PAR - Earnings call transcript Q4 2024 | PAR Technology Corporation

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Operator

Good day, and thank you for standing by. Welcome to the PAR Technology 2024 Fourth Quarter and Year-End 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.

Chris Byrnes

Thank you, Daniel. thank Fourth joining Results Quarter and PAR today Call. everyone, XXXX Technology's and morning, you us for for Good Year-end Financial Earlier financial released we this our morning, results. QX page available also can the the related QX well is earnings Form where as find The presentation in our at partech.com, of the release SEC. website as Investor financials X-K on you to Relations our furnished

non-GAAP impact we we investors expectations a also measures can like today, call items based data. on will measures certain the believe statements and be our financial call be release. I'd these which participants reference comparable remind description forward-looking earnings During conference measures, currently this reconciliation A to available our to to the to may useful exclude most of management's and found of reflect items. non-GAAP of timing GAAP include with in that along

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

to and available available remind this Finally, I'd Relations website. be the being for recorded section that like Investor is it replay call on via everyone link made will a of our

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

Savneet Singh

compared fourth rollouts bookings Together customer upsells acquire. We're Better existing by enable a across in sequencing for working for the QX Burger Burger with our products POS PAR new increased planned multiple customers. all to partnership combined are both cost continues of with our products meaningfully using Having from we those customers new between and PAR King no customer implementation with to well logos projected King the about excited in both customer new velocity quarter, mutually wins, the to include rollouts with increasing the our million, upon than of our potential. this driven X LTV product at additional ARR PAR. than per as in show profit grew QX We last XXXX. Delaget. this to gross in doubled profitability reported same $XXX more million, for growth, totals compared year. long-term XX% unit the came and million growth expansion Engagement QX, morning, quarter revenue previous doubling Alongside business both year-over-year. in good more an million by organically year-over-year. Adjusted $XXX and when was Cloud. Operator EBITDA approximately $X.X non-GAAP Services when organic ARR everyone. in XX% organically sequential Chris, year our QX to grew to from than by and XX% Operator Cloud in margin line, PAR and validate expanded OPS with last Subscription POS growth and of rollout revenues to more increase period signed the The the to ARR is fine-tune now Operator PAR quarter, OPS. $XXX XX% XXXX BK continuing while being agreed closely This in growth Cloud and including recently to driven from thesis XXXX. selecting Thanks,

ensuring We POS potential. excellent acceleration and is implementations a X,XXX our onwards. from accelerated visibility exciting This of our robust BK demonstrates sites currently working XXXX backlog an as white largest QX and customers. significant it Together in in approximately have at one expect with thesis We Better change space,

this dramatically increases trade product pure every rollout a franchisees would make POS our BK in importantly, thing well. right rollout second slows LTV. to for QX, While adding And the as is combining time. temporarily a module combined a We second the rollout our

Partnership our short-term our sacrifice of We we for what Delaget and center off is never back-office rebrand immediately includes quarter, the drives the success modules. PAR the kicked long-term a and strategy. At end customer Delaget we initiative announced of will new OPS, product acquisition gain. into of the the data which very

yet platform. Delaget Further, Our continue team are Data we with marquee boasts among as not Central growth Delaget management expected, strong that the targeted growth year highly to that synergistic product important growth a XX and in combined of finished it PAR It's note our the driving been affords better strongest XX year offering OPS a seasoned and restaurant covering build customer we forecasting into concepts. the accounts through sites now cross-sell XXXX. XX,XXX QX will seeing interest, This accelerate to strong as more than will top its comes PAR up integration with have out OPS across the X entry it we with including than has team base. Tier our are to accelerate business. customer data cross-sell, a also PAR only

and the begun towards Better on Together and our replicated not platform platform. flow, real-time initiative continued includes our efforts big data towards enterprise that the a underscores unification work sign-on in a have else The product step market. in data is single We that drive with highly anywhere is building Delaget strategic

as the sharing details be year will progresses We exciting on this additional initiative.

on Now business. our Payments to report

look our across high As including Punchh we customer to more Runza in Baguette, Chili and strong Star and drive while live driving with as Gold exit Paris every -- QX. volumes stores better payment counts continue continued we see quarter, processing economics. Notably, wallet onboarding PAR customers to in we to our base take processing interest more more XXXX, stores transaction Services to Payment

with quarters results Additionally, a we Tier will coming successfully our cross-sold conversion the This positively impact example on is of services. project customer's our our locations customer X a over approximately Together and further X,XXX Better Payment win.

unknown loyalty, and store ROI of their known ordering a unique in-store POS value. customers above in actionable information unify and Pay, to position lifetime and drive to communications processing PAR and to product puts across continue with drive personalizing data and higher to customers the leverage insights, tokenized increased scale sets PAR our As mapping our

only of We don't across the tokenized hard can trend link are the to industry integrations This all replicate. There's that disjointed intelligence. to on-premise data house. growing towards back stitch to solutions enterprise third But off-premise in the and way with data attempt in is company the who the payments loyalty a a is together parties. and multiple data, alone that guest create moat multi-vendor ordering

owns but attempt first payment we Many of full take First-party and with because combine stack, everything is the ensuring technology true pieces PAR data data data them party, do does. external to systems, integrity.

the third-party multiple happen authorization are guest our you and be After not restaurant's platform. part technology POS platforms. customers will still relationship. that on have intermediaries, the believe the of They fragmenting POS. would data always XX% real-time lower costs, approach We interactions loyalty the of higher rates layering That's from true removing Rather are transactions, are be converge. Payments, what systems. should mission-critical POS, a see restaurant. all, separate over is rest. inefficiencies, guest transactions than and outside all the control ordering giving our full we processors control differently. fundamentally and processing where makes of it different It's Some at and operations restaurant center across and the run menu

our robust ensuring our PAR growth both offering Looking we ahead new for for remains capture the payment year, opportunities. across pipeline clouds,

