PAR Technology (PAR) 8 Nov 242024 Q3 Earnings call transcript

Good day, everyone, and welcome to PAR Technology Fiscal Year 2024 Third Quarter Financial Results. [Operator Instructions] Please be advised that today's conference is being recorded.

Now I will pass the call over to the Senior Vice President of Investor Relations and Business Development, Christopher Byrnes. Please go ahead.

Thank you, Carmen, and good morning, everyone, and thank you for joining us today for PAR Technology's 2024 third quarter financial results call. released results. we morning, this our financial Earlier as The page where of is the available SEC. as you furnished Form Investor Relations on the well presentation, our financial also the earnings our to find related X-K release can QX in website at partech.com,

non-GAAP a which description items, and During impact exclude today, measures, of release. I'd reference of and remind be these measures, may to reconciliation certain our non-GAAP this measures will call believe data. reflect with useful comparable A timing the along of our financial be can items. available we GAAP call currently that to the also most we to management's found investors in on expectations include conference participants earnings forward-looking statements to based like that

results subject our included to other projections on and future uncertainties. events However, subject our the in be the or and quarterly statement this to to safe related filings annual and SEC. in relied this with call actual earnings The are release upon morning conference and may forward-looking statements information harbor

remind of to for link everyone replay on a this Relations being recorded call like and made it via I'd Finally, available Investor the available our is website. will section be that

the over call call me which to PAR's Singh; will and Savneet Chief Savneet? CEO the Joining Bryan call, the today the general and Q&A. for on remarks Menar, to be like Financial PAR's as President, of portion turn Savneet followed Officer. I'd by formal now

you, today. joining us and all you for Thank Chris, thank

operating efficiency report a enabled has organic first quarter, operating PAR in represent began scale results metric sequential consecutive disclosing made company in earlier seventh the the EBITDA growth expense. tenure. delivered positive has which this leverage growth continued than management's QX for demonstrating this at greater to morning XX% and since This PAR adjusted the Our available with limited quarter

compared period to of including last to continued our in QX PAR M&A ARPU year. from ARR activity grew which by QX price the the This Group, driven increases year. ARPU XX% was same into company's million in was and by trajectory overall and Observed by improvement, last increased acquisition verticals period PAR activity, is same $XX.X driven from multi-product continue together. even return attachment. Operator attachment Payments financial Payment This Central quarter to multi-product compared sales and ARR continues organic be single a subscription and million, year. delivering expanding strategic more to engine best-in-class user products about unified the and opportunities standalone validation than improving last focus is of solution to QX growth the growth our stickiness, better expansion into company. a our by services continued that today. Digging as results, Our our XX% QX we grew customer totaled performance for period we've generated revenue of driven is has was subscription growth TASK accretive contributions EBITDA to in the on July. flywheel the Critically, M&A when closed beyond XX% reflects future this and furthering reported exit This unlocking revenue $XXX growth talked to working experience, the year The which product. new accelerate our the ARR services our of expected XXXX of Service Data and when XX% attachment. compared in improvement last cloud

upsell signings and we to X and and the positioned Tier Our be new deals grow Central through be both Data to new win and Payments. continues believe logo for well of strong, to opportunity ourselves

come. rates Our POS robust and for visibility has into years high growth a to have and backlog, confidence we consistent

all go seen Burgerville. the Brooklyn we've Eatz momentum focused since strong a of strong launch Pickle, quarter. QX quarter in which Greek Punchh and several of product market new of upcoming the Boy live set Wallet, quarter signing Acropolis Clean wins payments, marked gain was and pipeline to QX execution with full also Burgerville, first resulted company's concepts, the in Pizza, customer including the a PAR are marked Taverna, Turning by and to and Fat

deal, Additionally, we executed helps capital which on our merchants. reduce pressures first payments-funded hardware expenditure

ahead, code opportunities expected with expanding year. the the with end Looking of customer before we're capability launch our QX, the in QR of pay-at-the-table go-live

the which POS Central is go-to market-leading strong Turning enterprise anticipate becoming towards by pipeline the and the of uniquely momentum space back-of-house we Data solution. Central. in accelerate. believe pipeline a product real, PAR POS growth with combination will mirrored Central The solutions, driver is strong this plus as and conversion positioned both Data Data operator PAR pipeline. is We our the will and be is see

connected excited and we're with down only are proving one product. in gain is coming to cloud deal operator looking customers. operator continue product We POS our time, but of plus project see out, almost combined vision largest traction suite back-of-house the worth A to this with our has to Xx on months. the is suite a double our taken It

