Core Insights - PAR Technology Corporation has launched its PAR POS Spring Release, which enhances core performance and introduces new features to improve restaurant operations and guest experiences [1][9] - The company emphasizes the balance between stability and innovation, aiming to provide faster and more resilient systems for restaurant staff while enhancing guest convenience [2] Enhanced Guest Convenience & Experience - The new release includes secure, contactless payment options such as Pay via SMS and QR code, allowing guests to pay using loyalty accounts and add items to open orders [3][4] - These features aim to create a seamless dining experience, improving transaction speed and table turnover for operators [4] Streamlined Staff Operations - The Spring Update introduces Geofencing Integration for real-time guest arrival estimates, which helps improve kitchen prep timing and reduce waste [5] - Tailored pricing options for item modifiers allow operators to adjust prices based on specific guest requests, enhancing profitability [6] Greater Tax Support - The update includes support for regional quantity-based tax rules and marketplace facilitator taxes, improving reporting accuracy and visibility into tax obligations [7] Platform Extensibility and Flexibility - Operators can now manage custom data through APIs, enhancing adaptability and cross-system tracking [8] - A new real-time Data Feed reduces item availability sync times from 5-10 minutes to near-instant, boosting performance for reporting and API integrations [8]

Group 1 - PAR Technology Corporation (NYSE: PAR) has experienced a stock price increase of approximately 48% over the past year, although it has seen a decline of 15% since the beginning of 2025 [1] - The company is noted for its rapid growth and strong fundamentals, particularly in the technology, infrastructure, and internet services sectors [1] Group 2 - The analyst emphasizes the importance of combining financial data with qualitative analysis to critically evaluate companies and sectors [1] - The focus remains on providing value to readers and investors interested in long-term investing [1]

Financial Performance - Total revenues for the year ended December 31, 2024, reached $349,982 thousand, a 26.4% increase from $276,714 thousand in 2023[250]. - Subscription service revenues significantly increased to $207,422 thousand in 2024, up 69.1% from $122,597 thousand in 2023[250]. - The gross margin improved to $146,124 thousand in 2024, compared to $89,446 thousand in 2023, reflecting a gross margin increase of 63.2%[250]. - Operating expenses rose to $225,221 thousand in 2024, a 39.7% increase from $161,166 thousand in 2023, driven by higher sales and marketing, general and administrative, and research and development costs[250]. - The net loss from continuing operations for 2024 was $89,910 thousand, compared to a loss of $81,619 thousand in 2023, indicating a 10.3% increase in losses[250]. - The comprehensive loss for 2024 was $24,999 thousand, compared to a loss of $69,326 thousand in 2023, showing a substantial reduction in overall losses[252]. - For the year ended December 31, 2024, the net loss was $4,987 thousand, a significant improvement compared to a net loss of $69,752 thousand in 2023[259]. Assets and Liabilities - As of December 31, 2024, total assets increased to $1,380.7 million from $802.6 million in 2023, representing a growth of 72%[248]. - Total liabilities increased to $509.0 million in 2024, compared to $469.5 million in 2023, reflecting a rise of 8.4%[248]. - The total current liabilities increased to $111.8 million in 2024, up from $80.2 million in 2023, indicating a rise of 39.4%[248]. - The company’s accumulated deficit stood at $(279.9) million as of December 31, 2024, compared to $(275.0) million in 2023, reflecting a slight increase in losses[248]. - Deferred tax liabilities rose significantly to $41.996 million in 2024 from $22.29 million in 2023, indicating a growing tax obligation[414]. Cash Flow and Investments - The company reported cash and cash equivalents of $108.1 million, a notable increase from $37.2 million in the previous year[248]. - Total cash, cash equivalents, and cash held on behalf of customers at the end of 2024 was $121,545 thousand, an increase from $47,539 thousand at the end of 2023[261]. - Cash used in operating activities for continuing operations was $21,313 thousand in 2024, down from $31,952 thousand in 2023[259]. - The company experienced a net cash used in investing activities of $180,112 thousand in 2024, compared to $7,781 thousand in 2023[259]. - The company’s cash flows from financing activities resulted in a net cash provided of $278,507 thousand in 2024, a recovery from a net cash used of $1,616 thousand in 2023[259]. Acquisitions and Goodwill - Goodwill rose significantly to $887.5 million in 2024, up from $488.9 million in 2023, indicating a substantial increase in acquisitions[248]. - The company completed the acquisition of Delaget for a total purchase consideration of $125.1 million, which included $16.9 million in cash and equity consideration valued at $108.2 million[331]. - The TASK Group acquisition was finalized for a total consideration of $245.5 million, comprising approximately $131.5 million in cash and 2.16 million shares of common stock valued at $52.70 each[341]. - The Stuzo acquisition was executed for approximately $170.5 million in cash and $19.2 million in common stock, expanding the company's presence in the convenience store market[350]. - Goodwill from the Delaget acquisition was preliminarily valued at $97.02 million, reflecting expected synergies and benefits from the acquisition[337]. Revenue Recognition - The Company recognizes hardware revenue at the point of sale when the customer obtains control of the asset, typically upon delivery[297]. - Subscription service revenue is recognized ratably over the contract period, which generally ranges from 12 to 36 months[299]. - Professional service revenue includes hardware support, installations, and other services, with installation revenue recognized at the point of completion[306][309]. - Deferred revenue represents amounts invoiced in excess of revenue recognized, with contracts typically requiring payment within 30 to 90 days[296]. - The Company evaluates performance obligations under ASC Topic 606 to determine revenue recognition criteria[295]. Research and Development - Research and development expenses increased to $67,258 thousand in 2024, up 15.2% from $58,356 thousand in 2023, highlighting the company's commitment to innovation[250]. - Stock-based compensation expense recorded for the year ended December 31, 2024, was $24.5 million, an increase from $14.3 million in 2023[405]. Stock and Equity - The weighted average shares outstanding increased to 34,155 thousand in 2024 from 27,552 thousand in 2023, reflecting a 23.9% increase[250]. - The Company issued common stock for acquisition totaling $133,180 thousand in 2024[261]. - The Company has 6.4 million shares of common stock reserved for stock-based awards under the 2015 Equity Incentive Plan[407]. - The balance of non-vested Restricted Stock Units (RSUs) at December 31, 2024, was 1,122,000 shares, with total stock-based compensation expense related to RSUs amounting to $21.7 million[409]. Discontinued Operations - Contract revenue from discontinued operations for the year ended December 31, 2024, was $66,540,000, a decrease of 52% compared to $139,109,000 in 2023[377]. - Net income from discontinued operations for 2024 was $84,923,000, significantly up from $11,867,000 in 2023, marking a year-over-year increase of 615%[377].

