Q4'22 Q3'22 Adjusted Subscription Service Gross Margin(1) • Large TAM in restaurants with ~1m locations in the US spending 2-3% of total revenue on technology1 ® PAR 27% 30% Y/Y Growth Appendix A Key Performance Indicators ® Industry and Market Data. Where non-GAAP financial measures are included in this presentation, the most directly comparable GAAP financial measures and a detailed reconciliation between GAAP and nonGAAP financial measures is included in the Appendix to this presentation. A little about ...

PAR Technology Corporation (NYSE:PAR) Q1 2023 Earnings Conference Call May 10, 2023 4:30 PM ET Company Participants Christopher Byrnes - Senior Vice President, Business Development Savneet Singh - President and Chief Executive Officer Bryan Menar - Chief Financial Officer Conference Call Participants Samad Samana - Jefferies Will Nance - Goldman Sachs Patrick Mcilwee - William Blair Mayank Tandon - Needham & Company Adam Wyden - ADW Capital Adam Kelsey - Craig-Hallum Anja Soderstrom - Sidoti Operator Good a ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the Quarterly Period Ended March 31, 2023 OR ☐ TRANSITION REPORT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From __________ to __________ Commission File Number: 1-09720 PAR TECHNOLOGY CORPORATION (Exact name of registrant as specified in its charter) Delaware 16-1434688 ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FORM 10-Q (State or other jur ...

PAR Technology Corporation (NYSE:PAR) Q4 2022 Earnings Conference Call March 1, 2023 9:00 AM ET Company Participants Chris Byrnes - SVP-Business Development Savneet Singh - CEO and President Bryan Menar - CFO Conference Call Participants Will Nance - Goldman Sachs Samad Samana - Jefferies Kyle Peterson - Needham and Company Adam Wyden - ADW Capital Stephen Sheldon - William Blair George Sutton - Craig-Hallum Anja Soderstrom - Sidoti Operator Good day, and thank you for standing by. Welcome to the PAR Techno ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From __________ to __________ Commission File Number 1-09720 PAR TECHNOLOGY CORPORATION (Exact name of registrant as specified in its charter) Delaware 16-1434688 (State or other ...

PAR Technology Corporation (NYSE:PAR) Q3 2022 Earnings Conference Call November 9, 2022 9:00 AM ET Company Participants Chris Byrnes – Vice President-Business Development Savneet Singh – President and Chief Executive Officer Bryan Menar – Chief Financial Officer Conference Call Participants Sam Salvas – Needham & Company Stephen Sheldon – William Blair Adam Wyden – ADW Capital Jeremy Sahler – Jefferies George Sutton – Craig-Hallum Anja Soderstrom – Sidoti Operator Good day, and thank you for standing by. We ...

Q3 '22 Earnings Presentation November 9, 2022 NYSE: PAR Forward-Looking Statements. This presentation 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 ...

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) The company presents its unaudited condensed consolidated financial statements and accompanying notes for the period [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (in thousands) | Metric | Sep 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Assets:** | | | | Cash and cash equivalents | $89,504 | $188,419 | | Short-term investments | $40,015 | — | | Total current assets | $233,256 | $283,007 | | Goodwill | $485,121 | $457,306 | | Total assets | $864,741 | $888,149 | | **Liabilities & Equity:** | | | | Total current liabilities | $65,759 | $60,517 | | Long-term debt | $388,680 | $305,845 | | Total liabilities | $481,655 | $383,804 | | Total shareholders' equity | $383,086 | $504,345 | | Total Liabilities and Shareholders' Equity | $864,741 | $888,149 | - Cash and cash equivalents decreased significantly from **$188.4 million** at December 31, 2021, to **$89.5 million** at September 30, 2022[9](index=9&type=chunk) - Long-term debt increased from **$305.8 million** to **$388.7 million**, while total shareholders' equity decreased from **$504.3 million** to **$383.1 million**[9](index=9&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations (in thousands, except per share amounts) | Metric | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Total revenues, net | $92,767 | $77,860 | $258,145 | $201,277 | | Gross margin | $21,408 | $18,214 | $63,142 | $43,517 | | Operating loss | $(18,443) | $(14,109) | $(47,351) | $(37,105) | | Net loss | $(21,340) | $(31,933) | $(55,838) | $(50,160) | | Net loss per share (basic and diluted) | $(0.79) | $(1.23) | $(2.06) | $(2.05) | | Weighted average shares outstanding | 27,110 | 25,998 | 27,150 | 24,485 | - Total revenues increased by **19.1%** for the three months and **28.3%** for the nine months ended September 30, 2022, compared to the respective prior periods[11](index=11&type=chunk) - Net loss decreased from **$(31.9) million** to **$(21.3) million** for the three months ended September 30, 2022, but increased from **$(50.2) million** to **$(55.8) million** for the nine-month period[11](index=11&type=chunk) [Condensed Consolidated Statements of Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Condensed Consolidated Statements of Comprehensive Loss (in thousands) | Metric | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Net loss | $(21,340) | $(31,933) | $(55,838) | $(50,160) | | Foreign currency translation adjustments | $(851) | $(500) | $(56) | $(109) | | Comprehensive loss | $(22,191) | $(32,042) | $(56,338) | $(50,216) | - Comprehensive loss for the three months ended September 30, 2022, was **$(22.2) million**, compared to **$(32.0) million** in the prior year, primarily due to the net loss[13](index=13&type=chunk) - For the nine months ended September 30, 2022, comprehensive loss was **$(56.3) million**, an increase from **$(50.2) million** in the prior year[13](index=13&type=chunk) [Condensed Consolidated Statements of Changes in Shareholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Condensed Consolidated Statements of Changes in Shareholders' Equity (in thousands) | Metric | Dec 31, 2021 | Jan 1, 2022 (Adjusted) | Sep 30, 2022 | | :--- | :--- | :--- | :--- | | Total Shareholders' Equity | $504,345 | $424,309 | $383,086 | | Accumulated Deficit | $(122,505) | $(135,885) | $(191,723) | | Additional Paid in Capital | $640,937 | $574,281 | $592,100 | | Common Stock Shares | 28,095 | 28,095 | 28,529 | - Total shareholders' equity decreased from **$504.3 million** at December 31, 2021, to **$383.1 million** at September 30, 2022, partly due to the impact of ASU 2020-06 implementation and accumulated net losses[15](index=15&type=chunk) - The Company recorded a cumulative effect upon adoption of ASU 2020-06 on January 1, 2022, which included an **$80.0 million reduction** to total shareholders' equity[15](index=15&type=chunk)[38](index=38&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (in thousands) | Metric | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | $(33,579) | $(43,619) | | Net cash used in investing activities | $(64,343) | $(381,052) | | Net cash (used in) provided by financing activities | $(1,968) | $444,280 | | Net (decrease) increase in cash and cash equivalents | $(98,915) | $19,607 | | Cash and equivalents at end of period | $89,504 | $200,293 | - Cash used in operating activities decreased from **$43.6 million** in 2021 to **$33.6 million** in 2022, primarily due to an increase in net loss and working capital requirements[20](index=20&type=chunk)[191](index=191&type=chunk) - Investing activities used **$64.3 million** in 2022, significantly less than **$381.1 million** in 2021, mainly due to lower cash paid for acquisitions (**$18.8 million** in 2022 vs **$374.7 million** in 2021)[20](index=20&type=chunk)[192](index=192&type=chunk) - Financing activities shifted from providing **$444.3 million** in 2021 to using **$2.0 million** in 2022, reflecting reduced debt and equity issuances[20](index=20&type=chunk)[193](index=193&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [NOTE 1: BASIS OF PRESENTATION](index=12&type=section&id=NOTE%201:%20BASIS%20OF%20PRESENTATION) - The financial statements are prepared in accordance with GAAP for interim reporting and include all necessary adjustments for fair presentation[23](index=23&type=chunk) - The Company operates in two segments: **Restaurant/Retail** (SaaS solutions like Brink POS, Data Central, PAR Pay, Punchh, MENU) and **Government** (technical expertise and advanced systems for DoD and federal agencies)[25](index=25&type=chunk) - The Company adopted ASU No 2020-06 on January 1, 2022, under the modified retrospective method, resulting in an **$81.3 million increase** to convertible notes and a **$66.6 million reduction** to additional paid-in capital, eliminating the separation of convertible debt between debt and equity[38](index=38&type=chunk) [NOTE 2: REVENUE RECOGNITION](index=14&type=section&id=NOTE%202:%20REVENUE%20RECOGNITION) - Revenue is derived from SaaS, hardware/software sales, activation, support, installations, maintenance, and professional services, recognized either at a point in time or over time[41](index=41&type=chunk)[42](index=42&type=chunk) - Government segment revenue is predominantly service-related and recognized over time, often using costs incurred to measure progress[44](index=44&type=chunk) Disaggregated Revenue (in thousands) - 3 Months Ended Sep 30 | Segment/Type | 2022 | 2021 | | :--- | :--- | :--- | | Restaurant/Retail (point in time) | $35,619 | $35,109 | | Restaurant/Retail (over time) | $32,734 | $24,712 | | Government (point in time) | $541 | $55 | | Government (over time) | $23,873 | $17,984 | | **Total** | **$92,767** | **$77,860** | Disaggregated Revenue (in