PAR Technology (PAR) 9 Nov 232023 Q3 Earnings call transcript

Good day and thank you for standing by. Welcome to PAR Technologies' Fiscal Year 2023 Third Quarter Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that, today's conference is being recorded.I would now like to hand the conference over to your first speaker today, Chris Byrnes, Senior Vice President of Business Development. ahead. go Please

in we will and joining Steven, third on everyone. measures, measures believe certain investors thank items. Relations this furnished And available financial can financial the this in measures GAAP participants as earnings to a remind we results. Thank our is release release.As these that for reflect good be today's based of for earnings afternoon, trading call and and also description our of Form us the useful with our X-K -- page available management's timing our call of the you include most statements financial results.Following comparable The you, close non-GAAP Steven afternoon, to released to website that you like which I'd excuse SEC.During we forward-looking where The today, data. our quarter well items, expectations be partech.com, currently the impact presentation find found non-GAAP exclude of also me, to as conference may call Investor to our can the the of at said reference on QX financials along to related review reconciliation

Investor recorded, I'd are this be President, results available of and relied for to a Harbor Singh; link Relations website.Joining being general and release afternoon, to SEC.Finally, and and to quarterly Q&A. will on earnings in call CEO Bryan our today this Steven the with conference in actual is made turn upon this by Menar, or replay and Safe subject that me call, be uncertainties. Savneet Savneet it forward-looking on be Savneet? call on call and of remind as the like annual included which available the section will PAR's earlier, may statements our our via However, now to Financial over the call Officer. like future portion Chief projections statement filings everyone the followed said is PAR's remarks and The information events other related to for subject I'd the to formal the

by year. thank due the continue to value last same as Thanks, pleased last same I'm often year you last price third grew report multiproduct we subscription XX.X% flat period quarter. higher gross call. million Operator and and bundling, over and joining Solutions increases everyone, from negative on messaged today's ARR Operator making quarter, and internal million by $XX.X from grew ARR a us with Solutions we afternoon, we Chris. rebounded while to last for quarter.Our to XX% the compared when year-over-year. XX.X% revenue the ARPU to and $XXX $X.X to the same EBITDA QX, year to important payment in hold period OpEx increased PAR projects, service XX.X% improved implementations. Adjusted in came margins XX% strong Good delivered by contracted at We ARR by million in period investments.

trend We quarter. the demand Brink continues seeing expect and of be are to this elasticity low for in X.X% this to continued unit annualized business at in extremely continue.Churn

partner mission-critical platform. a proven, position continue Brink menu in to exclusive which and to upon new the our with signing customer, restaurants. Brink Brink.Brink win SaaS-based due cloud-native and systems the restaurants from products the cloud our to enabler We with legacy enterprise product, both opportunities growth to is modern X to positioned be Brink is will and out well enterprise a emerging internally as out as expect a rolled Tier uniquely capabilities stores.This the customer proves beginning multiproduct X,XXX and its deal products of transitioning wave as its developed the of the feature-rich we out innovate King as this proved stable within scalable domestic ability category-leading in reach brands we our uniquely to for and QX, our third-party across This with like announced Burger enterprise and due status what be our of as environment, next and offering.

tech partnership iconic restaurants unified and Brink, over Our loyalty the their our Central.It's client plan, upon live approximately King on starting by encouraged of turning our longer-term compared brands Punchh as quarter, and QX eat Both increasingly largest PAR on Hortons, in stores record well deeper Wallet.We loyalty value from data BBQ expand $XX.X quarter.Equally Tim juice, few. XX% using robust aspect we Punchh additional are with we King.What's with is RBI validating secure and and one to X.X% to engagement million. us went Punchh, Popeyes, usage other multiproduct globally up from are Mo's on leading their to delivering how One PAR. along pipeline an are restaurant Chicken King partnership time the hard Wallet and something we such consolidate in Punchh, some deliver build and two QX, for basis. attaching Smoothie after will customer for plans broader growth. that transformative over totaled come.Burger increased Brink, guest and interchange we the with as Creek with Burger via tap with PAR Customers and most like a through our ample continues spend driver are the the costs. more, in we a of to incremental completed cross-sell.Our This our unified anticipate daily are logos. for system-wide trajectory express the and BK new new Burger quarters. that our driver impressive Apple POS.I in momentum innovation. Punchh XXXX XXX announce expectations timing map and offering next strong white payments Top beginning payments and PAR a Burger aggressive driving saw as the Louisiana and even [ while year continue of and the ROI MENU rollout to continue. large ROI unified the Burger to that road Unified integration update is deals the this ordering savings some very churn, strong at growth live and customer the when DASH industry which will to intention in we In market both XX% signed we to including strategic all under in RBI Smokey as of seeing slow to and for this to Firehouse call be space engagement platform grew a we combines and enterprise Burger a interesting, years financial expect Kenny's customer net Apple has will strong positioned sign-ups This within users restaurant menu. gives repeat advantage X,XXX our seeing selection program from coming and look working revenue push believe again PAR report online bring are commerce, Even just of a more start and financial Hat and more exciting King this and Chocolate from is we we'll our the have as now bundle Factory, BK's include the the a customer programs.In over Punchh are We by be companies Booster third the in to name and ARR our the deals Subs , we again growth look robust be as the in customer clean King for the services King payments important, includes as brands is for -- that as increase the in impact to We Burger value realize engagement a PAR the ARR to MENU Coconut of most QX restaurant a one QX, expect and loyalty, the with Kings doubled years enabler increase last churned in brands they rollout relationship we across commerce that Punchh Rocky than with pipeline Mountain in a marketplace. and few you across in years goals this XXXX Brink, platform building rollouts at see and ]. point has build with against QX return per digital seeing work went our customers, from committed to when POS, CHOP delivers visits moat with scrutiny.Moving we'll out adoption the third-party XX,XXX incredibly QX ARR, competitive execute with in-store, push We current a Brink.Moving climate, initiated to and quarter are to a customers are payment brands vendors with payments. strategy.Moreover, Guest PAR's saw that and a market unify low saw few of and and during basis Commerce on We on