$XXX Retail. at our XX% year. approximately quarter same Engagement ARR Engagement Engagement reported and QX to stands last in Cloud. ARR compared now Moving PAR Cloud Cloud includes the million and when growth organic to Plexure the for

execution customer has Our in wins. led to strong this several new Tier business X

programs. Punchh frequency Our notably new the and consistently and customers. is in through in interest loyalty leader customers. Engagement growth both restaurant offers and and XXXX, market With innovation for continued loyalty existing to brands and customers doubling enhanced and to product Punchh expansion retention, brands. increased existing and drive by delivering on our exceed is to the Cloud delivers seeing with dominate digital increasing standards customer consistency with continues market from new many are loyalty engagement with technology down strong and headwinds sales stability investments consumer

large platforms, back transition to Tier pure table to multiple X for a achieved X well-known customer who this winbacks Punchh previously data notably, from we casual then Punchh. Most and Punchh. chain back churned of quarter, service returned guest but part This dining had are enterprises

We Moving to retailer major our a PAR fuel industry, the brought and program unit oil multi-thousand major QX. industry. In upsells the branded Retail. additional launch the largest convenience and market first integrated major to in team customer of and with the in our brand fully executed

functionality we bigger drive updated and our and and Retail baskets focus expand successfully to convenience on unified incremental gamification, our enhanced customer member Punchh outcomes value e-receipts, continue visits, features card to QX, like that launched deliver for with PAR wins, continues gallons surveys more Beyond developing more customers. the that product serve our to fuel optimized the exciting industry. In

expand in efforts vertical into look the we M&A. our retail us customers As innovation platform the looking industry-specific accelerate white are our to to space, through to

last begin near in open PAR but our in year. leader beginning is for space. leverage our synergy We not is PAR sales. Also their across newest to the seen drive-thru for AI retail members. Moreover, to of are Hardware. to is profitability, restaurant be are our additional PAR the We've all between to have platform, With industries for is only customer the term while see setting we industry the that future. efforts our enable targeting increased and the standard QX domestic innovation, streamlined an QSR will as brands Several drive-thru sales in efforts drive-thru contributing strategic also drive-thru, and global today, are to to touching Hardware us have X% approved efforts the add versus value our integration global we by increases the the opportunities and systems users report key the seeing quarter will flourish same positioned architecture trends new we in that on and Wave, comps. already improving our that have we pleased the Clear revenues the turnaround I'm that power reversed platform to focus and to preferred this Clear that satisfaction. Briefly allowing and maximize both R&D to solution accelerate customers our recent

in I'm winner for position. in enterprise. a for our By provider. strengthen the our and biggest our In opportunity everything, pipeline market PAR historical are on enterprise that growth Software technology consistently very remain of will continue well PAR's customers for bullish ensure the a Better believe product to leading the the Clear the raising Hardware role bold in partnering we review Together will Bryan? more products on deliver view bets date. bar on value summarize, XXXX, M&A will execute of for the the foresee to adds and and in execution long and to opportunity this years ability for divisions as time ability and term, POS provide as to us we confident I category durable future as come. Persistence we innovation. To where we've numbers future. Bryan to now strategy detail. the Our growth foreseeable to about I rates our our grow great come and drive both we to to continued our trumps to the closely teams make innovate and investing seen to positioned and in foodservice a are out our

Bryan Menar

Subscription with out PAR. another Thank responsibility. our organic continued you, team with successful to Services to quarter fiscal fuel execute morning. Savneet. XXXX continues for Good while our closed growth, We

is As QX $XX.X profitability. ability to growth to compared to of year. from drive quarter indicative with and the continue This prior for improved our QX sequentially million a adjusted result, movement million EBITDA positive $X.X

non-GAAP Now loss Services million million Subscription to share $XX the share per the net quarter loss $XX was of $X.XX of driven inclusive revenues of the per for XX% XXXX, period year. of loss $X.XX share $X.XX loss for $XX organic compared revenue share, Total $XX,XXX or a for same million to loss of XXXX or improvement XXXX, significant continuing the increase same period to loss continuing per an XX%, to financial for a per growth net million in from were the was QX the of compared XX% prior of or reported in XXXX XXXX. $XXX or operations Non-GAAP effectively compared details. operations Net loss for net growth. from quarter by fourth $X.XX

revenue. now more revenue details represents revenue. or of $XX PAR XX% reported for was and on XX% the reported in the total million, at $XX $XX Now increase Subscription million year from an million Services prior of

TASK $XXX and XXX% XXX% the with Engagement an Retail Group, up increase XX% QX, PAR to and from last Cloud compared year. prior organic million, Subscription was Excluding Cloud exiting year's of Services XX%. grew revenue quarter Operator ARR up

versus the total Service was or our $X Sequentially, to Excluding was attached $XX year. was an revenue recurring contracts. year. $X in of or $XX $XX million quarter consisted $XX $X by growth in revenue million prior reported PAR increase by annual of increase million revenue Delaget, prior revenue, million, the customers. in year, driven was software Professional QX XX% the the a $X XX%, million service volume recurring million quarter year-over-year. Hardware recurring from reported an organic year. Retail, TASK of The Professional the Group was million or an at and up XX% revenue increase reported in the driven Services revenue up increase in X% million, XX% this of the to compared Hardware prior from

