The following is a summary of the PAR Technology Corporation (PAR) Q1 2024 Earnings Call Transcript:
Financial Performance:
PAR reported Q1 total revenues of $105.5 million, a 5% increase YoY.
Subscription service revenue was $38.4 million, up 37.2% YoY, however hardware revenue declined 31.9% YoY.
The company reported a net loss of $18.3 million, resulting in a loss per share of $0.62.
Gross margin for subscription services remained stable at 66%, while hardware margin improved to 22.3% from 16.4% in Q1 2023.
Cash used in operating activities increased to $23.6 million due to a net loss from operations and increased working capital requirements.
Significant investment activities were noted, primarily driven by the acquisition of Stuzo.
Business Progress:
A solid start to 2024 with 25% growth in ARR.
The company's subscription services is expected to turn EBITDA positive in Q3 2024.
The acquisition of Stuzo contributed significantly to increase ARR.
The company expects significant ROI from the rollouts with Burger King and Wendy's.
Strategic focus on expanding PAR Pay into new verticals using Stuzo and TASK, aiming to drive higher margins.
Operational changes intended to achieve positive EBITDA by Q3 2024.
The acquisition of Stuzo is seen as a strategic milestone, expected to bolster product offerings.
The company expects gross margins to grow, particularly from their MENU service, eyeing a potential increase of 70% or more in incremental gross margin on growing revenues.
A positive outlook is maintained, with expected profitability next quarter and progress towards free cash flow profitability in the offing.
More details: PAR Technology IR
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