PAR - Earnings call 4 2023 | PAR Technology Corporation

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Operator

Good day and thank you for standing by. Welcome to Par Technology Fiscal Year 2023 Fourth Quarter Financial Results Conference Call. [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 Investor Relations and Business Development. Please go ahead.[Technical Difficulty]

Chris Byrnes

Thank you, [ Jiji ]. the morning. for apologize do difficulties this I I'll right from the beginning. just start

our morning, our as are call call is our be year-end at related we QX furnished available currently quarter and This the everyone available management's the Form remind financial also find partech.com, the SEC.During as this did morning, call call. We which items. in to Relations X-K non-GAAP to data. participants reference our believe exclude certain conference website fourth on reflect measures, expectations this to the welcoming page may earnings results. financial The useful today, based fiscal well financial Investor also of XXXX to will results investors where like include presentation we release on I'd that can that the forward-looking release of we financial impact and to you statements

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

call Investor remind the will CEO followed I'd the call the is over the Savneet? call Relations Savneet made Q&A. portion formal for and and PAR's it section and turn call, available to be Finally, Officer. now to like our President, which everyone will today that Singh general Financial of PAR's I'd Menar, on is of by Bryan Savneet like me be link a for to this being the on available recorded, replay website.Joining via Chief remarks

Savneet Singh

'XX building these blocks us are fourth the joining the for we QX when in and us and on to with customers Chris, use think M&A on hopefully in setting The grew subscription later acceptance quarter, products value was muscle XXXX today's XX% our by years the ideas industry's by intend all our a of begin takes of come. a largest touch creation XXXX. foundational flight year and an we compared to for to call. now [indiscernible] and I'll up ARR regularly you Thanks, place. thank results.For

XX% Our by quarter exciting was products as came wins last to deals, growth power in price same across period by and year Operator year. without begin delivered year. the XX% on our million same QX increased to last will compared period $XX.X higher later due Solutions revenue live. on services to touched ARR go when increases relying from the value payment this grew and last that Solutions ARPU Operator the we customer monetization, API

Brink our for year announced today, XXXX across PAR sets and largest far Brink.Operator be accelerated this acceptance for King, in Churn growth trajectory X is enterprise X win in win of Brink with by traditional was us being seen with Brink, providers. of and quality X.X% up sit customer, our have to continue. validates our largest expect deal rolled the highest Tier and our scope.From now the QX the products by in the deal pipeline in solutions Tier driven We Solutions the out similar down XXXX. since come legacy pivoted This way we to This increased beginning market believe and a signing from cloud at as is we America. we reach Burger we rates to turnaround and stores where MENU nicely North X,XXX-plus projects for

the not across a we see is the choice, only accelerate think at enterprise, from cloud. commitment we the but real to brands the pipeline, And to PAR just country their simplest. the is pipeline best While move

growth. Our deeply enterprise and for and scale market their into us positions ecosystems share ability provide nicely integrate to continued consolidation, solutions to integrity data also existing vendor

the into We of Burger pace year, X driver we next in begins deliver modules will all a sell years continue products. revenue. in as of to we details rollout barely our Brink confident surface closely for the hope when relationship from million on to the Burger is on will even driver annualized of upwards fully up The $XX would have of once visibility earnest and and the revenue scratched and QX open time. next market. be Burger to this major see on we call subscription other King King's customer, rollout the this -- to expect the the over Burger against PAR strong work cross-sell of to align for implemented King exciting in POS number over King avenues for What's more time with back will report we we have additional this feel as executing and PAR.The their timing.We lines our