Now turning XXX% million, margins. or margin acquisitions. Services costs The $XX the year. $XX customer the reported compared million margin a the in year. margin with our margin focus Subscription the was was with XX% year. of of gross prior increase and accretive contributions support recent in continued to an the reported million, margin by from from hosting improvements in Subscription as reported $XX million well driven XX% prior $XX is million $XX Gross quarter The prior for driven $XX the efficiency in of as of on by increase XX% Services QX increase increase the from an to million or was

in tick and Excluding compensation continues from the XXXX total we current was driven by XXXX QX non-GAAP margin XXXX prior QX affected expect modest to severance, amortization margin margin products, down by non-GAAP baseline. Hardware to margin for positively XX.X% was compared adjustments. improve this shift the XX% XX% across the Services of and assets, Subscription for improve quarter year. Subscription XX.X% was stock-based intangible XXXX. Hardware acquisitions. product Gross Services a continue mix was for to margin QX our total to versus inventory onetime in post The in

our $XX primarily $XX from marketing well related inorganic increase and Hardware finish Our The by repair $X.X value consists GAAP of million reported our million sales margin increases to in prior regard the of in improved improve by million prior improved compared $XX year-over-year. The adjustment increase million to M&A full acquisitions, allowed was was and an us prior for driven in efficiency fees increases of was our to while million services, XX% operating million, The margins from related as inorganic increases to G&A focus our $X margins increase for primarily with reported has margin increase to year. $XX by primarily was $XX.X was XX% million million, field reductions from and acquisitions. GAAP substantially million XX%. Professional driven the third-party with items by $X.X increase Service increases spending. In sales compensation $X as for for operational demonstrating R&D driven increase an $X.X driven decreased to year million operations management in primarily expenses reported year. the transaction cost the inorganic in of of for year. the and was while XXXX recorded R&D stock-based the organic year-over-year. GAAP the during quarter related expenses, acquisitions, and of price marketing Hardware year and an expenses increase was $XX the non-GAAP The organic year. prior decreased million, the

a QX enabled able costs continue incremental prioritize non-GAAP million innovative $XX was year. non-GAAP basis excluding us drive resource And a percent without adjustments, QX to or point expenses expenses, $X cost XXXX. Operating properly prior effectively of was operating OpEx outcomes and efficiency team versus to drive XX% improvement Our modest increase which increase was excluding million, organic during was QX, allocation, driven to an XXXX. of benefits. XX% XX%, as compensation increased from The revenue primarily XXX variable Exiting inorganic and in organic by of growth, X%. a

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

XXXX, As $X.X and of equivalents short-term of of XX, had and million. we cash investments cash December million $XXX

issued of million Cash the the XXXX we of These used full offering the exited cash fourth the investing from common view. to substantially the the quarter. go-forward to action-packed the notes successful For $XXX $XXX year. year-end, Investing our representing of now PAR our with credit by million for our with and how $XX growth operations from $XX cash prior received XXXX, investments. Cash facility. development million versus activities of pride with structure of from XX, versus our driven accretive activities our private for used to flow financing operational profile platforms, and connection million to for Financing credit into $X million year, from proceeds fund placement in reiterate our interest the utilized recent was operating ended $XX our the cash the ourselves on for on $XX of making like and million activities XX proceeds an in consideration included by continuing managed success. $X improvement year was point facility an repay execution, Government entered positive was million net cash year. expenditures acquisition. Subsequent by this extending associated in short-term capital year a capital company year stock decisions, enhanced allocation with the of acquisitions both for $X ended million convertible costs fund flow and fiscal operating used of TASK and of the activities through PAR PAR team Stuzo throughout in million. Cash partially a ended compared net to cash year sustained operational million were capital December technology transactions moment connection year, maturity to of prior to million disposition position December XX thank activities $X acquisition million $XXX the and reducing the on prior improved offset cash provided they We for a December take of $XX for expense. I million consideration and significantly and of the and metrics focus in developed debt and for $XXX software net business would by and sales

XXX,XXX result, revenue PAR $XX.X and consolidated our gross adjusted QX a And locations end clearly the OpEx than basis key when utilizing positioned increased XXX we by to year. As with demonstrated XXXX. points of by of This XXX%. financial non-GAAP year. doubled improved is a XX.X%. year, Non-GAAP improved exiting year. at EBITDA than prior million margin better QX doubled prior solutions to marked improved some to compared points XXXX compared as percent XXX over the metrics. QX more basis ARR by a the increasing Locations is during entered organization the SaaS

We we now are to proud stand of what as forward by and over but moving to remarks content back to where progress are no our call through we have the closing XXXX. I'll strategy we to been continue able Savneet to Q&A. for executing to in turn prior we achieve, means look

Savneet Singh

Bryan. Thanks,

to it the we Difficulty] positive performance we term. on a was executed [Technical with foodservice and for Q&A. a note grow have our to call up QX before end, on wrap main maintaining and key key long sustainably pleased me open and team and that build a this business closed efficiently with areas. the messages X strong Let few for are tech. We in to leadership To a in objective XXXX, category had our

in operations, ARR and customers. driving on initiatives growth and our improve Software cross-sell Software portfolio our to momentum our focused business. we entire on First, new sustained We worked sign organic and products

As and of into in quarter our equally deals, was upsell important POS our our we were all spoke customer. about the deals earlier, biggest POS multiproduct

Together Better which tactics. Our innovation expand product through not pricing strategy, flywheel based ROI, continues and predatory is to on

TAM meaningful capability serve and product strategy to we strengthen on a targeted execute our and global build expand to a our acquisition out enterprises. foodservice Second, offerings,

C-stores our into and for acquisition new already truly has existing accelerating expansion strategic. largest of markets Our is created international a flywheel and Delaget most and our for our customers, TAM including us,

