PAR Technology (PAR) came out with a quarterly loss of $0.33 per share versus the Zacks Consensus Estimate of a loss of $0.27. This compares to loss of $0.26 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -22.22%. A quarter ago, it was expected that this software provider for the hospitality industry would post a loss of $0.33 per share when it actually produced a loss of $0.21, delivering a surprise of 36.36%.Over the last f ...

Restaurant/Retail Segment - PAR's Restaurant/Retail segment serves over 70,000 active restaurant locations with omnichannel cloud-based software and hardware solutions[14] - PAR's subscription services include SaaS solutions and transaction-based payment processing, with over 500 integration partners[18][23] - PAR's hardware offerings include POS terminals, tablets, wireless headsets, and drive-thru systems, designed for harsh food service environments[24] - PAR's long-term relationships with McDonald's and Yum! Brands contribute 17% of total revenue[31] - PAR's SaaS solutions include PUNCHH for customer loyalty and MENU for digital ordering, enhancing customer engagement and operational efficiency[18][19] - PAR's omnichannel solutions aim to integrate data points for guest satisfaction and operational efficiencies across restaurant enterprises[16] - The Restaurant/Retail segment offers omnichannel solutions including point-of-sale, customer engagement, digital ordering, and payment processing[278] - The company's revenue in the Restaurant/Retail segment is derived from hardware sales, subscription services, and professional services, with revenue recognition governed by ASC Topic 606[307] - Hardware revenue is recognized at the point in time when the customer obtains control of the asset, typically upon delivery to a third-party carrier[309] - Subscription service revenue, including SaaS solutions, is recognized ratably over the contract period, which generally ranges from 12 to 36 months[311] - Software support revenue is recognized ratably over the contract term, typically 12 months, as the company satisfies its "stand-ready" obligations[312] - Transaction-based payment processing revenue is recognized net of refunds and reversals, with variable fees allocated based on ASC 606 allocation objectives[313] - Deferred revenue for the Restaurant/Retail segment was $7.3 million (current) and $4.2 million (non-current) as of December 31, 2023[371] - Total disaggregated revenue for 2023 was $124.9 million (Point in Time) and $151.8 million (Over Time) for the Restaurant/Retail segment[375] - Net accounts receivable for 2023 was $63.4 million, with $42.7 million from the Restaurant/Retail segment[378] Government Segment - PAR's Government segment provides advanced systems and software solutions for the U.S. Department of Defense and intelligence community[37] - PAR's ISR group focuses on mobile geospatial applications, C-sUAS, and data science, supporting tactical edge situational awareness[38][39] - PAR's ISR group is expanding through the development and implementation of C-sUAS systems, supporting force protection efforts[41] - PAR's MS group operates and maintains satellite communication and teleport facilities with ultra-high, super high, and extremely high frequency satellite communication earth terminals[42] - Approximately 70% of PAR's MS group footprint is outside the continental U.S., with contracts in Europe, Middle East, Africa, Australia, and U.S. commonwealths and territories[45] - PAR Government has an average contract duration of three to five years, with some contracts continuing for 20 years or more[46] - PAR Government offers three commercial software products: geospatial visualization (GV) image processing suite, Situation-X (Sit-X), and GVStreamer software[48] - PAR's MS group provides 24/7/365 support services for satellite communication systems, including satellite control center operations and mission planning[43] - PAR's MS group supports critical information systems for the National Command Authority, DoD, and other federal agencies, with a significant global presence[45] - PAR Government's commercial software business focuses on video streaming and replication technologies for unmanned aerial vehicle operators and tactical edge mobile device users[51] - The Government segment provides ISR solutions, mission systems operations, and commercial software products for defense and intelligence applications[278] - The company's Government segment revenue is predominantly recognized over