the Cloud year-over-year Year-over-year Moving ARR XXXX, our nearly XX%. XXX% Group, when division by year, have Engagement same organic results $XXX grew including strongest to of was driven now Cloud, Wendy's. by TASK period Engagement ARR Cloud since for Engagement last Total million. nearly the growth and PAR totals retail reflected Plexure QX go-live growth from of and the

major continues over growth, Cloud prove site this clients suite impressive XX in onboarding its last With new now X Our and the count XX,XXX product market sites. leadership, an stands with Engagement months. engagement Tier out-front locations X at to XXX,XXX Punchh

enterprise to gamification operate. This invest live in past on innovation, brands, represented Punchh earn, to announced X,XXX Wendy's and redeem, platform enables we as the Punchh, which urgency new launching with seamless and winning over deals deal with July, stores, launching to on Wallet, and including This and which well empowered future existing for saw with growth, with record customers. In as new X and with went brands QX. Punchh C-store pay, the people functionality customer While new our go-live with we timeline live upsell significant XX new we early customer Tier reflects interfaces. to the a X a new continue Wendy's, are are customer in-store a major first we take quarter

Looking to Stuzo, stations, profit a large provides in a and office. products, PAR. PAR Retail, up ahead, expect customer over strong Tier be and fuel PAR momentum the picked we and operates X to contributor additional convenience cross-sell formerly back getting and quarter. a Retail Punchh win in sales now including payments to XX,XXX stores is beachhead

Punchh by is consumers food within utilizing build major more With increase We've Punchh XX% seeing PAR with and as industry. investment this recently our delivery every recently and XXX Clean and years. stores. rapidly integrations, and options, made to more colliding, product position C-store's expected. sites also our adding Ordering out and we X sales Brick and customer that most per thesis wins. PAR tighter go-to-market deals the order and in a in Ordering also and investments is a rebranded the Ordering strength XXX base, extending transactions adding capabilities. and and and rebrand, combined Eatz to than and to the meal PAR real over oil PAR prepared the by We relationship are extended positioned to to uniquely scale, new C-store demonstrates current while winning we with we contract necessary playing deal formats faster even mortar teams our seeing In Menu milestone both out the momentum are play X outputs crossed health, achieving month million customers we've time. prospective QSR. We over benefit is driving achieving key are customer this are threshold, from connection

to revenue quarter. grew Moving sequential hardware, over XX% QX quarter

EBITDA team organic to QX-adjusted hardware of higher and upgrade customers services legacy is consolidated as long-term Today's continue in attachment products on marketing will growth review only impressively revenue and with detail. pursue in our milestone, growth the expect combined $X.X continue Bryan? point our year-over-year X. financial our will of with our POS back stabilize continued leverage for flex years. Bryan numbers the ensures XX% a services XXX-basis percent works revenue and R&D our to Subscription we an XX%, from this to sales of hardware-only decreased again spend of R&D percentage as focus metrics XX%, as organic base results. We expense M&A. continue can XXX-basis committed from spending and expense where of subscription metrics was to a our scale remains announcement EBITDA-accretive subscription important improvement of sequential QX. Subscription Crucially, rates our delivering and to positive ARR efficiency XX% that to sequential year-over-year improve XX% review scalability quarter us, as milestone to million but And customers. Stepping a and in our take over prove remain pride organic the point now we more today's today improvement day in was a QX. areas ROI. We in in the even operating

you, for good everyone. while top-line stayed we fiscally QX operating continue was Subscription expenses. a Savneet, managing quarter Thank responsible, growth PAR. successful morning, and to fuel services our

adjusted EBITDA profitability. quarter point, driving with the was As indicative growth positive million, $X.X for a result, of inflection a an

per same to loss XXXX. Non-GAAP compared million of improvement loss XXXX results, revenue X the the discuss isolated adjusted this loss XXXX. Adjusted of of on or for for ended compared growth stated the to quarter contributions respective $X.X XX, a of for XX% continuing as from the been a Government same increase loss subscription compared sale third of $X.XX share, was exclude months in including an for period XXXX driven was call, $X.X same share revenue earnings $X.XX offset XXXX. $XX.X partially EBITDA or morning service significant or XXXX, million of net or Government, gain have $XX.X as million, in in XXXX quarter $X.X QX per net operations a in forward, share, million, by from of by hardware period we per $XX.X moving million, third our in September the million, operations loss were period the and XXXX third $X.X EBITDA loss revenues XX%, Before operations quarter discontinued for those results million, XXXX, to all $X.XX our the compared in from results. Total PAR to an the was per and same will for loss the that decrease XX%. Net of within a non-GAAP any loss the loss $X.XX reported comparative share, period net PAR XXXX in of of

