Yahoo Finance

• Total Revenue: $96.8 million, a 41% increase compared to the same period in 2023.

• Subscription Services Revenue: Grew 91% year-over-year.

• Annual Recurring Revenue (ARR): $248.1 million, a 93% increase from last year's Q3.

• Operator Cloud ARR: Grew 41% to $93.4 million compared to the same period last year.

• Engagement Cloud ARR: Increased by nearly 150% year-over-year.

• Hardware Revenue: $22.7 million, a 12% decrease from the prior year.

• Professional Service Revenue: $14.2 million, a 23% increase from the prior year.

• Gross Profit: $43 million, a 71% increase from the prior year.

• Subscription Service Margin: 55.3%, up from 50.6% in Q3 2023.

• Adjusted EBITDA: Positive $2.4 million, compared to a loss of $6.6 million in the same period in 2023.

• Net Loss from Continuing Operations: $20.7 million or 58 loss per share.

• Cash and Cash Equivalents: $105.8 million as of September 30, 2024.

• Warning! GuruFocus has detected 5 Warning Signs with PAR.

Release Date: November 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• PAR Technology Corp (NYSE:PAR) reported its seventh consecutive quarter of over 20% organic growth, demonstrating strong operational efficiency.

• The company achieved positive adjusted EBITDA for the first time since disclosing this metric, marking a significant financial milestone.

• Subscription services continue to be a major growth driver, with a 91% increase in revenue compared to Q3 last year.

• PAR Technology Corp's acquisition strategy, including the acquisition of Task Group, is expected to accelerate growth by unlocking new verticals and enhancing product offerings.

• The company has a robust pipeline of new tier-one deals and high confidence in consistent growth rates, supported by strong customer engagement and product integration.

Negative Points

• PAR Technology Corp reported a net loss from continuing operations of $20.7 million for the third quarter of 2024.

• Hardware revenue decreased by 12% compared to the prior year, indicating challenges in this segment.

• The company faces ongoing integration challenges with recent acquisitions, which could impact short-term operational efficiency.

• Despite positive adjusted EBITDA, the company still reported a non-GAAP net loss of $3.1 million for the quarter.

• There is uncertainty regarding the timing and rollout of large deals, which could affect the acceleration of organic growth.

Q & A Highlights

Q: Can you provide an update on the status of large deal activity and its potential impact on organic growth? A: Savneet Singh, CEO, stated that there is a good chance of closing more large deals before the end of the year. While these deals could accelerate growth, the timing of signing and rollout is uncertain. The current growth plan does not rely on these mega deals, but they would certainly be beneficial if they materialize.