Earnings call transcript Q2 2023

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

Operator

Good day and thank you for standing by. Welcome to PAR Technologies’ Second Quarter 2023 Financial Results. 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] Please be advised, today’s conference is being recorded.

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

Christopher Byrnes

joining Thank Thank second good and XXXX us for quarter call. you, Technologies for results afternoon, financial PAR James, you everyone.

issued was our this on the close release afternoon press of is and earnings at Our posed website. market

call Financial Chief to will Bryan Menar, and me the today call Officer; we session. on question-and-answer remarks, are company’s a Executive Officer. Chief With open preliminary the Savneet Singh, PAR’s After the

the we this forth our today actual projections our factors, to encourage are and During such these in Securities statements SEC more statements and business Due that our may Commission. with important that factors press earnings of filings. set forward-looking Exchange including call caption set statements, make fully under release results statements. forth filed described under These read are related and investors we may would of laws, to forward-looking results. number in to Securities future differ in risk operating be factors materially other considered the a reports those Federal all from issued We

Relations be can for be this in found at GAAP which discussed measures call. in A quarter conference page. XXXX Investor reconciliation second our Additionally, financial measures is non-GAAP and release the presentation, investor will comparable directly available most on financial also earnings the press www.partech.com

would Savneet I like the over Officer, Singh. that, With Executive turn our call to to Savneet. Chief

Savneet Singh

using infrastructure. offerings cost a enabler, and at seamless, strong effective create second PAR PAR are delivered types Restaurants afternoon. more and results. of the In Thanks, stages growth to all simpler leveraging as their good quarter, Chris and our all again

remarkably our I have is In my opportunity message with to integration privilege the sit our as I’m top partners hearing face-to-face The consistent. down PAR regularly. customers and position CEO,

convert But customer enterprise ordering experiences again, and profit consistent costs, are also are creating cost on and channels. I in across they Again restaurants today’s trying centers. reduce focused centers multiple hear world, risk to to that large mitigate

viewed they of idea take now PAR that and capital P&Ls. investment, in OpEx situated is line they We dynamics. around years, is For a well a believe share with are technology key to the coming their as investment the software today, these to

end the XX.X% topped increased subscription ARR second last $XXX.X and year-over-year our QX, engine. services At million, increase, of XX.X% a of continued services the by revenue quarter demonstrating and from scaling subscription growth year’s

from the recurring at QX. annual $XXX.X million, X% quarter revenue sequential Contracted ended a increase strong

our keeping XXXX are from expenses rate. we operating run QX flat Importantly,

grew Solutions in year. the ARR increased Solutions XX.X% million is to Operator $XX QX ARR that impressive last more sequential the Operator prior quarter. from to same XX% compared Even period

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

largest With Brent Operator drive continues surface, by to over last expansion organizations the new quick service new QX and increasing, interest customer of year. be from for and site Solutions the table land service XX% for demonstrated is to and an of Operator ARR our per expand in business. opportunities Solutions to this from continuing continues product, in pipeline increase restaurant

to an and pipeline important Payments had was new all to than high. at the weighted payments faster Solutions. growth time we continues out much for Solutions be customer expected Rolling pace QX. Operator The of an is Operator part return our sites

of with the transparent compelling integrations ease and with offer doing We set winning pricing strong PAR continue to a that a is with business customers. coupled model for along of our and

with gross loyalty customer in online our volumes, platforms. quarterly along record We processing and saw in and in quarter, second resulted the across momentum adoption which activations store,

in solution QX. loyalty This of with Salsarita’s our rollout powered Apple full highlighted by tap one the Pay is by

will We the of strong year. confident the for this are deliver momentum rest results

Moving MENU. our grew platform in digital engagement customer engagement leading XX total ordering ARR includes million. Punchh and to QX compared our approximately guest in Guest QX, $XX at ARR XXXX when a to engagement that half percent

work our launched scalability hyper environment fast to chain, to the hard In on at XXXX in subscriptions deliver a our same quarter, innovation new product. and continue we and the We of current delivering deployment successfully the kicked-off time. casual focused we unit our

year we progresses. Active business store increased XX% improve as seen. beyond ever by year-over-year anything record to this we we platform basis the a the usage campaign continue quarter, saw during believe well where would We and count on did on Punchh will the

the tremendous while PAR. for quickly, also up Usage has optimal the just in times business four through creating both challenges challenged growth Punchh. scale has us infrastructure thinking our This long-term last XX-months, for model increased opportunities and to

We quarter. are us our ROI drive from trust helping this United given humbled the continued our committed by and migration its are to the to by to them States customers to MENU products.

from impressed MENU customers this received been have the prospective early response by has We year.

