, XXXX. an SG&A $X.X SG&A the increase QX GAAP an $X.X

in for non-GAAP fourth Included or for reduction the $X.X the quarter of R&D in the a adjustments, out the million XX%. was expenses Backing MENU contingent operating million growth in value fair acquisition. $X.X consideration and the liability is MENU

adjustment adjustment. $XX.X This liability operating is totaled expense contra a Total non-GAAP excluding expenses, million. contingent the

plan recorded compared our million earlier, flat million $X.X XXXX. interest through in stated $X.X to XXXX. expenses Net hold QX Savneet XXXX quarterly from As of is operating was to QX QX

debt that the conversion a accounted from in debt wholly driven and of was for requirement as January our record accretion securities XXXX adoption for decrease resulted to by reduction convertible X, resulting The accretion our pronouncement the negated feature. being

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

million For used the XX prior cash December operating XX, was activities year. $XX.X for the in versus million months ended $XX.X

charges driven of by and working primarily net requirements loss, in Increase were needs primarily the cash growth Operating our working noncash additional business. to net capital net capital net of was requirements. due

reducing reduce to are the and by $X over We to following million quarters. June another $X since XXXX, million $X have been two combined million able inventory gross XX, focusing on

costs acquisition. million. consideration $X.X for maturity. QX technology December -- was MENU QX to $XX.X $X.X Investing million Cash development XX cash XX investing $XX.X for QX XX million versus and prior drive-through for used the of of the notes in sorry, million $XXX the XX activities and was acquisition December consideration XX months the be year. ended XXXX the treasury short-term million purchase $XX.X million for of for cash the months software tuck-in XX for to bills during XXXX the months ended held the ended December activities for Capitalized U.S. included

of financing December December the the months $X.X XX of was versus by used December for XX year. was days restaurant as XXXX segment XX as Financing in $XXX.X activities XX, XX activities prior to activities compensation-related million of transactions. days from sales financing stock-based XX, driven million provided by These retail XXXX, ended within XXXX. decreased cash outstanding for for Cash

XXXX, These with was days the Government XX of of days December XX, sales within segment as December XX consistent outstanding as XXXX. XX, and

remediated in we financial back over have the operating Before reporting effectively. internal Savneet, our are material the I that to returning to pleased report weaknesses am call fully controls

back for to prior over moving call the closing Q&A. remarks turn to to now will Savneet I

Savneet Singh

Bryan. Thanks,

XXXX. outlook for our to Transitioning

to demand continue at see across business our PAR. We strong

-- to see of see growth we macro segment slowness Punchh some in our the line, product in we strongly given the from expect While our environment, feel other business. every

of in solutions Central and attachment comes a combination soon operator dynamic become Data Our next. has Brink payments the MENU of and

grow to a XXXX similar to XX% is year XX% this for goal and year. ARR Our at rates continue between our to

by and around growth the As approach. differentiated, unified our sector, the ability driven rates think growth our maintain is see we look we decelerating to

to the provide. drive than product value continue customers able given the unified, more Our we and we're to in price once buy one

our to our this macro more defensible. must growth we that at deliver PAR, happens, that Part is our thereby we and continue ensure and demonstrate The that we'll ROI making win excuse shareholders. customers no is at a to teams push such what for our not must buying the an from matter they not know one experience looking product are but entire even PAR of

and I to product show As we this out we'll demonstrate strong have proof new believe our to clearly in XXXX, roll points offerings customers.

efforts to to want reaffirm we driving profitability. revenue addition growth, our to our our In focus to on maintain

we dollar As expenses we call, are every the flat to XXXX, to keeping stated last added on XXXX allowing gross from margin of QX operating our hit QX line. bottom

control cost is historical around expense. controls to example good SG&A highlight on focus Our is not cost A our new.

our MENU, to during while while needed not though been overhead. have able of that increase come hides revenue continually and XX.X%. IT. with PAR growth, ARR number internal We've increasing investments MENU we've to areas able SG&A Excluding grow been this costs declined grew down actually XXXX, acquisition, in is sales while this What