Q4 '24 Earnings Presentation February 28, 2025 NYSE: PAR partech.com 1 Forward-Looking Statements. This presentation 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 t ...

Financial Data and Key Metrics Changes - Total revenues for Q4 2024 were $105 million, representing a 50% increase year-over-year, driven by subscription services revenue growth of 95% [9][37] - Adjusted EBITDA for the quarter improved by $13.1 million compared to Q4 2023, indicating strong profitability growth [36][53] - Non-GAAP net loss for Q4 2024 was $37,000, a significant improvement from a non-GAAP net loss of $12 million in the prior year [37][53] Business Line Data and Key Metrics Changes - Subscription services revenue reached $64 million, up 95% from $33 million in the prior year, now representing 61% of core revenue [38] - Annual Recurring Revenue (ARR) exited the quarter at $276 million, a 102% increase year-over-year, with Engagement Cloud up 150% and Operator Cloud up 60% [39] - Hardware revenue increased by 7% to $26 million compared to the prior year, driven by increased volume from software customers [39] Market Data and Key Metrics Changes - The company reported strong interest in its payment services, with notable customer onboarding in Q4, including Paris Baguette and Gold Star Chili [19] - Engagement Cloud ARR reported 15% organic growth in Q4, now standing at approximately $159 million [24] - The company noted a growing trend in the industry towards disjointed multi-vendor solutions, positioning itself as a unique provider with first-party data integration [21][22] Company Strategy and Development Direction - The company is focused on a "better together" strategy, emphasizing product innovation and cross-selling across its software portfolio [12][56] - The acquisition of Delegate is expected to enhance product offerings and accelerate growth, particularly in the restaurant sector [15][57] - The company aims to maintain a robust pipeline for M&A opportunities to strengthen its market position and expand its total addressable market (TAM) [34][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving over 20% annual growth rates for 2025, with expectations for significant revenue acceleration in the second half of the year [62] - The company noted a disparity in the restaurant industry, with larger brands performing better due to their ability to invest in technology [92][95] - Management highlighted the importance of maintaining operational efficiency and cost discipline to support sustainable growth [60][63] Other Important Information - The company reported cash and cash equivalents of $108 million as of December 31, 2024, with improvements in cash flow metrics throughout the year [49][50] - Non-GAAP consolidated gross margin increased by 720 basis points to 50.3% [53] Q&A Session Summary Question: Upsell into Burger King and its impact on rollout timeline - Management indicated that the upsell would likely push the rollout timeline out by a quarter or a quarter and a half, but it would significantly increase the ARR opportunity [66][68] Question: Quarterly revenue cadence and margin expectations - Management expects meaningful margin expansion in the second half of the year, with revenue acceleration driven by multiple key deals [70][72] Question: Details on the Burger King contract - The core deal includes PAR POS, with potential expansion into PAR Ops, including Data Central and Delegate [80][81] Question: Insights on consumer health in the restaurant space - Management noted a slowdown in full-service dining but indicated that their customer base is still growing, albeit at low single digits [91][93] Question: Hardware revenue growth compared to competitors - Management attributed hardware revenue growth to strong product offerings and better integration with software solutions [99][100] Question: AI integration in drive-through hardware - The company is developing drive-through hardware that allows third-party voice AI companies to integrate through APIs, creating additional revenue opportunities [110][111] Question: Customer churn and return to Punch - Customers who previously left for guest data platforms returned to Punch due to the realization that loyalty programs are essential for driving ROI [114][116] Question: Financial profile of Delegate - Delegate had approximately $19 million in recurring revenue at the time of acquisition, with historical growth rates over 30% [120][122]