is we that achieve processing we payment ARR payments was our has Zippy's by in from major XXXX line Brink, us general PAR additional year acquisitions than later improvements show name how Punchh also Par QX Innovative with strong. of quarter driven plus from rate benefiting beginning growth enterprise. position growth coupled such ensures market better platform adoption to around In the Operator a as link the business, increased to gross this raise investments of wins adding of continue. our QX It XX run PAR as silver and cost by and help $X.X that is While platform 'XX and momentum $XX market Enterprise engagement addressable business category uptake support more the and Punchh SMS cycles. customers has the in platform.Moreover, such invested 'XX. driver further in compared speed, saw We've as to offering won ARR PAR and brands to natively investments the grew new from and in increasingly trajectory year engagement it's customer an Punchh against In we payments, begun QX, operator strong loyalty products. announced Hawaiian unique anticipate Cookies Bob flagged growth to services total few.Brands deal by in on Wallet MENU and in in Ono gives PAR Product the 'XX, million. to in These Pay QX POS most operational all-time our to price are and we highs ability Deals, in over Insomnia on less in multiple solution across on seasonally Pay differentiate we above, all a execution distinction in intend dominance and revenue the quarter features our hit proactively 'XX that Awards, as we drive, billion. and Pit, of was Pita Punchh and uptime expect when efficiencies, but our continuing In X.X% focus confidence business as leading to show have. the Crucially, being executing adoption.Moving strong to the and customers' the Barbeque embed savings to QX, has with of with Most These don't we cross-sell approximately to Best Guest evidenced are Evans, at to of to and beginning churn Engagement growth which also that lowest run offers.Additionally, some and ARR. payment will the fiscal and of quarter, until leveraging and of we've are Apple increase and total, digest nested as is our This Guest Engagement the aggressive requirements the of turned annual plans scalability from We recently, continued Year customer In the saw This match in ]. a XX elf ever loyalty trend. from pay-at-the-table with text verified value. positive potentially experiences, to suite highest of in recently innovations quarter. pipeline from tightly QX wins the [ establish we better revitalization 'XX. this strongest continued grow than volume Solutions mantra the X.X% avenues future continued our received best-in-class to We one gross forward, expect BRINK product us Pay highlights logos accelerate double are together.Looking us payments signed renewal to best-in-class as us had. Biz

ordering Guest Engagement of The menu. other is important engine online our piece

chain of solution we Beef XXX back in makes begin QX of X As menu to again, ago, of full the O discussed, we throughout is the ago, will this a of will more Punchh at Brady's launch stores.What grow weeks win 'XX. unified this ordering exciting win Punchh that domestic for years even is first the revenue have turned Brady's full MENU loyalty. and a continue highlighting customer Beef from nearly as -- O power celebrate

almost of the in in a QX. customers quarter, pipeline quarter. announce and 'XX PAR in customer. plan, We drive Data store logo several become chain. the menu of signings. scale again future validated.MENU United investing year's with existing office we'll Brink for is PAR rollout plan platform a vision and ARR of of million into the increase almost work will starting a for logos majority have today to delivered the XX% attaching early new me, including solid a this a road a signing majority but products. in 'XX quarter, this another our of are phases aggressive I are customers, customer of still excuse reality rollout Central, the that PAR every Further, into from This map we is creates is QX XXX or and selling believe can out menu are This States Reported additional to menu an was last spent $XX single built we a into the highlights every as it product. in acquisitions.Back Punchh converting deal, attempts seeing customer build a The MENU product customer Pay

along King. now for close with additional Brink as plan of QX, pipeline we more large concepts motion. too X the our bundle data attached center a and within increased franchisee year's work with Brink sales. create have payments go-to-market Central than X% and accelerated from Burger last We signed in Data more we're ARPU a closer The 'XX new is stores and than to an to and aggressively active quarter seeing X,XXX

think and the which to us the Brink feel I we the simplify that more obvious Data connection immediate between as are our as both the Data gateway spend. coming resources.Touch advantages stream. confident very sales-specific continue an Brink there a and Solutions plant Central as Data outside as expense product our high well. instance, Central control believe Data Central within be to the as win Operator expenses. accelerate pipeline of For grow to serves powerful not to revenues reporting Central rates quarters R&D revenue in expense additions We rationalize moving while in wider for well we reporting King, reporting.This on ROI allowing We'll the Central is our in will with Burger Data

margin for growth. continue to operating leverage think to able OpEx grow single digits, and maintaining were while 'XX, show we revenue I