signing three that brands are signed to quarter than of brisk and number We more report, additional final this a signing will stores of to date. are at we customers the the stages I’m pace, pleased in double

continue our scale channels. we and to and the unify will this driving and meaningfully. investment the features to functionality thesis customers early grow our the I are These opportunity give As count signings up logo operations, product with store expect us success our to early that validate MENU, ordering

set generation allowing outside special a grow we to footprint channels truly the next ordering our ordering, product and is expected store proliferation come. us MENU and up and for the the us believe to

time the will expect tooling to We feel we in particularly we infrastructure QX. investments increased result, the the have and same our start we revenue MENU than more quarter. As into line confident now did in of we as at U.S. the I product mentioned last business for a started acquisition that dominant a quarter, market domestic the aggressively grow

should our today’s promises. desire are to build see first balancing MENU of on we in by can the focusing We problem our doing with on Punchh. methodically isn’t customers customers existing sooner, that take more deliver we coupled this as power Demand with our for belief that the customers lives

operations, on today. build to strong support service office up on well. our to deliver Reported us is stores. million trusting quarter year’s teams XX.X% a Back increase We from delivered it as So had have in a stores center and was more ARR QX us data those activations last of $XX.X quarter active XXX QX. now and the than in XXXX and of

prescription the subscription and at briefly services Before the financials, year-to-date. lower gross Brian the margins margins wanted call to and than our touch normal XX% to business. We for over for quarter on handing quarter review reported the XX% for gross I specifically services adjusted margins our in to

This decline two factors. was by driven

First, to PAR out large as year investment in live of and advance mentioned pipeline to we XXXX. expect in above, then MENU throughout and order and These we this needed while build later future revenue take in revenue. short-term our investments, are made a painful, payments

at believe we of We from spend that and are peak investments moderate to here.

referenced, I usage experienced and as products growth dramatic our in Punchh. we across in particular, a Second,

up can baseline again. usage we so we that certain customer of was in anything credits usage, have planned issues which ramped this us new to encounter tooling don’t ensure beyond To disruptions This had to spend having we support led these for customers. resulted short-term we one-time importantly and and

scale. believe make large deliver spend As more is for this to will for likely being believe at CEO, spend And such our not we it to I customers. important is deploy but able able over, in a times our player only we many unplanned fun, I’m in investment as up part are I confident the category

To margins, to and summarize on we payments continue consistent growth, future scale. as expect PAR menu revenues

out given have are and and in enjoy those to nature, challenging in credits, one spoils to of the time our infrastructure is beyond. it going and all While we XXXX are on now

as will will again normalize margins core our we in increase on that spend deliver Our efficiency. investments

approach the with In pipeline, our we of half momentum are and we significant values and strong summary, the focus, with that heading as have will and into the year same shaped second XXXX company. ambition a

in Bryan Brian. more the numbers now will detail. review

Bryan Menar

XX.X% Savneet ended everyone. and segments. compared revenues XX, from you Total million XX, XXXX three the three-months both of the and to months afternoon growth ended June coming with retail government were good an June restaurant XXX.X XXXX, Thank increase for

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

million, XX.X million second revenue or decrease in for the the was for of million X% EBITDA in reported the loss quarter X.X to in adjusted year. the period EBITDA of compared XX.X a Hardware loss two of XXXX. XXXX quarter prior from of the X.X was million an same million Adjusted a

compared forecast X customers ahead to and Sequentially, our of to sales, continue and QX Tier hardware QX was revenue our our with as across strong customer legacy see both hardware base. Brink we flat

services the Solutions year. a million, the from substantially X.X at subscription active prior increase reported XX% Subscription business revenue XX.X Operator million XX% was driven an reported per by of in and average our sites increased in XX.X% or revenue increase X.X driven XX.X site. services million revenue million, of by from was The in increase increase

a revenue XX% million from increase our X.X in increase revenue. active per million X% X.X of in sites, residual by of menu guest subscription engagement increase increase The post-acquisition average by driven and site, was revenue a business service driven

year’s up exiting of XX% The an quarter XX%. XX.X% million, last up guest Operator from and with annual XX%, recurring revenue up increase Solutions was back engagement XXX.X the house of QX

increase million revenue professional or million, the quarter the in an primarily in XX.X prior million from was contracts. the at the year. revenue reported consisted reported of million services revenue, recurring X.X from $X.X hardware XX.X support Professional our services X.X% of of

