PAR Technology Corporation Reports Strong Q4 and Year-End 2024 Financial Results

PAR Technology Corporation Reports Strong Q4 and Year-End 2024 Financial Results

PAR Technology Corporation (NYSE:PAR) recently released its Q4 and year-end financial results for 2024, showcasing substantial growth across various segments. The company highlighted significant increases in revenue, particularly driven by subscription services, alongside strategic moves in acquisitions and partnerships. Key executives, including CEO Savneet Singh and CFO Bryan Menar, discussed the results during a conference call. Here’s a breakdown of the key highlights:

Financial Performance

PAR Technology reported consolidated revenue of $105 million for Q4 2024, a remarkable increase of over 50% year-over-year. This substantial growth was primarily fueled by the subscription services segment, with Annual Recurring Revenue (ARR) more than doubling to $276 million. Organic growth within subscription services reached 21% compared to the same period in 2023.

Further demonstrating the company’s financial health, non-capitalized profit saw an organic increase of 30% year-over-year. Adjusted EBITDA came in at $5.8 million, more than double the previous quarter’s figure, which continues to demonstrate the potential for long-term margin expansion. The company also reported a non-GAAP net loss of effectively $0.00 per share, a significant improvement from a loss of $0.43 per share in the prior year.

Segment Highlights

Operator Cloud

Operator Cloud ARR experienced an organic rise of 26% in Q4, reaching approximately $117 million, including Delegate. This growth was fueled by new customer acquisitions, upselling, and the rollout of services with current customers. Notably, PAR POS signed eight new customer logos in the fourth quarter.

PAR is especially optimistic about its ongoing partnership with Burger King, which now encompasses PAR Ops, in addition to POS. The focus in Q1 is fine-tuning the rollout sequence to optimize results. This is very exciting for the company, as it demonstrates their ‘better together’ approach working with one of the largest POS customers.

Delegate Acquisition and PAR Ops

At the end of the quarter, PAR announced the acquisition of Delegate. This acquisition, coupled with the integration of Data Central product modules, resulted in the rebrand of its back-office initiative into the new PAR Ops suite. The integration of Delegate has exceeded expectations, attracting strong customer interest, including those from top-tier accounts. Delegate’s product offerings will not only enhance the customer cross-sell opportunity but also facilitate entry into over 25,000 sites across 40 of the top 50 restaurant concepts.

Payments Business

PAR’s payment services continued to show strength, driving high transaction counts and processing volumes across its customer base. Notably, Punch Wallet adoption continued with Paris Baguette, Gold Star Chili, and Runza all onboarding during Q4. They also successfully cross-sold their payment services to a major tier-one customer.

PAR Technology Corporation is uniquely positioned to leverage tokenized information to drive actionable insights, thanks to combining data streams across its loyalty program, ordering systems, and POS products.

Engagement Cloud

Engagement Cloud ARR also showed robust performance, with organic growth of 15% in Q4, reaching approximately $159 million. This segment includes Plexure and PAR Retail. Strong execution in this segment has secured several new tier-one customer wins, solidifying its dominance in the loyalty offers and engagement market. Several major customer wins have been achieved, along with client retention in 2025, with many companies increasing their digital investments towards increased consumer frequency and retention.

PAR Retail

In the convenience and fuel industry, the team launched a major multi-thousand unit brand and several upsells in Q4. They brought to market the first fully integrated major oil and branded retailer program in the industry. Furthermore, during Q4, they successfully launched gamification, updated unified e-receipts, enhanced punch card functionality, and optimized member surveys.

Hardware

After recent trends, hardware revenues increased by 7% in Q4 year-over-year. PAR Wave has been approved by several key global brands, and sees strong increases in both domestic and global sales. The PAR Clear drive-through solution, is setting the standard for drive-through comps. It’s positioned to be the industry leader in QSR drive-through systems today and the preferred platform for the future.

2025 Outlook

Looking ahead to the year, the company anticipates continued growth. PAR Technology is confident in its ability to consistently innovate and provide value to its customers. They are targeting a 20% plus annual growth rate for 2025. The first quarter is expected to be slower due to transition efforts, with acceleration happening during the second half of the year, based on current forecasts and initiatives.

Key Messages from Leadership

During the earnings call, CEO Savneet Singh and CFO Bryan Menar emphasized the company’s commitment to sustainable and efficient growth for the long term. Key initiatives include:

• Driving organic ARR growth and building on momentum in the software business.
• Maintaining a targeted acquisition strategy to fortify product offerings and broaden its total addressable market (TAM).
• Managing operating expenditures to optimize cost structure and maintain revenue expansion.

They also highlighted their belief that they will deliver durable growth in the enterprise, with persistent execution, strategic investment in their products and teams for the long term.

Q&A Session Highlights

During the Q&A session, the executives addressed questions about:

• Burger King Rollout: The partnership expansion with Burger King will likely shift the rollout timeline but offers significantly higher LTV.
• Hardware performance: Strong attachments and new product releases are driving hardware growth.
• Market Trends: While the full-service dining space is slowing down, the QSR/fast-casual segments are holding steady, and the single store market is experiencing greater disruption.
• M&A: The company continues to seek strategic acquisitions to strengthen its product offerings, expand TAM, and build out product capability. The focus is on adding products that will create greater organic growth.