thousands) - 9 Months Ended Sep 30 | Segment/Type | 2022 | 2021 | | :--- | :--- | :--- | | Restaurant/Retail (point in time) | $97,937 | $85,709 | | Restaurant/Retail (over time) | $93,433 | $61,820 | | Government (point in time) | $753 | $220 | | Government (over time) | $66,022 | $53,528 | | **Total** | **$258,145** | **$201,277** | [NOTE 3: ACQUISITIONS](index=19&type=section&id=NOTE%203:%20ACQUISITIONS) - During Q3 2022, ParTech acquired MENU Technologies AG for approximately **$18.4 million cash** and **$6.3 million in common stock**, with a contingent earn-out liability of **$14.2 million**[57](index=57&type=chunk)[59](index=59&type=chunk) - The MENU acquisition resulted in **$28.5 million in goodwill** and **$10.7 million in developed technology**[59](index=59&type=chunk) - The Punchh Acquisition (April 2021) was finalized in Q1 2022, resulting in **$415.1 million in goodwill** and **$84.6 million in developed technology**[65](index=65&type=chunk)[66](index=66&type=chunk) [NOTE 4: ACCOUNTS RECEIVABLE, NET](index=22&type=section&id=NOTE%204:%20ACCOUNTS%20RECEIVABLE,%20NET) Accounts Receivable - Net (in thousands) | Segment | Sep 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Government segment | $14,747 | $11,667 | | Restaurant/Retail segment | $40,098 | $38,311 | | **Total Accounts receivable - net** | **$54,845** | **$49,978** | - Accounts receivable increased by **$4.9 million** from December 31, 2021, to September 30, 2022, with both segments contributing to the increase[68](index=68&type=chunk) - Current expected credit loss for the Restaurant/Retail segment increased from **$1.3 million** at December 31, 2021, to **$1.8 million** at September 30, 2022[68](index=68&type=chunk)[69](index=69&type=chunk) [NOTE 5: INVENTORIES](index=22&type=section&id=NOTE%205:%20INVENTORIES) Inventories (in thousands) | Component | Sep 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Finished goods | $24,729 | $17,528 | | Work in process | $160 | $688 | | Component parts | $13,857 | $14,880 | | Service parts | $961 | $1,982 | | **Total Inventories** | **$39,707** | **$35,078** | - Total inventories increased by **$4.6 million** from December 31, 2021, to September 30, 2022, primarily driven by an increase in finished goods[70](index=70&type=chunk) - Excess and obsolescence reserves against inventories increased from **$10.8 million** to **$12.6 million** during the same period[71](index=71&type=chunk) [NOTE 6: IDENTIFIABLE INTANGIBLE ASSETS AND GOODWILL](index=23&type=section&id=NOTE%206:%20IDENTIFIABLE%20INTANGIBLE%20ASSETS%20AND%20GOODWILL) - Identifiable intangible assets include acquired developed technology, internally developed software costs, customer relationships, and trade names[79](index=79&type=chunk) Identifiable Intangible Assets (in thousands) | Asset Type | Sep 30, 2022 | Dec 31, 2021 | Estimated Useful Life | | :--- | :--- | :--- | :--- | | Acquired developed technology | $119,800 | $109,100 | 3 - 7 years | | Internally developed software costs | $30,033 | $25,735 | 3 years | | Customer relationships | $12,360 | $12,360 | 7 years | | Trademarks, trade names (non-amortizable) | $6,200 | $6,200 | Indefinite | | **Total Identifiable Intangible Assets (net)** | **$116,242** | **$118,763** | | - Goodwill increased from **$457.3 million** at December 31, 2021, to **$485.1 million** at September 30, 2022, primarily due to the MENU Acquisition (**$28.5 million**) and Q1 2022 Acquisition (**$1.2 million**)[81](index=81&type=chunk) [NOTE 7: DEBT](index=25&type=section&id=NOTE%207:%20DEBT) Long-Term Debt (in thousands) | Notes | Sep 30, 2022 (Net Carrying Amount) | Dec 31, 2021 (Net Carrying Amount) | | :--- | :--- | :--- | | 2024 Notes | $13,447 | $11,846 | | 2026 Notes | $117,322 | $98,147 | | 2027 Notes | $257,911 | $195,852 | | **Total Long-Term Debt** | **$388,680** | **$305,845** | - The Company's long-term debt increased to **$388.7 million** at September 30, 2022, from **$305.8 million** at December 31, 2021, primarily due to the adoption of ASU 2020-06 which reclassified the equity component of convertible notes to debt[82](index=82&type=chunk)[38](index=38&type=chunk) - Interest expense, net, decreased significantly for both the three and nine months ended September 30, 2022, due to the extinguishment of the Owl Rock Term Loan in September 2021 and reduced accretion from ASU 2020-06 adoption[94](index=94&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk) [NOTE 8: COMMON STOCK](index=28&type=section&id=NOTE%208:%20COMMON%20STOCK) - The Company issued **162,917 shares** of common stock as part of the purchase consideration for the MENU Acquisition in July 2022, valued at **$6.3 million**[99](index=99&type=chunk)[206](index=206&type=chunk) - In September 2021, the Company completed a public offering, issuing **982,143 shares** for net proceeds