M&A our deep legacy our divested on that Government that cross-sell. PAR also our efforts to robust strategy bench to many a core has, XXX% leadership We are and core our is over what years, enables optimize in us digest business now investments. product our invested can integration drive and markets. focus building

culturally they is masquerade really core that over. Better at extremely this multiple operating go-to-market as motions. from, our sector their while As part or just and PAR add from single PAR, is to This companies PAR, and and I'm of we We detract leaders future into operate growth the our is and siloed over growth. companies cohesive foodservice inorganic times day the at not technology executive risen ranks collection to turning quickly sets team join, years we product vast And in sustained what Together being organic has where majority many leadership approach key us M&A multiproduct entities a multiple become proud aligned threaded roles. live to, aspirations structures. synergistic unite investors of of who and a cross-pollinate apart other what every

of business a operators are team and industry. We of holistic our seasoned with view a

our remain continually by fanatical about managing optimizing expenses our structure. cost Finally, we operating

revenue As top EBITDA a adjusted have strong and delivered of maintained now growth growth. result, we line quarters X

shows this our margin look revenue EBITDA non-GAAP the upside quarter with are far our proud marketing, grew and proud quarter-over-quarter. Today, well XX% R&D long-term XXXX within now equally firmly and expenses 'XX XX% optimism. in goals long-term rearview of towards I'm and and we this company. With to the doubled expansion, I'm more our than for sales schedule, While of believe organically mirror, respectively, well profit goals and extremely confidence of the XX%, adjusted gross by our ahead that our I

rates grow our percent For XXXX, the annual committing we to continue XX-plus for in business at feel year. to confident

will upside over hit course never the feel year. levers to we'll that continue linear, continuing create to to we quarter-to-quarter our drive of be of a number that year, I the while our see more, but EBITDA. What's confident growth targets key Our

While us there's execution that discipline to to sustainably. and cost a of we balance continue are of still will strategies grow our business ahead us, lot work confident sheet, enable our

my teammates I for in always, driving PAR results. work their thank hard to these want As

Our shared time our that to drives want and belief and shareholders. Thank the day partners we today is hunger morning, call Operator? your also X express to deep I to ambition. you our up a appreciation this for customers, collective and will now open questions.

Operator

Our Mayank Instructions] Tandon with first comes question Needham. [Operator from

Mayank Tandon

be Congrats, was I quarter. to of Does the on Savneet, Chris with believe the the the XXXX. sometime to rollout? start and rollout Does the it into of timeline in Bryan change Savneet, in locations? any the completed I wanted upsell upsell? way going change be spring the expected this different the of believe millions? BK. change based this low meaningfully the on X,XXX-plus Is also, which does to XXs I timeline ARR the in opportunity, that of And order the was something

Savneet Singh

Yes to both.

the So it that us so in will sequencing rollout. a QX, a QX, referenced, combined do I out probably quarter, we're we starting can quarters. X.X as rollout push

will it rollout, will QX, a just from QX So onwards. pure down, it, call accelerate while POS it really slow

adds point, to a day your we mentioned, to ARR significantly do long, that trade opportunity. As I that's it second the in because all

meaningfully. pretty disclosed POS deal As you the know, that low was to pure adds XXs. we around This

yet. disclosed really that feel excited. we quite number We But haven't

the will the and little while over that time. operating increases As dramatically a generate I LTV bit, cash it it out said, this rollout deal pushes flow

Mayank Tandon

as the Got then follow-up, it. get quarterly a I And would just cadence. it. around ask maybe I

various volatility. linear. You Should should other how some also terms in think the can improvement? around And the modeling sequential any you Or cadence? about we are will the we factors revenue there expect said question be for should we provide it's not XXXX? we're be buckets, consider going color quarterly There as to of But same margins.

Savneet Singh

Yes.

growth acceleration I the margin should -- second well of question expansion So asked. you of meaningful revenue to the this as Burger of second Tied the to in as you partly half think in year. year see this half just the King

to You remember going products. X we're product from X

a in opportunity time. lot revenue and more So period of it's condensed a

that. see you'll So

aggressively -- QX, and hugely you we'll take hopefully in rollout job again, doing be QX and our it doing sign a their everyone investing take else we knock should should that earning we're a can good expanding So fact out. And trust. that it make to relationship positive that sure the we're is

So or all more store well in February you'll January, And that I revenue very mentioned growth, deal things, on because rollout end forecast. are hits hope. forecastable. I significantly rolling the are rather. X,XXX let's call, exciting in already EBITDA back we we're have all sort the the like right -- second -- really And as see BKs. mentioned These services the These call. out accelerating. Plus, as more large of aren't deal more on These we've half of in as we over also that mentioned, expansion payment that a the as convenience booked

year. of a there's second the the in lot So room half excitement of for

Mayank Tandon

Congrats on the quarter.

Operator

with Sheldon Our William next question comes from Stephen Blair.

Stephen Sheldon

Burger And what like excited potentially it think on in MENU us King. to remind all that Because be just contract just follow a to Can up I initially about. included want Link. now? lot, you was I is PAR seems, POS, it

be I think Data actually expansion. mean, But I very to Obviously, about Delaget? they're products you're are now saying PAR contract just maybe just talked Ops, that about, as talk all going the you PAR adding they the you and say Central Ops. Or picking? when -- includes encouraging both

Savneet Singh

Sure.

without our is of into it. Central. Data vast XX are -- And majority expansion PAR core for parts days deal question historically the there Ops But of is POS, our MENU -- and So and -- is we're on POS Link, resonating be is as into I trying our rates bring well. to into them the that the point customers think Better all it of the now. certainly Together No opportunity attachment guarantee with Delaget obviously, happens. But given and, acquisition. We'll but that right

So one job. good do if And a with can hopefully, add more it'll we start product. we

Stephen Sheldon

XX% in given and helpful. XXXX. in And schedule? on then growth of that how current the confident commentary frame thinking next roughly Got can organic appreciate Just you're pipeline ARR way just bit year, more? a you're the is little annual kind just it. implementation you any there about see I That's just refine to rates. way But to that any what

Savneet Singh

I what growth like store well. end second I Payment that think half deal X higher Burger the from I rates deals the convenience Yes. live, Services I of half first said, deal from then have the than today, will King as because we of see sort mentioned, acceleration probably goes and live the the going of mean QX

we have visibility into that So lot a for half second the of acceleration.

is, way it the in in really, think year. about. should QX good because of lower have the Again, Burger you in so really than feel that than coordination QX, that we we But And aggregate, the XX% slowest higher King plus, about being talked I one about QX. the

visibility so mentioned. had comes never have of that deals We it when the to I much these rollout

that pipeline. of feel So for super as these These the have those committed, -- confident the in have X with key that I mentioned the I that booked. year, we second are the signed, of mentioned, aren't sort deals half today. And year visibility we are