decrease from interest in in the or increase Now the of Retail business service within an million, $X.X compared total and revenue quarter for high represents sales an up and well the at more PAR million, $XX.X to or expanding TASK, year, as prior this $X.X million, to details reported continued XX% year's margin. Professional year. increase an million, year-over-year. Hardware a $X.X will and now gives was up XX% $XX.X prior prior and of reported XX% was annual base, the recurring million, hardware hardware as attachment the year. Annual Cloud revenue of was us that revenue. or of from from organic million, of exiting $XX.X $XX.X hardware hardware XX% PAR in our legacy meaningful Sequentially, the grew up revenue revenue XX% total subscription continue prior quarter $XXX.X million million excluding million contribute continued XX%, $XX.X reported software increase to on up compared and revenue Subscription the TASK revenue, year. was $XX.X XX% The reported from service reported year, our Operator $XX.X customers, at Engagement revenue million, or Retail confidence was PAR in revenue of XXX%, with from the recurring Cloud last the was million, XX%. XX% organic QX, excluding customer QX service

year. continue We professional quarter a to the to million professional hardware services revenue, revenue of XX% during versus revenue recurring driven increase of revenue in consisted of service by are recurring pleased with service our grow revenue the team's growth prior period was contraction. The a ability $X.X contracts.

of million, by reported million margin prior to margin quarter XX.X% a to support the margin reported the service in million an $XX.X The our from XX% driven turning for hosting quarter $XX.X efficiency the the was or of accretive increase third contributions and contracts, focus compared on an of XXXX. XX.X% by customer million, the or as was of services with increase from profit Gross improvements recent subscription with driven was increase margins. in year. The $XX.X well from in Now the as acquisitions. reported profit $XX million, $XX.X is XXX% gross continued year. Subscription increase $XX.X prior million, in

variable stock-based increase related improved GAAP from spending. In primarily in cost XXXX, operations in by for costs of for XX% QX versus services improved quarter reported marketing quarter non-GAAP XX% was regards reported for by with and and to severance, QX margin for the and sales The QX total XX.X% quarter XXXX, driven our to was from assets, for XXXX XXXX. subscription compensation, the being consists XXXX. Professional inorganic operating the reductions margins $X installations, compared margin increase an in million, $XX.X third-party The driven to versus operating expenses, substantially Excluding post-acquisition $XX.X marketing driven primarily the was or increases million non-GAAP sequentially of the organic reported driven in QX adjustment margin expenses, of the stock-based intangible was recorded QX XX%. Hardware QX management amortization expenses million and XX.X% of service and XX.X% M&A third XX.X% excluding was organic excluding X%. from of million as R&D and while XX% The increase compared the increase an the for to million $XX.X million, in costs. GAAP $X.X by field R&D And The XXXX. in acquisitions, primarily expenses, increased driven while million, and increase QX QX XXXX. sales year-over-year. Operating was G&A $X.X expenses benefits. flat increase were million increase and modest of organic million $XX.X increase primarily XXXX. inorganic was transaction $XX.X was year-over-year. GAAP million, was of $XX.X compensation, non-GAAP a items growth, post-acquisition $X.X organic an fees was million, well increase was by $XX.X an as from compensation flat for adjustments, by

Now position. flow company's to the sheet and provide information balance cash on

cash $XX.X $XXX.X and XXXX, had of and equivalents short-term million. of million of As September we XX, investments cash

associated was of to For for non-cash Stuzo of by cash million would for ended our prior of in million by ended on million by X year. $X.X short-term placement loss, like net months $XXX.X execute addition $XXX.X in $XX.X managing the continuing year. to net was successfully the improvement investing million acquisition XX, completing in Government, the for were was of consideration plan activities smooth operations X prior versus Investing in and the the the included $XX.X million and PAR TASK XX ended $X.X maturity and improvement $X million provided of September activities partially operating of million compared net to and cash from activities a connection in September nine by our with our capital the for sales versus platforms, driven Government. of costs cash offset integration with divestiture $X.X recent XX September team with investments. Cash $XX million activities million a technology used for prior to fund private driven health was used reiterate months for of year. the software a $XX.X moment and The use PAR to expenditures to a cash connection common from substantially of activities credit stock thank $XXX.X of TASK continuing the the acquisitions million months Retail Financing received proceeds net disposition facility acquisition. I operating fund in PAR adjustments. Cash developed both million while to consideration of PAR entered into take our financing