of **$52.5 million**[97](index=97&type=chunk) - In April 2021, the Company issued **2,352,942 shares** through a private placement to Act III and TRP, raising approximately **$160.0 million** to partially fund the Punchh Acquisition[98](index=98&type=chunk) [NOTE 9: STOCK-BASED COMPENSATION](index=28&type=section&id=NOTE%209:%20STOCK-BASED%20COMPENSATION) Stock-Based Compensation Expense (in thousands) | Line Item | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Cost of sales - contracts | $32 | $72 | $116 | $256 | | Selling, general and administrative | $3,458 | $3,713 | $10,141 | $9,100 | | **Total stock-based compensation expense** | **$3,490** | **$3,785** | **$10,257** | **$9,356** | - Total stock-based compensation expense for the nine months ended September 30, 2022, was **$10.3 million**, an increase from **$9.4 million** in the prior year[101](index=101&type=chunk) - As of September 30, 2022, the aggregate unrecognized compensation expense related to unvested equity awards was **$21.5 million**, expected to be recognized through 2025[101](index=101&type=chunk) [NOTE 10: NET LOSS PER SHARE](index=29&type=section&id=NOTE%2010:%20NET%20LOSS%20PER%20SHARE) - Basic and diluted net loss per share for the nine months ended September 30, 2022, was **$(2.06)**, compared to **$(2.05)** in the prior year[11](index=11&type=chunk) - Potential shares from convertible notes (2024, 2026, 2027) and a warrant were excluded from diluted net loss per share calculations due to their anti-dilutive impact[105](index=105&type=chunk)[106](index=106&type=chunk) - As of September 30, 2022, there were **1,045,000 anti-dilutive stock options** and **576,000 anti-dilutive restricted stock units** outstanding[104](index=104&type=chunk) [NOTE 11: COMMITMENTS AND CONTINGENCIES](index=29&type=section&id=NOTE%2011:%20COMMITMENTS%20AND%20CONTINGENCIES) - The Company is involved in legal proceedings in the ordinary course of business, but management believes they are not material or likely to have a material adverse effect[107](index=107&type=chunk)[204](index=204&type=chunk) - A **$790 thousand** class-wide settlement for a Biometric Information Privacy Act complaint was granted final approval in July 2022, which the Company had accrued and fully funded by June 30, 2022[108](index=108&type=chunk) [NOTE 12: SEGMENT AND RELATED INFORMATION](index=30&type=section&id=NOTE%2012:%20SEGMENT%20AND%20RELATED%20INFORMATION) - The Company operates in two segments: **Restaurant/Retail** (software, hardware, services for restaurants) and **Government** (technical expertise and solutions for DoD and federal agencies)[110](index=110&type=chunk) Segment Revenues (in thousands) | Segment | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Restaurant/Retail | $68,354 | $59,821 | $191,371 | $147,529 | | Government | $24,413 | $18,039 | $66,774 | $53,748 | | **Total** | **$92,767** | **$77,860** | **$258,145** | **$201,277** | Segment Operating (Loss) Income (in thousands) | Segment | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Restaurant/Retail | $(8,379) | $(15,642) | $(19,303) | $(40,894) | | Government | $2,529 | $1,960 | $6,390 | $4,555 | | Other | $(12,593) | $(427) | $(34,438) | $(766) | | **Total** | **$(18,443)** | **$(14,109)** | **$(47,351)** | **$(37,105)** | - Key customers include Yum! Brands, Inc (**10-12% of Restaurant/Retail revenue**) and McDonald's Corporation (**11-15% of Restaurant/Retail revenue**), and the U.S Department of Defense (**23-27% of Government revenue**)[116](index=116&type=chunk) [NOTE 13: FAIR VALUE OF FINANCIAL INSTRUMENTS](index=32&type=section&id=NOTE%2013:%20FAIR%20VALUE%20OF%20FINANCIAL%20INSTRUMENTS) - The fair values of cash, short-term investments, trade receivables, and payables approximate their carrying amounts due to their short-term nature[117](index=117&type=chunk) - The estimated fair value of the 2024, 2026, and 2027 Notes at September 30, 2022, was **$18.3 million**, **$118.2 million**, and **$195.7 million**, respectively, classified within Level 2 of the fair value hierarchy[117](index=117&type=chunk) - The MENU earn-out contingent liability's fair value was determined to be **$14.2 million** at September 30, 2022, using Monte Carlo simulation modeling (Level 3 fair value measurement)[121](index=121&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial conditions, operational results, segment performance, and key non-GAAP metrics [OVERVIEW](index=33&type=section&id=OVERVIEW) - PAR Technology Corporation operates in two distinct segments: **Restaurant/Retail** and **Government**[123](index=123&type=chunk) - The Restaurant/Retail segment offers unified commerce solutions to over **500 customers** and **60,000 active restaurant locations**[124](index=124&type=chunk) - The Government segment provides advanced systems and software solutions for