time, with revenue generated from services, materials, software, hardware, and maintenance[322] - The government segment had a contract backlog of $326.0 million as of December 31, 2023, with $179.5 million expected to be recognized in the next 12 months[373] Financial Performance - Total revenues for 2023 increased to $415.8 million, up 16.9% from $355.8 million in 2022[268] - Subscription service revenue grew to $122.6 million in 2023, a 25.7% increase from $97.5 million in 2022[268] - Net loss for 2023 was $69.8 million, slightly higher than the $69.3 million loss in 2022[268] - Cash and cash equivalents decreased to $37.4 million in 2023 from $70.3 million in 2022[266] - Total assets declined to $802.6 million in 2023 from $854.9 million in 2022[266] - Research and development expenses increased to $58.4 million in 2023, up 20% from $48.6 million in 2022[268] - Gross margin improved to $98.3 million in 2023, up 10.1% from $89.3 million in 2022[268] - Weighted average shares outstanding increased to 27.6 million in 2023 from 27.2 million in 2022[268] - Net loss for 2023 was $69.8 million, compared to $69.3 million in 2022 and $75.8 million in 2021[274] - Cash used in operating activities decreased to $17.1 million in 2023 from $43.1 million in 2022 and $53.2 million in 2021[274] - Cash used in investing activities was $7.8 million in 2023, significantly lower than $66.7 million in 2022 and $383.0 million in 2021[274] - Cash and cash equivalents decreased to $47.5 million at the end of 2023 from $77.5 million in 2022 and $188.4 million in 2021[274] - Stock-based compensation expense was $14.4 million in 2023, compared to $13.4 million in 2022 and $14.6 million in 2021[274] - Depreciation and amortization expenses increased to $27.5 million in 2023 from $26.1 million in 2022 and $21.4 million in 2021[274] - Total shareholders' equity decreased to $333.1 million at the end of 2023 from $375.2 million in 2022 and $504.3 million in 2021[271] - Net loss per share for 2023 was $(2.53), compared to $(2.55) in 2022 and $(3.02) in 2021[337] Acquisitions and Contingent Considerations - The fair value of contingent consideration for the MENU Technologies AG acquisition was adjusted to $0.6 million as of December 31, 2023[260] - The MENU Acquisition resulted in an initial contingent consideration liability of $14.2 million in 2022, which was adjusted to $9.8 million by the end of 2022 and further reduced to $0.6 million by the end of 2023[330][331] - The MENU acquisition in 2022 involved $18.4 million in cash and $6.3 million in company stock, with an additional $14.2 million earn-out potential[342] - The MENU earn-out fair value was adjusted to $0.6 million as of December 31, 2023, down from $14.2 million at acquisition[342] - The Punchh acquisition in 2021 totaled $507.7 million, including $397.5 million in cash and 1,493,130 shares of company stock[353] - The company incurred $1.1 million in acquisition expenses related to the MENU acquisition[349] - The Punchh acquisition resulted in a $3.5 million reduction in cash consideration due to escrow account settlements[356] - The fair value of developed technology in the Punchh acquisition was reduced by $3.6 million during 2021[358] - The total purchase price allocation for the Punchh Acquisition was $553.8 million, with goodwill accounting for $415.1 million[361] - The Punchh Acquisition added $27.7 million in revenue for the year ended December 31, 2021[369] - The company's unaudited pro forma total revenue for 2021 was $291.6 million, with a net loss of $79.1 million[370] Debt and Financial Instruments - As of December 31, 2023, PAR had $120.0 million and $265.0 million in aggregate principal amount outstanding on the 2026 Notes and 2027 Notes, respectively[252] - Long-term debt decreased to $377.6 million in 2023 from $389.2 million in 2022[266] - The company repurchased $66.3 million of 2024 Notes using proceeds from the 2026 Notes issuance, resulting in a loss on settlement of $8.1 million[389] - The 2027 Notes were issued at $265.0 million with a 1.500% interest rate, used to repay the $180.0 million Owl Rock Term Loan and for general corporate purposes[390] - The company acquired $13.75 million of 2024 Notes in exchange for 497,376 shares of common stock, resulting in a $0.6 million loss on extinguishment of debt[391] - The 2026 Notes are convertible at 23.2722 shares per $1,000 principal amount, while the 2027 Notes are convertible at 12.9870 shares per $1,000 principal amount[392] - The