Operator

with Our Sachs. question comes Goldman next Will from Nance

William Nance

There's you the I the things on. going been wanted just very into consumer? guys good of tell trends What the on lot a differentiated restaurant space. of and Congrats sales. on And seeing guys of on health the ask it pockets the the are have what broadly. all about you the in specifically the more restaurant obviously on restaurant you space to a focus look guys does have different the ground? you consumer And

Savneet Singh

see of because a And not full-service those think we couple me In business loyalty. had really we to see I a sort slowdown. a back type Punchh categorical. in in the There previously disparity to consumer data space, it's helpful really firms platform products say are heard left people come I'd Punchh. of wide of try been dining Ironically, that's we our investing -- outcomes. Punchh you are say, had that

was. it a of our of result not not It's full-service kind our happening direct a we're in certainly it's that's comps across think space, sort But market. And QSR of what's in negative core seeing seeing base. dining I fast what casual slowdown. then that

base up low our digits. fact, still single is In

sell lucky restaurant in been So the customers to tended have that aggregate. of the outperform we've sort we in to industry

and little general, customer small in our in And it's bankruptcies significant, again, see they're kind chains. but small of numerous see just a We those yet a again, of And stores play a have of don't is that and a here, of size, there and ones There I of the sort disruption, -- still tremendous sub-XX say when are that's a I have of chains, our single lot in experiencing bit you're makeup customers. growing. would big base that are that we don't reason base. but sticky think you to most the see our units, are happening, those units we we pain. enough current luck that portion why space at XX and brand ton the is is So very base. Where

investments the have don't two, been back. I around You you generally. And then think long to in fight technology enough haven't

to larger to invest have in an better the are to I have because Punchh as data example, ability the going customers in they to platform ability our they so the And brands, bring invest in. think, back do

So still great, low our digits, aggregate, growing and single is single base in digits. which is

So than it's of ]. a disparity the But chains. there's [ lot the amongst rest better

William Nance

XX% it. revenues. just you Hardware expecting they're the on Got one drop there. And maybe follow-up yesterday saw. Hardware guys like of your competitors a detail appreciate that a from all helpful. thoughtful inflection heard quick I We sounds in Super around that the

I that any Hardware the momentum thinking you're cycle? about been differently to seeing are how Are of guess business? any you reaccelerate the competitive refresh So just what -- you like -- that do wins? And able guys have is to

Savneet Singh

X So to it. I there's parts think

I'd is one And to to sell we is a So business. enterprise. like say enterprise product

You got the product. to have better

And our data, because are at think winning the best-in-class so -- stand-alone look I they products. if products think you we are

really And think helps so I that us.

really of Software customers. we Specifically, had have to attachment strong our Hardware our product

of it's is a company, even have company, that that center, our that Better it picking Together also software for So a large hardware not started to makes idea -- life mentioned, easier. Hardware. And but more the it's even also were lot that name your service won't and dealer your our to now Hardware your company call adopt more I functionality I it,

Better same Together the thing it's So happening. that's

customers And to drove our Software it. attachment we continue the -- so see, into call core it,

side, this some AI customer voice to non-Software into but And legacy we've in big product. a the as been we drive-thru. -- made drive-thru not all it's there's a investments change, big On have read, in real probably you've restaurant move the the companies,

a believe that given preferred the software hardware that we we are now. there, we'll partner company sells be And so

hardware forward. And so that driver will a nice think going anything Bryan, else? of I be growth

Bryan Menar

the in to. was have be size regards to that able to I attachment, the has giving add, doubled us fact to our that audience attachment location much that Yes, to larger has been going just software

-- where able areas, of a a have to of white support And to the type that. some Maybe to so hardware-only as we downturn. continue in competitors actually happening seeing are certain larger be space that's actually

areas. seeing So help to in able that's against been you're us other what

Operator

next Instructions] with Our [Operator question comes Samad Jefferies. Samana from

Samad Samana

I with that monetization third-party in the follow-up. there And guys how first I AI. and Or of your the bit Is then it? platforms that you APIs? guys it Savneet, that path drive-thru is product ears that up Is leverage class understand little just providing? you're be to will you mentioned own perked you homegrown to hardware through is AI that help embedded working customers allowed about have one have your that? me Then -- that that. My and maybe Maybe, enable a like it's kind know leading

Savneet Singh

we Fantastic drive-thru Yes, so question. build hardware. Yes. the

PAR offering. also So think we cloud Clear, -- of a the in that base headsets as But it's stations. are of

to subscription allow be drive-thru. we to So charging you manage will software your

point, there out so why your that their companies, are the is through can dozens to of they API there, run allows Now voice an will them that which important the tech. be that's plug AI to station base there that directly that, in to

selling an and company yet. there trying yet not, Acquisition ordering of time. So be that's or it but going might watching be technology of kind we we're company the to directly It aren't voice in AI to sort carefully. be something explore we

you're our enable be that. if going to to station, to paying fees plugging However, that you're base and do into us

importantly, to run growth. them for a And lot a But money a their platforms it's for we're restaurants. to so these it giving make service that potential way the on them at makes us easier

Samad Samana

maybe Great. switching little And then a just gears bit.

side, come hear a mind, it's think, convinced that us the those great putting give right? the them what first Maybe On of context could made churn of place? about to in color with very you bit be little Just what Punchh maybe back, pieces I the to customers would in And them boomeranging back. together, helpful.