the DoD and federal agencies, including ISR Solutions, Mission Systems, and Commercial Software[125](index=125&type=chunk) [RESULTS OF OPERATIONS](index=34&type=section&id=RESULTS%20OF%20OPERATIONS) [Consolidated Results](index=34&type=section&id=Consolidated%20Results) Consolidated Results (in thousands, except percentages) | Metric | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | YoY Change % | | :--- | :--- | :--- | :--- | | Total revenues, net | $92,767 | $77,860 | 19.1% | | Product revenue | $31,343 | $30,291 | 3.5% | | Service revenue | $37,010 | $29,530 | 25.3% | | Contract revenue | $24,414 | $18,039 | 35.3% | | Total gross margin | $21,408 | $18,214 | 17.5% | | Operating loss | $(18,443) | $(14,109) | 30.7% | | Net loss | $(21,340) | $(31,933) | (33.2)% | Consolidated Results (in thousands, except percentages) | Metric | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | YoY Change % | | :--- | :--- | :--- | :--- | | Total revenues, net | $258,145 | $201,277 | 28.3% | | Product revenue | $84,820 | $72,786 | 16.5% | | Service revenue | $106,550 | $74,743 | 42.6% | | Contract revenue | $66,775 | $53,748 | 24.2% | | Total gross margin | $63,142 | $43,517 | 45.1% | | Operating loss | $(47,351) | $(37,105) | 27.6% | | Net loss | $(55,838) | $(50,160) | 11.3% | - Total revenues increased by **19.1% for Q3 2022** and **28.3% for the nine months** ended September 30, 2022, driven by strong growth across all revenue categories[127](index=127&type=chunk)[129](index=129&type=chunk) - Net loss decreased by **33.2% for Q3 2022** but increased by **11.3% for the nine months** ended September 30, 2022, reflecting varying impacts of operating expenses and other income/expenses[127](index=127&type=chunk)[129](index=129&type=chunk) [Revenues, Net](index=38&type=section&id=Revenues,%20Net) Revenues, Net (in thousands) | Revenue Type | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | YoY Change % | | :--- | :--- | :--- | :--- | | Product | $31,343 | $30,291 | 3.5% | | Service | $37,010 | $29,530 | 25.3% | | Contract | $24,414 | $18,039 | 35.3% | | **Total revenues, net** | **$92,767** | **$77,860** | **19.1%** | Revenues, Net (in thousands) | Revenue Type | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | YoY Change % | | :--- | :--- | :--- | :--- | | Product | $84,820 | $72,786 | 16.5% | | Service | $106,550 | $74,743 | 42.6% | | Contract | $66,775 | $53,748 | 24.2% | | **Total revenues, net** | **$258,145** | **$201,277** | **28.3%** | - Service revenues saw the strongest growth, increasing by **25.3% for Q3 2022** and **42.6% for the nine-month period**, primarily driven by Punchh and Brink POS SaaS revenues[134](index=134&type=chunk)[139](index=139&type=chunk) - Contract revenues increased by **35.3% for Q3 2022** and **24.2% for the nine-month period**, largely due to growth in ISR Solutions and Mission Systems product lines[135](index=135&type=chunk)[140](index=140&type=chunk) [Gross Margin](index=39&type=section&id=Gross%20Margin) Gross Margin (in thousands, except percentages) | Margin Type | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | 2022 % | 2021 % | YoY Change % | | :--- | :--- | :--- | :--- | :--- | :--- | | Product | $5,885 | $7,505 | 18.8% | 24.8% | (21.6)% | | Service | $12,989 | $8,738 | 35.1% | 29.6% | 48.6% | | Contract | $2,534 | $1,971 | 10.4% | 10.9% | 28.6% | | **Total gross margin** | **$21,408** | **$18,214** | **23.1%** | **23.4%** | **17.5%** | Gross Margin (in thousands, except percentages) | Margin Type | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | 2022 % | 2021 % | YoY Change % | | :--- | :--- | :--- | :--- | :--- | :--- | | Product | $15,154 | $16,628 | 17.9% | 22.8% | (8.9)% | | Service | $41,569 | $22,316 | 39.0% | 29.9% | 86.3% | | Contract | $6,419 | $4,573 | 9.6% | 8.5% | 40.4% | | **Total gross margin** | **$63,142** | **$43,517** | **24.5%** | **21.6%** | **45.1%** | - Service margin improved significantly to **35.1% for Q3 2022** and **39.0% for the nine-month period**, driven by a higher mix of SaaS software and cost improvement initiatives[143](index=143&type=chunk)[148](index=148&type=chunk) - Product margin decreased to **18.8% for Q3 2022** and **17.9% for the nine-month period**, primarily due to product mix and higher excess and obsolescent inventory charges[142](index=142&type=chunk)[147](index=147&type=chunk) [Selling, General Administrative Expenses](index=40&type=section&id=Selling,%20General%20Administrative%20Expenses) Selling, General and Administrative Expenses (in thousands) | Period | 2022 | 2021 | YoY Change % | | :--- | :--- | :--- | :--- | | 3 Months Ended Sep 30 | $26,543 | $21,662 | 22.5% | | 9 Months Ended Sep 30 | $75,309 | $59,145 | 27.3% | - SG&A expenses increased by **22.5% for Q3 2022** and **27.3% for the nine-month period**, driven by higher sales and marketing, internal