implied effective rate of the liability component for the 2024 Notes, 2026 Notes, and 2027 Notes was 10.2%, 7.3%, and 6.5%, respectively[394] - Initial measurement of the 2024 Notes resulted in a liability of $62.4 million and an implied value of the convertible feature of $17.6 million[395] - Initial measurement of the 2026 Notes resulted in a liability of $93.8 million and an implied value of the convertible feature of $26.2 million[395] - Initial measurement of the 2027 Notes resulted in a liability of $199.2 million and an implied value of the convertible feature of $65.8 million[395] - Issuance costs for the 2024 Notes amounted to $4.9 million, with $3.8 million allocated to debt and $1.1 million to equity components[395] - Issuance costs for the 2026 Notes amounted to $4.2 million, with $3.3 million allocated to debt and $0.9 million to equity components[395] - Issuance costs for the 2027 Notes amounted to $8.3 million, with $6.2 million allocated to debt and $2.1 million to equity components[395] Research and Development - Research and development expenses were $58.4 million in 2023, up from $48.6 million in 2022 and $34.6 million in 2021[36] - Research and development expenses increased to $58.4 million in 2023, up 20% from $48.6 million in 2022[268] Workforce and Diversity - PAR Government's U.S. employee population consists of 27% ethnically diverse employees and 28% women, while globally, the workforce consists of 26% women[59] Operational Risks and Mitigations - PAR's hardware supply chain faces risks from industry-wide shortages and pricing fluctuations, mitigated by expanded supplier networks[35] Accounting and Financial Reporting - The company retroactively split its "Selling, general and administrative" financial statement line item into "Sales and marketing" and "General and administrative" for clearer insight into operating expenses[325] - The company is evaluating the impact of new FASB standards ASU 2023-09 and ASU 2023-07 for future financial disclosures[338][339] - The company's provision for income taxes is based on pretax loss, with deferred income taxes provided for temporary differences between financial reporting and tax bases[335] Inventory and Asset Management - Inventories decreased to $23.6 million in 2023 from $37.6 million in 2022, with finished goods dropping to $13.6 million from $22.0 million[379] - Property, plant, and equipment increased to $43.4 million in 2023 from $37.6 million in 2022, with software assets rising to $17.2 million from $12.4 million[380] - Internally developed software costs increased to $36.9 million in 2023 from $32.3 million in 2022, with a weighted average amortization period of 1.95 years[382] - Goodwill increased to $489.7 million in 2023 from $486.8 million in 2022, primarily due to foreign currency translation adjustments[384] Leases and Contingent Liabilities - The company's total lease expense for 2023 was $2.0 million, with future lease payments totaling $4.6 million[376][377] - Warranty provisions decreased to $650,000 in 2023 from $722,000 in 2022, with $112,000 in claims settled in 2023 compared to $224,000 in 2022[304] - Contingent consideration liability related to the MENU Acquisition was reclassified to accrued expenses, with a balance of $0.6 million in 2023 compared to zero in 2022[298] Insurance and Legal Settlements - The company received $0.5 million in insurance proceeds during 2023 and $4.4 million in 2021, related to the settlement of a legacy claim[332] Shareholder Equity and Stock Options - The company had 920,403 anti-dilutive stock options outstanding as of December 31, 2023, down from 1,029,417 in 2022 and 1,305,881 in 2021[336] Miscellaneous - Payments to Act III Management for services decreased to $0.1 million in 2023 from $0.6 million in 2022 and $1.3 million in 2021[306] - In Q4 2023, the company acquired payment facilitator referral commissions for $2.2 million, increasing intangible assets[341]