QX adjusted ARR this metrics to total But quarter, modest expenses day finish to non-GAAP As in XX% positive with driven line. growth $X.X culminating of growth, improvement and in ARR operating a we have and is key organic million. organic EBITDA seventh be a significant for not consecutive sure, financial X result, growth in XX% flat a

to closing excited continue that in are us deliver for back drive our turn about will call the to Q&A. Savneet to We to now over stakeholders. I all opportunity for front of prior outcomes the to remarks value like

Bryan. Thanks,

uniquely best-in-class sector software key food to pillars. continue in as operational positioned service PAR technology and the We with see engagement across

while a to a that the products integration words, market enterprise across but part standalone the of Our enabling consolidating are the and a capable growth driving better experiences are in product one for of higher space the basis, keeps continue for continued on together dependent itself infrastructure products we on integrations. Put third-party while shown desire only us robust consolidation. ahead to competitors growing uniquely We has guarantee M&A and of believe and equation see control our activity other ripe into profitability. our is vendor environment PAR separately single ability together winning better in

and past embracing customers the are of delivering sharing shareholder vision value. that at to said balancing growth about as deliver are dedication track your work XX. Thank strategy and on the to Across and all organization, Chris? an I impressive outcomes hard Investor both day our effort our at need a forward the people continue We have while for record, employees look for to build up we platform company our long-term to the ensure to our We investing better necessary longer-term demand we're and Day X. And over together smartly November earlier, profitability. more delivering our capable stepped you PAR still quarter.

Q&A? remarks we morning. Carmen, that open call now our formal concludes this Can the to

Needham. our it's for the question. first moment One of line Mayank And from Tandon with

just the Congrats quarter. focus deal wanted the Savneet, on activity. to large on I

deals. believe you'd RFP there called I out I X when activity, were record think large into we came and XXXX,

you've land still I count the if conceivable that's wanted organic that accelerate able to pipeline? something the think mid-XXs. Is that? were on that get I'm you could you the I status ones. larger X, could growth? What's on I it, update you to correctly. you potentially sort status a help these ARR you a other just few of to the more? know if if of opportunities were win some logged said X And keeping in do think or Do

I good shot we closing have a of the more year. end think of the before

rollout these But think even if accelerating to say. deals. far it's certainly the deals. hurt sequence our signing depends and us. they would rollout. without But the hard a of growth, plan these needing come, mega certainly built As accelerate on hard I to as is our of it's a It they It won't timing so,

M&A. the to over switch I'll Maybe Understood.

to the give get little surprised prepared data So good on any on a more accounts I helpful Could negatively? positively remarks terms cross-sale be new the points know been to us said in in maybe ability TASK bit of color of you would progress hear what and good. any that it has and additional of into even acquisitions and your you logos. sort Stuzo helpful. be what's it's early, but your you beyond win would color these to And

Sure.

a On fantastic receptivity really the side, market formerly seen the We've for involvement. PAR's PAR experience. been end it's Retail great Stuzo, by

I time, to think we that market. the some been I can most And importantly, delivery And the at into think able excited area. go-to-market we're push fantastic. same heft product the about add we've really to been sso it's

I a crazy just it's think been excited. I'm hit. we're And culturally, -- tremendous

come And that today, not tooling service stores made you they convenience across there's businesses of provide. growing it's become As acquisition, really service more industry. to to a in our idea if next we need a businesses consensus become this And compete are like a was the not them quarter. we their The continue And we large double look C-stores we thing. was food signed still digits to food in restaurants, the with it's And for contrarian. we narrative, customer mentioned, becoming think bit it importantly, a when lot

the restaurants. leverage vertical And it's so in as this what we great in can that we same did because playbook in in have Obviously, we've done restaurants market. think I we'll

to feel excited. we us And think really be. I good, nice it's a really place long-term for

It's seen but looking quickly very giving we're I'm On think States do few us so We're as And at but in like special. about, we international doing when what we're important really And today. talked never I that. all more United hotels, but customers we've those sporting one more them that shoulder these of is Jobs just are adjacent stadiums, the go And certainly before wildly verticals. we've saying in into of the demo. side, TASK platform not call it, strong aren't had our enterprise that as early. interest, not restaurants, We than is months into importantly, it a us than we arm markets to but you internationally dropping, is of then the we've think, growing are going products big Group the gives what vision casinos. that, I version almost domestically.

we're So as excited for well. that really

again. Congrats That's helpful.