Savneet Singh

X XX% today. And in that program of are customers a platform. everybody I year ROI Loyalty had think want a else." a being to couple We really not of candidly, system we customers end in or to pitches. want directly. -- I We of CDP don't The target those a both. a like loyalty we don't ago, reality, but enough something don't -- sort good maybe yet sales ago, So idea when, more to do they're "Hey, use customers, know years brands our want exactly loyalty -- And base. be developed to program. guest of the we'll targeting are say, a But data need the drive they

system high can are repeat brand visitors, need you but level, margin. customers you really everywhere loyalty. very still think that they're your target you that customers CDP loyalty go. the engendered They an I build personalized programs for loyal are awesome advocates need these on a And

thought so we realized set have our I going of customers. And to "Hey, is, loyalty those brands across what entire we're think

down up why the exist So candidly, And dramatically. product?" they need two, build a we one, that aren't ended are do trying that realizing, and to back promise ready; yet products just loyalty today moving that ROI went

combine that then when the as that's -- called, those sort back evolve was loyalty it a picking Punchh up data creates operations, product sort in tokenized point I you the real data to validating that in true I to plus the customer. And end platforms platform, the still think loyalty continue ROI platform, data their really PAR of first-party of was can making. we PAR data back office have, the their And all plus, customers so -- because

nobody that moat real a able it's we have will that compete think I to be with.

Samad Samana

third in one going here. I'm to Great. squeeze a

type any it you maybe growth us how rate, structure? Just for can of give Delaget's you're financial information margin thinking And XXXX? on about profile,

Savneet Singh

Sure.

$XX it well to has we mid-XXs. business the when I recurring of So grown was million over revenue. XX%. deal, about closed the say want Historically,

And It And exited obviously, EBITDA. hoping profitable. be that drive And our will so to certainly marginally and of we this it's for been outside product meaningful XXXX grower. a for ordering. we're year, fastest-growing payments really fast-paced

exciting of tend hard exciting that no. you've And we as seen, that through synergistic it for push data that single kind will Delaget it's quickly. a is ramp up quickly. What's to flow, we acquire when So once to of have say be we out we product a figure can revenue customers to think real-time we kind it's about business, so sign-on,

be So going will it believe I additive certainly XX%, growing -- keep it's saying but I'm will not to it rate. to be our growth

Samad Samana

Congrats XXXX. on a really transformative

Operator

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

Eric Martinuzzi

non-GAAP I was be we to gross what that it your or for for for commentary, to trough. Service was margin. below Subscription either a like But QX. you QX you number expect wanted was sounds the 'XX from forecasting I the were year XX.X%. do a expect That 'XX? where about curious, It it full ask -- just In year

Bryan Menar

a that question. correct, we of I Across was our the down continue been was came see by margin we've driving ago. absorbing the that in. our recent really -- Eric, driven there acquisitions most to products, appreciate improvement Yes, it towards. It and you're from year kind

and kind now reset then have of operationally So kind may baseline, a of that. it's nothing to changed. of grow off continuing It

we quarter-over-quarter? Not the significant have been basis XXX your seeing points. amounts, to but improve XX So margin it call

term. move as here that forward we medium expect continue the near to We to in

Eric Martinuzzi

a here. just then And housekeeping item Okay.

share forma What shares. out finished Delaget? weighted diluted million post count, pro Your average of you is XX.X that QX with

Bryan Menar

we're Eric. north Yes, just XX, of

Operator

Our with comes ADW Wyden Adam next question from Capital.

Adam Wyden

good profit. really Really, really,

just So couple things. of a

On the this gross some margin the again, of purchase. from is Bryan, so

rate right? gross on to You expect to expect XX much points Is basis incremental pretty you would the Subscription to -- you higher margin expect be per year. that your materially every Software going if your margins throughout that so quarter quarter, gross are XXX improve

Bryan Menar

that's total our plus Subscription XX% increase And like driver, right mentioned, -- line, call Correct. revenue. top XX% expect, -- year-over-year. a Savneet both growth being going And as so of to be a now it, it's Services, we

improving actual the a actually margin multiplier to would Within profit effect gross regards in margin have itself increase.

Adam Wyden

that know Right. I your Yes. more. don't but you the products I all would piloting ton should of margins well, all Delaget gross think incremental even hosting. I gross of a that would mean, mean, I and would on margins think payments very I of these on these and Stuzo, think and XX%, like mean, XX%, look, have be maybe XX%, these the TASK I don't incremental I some -- things,

have all Something the R&D. lot I like high getting MENU organic sort also, on you'd the margins think -- ramp And leveraging you're you're sort really would prospectively. as on you gross a MENU, of -- of of these

of And XX% would I as ARR ramp you've would you organic quarters, sort prospectively, sort gross But something you get accounting you forward. of purchase So thing. of accounting with a I had I some like think high lowered know incremental last had plus, margin Stuzo stuff. margins of that going couple was purchase know that gross sort

Bryan Menar

right? It's and know, it. Yes. on office. incrementally of might pride the what types each our And wouldn't a right? right? But of going we improve make areas industry, that R&D Generally, products, than can that in their of the each back to teams you I we the you little And a bit we sure a how a on areas improve POS the across it's push kind have modest. see heavier we it's It's we've to say something of to be significant over focus see margins. product kind depending time, like in also kind as nice ourselves it not a increase trended from -- of seen varies of upon And

Adam Wyden

assets sort enterprise Okay. I is look of stuff. one sort Great. But would second we've maybe And of one other that when in are guess, M&A. sort of on back Obviously, other my stuff, then example at guess like -- smaller companies companies -- buying of be question one seen ServiceTitan. I some I

multiyear where really you business of whatever, over how Because that expanded multiple. cost months of a hasn't to about pre-TASK, up think sort back the duration M&A? businesses, than software high capital Xs year, only sort X mean -- you're the that pre-Delaget, meaningfully structurally or, just you together. per think faster to have about has it's sort going I that. Maybe right? it. I grown not of course of growth multiple really your that ARR on those ago, the your it if getting up? get the pre-Government, share love about is? spread on -- sort the an guys capital on you the into feel doesn't stack Hardware a like the like where the were sort of they're sort of going for business. I I mean, you're of how and context on game trading just of do are curious mean at basis on how our it XXx think cost product. the math your value you buying. I'm teens mean, doing revenue. I'm of ton end-to-end companies like sort about sort sort to today, they're in I of have of obviously, you of of to but do sort the the in you EV depending sort growing ARR that the you sort months, growth, concepts think how your of runway XX Those companies of vertical think small XX of to Although this of a XX vertical of of of you multiple comment town, you last ARR in And they sort XX% was sort do about I'd just curious the are Is mean see M&A

all about I'm And sort so curious how think of just you that?