[Financial Highlights](index=1&type=section&id=PAR%20TECHNOLOGY%20CORPORATION%20ANNOUNCES%20FOURTH%20QUARTER%20AND%20FULL%20YEAR%202023%20RESULTS) This section provides an overview of PAR Technology's financial performance for Q4 and the full year 2023, highlighting key revenue and loss metrics [Q4 2023 Financial Summary](index=1&type=section&id=Summary%20of%20Fiscal%202023%20Fourth%20Quarter) PAR Technology's Q4 2023 revenue grew 10.3% to $107.7 million, but net loss widened to $18.6 million and Adjusted EBITDA loss increased Q4 2023 Financial Performance vs. Q4 2022 (in millions) | Metric | Q4 2023 | Q4 2022 | Change | | :--- | :--- | :--- | :--- | | **Revenues** | $107.7 | $97.7 | +10.3% | | **Net Loss** | $(18.6) | $(13.5) | +37.8% | | **Net Loss per Share** | $(0.67) | $(0.50) | +34.0% | | **EBITDA** | $(8.8) | $(4.6) | +91.3% | | **Adjusted EBITDA** | $(4.5) | $(2.8) | +60.7% | | **Adjusted Net Loss** | $(9.3) | $(7.0) | +32.9% | | **Adjusted Net Loss per Share** | $(0.33) | $(0.26) | +26.9% | [Full Year 2023 Financial Summary](index=1&type=section&id=Summary%20of%20Full%20Year%20Financial%20Results) Full year 2023 revenues grew 16.9% to $415.8 million, with strong subscription and ARR growth, while net loss remained stable Full Year 2023 Financial Performance vs. 2022 (in millions) | Metric | FY 2023 | FY 2022 | Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $415.8 | $355.8 | +16.9% | | **Subscription Service Revenues** | $122.6 | $97.5 | +25.7% | | **Annual Recurring Revenue (ARR)** | $136.9 | $111.4 | +22.8% | | **Net Loss** | $(69.8) | $(69.3) | +0.7% | | **Net Loss per Share** | $(2.53) | $(2.55) | -0.8% | | **Adjusted EBITDA** | $(25.8) | $(18.8) | +37.2% | | **Adjusted Net Loss** | $(42.0) | $(35.9) | +17.0% | [Business Segment Performance](index=3&type=section&id=Business%20Segment%20Performance) This section details the company's business segment performance, including CEO insights and key product line indicators [CEO Commentary](index=3&type=section&id=CEO%20Commentary) CEO Savneet Singh attributes strong Q4 performance to unified commerce platform growth and key customer acquisitions, including Burger King - The company's strong Q4 results were driven by the strength of its unified commerce platform, leading to notable new customer wins[6](index=6&type=chunk) - Key new customers include Burger King, Hooters of America, and Bob Evans[6](index=6&type=chunk) - PAR is focused on executing the Burger King rollout and capitalizing on new business opportunities in early 2024[6](index=6&type=chunk) [Key Performance Indicators by Product Line](index=3&type=section&id=Key%20Performance%20Indicators%20by%20Product%20Line) Q4 2023 KPIs show Guest Engagement leading in ARR and active sites, with Operator Solutions strong in ARR and new bookings Q4 2023 Key Performance Indicators by Product Line | Product Line | ARR (End of Q4 '23) (in millions) | New Store Activations (Q4 '23) | Bookings (Q4 '23) | Active Sites (as of Dec 31, '23) (in thousands) | | :--- | :--- | :--- | :--- | :--- | | **Guest Engagement** | $63.8 | ~3,200 | N/A | ~70.8 | | **Operator Solutions** | $60.2 | ~1,200 | ~3,400 | ~23.3 | | **Back Office** | $13.0 | ~400 | N/A | ~7.7 | [Financial Statements](index=7&type=section&id=Financial%20Statements) This section presents the company's consolidated financial statements, including balance sheets and statements of operations [Consolidated Balance Sheets](index=7&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of December 31, 2023, total assets decreased to $802.6 million, primarily due to reduced cash and inventories, impacting overall equity Balance Sheet Summary (in thousands) | Account | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $37,369 | $70,328 | | Total current assets | $180,599 | $223,949 | | **Total Assets** | **$802,606** | **$854,858** | | Total current liabilities | $80,232 | $67,824 | | Long-term debt | $377,647 | $389,192 | | **Total Liabilities** | **$469,541** | **$479,664** | | **Total Shareholders' Equity** | **$333,065** | **$375,194** | [Consolidated Statements of Operations](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Full year 2023 revenues increased to $415.8 million, led by subscription services, but higher operating expenses resulted in a $69.8 million net loss Statement of Operations Summary (in thousands) | Account | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--- | :--- | :--- | | **Total revenues, net** | **$415,823** | **$355,795** | | Subscription service revenue | $122,597 | $97,499 | | Hardware revenue | $103,391 | $114,410 | | Gross margin | $98,310 | $89,293 | | Total operating expenses | $158,019 | $147,325 | | Operating loss | $(59,709) | $(58,032) | | **Net loss** | **$(69,752)** | **$(69,319)** | | **Net loss per share** | **$(2.53)** | **$(2.55)** | [Supplemental Information and Non-GAAP Measures](index=9&type=section&id=SUPPLEMENTAL%20INFORMATION) This section provides supplemental financial information, including segment revenue breakdown and reconciliations of non-GAAP financial measures [Segment Revenue by Product Line](index=9&type=section&id=Segment%20Revenue%20by%20Product%20Line) Q4 2023 saw a slight revenue decrease in Restaurant/Retail due to hardware decline, while the Government segment experienced strong growth Segment Revenue (in thousands) | Segment | Q4 2023 | Q4 2022 | Change YoY | | :--- | :--- | :--- | :--- | | **Restaurant/Retail** | **$69,900** | **$70,977** | **-1.5%** | | Hardware | $24,400 | $29,590 | -17.5% | | Subscription service | $32,897 | $27,908 | +17.9% | | **Government** | **$37,808** | **$26,673** | **+41.7%** | | **Total Revenue** | **$107,708** | **$97,650** | **+10.3%** | [Reconciliation of Non-GAAP Financial Measures](index=9&type=section&id=Non-GAAP%20Financial%20Measures) The company provides non-GAAP measures, including Adjusted EBITDA and Adjusted Net Loss, to offer supplemental insight into core business trends by excluding non-recurring charges - The company uses non-GAAP measures like EBITDA, adjusted EBITDA, and adjusted net loss to evaluate its continuing operations and believes they provide investors with insight into underlying business trends[24](index=24&type=chunk)[25](index=25&type=chunk) - Adjustments primarily exclude non-cash and non-recurring charges such as stock-based compensation, acquisition expenses, amortization of acquired intangibles, and litigation expenses[25](index=25&type=chunk)[27](index=27&type=chunk) [Reconciliation of Net Loss to EBITDA and Adjusted EBITDA](index=10&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20EBITDA%20and%20Adjusted%20EBITDA) Q4 2023 GAAP net loss of $18.6 million reconciled to an Adjusted EBITDA loss of $4.5 million, with full year Adjusted EBITDA loss at $25.8 million Q4 Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Q4 2023 | Q4 2022 | | :--- | :--- | :--- | | **Net loss** | **$(18,629)** | **$(13,481)** | | Depreciation and amortization | $7,001 | $6,502 | | **EBITDA** | **$(8,791)** | **$(4,599)** | | Stock-based compensation | $3,785 | $3,169 | | Contingent consideration | $(1,700) | $(4,400) | | Transaction costs | $2,273 | $215 | | **Adjusted EBITDA** | **$(4,454)** | **$(2,844)** | Full Year Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | FY 2023 | FY 2022 | | :--- | :--- | :--- | | **Net loss** | **$(69,752)** | **$(69,319)** | | Depreciation and amortization | $27,481 | $26,095 | | **EBITDA** | **$(33,352)** | **$(33,161)** | | Stock-based compensation | $14,427 | $13,426 | | Contingent consideration | $(9,200) | $(4,400) | | Transaction costs | $2,273 | $1,300 | | **Adjusted EBITDA** | **$(25,783)** | **$(18,845)** | [Reconciliation of Net Loss to Adjusted Net Loss](index=11&type=section&id=Reconciliation%20of%20Net%20Loss%2FDiluted%20Net%20Loss%20per%20Share%20to%20Adjusted%20Net%20Loss%2FAdjusted%20Diluted%20Net%20Loss%20per%20Share) Q4 2023 GAAP net loss of $18.6 million adjusted to $9.3 million non-GAAP net loss, with full year adjusted net loss at $42.0 million Q4 Reconciliation of Net Loss to Adjusted Net Loss (in thousands, except per share) | Line Item | Q4 2023 (Amount) | Q4 2023 (Per Share) | Q4 2022 (Amount) | Q4 2022 (Per Share) | | :--- | :--- | :--- | :--- | :--- | | **Net loss** | **$(18,629)** | **$(0.67)** | **$(13,481)** | **$(0.50)** | | Acquired intangible assets amortization | $4,519 | $0.16 | $4,170 | $0.15 | | Stock-based compensation | $3,785 | $0.14 | $3,169 | $0.12 | | **Adjusted net loss** | **$(9,274)** | **$(0.33)** | **$(7,043)** | **$(0.26)** | Full Year Reconciliation of Net Loss to Adjusted Net Loss (in thousands, except per share) | Line Item | FY 2023 (Amount) | FY 2023 (Per Share) | FY 2022 (Amount) | FY 2022 (Per Share) | | :--- | :--- | :--- | :--- | :--- | | **Net loss** | **$(69,752)** | **$(2.53)** | **$(69,319)** | **$(2.55)** | | Acquired intangible assets amortization | $18,074 | $0.66 | $17,111 | $0.63 | | Stock-based compensation | $14,427 | $0.52 | $13,426 | $0.49 | | **Adjusted net loss** | **$(42,016)** | **$(1.52)** | **$(35,895)** | **$(1.32)** |

NEW HARTFORD, N.Y.--(BUSINESS WIRE)--PAR Technology Corporation (NYSE: PAR) a global restaurant technology company and provider of unified commerce for enterprise restaurants today announced that PAR CEO, Savneet Singh, will participate in two upcoming investor conferences. PAR will participate in fireside chats at the 13th Annual Citi FinTech Conference on Wednesday, February 28th, and at the 8th Annual Evercore ISI Payments & Fintech Innovators Forum on Thursday, February 29th . PAR management will also ...