absorbed drove a prepare growth.Our the rest delivering [ had exclusively resources come have MENU our revenue business aggressively [ we big in almost messaged, commitment long-term of to headwind for But still is business year That ] advance is with moving cost we overall, cost rollout. My that not quarters and without XX loss have XXXX. at majority which revenue almost 'XX, this running as 'XX menu the concluding net As Punchh headcount. risking gives base and great messages. numbers, on have we'll fixed and making expense I'll Central that growth, there finally revenue new Bryan? will this reduce our of quarter. worked headcount the I to fiscal and confidence end for of me of and confidence that in their hits, is read the the ] for to the the setup the the is the discrete hiding of to in couple growth This real of more will MENU Burger our our now 'XX, within Data unit, reverse exciting.Bryan headwind in grew back King in the impact. from no In of we Brink, our will our have

Bryan Menar

our December of contract share compared Thank increased margin the hardware XXXX.Adjusted quarter XXXX was $XX.X or quarter you, of same million of fourth XXXX share XX, revenue more offset partially details revenue. an to million per million for XXXX, was loss professional of $XX.X loss net customer in million or service $XXX.X loss loss increase for in morning, December year. same Hardware for QX by and $X.XX from loss $X in professional large were loss the months the ended increased margin $X.XX Adjusted with XXXX contribution decrease period of XX.X% historically ended EBITDA an the reduction reported Total everyone. offset compared a the the $X.X compared in the to $X.X loss from us $X.X adjusted for the or was same revenues quarter to quarter, XXXX per good million, XXXX, partially driven of $X.X loss ramp, quarter X prior fourth XXXX of compared lap. or a net quarter per period coming subscription per revenue, in for strong an million to $XX.X months for million Savneet, subscription of reported share $XX.X Net in the and a investments million to or and service of million of growth for net X XXXX. however, service revenue. and for EBITDA XX.X% was by by XX, the for $X.XX adjusted R&D share in fourth million the loss $X.XX a was from advance period on services.Now loss

X% contracts. revenue services and $XX.X XX%, consisted or from recurring million fourth professional our business $X.X of expanding reported revenue of increase in $XX.X increase driven up XX% up revenue Services The was increased driven contract active hardware Solutions in optimistic reported ISR services reported of Residual increase Subscription million associated in a XX%.Professional reported our be of average QX new attach XX% as $XX.X growth base. $X.X of the site. revenue UAS as prior Counter-s was demands software funded. $XX.X revenue by of decrease to year's revenue our within was was hardware was $XX.X by the be services exiting Government with from XX% quarter hardware and or launch customers $X our increased business million Solutions in from business primarily our X.X% continue year.The reported address as million $XX.X driven of quarter revenue million, $XX.X million products We legacy our we Engagement million, XX.X% million well prior in the million appropriately the to sales XXXX.The was a orders. increase sites from increase back from line. from product at was customer hardware of increase an the office to our government's Contract the Operator million, business. revenue substantially revenue year. revenue and an the Guest a in annual $X.X increase with strong business in Guest continued by of was government Solutions of million $X.X in by $XX.X million XX% continues an primarily the million, at last $XXX Operator from per up subscription from driven quarter recurring Engagement support of or by increase services The backlog driven the million, tasks increase Contract increase from subscription

substantially was and XXXX. improved $XXX million XXXX, was QX of improvement backlog to for of margin driven $XXX.X was December X% of a funded million, margin margins. increases. compared in December turning backlog as of the management to XX.X% versus year-over-year in million.Now XX% by Total $XX.X decrease XXXX. December inventory quarter as was Hardware As price XXXX The

value XXXX price year margin finish second reported initial and margin hardware of our of the XX%.Subscription allowed XX.X% has King investment in was demonstrating full half also with year products. with margins The of for operational the XXXX. focus for which margins us in MENU and decrease while into quarter absorbing to is of the to hardware improved compared in absorbing of growth Services the driven payment early-stage the services, XX.X% quarter initial Burger Our improve the rollout both by fourth efficiency the PAR are

adjusted to total margin was by to the and fourth XXXX. the for assets, fourth intangible quarter services margin was decrease services quarter XX.X% of recorded in amortization hardware of months compared margin repair. driven from The XX.X% quarter December XX% services for the in margins the ended was of the XX subscription XX% implementation service Excluding decreases compared in XXXX.Professional X in