features to to MENU the our raise guest signing business We have customers other are important invested is in proactively piece adding cycles.The the engagement our new increase ordering price a in place. and up MENU. at our support engine digital customers' market requirements addressable our in ability rapid better is renewal platform and to

signed and past RBI drive Limited menus The we Grubhub over is menu Eats, the now new on on integration on QX, US DoorDash, piloted Excluding sites locations signings QX during went we include integrations our healthy will signed of menu. over The well.In was majority X,XXX live pipeline customer up with quarter. and Coconut and in have logo we those signings. Coffee, QX, Burger with in attachment. QX. first all In the Scooters Restaurant King, as certified for additional along Kenny's Uber signed customer and successfully fully XXX Services payment our

year's on delivered environments of key validate went acquiring a and last Brink believe solid XX% we that more also $XX.X signings in Travel to continue with to QX our stores. services on margins operating model at was expanded and Love's traffic active million data quarter and high solid we require In have rates touching was performance with increase Adjusted Enterprises, of early ARR industry-leading customer hardware stops.Briefly and to thesis and investment with relationship for and reliability.Moving and within Earl quarter, live Reported year-to-date expanded our to a subscription quarter. Hoda's restaurants, hardware, continue part from QX. with We menu office subscription Burger our XX%. maximum King.Back financial markets high We of our gross menu see a the now in the rugged shoulder levers X,XXX services. had win than these Central have attachment another

about gross gross spoke saw higher. QX down long items quarter, adjusted in reduction the of those and quarter to we last As onetime and return medium we margins, to and term get goal credits.Our run be mid-XXs to brought plus spend onetime a in in investments the from the XX% this strong and the margins is investment

expenses marketing become a the Over revenue more we the of the not be around gross supporting services services.As to operating year, sales similar at software on looking QX, business, expenses our of makeup a releases for our subscription in transition subscription in how to estimate services to coming this ARR. provide start, just detail XX% out our largest begin last line and as subscription broke but year, we our growth when will the margin, to roughly and

its girl As down long-term strong of revenues to or to we expect to our we a XX% grow continue pace, way continue work less. at to this number

for releases long-term coming ARR work in we allocations, estimated more this we'll is of percent XX% to XX%. the of continue efficiency to cost provide to and ARR. of QX work a been we'll number As down focus how has R&D a detail trending.R&D this target on was expense be as around huge shared number our PAR, through in

to to for Burger revenue been been base menu, that IT market, our we to has quarters, hit three have ago.I on made our adding adjusted rapidly.Without forward. are think track but and you I needed bit, EBITDA this targets.These hold capital the think King is OpEx investment provide emerging investments while continued estimate flat you our time. as that two our here to as OpEx actually and a and done Menu, margin approximately Data being space. points. remove Again, gotten. for million operating continuing to additional expense are of investments year back in get in when G&A menu we positive an many we'll improvement without headcount slowed it coming the But incremental into US Our will basis ARR Punch Menu long-term percent tight see R&D ramping this a our quarter, see These highlight make four of more by reallocating we've from efficient our while going has flat internal in a have our how IT, investments Central.To in without we so If XXX progress our were menu and last the just we'll we layered making internal efficiency tremendously of we've operating expand but points efficient areas our where And releases, large systems. investment within the becoming what about expands, be This a for tremendous would to has results details made think all were been accomplishment that we've incredible been adding and to spades better, expenses.We in nearly investment for ramp-up our move we and can this $X improvements new to just on. more large P&L, that making investment teams gross hold hypothetically rapidly a have will able in expenses highlight one that Brink, been King Burger in investment we'll near

Central and First, gotten our core Data efficient and Brink fast. Punch have business of efficient

how Burger this King While King Burger teams be the of it we up, come. Menu and at Menu's lost was is investments efficient the to be win Menu, are spend on proof getting.Second shouldn't short-term in many the and King that Burger though our points cover believe IT will pain. first our worth

is accelerated around coming growth will path we more towards plan continue operating push to Our revenue the additional simple to Rule detail, come and and acquisitions back end. very our to review here holding strong I'll will in aggressively XX, while going We're the drive now be the tight. at corner.Bryan expenses numbers see the of the Bryan?