One moment Samad Jefferies. Samana from for our line next question. the That is of with

as the there with, of that observed Savneet, gone on that capable have Burger now well? you that implementing I asking Maybe anything product that's is they're you're out inform rolling maybe what Wendy's, or you're as what you do large additional and adopting you've of? we'll King the could you customers? that how at customers And does about they're for particularly products, know something learned Is targeting start maybe first that think or seen maybe it better rollout you organization but larger different and the from these

great That's Samad. a question,

rollout and So at it major enterprise think, learning is an scale on Wendy's that's side, doing Punchh. our of the out. And getting these I

that As we that And perspective, do it can enterprises. operate these it shown rollout ever. think it's we large can't think business so honestly, And that from large fastest again? mentioned, why our confidence we us I a was what is gave in I just

them giving creative decade making last we've these cookie it's lot brands the how and had about our more a deals for Tier or so. us so we process structure cutter the large X with not And

certainly of thinking us operate, we enterprise we deals. So about it's how structure kind I future changed given how in think but it's confidence not

side with POS the On King, we're Burger early. still relatively

what I we're our I is more my this the once. I we going that said wanted doing is in "just is, in these and in there that all think over don't And end POS hey, more think, fully convinced to we'll at our so I major think not why game." numbers large POS us back see I office exciting XYZ but I and POS think I and saying, know rollouts do takeaway experience upgrade after to time the have has

some And of it, the with conversations Brink and not Data you'd created Central also a huge the them, saying the things such as comments one, of together. is combination healthy kind tons that's brands let's but about in of are sort my coordination major learnings think it so think us, of I of with really it's us future but rollout, I takeaway let's and do those sequence there. had script There's I And around are obviously to all expect learn. the logistics

I you've the M&A. to it's too good positive there Day that but couple get philosophically? the only through you've don't you're just also some the talking or side robust to in how to you obviously weeks since run of gas pipeline, be But hiring and much, for I a a any Analyst the about think about suspect that want demonstrated curious hitting profitable? on investment very EBITDA front demand, can market you'll strategic Is you maybe that shown I'm on thought the go business, core in ability views of And there. these

opportunities I continue Yes, there. we're wouldn't is the to didn't have to going get opportunity invest, invest we because there. think to so We

obviously mentioned, R&D and forever. brought continue down can't example, expense as I again an As we that

as deliver continue on certainly this revenue need invest we to we'll growth. so And

candidly of is not As continuing you'll and opportunity I growing few are the large very at see stop observed, opportunity tremendously. cash you'll that feel accelerate and you'll us in and the X companies this do to there's our very very, size we're spigot there, really software mid-XXs so that day we see us flow and still invest when of see

trying in that So need this team, profitability. off our we quarter could the isn't trade-off, we really important and now you for budgeting middle a to we both. our mandate to delivering in trade nice need XXs we is we EBITDA. and still we're grow while the need was show we of the And are This balance think growth right

but want want ourselves for invest be and so to deliver we number. suggested penny there's a an run. said, get pound there to very to as we there, to need because And push pipeline long lot build we've the wise, will optical to something continue we and don't certainly foolish We of that's just you

comes Our the from Nance Will with line Sachs. of next question Goldman

Savneet, think to questions, results about on your one you Data of deals its And the sounded I thought and wanted mentioned response I sell I today. more prior some Nice the a to to follow-up of more had experience. of upbeat. earlier it in Central. you commentary on fairly aggressive trying being attach POS unified

What driving has I strategy over wondering perspective just Data to go-to more are how that the Central prepared you the or in on year so think you And in seen down kind in What's market the these -- doubling guys of remarks. how of from the changed? mentioned led to so? success are the have kind attractive you And mind you've deals? next that

Yes, that through well. and you read definitely

to of are Cutting driving is unlock. within the things. system. what's Data question confidence reporting in it's X from able lot One Central big go your we're X to being really having systems it, we advantage. excited to huge what system really seeing our platform to not data, Brink them one a next product. the gives validate the customers provides It Data Central. To Brink at one reporting a of is So a access

versus And out. able powerful. And is excuse X to platform to marketing X, of connectivity is I me us that then and that allowed sales prove as going it market by of to part think as then the second the X that one really team. consolidate we -- were into

part we other of having the showing say, have customer it, of beauty is demonstratable products both once. The at success I'd now

sale, we're it think proving focused record customers, resonated we've ourselves, say, deliver it -- but that you to absolutely the we'll that been into proven it's track excited know and I that. have and excuse here's in how we've be that of better really potential add been Central and best in our to why me, makes hey, is reason if and how able to sense. customers, many our together it Data And proven many with I on customers okay, solution, go we've the think pipeline, so said, And I you're remarkable we've point of deals our class will encouraged and quite

that. quarter. growth, ARR appreciate the I hear. question, this organic of a to super then great or just expectation-setting like of more impressive so maybe That's kind modeling And XX%

we the As folding I still sort the acceleration thinking deal an little of of be that think low know slower. large recent referenced a question? about activity some right Is base, looking next couple quarters, about of the earlier you absent are out XXs acquisitions over sort to in of in into range those the and growing

think of is starting plan what's and accelerate we've been And then goal in few exciting when first I the we of get a last business, grow sort for years, the have to pipeline to have a there. And business, deal I deals. with done, think is we create we to said every able want greater sort we XX%. -- buy Yes, our we than that

the soon happening side beginning I we'll the on just that side. see Retail PAR on we're TASK and so it see it And we'll already playbook.