technology infrastructure, and corporate management expenses, including MENU-related costs[150](index=150&type=chunk)[151](index=151&type=chunk)[152](index=152&type=chunk) [Research and Development Expenses](index=42&type=section&id=Research%20and%20Development%20Expenses) Research and Development Expenses (in thousands) | Period | 2022 | 2021 | YoY Change % | | :--- | :--- | :--- | :--- | | 3 Months Ended Sep 30 | $12,843 | $10,122 | 26.9% | | 9 Months Ended Sep 30 | $33,785 | $24,574 | 37.5% | - R&D expenses increased by **26.9% for Q3 2022** and **37.5% for the nine-month period**, reflecting additional investments in software product development, including Punchh-related and MENU-related R&D[154](index=154&type=chunk)[156](index=156&type=chunk) [Other Operating Expenses: Amortization of Intangible Assets / Insurance Proceeds](index=42&type=section&id=Other%20Operating%20Expenses:%20Amortization%20of%20Intangible%20Assets%20/%20Insurance%20Proceeds) Other Operating Expenses (in thousands) | Metric | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Amortization of identifiable intangible assets | $465 | $539 | $1,399 | $1,303 | | Gain on insurance proceeds | — | — | — | $(4,400) | - Amortization of identifiable intangible assets remained relatively stable, at **$0.5 million for Q3 2022** and **$1.4 million for the nine-month period**[157](index=157&type=chunk)[159](index=159&type=chunk) - A **$4.4 million gain** on insurance proceeds was recognized in the nine months ended September 30, 2021, with no comparable gain in 2022[160](index=160&type=chunk) [Other Expense, Net](index=43&type=section&id=Other%20Expense,%20Net) Other Expense, Net (in thousands) | Period | 2022 | 2021 | YoY Change % | | :--- | :--- | :--- | :--- | | 3 Months Ended Sep 30 | $(179) | $(539) | (66.8)% | | 9 Months Ended Sep 30 | $(804) | $(931) | (13.6)% | - Other expense, net, decreased for both the three and nine months ended September 30, 2022, compared to the prior year[161](index=161&type=chunk)[162](index=162&type=chunk) [Interest Expense, Net](index=43&type=section&id=Interest%20Expense,%20Net) Interest Expense, Net (in thousands) | Period | 2022 | 2021 | YoY Change % | | :--- | :--- | :--- | :--- | | 3 Months Ended Sep 30 | $(2,140) | $(5,406) | (60.4)% | | 9 Months Ended Sep 30 | $(7,054) | $(12,503) | (43.6)% | - Interest expense, net, decreased significantly by **60.4% for Q3 2022** and **43.6% for the nine-month period**[163](index=163&type=chunk)[164](index=164&type=chunk) - The decrease was driven by the extinguishment of the Owl Rock Term Loan in September 2021 and a reduction of accretion resulting from the January 1, 2022, adoption of ASU 2020-06[163](index=163&type=chunk)[164](index=164&type=chunk) [Taxes](index=44&type=section&id=Taxes) (Provision for) Benefit from Income Taxes (in thousands) | Period | 2022 | 2021 | YoY Change % | | :--- | :--- | :--- | :--- | | 3 Months Ended Sep 30 | $(578) | $37 | (1662.2)% | | 9 Months Ended Sep 30 | $(629) | $12,295 | (105.1)% | - The Company recorded a net tax provision of **$0.6 million** for both the three and nine months ended September 30, 2022, primarily due to foreign taxes[165](index=165&type=chunk)[166](index=166&type=chunk) - In contrast, the nine months ended September 30, 2021, saw a net tax benefit of **$12.3 million**, resulting from a partial release of the deferred tax asset valuation allowance related to the Punchh Acquisition[166](index=166&type=chunk) [Key Performance Indicators and Non-GAAP Financial Measures](index=44&type=section&id=Key%20Performance%20Indicators%20and%20Non-GAAP%20Financial%20Measures) [Annual Recurring Revenue](index=45&type=section&id=Annual%20Recurring%20Revenue) Annual Recurring Revenue (ARR) (in thousands) | Product Grouping | As of Sep 30, 2022 | As of Sep 30, 2021 | YoY Increase % | | :--- | :--- | :--- | :--- | | Guest Engagement | $57,506 | $43,950 | 30.8% | | Operator Solutions | $38,879 | $29,479 | 31.9% | | Back Office | $10,238 | $9,114 | 12.3% | | **Total** | **$106,623** | **$82,543** | **29.2%** | - Total ARR increased by **29.2% to $106.6 million** as of September 30, 2022, compared to the prior year[169](index=169&type=chunk) - Guest Engagement and Operator Solutions segments showed strong ARR growth of **30.8%** and **31.9%**, respectively[169](index=169&type=chunk) [Active Sites](index=45&type=section&id=Active%20Sites) Active Sites (in thousands) | Product Grouping | As of Sep 30, 2022 | As of Sep 30, 2021 | YoY Increase % | | :--- | :--- | :--- | :--- | | Guest Engagement | 67.1 | 52.9 | 26.8% | | Operator Solutions | 18.6 | 14.9 | 24.5% | | Back Office | 6.7 | 6.2 | 7.9% | - Guest Engagement active sites increased by **26.8% to 67.1 thousand**, and Operator Solutions active sites increased by **24.5% to 18.6 thousand** as of September 30, 2022[170](index=170&type=chunk) [Segment