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PAR Technology Corporation Announces First Quarter 2024 Results

PAR Technology Corporation (NYSE: PAR) (“PAR Technology” or the “Company”) today announced its financial results for the first quarter ended March 31, 2024. "We kicked off 2024 with momentum a...

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  • Annual Recurring Revenue (ARR)(1) grew to $185.7 million - total growth of 60.2% and organic growth of 24.8% from $115.9 million reported in Q1 '23
  • Quarterly subscription service revenues increased 37.2% year-over-year from Q1 '23
  • PAR acquired Stuzo, a digital engagement software provider to Convenience and Fuel Retailers (C-Stores), contributing $41.0 million in Q1 '24 ARR
  • PAR entered into an agreement to acquire TASK, a global food service transaction platform offering international unified commerce solutions, which is expected to close in Q3 ’24 subject to the satisfaction or waiver of certain conditions.

NEW HARTFORD, N.Y.: PAR Technology Corporation (NYSE: PAR) (“PAR Technology” or the “Company”) today announced its financial results for the first quarter ended March 31, 2024.

"We kicked off 2024 with momentum and are pleased to report that organic ARR growth has accelerated to 25% from the prior year first quarter,” said Savneet Singh, PAR Technology CEO. “The results evidence the continued demand for our products and our accelerated win rates. Our results will continue to improve as we consolidate Stuzo and later TASK and are pleased by the positive feedback we have received on both acquisitions from new and existing customers."

Summary of Fiscal 2024 First Quarter

  • Revenues were reported at $105.5 million for the three months ended March 31, 2024, a 5.0% increase compared to $100.4 million for the same period in 2023.
  • Net loss for the three months ended March 31, 2024 was $18.3 million, or $0.62 net loss per share, compared to a net loss of $15.9 million, or $0.58 net loss per share reported for the same period in 2023.
  • EBITDA(1) for the three months ended March 31, 2024 was a loss of $17.1 million compared to a loss of $7.0 million for the same period in 2023.
  • Adjusted EBITDA(1) for the three months ended March 31, 2024 was a loss of $7.2 million compared to an Adjusted EBITDA loss of $8.8 million for the same period in 2023.
  • Adjusted net loss(1) for the three months ended March 31, 2024 was $10.8 million, or $0.36 adjusted diluted net loss per share(1), compared to an adjusted net loss of $12.7 million, or $0.46 adjusted diluted net loss per share, for the same period in 2023.

Reconciliations and descriptions of non-GAAP financial measures to corresponding GAAP financial measures are included in the tables at the end of this press release.

_______

(1) See “Key Performance Indicators and Non-GAAP Financial Measures” below.

Beginning with the first quarter of 2024, the Company's key performance indicators ARR and Active Sites(1) are presented as two subscription service product lines: Engagement Cloud (Punchh, Stuzo, and MENU) and Operator Cloud (Brink POS, PAR Payment Services, PAR Pay, and Data Central). Our subscription service product lines were adjusted to align with how management views our business after the Stuzo Acquisition.

Highlights of Engagement Cloud - First Quarter 2024(1):

  • ARR at end of Q1 '24 totaled $107.2 million
  • Active Sites as of March 31, 2024 totaled 92.7 thousand restaurants

Highlights of Operator Cloud - First Quarter 2024(1):

  • ARR at end of Q1 '24 totaled $78.5 million
  • Active Sites as of March 31, 2024 totaled 27.0 thousand restaurants

Earnings Conference Call.

There will be a conference call at 9:00 a.m. (Eastern) on May 9, 2024, during which management will discuss the Company's financial results for the first quarter ended March 31, 2024. The earnings conference call will be webcast live. To access the webcast, please visit the PAR Technology Investor Relations website at www.partech.com/investor-relations/. A recording of the webcast will be available on this site after the event.

About PAR Technology Corporation.

