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

Adam Wyden: So, set a different way. You have obviously taken gross margins down to basically invest in product, in anticipation of larger customer needs. And these obviously whether it is payments upsell or whether it is winning a Burger King or a Wendy’s? I mean, is it fair to assume that, you keep, you said it will be EBITDA breakeven if we hit the high-end of our revenue range. Is it unfair to assume that we can expect you know, sort of, the company to grow revenues at a faster pace than 2024 and 2025 and sort of this is sort of the short-term pain for sort of accelerated revenue growth in the future.

Savneet Singh: I hope so. I mean, I think, we can’t talk about customers. We haven’t disclosed publicly yet. The math is pretty simple, right. You win one large super Tier 1 and it is equivalent to, like, half our revenues. It is enormous step functions. And so, our goal is we got to continue growing as we are growing. We hope and expect to win those type of customers and those create that step function upward. But without question, on the margin side, we are going to make that whether we win a large deal or not. That is just blocking, tackling, getting it right, making those investments. And in many ways, I wish we made these investments earlier because we have more customers live now and we would have never dealt with credits and things like that. So on the margin side, we are going to do that irregardless of who we win.

Adam Wyden: Okay. Second question is around M&A. On the last call, you basically said PAR for sale every day. Obviously, the company still trades at a pretty big discount to what I would call sort of low churn enterprise front software businesses that are being bought out by private equity or other ones in the public markets. I guess that you are making investments now. But, you are seeing this sort of accelerated ARR growth and you have public company costs and what not. I guess what I would say is a meaningful part of sort of getting that value realized and creating this company a pure play and sort of divesting the government business to sort of get the company in a place where it would be easy for you to sell to a strategic or someone that could sort of get rid of all that sort of public company costs.