Revenue by Product Line as Percentage of Total Revenue](index=45&type=section&id=Segment%20Revenue%20by%20Product%20Line%20as%20Percentage%20of%20Total%20Revenue) Segment Revenue by Product Line (in thousands) - 3 Months Ended Sep 30 | Product Line | 2022 | 2021 | YoY Change % | | :--- | :--- | :--- | :--- | | Hardware | $30,796 | $29,669 | 3.8% | | Software | $22,438 | $17,168 | 30.7% | | Services (Restaurant/Retail) | $15,119 | $12,984 | 16.4% | | ISR (Government) | $14,710 | $9,619 | 52.9% | Segment Revenue by Product Line (in thousands) - 9 Months Ended Sep 30 | Product Line | 2022 | 2021 | YoY Change % | | :--- | :--- | :--- | :--- | | Hardware | $83,219 | $70,858 | 17.4% | | Software | $62,414 | $40,145 | 55.5% | | Services (Restaurant/Retail) | $45,737 | $36,526 | 25.2% | | ISR (Government) | $38,746 | $28,450 | 36.2% | - Software revenue in the Restaurant/Retail segment grew significantly by **30.7% for Q3 2022** and **55.5% for the nine-month period**[171](index=171&type=chunk)[172](index=172&type=chunk) - ISR solutions in the Government segment showed strong growth, increasing by **52.9% for Q3 2022** and **36.2% for the nine-month period**[171](index=171&type=chunk)[172](index=172&type=chunk) [Recurring and Non-Recurring Revenue as Percentage of Total Revenue](index=46&type=section&id=Recurring%20and%20Non-Recurring%20Revenue%20as%20Percentage%20of%20Total%20Revenue) Recurring and Non-Recurring Revenue (in thousands) - 3 Months Ended Sep 30 | Revenue Type | 2022 | 2021 | YoY Change % | | :--- | :--- | :--- | :--- | | Recurring revenue | $33,804 | $24,974 | 35.4% | | Non-recurring revenue | $34,549 | $34,847 | (0.9)% | | **Total Restaurant/Retail** | **$68,353** | **$59,821** | **14.3%** | | **Total Government** | **$24,414** | **$18,039** | **35.3%** | | **Total revenue** | **$92,767** | **$77,860** | **19.1%** | Recurring and Non-Recurring Revenue (in thousands) - 9 Months Ended Sep 30 | Revenue Type | 2022 | 2021 | YoY Change % | | :--- | :--- | :--- | :--- | | Recurring revenue | $93,974 | $62,939 | 49.3% | | Non-recurring revenue | $97,396 | $84,590 | 15.1% | | **Total Restaurant/Retail** | **$191,370** | **$147,529** | **29.7%** | | **Total Government** | **$66,775** | **$53,748** | **24.2%** | | **Total revenue** | **$258,145** | **$201,277** | **28.3%** | - Recurring revenue in the Restaurant/Retail segment increased by **35.4% for Q3 2022** and **49.3% for the nine-month period**, indicating a shift towards more predictable revenue streams[173](index=173&type=chunk) - Recurring revenue includes SaaS, hardware/software maintenance, and payment processing revenue[174](index=174&type=chunk) [About Non-GAAP Financial Measures](index=48&type=section&id=About%20Non-GAAP%20Financial%20Measures) - The Company uses non-GAAP measures like EBITDA, adjusted EBITDA, adjusted net loss, and adjusted diluted net loss per share to provide a more meaningful comparison of core business operating results[175](index=175&type=chunk)[176](index=176&type=chunk) Reconciliation of Adjusted EBITDA (in thousands) | Metric | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Net loss | $(21,340) | $(31,933) | $(55,838) | $(50,160) | | EBITDA | $(12,181) | $(20,365) | $(28,562) | $(34,883) | | Adjusted EBITDA | $(7,963) | $(3,987) | $(16,001) | $(12,904) | Reconciliation of Adjusted Net Loss/Diluted Loss Per Share (in thousands, except per share amounts) | Metric | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Net loss/diluted loss per share | $(21,340) / $(0.79) | $(31,933) / $(1.23) | $(55,838) / $(2.06) | $(50,160) / $(2.05) | | Adjusted net loss/adjusted diluted loss per share | $(11,906) / $(0.44) | $(9,320) / $(0.36) | $(28,852) / $(1.06) | $(26,038) / $(1.06) | [LIQUIDITY AND CAPITAL RESOURCES](index=51&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) - Primary liquidity sources are cash and cash equivalents (**$85.5 million**, excluding $4.0 million held for customers) and short-term investments (**$40.0 million**) as of September 30, 2022[190](index=190&type=chunk) - Cash used in operating activities was **$33.6 million** for the nine months ended September 30, 2022, driven by net loss and increased working capital requirements (inventory and accounts receivable)[191](index=191&type=chunk) - Cash used in investing activities was **$64.3 million**, including **$18.8 million** for acquisitions and **$40.0 million** for short-term held-to-maturity securities[192](index=192&type=chunk) - The Company expects available cash and cash equivalents to be sufficient for operating needs for at least the next 12 months[194](index=194&type=chunk) [CRITICAL ACCOUNTING POLICIES AND ESTIMATES](index=52&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) - Critical accounting policies and estimates include revenue recognition, stock-based compensation, business