per strategy driven of the million a reported our engagement for active offset growth to $X.X quarter loss X% three in million in afternoon, guest Professional X% subscription decrease year's engagement contracts and and an services driven Thank Total for of $XXX.X driven sites $XX.X increase $XX.X you, operating million million, We've everyone. million, loss million, million from by prior point ended of of in from transition the solutions the compared services was a approximately operator margin months increase our XX%. subscription XXXX enterprise quarter business, services and the churn. was quarter XXXX, of by backlog the enable XX, driven is revenues service $X.X Savneet, growth primarily $XX.X net revenue consisted churn partially XX.X% in with turning or recurring per QX growth increase maturity commitment the XXXX. government's revenue, were $X.XX and Burger revenue the coming third subscription hardware to by revenues flat, the continued prior result increase million international XX, of Government of to revenue, margins. government services quarter in increased September in and million third up from was revenue.Net addition good as ended of in or reported versus driven business in by inflection from with $X.X existing house a expectations.Subscription and reported at an was the task $XX.X professional months continued product orders.Contract per revenue share of our of loss of XXXX, X.X% back professional by XX, XX.X% increase Solution from million was of base.The million the was guest from three reported million, an from increase internal was the reported in investments decrease to $XX.X or business in QX allocating hardware the million increased X% increase for year. loss compared $X.X increase increase million loss driven our a September prior X.X% $XXX.X of in for the and the margin compared XXXX. continued engagement product and $X.XX same or partially site loss XXth period of $XX.X revenue funded XXXX.Adjusted services XX.X% $XX drive-through $X.XX menu $XX.X by This noted $XX.X Counter-UAS million increase recurring million increase managing X.X% same quarter XX% million, XXXX. quarter kitchen guest North compared sites $XX.X XX%, million The million $XX.X or ISR million as exiting The and in revenue in $X.X Services as in and with increase customer in of up last line. was third site while was was our QX America line or consistent driven revenue from September to September $X.X with increase operator in XX.X% improvement adjusted or The cost $XXX.X Punchh's annual to pricing September XX.X% is up was XXXX, million to managed to average a XXXX. for XX.X% managing a Adjusted site. for in was XXXX increase in King.Hardware to at by and by of a The of million was of $X.X per site.The of we revenue XX, site an increase the for year. third usage as from a from per better period revenue Menu increase growth or adjusted services offset share XXXX X% million share year. primarily loss to reported Hardware increase an our million $XXX.X for the of our to the contract contracts.Contract of revenue million.Now per same Solutions Total product EBITDA the support the by quarter of QX was $X with for active appropriate. to effectively addition in costs inventory QX loss margin on continues subscription results year-over-year compared of expenses where and in deemed an EBITDA driven execute in in was from The of X% management mobile displays, recorded and net team and products. in holding quarter of XX.X% the share XXXX. decrease was $XX.X The revenue XX% sites from with $XX.X $XX.X loss The net million a million, reported $X.XX by business an remaining loss the period in $X.X $XX.X was revenue of average million, systems backlog

for reduction amortization XX% included margin Sequentially, services compared The intangible three for total adjusted The compared We for assets, least costs. services efficiencies by increase million onetime XX% for driven margin the three credits improvements of made in quarter we investments subscription the million ended the months intangible go and XX% of hardware is continued XXth September subscription of our in services of $X.X XX.X% was QX support driven to continue the QX.Excluding amortization in QX. as was to customer we XX.X% in compared September identifiable XX, from timing $X.X margin improved of in reported XXXX. increase during in The in compared margin third XX.X% XXXX the in to including QX.Professional assets for the QX driven services X.X% to overall reserved increase for of to QX. quarter identified the by XXXX. quarter Subscription months at margin margin previously by to is use service and service of and the forward.Subscription expect was quarter compared XX.X%, third XXXX, inventories. adjustments, cases was ended of XX.X% of margin margins hosting margin

in menu, R&D team to corporate the direct X.X% lower to $X.X was mid- expenses. was for investments.Total the QX an million expenses.Net services our of as margins operating the to months in decrease operating expenses a versus QX R&D million to services XX, is transition to an of non-GAAP of QX of the $X.X or in XX.X% the as as contract benefit million, $XX.X $XX.X manage backing million, versus million, $X.X $XX we King as GAAP appropriately internal hired the The in to million $X.X XXXX. end continue X.X% the expect was XXXX. adjustments, during out to and labor including recorded XXXX. nine the win.Sequentially, QX growth Margins continue orders was Backing in margin the was recorded personnel are million diversify million of We back in million decrease million QX transitioned regard SG&A properly the service to expense to from non-GAAP driven high is improve reported by back quarter consistent were R&D we our and we QX QX down from for reported professional to offerings, teens $XX.X XXXX.Government professional $XX.X with margins bounced for the and to $X.X out compared XXXX.In $XX.X levels increase X%. the increase improve recent product from ended and task our flat ramp-up XXXX. QX expenses needed and as million The to Burger R&D million net increase menu September the XX% of I we year XXXX. margin historical support normal $XX.X compared effectiveness related

compared we of the As while continue manage our interest keeping exit growth in the flow sheet from to will to million The we end to million business recorded XXXX our position. interest increased indicated expenses XXXX, XXXX.Now XXXX. driven cash of Net at flat $X.X QX operating was by investments is in short-term compared balance revenue rate. decrease on to expense $X.X provide the company's XXXX information and

outstanding nine For months resulting year. was prior reduction XXXX from million versus activities XX the sales as December driven for XX months as for well segment from ended ended for September inventory transfer burn the management management in was system to working of $X.X transactions.Days restaurant offset million September Investing for compensation-related cash ended XX, associated the enterprise Cash the software for used internal $XX.X the of resulting $XX.X the as financing primarily million operating for XX ended investing activities and versus XX, months nine by $X.X from stock-based by prior year. partially to due the impact the and September compared was nine the used leverage million short-term was the as prior software, of in $X million September activities increased million for million from XXXX, September freeze million improved with capital included activities to and financing a days developed $XX.X during used year, was the XXXX. XX in expenditures $X net OpEx.Cash investments. of restaurant compared in XX, XX, million $X.X year days of retail to cash XXXX, and technology The of $X.X capital, for prior months retail activities operating our platforms, for X