XXXX. million task a ISR business at government revenues was counter XX XX.X% million driven our of million in The was from increase orders. XX.X government SUAS increase reported revenue second in growth the from continued of product by Solutions or in contract Contract of million, by was the XX.X XX.X line. substantially quarter driven increase increase The

increase Contract backlog XXXX June of of the XXX% government backlog to prior XX, with for XX.X million XXX million. backlog as funded was XXXX. XXXX associated XX, funded of as the increase June as our year. backlog compared of XX.X was XXX.X XX, compared the Total million, June XX% business million of to An

margin quarter XX.X% XXXX. versus turning for in margins. in to The increase QX XXXX. XX.X% an to margin in Now was QX Hardware year-over-year charge was due the inventory

XX% to margins go we continue hardware of forward. as expect We

decrease services within growth continued Subscription our XX.X% second XXXX. XX.X% the to The the in phase of of early margin compared quarter a margin reflected was in for quarter is products.

additional the quality In addition cost was to significant utilization customer’s hosting from ensure our resulting our made the guest increased impacted. experience engagement not we investments of to products, of

subscription X.X the assets Sequentially, margin identifiable ended included months X.X compared amortization services during for million three intangible to XX, million of QX. of XXXX, June

assets, total was the of months adjusted Excluding subscription XX% in for amortization service XXth intangible XX% compared to June the ended QX. margin three

second XX.X% decrease margin to for one-time compared quarter was reported margin by X.X% the in services driven Professional XXXX. in of was The the charges. quarter

back the year. the expect to We transition of the services mid-teens to professional for margin second half

X.X% Counter-UAS for compared with revenue. were labor margins second lower mix the was the related margin contract in of Government The quarter in XX.X% XXXX. to direct to decrease as associated

digit We year. expect progress through second higher single to back trend to the the we as of contract half margins margins

reported million and GAAP from was a to was X.X corporate QX of operating XXXX. expenses. lower in regards The acquisition by expenses, In million costs XX.X SG&A the decrease XX.X million, driven decrease

R&D XX.X and was million in from million or hired X.X out X.X the to we to continue XX%. is non-GAAP increases adjustments, recorded million diversify Backing an menu of R&D our offerings. and related service the Net QX improve XXXX. and in growth increase product personnel as million, The XX.X

up XX.X the increase of Sequentially, was reported million non-GAAP from of expense net XX.X X.X million was million versus Total QX X.X XX.X QX in R&D million QX. operating XXXX. an expenses million in

while business, flat the million, increase interest XXXX, from end of at by QX XXXX. to expense the X.X we operating of during X.X will XXXX. manage million the increased of continue X.X investments for we in was as our indicated short-term revenue keeping accounted growth interest to XXXX. in million The decreases Net recorded compared expenses our Menu driven

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

was XX.X needs. For cash was ended cash XX.X for net and for positive June prior management versus our million QX capital the efficient to year. million months the of activities six XXth, Operating operating million use network flow X and due

six the costs internal XXth million Cash investments. expenditures ended software, prior month software restaurant million reinvestment associated two with year. for during our included was short-term of six-month for used capital of million X.X X.X for use five Investing in activities developed million for and investing technology retail X.X million the the ended for XXXX June activities platforms June versus XX,

X.X XXXX compensation was Cash million related used the compared ended for in financing prior year. million June six the activities activities for was XXth to month driven for transactions. Financing by stock-based X.X

Day as for XXXX the segment XX, restaurants June sales retail to of increased XX-days XX-days outstanding XXXX. and XX, of December from as

to levels to of the lower DSO from XX-days Day back historical XX, the of sales as December come expect to XX-days June outstanding government levels within XX, decreased XX-day for We XXXX range. as XXXX. segment

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

Savneet Singh

I and reliable. growth to messages believe investments. we growing is growth key are without open Let for ability a to most PAR’s resilient model in business, demonstrated Q&A. this strong, call operating the me up and organizational our strategy our continue maintain wrap before with few

balance operating and fine deep do we a focus recruiting This more. top a efficiency, can expectation an result of that is on talent

While markets there a end is engine could footing. we continue feel growth our be volatile, is always strong on to chance

the excited vendor well-positioned simplify or of of we believe in it our consolidation, customers tech help. at us. We continue to is be PAR front opportunities stack to and wake unification Whether look their life to their up

we believe in pushing opportunities, said has product M&A forward keeping to continue PAR, creation. of up it profile. to to QX, that be of to to on forward. a will financial our we M&A on go strong number we a new driver talent add Today, also value and we as our I environment is and all enhance As value our the been PAR ripe increasing I are thank while progress. date to look you which

wanted on update. an to Lastly, pass employee I

the fulfilling Workplace Earlier is customer, drive for a Energage, desired this to a Top year, and focus also by work for as XXXX we industry. rewarding While technology the work PAR named results to drive experience. this alongside was in

response, almost touched to survey are improve and here. motivated Their humbled every at we employee the and PAR, employee not static and by from stay

and thank always, of to As like employees I their for over past quarter. PAR’s effort the all would dedication

call open I that, for the With Operator. will Q&A.