rollout mid-teens transition margins were to million, to as million X.X% to QX R&D of $X.X versus X%, X% marketing larger million R&D was expect from increase $X.X regards increase sales an professional support $X.X million to XXXX. for by of enterprise Net million rollout.Total by in the GAAP responsibly on $X.X recorded was reported from and GAAP expenses margins The investments R&D million XXXX, in task direct of We to sheet compensation. labor Non-GAAP million increased margins.In million, $XX.X balance higher XXXX. Savneet million increase The services discussed for to in QX $XX.X $XX.X continue contract the diligence the earlier. from provide G&A XXXX. invest properly in operating compared driven an cash expense a as million, manage information was team million flow $X.X back to M&A expenses, an driven interest of customer our or position. decrease we X.X% to recorded continues expense was the primarily QX XXXX.Now and in our Net as customer $X.X orders million reported driven an the compared $XX.X $X.X QX due that was $X.X stock-based XXXX. $XX.X or increase QX for to QX by operating million, large was non-GAAP million improve the $X.X of and increase as in XXXX. company's Government well

ended XX XXXX. December $X.X as segment as and of stock-based Financing from days the XXst, expenditures with was million year used the financing million for operating outstanding working for securities. from of net tech Cash to ended year. of capital, offset retail sales net prior the in transactions.Day for December year million $XX.X compared partners.Capital reduction days the by versus year Investing year. $X prior the payments XXst activities used was primarily XX driven December inventory For December prior activities cash of Cash December $XX.X used held-to-maturity XX, activities proceeds technology due activities to management for million the platforms, during rights for XXst was of XX, tuck-in was $X.X $X.X of The management. retail payment December $XX.X million versus costs improved in cash year for million compared cash in million to for increased for sales consideration burn resulting in million investing by ended and from for a the software our partially merchant XXXX the ended internal prior the XXXX $X.X from use acquisition short-term for restaurant of developed $X.X to year million commissions XX, our XXXX restaurant associated one compensation-related to activities was included million restaurant year. for the of software $X.X

the XX Q&A. XXXX, of We XXXX.I remarks the sales segment closing XX, expect Day to outstanding will turn as as the XX XX-day call lower Savneet to to remain decreased prior for government days near from days December to December levels moving now for over to of range. back levels of DSO XX, historical

Savneet Singh

Thanks, Bryan.

of as messages. together, with closer every integration our What's while me products trade cross-sell with were MENU led from come to what has an clear had functionality products. interesting, is example, to XX% even is ability wrap Pay, Historically, tight more consolidation like the requires doing It existing few and is key Deals increasing. bundling including have we to menu, not for MENU Prior compensations, to that a has explicitly think Punchh me as negative or off and PAR our Deal I The Let for consolidate are attempts at This reasons. the we words customers right simplicity. industry-leading done Brink not PAR. around customer. to bring

products on unified their be best-in-class must and unified own, and delight. Our and [indiscernible] integrated stand

platform followed and bolster category, returns accretive standardization then were leverage car development capital capabilities and we addition product new mentioned higher innovation our go-to-market allow flywheel see [indiscernible], of the of table around of think land infrastructure.The the can technical of to record, setting. us creation and existing that with system by starts come As the with I think allows believe additional shareholder we'll the value current expand will the our is to and by M&A increasing true opening, outcomes.As platform products within because hopefully I acquisition our on a and top on a expand drive Punchh Each followed then notion. that TAM. flywheel our we MENU the to the and acquisition in the cross-sell of platform

the ready Now get in to machine we're notion.

able motion.The in in believe the is cash-generating we cash part be our integration will M&A step example the Through and M&A. to followed where evidence scale, and platform up in efforts the the starting integration more accretive flywheel of order. it leveraging of enterprise. allows half of us this customer, XXXX ramped and second development a of XXXX, and products step flow over back flywheel, in a real a the landing thereby signing we short to flywheel in The as by Brink best-in-class seamless was of continue MENU corporate our of good our saw As all Burger have is deliver next in we flywheel first we a to invest with King the again. accretive

individual solutions platform, market As market solutions, in Today, towards that like realized is dispersion not move point PAR. a creating to out platform-like platforms stand-alone to a towards strong the the acquisition the partner multiples. continued must like platform value solution, the the

these of flowing our is that here.What PAR feel PAR, for I about product targets, either most base. ramp-up are or and with they great cost allowing fits Some cash tremendous businesses real to efforts existing all deals synergy we hence, like leverage us are holes these to our addressing