for We segment range. expect from XX XX outstanding decreased XXXX. the levels as come of XXXX, to to XX-day September Days XX, back to as sales levels days days of government December lower historical of the DSO XX,

reflect ARR bottom we we've to performance, margin the improvement.As a considerable of profitability reallocation investments line we services now to to as development, the Savneet while agility meaningful margin those revenue on in R&D continue ahead of of prior rates closing investments delivered the allowing QX G&A improving are OpEx subscription not highlights we announcement through growth such the with and our Savneet runway cross-sell corresponding our Burger will confident to menu and is logo of as growth significant back remarks to resources mentioned, way. internal and team. wins drivers, King.I and for gains and are recent in As our both there manage on drive This IT to new base acceleration and to Q&A. we our us moving turn growing made call flow over

Bryan. Thanks,

a with few open before call up me the for messages we key Let Q&A. wrap

get in the we're positive point We forward just inflection which the a of our rule on have of we're at like on our wave a same mentioned buckets is investment spend a we're our next more beginning reality, as to large that at growth of What a viewed expenses, of believe coming at spend deals makes provide how business can should that King believe are in aren't hidden par. base. higher even you of the our We observing rate earlier, color in our expense is XX.Second, the long-term to at spending we that rollout we than in our ever. and time, growing unique while Burger as to existing flat looks by operating what on IT to Difficulty] us change more internal is on menu more to well details clarity call, earnings At so [Technical market, results growth.In I profile. detail on it large financial I addition our winning amounts as strong sustainable as big tidal that think giving of we for is guidance look

without XX. engines a new growth working expense.Third, tomorrow's are net We we of funding towards Rule are

This quarter, negative adjusted EBITDA million. our $X.X was

our we made add grow menu new our R&D, investments QX mentioned, new Central new I to every growth ARR far IT make proven my win internal last have live. for marketing added shown call. that dollar sales we've ARR, revenue we we that MENU profitable, engines.We positive. dollars falling bottom marketing take XXXX not that of for of OpEx. of every line about on or What ARR. our this dollar for incremental been to of we from point is of gross has money us needed shared generated been a the then that I EBITDA backed $X Meaning already. would as to point, Burger I we'll and are and not we expense, allowing very since dollar As pump Brink, those the G&A sales and profit roughly to from adjusted the new This Payments, our QX, the have a our products that also believe the investment, value King to Burger because exceeds and that are return Data of core Punchh if into have making out King spend Similar at becoming and reinforces into

sales to long-term marketing contract us confidence is balance existing little products scalability our reinvesting has on in of hard flow more working on highlights new to revenue our our broadly the our our incremental to focus of use this and suite also R&D, cash to customers has is the competitive maximize expense. scales. maintain growth and MENU products each signed.Adding G&A on and profitability between that no playbook it and acquisitions and new requires business true underlying TAM. our This our with on We're given have focus think I come, we profitability shown our on been as we same move summary, and working.In faster tremendous existing once stronger. never to But we'll product position

to that time. not like on systems and their winning open worthy at thank call vendors, we at I'll team need data our PAR.With right their global unify the scale Operator? are a and right consolidate of Our to and enterprise opportunity of efforts continued path I'd to is player to success for strategy PAR Q&A. is this likely. closing, It's is only Restaurants the their think and their trust.In market the the the we taking that, special dedication

conduct question time, question-and-answer you. of from first Will Nance this At comes Our [Operator line of Goldman a Sachs. will Instructions] Thank the session. we

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Hey, start guys. new disclosures all the quarter. Appreciate you BK you to taking the maybe the question. for win. helpful on in the Wanted forward details coming And all looking thank to the

wave?And if maybe that in could challenges this forward more us looking technology under better kind competitors competitive then on of of maybe on process win to kicks sense process? you your more could And time mentioned like you the bit you give maybe for how are many on any on How forward. a you the think in process went How X with restaurants maybe legacy in going how think the you RFP for do So market? this that a positioning off take? What upgrade the you were competitors is belt? Wonder did Tier then this? you seeing you were seeing do about that. the double-click specifically, win line long Thanks. little their the going wave What think or it whether yourself? And color BK

Yes.

title first the loyalty quarter, just as it the at feel more of in say the wave. relates than on within I'd largest world that PAR from this time we we that we're also have punch. So POS.And we in we've interest and like entire in in beginning RFPs seen brands question, in my to see the

have don't think movement we've now past, seems it maintain reasons keep which and is software get the it's IT for product look expensive third-party players do advantage the modern of a at incredibly benefit I hard the to by of having large coordinated, systems.And it's so this there is modern the think the your was is to the talked off, software, everybody. very but you kicked because of we in I development to it and And them own to about

the more again, last we've just here are kicked RFPs off, ever far happening So couple at notified that since I PAR. literally that than had been in of that see we've think we and been have months the

ourselves the isn't BK. the say, historically for competition, as space see competitive. -- upstart another deal relates demands The our exciting a handle that that's to are very incredibly and players.There it's large like can it of an enterprise are large of this to and innovative win, competitive as all I'd So enterprise big the processes a that.As sort in it's and mandate scale large volume large a brand exclusive