really strong. So like still I out, hope is hopeful. market so the not seeing that's push these very our said, and we're deals We're

William comes Blair. the of from question next Stephen Sheldon line Our with

here. Really nice work

given hear stores? another been about nice it just you and secular runway growth Tier put to towards the X sales And the with could make more even win about sense you've there. to pipeline opportunity tailwinds that resources Really some can the of talk, First, some seeing? convenience

place the short market in planning our for team I that go-to team we year answer has market The have. there. is next go-to have. the It's grow actually we're to only We think

like agree are stores it's in restaurants. did completely we America of I the we that think it's and little confused stores stretch and funny greatest deal, and now is is convenience so So a opportunity convenience adding. And the consensus greatest bit are said, when restaurants I people this for

a bit And be supplier. of colliding formats and get little so are to these an there's this arms we

happen? your expectations to can reached free when and EBITDA, And reach sense that positive on you then you cash about on positive think could -- flow you've now just any adjusted rough talk that

Yes, we It may scientific. telling be absolutely. been lag. is What perfectly we've expect a roughly quarter not people

see cash the expense. you were would this be operating main As and positive, the we interest flow just quarter, delta

a know, TASK a -- fund lag so and acquisition, out the quarter-ish CapEx there'll lots took traditional, you but And it, roughly the X. don't note be we of we have to I think as between so, call

And moment Street from of Lake Martinuzzi for it's Markets. question. our One line Eric the Capital next with

were current good But affairs. state funnel? seeing the then is the up as pulled you that pipeline, any a perspective, top the and the says organic the change Yes. The gone change on I wondering that business of any funnel macro maybe as there well far RFPs ARR was back, from all of in are or

pretty we good. No, We haven't. still feel

that's Data really So we haven't last Central side said, really Brink. Like only seen much demand. and combination as change see I positive from change the as the our relatively the the at -- is on we of all far quarter

it's not the it's is is attachment customers Brink exploding, back to gotten what's So excited. like office that

excess XX%. years? a a you'd the rate what's X, expectation And there? in down growth there rate engagement the then that that talked next taking just is over you But another in be between Or anticipating of the and difference Okay. segments, between the growth layer operator about X

continue. or think Operator you've historically, last kind the of tremendous seen I XX I -- mean, historically not months, the Cloud. That in growth Absolutely. will

of roughly sites Cloud front and TAM. in Engagement I in a it. function so think Cloud the it's less both Operator X/X of there's market is of a of

growth out the so you'll that more business. side of of see And

is other think sell back and to generally, it I versus come. office the hopefully earlier payments more we've to TAM. part can But we you think in on products upsell suite I its it's more little in got a that of just bit

line Our next question Sutton Craig-Hallum. of George from is with the

TASK service under belt the those just seeing faster an mentioned really your we if had that us know restaurant U.S. with an growing can I'm driving into you for a give bit. brands update you kind are little and brands all opportunity U.S. the Savneet, are obviously, What now curious of quick TASK internationally. you system?

there. We of a to just couple inbound led of if transaction closing early. And the funny, started of really the the will. over us to partnership people connectivity, this potential about you it's announcement We're

I customers, looking our brands can what is that other a say solution think U.S. not I are big for internationally. just XXX% validated customers our and

that can forward. going approved got we've on Now that we deliver

you that the opportunities you're obviously, on curious on up capability? thing can are concurrently? as other talking other with scaling one that And convinced really is implementation like opportunities down brand in that you I'm just other the talk about about -- U.S., your large can and you rolling out, conversations take you scaling brands large with

potentially I for did certain, feel it I roll I to think job we hopefully keep have, more what King our right really up, it We pipeline good take think can Burger continued that's the you could. because can the -- time down take out we're think over expense. we we we a going that down like cadence. now. just and for Ramping are likely have that and to because given But to we're this -- I going And is know

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

Congrats quarter. on the

quick one margin on Slide subscription a the based on Just gross disclosure on XX.