As intend to discipline hold the that same R&D we line. our to costs, we've SG&A proven demonstrate on now ability

we environment manner. and efficient an the at So through may do PAR macro while grow environment challenged continue incredibly in be so to hope 'XX, for to the

a success. open past to of I'll people for that, As meet and company for at while Across for the always, time, Operator? the needs sustainable PAR's up thank the we organization, have the create Q&A. effort changes same the call dedication embracing like With over customers, quarter. necessary employees ensure our to I'd the all of to long-term the stepped

Operator

Nance Instructions] Sachs. [Operator from Goldman Our you. Will comes first Thank with question

line is open. Your

Will Nance

maybe and questions. what kind in I across follow-up provide XXXX you you're just of the morning. good 'XX? talk you a guys, in of little guess, I half bit towards back of level the back could the out part about demand could you market? weakness latter of taking I color of want And guess Punchh, seeing in Appreciate more Savneet, on the coming Hi, QX the confidence you some the that to of called early

Savneet Singh

Sure.

what's Punchh marketing thought, economy And they you December in in And Punchh. push of Brink these their to basically these development expenses. royalties deal end funded is marketing out on through concepts we for of funds back tied times cut or and the know that the - from most So it very challenge during the called tend to franchisees.

And so we we have rebound our expect from conversations with this to customers. the

- wanted don't I As sort - all some to slowdown there's growth transparent we material expenses next chains we'll 'XX. of we don't a in on marketing year. have I think that But on our said, impact for restaurant be across

Will Nance

guess you and something upsize I maybe of a the of ARPU this talk maybe just products. an that of lower QSR. it, like talk in - year, weakness you're of can kind operator locations could some mean, the mentioned Brink is seeing is you some trends with ARPU then that largely you there on just you line that's seeing else changing ARPU sense. the guidance on then uplifts follow-up and function the to that are of And table what expectations? in the a guidance Punchh relative through sort quick ARPU makes if or I'm line Got year, of in last on services of range kind ARPU, the seeing I like And those kind through wondering of guys just

Savneet Singh

that if one as been environment. our seen is higher, think, slow think -- take to think again, I we would Punchh, want which maintain unique to this hadn't that felt the hit year-over-year, first, trying the revenue we growth obviously, Yes, we in And in sure I I'll make last numbers. but it we're I have we

guidance how number. So, that's to kind got our of we

what first was Will? it part your question, of the On

Will Nance

higher ARPU there? on mentioned, guidance You table so is [indiscernible] the

Savneet Singh

sure. for Yes,

of We side, number commitments, widely server table times working received been terminals of kept we've we've off of to the the table pocket, very we've the had, service on to back in two changed function of priced sort our in enable in market. but Brink often first that his store. price, kind POS So is

a table are So terminals, dozen you will concepts half you that that can some have service XX. some have have,

So they do vary tremendously.

service have that depending the XXX%, two I of I'd uplift the gotten, chain we've or size unique our XX, and general, first and think What's will In extra is table two say also a on of concept. special they've products. other the commitments taken between in

we'll were going service I market. a forward as all think deals. And So that's bundled see a trend table they

uplift, it's function ARPU just So, a get of to is up think not market. that which we'll I the Brink

more I also we have bundle think it's too. that ability in to market,

Will Nance

taking Thank you appreciate Awesome, the questions. you.

Operator

next moment One with question. Jefferies. our It for comes Thank from Samana you. Samad

Your line open. is

Samad Samana

morning. Thanks my taking Hey, good questions. for

implies about So sounds I on core some era is well. just - that doing downtick, the of between the XXXX quite follow- of what the maybe that a Savneet but up pieces? like how core Punchh a actually should business outlook, maybe different maybe the think are that think the assumptions we It underlying bit

the just growth? help the us that different products maybe that assumptions - now are driving several there's So understand

Savneet Singh

for Yes, sure.

planning a I for every So, - on and 'XX. software acceleration were think, has PAR I other we from of the potential side, think segment

have Data will verse rate have meaningfully growth 'XX. of Brink, will faster in should 'XX. faster and payments know 'XX obviously So, in have, faster growth you verse Central 'XX,

so And optimism, I And want to the reason rebounds, you you so, the business be we're rest Punchh for why but marketing and the and cautious And, what seeing, excited. really of know, super know super, strong. seeing. given said, we're is there's, we