it came in the I end, to our think down product. so one, And

we clearly you anybody product think And it they its a I unifying incredible think that. POS we if culture.And big our on own want think felt really do to project, I culture of, sense two, alignment a fast. I they've that there is hey, of there, think say we would sense went product.But was partner I who I were and an on really sit and think from majority, been in came a our of they through talk to

think it showed product, our parts out culture, PAR. roll showed to I speed, our So but quickly. best you showed our ability It of all the also our

the Very better. well of business, of you the you at on all said getting then, right contract market the to of maybe appreciated sure the obviously just the a contract make that previously And business momentum kind I recent question, keeps wins.And now. look, that firing some wanted know size and and cylinders it

of business the you've working on, to you're BK to So for know kind as I you're now of that I well. going win, then, time huge ramping to ask a the And lot be now. evaluate more talking is is, absorb a can process got in guess get context It question sort the performance of better? acquisitions.I expenses win the on you're like sounds going menu

So when kind priorities like recycling all the thinking how of the about for you and maybe are capital? you business about think simplifying some of that, like

see because aggressively on alternatives do I Yeah. that think we how forward the to we right. we'll doubt suggested. capital you push kind for is that can deploy time.And MD&A, in our you would and look continuing time those business, strategic we're QX of think exactly And No right it's the

there working ramp deal profitable. there's quickly it's is we As ramping compensated quickly, that to the for up it.So short-term incredibly up our very stuff, while a it relates of long-term, spend for beauty we're and

So I'm not too about worried there.

primarily do. menu be in will We investment what see the in for growth looking the think M&A to business we're to don't divest I to and need large King in potentially another So deals. fund Burger the go-forward we

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capacity cost the of capacity can in for in you us Thank is this curious so give a what without substantial BK, increases? what units, words, other how quarter. you. you on terms sense Savneet, did rollout, the you congrats quickly X,XXX Can the of

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of it? scale As point a sale as broader them of versus you many of looking solution think these large are RFPs, focused you're the on unified how at

then time and would they to POS start to more in I all table. the we're off as able say bring the

was example. at product be But goal as down deals. customer we're I look think start at our of deal that's with is working out got least the two a the always one now. also pipe, four-product most great We've so And every coming to them a two ones products. on BK right will I

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that And and for do look can particularly gets other office. online you the stronger also stronger if differentiate do so the the helped brands they're saying, the well, can It back story brand. us think ordering, way, ourselves.I and equation you will and at think ROI also that same I helps

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the this Samana. guys, Sahler Hey Jeremy for taking on Thanks for is Samad questions.

opening mentioned maybe market. What remarks, you engagement that? your On little it it the the on menu churn? to do US related the more churn, a taking guest in Can briefly exactly was you to elaborate

where menu, it's was on kind we all to US our a is not it sort base. not to to you to large to an -- it customer BK, that's we say, that you international get Yes, first profitability. then hands And but win. when international to it's major so kind the direct a bring get unprofitable, of the deck focus on given it nothing need let's business think meaningful. But let's of US quickly idea acquired -- can that And business decision the of made And had we an large, the

maybe know it. you up maybe up useful in. Are had guess color. up on following investments cut need you to issued then kind all infrastructure And was that there that of are guys I get there some you still last rebates of I to the kind make speed? Got there? That's you to quarter. invest

that had any the Part quickly quarter. of just not was was just made having the margin this Well, pretty here. Part jump ROI, we credits saw that in gross that of the investments back I we

didn't don't dropped this I to were good expect quarter feel again. ever we about credit because and and they we in have ever last had that investments. the quarter, margins gross where knock we we kind our on ongoing always on spike So, issue addressed QX that.There's wood, of

again, DevOps the in high the margins tied the And of to be have who get early payments in we and constantly So, -- -- us aggressive ramping plus are to this but Brink more really cost be we cycle. like got making short majority short that to and run we'll that's pretty And higher. most be I where vast run, of much the because to good. will medium, have and scalable, feel the life then are XX% we very get and these we long of wanted both said, want their usage menu to

take broader this tech Got Maybe it. one their you brand, they Is seeing becoming one Are last of could prospects? one saw turned that any among really about week stack useful That's house off there from a concern tech if maybe your We trend? to in-house. I earlier a any squeeze competitor, in. color. the large --

opposite. the seeing We're

we've later. being hey, think really we can a that back others example on great we'll you we you're a can transition company and I It's then, can is loyalty Brink can much think of dynamic got you then your you're But not that, us very and that's we in also not office. systems need POS do single lot something take to one like is do that of want a -- expense an do a easier And that.And talk you're the -- verticalized you I offer exposed if the I again because think really such see but multiple about risk. large When restaurant, are opposite. to you product managing my it this, company and ordering to a POS, the you you're to vendors. product say, doing enormously if the

we in seeing product family different have, it just conversation. really the the we're but of I have. the market. opposite makes products we a And It that's So, think also of our the nature