Revenue Growth - Q4 2024 revenue reached $105.0 million, a 50.2% increase compared to $69.9 million in Q4 2023[4] - Annual Recurring Revenue (ARR) grew to $276.0 million, reflecting a total growth of 102% and organic growth of 21% from $136.9 million reported in Q4 2023[5] - Full year 2024 revenue was $350.0 million, a 26.5% increase from $276.7 million in 2023[5] - Total revenues for the three months ended December 31, 2024, reached $105.005 million, a 50.4% increase from $69.900 million in the same period of 2023[19] - Subscription service revenues increased to $64.262 million, up 95.2% from $32.897 million year-over-year[19] Profitability and Loss - The company reported a net loss from continuing operations of $(89.9) million for the full year 2024, compared to $(81.6) million in 2023, a deterioration of $8.3 million[5] - Diluted net loss per share from continuing operations improved to $(2.63) in 2024 from $(2.96) in 2023, a betterment of $0.33[5] - Operating loss for the three months ended December 31, 2024, was $16.425 million, slightly improved from a loss of $17.765 million in the same period of 2023[19] - Net loss from continuing operations for the year ended December 31, 2024, was $89.910 million, compared to a loss of $81.619 million in 2023[19] - The net loss for the year ended December 31, 2024, was $69,752,000, compared to a net loss of $81,619,000 for 2023, showing an improvement of approximately 14.5%[27] Margins - Subscription service gross margin percentage improved to 53.2% in Q4 2024, up from 48.1% in Q4 2023, marking a 5.1% increase[4] - Gross margin for the year ended December 31, 2024, was $146.124 million, representing a 63.5% increase compared to $89.446 million in 2023[19] - Subscription Service Gross Margin Percentage improved to 53.5% for the year ended December 31, 2024, up from 48.0% in 2023, indicating a growth of 11.5%[28] - Non-GAAP Subscription Service Gross Margin Percentage was 65.9% for the year ended December 31, 2024, compared to 66.4% in 2023, showing a slight decline of 0.8%[28] Expenses - The company incurred $10.471 million in sales and marketing expenses for the three months ended December 31, 2024, an increase from $9.508 million in the same period of 2023[19] - Interest expense increased to $10,167,000 for the year ended December 31, 2024, from $6,931,000 in 2023, representing an increase of approximately 46.5%[27] - Stock-based compensation for the year ended December 31, 2024, was $14,291,000, compared to $24,487,000 in 2023, reflecting a decrease of about 41.6%[27] Shareholder Information - The weighted average shares outstanding increased to 37.197 million for the three months ended December 31, 2024, compared to 27.968 million in the same period of 2023[19] - The diluted weighted average shares outstanding increased to 34,155,000 for the year ended December 31, 2024, from 27,552,000 in 2023, an increase of approximately 23.8%[27] Strategic Developments - PAR Technology acquired Delaget, LLC, enhancing its capabilities in restaurant analytics and business intelligence solutions[5] - The company maintains confidence in its long-term growth strategy and shareholder value delivery[3] Tax Position - The provision for income taxes for the year ended December 31, 2024, was a benefit of $4,768,000, compared to a provision of $1,848,000 in 2023, indicating a significant change in tax position[27] Adjusted Metrics - Adjusted EBITDA reflects net loss before income taxes, interest expense, and depreciation, adjusted for non-cash and non-recurring charges[22] - Adjusted EBITDA for the year ended December 31, 2024, was $(38,397,000), compared to $5,776,000 in 2023, indicating a significant decrease[27]

PAR Technology (PAR) has been beaten down lately with too much selling pressure. While the stock has lost 15.1% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.Here is How to Spot Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that ...