Operator

comes question you. Thank . [Operator Instructions] first Our from

Unidentified Analyst

drove and nice Solutions, this is on today. how saw think guys. questions just It Wanted a which of for here. here, Thanks the unpack, strength Can guys Mayank in on quarter. taking year? Hey, about we the actually Sam the for the of start really Operator should to growth you some what growth back half

Savneet Singh

Yes. It is a growth relatively simple algorithm.

got XXXX payments. have Brink sites, also, growth we -- in think I high is we about, alongside nice attachment continued addition very talked as But ARPU of the live. of a went

a goal bring at And business. is payments then with so, we and historically, higher our have price Brink to our in than land

I think, in just base think I year, last total is impressive about, is, by the has XX%. the grown ARPU

old the And price. contract a that our very base portion is at with of still large very,

by year being Payments so. nicely. last up moving or Brink of the the is the it moving price up biggest so throughout list And driver followed

Mayank Tandon

And made Got gross talk then gave about we it. this on the dive of margins little more subscription into about those in you gross that in bit And the could in year a helpful. That color and I PAR are we should margins back appreciate how quarter. being more a MENU how maybe bit investments maybe about, is you little there half think guess, the into and payments. think should the XXXX? the

Savneet Singh

Absolutely.

expect will back of next quarter. that we call some So to

investments said, on this come nature, peak is some one As I I that us, particular. And in is in quarter. like will the spend back think you of menu to this I of next mentioned, the and know, time

than growing and at. brings still gross it And be is par margin our SaaS down gross pay the to margin base, because it so faster is not will it

So back we gross will to from I us back XXXX, I think, on on get seventies you think and higher. And this claw see get hopefully, will margins. low then quarter we as to then

here help making, making. gross the us be investments they the do they both we once margins the Because and have we we know, also higher to investments recapture we long-term. aspect only us are these through these at, are key short-term get margins you they that but is gross that for are should not set And really the up

It about I road the think, think has us play also we think which can to how usage I forced that how kind can, of, product, we price our things given product, are we how charge all have, our on. much lever down we we

So, margins as base low quarters to seventies. subsequent I historical back of get following in the climb forward next will think our we going quarter quarter, we see the gross

Operator

Our next Jeremy from from Jefferies. Sahler comes question

Jeremy Sahler

first signed you I existing customers guess that drove maybe these for maybe replacing then menu, and I are you on talk existing and the an three guess wins were about, you chains those can what solution?

Savneet Singh

have have was I already. we hopper that have that, and signed Sure, store double chains in about the we sign will that got are they more to that more than are three the just three highlighting account we

So it exciting. has been very

I this things. think driving is is few a what

between customer couple a when and our to is it there so excuse very Obviously menu really first solution overnight teams our add see you a The and interactions be, integration Brink, real and a or strong. is the tight me, value and hard products that. is they partner the is is the to Punchh

is is, fundamentally why The our crawl did head with know When believe my a our is like, And existing to in a I have second wow, is and exactly we you show challenges the best we product my market. the all demos demo of into little bit seeing so how solution? is win. is of way demo. the it The that customers, best menu sort we always

decent the mentioned on business, hard other that do won last of without this products call, we really but a on sales come. in the I driving initiatives will we and like chunk And

is very So, what with the product is is partnership powerful. itself and that Punchh really winning

displacing, who is in displacing to as are are companies very every a that couple logo. over online that we we we be pretty exist this we big players are because, starting ordering time. is far it much and As a There the snowball going time. just for a legacy long is exciting see And

you two One a pretty ordering mention sign is, we I’m it payments, point deal, single for I if deal online believe, so nice should sure also includes I and every is will.

Jeremy Sahler

can And and you any on I kind where sizes that now? Are table customer Any an provide the of, features you guess maybe services? targeting specific you update is still product need?

Savneet Singh

XXXX. so, one know, business table things I year, the is, I think is for just, won actually it service of Yes, end the is exciting that on but it XXXX that large the how call you the about chains live, in in much of going is are at pulled really bring the last mentioned we this as

And have to continue been specific without so, this question. but Brink to able we of those, momentum your kind and

continue table and from side We to server very on inbound largest smaller the medium-sized to the of see deals chains chains.

really with highlight continues, to highlights it pipeline have And product hit sheer the I that in that I think even our the the customers. think fit is to so Brink nicely And RFPs, ARPU. market started very high growing we fact is that

Operator

Capital from comes Eric from Our Lake next Markets. question Martinuzzi Street

Eric Martinuzzi

wanted first engagement. to Yes. the focus on I guest

You your obviously emerging making a investment lines. pretty business are substantial in

half business winning have servicing anticipation business second You of in up. a won? or Is you scale that talk about already

