PAR Technology Corporation Announces Fourth Quarter and Full Year 2024 Results
PAR Technology Corporation (NYSE: PAR) (“PAR Technology” or the “Company”) today announced its financial results for the fourth quarter and year ended December 31, 2024. PAR CEO, Savneet Singh...
- Annual Recurring Revenue (ARR)(1) grew to $276.0 million - total growth of 102% inclusive of organic growth of 21% from $136.9 million reported in Q4 '23
- Quarterly subscription service revenues increased 95% year-over-year, inclusive of organic growth of 25% from Q4 '23
- PAR acquired Delaget, LLC ("Delaget"), a leading provider of restaurant analytics and business intelligence solutions
NEW HARTFORD, N.Y.: PAR Technology Corporation (NYSE: PAR) (“PAR Technology” or the “Company”) today announced its financial results for the fourth quarter and year ended December 31, 2024.
PAR CEO, Savneet Singh commented, "We delivered a strong fourth quarter, with 21% organic ARR growth year-over-year and our second consecutive quarter of positive Adjusted EBITDA, proving out our better together thesis. 2024 was a milestone year for PAR with what I believe is our best organic execution yet. That execution, combined with the addition of accretive modules, sets our company up to keep our flywheel moving aggressively for years to come. We continue to be confident in our ability to drive further long-term growth and deliver shareholder value."
Q4 2024 Financial Highlights(2) |
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(in millions, except % and per share amounts) | GAAP |
| Non-GAAP(1) | ||||||||||||
Q4 2024 | Q4 2023 | vs. Q4 2023 |
| Q4 2024 | Q4 2023 | vs. Q4 2023 | |||||||||
Revenue | $ | 105.0 |
| $ | 69.9 |
| better 50.2% |
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Net Loss from Continuing Operations/Adjusted EBITDA | $ | (25.3 | ) | $ | (21.5 | ) | worse $3.8 million |
| $ | 5.8 |
| $ | (7.4 | ) | better $13.1 million |
Diluted Net Loss Per Share from Continuing Operations | $ | (0.68 | ) | $ | (0.77 | ) | better $0.09 |
| $ | (0.00 | ) | $ | (0.43 | ) | better $0.43 |
Subscription Service Gross Margin Percentage |
| 53.2 | % |
| 48.1 | % | better 5.1% |
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| 64.7 | % |
| 65.3 | % | worse 0.6% |
Full Year 2024 Financial Highlights(2) |
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(in millions, except % and per share amounts) | GAAP |
| Non-GAAP(1) | ||||||||||||
2024 | 2023 | vs. 2023 |
| 2024 | 2023 | vs. 2023 | |||||||||
Revenue | $ | 350.0 |
| $ | 276.7 |
| better 26.5% |
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Net Loss from Continuing Operations/Adjusted EBITDA | $ | (89.9 | ) | $ | (81.6 | ) | worse $8.3 million |
| $ | (6.4 | ) | $ | (38.4 | ) | better $32.0 million |
Diluted Net Loss Per Share from Continuing Operations | $ | (2.63 | ) | $ | (2.96 | ) | better $0.33 |
| $ | (0.73 | ) | $ | (1.96 | ) | better $1.23 |
Subscription Service Gross Margin Percentage |
| 53.5 | % |
| 48.0 | % | better 5.5% |
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| 65.9 | % |
| 66.4 | % | worse 0.5% |
(1) See “Key Performance Indicators and Non-GAAP Financial Measures” for reconciliations and descriptions of non-GAAP financial measures to corresponding GAAP financial measures. Amounts presented in the reconciliations and other tables presented herein may not sum due to rounding.
(2) Results exclude historical results from our Government segment which are reported as discontinued operations.
The Company's key performance indicators ARR and Active Sites(1) are presented as two subscription service product lines:
- Engagement Cloud consisting of Punchh, PAR Retail, PAR Ordering, and Plexure product offerings.
- Operator Cloud consisting of PAR POS, PAR Payment Services, PAR Pay, PAR OPS (Data Central and Delaget), and TASK product offerings.
Highlights of Engagement Cloud - Fourth Quarter 2024(1):
- ARR at end of Q4 '24 totaled $159.1 million
- Active Sites as of December 31, 2024 totaled 119.7 thousand
Highlights of Operator Cloud - Fourth Quarter 2024(1):
- ARR at end of Q4 '24 totaled $116.8 million
- Active Sites as of December 31, 2024 totaled 54.8 thousand
(1) See “Key Performance Indicators and Non-GAAP Financial Measures” below.
Earnings Conference Call.
There will be a conference call at 9:00 a.m. (Eastern) on February 28, 2025, during which management will discuss the Company's financial results for the fourth quarter ended December 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 over four decades, PAR Technology Corporation (NYSE: PAR) has been at the forefront of technology innovation in foodservice, helping businesses create exceptional guest experiences and connections. PAR’s comprehensive suite of software and hardware solutions, including point-of-sale, digital ordering, loyalty, back-office management, and payments, serves a diverse range of hospitality and retail clients across more than 110 countries. With its “Better Together” ethos, PAR continues to deliver unified solutions that drive customer engagement, efficiency, and growth, all to make it easier for PAR’s customers to manage their operations. To learn more, visit partech.com or connect with us on LinkedIn, X (formerly Twitter), Facebook, and Instagram. The Company's Environmental, Social, and Governance report can be found at https://www.partech.com/company/ESG.