For more than 40 years, PAR Technology Corporation’s (NYSE Symbol: PAR) cutting-edge products and services have helped bold and passionate restaurant brands build lasting guest relationships. We are the partner enterprise restaurants rely on when they need to serve amazing moments from open to close, during the most hectic rush hours, and when the world forces them to adapt and overcome. More than 70,000 restaurants in more than 110 countries use PAR’s restaurant point-of-sale, customer loyalty and engagement, payments, omnichannel digital ordering and delivery, and back-office software solutions as well as industry leading hardware and drive-thru offerings. To learn more, visit partech.com or connect with us on LinkedIn, Twitter, Facebook, and Instagram. The Company's Environmental, Social, and Governance report can be found at https://www.partech.com/company/ESG.

_______

(1) See “Key Performance Indicators and Non-GAAP Financial Measures” below.

Key Performance Indicators and Non-GAAP Financial Measures.

We monitor certain key performance indicators and non-GAAP financial measures in the evaluation and management of our business; certain key performance indicators and non-GAAP financial measures are provided in this press release because we believe they are useful in facilitating period-to-period comparisons of our business performance. Key performance indicators and non-GAAP financial measures do not reflect and should be viewed independently of our financial performance determined in accordance with GAAP. Key performance indicators and non-GAAP financial measures are not forecasts or indicators of future or expected results and should not have undue reliance placed upon them by investors.

Where non-GAAP financial measures are included in this press release, the most directly comparable GAAP financial measures and a detailed reconciliation between GAAP and non-GAAP financial measures is included in this press release under “Non-GAAP Financial Measures”.

Unless otherwise indicated, financial and operating data included in this press release is as of March 31, 2024.

As used in this press release,

“Annual Recurring Revenue” or “ARR” is the annualized revenue from subscription services, including subscription fees for our SaaS solutions and related software support, managed platform development services, and transaction-based payment processing services. We generally calculate ARR by annualizing the monthly subscription service revenue for all Active Sites as of the last day of each month for the respective reporting period.

“Active Sites” represent locations active on PAR’s subscription services as of the last day of the respective fiscal period.

Trademarks.

“PAR®,” “Brink POS®,” “Punchh®,” “MENUTM,” “Data Central®,” "Open Commerce®,” "PAR® Pay”, “PAR® Payment Services”, "StuzoTM," and other trademarks appearing in this press release belong to us.

Forward-Looking Statements.

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, Section 27A of the Securities Act of 1933, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical in nature, but rather are predictive of our future operations, financial condition, financial results, business strategies and prospects. Forward-looking statements are generally identified by words such as “believe,” “could”, “continue,” “expect,” “future”, “may,” “plan,” “should,” “soon to close,” “will,” and similar expressions. Forward-looking statements are based on management's current expectations and assumptions that are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause our actual results to differ materially from those expressed in or implied by forward-looking statements contained in this press release on our business, financial condition, and results of operations. Factors, risks, trends and uncertainties that could cause our actual results to differ materially from those expressed in or implied by forward-looking statements contained in this press release include, among others, our ability to successfully develop or acquire and transition new products and services and enhance existing products and services to meet evolving customer needs and respond to emerging technological trends, including artificial intelligence; unfavorable macroeconomic conditions, such as recession or slowed economic growth, fluctuating interest rates, inflation, and changes in consumer confidence and discretionary spending; the effects, costs and timing of any acquisitions, divestitures, and capital markets transactions; our ability to integrate acquisitions into our operations and the timing and costs associated therewith, including the acquisition of Stuzo Holdings, LLC; the closing of the acquisition of TASK Group Holdings Limited and the timing and costs thereof; the protection of our intellectual property; our ability to retain and add integration partners, and our success in acquiring and developing relevant technology for current, new, and potential customers for our service and product offerings; geopolitical events, including the effects of the Russia-Ukraine war, tensions with China and between China and Taiwan, the Israel-Hamas conflict and other hostilities in the Middle East; the competitive marketplace for talent and its impact on employee recruitment and retention; component shortages, inventory management, and/or manufacturing disruptions and logistics challenges; risks associated with our international operations; the effects of global pandemics, such as COVID-19, or other public health crises; our ability to maintain proper and effective internal control over financial reporting; changes in estimates and assumptions we make in connection with the preparation of our financial statements, in building our business and operational plans, and in executing our strategies; and the other factors, risks, trends and uncertainties discussed in our most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on the information available to us on the date hereof. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.