That questions, guys. makes sense. Got my of taking Thanks it. lot very much a

mentioned differently, churn. the and I you would product to don't were think was loyalty, or that a the like integrated we I if deeply POS that have verticalized Maybe say you'd product

you what keeps So I sticky. unified really think it's being as

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is open. line Your now

questions. I've three got

could it M&A or you close investments But fair really I'm quarter. very you're gross and But more -- assume assuming degradation, here and a you'll obviously, path without with one, that to I in of the likely to trying envelope be guys mean, do back that. your I'm to math, M&A? the on you the punch. all burn you quarter.Is sort or First XX%, to you'll of breakeven of to menu to EBITDA of it? quarter of low-XX. from is and I that last guys sort just And it's make positive think stand-alone the fair in is path fourth no the assume going be will just that there. like sense incremental based at getting XX impressive margin piloting gross a obviously, I like than if makes at I mean some pick pickup to and fourth OpEx EBITDA to -- sort quarter flat, like is million is Rule sort have to it numbers on add that the but accelerate If margin gross fair of looks assume it to it add number, there ARR X margin mean, unreasonable it, even the mean, a XX% with understand. I feel sure you of there next do

Listen, Yes. M&A. two without can that get low-XX I let we think to ways. I'll -- me the answer

I pike I'm are than not go is -- of we us we'll BK for as we our more. guessing, this deal this expand the right? about going call our coming guidance, deal. There likely that So down in again, growth XXXX even in is, accelerate will First it only deals in And the to year, are out next XXXX. the talk mentioned, would and likely faster

And on good the revenue on menu. so I was I really side.And quarter as be this think entire our burn call, we'll the mentioned

big we which brands can will announced on coming the menu think help. so we inflect And these some that now menu. -- moment also to scooters, positive, are This really we coming is

no and matter we a there's there XX our path Rule think what. of I own, get So will on to

to because on will, we it's accelerate goal.M&A XX think, cash choice working We our not accretive And and will that's to our I Rule it. no are though have and are dilutive flow of and we the a that positive, growth stores. deals

help about growth. faster. on areas next really then G&A. And are we've cutting we on a IT the our of lot goes the reinvesting $X we G&A that ramp-up without OpEx, did So should side.We get menu those of I went in do there mentioned to growing the M&A systems. at it OpEx and us BK deal. good million good and the in of G&A We lots of -- talked really areas again are that the

we feel expenses, marketing. a I get acquire of of we good out and if leverage and lot operating really our And so that particularly can operating something, G&A sales

So faster. us certainly get it there will

and look, mean, business Yes. thing look No, margin, marketing at clearly EBITDA margin I at be you look sales XX% mean, scale you at and can at when I gross a scale. the XX% at this

EBITDA about And and so rule XX% of if margins there's revenue cross-sell. in XX%, growth you your ask XX.Let me something the

has that been -- I to customers. losing basically for products be could possibility? chain in we're everything he will our I $XX,XXX, the of and sort a starting house another thousands.I really of if -- is you're the of double-digit competitor you But has mean, couple mean really mean, think but talking well very cross-sell. taking or hard expect something named sort one the large PAR to really in X,XXX data Your the into the MAX do stickiness getting AUV seeing about, X,XXX and you one all know see you're a that mean, I of X,XXX payments add thousand you're that it unified with single be at I of of lot competitors time at $X cross-selling a every creating $XX,XXX when getting who had your not at a is up sort X,XXX, restaurant, bring menu of could a XXXX? commerce I of call products, mean, paying we of sort have in do X,XXX, are I million where maybe punch you centre everything. get under mean, I at Pay, terms

the absolutely. look the right, ARPU, but if mean I numbers, you it's also the say in Yeah, upsell I would growth that's more at and I listen, think pricing, of products. just

just here, which of we're best what market. it. and are upsell would single I'm And would we you it's but area the us it's product at the most we I into when good without big tell happen upsell. coming it's improvement right none up, seeing say internally, naturally. doing are stumbling one deals. I deals the our And and need kind a that's we're announced, on on last saying of is And I doing to, cross-sell of I happening If look referring the you, of job job which the this Adam, others in that cross-sell time wrapped couple was of that -- motion this

great get we when it imagine and Just at will. we

at be us think like, very see So Punchh pretty Central course, I good we Payment I quickly, the will stapling Data And it you're to on slammed going box. of guess see you're think think are And there. to Brink your think combo. I is get out going I

mentioned I punch. menu the our and of all on had As payments call, almost have signings

get operator house and if so there. And sort side, front will of the think we you that like of of the

brand I first is a job So we a on one. good to up think getting And that possible. do on large very this particularly,

is the if that, mean, call is and is I horizontally to you brands And relationship other if said intent a but call, Yeah. think think the and menu your punch best Burger of guy, the this expectation move there meaningfully. large the I earlier on mean, King the obviously, perhaps but -- is rest and grow you the something sell mean it's the you deliver deal well goes that, I that in that we should I into you I everything -- the earlier in rest I the execute obviously, Is competitive that that but think RBI that mentioned chain, on would expect right?