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 December 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. Our reported ARR is based on a constant currency, using the exchange rates established at the beginning of the year and consistently applied throughout the period and to comparative periods presented. For acquisitions made during each period, the constant currency rate applied is the exchange rate at the date of each acquisition's closure. There was no impact on our prior period ARR as a result of applying a constant currency as the exchange rate effects only began with the TASK Group Acquisition in 2024.
“Active Sites” represent locations active on PAR’s subscription services as of the last day of the respective reporting period.
Trademarks.
“PAR®,” “PAR POS®” (formerly “Brink POS®”), “Punchh®,” “PAR Ordering™” (formerly “MENU™”), "PAR OPS™," “Data Central®," “Delaget™,” "PAR Retail™", "PAR® Pay”, “PAR® Payment Services”, and other trademarks identifying our products and services appearing in this press release belong to us.
Forward-Looking Statements.
This press release contains forward-looking statements made pursuant to the safe harbor provisions 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, the accuracy of such statements is necessarily subject to risks, uncertainties and assumptions as to future events that may not prove to be accurate. These statements include, but are not limited to, express or implied forward-looking statements relating to the plans, strategies and objectives of management relating to PAR's growth, results of operations, and financial performance, including service and product offerings, the development, demand, market share, and competitive performance of our products and services, continued growth of our business, our ability to achieve and sustain profitability, acceleration or improvement of financial results, annual recurring revenue (ARR) growth, active sites, future efficiencies and scale economics, customer retention, capital investment and re-investment, expanding our addressable markets, cross-selling efforts, and anticipated benefits of acquisitions, divestitures, and capital markets transactions. These statements are neither promises nor guarantees but are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements.
Factors, risks, trends and uncertainties that could cause actual results to differ materially from those expressed or implied by forward-looking statements include 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 (AI); our ability to successfully integrate acquisitions into our operations, and realize the anticipated benefits; macroeconomic trends, such as a recession or slowed economic growth, fluctuating interest rates, inflation, and changes in consumer confidence and discretionary spending; our ability to successfully expand our business or products into new markets or industries; geopolitical events, such the Russia-Ukraine war, tensions with China and between China and Taiwan, hostilities in the Middle East, including the Israel conflict(s), and uncertainty relating to new or increased tariffs or other trade restrictions implemented by the U.S. or retaliatory trade measures or tariffs implemented by other countries; and the other factors discussed in our most recent Annual Report on Form 10-K and our 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 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 | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(unaudited, in thousands, except share amounts) | |||||||
Assets | December 31, 2024 |
| December 31, 2023 | ||||
Current assets: |
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Cash and cash equivalents | $ | 108,117 |
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| $ | 37,183 |
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Cash held on behalf of customers |
| 13,428 |
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| 10,170 |
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Short-term investments |
| 524 |
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| 37,194 |
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Accounts receivable – net |
| 59,726 |
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| 42,679 |
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Inventories |
| 21,861 |
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| 23,560 |
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Other current assets |
| 14,390 |
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| 8,123 |
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Current assets of discontinued operations |
| — |
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| 21,690 |
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Total current assets |
| 218,046 |
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| 180,599 |
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Property, plant and equipment – net |
| 14,107 |
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| 15,524 |
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Goodwill |
| 887,459 |
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| 488,918 |
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Intangible assets – net |
| 237,333 |
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| 93,969 |
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Lease right-of-use assets |
| 8,221 |
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| 3,169 |
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Other assets |
| 15,561 |
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| 17,642 |
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Noncurrent assets of discontinued operations |
| — |
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| 2,785 |
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Total Assets | $ | 1,380,727 |
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| $ | 802,606 |
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Liabilities and Shareholders’ Equity |
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Current liabilities: |
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Accounts payable | $ | 34,784 |
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| $ | 25,599 |
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Accrued salaries and benefits |
| 22,487 |
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| 14,128 |
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Accrued expenses |
| 13,938 |
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| 3,533 |
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Customers payable |
| 13,428 |
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| 10,170 |
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Lease liabilities – current portion |
| 2,256 |
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| 1,120 |
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Customer deposits and deferred service revenue |
| 24,944 |
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| 9,304 |
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Current liabilities of discontinued operations |
| — |
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| 16,378 |
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Total current liabilities |
| 111,837 |
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| 80,232 |
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Lease liabilities – net of current portion |
| 6,053 |
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| 2,145 |
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Long-term debt |
| 368,355 |
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| 377,647 |
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Deferred service revenue – noncurrent |
| 1,529 |
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| 4,204 |
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Other long-term liabilities |
| 21,243 |
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| 3,603 |
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Noncurrent liabilities of discontinued operations |
| — |
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| 1,710 |
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