Samad Samana

is to as to the it's of we think of we think it? rate, that that started the potential up now some using we That's whether on we any of takeaways side, in adopt move size any and willing think about through payment see about Is forward attach early within the helpful. or observations kind payments, early that's there? do a the can And we're maybe on that then go kind are that it the side, time all the the that can you've if chain average just payments, chain franchises you're typically seeing can

Savneet Singh

question. great it's So a

And so segment, channel XX way is, Smoothie question to a King, we customers have know, which we well that all first really year, which stores. which the range the you if over are, up you announced earlier you from of are, our in X,XXX wide stores, know, it's is, customers, the will,

So, it's obviously lot which positive thing. we a than wider is expected, a

couple year, I think into as roll happening. we you'll exciting things see this a

payments our product. into is and a transactions, software our where payments some to we'll is expanded business One lot with more ways Apple have than just business. announcements we've interesting partnerships some gateway cool And around build processing around VAS a really

that on I findings took the is payments. trend Brink relatively have, this strong not will see year So XX% big we only penetration think you'll of

up-sells see that base. portfolio But we'll also really for the product natural expanding are customer

so behalf really franchisees. for little On they're positive So, entire so signed is your up a concept, uptake. far, which a of make we're different, all - for seeing strong all last on most are deal they taking, their a end us of bit the deals question, the that it's them we've payments

Samad Samana

on Great healthy that very as growth and the helpful strong well. margins the and congrats

Savneet Singh

Thanks

Operator

and comes Peterson Kyle with from Company. question next Needham Our

Your open. is line

Kyle Peterson

on for Data want see This taking the right of in back Great, good kind a is touch is is little guys. Mayank. Good the business? to to bit expect a thanks or of earlier part of And - Should Kyle kind morning, a there still in the questions. after continue for that little to bit just This Central. morning, ARR that year. of on the the for heading of we direction choppiness lull there ahead

Savneet Singh

accelerate, here. it it You expect better will from get to so should actually,

we As out are market I in that as in new know, also kind should signed And attachment stride, our with far it mentioned to script, so service I hit fit, accelerate. taking Brink product you the we've as expect deals Central. logos, table general, figuring chains Data these you think of

think grew Data XX% I this year Central. XX%, of we in sort

'XX. than higher grow We in meaningfully expect to that

Punchh. the the last year I actually mentioned, all expect call, do outside as perspective, lines percentage better So we from product of growth a this

Kyle Peterson

Okay, or the I guess, about of guess, second we Punchh, the at like least helpful. but half that's thinking year, be then that about think just that kind the the better, blip progresses far, to guys it business I year I change of that as seasonality little so the of is error or to a getting really sounds And maybe should better kind Punchh have the rate guess within or seen kind whole growth product? is you of across the only

Savneet Singh

I the think it'll be year. consistent through

- meaningful business. We're So the in up, models. to we of from not parts it we'll like make I think other Punchh seasonality budgeting feel our

Kyle Peterson

Great, thanks, guys.

Operator

Thank you. One moment.

Our question next comes Capital. Wyden from ADW with Adam

line Your open. is

Adam Wyden

that's talk guys, you incumbents know, NCR. sort then And Wild Wings? guys, those Oracle are been of relates Buffalo you product. to for you chains, like about taking a and of of while. super of, super as of the bit it's ARPU product lot sort you And my to a of questions. obviously, one thank sort high Hi, I slow And because, little service sort sort big to a I product, and would want just, that's, table been of a that for mentioned guys like have talking two big about high

is of road Because a could big changer, out? map? I is this that sort this in I you're what I units kind you pipeline I sort the mean, terminals. of, sort obviously, is getting that sort quickly mean, sort of think, roll is, your of of logo and of we talk game it's can how huge great what product you whatever of with mean. of and table for expect, terms about sort Can of ARPU a service, of sort lots