Core Viewpoint - PAR Technology (PAR) has experienced a significant downtrend, with a 13.3% decline over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to analysts' positive earnings outlook [1] Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold stocks, with a reading below 30 typically indicating oversold conditions [2] - PAR's current RSI reading is 24.58, indicating that the heavy selling pressure may be exhausting, which could lead to a price rebound [5] Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts regarding PAR's earnings estimates, with a 2.5% increase in the consensus EPS estimate over the last 30 days, suggesting potential price appreciation [6] - PAR holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a near-term turnaround [7]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher [1] - The Zacks Momentum Style Score helps investors identify stocks with strong momentum, addressing the challenge of defining momentum [2] Group 2: PAR Technology Analysis - PAR Technology currently holds a Momentum Style Score of A and a Zacks Rank of 2 (Buy) [3][4] - Stocks rated Zacks Rank 1 (Strong Buy) and 2 (Buy) with Style Scores of A or B tend to outperform the market over the following month [4] Group 3: Performance Metrics - PAR shares have increased by 7.04% over the past week, outperforming the Zacks Computer - Integrated Systems industry, which rose by 5.71% [7] - Over the past quarter, PAR shares have gained 43.38%, and over the last year, they have increased by 102.7%, while the S&P 500 has only moved 7.42% and 32.55%, respectively [8] Group 4: Trading Volume and Earnings Outlook - PAR's average 20-day trading volume is 567,568 shares, indicating a bullish sign with rising stock prices [9] - In the past two months, one earnings estimate for PAR has moved higher, increasing the consensus estimate from -$0.83 to -$0.81 [11]

Company Overview - As of September 30, 2024, PAR Technology Corporation reported 36,305,087 shares of common stock outstanding[2]. - The company is classified as a Large Accelerated Filer, indicating a significant market presence and regulatory compliance[2]. Financial Performance - Total revenues for the three months ended September 30, 2024, increased to $96,754,000, up 40.8% from $68,701,000 in the same period of 2023[12]. - Subscription service revenue reached $59,909,000, a 91.1% increase compared to $31,363,000 in the prior year[12]. - Gross margin improved to $43,031,000 for the three months ended September 30, 2024, compared to $25,134,000 in the same period of 2023, reflecting a gross margin percentage increase[12]. - Operating loss for the three months ended September 30, 2024, was $15,194,000, slightly improved from a loss of $17,047,000 in the same period of 2023[12]. - Net loss from continuing operations for the three months ended September 30, 2024, was $20,664,000, compared to a loss of $19,234,000 in the prior year[12]. - Total revenues for the nine months ended September 30, 2024, were $244.977 million, a 17.5% increase from $206.814 million for the same period in 2023[103]. - The company reported a net income of $16,070 for the nine months ended September 30, 2024, compared to a net loss of $51,123 for the same period in 2023[18]. Cash and Assets - Cash and cash equivalents increased significantly to $105,804,000 as of September 30, 2024, from $37,183,000 at December 31, 2023[10]. - Total assets grew to $1,299,274,000 as of September 30, 2024, up from $802,606,000 at December 31, 2023[10]. - Total liabilities increased to $606,567,000 as of September 30, 2024, from $469,541,000 at December 31, 2023, reflecting increased operational scale[10]. - Total Shareholders' Equity increased to $692,707,000 as of September 30, 2024, up from $588,321,000 at June 30, 2024, reflecting a growth of approximately 17.7%[15]. Acquisitions and Integration - The company is focused on integrating acquisitions, such as Stuzo Holdings, LLC and TASK Group Holdings Limited, to enhance operational capabilities[7]. - The TASK Group Acquisition was completed on July 18, 2024, with a total purchase consideration of $245.5 million, including $131.5 million in cash and 2,163,393 shares of common stock[44]. - The Stuzo Acquisition on March 8, 2024, involved a total purchase consideration of approximately $170.5 million in cash and $19.2 million in common stock[53]. Revenue Streams - Subscription service revenues reached $143.2 million for the nine months ended September 30, 2024, up from $89.7 million in the same period of 2023[43]. - Hardware revenues decreased to $61.0 million, down $18.0 million or 22.8% compared to $79.0 million for the same period in 2023, primarily due to declines in terminals, peripherals, and kitchen display systems[129]. - Professional service revenues increased to $40.8 million, up $2.7 million or 7.1% compared to $38.1 million for the nine months ended September 30, 2023[131]. Operational Challenges - PAR anticipates challenges related to supply chain management, including securing alternative suppliers and managing inventory levels[7]. - Risks associated with international operations and geopolitical events are acknowledged as potential factors affecting business outcomes[7]. Employee and Internal Controls - PAR is committed to maintaining effective internal controls over financial reporting to ensure accuracy and compliance[8]. - The company is focused on attracting and retaining qualified employees to support business expansion and customer service needs[7]. Future Outlook - Forward-looking statements indicate expectations for future operations, including product offerings and market strategies, but actual results may differ due to various risks[5][6]. - The company expects total contractual obligations of $55.4 million over the next 12 months, which includes $36.3 million for normal operations and $17.1 million for interest payments on long-term debt[185]. - The company anticipates that available cash and cash equivalents will be sufficient to meet operating needs for at least the next 12 months[185].