Our our comment ramp-up in day front our should in X. I future, the working products And the accelerating what Today, that near flywheel. results adopting see than of to thereby M&A like faster infrastructure PAR lead felt rate then a should at more finally, is I never in restaurant from has ever. market me,

will think I Operator? today setup the motion we 'XX business want execute be the and run long and rates base.As ball the has OpEx excitement continue with revenue term King the as while built the should in an on that into and but growing of on additional no reverse earlier, with to the foundation with by grow execute I hit term. to MENU on near we our also hit bottom and in growth product Data What headwinds plan acquisition headcount plan, stay about.Our is balance incremental only the palpable, hires our we've better line, scale our cost consolidate unit growth our are better organic stream equally to new feel efficiency our King, less with taken but machine managed aggressive relatively our foundation to small as 'XX. a drive get 'XX.Any in closely ARR, Q&A. is is on business, Payments product cannot important. important we a we only M&A we almost than teams. margins our needed allowing the the that, and Central current to and team I'll this an I structure scale Said will while differently, the revenue absorbs we much we existing economics our The order we Brink, why and our core cost our on on meaningful our improve design the have have of there internally for only that limited Burger investments Punchh, a Today, call of should hiring we $XXX core products so G&A do our confident to get flat continue excited ensure we the still would open Outside success Burger our short the plans, million believe to to put ambition. team which business of execute then are I it.With run us to continue mentioned don't continues low-margin more and to emerging about is this like our drop as cash think tight is at flow for think our

Operator

comes our from Mayank Needham. question Tandon line from first Instructions] the of [Operator

Mayank Tandon

expectations notably, of Or et your you growth. sense you've giving had new I in for the I a your levels great current we wins several on -- start should wanted with just Savneet, the to cetera. sustain not Evans, these some know last I get as but months. BK in Hooters, new based these 'XX? outside given see comments, Bob wanted guidance, formal acceleration Can to you all ARR logo well wins, of to expect mentioned, as you're most

So XXXX. of just expectations want your to get a for sense

Savneet Singh

the of on the really we that But and the rollout. today. think that of it without going, depending we'll rollout conservative job assuming and get we that we maintaining growing. potentially a do lot We sequencing good as great I growth we'll a King feel even And think maintain rollout. on feel Burger have I Yes, about grow numbers don't and there, I think that confident

we'll I better.But we've more it back data, get it think to obviously, it to But very think once opportunity very, announce. be that got because And the come will we good market and there's feel for so influential that about we report I wins for get very think we'll even us. to I

announced these of wins, but lot yet. revenue of that a for had the we've so And none

I had in logos think is last any exciting And X from X so come announced didn't growth we've 'XX we've months. the the what's to

Mayank Tandon

you Let ask me way. just this

between you've I think can about ARR the good the on correlation, follow ARR subscription grow Is Is company? think for way the revenue to in said trajectory. so XX%. XX% And you growth note, still and the that a that pretty the it? past, target that model

Savneet Singh

Yes.

do think And or a I I then said, of once King, and the come can timing good be say, that's XX% we we back Burger XX%. I way. as will think get it

the we we just don't of that, yet I have. need details think which

Mayank Tandon

Got it. in commentary a quick great the the that. And just then of terms in follow-up as around model, leverage

So is EBITDA could profitability on of your some in that given you comments, you or it maybe leverage given points then just think of it point these sort is to reasonable XXXX at of going based of reach in what be some the your in model? to said, some XXXX potentially timing

