PAR Technology Corporation (NYSE:PAR) Q4 2020 Earnings Conference Call March 15, 2021 4:30 PM ET Company Participants Chris Byrnes - Vice President, Business Development Savneet Singh - Chief Executive Officer and President Bryan Menar - Chief Financial Officer Conference Call Participants Samad Samana - Jefferies Stephen Sheldon - William Blair George Sutton - Craig-Hallum Adam Wyden - ADW Capital Operator Ladies and gentlemen thank you for standing by and welcome to the PAR Technology 2020 Fourth Quarter ...

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, 2020 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 ...

Financial Data and Key Metrics Changes - The company reported revenues of $54.8 million for Q3 2020, a 20.7% increase from $45.4 million in Q3 2019 [30] - Net loss for the quarter was $3.7 million, or a $0.20 loss per share, compared to a net loss of $5.9 million, or a $0.36 loss per share, in Q3 2019 [30] - The company achieved a 21% revenue growth compared to the same quarter last year [8] Business Line Data and Key Metrics Changes - Restaurant retail segment revenues increased by 25% to $37.4 million from $29.8 million in Q3 2019, driven by acquisitions and growth in the Brink business line [32] - Government segment revenues rose by 13% to $17.5 million from $15.5 million in Q3 2019, with ISR revenues increasing by 27% [20][33] - Product revenues for the quarter were $20.5 million, a 29% increase compared to Q3 2019, driven by drive-through and hardware sales related to Brink installs [34] Market Data and Key Metrics Changes - The company reported 1,181 new store bookings in Q3, a 45% improvement from the previous quarter and a 23% increase from Q3 last year [11] - Annual Recurring Revenue (ARR) for Brink reached $22.8 million, a 27% increase from the same quarter last year [12] - The backlog at the end of Q3 was 1,977 stores yet to be installed, with 761 new Brink stores installed in Q3, an 18% increase from Q3 2019 [13] Company Strategy and Development Direction - The company plans to be active in M&A to build out its software platform, aiming to create more value for customers and enhance platform stickiness [10] - A new product, PAR Payment Services, was introduced, expected to significantly contribute to ARR growth in 2021 [25] - The company is reorganizing its sales teams to focus on specific end markets, enhancing customer engagement and marketing effectiveness [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future, citing strong bookings and a robust sales pipeline driven by COVID-19 [8][26] - The company believes that the pandemic has accelerated the need for technology in restaurants, positioning it well for future growth [27] - Management noted that the market position has never been stronger, with expectations for continued sales pipeline growth through 2021 [26] Other Important Information - The company completed a $131 million equity offering, providing liquidity and flexibility for growth initiatives [9] - The company reported a low churn rate of 4.5% in Q3, indicating strong customer retention [14] Q&A Session Summary Question: What is driving the strong bookings performance for Brink? - Management attributed the growth to improved product offerings and increased agility in responding to customer needs, alongside the impact of COVID-19 [46][48] Question: How is the cross-selling working with Restaurant Magic? - Management reported strong synergy in cross-selling Restaurant Magic, with over 50% of the pipeline attributed to Brink sales [51][52] Question: What is the economic opportunity for PAR Payment Services? - Management indicated that adopting payment services could double the average revenue per user (ARPU) for clients, with potential adoption rates varying between 20% to 50% [56][58] Question: How are incumbents reacting to market changes? - Management observed that incumbents are struggling to adapt their legacy products to modern needs, often resorting to price cuts without significant product investment [64][66] Question: What are the prospects for future acquisitions? - Management expressed confidence in pursuing acquisitions that enhance product offerings and align with the company's growth strategy, supported by recent capital raises [75][80]

& PAR PAR 1 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, business strategies and prospects. Forward-looking statements are generally identified ...