combinations, carrying amounts of assets, convertible notes, credit losses, and inventory valuation[196](index=196&type=chunk) - These estimates are subject to uncertainties related to market conditions, risks, trends, and the ongoing COVID-19 pandemic[196](index=196&type=chunk) - No material changes to critical accounting policies and estimates were reported from the 2021 Annual Report[196](index=196&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=52&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company discusses its exposure to market risks, specifically foreign currency exchange and interest rate risk - The Company is exposed to foreign currency exchange risk from non-dollar denominated sales and operating expenses, but the impact was not material as of September 30, 2022[197](index=197&type=chunk) - Interest rate risk is primarily related to fixed-rate convertible senior notes, meaning there is no financial statement risk from interest rate changes, though fair value can fluctuate[198](index=198&type=chunk)[199](index=199&type=chunk) [Item 4. Controls and Procedures](index=52&type=section&id=Item%204.%20Controls%20and%20Procedures) The company addresses the effectiveness of its disclosure controls, noting ongoing material weaknesses and remediation efforts - Management concluded that disclosure controls and procedures were **not effective** as of September 30, 2022, due to continuing material weaknesses in internal control over financial reporting[200](index=200&type=chunk) - Remediation efforts to address identified material weaknesses are ongoing, involving the implementation and documentation of necessary policies, procedures, and internal controls[201](index=201&type=chunk) - No additional material changes in internal control over financial reporting occurred during the quarter ended September 30, 2022, beyond those inherited from the Punchh Acquisition[202](index=202&type=chunk) [PART II. OTHER INFORMATION](index=53&type=section&id=PART%20II%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=53&type=section&id=Item%201.%20Legal%20Proceedings) The company confirms that no pending litigation is expected to have a material adverse effect on its financial condition - The Company does not believe that any pending litigation would have a material adverse effect on its financial condition or results of operations[204](index=204&type=chunk) [Item 1A. Risk Factors](index=53&type=section&id=Item%201A.%20Risk%20Factors) Risk factors previously disclosed in the 2021 Annual Report and Q2 2022 Form 10-Q remain current - The risk factors described in the 2021 Annual Report and Q2 2022 Form 10-Q remain current in all material respects and could materially and adversely affect the Company's business[205](index=205&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use Of Proceeds](index=53&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20Of%20Proceeds) The company details the issuance of common stock in unregistered sales for the MENU Acquisition and shares withheld for taxes - On July 25, 2022, the Company issued **162,917 shares** of common stock, valued at **$6.3 million**, as part of the purchase consideration for the MENU Acquisition[206](index=206&type=chunk) - For the three months ended September 30, 2022, **8,707 shares** were withheld from employees to satisfy tax withholding obligations arising from the vesting of restricted stock[207](index=207&type=chunk)[209](index=209&type=chunk) [Item 6. Exhibits](index=54&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Quarterly Report, including organizational documents and officer certifications - The exhibits include the Restated Certificate of Incorporation, Amended and Restated Bylaws, certifications from the Principal Executive Officer and Principal Financial Officer, and various Inline XBRL documents[210](index=210&type=chunk) [Signatures](index=55&type=section&id=Signatures) This section contains the official signatures certifying the filing of the report on behalf of the company - The report was duly signed on November 9, 2022, by Bryan A Menar, Chief Financial and Accounting Officer[212](index=212&type=chunk)

Par Technology Corporation (NYSE:PAR) Q2 2022 Earnings Conference Call August 9, 2022 9:00 AM ET Company Participants Chris Byrnes - VP, Business Development Savneet Singh - President and CEO Bryan Menar - CFO Conference Call Participants Mayank Tandon - Needham & Company Stephen Sheldon - William Blair Samad Samana - Jefferies Anja Soderstrom - Sidoti & Company Adam Wyden - ADW Capital Operator Good day and thank you for standing by. Welcome to the 2022 Second Quarter Financial Results Conference Call. At ...

Q2 '22 Earnings Presentation August 9, 2022 NYSE: PAR Forward-Looking Statements. This presentation 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 pr ...