Savneet Singh

King the unless extremely Brink. at year? on and decides as depending I in meaningfully roll the we've Burger all of get the It'll in because cost unlikely. end be Burger ramped support rollout out King is launch think in not up 'XX, all -- which we do that so MENU Can both to to

majority our mention coming absorbed from excited. then customer. And itself like revenue we to menu the live.Today, we've the we to really another much vast I is which And 'XX. think try the in of took large was loss call, cost I part exciting is just That feel so on so

both taking optimism I And the the think, in reverse a guidance, hits which change. both the on there's exactly and get give rollout of products, tremendously. on of because line I out been 'XX. next will got to on that -- bottom of built think lot you where we'll that to the on I going have cost so But these And for quarter kind details I'm I these short, model Burger once King has But changes think such the be. we've

Operator

Blair. Our of question the comes from from Stephen next Sheldon line William

Stephen Sheldon

into always. dig Lots here to as

biggest then quite about process another absolutely about a that, asking that view thinking to are right the It we in Just the you think to what key as on way, need Burger some that about? King, as And moving about we risks few sounds we milestones should you're externally guess the that be that get implementation? what I And like are there's do your think for what of implementation? pieces. concerned still

Savneet Singh

the say, than so I'd feel track, about far we expected going on it. is on better everything great side, So

only no is that concern. To stores simple. live. It's thing the me, So pretty it's you're tracking go

rollout, And tests, a we now going really of when which of feel But -- so is live. sort lot stores in of the it is we real good. couple they're so see haven't we as great. we'll go We're started hundred a

put 'XX very so will I good. in. to metric in is everybody. the back don't details matters. It's stores And be that, going don't said, other to only a just have 'XX. much many like metric because very, so large think like me, we But that in a But to is that of till we're And just live. conservative be how live we of rollout, how store yet. going going to think we But quickly. lot I is sort it's because organization, do everything the just on any that's And much track think, understand versus it's it I the I to X-year going is until how they be just have stress want we It's feel about go really to those in

Stephen Sheldon

activity majority Just on any Did the how Burger for King King? King it? at guess I Burger I have in there you of And that X,XXX that of versus really new the others? site good booking related Burger for much it. Operator think, all? of booking Solutions, detail new Got outside you quarter bookings site guess bookings good Is lot had I is there, of net a there. a

Savneet Singh

Burger King is almost maybe XXX it, none I like or of other logos. mean all it's XXX

Stephen Sheldon

I ARR Operator And then, more. great. with X% site That's just like up Okay. The step-up per active one seems X% was sequentially. Solutions, that sticking in guess, to

there. uplift pieces you else you call payments more that, give moving the is on or a of any Just guess from the benefit notable anything but I part adoption just pricing big curious can if out? some can detail

Savneet Singh

a we're also It's continue. the The of price model. deals -- part about than to the and are size larger exciting that's you're of going in and This uplift, XX-XX to higher the before much payments going is ARPU. and

And to that's going so continue.

from is and think call and Brink, getting it's will So we two rewarded XX-XX, monetization being product pricing other right the that feel the about really I premium now, But primarily being half products price API good and premium about continue. deals, modules increase. the of modules, it's it, but payments also

Operator

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

Eric Martinuzzi

I direction million that any in on due transaction that $X.X versus for work. to just these bit caught Yes, curious appointed I'm as particular little far But obviously, point you're your platform. about diligence dive Solutions a Operator more the your as Engage know, my some eye office? M&A can are into back in versus number tuck you talking to wanted solutions

Savneet Singh

we So because process, now. M&A we're been disclosed that's deep it's obviously, we've numbers, -- in meaningful it's clear and from it the why

is both deal the we're is the think today is these why is it's within Operation Guest get As deals, far the highest, product hard exciting But most a M&A done. say up a activity which is of and at picks opportunistic most to stuff But perspective strategic so -- we where see the is flow times cost now. from which the Engagements and I fit, the as where what perspective where price pushing ramped great, so that we happening, M&A is Solutions but and is right I'd where Guest we're up. have we'll much, Engagement seeing

Eric Martinuzzi

were did targets say those -- they that kind cash you be or it And of post-acquisition, positive would is

