PAR Technology Corporation (NYSE:PAR) Q2 2023 Earnings Call Transcript

Steady state super scale payments margins should get close to what our SaaS margins are. But what is unique about our payments business is that it is not just processing. We have a gateway product we have got a reporting product, we have got a fraud product. We have got a fraud product. There is a number of product innovation that is happening in there that all of which will expand those gross margins. So I don’t expect gross margin, sorry, payments to forever be a drag on gross margins as is today because it is scaling. And I think there is many ways we are excited of the products we can build on top of payments because, one of the things I feel passionate about is, anybody can sell cheap payments, like literally anybody. What the value brings to the customer around the payments is really what is going to make them sticky.

And I think we are seeing how valuable that is today.

Andrew Harte: And then, something you have talked about in the past of kind of this year, Operator Solutions and backed office offsetting some headwinds and guest engagement. But guest engagement, at least on the activation side, like seems like a really strong quarter and kind of ahead of our expectations. Do you still feel that is kind of the dynamic for the back half of the year where back office and Operator Solutions carry a lot of the weight or is guest engagement holding in better than where we were thinking about a quarter ago?

Savneet Singh: I think, we expect it to keep saying it will get better and it keeps getting better every quarter. And so I think it is a grind up. Purely from like just the sizing, right. You can’t take a business that is 61 million of revenue and flip it in a quarter back to 30, but it is climbing that it is climbing. We are climbing up now. And listen, Operator Solutions is just got great momentum. We will continue to have great momentum and so it will be the driver you can see how fast it is growing almost 40%. And we don’t expect that to really slow down much. And so, I think one on size, but two, just the existing pipeline is there.

Operator: At this time I’m showing no further questions. I would like to turn the conference back to Savneet Singh for closing remarks?

Savneet Singh: Thanks everyone for joining us. We look forward to updating you next quarter.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.