Now in look X digit this been think it's bips range, sequentially past quarter. increasing if back I few I mid-single quarters, the the over

drivers, trajectory slightly if you and are margin? if products the expect continue. And Menu Brink could accretive accretive, us believe curious I us just Payments line, that past remind those be specific But in Punchh Just are that that'd could of you that you is that remind if in what said to to below. helpful. is you've

Sure.

be is has right in that. now in to Payments has Central So everything very you think even getting gotten in over Data line is, to accretive, and or line Essentially happening the a said moment Brink I line. PAR but time getting it's below correct. more, Punchh now and potential it is close at what's Ordering is are is accretive,

fastest -- margin. we're And lower gross right and is growing Ordering the are PAR of so balancing the part lower at now, Payments that business what

but as margin. having in that obviously you're impact And larger hurts are the see on the acquisitions, so gross we our seeing products we'll margin, of the balance So fold that more efficiencies come that. out and

accretive side. been operating of All year income the had wildly to acquisitions our this

impact get gross see As of margin their sort on more the you'll side. disclosures we out there,

it's time, you're a So products little different move in of bit will different growth at over way sort Quarter-to-quarter, at general, number rates hard that I different because think its up. times.

And the there's you average product, the would potential on of market. if one I a competitor could see from starting if taking Stuzo, indicate which bit had from of that your be follow-up that I was It when you higher If had for existing was that out but that it acquisition recall, you're on Stuzo indicated ARPU was with to I ARPU? that early, benefit topic. might that, uplift the than -- wondering of acquired loyalty their some

Yes.

is obviously not best early. then But I then say, a with so of I benefit Commerce. too not to which upsell coming much the the believe customers Stuzo competitor solution, road. what would taking it's the product to So Open yet, market Punchh time the and converting over out, but called platform, we the think down is is And more

higher customers more this a then the can products price time. we you'll over and more over see convert to of So them we nice Open the hopefully Commerce Punchh platform at and think coming C-store trend

next Our Instructions] Adam question from with is [Operator Capital. ADW Wyden

a Congrats of quarter and milestone the reaching $X.X of million great EBITDA. on

you're with today years different about lot sales talking it's to of go entirely I it X And how ago. business just going hardware an and now think XXXX I was Chris than Byrnes sitting in remember in lose money. down, a my office

not sort story I stuff, think building not over it's of of as that profitability. XX% that to this you so software And quarters and letting it's sort of about the few said the margin about XX% hardware, it's about last gross tell

great of to Burger it -- at King. Burger give of on you I'm lot. It of you. really ramping said is like know other One Can making inroads an and rollout the stuff, looking questions. like sort and the started sort a had doesn't King a us just up that. I transcript terms on in doesn't the strong feel where of networks brands? they relationship then So on like see I the the couple really at, is expert and all of update really you from least Burger it's the King has sort --

So where brands is sort be of well? expand how maybe evolving it potential sort is for and as that other sort the that of that clear rollout could of extent relationship to on the

Sure.

give to not So a strong. say. can ton limited so we're in well, what the you say around. there's business is would -- can really and we really relationship I specifics It's vendor a a I we're

a level. to both close a very on business are We and team the personal

we understand think other I each well. like feel we

real opportunity We have we without partnership I a I have other say just like not is so, lot the long way and that. things the excitement But to think with can't but coming of this here down Brink, products road. go with with That's them. and great, sort approvals out a of a

that other that and products engaged should There's, the I incredibly all experiences with those already. of other is we've them. great as respect And helpful. I for brands, actively far with mention As think delivered what other we're brands have

had brands looking other King, forward Burger the help not products And to well. think leveraging I just that at with but us are, as so those we we've experience within

reputation got within good there. we've think a I So

perspective hopefully I their a think now have got we've delivers. PAR is

us so to see no eventually not for reason more. do And I

some have because is of the it I deadline. fair to terms And looking Burger assume they just your King. at some I'm that the [ ton rollout your out mandate without is way XX the is -- ] know XX% in I of internally of make like roll of the -- growth a mean, a it mean, like to Brink, I franchisees before

Burger ]. King is you fair So assumption? the expect way would more probably at Is a in 'XX I'm of that sort [ looking

[ got have than I We have will in more definitely greater lot is ] 'XX expectation room. in we'll XX% say ]. a 'XX -- I and don't [ have a My -- to the definitely. we want lawyer in

Right.