Savneet Singh

profitable. No, all these very are

] closer real and is [ be it they're not XX XX, company we every they're take real if we real at better. it XX, so XX. look will think real to can independent a And I far,

the And have focused made We But platform, to investments everything generating once we're be on platform So the the that's a that flywheel we these which cash mentioned. been the ever which I now, us that. losing. on have MENU, obviously has I something needs buy cost. really don't headwind suspect you'll money we to increase see top of it

Operator

comes line question from next George from of Sutton Craig Hallum. Our the

Adam Kelsey

call, for Brink. are brands you there we're taking pretty earnings is that meaningful additional mentioned George. Savneet, a X last that This on the QSR look Adam large at on

customers? you an Just curious had on if specific update potential those

Savneet Singh

comment can't in I'd far bigger release, than we've until press is X announced really past. but say more we I the seen the than that So, number now the any the has gotten anything pipeline

I we then are and near call sort that our think funnel that we've X of what sort -- term. of another medium we term see X are logos within got

a spend we a gets So and to And POS is surveys.And this robust the do thousand when They that for of is generally with funnel near one consultants. decisions hiring money large consultants RFPs term, work ton hundreds that in funnels, the it's real. really to on of come dollars the their the side. processes particular, big customer POS the already because thing making on get it so of on point to they've decision. spent are

So it it to sign business. is that provided a business as relates win great usually we

Adam Kelsey

done, of XX% where would get to integration respect could else we that on done? in Anything features as just XX% product with well the then can you development an MENU, great. update you be Are is path? offer And terms Great. as of

Savneet Singh

We're there.

investments. So we're making not

in last to In parity product States. hit wanted fact, the month we the there just to meaningfully we've United the in cut costs get as we

we like weeks goals And to. pretty of we ago we the kind took so I there said, X just cost meaningfully because hit needed the basis down

Beef we mentioned, our U.S. I ago. had X weeks at O Brady's first go-live As

live You talk the but you'll how I'll is.We the innovative because out app, not really had and it's about I XXX, that today. go customer later XXX impressive our can website it see and download think beautiful check a team. product public, second store

we so efficiently. been core kills me know I much people And is coming. because is running business more the it's what know it's So

added we cost haven't We have I have the It's time. like we that long in the coming on in impact headcount that's MENU plus that revenue reversing major loss. a these offset where I to for And mentioned. said, as MENU 'XX up

Adam Kelsey

as from And for continuing to in QX well? perspective Burger then during QX and rollout, did one headcount of scaling King respect that the With should cost question the me. most or see final we come

Savneet Singh

in scaling up, You'll QX, see lot it call some a it it, of of in but QX. people. We're XXX was

Now term. think -- not stay are apart to to of dev not the finish -- they're teams is forever, as these limitations, is going this inflation This but it short integration.

X those Again, cost. over amount next those a will out, once And and perpetual we isn't years. come so need meaningful it's cost don't roll costs, that of because we the down

X to and for of support short And is, a will primarily some It So scrum like it, about us teams it's it that's about period services way back way we've and then half X lot it of taken down.The scale it. I time. professional now. call teams, think scrum

of like costs quickly rationalize from I back it's get then that it, people will absorb will very themselves very, And quarters those to so any it's before not -- and get revenue for couple we down. we said, it a back but

Operator

comes the Jefferies. question next of Our Samad from from Samana line

Samad Samana

in was were I the to part done the is like And margins, that of the percentages. subscription at And at. of new kind a great today's you read I like the Maybe and as And about with one, look R&D getting that a in deck, on It structure is Am gross percentage looks cost that I at mean and actually looks ARR. business it is slide marketing right the where you have sales I Is I now guys that? signal profitable, expenses. factoring disclosure first business have matching in job send a a terms a those disclosure? then of there the of and follow-up. trying even

Savneet Singh

Yes.

It's said the transparency is rationalizing majority on to give that think that's side. I sort we're it's just lot get So loss. a fast to I we quickly. step get said, also more you provide as there really why you'll functions. the on how as done, we're going it we're see more there. track we of I But more because really going is to how just is our that then menu M&A cost to that to transparency and get menu base fast disclosure ex of And do take And

Bryan Menar

and the that from include not a doesn't noncash it from Samad, does referring slide to And is that at Yes. it a include looking -- G&A, perspective.