Savneet Singh

have won. already We

end quarter. deals and number a of MENU QX, this of nicer So, then ones QX, couple expect won a we and was

out So signed need that much that it we door. is are to deals the get very

Eric Martinuzzi

operator the for on if rate of the your progression seeing tempo. know up side change in conversations? Are pipeline any the funnel the Curious solution you to some house. of then And of

Savneet Singh

we change. I see don’t think any

continues high. I think just be it to

this is world, I the think, some we our with. a on of exciting coupled what about that been with been always largest is focus emerging engagement with very change the year have strong in change the

very a It been think consistent. just seems don’t is I change. So there

that in of value valuing, lot bundling consistent at to one obviously not payments for all Brink. And really creating tons creating, is sense a the business. PAR, um, that of is for value click is what think of down only There with slow more Not because I our macro but starting customers.

Operator

question Nance next Will Goldman Sachs. comes from from Our

Will Nance

Punchh you understatement. a a ask your It know to said sequentially. seems business, substantially pretty that I wanted on little be looked expectations, the maybe an bit was to I a, like of exceeded it

about this remainder pace Just sustainability wondering and you are in thinking year? of the business the just that could about if talk how activations of you of the

Savneet Singh

I Punchh, on here. of kind think message our we are we footing As getting

Punchh. We have a ton platform, the on money the scaling spent usage of

As it of really a of it crazy, platform in usage is kind the but is up four I one base times of already just mentioned, year. usage. big the And was

And have that. into grown so, we

provides got great we some is It great But deploy other the We aware that not, have for ability that not scale at there any are to us we think definitely bruises I are a do. that. because of through organization moat what also is. has the

to kind while, isn’t investments, also that obviously we can it like that painful environment, scale anybody this so in it into make there exciting step because And of is can. is really

it advantage better strategic so long-term last looks is than And pipeline the now the quarter. and a

you And ago. better when, than quarters two it asked looks me if

ago. QX, sales to see we with business. nice one strong sales, for going of leaders, the so looks sales momentum, The a we couple have QX, days just pipeline I close leader the the that met And but

business to sure and going make XXXX. into We have pull we win it that

Will Nance

could you year? million revisit of I’m And XX million the you ARR little of kind I wondering there to rates a payment for mentioned then and exiting just bit expectation to any side. the if XX the know attach updates of investments on

Savneet Singh

that feel about good hitting very on target payments. We

actual Brink I range. number, see strong still You very the back is on very it can I plus think come will very, It of with the this very my given is see rates guess. a the jump is year Detachment is to but high. XX% high. expect had today. to the hit you with payments we backlog with for just us big like XXXX, also that, I quarter. that we what

a we cost servicing of are usually all a generally attaching simpler, it effective, in ton the is shake, the - end get customer. we creates successful because more to to hand new is of payments above. It value the customer, When one

And an some then because have doesn’t generally with existing for either is are win to that the contract payments buyout back if a will we to reason, somebody And they weigh we around business, clause. that then, come the for us. don’t it in else quarter opportunity

Bryan Menar

And seeing is through that Solutions, in high ARPU in because increase, there attachment you are how too is attached the through Operator essence it Brink. right, on top of

ARPU also per that has driving both now the So is payments the site Brink for increase. that and

Operator

Our Blair. from next Patrick question Mcilwee comes from William

Patrick Mcilwee

Hey, Sheldon and EBITDA guys. quarter, adjusted of late expect Stephen is to little given over that breakeven? of the be about profit in it steady towards expenses year one-time My today. I’m for one, on we bit trajectory how progress a came the profit first rest thinking some pretty for to and of kind fair should the return the we

Savneet Singh

Absolutely.

to and OpEx get to the the margins, were growth lines exactly was be, we quarter, this wanted gross they think our I where but on strong.

think be will the will of getting of high our to for I key the from the hitting profitability beginning goals the be us our strong end through year. to guidance, continue the And year. growth

corner. quarter think then quarter call I And gross are some earlier, mentioned and around I the next no moving profitability we is following feel the there is back going I forward. of think we confident Like the to and doubt, margin,

us get the we I as If clean side, hit But here. is don’t, of revenue of on to we high can very there. I from will miss. deliver can we kind But we think there. think it to think we the fast execute directory I will the end is if And on

Bryan Menar

We lower XXs. have security quarter at like, with margin. on subscription reset, think we this I the administration, ended

younger seeing on we the at as gas we ourselves margin year higher the XXs are in kind end that on mid of fore visibility XX% the putting for the investments to we to back products. the last XXs were were onto of regards QX, and before QX, the to that then We getting go