it's mean, going going partners is that expand and -- time expand in we've I great want we ways. a to I It's to RBI. think two -- to on been expand That's to which right. that, I

grow I across us. they been partners want incredible the relationship a We fit. We great think think the to they've have. logos to we're

and We maps. we're on from Punchh be so from I are That and great expansion. to we center but perspective. the road will a aligned data both perspective, think also a provided adding so and But forth, culturally, will product pushing product value be

off-premise Brinking And a think that it's sort us so, we to. that not product chose it's the they that transaction just is understanding and Brink get an And huge will really of MENU, incredibly large now opportunity an highlighting sign have from they that product I a

of firms And largely sort sort of the is My of, I lost sort M&A. companies third of saw question because -- in question the XXXX their past, would on materially of been said I about stickiness the hanging everyone customers. around My sort and public think valuations. have XXXX seen sort we single private and you've is, companies we've of materially the to valuation equity product multiple, say, have

in You haven't X.X years. really done an M&A deal

mean, sort it Because of this is X.X on you a transom ARR. or sort be I sort is We're to Agilysys. mean, sense many million a XX business? XX% of trading an but or lot, $XXX we're King. if like you the that you was business to company at $XXX mean, a is at the hire my trading a times make value. Burger that think that at aqua and -- I margin of massively the ARR going not done this probability cross million ARR what $XXX land XX I and You've able wasn't do were million

don't if as M&A or three, is the CEO, exists. done I the front. on ARR one priority would my you, one to absolutely there think there. to I that's is million there's I but get I my know number tell possibility it's that think KPI And in is buy it's ticket $XXX

we enough, really we it's fast. just on to twice the has stress obviously, And got right, really again, think here, say, as right can't to the got embolden we fact that time. right so we you and I us this And got menu punch do

What are That's doing? at their the exit is, not they if my question mean strategy? are companies that is my What $XXX these company thinking times you? trading what What's is do losing I they're question. do doing are to revenue? companies of ARR customers million selling X.X

reason think a some I opinion. idiosyncratic have They'll right they have all now.

stay company, drive of your shareholder I think without hard its that a to wanting there forever return. a to

partnering I a with return firm think like that Park. is

you. I think agree I So with

end, and think objective of and markets in ton benefits the And I par. it think are makes logical a sense. that I

One question. moment for our next

Our of Charles of next question comes from the line Stephens. Nabhan

line now Your is open.

see I to of wanted to areas to drill Good but bit. wanted a better. couple that area, in payments understand the growth in the little a I

But if accretive the payments be could on you some of the margin? us point. think margins to give how to potentially early in Is where and gross secondly, are just how one about at or this could of Specifically, color it's choke know to to throat the scaling price that stages and it's you winning? then when scaling business consolidating I on And vendors? it and it dilutive

For sure.

because so that. We're everything winning, like of that product think, so than simplicity powerful of product, to we of do, more the the that first, the It's it's just but that that winning? So integrated. same why to into choke it's are I integration much we one-third dashboard, have the

And but so rest got we into the what it's One-Tap Pay. it's that a one get on loyalty choke Apple of problem, of you've example if really do.I integration an

that the enrolled people pay program can to in so where and a and the pay, loyalty you only with powerful think do Pay brand. I Apple it's we're that can get

you're now. payments operating margin innovation margin So once nicely.From win continue really why that to to in integrated one we that's -- I our perspective, went and will And across our think can do chokes accretive now we we plus to a be the business close really, us.

no lot seeing -- selling take time So have we it and the infrastructure revenue little team is same through of just a margin gross a a just because we our in of we're driver unlike But it works big lot because not account cost. over our cost be the time adding net we're growth we're doubt product that because it more sales growth, margins on gross of on coming a basis. perspective.I growing we to going will really the our one sprint team, think from into And are a here.We are a competitors right?

like basis, can you make or And basis, so a it net as revenue take. we big as times true was apples-to-apples growth an the payment because on look XX twice whatever we're a big giving on

is engagement And think going some wanted Right. better The question how Got with want long and of guest follow-up earlier that churn, just attributable around it. to is quarter, And place? helpful churn normalized is quantify you growth obviously, that MENU. if the if the to churn would the for to well. the as that that a take should get of X% growth, we I could sense as be as controlled business, this think one, there well to I how about rate impact of

For our around the churn year, X%. is

normal kind been here. of churn not a it's our So churn. That's high

QX of ends the QX, we So good. to going, I here looks the think place. get into new see And more where really we are six, engine in house, pump and will coming from quarter faster relates area, we it we'll up, because be had be and the I side products know that going? will get that be as you'll the car, the get where I We'll much growth if for need us than great a we thing growth really next we the this do think engine also signing logos. us, front acquisitive growth weeks to today.But this seven the want think of how to this that

to here a see starting part are want think the but again, kind the good That's our numbers. good year. And also I year-over-year, churn. acquisitive I in the deals of market, has we be to leadership really testament is to us the for So that's you'll now. been there.So of And think winning we where be, X% that churn

transition America, both we done off were with fact it's has, in obviously, the As customers are and stabilized to year's we're up ready products point that those where year, it.So using and for international of grow trying going win, product it needed and set getting on, with of next making that that area, to are this where continue both product seeing it for they And mentioned, the we've continued growth you holding most that for more kind business point here for of hitting was ready it acquired more were getting you usage it they right? for the an in and our this seeing can strategically itself which recent when that. inflection Similar and at North see originally to so to in current Punchh where going getting with growth forward. the we're as and value more inflection MENU, that

not for those. were guest growth we engine the really hitting So the on

So it that was kind churn during year, knowing that we're manage making we year. the of going growth a have sure to low

question. One for our moment next

of question Blair. Next William line from the comes Mcilwee Patrick of

open. now Your is line

just more to question I I wanted here. in one had get

the and pipeline was said of you to think you for had MENU I in deals assume BK one them. quarter, sizable last So a few safe

quarters? I your to we And now, just to divergence those trajectory So through where expect flow could any of coming looks the expect the in there from deals wanted other to in drive could ask reasonably we there now? stand pipeline profit any we are sizable how

For Sure.

