Adam Wyden: Got it. Yes. No, I mean, look, when you look at the sales and marketing at 15% at scale and you look at gross margin, I mean, this thing can clearly be a 40% EBITDA margin business at scale. And so if there’s revenue growth in 30%, 40% EBITDA margins and your rule of 40. Let me ask you something about the cross-sell. Your competitor or he who will not be named has had a very hard time sort of cross-selling you’re starting to see cross-sell. I mean if I sort of add up all the products, bring at 3,000 payments at a couple of thousand PAR Pay, maybe another 1,000 data centre of 1,500, menu at 2,000 punch in 2,000, you’re well into the double-digit thousands. I mean, where do you think you are in terms of really getting everything under one house and really getting — I mean, I know you’re sort of — a lot of the call has been talking about, but the unified commerce is creating the stickiness and we’re seeing it with your competitors losing customers.
But I mean, when do you expect to sort of get that $2 million AUV restaurant, basically paying $10,000, $12,000 for everything. I mean, is that something that could be a possibility? I mean, could we have a large chain really taking every single one of our products at MAX in 2024?
Savneet Singh: Yeah, listen, I would say absolutely. I mean I think if you just look at the numbers, right, and the growth in ARPU, that’s pricing, but it’s also the upsell of more products. If you look at our last couple of big deals here, one of which we announced, others that are coming — none of the are single product deals. And I would tell you, Adam, we’re seeing this cross-sell and upsell motion happen without us doing the best job of it. I would say it’s the area we need the most improvement on internally, but it’s just happening naturally. And when I wrapped up, I was saying that it’s the right time in this market. And that’s kind of what I’m referring to, which is we’re stumbling into doing a good job on cross-sell and upsell.
Just imagine when we get great at it and we will. So I think your guess is like, of course, we will get there. And I think you’re going to see it pretty quickly, I think you’re going to see us be very good at stapling Brink Payment Data Central out the box. And I think Punchinany are slammed on combo. As I mentioned on the call, almost all of our menu signings have had payments and punch. And so if you think of that the front of house and sort of the operator side, like we will get there. So I think getting up to that on a large brand is very possible. And particularly, we do a good job on this first one.
Adam Wyden: Yeah. And I think you mentioned that earlier on the call that, obviously, something you said this earlier in the call, but RBI is a large chain, but I mean I think the intent is that, if we execute well on Burger King that you would expect to move horizontally into the other brands and perhaps sell punch in the rest of menu and the rest — I mean, there is — obviously, everything is competitive and the deal goes the best guy, but I mean, I think it’s your expectation that if you deliver that the relationship should grow meaningfully. Is that right?
Savneet Singh: That’s right. I mean, I want to expand a time on that, which is — it’s going to expand in two ways. It’s going to expand and that we — I think we’ve been great partners to RBI. I think they’ve been incredible partners to us. We want to grow the relationship across the logos they have. We think we’re a great fit. We are both culturally, but from a product perspective. That will be great expansion. But I also think from a product perspective, we will be pushing data center and Punchh and so on and so forth, provided we’re adding value aligned to the road maps. And so, it’s just an incredibly large opportunity that we will get to. And I think it’s a really huge sign that they chose not Brink the Brinking MENU, understanding that they now have a sort of transaction product and an off-premise product from us is highlighting that
Adam Wyden: My third question is about M&A. My question is, we saw — we’ve seen the public companies sort of materially sort of, I would say, the single product companies have materially lost their valuation multiple, largely because of stickiness around customers. And I think in the past, you’ve sort of said the private equity firms and everyone have sort of been hanging on to sort of 2020 and 2021 valuations. You haven’t really done an M&A deal in 2.5 years. You’ve done a lot, but many was sort of an aqua hire and it wasn’t Burger King. I mean, what do you think the probability is that you land sort of a $100 million ARR business? Because my sense is that if you were able to sort of cross the transom and make this a $300 million or $400 million ARR business at a 40% margin that — I mean, we’re not going to be trading at 3.5 times ARR. We’re trading at 10 or 12 like Agilysys. I mean, this company is massively on the value.
Savneet Singh: I think there is the there’s possibility to buy $100 million ARR absolutely exists. I don’t know if it’s in one ticket or three, but I think that’s there. And I would tell you, it’s my number one priority as CEO, my KPI is to get that done is on the M&A front. And so we think it’s really the right time. And again, I can’t stress you enough, the fact that we got menu right on here, and obviously, we got punch really right, has just embolden us to say, we got to do this twice as fast.
Adam Wyden: What are companies thinking that are doing $200 million of ARR trading at 1.5 times revenue? What’s their exit strategy? I mean my question is, what do these companies do is they are losing customers if they’re not selling to you? That’s my question. What is the company doing?
Savneet Singh: I think they all have a opinion. They’ll have some idiosyncratic reason right now. I think a your shareholder of that company, its hard to stay there forever without wanting to drive a return. I think that return is partnering with a firm like Park. So I think I agree with you. I think it makes a ton of sense. And in the end, I think markets are logical and objective and that benefits par.
Adam Wyden: Thank you.
Operator: All right. Thank you. One moment for our next question. Our next question comes from the line of Charles Nabhan of Stephens. Your line is now open.
Charles Nabhan: Hi, good afternoon guys and thank you for taking my question. I wanted to drill in the payments a little bit. Good to see the growth in that area, but I wanted to understand a couple of areas better. Specifically, where and how are you winning? Is it on price or just one throat to choke consolidating vendors? And then secondly, I know it’s in the early stages of scaling and it’s dilutive to margins at this point. But if you could give us some color on how to think about the scaling of that payments business and when it could potentially be accretive to the gross margin?
Savneet Singh: For sure. So why are we winning? We’re winning, I think, first, because of that one-third to choke the simplicity of the product, but it’s so much more than that. It’s the integration of that product into everything that we do, the same dashboard, like it’s just so powerful to have that integrated. And so it’s one choke if you’ve got a problem, but it’s really that integration into the rest of what we do. I get an example of One-Tap loyalty on Apple Pay. I think we’re the only people that can do that where you can pay with Apple Pay and get enrolled in a loyalty program and pay, it’s so powerful to the brand. So that one chokes plus the innovation we can do once you’re integrated across us. And I think that’s why we went in and we continue to win really, really nicely.