not mean, that you've sort growth us my -- just announcements a King, is of of nicely. some industrial, modules, about on and sustaining I TASK, we sustain call they to in you you've no your platform of able obviously you that about not that you're hoping private But of company you How That's types think what of which means X done Tier do. do seeing modules? with it's of it an this they've but bolt is, sort spoke into you've what I optimistic being it But I I months on talked large pretty you're about doing single could to TASK sort it public on able M&A. how And X XX% are And it's done what could guess, through Yes. want you that a couple do gone had, of of well. but to Because mean, of I you It's sort of products, and -- lot these M&A, obviously, yesterday would are of would at stranded AI more have sort to to it's cost businesses have we Okay. read me distribution Xs. like -- that mean, in in sort our I company. of sort mean, we and up it's we're bolt-ons mean, different. of you're TASK digits perspective, have a ton do products, think from like they mean, Stuzo and just sort it platforms. least is Burger your trading makes more the the you of we little of all of markets I nice picking X and functionality? then, really sort rate. about year other about now talk add bit ability be do to a I Are probably ARR, companies terms Stuzo, mean, what add to obviously, if to more capital pay don't think it's a growth call at international relative that's or know the and platform. I but you next have of obviously, whatnot. big the plug that distribution. don't to cross-sell. product I that a the dependent

and that these you of equity I of private of sort with competition about now how front curious point you market of some leverage slow, think don't to valuations buy and still like I'm I'm that mean, assets. like at really of the like ton sort So is IPO do have to of a sort possible and deals these house? some curious, or to do just returning growth? market

tuck on is ins, So platform. the M&A ons focus the is modules, than more it the bolt the definitely a on

we've So we got to think no cost. now distribution the we've with one, are really when it proven to because limited that focused can on ourselves that I we through pipeline push

definitely focus would businesses the So stranded. being agree and that is I on completely comment with your

the okay, queue, others got we Adam, last one. in

having No, be I and job have Tier letting a you're them we and know if -- have. just else mean, your historically time press had value, has Hooters that to appreciate you. I you I'm allow you just is you he's best you it all he's release and Kaplan, our everybody and I the it, say let look, the look, hard on on we X the X. company to engine press the playing customers mean, customers your good. And be Tier It's [ also get extent to that missionarying what for only the customers, call, mean, you you penetrating no an your but have a ] happy them I give these this No, phenomenal your is speak A, letting thesis Jeff great can out that look, customers that there's publicly, a guys -- no of to I doing PAR. say one just that releases, that customers your that really advocates wanted the that I that with announce you advocate But I would original behalf, to will can think for get like, to almost extent the to extent perfectly. sales know I sense done help mean, can giving

no you competitive X competition. And a so with X as asset we on see guys

behalf press cause. I that think you But this accelerate and that on think customers, release is the would and great congratulations. other no, I and people can on put your so And to these others let the see your can out speak help extent that

Instructions] question. Sidoti. with One Anja [Operator Soderstrom comes the next moment line of from for our It

my see you if Congratulations already, on little here. the questions about can addressed M&A performance there? Most bit have a been any speak and of changes the just nice but environment you

and on fully can our bit is it's I the our about, one modules little the we which through I think integrated environment that on, of focus tuck push products. From we on our M&A these It sale yet seen once seems perspective, medium historically. that more of environment what have ins, that's into I is just platform robust. transactions bolt sized talked think there's a larger think is smaller the for we some transactions it's come happened, through companies next. lot like haven't are than but a Definitely very and there

comes And the of our please, Palmer Mark Company. from last moment question, Benchmark one line with The

question in regard with about to of Yes. international there. new landing Very any and in PAR there's of in customers nice terms TASK foresee, job of TASK TASK was customers internationally, especially enable other that their you're ones that in that to the the are the acquisition more benefits accompany is My for The especially, the that beyond because thinking able there U.S. growth forays? you But the potential would platform. quarter. existing it its follow Group initial to

Certainly.

conversation we bring and markets are relationship in prior to brand never thinks talked think TASK I I very with that of time. who -- that we a hopefully to forward very week U.S. special stuff, but to unique, we had product international we've a the anecdotal as hate robust can this over

relationships is things we well. also as delivered we're I that stadiums we'll a it's So and a like markets Group that have TASK to. the as look don't And earlier, in, absolutely, in stuff at think, not customers that for I mentioned little bit take delivered

Christopher our comments. for turn session the Byrnes will closing call for I today. And Q&A this concludes back to

our we Carmen, Day upcoming on you, to seeing the Investor everyone XX in for New at this look joining to thank morning. November the weeks. In at Exchange. coming Stock Thank you and closing, you everyone York further us forward to forward look We updating

Investor in-person, of intending is limited attend please at for webcasting will kick X:XX and day, We be everybody. also those register off great weekend, Have an email a the presentation our accessible to on space ir@partech.com. website. our we page As with via at that link p.m.

And conference, you you all in disconnect. thank and today's participating for now may