Savneet Singh

the of two higher meaningfully what's in rolling question, them XXX% second ARPU. number varies XXX% first are that market. We'll the are so we cost this it service the table service out again, our of on first tremendously The There higher there year. half higher of are signed on is and on look exciting QX. table talked XX% average to they the as we are XX%, start So so depending deals than chains last the and at average, late chains to Brink are And configurations, half, forth. terminals end that

interesting in So it, let's meaningful I really the the service call -- excuse what ARPU. transactions the higher. have And them our the really a de a, here are it's payments -- product. are last in But question wide general, think print in meaningfully me, volume a restaurant in we'll range. facto difference mentioned of I is even our that chain also a to the we part last the a And of of GMV -- taking is call price have, will pipeline is low almost source most table table payments

creates potentially the And table have payments and service chain. it strong a within so so higher opportunity could payments ARPU really also we

So those be pipeline think responses relatively able Historically, pipeline, even chosen of that to there trends actually we'll And RP, We change when And far the as you that those not smaller right. enter well-known of market. brands, enter a first ones RFPs. as of we the weren't we'll to ready. look given are want to of are two. nice get as our we've as tailwinds a chains. larger the lot nice We've that got I got we've first to then are enter come bigger those RFPs. to leverage And couple midsized

Adam Wyden

didn't the sort haven't -- think sort plus to analytics you you you mention of that of, of Good. sort data PAR platform but talk sort other we and mean expense have data, of sort I as and that. four I another you a the power shifted but And mentioned I unified really the commerce I but R&D products. Can -- mean a MENU, of new about about mean Obviously, everyone's and think, was all MENU. or of PAR of analytics modules you is about the Can sort sort then of part talking talk like products. got UCP I was of it's driver you've another that getting big -- around really because about lot thing Punchh talked

of you I should products, natural and that have some vertical all hedging mechanism. there these -- there mean be your now should sort other

I I've Punchh. new And talk offset question. seeing You're one got about you then sort products? mean the data central can of sort last portfolio of of

Savneet Singh

Sure.

is portfolio the doing So great.

-- we that. up quite a mentioned, PAR for see launched I we also any coming But products. that of so we rest products, unified This built As potential which our the in first year, we're make bit our of multiple we in feel confident products Punchh can after that have not portfolio off 'XX. are are

from of you think product them only really that So get value the have portfolio. you as -- can if products

a couple new be a levers, payments will products. bunch later those I And so got then year. we've of of mentioned, And launched other as this

of new And growing. to create as parts mentioned leverage the then so is insights to this data customer. remarks, the all I my exciting portfolio what's back is in one to And ability happening the the about

create At hope to can such allows I the intelligence. today, us some conversation -- models, we that enter actually these that a they But for much customer. will can point, more have leverage for with data all strategic

POS because the if you a there. us They're data. went look challenge as, at product I at there. looking solve data us most help it an product them relationship longer online-ordering they restaurants, think that's to a So have of That's hey, to for that lot as they no

They pulling truly insights you're of relatively data. are lack endless amount the the of linearity, really well. have connects limited of still from the But data because integrity, do none it it

so multiple think products, products, -- seeing think choose of which having more change that suite able think customers you're the you're seeing I to I the by continue. conversation. results, and and And I is we're that we will And more

Bryan Menar

the also us is it also that well fact have having to existing opportunity our have to that we have one with smooth sites that. take a for the also add that unified we're our I as as that and large out accelerate we with now we in any -- aligning cross-sell kind and and we of have the going very and sales organization product. to think be white any drive the to allows helping space individual headwinds data would That's to that

Adam Wyden

I sort it. of or all up of I Got it's the little at sort eggs like of market portfolio, a and I it gross SS&C in when PAR about of originally, one-stop I think think a low manager. going and all And when invested grown as adult, rest. sort think about PAR, And low mean for And the was the shop asset just business SS&C, then on in net I is SS&C I bought mean, product the it was Brink look back about when I access promoter sort what margin.

