PAR(US:PAR)2020-11-06 18:17Financial 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]