PAR(PAR) - 2024 Q4 - Annual Report

Financial Performance - Total revenues for the year ended December 31, 2024, reached $349,982 thousand, a 26.4$276,714 thousand in 2023[250]. - Subscription service revenues significantly increased to $207,422 thousand in 2024, up 69.1$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$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$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].