Savneet Singh

Yes.

jump just got in because X after. -- me calls X more Let more I

should believe revenue, business else. and that I And -- believe we Accounting and We growth flow. I end, is, slows, over and durability I and will over companies' to numbers that are will of again. continuing our rewarded end we stock multiples And the better And answer language when your matter to think have performs. become all getting of contract than the flow don't in for how cash cash think in you the strong end, our numbers numbers our flips better. versus short anything believe demonstrate ostensibly that. In XX to here. a of reward dictate So your gets more and great durability I is the markets are the when Rule of And get that situation growth. TAM software and that it

happen my be half fact, our the a as that growth upside while nice following In really of also will won't the of year. in here heard year you second there's linear, in the lot commentary, like

think don't numbers. if And continue you feel median, the I think and companies grow able really are I impressive you we know few -- so the get continue to I how number, well the profit to X confident of that at rates that will drive one of that but we're will, higher, be to that software above size to

what so The doesn't win end, matter or And In get end. matter multiple the there. It the and the numbers the do. we'll I in numbers is say rewarded.

a on relative multiples, you point when have M&A, your to But and talked using about it's extensively. game. Specifically I this you're

there have the at, as very ARR, And are don't the market. current And know, for ours. we so if I that companies set good Xx as metrics will we're trading benchmark few

a discount multiple. I to them suspect that we buy will And so at

not there are those we're those sure. lot multiple? and not lot that ] For of want not able a that a at But sense make to ARR of will in trading might [ our and not of those buy a certain assets flywheel. lot not be that Now we because a there's we

we've as pipeline. time every we've got the that. I've that, a really said in upon And I strong said M&A So script, executed

and a you'll do long-term So do increase growth our It's strategy. critical is profitability. my buy think that. And in product of script organic to to bunch product then a the was part go M&A see let's us continue a our how I a us It's for we create revenue. not

is about didn't, I "Hey, of we the it if tell really so today. you, talking here. we're call And would year, we're M&A to and that part I feel And first about But the be of not our good going strategy." on

holding the being from we So don't I as, acquisitive that think feel just right us back you now. take multiple

Bryan Menar

just mean, I Like of Agilysys at a even you are like this trading even X, those Agilysys between EBITDA, year. I of company you and the at X.Xx a post on ARR multiple. to sort Toast a multiples or talking gap double-digit ServiceTitan 'XX. and going on when like clarify at And post sales there's and companies was when ServiceTitan still was to a companies look on And sort 'XX sell-off, XX% I 'XX the ARR about EV massive decline. on look

continue but a executing So on levels growth and a discount. at trade the margin fact I'm other many we're highlighting like than better just from companies that these incremental perspective, we to

because is discount that to think I So company. narrow I this figure best-in-class out hope we a a can way

Savneet Singh

the look, that. And drive numbers

So our numbers will confident I drive And we'll there. feel it. get

Operator

from Our next question Andrew BTIG. with Harte comes

Andrew Harte

a from year, think a today guess evolved just enterprise business pipeline was your that past now. the ARR conversations brand Together and a with platform larger sales you more has scaled, bit of right how discuss much the robust obviously, message as some Savneet, I you perspective? big on. Better have I perspective has doubled CTOs these just pushing Can were little

Savneet Singh

pulling out the which in is signed the for deals the you enterprise script. Thank POS X impressive said, like I we quarter, in Absolutely. space. Listen,

products. it's sorry, outcome. Adam a I working. My is caller these flywheel up about it. But -- the Delaget accelerate working. multiple think pick going that it's our I with upsold when a largest conversations them it. to for before is thing customer We beautiful setting really organizations of All really interesting another talked -- the product. talked Clearly, Adam about And we're

now, so the back uncertainty As now of right efforts and create trying on are they're pull and consumers in focusing really front you -- end. efficiencies house to the consumer digital because restaurants in there's

in investments more technology. they're And so creating

making increasing technology they're in without their those investments staff. However,

flat and IT staffed, many restaurant operations are the particularly space. fact, in In companies

And want attach that? are so They add probably to PAR. going probably vendors. want do to how don't it X more to they They into

it's are very I've And so of just part existing us not it's had trust of they process reason relationship. because I've a why clear been love that can the best-in-class, just because PAR where products is sales they a couple our the

our clear. functionality. the amount experience can not we side how And just those -- effort lot of that separate just so looks when And we've be We I what win because it end the incredible that under you've you I an of in time demo Look bundle. a Delaget we're We had how win from that spent the Delaget winning to and that months I want it vendors, examples products. And on can't to now we combined Punchh one that roof saying, different PAR this the in we've a at unique in and runs got when powerful and better products was customer account deals that at amazing not PAR us customer. And Data win management as year a of because Brink? says, by to And rejigging so and together. now, if had I "Hey, teams -- "Oh, work focusing bring is do X push for or Central a my PAR." showing is happens team X a the than guess stress now is from here got

have really theme. can So can't." others the that it is the You POS

of out. dreamt we're candidly, all too that it's playing change exciting long We've multiproduct And it were have early probably thesis. think about a for But That's I quarter in a I really this would again, certainly the on for deals. been deals time. really our talking us. never

Andrew Harte

Burger the King expansion, the talked convenience Payments thinking about the then XXXX, And you deal, about deal.

there's moving think pieces. of I lot a

TASK gets into Another guess, layered I one into organic. organic Stuzo gets layered and is,

the coming that execute you think can than to have TASK Stuzo that we get you and can into things some layered have So along maybe businesses when organic, about things for growth, on? ready drive some of those been talk the higher you And much how 'XX? XX% about as of really getting