-- many and Now products how coming we've knows online. God got more

this you sort tech sort talk about and million, I about little Can in what you you basically sort $XX talk funded venture of the I realities that your know of M&A Can M&A, $XX sort bought Punchh companies mean, of liquidity of the know sort the last about market resort. on on $XX those I of be $XX to and IPO ARR. mean, good higher talk now like? about going companies, many, to I of into little sort events money, seeing money the MENU, And of products. that then SPAC bit restaurant a was looks indefinitely. environment environment magic, sort but million must thought the do this million, a are execute think meaningful you terms Can over higher. And M&A lender tuck-in like sort are and million this a bit companies like what little a have funds easy ARR a of of sort $XX you the can bit year? an for at that million, lot of you're like million, able days $XX pipeline you are many free what I being of Because that of as more closed the aqua originally, in talk in is M&A? of which really I are look ramp? M&A a need sort doing

Savneet Singh

Sure.

going two in to break I'm parts. it So

acquisitions, that over you relatively changed. the I has completely make all smaller, are the Those are mentioned ready at tuck-in that think if companies you acquisitions and [indiscernible] So it potentially few think to so and market call I a look years. multiples They the deal. wanted last rational the highest

that those product today the PAR. that product have you one there suite. talked we a things can't think haven't where SG&A grow continue And can to of number distribute figuring because so sort we're add the acquisitions engaged outside expense to we that side be we I out potentially through I see, making we at in able and a And We sales want something our of can the have we want targets leverage is don't And is but what of that's to lot, I can the think haven't the with want buy we always a of our as sure a we grown we yet business really technology key that cool that leverage it's to force most business about years, couple meaningfully. of base. of it's efficiency, think impressive we to really to

lot So more there's to years. previous there's than a in do there been

the I year happen come value there I interesting that and be markets our over scale next, larger space I think part the or that have know, transactions is the though will I gotten other as think you market much years, the in because have think is synergy but fruition. The but about, don't rational, ask a of two strategic didn't of

larger our customers to think work I partners. want with

with VCs small do meaningful is now as think And funding where to and I previously, on it's is R&D hard amount a you the expense innovation scale. suggested, the I think of to that, keep capital their up

so to come is creates of get twice difference versus a also ours a we investments. R&D to push if meaningful a small were continue trying competitor And profitability And that the size, to the big in. to

could see that our we happened well, which also very as market the things time valuable really in I scale hasn't will loosen space. become so of a think And and end long up potentially in in I think

for Adam, we've jump you thank to other to got questions but after two this, questions. your

Operator

One moment. you. Thank

question a from Stephen William Sheldon have We with Blair.

Your open. line is

Stephen Sheldon

morning. good Hi,

to Just one bounce gross back me. from higher I the services ask Nice wanted about subscription here this margin. quarter.

sooner payments. happened that would think given MENU I have a drag I the than and expected from little

services pieces for just and So about in subscription talk XXXX? some of under you the potential moving how can margin you're about gross thinking the that

Savneet Singh

I products hides are of Again, year. think XXXX, meaningfully our in payments a margin XXs for -- little sort think a though, do MENU gross I of we'll the and schedule We that below from ahead still the of have low we is thought. than bit be perspective. that rest

margins and on higher. large products MENU we I and so expect core too. get are And And rate eventually to our gross think products our meaningfully payments there, our run

a coming be And years. really in should gross continued the for so tailwind nice margins there

think dollar on there. depending for So payments revenue in Punchh. from -- gross potentially when of quickly, base of there cost lot on roll out sort lot and it of customers the a it we being has MENU year. XXs came impact I every meaningful base us a starting the back as the catch-up you'll Again, the some And it see a is low margin

Bryan Menar

our on starting in we And regards more Correct. those and on continued gets the gather And operator was from then QX, in both and improvement to that we're mass. are margins. the improvement efficiencies addition right, QX each that to to what as critical getting to on more it that, payments we saw solutions, Brink from quarter

Stephen Sheldon

you. Great. Thank

Operator

you. Thank

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

line is open. Your

George Sutton

Savneet. you, Thank

a restructured of Given impact obviously Punchh particular and obviously, that previously question. the into And What you sales folks seen that with you thinking force, think folks from regional selling you level. and and a into sort that others selling level headquarters franchise at the in had do Brink you've Punchh of restructure? perspective an at I'm