PAR TECHNOLOGY CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands, except share amounts)

 

Assets

March 31, 2024

 

December 31, 2023

Current assets:

 

 

 

Cash and cash equivalents

$

50,780

 

 

$

37,369

 

Cash held on behalf of customers

 

12,558

 

 

 

10,170

 

Short-term investments

 

21,730

 

 

 

37,194

 

Accounts receivable – net

 

69,958

 

 

 

63,382

 

Inventories

 

25,054

 

 

 

23,594

 

Other current assets

 

14,205

 

 

 

8,890

 

Total current assets

 

194,285

 

 

 

180,599

 

Property, plant and equipment – net

 

15,356

 

 

 

15,755

 

Goodwill

 

619,632

 

 

 

489,654

 

Intangible assets – net

 

157,713

 

 

 

94,852

 

Lease right-of-use assets

 

3,627

 

 

 

4,083

 

Other assets

 

18,300

 

 

 

17,663

 

Total Assets

$

1,008,913

 

 

$

802,606

 

Liabilities and Shareholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

39,832

 

 

$

29,808

 

Accrued salaries and benefits

 

14,264

 

 

 

19,141

 

Accrued expenses

 

11,153

 

 

 

10,443

 

Customers payable

 

12,558

 

 

 

10,170

 

Lease liabilities – current portion

 

1,201

 

 

 

1,366

 

Customer deposits and deferred service revenue

 

14,710

 

 

 

9,304

 

Total current liabilities

 

93,718

 

 

 

80,232

 

Lease liabilities – net of current portion

 

2,519

 

 

 

2,819

 

Long-term debt

 

378,155

 

 

 

377,647

 

Deferred service revenue – noncurrent

 

3,296

 

 

 

4,204

 

Other long-term liabilities

 

4,825

 

 

 

4,639

 

Total liabilities

 

482,513

 

 

 

469,541

 

Shareholders’ equity:

 

 

 

Preferred stock, $0.02 par value, 1,000,000 shares authorized, none outstanding

 

 

 

 

 

Common stock, $0.02 par value, 58,000,000 shares authorized, 35,439,115 and 29,386,234 shares issued, 33,973,906 and 28,029,915 outstanding at March 31, 2024 and December 31, 2023, respectively

 

703

 

 

 

584

 

Additional paid in capital

 

844,210

 

 

 

625,154

 

Accumulated deficit

 

(293,244

)

 

 

(274,956

)

Accumulated other comprehensive loss

 

(3,653

)

 

 

(939

)

Treasury stock, at cost, 1,465,209 shares and 1,356,319 shares at March 31, 2024 and December 31, 2023, respectively

 

(21,616

)

 

 

(16,778

)

Total shareholders’ equity

 

526,400

 

 

 

333,065

 

Total Liabilities and Shareholders’ Equity

$

1,008,913

 

 

$

802,606

 

See notes to unaudited interim condensed consolidated financial statements included in the Company's quarterly report on Form 10-Q for the quarter ended March 31, 2024 (the “Quarterly Report”).

PAR TECHNOLOGY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except per share amounts)

 

 

Three Months Ended

March 31,

 

 

 

2024

 

 

 

2023

 

Revenues, net:

 

 

 

Hardware

$

18,226

 

 

$

26,777

 

Subscription service

 

38,379

 

 

 

27,965

 

Professional service

 

13,468

 

 

 

13,842

 

Contract

 

35,424

 

 

 

31,853

 

Total revenues, net

 

105,497

 

 

 

100,437

 

Costs of sales:

 

 

 

Hardware

 

14,170

 

 

 

22,381

 

Subscription service

 

18,594

 

 

 

13,925

 

Professional service

 

11,251

 

 

 

11,366

 

Contract

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