NEW HARTFORD, N.Y.--(BUSINESS WIRE)--ParTech, Inc. (PAR), a global restaurant technology company and provider of unified commerce solutions for enterprise restaurants, announced Hooters of America, LLC, the franchisor behind the iconic Hooters and Hoots Wings brands, selected PAR Brink POS® and PAR Data Central® to enhance its operational efficiency and order accuracy for an improved table service experience in 367 Hooters restaurants across 36 states and 18 countries. As an existing customer of PAR’s le ...

NEW HARTFORD, N.Y.--(BUSINESS WIRE)--PAR Technology Corporation (NYSE: PAR) today announced that it will report its fourth quarter & year end financial results on Tuesday February 27, 2024. The results are scheduled to be released at 7:30 a.m. ET, followed by an investor presentation and conference call at 9:00 a.m. ET. PAR Technology Chief Executive Officer Savneet Singh, Chief Financial Officer Bryan Menar and Senior Vice President for Investor Relations & Business Development, Christopher Byrnes will pr ...

NEW HARTFORD, N.Y.--(BUSINESS WIRE)--ParTech, Inc. (PAR), a global restaurant technology company and provider of unified commerce solutions for enterprise restaurants, announced the integration of MENU Link with Grubhub, a leading online and mobile food ordering and delivery platform. MENU Link is PAR's marketplace order management system and part of the PAR MENU ecosystem. Building off PAR and Grubhub’s existing partnership, MENU Link automatically syncs menu items, pricing and other order information b ...

NEW HARTFORD, N.Y.--(BUSINESS WIRE)--PAR Technology Corporation (NYSE: PAR) a global restaurant technology company and provider of unified commerce to enterprise restaurants today announced that Savneet Singh, the Company’s CEO, will present to institutional investors at the 26th Annual Needham Growth Conference at the Lotte New York Palace Hotel. Mr. Singh will participate in a fireside chat at 10:15 AM ET on Wednesday, January 17, 2024. A live webcast and replay of the discussion will be available by vis ...

NEW HARTFORD, N.Y.--(BUSINESS WIRE)--ParTech, Inc. (PAR), a global restaurant technology company and provider of unified commerce for enterprise restaurants, today proudly introduces the PAR Wave - an All-In-One touch panel designed to reshape hospitality hardware. The PAR Wave reflects PAR’s commitment to meeting future restaurant industry needs, seamlessly blending functionality, performance, security, and innovative design. It emerges as a solution for businesses seeking a more efficient and aesthetic ...

Active Sites ('000) partech.com ARR ($'000,000) (1) Adjusted Subscription Service Gross Margin is a non-GAAP financial measure. Please see Appendix A for a detailed reconciliation to Subscription Service Gross Margin (GAAP). (2) 2020 gross margin impacted due to one-time COVID waiver and Cost of Goods Sold (COGS). (3) Q3'23 ARR is as of September 30, 2023, and YTD'23 Adjusted Subscription Service Gross Margin is for the nine months ended September 30, 2023; both are excluded from the CAGR calculations. CAGR ...