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...
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
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):
Highlights of Operator Cloud - First Quarter 2024(1):
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 |
If you liked this article and want to stay up to date with news from
InnovationOpenLab.com subscribe to ours
Free newsletter.
Related newsLast NewsSparkle works on environmentally sustainable content distributionThe Italian company partners with MainStreaming for high-performance, energy-efficient video streaming Libraesva: being specialized is ok again in cybersecuritySoftware vendors developing vertical solutions against specific attack vectors are 'cool' again. And when it comes to email security, all companies now… Fintech: Links tests the use of exponential technologies in the banking…Links Management and Technology just concluded the testing phase of a research project focused on banking transformation Axyon AI: Italian Artificial Intelligence for Finance applicationsAxyon AI offers an AI platform specifically designed for asset management, with several interesting strengths for those approaching machine/deep learning… Most readSwitzerland Existing & Upcoming Data Center Database 2024 - Emerging Data…The "Switzerland Existing & Upcoming Data Center Portfolio" database has been added to ResearchAndMarkets.com's offering. This database product covers… Supply Wisdom Risk Management Expert Available for Comment on Global IT…Jenna Wells, former Marine Corps Captain and Chief Customer & Product Officer of real-time risk intelligence platform Supply Wisdom, is available… Eaton names Tiffany Hanisch senior vice president, Internal AuditIntelligent power management company Eaton (NYSE:ETN) today announced that Tiffany Hanisch has been named senior vice president, Internal Audit, effective… Transact Campus Rolls Out Mobile Credential Technology at the University…Transact Campus, (“Transact”) the award winning leader in innovative mobile credential and payment solutions for a connected campus, today announced the… G11 Media Networks |