Samad Samana

out on you Do mix expect a you back you should do how permanent to the you've to margins. get from the something of that? we XXs, then about the that of gross And do shifts? Perfect. last? as and menu margins payments kind Okay. payments to impact expect called to of Or just expect gross investments headwind think these When up

Savneet Singh

XXs the and time then getting higher in question. with definitely We're over that

recognize we on So net basis. a payments

near of will doing our super growth. margins gross versus margins conservative are our software the net term So payment be the in because we

years issue. the because a couple but And be to going a be to headwind not rest is to, the take will the MENU business of also so it's nicely. renew get to permanent payments the won't of growing

a And we're you were higher. of so back past, to the out products, exactly kind remove little in those we if where

our revenue. in Like going So it's revenue I a turns live been first those of before major the without the X has businesses.MENU that's got there. got said, just just such the you've Burger any live really We've King the took and U.S. growth another customer headwind major because cost one big we

towards. a and see to get drive year all mandate mid-XXs the of get there need to and margins. to we're sort you'll higher then nice But outer our gross It's of there. movement this going products And the so

Operator

Our question the from from of Anja Soderstrom Sidoti. next comes line

Anja Soderstrom

said you in stack to aside from accelerated. prem said mean you get -- a think the has there to cloud you transition from just of curious aspect to Do -- is tech terms I I'm of sort this? security wanting

Savneet Singh

the in secures, it, but not there's driver. of that's essentially So think I that's implicit all a major

the more the share think than up giving are is I the in driver past. guys legacy major rapidly

and really on way of restaurant the obviously, the technology, do old innovations so product have major that investments one driven driving factors, biggest but old this take that think is forth. these were are cloud, of different at McDonald's and on look you product, future, the to these I simplest bunch Chipotle, an Cava, the the chart that's a your that by even restaurants think the the your innovate is being on of is were an you to if I ability experience.And stock made in limiting so on this

the they've actual look haven't. then ones that the had see and You can at that returns

And you're think from more so course, of it's security modern about that. functionality part And a getting product. of is the I

Operator

line the BTIG. Our Andrew from next Harte from of comes question

Andrew Harte

XXXX, in of how Solutions. Operator you there about it. you're Can thinking of Burger XXXX? in with But components obviously, of Savneet the of of growth, different we're of Solutions be kind kind kind up the other relative back When past, just King help you've Operator should growth the on ARR growth us pieces office key driver compared about Guest Engagement to and thinking of the the sized

Savneet Singh

absolutely. Yes,

have Punchh in announce going month has an here. and or we'll 'XX. from driven Guest We're think I the to So of half Punchh X bunch sort won by next acceleration of back Engagement logos more MENU, the a of in

revenue growth. have have on And will MENU we'll Punchh. an so acceleration

so We it, we'll there. think XX% today.On any had haven't because think back the of do to just smaller year. business call are don't see a side, office and XX% the growth that the XX%, U.S., which size, we'll growth but I really this move part grows see our where because nice grew, there of business, that the from I this is uplift of we

some that interesting I this ability but out we've there's And about think think that just see lot to year an too. come there, I will up the move of business And Brink with also there's already, -- then opportunities a have talked pipeline within there. of Brink. we'll bundling acquisition

everything I key landing that faster. though part allows to grow else Brink the think is

another every Brink in at almost bring product. XX we land, signed added customer so And

will is why land continue easier. that everything, to drive expansion we because easier so consolidate Brink we which And and is as units getting together the

Andrew Harte

update of guess the can of comment you're I question, strategically And up M&A of then about us just here? that I other thinking the on kind you capabilities. how appreciate business government your ramping about of the kind on side kind

Savneet Singh

the the dock. in at look I disclosures

Operator

like back for would showing I'm to the time, this remarks. Savneet turn At I closing you. no further Singh over to questions. Thank conference

Savneet Singh

time. free and feel out next Look with your questions. for everybody, Thanks, forward reach quarter to to any you ping

Operator

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

disconnect. may You now

PAR Technology (PAR) 27 Feb 242023 Q4 Earnings call transcript