Savneet Singh

just I this made, that, which we what that investments in is quarter, is bit particularly on there MENU, a QX QX. think but is these efficiencies, this from revenue revenue and And then of coming and adding have for interesting most of also really back turning starts quarter being little

come Bryan what are will account so on talked Brink in XXXX. into making so in Punchh But and is forth, take growth the doesn’t that and that investments about actual we and which

This So that will the been flat story. out I of think holding has maintaining the year story be while this growth.

think next focus trying a the get deep class I growth. year, in will be best margins maintaining to while gross on

Patrick Mcilwee

great. at should the in only about Okay, Punchh, activations had sequentially. engagement, I in you or XXXX had $X.X say guest but up saw, I And ARR step you think quarter, a million

on the wanted that and as I you ask, this capacity is pickup So had to or some related just you any have step up quarter churn to seen front? of the there that expected some of issues budget headwinds or

Savneet Singh

think expected. is as it I So,

not always is of some definitely but that end, or churn, some Punchh there churn is our quarter, offset in concerning anything to think the quarter I on for quarter activation. but meaningful there that

at impacted not, Punchh, little a been the that. were there ARR, is Punchh the as there see of can bit, versus up kind discount that sites suggested least you there from is But issues as you then that like so one anything it. no, is pricing And it time or no is

Bryan Menar

year of forecast call this beginning some ARR that right we what with driving Right. But is kind And is year, XX, in this kind year. pivot the growth. and was and the we the PON that and those were or in with the expectations of are half the the we one growth been may of it is churn first forecast look reflection at had as and the consistent, right. we that, kind expecting of primarily point the on of ARPU That site is

Operator

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

Adam Kelsey

was is I ARPU to was high hoping quarter. on, actually you future? the going provide little George. a the in could you This see great thinking this ARPU in it about how detail of are Savneet Adam growth more exactly

Savneet Singh

deals new will you to trend is to upward. of have the the more new go and going move and is of as stores live we live, these plus it What It to And payments. concepts upward. seeing are continue been taking more results continue

that today are we and meaningfully them have then deals the And win fair in we at pipeline prices.

And is year we up the so, a I have two. been think it doing or last what to catching base just

we trend to upward continue for here. ARPU a that So long to expect time

can you all it across products. see And

within You It even little but even see is meaningful, super a bit. Operator Punchh it obviously central, data Solutions.

So that pretty feel about good I now. think we lever

Adam Kelsey

follow-up a question me. from one And just

you love thinking that understand menu, international better U.S. focused managing brought primarily those how the Would international about of on point? to been and this have how With to the acquisition. given are acquisition you the you some with you along that are are, you accounts, international accounts now up market

Savneet Singh

a It is question. great

this so business made I this we to focus the those of say year is because of why street decision, structure geographies. international in not States, United high different beginning to two accounts which on and the the and at sort would So is the cost retool business operating we

was in was so and was very different plus DevOps clear the teams, it about did the geos, And infrastructure sales demand base. States. reason in we that is product It United think why as expensive. different much is geos demand that there So for teams this support how it why

it signed. And way also as the the nicely booked that. have there, revenue And waiting it we structure here the doing that on is and of cost instead and and turns for thought flip, we should it see Europe advantage in other you of that why hopefully here take bring we

customers much really want stuff So swimming is very about excited a and where our are so it we the that. feeling to

will that eventually today. In and go time build I out we think, back

the is so not I to long we we wanted customers have live U.S. significant think can have getting get as those been can is sure make on it and pipeline the got just deals we main pipeline. because this the our focus we live take

door, is It And situation get, up increase increase the getting problem if is will isn’t the door and a funnel we then where is us unique funnel. the sales that it next challenge. the the stuff the

Where So what expand are we on I have need that will for focused there. think we really today be we okay. customers tomorrow from can delivering and

Operator

ADW Capital. from Wyden Adam from comes question next Our

Adam Wyden

turned between end. their Punchh and to but basically else tech couple is Burger a of investment that do the X,XXX no channel we little doing one the bit are there front which investment when North brands would on one that else could XX,XXX units. two be right. X are you the then the basically the mean, America, stack company, customers, and quarters said, be no seeing call large a on and I revenue work, do, can there what big based comment, really Obviously, our logos. I gap is is winning you made RFP being King next stop And these out entire an Tier in and units Restaurant menu one toast for But there in seems check the on a being a these

sort that, winning and is service this sort anticipate that this is your all the support customers fair of that is sort basically, big you sort to else of and products. of your direct sort a think the mean, Is customer I way basically have service one has in got and investment of an to because of and to logos way of integration you ability the about acceleration growth. saying No the it? these in