Savneet Singh

question. Great

has well getting the XX%. become will year. is acquisitions TASK then greater The help of us. suspect, to and Delaget be will sort XX% go will faster I TASK the And -- closer one X XX% our than organic a above Plexure. will itself year. Engagement rates. a Cloud So than grow Plexure TASK businesses. will Stuzo, TASK growth grow certainly to

revenue the stuff buy in acquisitions, the will because lap faster have as than growing look growth you faster acquisitions general, we -- So we that's organic us. to

And question, So part the happens. that's just as acquisitions. mathematically a back mention half it of that on the also it help year but we earlier will I of lap actually, didn't nice that the the

though, Second, we place. that more upon and our to the have execute deals in importantly, it's listen ability

even assumes growth do. to what of at customer. our if our can blow company will, we're conservative partners relatively you We want that. plan, know to So think that do rollout a largest to going get through XX-plus to we our percent double at POS And I

driving we job. in is done has can has And great leadership the job upside tremendous But deals because our the that? Number in an driving on increases deals real done execute in think certain there so business. two in on PAR team that's one, really our number a incredible performance. Retail, have our levers that there, I we of to Retail, pricing PAR based

we create these We'll third today. deals execute as good then really is is meaningful now to there. And I that's the in accelerated get go-to-market earlier we our see do couple uses -- is progresses. to I of out pull can thing pull we us in meaningfully But fold we sort and as see as something team up motion, that Delaget Data We And can about are the that that pricing an a goes feeling because because of last in then acquisitions, already think faster. there. And I ability live performance, I'd expect. think stuff an they our great than customer have levers Central say quite faster example. there it so And the as really and

it That not might cycle. think be to a our big the ability over but should time, I cycles shorten sales lever, shorten it so also. And creates nice sales

Operator

comes Our Stephens. from next question Charles Nabhan with

Charles Nabhan

like opportunity. growing broadly you TASK if of speak around XX%. drill see previous was around little to the I could wanted international and a TASK you would the But in specifically out? I helpful And the more wondering that further, as opportunity, Clearly, color It question about playing how that well. international into sounds TAM. excess specific expands any more your be it's

Savneet Singh

or foothold. changes we're markets so. But of strong now, right of I a And think are Absolutely. APAC talk We'll we've us because give in the on quarter it of where making going region to the core quarter investments really -- got just and lot we're are focusing sort about kind another next there. we

of part sort We that in execute nice really the long Zealand a are -- New winning and of world. And got brands the pipeline Australia, a on. we've to marquee we've got

of operationalize they as we It's out sites really about the that getting team become So of kind what a business. as programmatic part door. that can so we're the small the can business is helping

that through sites how of that. will, add a So quarter it thousand you gone something do or like if a hasn't scaling, you

took best TASK, our that. and is driving to kind PAR, implement at he charge working one of of of him we're leaders that. put And in We so

forward, so And pull region a first, do that going great we're job. that to focus on

high-quality brands partner us to obviously, U.S. expand crazy because in brought to kind the then, we globe. for master think, we'll then to other expand or outside of that that with around them That's there. want one X to trying brands parts I we're and that. can region, that us that exciting grow in X already, with have But We region really are of

Charles Nabhan

Or Hardware at could as how of through margins going margin already, within ask see drivers sort this Are well to the margin. you if expansion Nice peak potentially And quarter could Hardware within talk should apologize it. we Got about move uptick maybe fourth little about the quarter. we forward? that but follow-up, I expansion as as during a more business? we touched that about I of as wanted this on that you 'XX? think the we

Bryan Menar

Yes.

in low right? the margin we've there Professional some able the So best products the that's increase in -- both Services of now Hardware to XXs. to we've We're in out like for proud and which saw. you Hardware, linked mid-XXs of, been the Hardware, Hardware are Some actually the of year-over-year, been as the like we're percent

to be actual work would Professional going we continue as saw, get to So up increase. the XX%. went you XX% to it from to understand then from will like from only last modest we're We that. And Services, year we

business, grow, of increase been revenue XXs that's our we've upper Hardware then in Professional consistently now And to a we correlated, the mid revenue. from also Services. continue on that its as so that, to recurring And some would and

So margins of us how that. Hardware proud of good, not significant would we in consistent I over the But on the margin expect couple below have are both we've years. improvement Professional and But past improved Services. to that

Operator

Our next Anja question from comes Sidoti. with Soderstrom

Anja Soderstrom

given Have potential on X on already, customers the And the terms of you take you you X addressed in congrats year seen here. BK? have expanded customer been future Tier near and that in have able to I And how those are to in are them talking a the one terms question to with pipeline. great upselling as rollout of of Most the how well? Tier expanded? be going

Savneet Singh

X strong. Tier remains So pipeline

change is we've the really clearly the us. think I seen up picking for mid-market is

nice it's to see that. of So kind

far As rollout rollout concepts, additional we feel as a to product. is been able a additional planned. new out new module, With about this The roll part being good very of that. the BK, has

been So it kind of for won't the some core pipeline strong that's time here. POS impact

said, I there. don't to stumbles QX, it we And have investments sure I real we're an any have impact. think some QX making as don't and make So in will

bodies enough one it's peers didn't to the think is make -- didn't software time or spend I we our hire used I training. you the the because but right, you all getting of the ago see rollout years get and mistakes making

that right it I pulls think And getting up so spades make that we're -- now in faster the revenue we and overinvest you down in in because road.

Operator

now remarks. to at to back I'm for showing no Chris like time. would questions further Byrnes turn I closing it this

Chris Byrnes

and us updating to look and further great weekend. everyone Thank joining you, Thank you in nice We Have coming a you. forward to Daniel, and today. the you days. weeks day for a thank

Operator

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

You may now disconnect.

PAR Technology (PAR) 28 Feb 252024 Q4 Earnings call transcript