one call. [indiscernible] on It mentioned was chain. really around chain, We've fast got BK -- So more what another corner. cringing was big this I press the

-- winning us not the business. We're So challenge for here. is actually business winning

stores about they a think we're from coming. add our the you what coming leaps so now.And be won space, it, this year not If and more away quarter. will it's we've had in in peer to next downs X,XXX compared big already We'll

said because United been in For investment. door That's brought this States. that really I make we've out challenge product is just doing. what We the the the us, the need to getting so we rapidly business

Punchh, And into that well. comes want a happened And the through of in superior door.So the flow-through of getting to hopefully problem. revenue some product. you'll an It's nice a that integrate some more have out the a that then we I product QX. think as It's it's business experience. the in QX, So bunch way hasn't see been incredible payments

for question. our moment One next

Andrew from Next of BTIG. the line question comes of Harte

open. Your line is now

Or Is your or region? is there on on thinking I you when just you'd you building the priority. want being to focus want check? unpack that M&A you about it Savneet. up acquire specific a focus one it, to number where to your to like most. boxes scale? capability a comment Just made is what Hey, do want just follow guess, about I that think about

Yes.

customer also a Everything a made one-tap create The with us So right? product made loyalty Brink a menu done acquisition Brink but allowed The to Punchh it's the and able like been better we've better. Punchh – always make of allowed based, taken payments. better lots revenue we've experience. far, us so growth accelerate better product acquisition things to of

there.The think, mentioned, to the would so engagement I side, want And revenue we on we other like up The market is for us, areas focus growth that bit as see on be part I say there. share. I think, you'll guest I ramp the where active

And PAR outperform really control given peers. by being to acquisitive, environment, this And of costs continues us good a in-house. ability we in for that take those to our to value. businesses think advantage again, I idea to bringing think perform it's and our

think I create it So value.

share is we share get someone on that creating additional logos part think penetrate because tremendous logo PAR, we we with can is have then that don't at as So take products, I add faster cross-sell the other our market the how market the look do which we that and we value know we mentioned at, earlier. today question

say, new is and last that.And would seeing I the geographies. then we're verticals part, So

getting And can is acquisition, the and geographies for answer are that time. quickly. there not But we're could pulled verticals new we oftentimes, and be with move an We at we ready yet. our into

that So parts those are we're at the three looking today.

jump then the that We driver kind customers sequentially, the on side? solutions. And And PAR Menu ARPU of function segments about ARPU rolling operator Pay, three you've most kind up. of lower or Thanks. call to the engagement else significant across talked ARPU all ARR numbers, just of guest kind anything our in like being think on that on looks guest then was also off done there. kind out of Is it a engagement, on of Anything a ARPU I of

Yes.

payments side, the it's on price. but So other it's

PAR. price to create do we we've our customers to and how continued renewal cycles. take show So on become value we smarter then value at How for

So it's lever. price is the other big

next our question. moment One for

Lake Next question Eric comes of from Capital the of line Markets. Martinuzzi Street

open. now is line Your

maybe whether in the installed I here large revisit the deployments kind plans I rollout. or to greater using the incentives with bit the motivate adopt insight maybe just wanted if know product, base King a in it's QX. franchisees something But than? to to Burger you on to be they'll you're formalize of curious to of historical little that know going new customer got line

this for on rapid would very There's I probably can't tremendous because this I those and franchise That them, just between are for to I about between the I can is a they talk their Eric, What say, unifying introduce those so just to us. excited expect alignment rollout us, focused base private specifically, but surpassed That's say it. they're POS. them. be relatively business is size. how

and to years. go that And of so And on going is for kind sits this not the that This quickly. will be contracted this way. aligned many chain we're very that way

it to think want happen. I both that's that will we And happen. so And why

PK. in of run follow-up or to to the a that your rate been change tied Curious hardware note then And $XX with million Okay. also deployment Does that Burger to with neighborhood to has million the $XX so. King?

better on but are them. that by services that them brands, hopefully of new hardware it be depend will The on take be certainly that a hardware next we'll we'll And in you and our we all able got services, King push it as there. working bit give guidance to these staple and But able to all be franchisees, as customer plans. will of it, absolutely them then Burger something be a will a get think hardware It to our But little I a our get other time have of to our call, will for taking we've to forward. XXXX, we're be driver and over -- through see going RBI meaningful services. us it on will the it to will are

our for next question. One moment

comes question of Please go line ahead._ Next Peterson from Kyle Needham. the of

of rate the looks saw have any we upside? what good government forward? to but really in questions strongly. that models just the use push in is that onetime Were run quickly been or my kind there of task third Most moving orders the business here. a anything revenue I It like ask wanted on to in the to answered, came quarter Or our

Yes.

obviously labor And the being was task able the so higher us that leveraged expect a I a internally party. it it quarterly passed hitting all I margin, convert in margins. some government gave a The the mean, expect the on to think set we to actually team, upper team properly that at orders from the that because that standpoint, revenue to XXs quarter. we able XXs direct third able through internal be back team lower this basis. where was cylinders we that the was and in in to to up of that over were was manage times,

X% and back of you margins, what move we your expect forward So now to X% that's we're with. expect would to what to kind

session. like This for for you Savneet turn closing question-and-answer Singh remarks. back now questions. to it does conclude the to Thank your I would

us for to on We time. forward updating joining look Thanks, everybody, next you exciting our call. during this

the conclude you conference. All This your in does Thank today's right. program. for participation

disconnect. now may You