Savneet Singh

me comment. comment on Let my first

of It of sheer think to a been deliver is deliver what was And top think I with what big America. XX, really the Punchh very large for it hundred in platform. I was is the how I we in scaling side. people made on us DevOps our was it XX compete infrastructure, realized hard to penetration volume investments is, campaigns we suggesting customers. We the the given that Punchh chains restaurant some So to actually the

is think Punchh about invested. it, clearly the largest If you

close and the think happening. most I most or someone investment, don’t just I and that in the put for to to see come that then

so, what is and with just And want the product build scalability doing and at. are continue mode to along get we a mode service building I better think moat we the to

try big, large those to for to for or hard competitors in whatever logos. restaurant and very be win to our do come us to do undercut going they is want to it But

to it infrastructure I have nice a create think think be we investments given I is going hard gap. sheer will made the

people what lens of under you full that able the the I second enterprise high is solution, do not with are the that believe it think exciting I you part to first a deliver in there the what lot being of is category, being are particularly and restaurant put do, provide products. when saying, cloud also can we quality

would customers, to what that saying And I deliver to is, will so are would pitch and be to we categorically roughly next our win able be situated then need. our of the who and and else logos, feel with we product really the well my point. I what hopefully But, next is we think one say I scale the to which proof think, go one has to into start breaking large market that you you as

if are your your on this large a provider provider of huge your restaurant think faith loyalty POS customers your are in it, to about and if to example organization, or a deliver Because taking you franchisees. you leap

we the that that and become. depth conversations can easier show of more have product, those the so breadth And that we

Adam Wyden

way. set So, a different

You have product, margins Burger a winning obviously larger invest of needs. is upsell obviously it customer taken to these it a is in And whether basically or anticipation or King in Wendy’s? gross whether down payments

keep, to range. and you EBITDA of pain at Is that, is XXXX than to said growth breakeven be mean, our that you unfair the short-term high-end it sort XXXX expect the fair company can it revenue it assume sort assume in of know, we you revenues we faster I the accelerated hit if revenue and this will a the of, sort for pace sort is of future. to grow of

Savneet Singh

I I customers. talk so. hope we about can’t mean, think, I

We pretty right. publicly haven’t The disclosed is yet. simple, math

it X is It enormous half You and win large functions. equivalent our to, step one revenues. like, Tier is super

we we making on deal our win are win just that those are to function getting to to it a margin tackling, as we whether step and that so, And the those expect is right, investments. large But going is customers growing hope without create upward. we continue goal got make question, of side, blocking, type growing. We and or That those not.

ways, many because dealt have wish And we that. live in have customers these would we made and like earlier never and with credits we investments now I things more

are side, win. So we going irregardless that to do of we margin on the who

Adam Wyden

Okay.

around Second question M&A. is

ARR sale last trades day. businesses pretty I every the On a churn what the big to that company at you front bought you out would the software are this sort still and company and discount call, now. public PAR private Obviously, call basically investments being of are not. are costs have seeing for said other that sort of growth enterprise low equity by ones public making But, or guess I you markets. you accelerated what in

the of realized I of business sort guess that sort and what sort company and it would someone a be of that in easy for company a place sort play of government pure the a getting I meaningful value creating company where get to get public that to would of say strategic of to divesting or a you could this sort all costs. rid part sell is of

you certain waiting is mean, that this you pure balance government multiyear a have basically I selling know you business the amount play this and what fast sort have few in for standalone? scale making the of sheet. on company a I state because But and this got mean, ago have gotten for holdup others a a it to for I the and of challenge sort sort years terms of of to sell as be contract now a were of was pipeline you it one. to

Savneet Singh

is there hold no up. So

we we would think shareholders, from a needed strong multiple there was now the told have. to this contract. we We so when important, deliver I that. and delivered, year we to That the of get total growth we do want have

think said that on can’t we say logical to part have for it is that And anything many make decision, very until So we I are as out always focused I but creating with value. times come decision. I over,

Adam Wyden

good. acquired you was call, of balance this on on plenty company public I investment to what the orphaned that technology can of was able growth. that are I our leverage of VC there $XX skunk of sort which comment sort obviously public in be about, might costs accretively the growth and and be are are and company like, internally you your, look, costs can and obviously, now of did sort you you sort you doing M&A? ARR good. cash comment world flow investment million I you a you of whatnot. data organic tuck-in of that the that $XX was mean, million central of with help said Punchh companies anywhere to mean, mean, sort But, working MENU, Can are sort basically from

about that growing scale that nice you contribution the nicely getting something way that is were positive the do as a I possibility? margin. are of can Those next Those that you is XXXX And and well. scale XX-months? over are is think next of tucked-in. M&A think how that mean, generating quantum is sort of what sort They products businesses. mean, we layer of sort of and I do

