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

Page 9 of 10

It is hard to break these things, but I think you will see us very active. As far as dimensionalizing the sizing of that, we want it – I think we like you believe in the economies of scale here. And as we are able have been able to show that, we are very good at leveraging our OpEx space to continue. To grow I think, scale helps. And so, I think we like larger assets because there we can push them through. They are e established, the product is more developed, I don’t think you will see us acquire science experiments or things that need a ton of R&D projects. I think we will see us buy more mature assets where we think there is tons of synergy for our customers, and then we can integrate them nicely and create a good home for those teams.

So, I think you will see us very active here. It is a core focus of mine, I have definitely shifted a decent portion of my own focus just to get these over the finish line.

Operator: Our next caller is Andrew Harte from BTIG.

Andrew Harte: Obviously it sounds like par pay was a big driver of the Operator Solutions ARPU jump. Is there anything else you would call out there kind of benefiting obviously I think table service will come into the next year. And then I guess bigger picture on par pay, how penetrated is it within the existing base today and what will par pay gross margins look like, once it kind of reaches a more mature level? Thanks.

Savneet Singh: Great question. So, the other big drivers just price. You know, we have taken price Brink nicely and you know, I think, I hate to say we are take price. I think we are getting the value that we deliver to our customers. And you know, I think as you know, a large portion of our initial base of Brink was very, very underpriced. Because it was startup trying to get in business and build the logos. And so that is the other big driver is just pure price. And I think our customers, transparently know exactly what we are charging. So there is not like a, we are trying to sneak one by them, we really want to be open and transparent with them and show them the value we drive. And so, I don’t, we don’t lose on price and we are not the cheap, the cheapest product in the market.

So, I think it is capturing value there. As far as payments, payments is not even 10% penetrated to the Brink base yet, and it is already a meaningful measure of the Operator Solutions revenue. So, I think you will see us, have a lot of white space within the Brink base for payments. I’m rearing up for these renewals that are coming up where, we can show, what we have at par. And you know what is fascinating about it is, we are processing meaningful amounts of volume every single month now. We are well over a billion dollars of annual GPV and as that business scales, it helps the cost structure because as we process more volume, our rates come down more, and it allows us to expand the margin there, which is a good segue into your last question on margins.

Page 9 of 10