Savneet Singh

question. It's a great

enterprise the we which separate franchise call team. internally then So we our SAM, out and team, still

you're selling Punchh is as in corporate guys to which the level, depending keep business, you a because to selling we always relationship to a we'll the a deal, or right, those win but chain to months at an So years, or the distinct win a a sale, and size the on enterprise which is center franchisee its suggesting have. Brink data is of small

great. haven't we franchise excellent automatic So disrupted team an and just And always the that that. have is we'll and process is that

customers. can But On tell results, of I the impact right about it view early talk we enjoy I it. is, now, now of the it's do to too you, a about have question what the of way

got and pin current payments now are don't payments and okay, using say, our arms and that to better. products, their points, if base much -- our customer salesforce cross-sell a contract has So we've the of us and And it into -- three six have that months. is has these this hey, in they ends go to

to but create leads look think a existing I So done I haven't way. historically, to we it, effectively cross-sell ability that done base, into at we've team's in where our it systematic

contract data mapped every up, their -- but they when when single of that they say, when the to then more come -- out how account Now now the next a much data they And MENU, and picture build the when -- for so have have okay, we here's Brink, central, expiry not off happens. are and of RFPs payments opportunity opportunities here's where they we've they're have works. have

business small I as completely So said, it's on And it's a really team. focus from cross-sell. delineated the franchise

George Sutton

give three I I said finally, could correctly. you And sure things make of if kind you to that want Great. heard just that I point exclamation

which thought. meaningfully than we payments, you customers more think attached new is XX said I in

unit a that's X,XXX which being significant I'd to say, service. casual mentioned normal You relative fast And then quick scheduling something, labor lastly, casual the enterprise, fast the takeaway.

wondered I briefly labor address We items. about haven't if scheduling. those could much you three talked just

Savneet Singh

yes. first and two the is So yes

from new found deals great. said, And all new every we've then as I all channel partners there. deals, payments the come is a way payments. really chunk of bookings Brink really Brink our the we push have decent our payment year, our -- a mentioned, as to And have I aggressively So almost Brink doing from and

kind same salesperson. helped really the of prior selling just that's us in to more question, I of which feel well, from it's kind attack hedging think the confident more So

been has realizing that but the also So a scheduling the and inventory on side, a there and Central than is leadership product COGS, module. effectively lot in also the labor Data data in central around of strong beautiful work more

lot And so we've that. marketing now effort. did a the earlier year a highlight in of to work got that And we

modules used there. it more candidly meaningfully of which bundle never expect As to sites the is be realize logos, within And monetizing I free to I Data this and growth customers business was even for or part mentioned, give it's that was than Central, also just but of these we in it 'XX.

and monetizing and products of pulling kind that are And our so class. those in products apart of best realizing it's

And strategic more going so a much way to it's market. of

George Sutton

Super. Thank you.

Operator

question. Thank you. One moment for next our

from We have Sidoti. Anja from Soderstrom question a

Your line is open.

Anja Soderstrom

that you data? Hi, base? customer I'm data. the own curious all And questions. our taking you have just but about thank sort Actually, current for of of them been of Do your addressed, you use can outside that

Savneet Singh

and answer question, data a we it the are It's complicated monetize is, But able to depends that short on anonymized the in customer. way.

that I have we an products don't don't can build that suggesting that and lot data. around our Now customers, is intention do -- our we for the data I to actually a think of leveraging excitement

get. as even I And if a But to think every are to single we have to payments, customer know our we we us. customer, has the also every pull conversation what's way those change and in because I single insights exciting hard the transcript, a mentioned that's products so and up that can it's transaction,

for us. exciting pretty that's So

Anja Soderstrom

for Thank all Okay. That's you. me.

Operator

other in back no to are for queue. Singh the turn I'd There questions like the call closing remarks. to Savneet

Savneet Singh

our for next progress forward you Thanks, to our look everyone the joining call. updating on We call.

Operator

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

now may You disconnect.

PAR Technology (PAR) 1 Mar 232022 Q4 Earnings call transcript