Savneet Singh

So, question, without yes, in I to I us be say acquisitive. would expect

but think because be, and flow. anything look that offset generates Now change we you excited costs know, buy things don’t to you we something company to we buy don’t, so won’t can we then can I are would opportunity. by that public And cash literally

within that suite, buy our have and the over and product sales creates stuff you marketing, we get existing leverage and think your that I customers will hopefully is time. on where great within operating R&D to synergy our your

to that are And we number the see interesting to of we I are And very, think deals sellers. very think a interesting we very us.

us active. you active think things, do these happen. So par I will but that is will see It you there, break very see expect to I and to hard

believe I dimensionalizing as in scale the that, here. like want far - of we the you we sizing As think economies it of

been very good And helps. scale as able think, able leveraging grow To to space that, I we continue. are at are to show have OpEx we our

push acquire we ton through. e are think I you think so, that R&D don’t more need developed, And assets product them can the I because experiments like we science They there a us or see established, will things of projects. larger is

for good those and for home I create buy a think we can nicely teams. we and there assets we tons will integrate more is mature customers, think our where them of us see then synergy

of So, these own It core finish you just a my decent focus active see definitely mine, I shifted get a very to is will think over here. I us have portion line. of focus the

Operator

Andrew caller is BTIG. next Our Harte from

Andrew Harte

of of was there out big of anything jump. pay into a will ARPU kind driver obviously table there benefiting sounds like think the the you And would a come Operator what on I Obviously and year. Solutions look it service reaches par call Is else like, next gross will bigger is how picture once existing I penetrated it more today Thanks. par then par kind the it pay, pay base guess within level? margins mature

Savneet Singh

question. Great

So, drivers big the other price. just

I Brink know, are I have to know, hate price. think, You price take say taken nicely you we and we

value that I are the our customers. we getting think to deliver we

think the initial of you I build you And very Because was business logos. know, trying Brink get as it know, our startup of underpriced. a portion large in to and was base very,

And so transparently exactly know price. driver that are is other is customers, pure what just big charging. And the think I our we

open really transparent we a, are and be to by them we trying we drive. sneak like with So there to value them not them, is one the and want show

in are market. on cheap, and the the And so, don’t cheapest we the not lose don’t, product price we I

it there. capturing I think value is So,

payments as and payments, XX% the it base already yet, of to far meaningful As is penetrated the Operator measure Brink Solutions not a even is revenue.

space up white you can of within for Brink that I’m lot have par. where, these So, I will renewals we we a payments. show, up what rearing at are see for think us, have base the coming

fascinating it volume every month processing is meaningful what know are you now. And about is, single we amounts of

margins. of on we the more, into and margin segue down is are cost it structure dollars as a question more come well to We as because a that our which billion your scales, us over rates good GPV business and it allows expand last helps there, annual volume, process the

business Steady what state not our it about just is that is to payments should super processing. what is close But SaaS our get are. margins scale margins payments unique

fraud a gateway a have we have We have got a product product, got we product. reporting

a all of We that margins. in expand product those number there that have is will is a got happening of fraud product. which There gross innovation

is because So payments be margin, gross gross expect forever don’t as on margins a it to sorry, today I drag scaling. is

things of because, can of of anybody. And ways build going many are sell cheap we I about on literally top is there valuable sticky. really payments excited And is brings the we is I anybody I make to that today. value the the feel one like products can is, to them the the passionate What payments, how are payments what is we think around seeing think customer

Andrew Harte

feel is in engagement that headwinds where then, ago? past a and is seems like about you Solutions you have back and backed Do about we weight talked some of expectations. of something for our really or thinking like the But a ahead And this in Operator year better the guest at guest where the quarter side, kind of the were of half and year, of back still than office kind of lot dynamic the least Solutions holding strong activation the offsetting of a office Operator guest engagement. quarter on engagement, kind and carry

Savneet Singh

I and think, it keep we it every it getting will saying keeps better expect better get to quarter.

Purely grind And it a from right. just like up. so think the I is sizing,

a back but XX, is in climbing it is You it is that of climbing. million to and it quarter XX a can’t that flip take business revenue

We are climbing up now.

And Solutions Operator listen, is momentum. great just got

that to down can and it XX%. you see we expect We continue have it much. And the fast driver momentum be will to great how slow will so growing almost don’t is really

pipeline I think on the so, just two, And size, there. is existing but one

Operator

would to for time closing this turn I remarks? to further like I’m no conference showing the questions. Savneet back At Singh

Savneet Singh

to forward We Thanks everyone quarter. joining updating next you us. for look

Operator

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

now You disconnect. may

PAR Technology (PAR) 9 Aug 232023 Q2 Earnings call transcript